Company: IMG
Filing Date: 2025-08-26
Form Type: 10-Q
Source: 0001641172-25-025514
Chunk: 27

Company: CIMG Inc.
Filing Date: 2025-08-26
Form: 10-Q
Item: Item 1
Chunk 27
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 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 Company failed to pay directors’ fees and expenses from the
last quarter the fiscal year ended September 30, 2023 through the first two quarters of the fiscal year ended September 30, 2024, and
is claiming breach of contract, quantum meruit, unjust enrichment, promissory estoppel, breach of the implied covenant of good faith
and fair dealing, and unfair business practices. The Ex-Directors seek monetary damages in excess of $200,000, with applicable interest,
costs and attorneys’ fees. The Company’s answer to the Complaint was due on April 16, 2025. On April 17, 2025, the Ex-Director’s
filed a request for entry of default. To date, no default has been entered against the Company. As of the date of this quarterly report,
two parties are still negotiating.

11.
SUBSEQUENT EVENTS

Private
Placement

SCHEDULE
OF PRIVATE PLACEMENT

    Date
     
    Transaction
    Description
     
    Amount/Shares
     
    Status
  
    December
    12, 2024
     
    Convertible
                                            Note and Warrant Purchase Agreement
     
    (Form
8-K filed on December 17, 2024, Form 8-K/A filed on January 23, 2025, Form 8-K filed on April 3, 2025)
     
    $10,000,000
    for up to 25,641,023 shares of Common Stock, subject to shareholders’ approval
     
    The
                                            clos