Company: IMG
Filing Date: 2025-09-24
Form Type: 10-Q
Source: 0001493152-25-014748
Chunk: 63

Company: CIMG Inc.
Filing Date: 2025-09-24
Form: 10-Q
Item: Item 8
Chunk 63
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 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 Huomao intend to transfer an aggregate of 51% of their equity interest in Huomao
to Zhongyan in exchange for 200,000 shares of Common Stock. The Common Stock shall be subject to a six-month lock-up period.

On
April 22, 2025, the Company completed its acquisition of Shanghai Huomao, along with the necessary business registration updates in China.

20

PART
II. OTHER INFORMATION

Item
1. LEGAL PROCEEDINGS

Refer
to “Note 10. Contingencies” and “Note 11. Subsequent Events – Legal Proceedings” in our Condensed Consolidated
Financial Statements included in this Report.

Item
1A. RISK FACTORS

In
addition to the other information set forth in this Form 10-Q, you should carefully consider the risk factors discussed in Part I, Item
1A of our Form 10-K, which could affect our business, financial condition, or operating results. The risks we describe in our periodic
reports are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be
immaterial may also materially adversely affect our business, financial condition, or operating results. For the quarter ended March
31, 2025, the Company is not aware of any specific new and additional risk factors that were not previously disclosed.

Item
2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

As
previously disclosed in the Current Report on Form 8-K filed by the Company with the SEC on August 27, 2025, on August 25, 2025, the
Company, entered into a Securities Purchase Agreement with certain non U.S. investors providing for the private placement of
220,000,000 shares of Common Stock in reliance on the registration exemptions of Regulation S for an aggregate consideration of
$55,000,000 worth of bitcoin, at a purchase price of $0.25 per share. The closing