Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 49

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 49
---

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, if we are able to successfully
identify and acquire additional businesses, we may not be able to successfully integrate the acquired personnel or operations, or effectively
manage the combined business following the acquisition, any of which could harm our business and financial condition.

In
addition, to the extent we finance any acquisition or investment in cash, it would reduce our cash reserves, and to the extent the purchase
price is paid with shares of our Common Stock, it could be dilutive to our current stockholders.

Ongoing
geopolitical tensions around the world may have a material adverse effect on our business, financial condition, and results of operations.

We
may face risks associated with heightened tensions in geopolitical and economic relations. Rivalries and sanctions between major powers,
including the United States and China, and unrest, terrorist threats, wars and other conflicts involving Ukraine, the Middle East and
elsewhere have created increased global uncertainty. Such geopolitical tensions, along with trade disputes and regional conflicts, may
result in economic instability, market volatility, and regulatory changes, which could impact our supply chain, operations, and consumer
demand. Recently, the United States has proposed to impose multiple rounds of tariffs on a wide range of goods imported from multiple
countries, including China, and China has responded with retaliatory tariffs. Since February 2025, the U.S. administration has proposed
to increase the total tariff level for imported Chinese goods to 125%, and additional tariff increases could be imposed as the trade
tension between the two countries continues to heighten. On April 9, 2025, China responded by hiking its levies on U.S. imports to 84%
from 34%. On