Company: IMG
Filing Date: 2025-07-30
Form Type: 10-K/A
Source: 0001641172-25-021542
Chunk: 133

Company: CIMG Inc.
Filing Date: 2025-07-30
Form: 10-K/A
Chunk 133
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, 2024, without a finding or admission of wrongdoing, the Company entered into a settlement agreement with Ms. Curtin. In exchange for
mutual general releases and a dismissal of the lawsuit with prejudice, the Company paid Ms. Curtin $125,000. On January 22, 2025, the
case was dismissed in its entirety.

Kim Litigation

On October 3, 2024, Mr. Sooncha Kim filed a complaint
against the Company in the Southern District of New York, (Case No. 1:24-cv-7485) (the “Complaint”). The Complaint alleges
that the Company breached a Convertible Note and Warrant Purchase Agreement, dated June 6, 2024, between the Company and Mr. Kim, by,
among other things, failing to deliver the registration rights agreement, excluding Mr. Kim from the S1 registration statement, delaying
conversion of Mr. Kim’s notes, undertaking steps to dilute Mr. Kim’s shares, failing to honor Mr. Kim’s 50% participation
right in any subsequent financing and failing to appoint a designated director, as set forth in the parties’ agreement. Mr. Kim
seeks specific performance of the 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, however, the Company is not able to predict the outcome, and there is no assurance that the Company will
be successful in its 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