Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 201

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 201
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 interruptions in our ability to manage inventories or process transactions. Some of our commercial partners, such as those
that help us deliver our website, may receive or store information provided by us or our users through our websites. If these third parties
fail to adopt or adhere to adequate information security practices, or fail to comply with our online policies, or in the event of a
breach of their networks, our users’ data may be improperly accessed, used or disclosed.

If
our systems are harmed or fail to function properly, we may need to expend significant financial resources to repair or replace systems
or to otherwise protect against security breaches or to address problems caused by breaches. If we experience a significant security
breach or fail to detect and appropriately respond to a significant security breach, we could be exposed to costly legal or regulatory
actions against us in connection with such incidents, which could result in orders or consent decrees forcing us to modify our business
practices. Any incidents involving unauthorized access to or improper use of user information, or incidents that are a violation of our
online privacy policy, could harm our brand reputation and diminish our competitive position. Any of these events could have a material
and adverse effect on our business, reputation or financial results. Our insurance policies carry coverage limits, which may not be adequate
to reimburse us for losses caused by security breaches.

Changes
in regulatory standards could adversely affect our business.

Our
business is subject to extensive domestic and international regulatory requirements regarding distribution, production, labeling and
marketing. Changes to regulation of the maca products industry could include increased limitations on advertising and promotional activities
or other non-tariff measures that could adversely impact our business. In addition, we face government regulations pertaining to the
health and safety of our employees and our consumers as well as regulations addressing the impact of our business on the environment,
domestically as well as internationally. Compliance with these health, safety and environmental regulations may require us to alter our
manufacturing processes and our sourcing. Such actions could adversely impact our results of operations, cash flows and financial condition,
and our inability to effectively and timely comply with such regulations could adversely impact our competitive position.

Employment
litigation and unfavorable publicity could negatively affect our future business.

Employees
may, from time to time, bring lawsuits against us regarding injury, creation of a hostile work place, discrimination, wage and hour,
sexual harassment and other employment issues. In recent years there has been an increase in the number of discrimination and harassment
claims generally.