Company: IMG
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001641172-25-025514
Chunk: 56

Company: CIMG Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Item 8
Chunk 56
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 Convertible Note and Warrant Purchase Agreement,
and monetary damages in the amount of $1,041,216, plus applicable interest. The Company filed its answer to the Complaint on December
3, 2024. On January 7, 2025, Mr. Kim filed a motion seeking a preliminary injunction against the Company (the “Motion”).
The Company opposed the Motion on January 22, 2025, and on February 13, 2025, the Court denied Mr. Kim’s Motion. Discovery in the
case is ongoing, and no trial date has been set.

The
Company believes it has a basis to defend the claims in the Kim Litigation. The company believes that it is very likely to succeed in
the defense.

Ex-Directors
Lawsuit

On
March 10, 2025, former directors of the Company, Kevin J. Connor, Chris J. Jones, Nobuki Kurita, and David Robson (collectively, the
“Ex-Directors”), filed a complaint against the Company in the Superior Court of California, County of San Diego (Case No.
25CU012922N) (the “Complaint”). The Complaint alleges the Company failed to pay directors’ fees and expenses from the
last quarter of the fiscal year ended September 30, 2023 through the first two quarters of the fiscal year ended September 30, 2024,
and is claiming breach of contract, quantum meruit, unjust enrichment, promissory estoppel, breach of the implied covenant of good faith
and fair dealing, and unfair business practices. The Ex-Directors seek monetary damages in excess of $200,000, with applicable interest,
costs and attorneys’ fees. The Company’s answer to the Complaint was due on April 16, 2025. On April 17, 2025, the Ex-Director’s
filed a request for entry of default. To date, no default has been entered against the Company. As of the date of this annual report,
two parties are still negotiating.

New
Subsidiary

On
March 10, 2025, Zhongyan Shangyue Technology Co., Ltd. (“Zhongyan”), CIMG Inc.’s wholly-owned subsidiary, entered into
a Business Cooperation Intent Agreement (the “Agreement”) with Shanghai Huomao Cultural Development Co., Ltd. (“Huomao”).
Pursuant to the Agreement, the three shareholders of Huom