Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 34

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 34
---
 by
the Data Security Law and the recent Chinese government actions could materially adversely affect our ability, on favorable terms, to
raise capital, including engaging in follow-on offerings of our securities in the U.S. market.

38

On
November 14, 2021, the Cyberspace Administration of China released the Regulations on the Network Data Security Management (Draft for
Comments), or the Data Security Management Regulations Draft, to solicit public opinion and comments till December 13, 2021, which has
not been promulgated as of the date of this report. Pursuant to the Data Security Management Regulations Draft, data processors holding
more than one million users/users’ individual information shall be subject to cybersecurity review before listing abroad. Data
processing activities refers to activities such as the collection, retention, use, processing, transmission, provision, disclosure, or
deletion of data. According to the latest amended Cybersecurity Review Measures, which was promulgated on November 16, 2021 and became
effective on February 15, 2022, an online platform operator holding more than one million users/users’ individual information shall
be subject to cybersecurity review before listing abroad.

As
of the date of this report, CIMG and its subsidiaries have not received any notice from any authorities requiring the PRC subsidiaries
to go through cybersecurity review or network data security review by the CAC. Given that the PRC subsidiaries do not possess personal
data of at least one million individual clients and do not collect data that affects or may affect national security in their business
operations as of the date of this report and do not anticipate that they will be collecting over one million users’ personal information
or data that affects or may affect national security in the near future. There remains uncertainty, however, as to how the Cybersecurity
Review Measures and the Security Administration Draft will be interpreted or implemented and whether the PRC regulatory agencies, including
the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures
and the Security Administration Draft. If any such new laws, regulations, rules, or implementation and interpretation come into effect,
we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us. We cannot guarantee,
however, that we will not be subject to cybersecurity review and network data security review in the future, which could materially and
adversely affect our business, financial conditions, and results of operations.

Failure