Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 1209

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1C
Chunk 1209
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 (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 2023 through the first two quarters of the fiscal year ended 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.

ITEM
4. MINE SAFETY DISCLOSURES

None.

49

PART
II

ITEM
5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our
Common Stock is listed on the Nasdaq Capital Market under the symbol “IMG.” As of July 2, 2025, there were approximately 298 holders of record of our Common Stock. The actual number of stockholders is greater than this number of record holders, and
includes stockholders who are beneficial owners, but whose shares are held in street name by brokers and other nominees.

Dividends

We
have not paid dividends on any of our classes of capital stock to date and do not