Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 16

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 16
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 completely preventing the infringement of trademarks,
patents, copyrights, know-how or other intellectual property rights held by third parties. If we are found to have violated the intellectual
property rights of others, we may be subject to liability for our infringement activities or may be prohibited from using such intellectual
property, and we may incur licensing fees or be forced to develop alternatives of our own. In addition, we may incur significant expenses,
and may be forced to divert management’s time and other resources from our business and operations to defend against these third-party
infringement claims, regardless of their merits. Successful infringement or licensing claims made against us may result in significant
monetary liabilities and may materially disrupt our business and operations by restricting or prohibiting our use of the intellectual
property in question.

29

Failure
to comply with applicable transfer pricing and similar regulations could harm our business and financial results.

In
many countries, including the United States, we are subject to transfer pricing and other tax regulations designed to ensure that appropriate
levels of income are reported as earned and are taxed accordingly. Although we believe that we are in substantial compliance with all
applicable regulations and restrictions, we are subject to the risk that governmental authorities could audit our transfer pricing and
related practices and assert that additional taxes are owed. In the event that the audits or assessments are concluded adversely to us,
we may or may not be able to offset or mitigate the consolidated effect of foreign income tax assessments through the use of U.S. foreign
tax credits. Because the laws and regulations governing U.S. foreign tax credits are complex and subject to periodic legislative amendment,
we cannot be sure that we would in fact be able to take advantage of any foreign tax credits in the future.

Risks
Associated With Doing Business in China

Changes
in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and the
profitability of our business.

The
PRC’s economy is in a transition from a planned economy to a market-oriented economy subject to five-year and annual plans adopted
by the government that set national economic development goals. Policies of the PRC government can have significant effects on the economic
conditions within the PRC. The PRC government has confirmed that economic development will follow the model of a market economy. Under
this direction, we believe that the PRC will continue to strengthen its economic and trading relationships with foreign countries and
business development in the PRC will follow market forces. While we believe