Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 5

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 5
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    ●
    Currently
    pending, threatened or future litigation or governmental proceedings or inquiries could result in material adverse consequences,
    including judgments or settlements. (see page 47)

    ●
    Future
    acquisitions of and investments in new businesses could impact on our business and financial condition. (see page 47)

    ●
    Ongoing
    geopolitical tensions around the world may have a material adverse effect on our business, financial condition, and results of operations.
    (see page 47)

In
addition to the other information set forth in this Report and other filings we have made and make in the future with the SEC, you should
carefully consider the following risk factors and uncertainties, which could materially affect our business, financial condition or results
of operations in future periods. Additional risks are not currently known to us or that we currently deem to be immaterial also may materially
adversely affect our business, financial condition or results of operations in future periods.

22

Risks
Related to Our Financial Condition and Capital Requirements

We
have a history of net losses. We expect to continue to incur net losses in the future.

We
have incurred net losses since our inception in 2013, including net losses of $8.56 million and $8.75 million for the years ended September
30, 2024, and 2023, respectively. As of September 30, 2024, our accumulated deficit was approximately $81.93 million. We expect to incur
significant sales and marketing expenses, as well as costs associated with operating as an exchange-listed public company, prior to recording
sufficient revenue from our operations to offset these expenses.

These
losses have had, and will continue to have, an adverse effect on our working capital, total assets and stockholders’ equity. Our
ability to become and remain profitable will depend on our ability to generate significantly higher revenues from the sales of our single-service
coffee products, Maca series products, etc., which depends upon a number of factors, including but
not limited to successful sales, manufacturing, marketing and distribution of our products and services.

Because
of the numerous risks and uncertainties associated with our commercialization efforts, we are unable to predict when we will become profitable,
and we may never become profitable. Even if we do achieve profitability, we may not be able to sustain or increase profitability on a
quarterly or annual basis. Our inability to achieve and then sustain profitability would have a material adverse effect