Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 47

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 47
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 outages; telecommunications or system failures; server or cloud provider breaches; computer viruses; physical or
electronic break-ins; cyber-attacks; catastrophic events; or breaches due to employee error or malfeasance or other attempts to harm
our systems. Cybersecurity threats and incidents can range from uncoordinated individual attempts to gain unauthorized access to information
technology networks and systems to more sophisticated and targeted measures, known as advanced persistent threats, directed at the Company,
its products, its customers and/or its third-party service providers. Because the techniques used to obtain unauthorized access, disable
or degrade service, or sabotage systems change frequently and often are not recognized until launched against a target, we may be unable
to anticipate these techniques or to implement adequate preventative measures in time. We could also experience a loss of critical data
and delays or 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