Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 28

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 28
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35

You
may face difficulties in protecting your interests and exercising your rights as a stockholder of ours since we conduct part of our operations
in China and part of our officers and directors reside in China.

We
conduct part of our operations in China through Beijing Zhongyan, our subsidiary in China. Part of our current officers and directors
reside outside the United States and part of the assets of those persons are located outside of the United States. Because of this, it
may be difficult for you to conduct due diligence on our company, our executive officers or directors and attend stockholder meetings
if the meetings are held in China. As a result, our public stockholders may have more difficulty in protecting their interests through
actions against our management, directors or major stockholders than would stockholders of a corporation doing business entirely or predominantly
within the United States.

You
may experience difficulties in protecting your rights through the United States courts.

Currently,
part of our operations is conducted in China and part of our assets are located in China. Part our officers are nationals or residents
of the PRC and a substantial portion of their assets are located outside the United States. As a result, it may be difficult for a stockholder
to effect service of process within the United States upon these persons, or to enforce judgments against us which are obtained in United
States courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any
state in the United States.

In
addition, it may be difficult or impossible for you to effect service of process within the United States upon us our directors and officers
in the event that you believe that your rights have been violated under United States securities laws or otherwise. Even if you are successful
in effecting service of process and bringing an action of this kind, the laws of China may render you unable to enforce a judgment against
our assets or the assets of our directors and officers. There is no statutory recognition in the PRC of judgments obtained in the United
States.

Increases
in labor costs in the PRC may adversely affect our business and our profitability.

The
economy of China has been experiencing significant growth, leading to inflation and increased labor costs. China’s overall economy
and the average wage in the PRC are expected to continue to grow. Future increases in China’s inflation and material increases
in the cost of labor may materially and adversely affect our profitability and results of operations.

Our
auditor is headquartered in Singapore and is subject