Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 203

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 203
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, 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 April 10, 2025, the U.S. imposed a 34% “reciprocal tariff” on top of existing levies, effectively raising the
minimum tariff on Chinese goods to 54%. On April 11, 2025, the U.S. announced that consumer electronics would be exempt from tariffs
imposed on most countries, but a 20% tariff would remain in place for electronics imported from China. Later that same day, in a further
retaliatory move, China increased tariffs on U.S. imports to 125%.

Historically,
tariffs have led to increased trade and political tensions, between the U.S. and China, as well as between the U.S. and other countries.
Political tensions as a result of trade policies could reduce trade volume, cross-border investment, technological exchange,