Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 202

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 202
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 Coupled with the expansion of social media platforms and similar devices that allow individuals access to a broad audience,
these claims have had a significant negative impact on some businesses. Companies that have faced employment or harassment related lawsuits
have had to terminate management or other key personnel and have suffered reputational harm that has negatively impacted their sales.
If we were to face any employment related claims, our business could be negatively affected.

46

Future
changes in financial accounting standards or practices may cause adverse unexpected financial reporting fluctuations and affect reported
results of operations.

A
change in accounting standards or practices can have a significant effect on our reported results and may even affect our reporting of
transactions completed before the change is effective. New accounting pronouncements and varying interpretations of accounting pronouncements
have occurred and may occur in the future. Changes to existing rules or the questioning of current practices may adversely affect our
reported financial results or the way we conduct business.

Currently
pending, threatened or future litigation or governmental or regulatory proceedings or inquiries could result in material adverse consequences,
including judgments or settlements.

We
are, or may from time to time become, involved in lawsuits and other legal, governmental or regulatory proceedings or inquiries. See
“Item 3. Legal Proceedings” included in this Annual Report for information regarding currently pending litigation that could
have a material impact on the Company. Many of these matters raise complicated factual and legal issues and are subject to uncertainties
and complexities, all of which make the matters costly to address. The timing of the final resolutions to any such lawsuits, inquiries,
and other legal proceedings is uncertain.

Additionally,
the possible outcomes or resolutions to these matters could include adverse judgments or settlements, either of which could require substantial
payments, adversely affecting our consolidated financial condition, results of operations and cash flows. Any judgment against us, the
entry into any settlement agreement, or the imposition of any fine could have a material adverse effect on our consolidated financial
condition, results of operations and cash flows.

Future
acquisitions of and investments in new businesses could impact our business and financial condition.

From
time to time, we may acquire or invest in businesses or partnerships that we believe could complement our business. The pursuit of such
acquisitions or investments may divert the attention of management and cause us to incur various expenses, regardless of whether the
acquisition or investment is ultimately completed. In addition, acquisitions and investments may not perform as expected and we may be
unable to realize the expected benefits, synergies, or developments that we may initially anticipate. Further