Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 3

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 3
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see page 36)

    ●
    Increases
    in labor costs in the PRC may adversely affect our business and our profitability. (see page 36)

20

    ●
    Our
    auditor is headquartered in Singapore and is subject to inspection by the PCAOB on a regular basis. To the extent that our independent
    registered public accounting firm’s audit documentation related to their audit reports for our company become located in China,
    the PCAOB may not be able inspect such audit documentation and, as such, you may be deprived of the benefits of such inspection and
    our Common Stock could be delisted from the stock exchange pursuant to the Holding Foreign Companies Accountable Act and Accelerating
    Holding Foreign Companies Accountable Act. (see page 36)

    ●
    In
    light of recent events indicating greater oversight by the CAC over data security, we may be subject to a variety of PRC laws and
    other obligations regarding cybersecurity and data protection, and any failure to comply with applicable laws and obligations could
    have a material adverse effect on our business and our securities. (see page 37)

    ●
    Compliance
    with China’s new Data Security Law, Measures on Cybersecurity Review (revised draft for public consultation), Personal Information
    Protection Law (second draft for consultation), regulations and guidelines relating to the multi-level protection scheme and any
    other future laws and regulations may entail significant expenses and could materially affect our business. (see page 37)

    ●
    Failure
    to comply with the Foreign Corrupt Practices Act could adversely affect our business. (see page 39)

Risks Related to Ownership of our Common Stock

    ●
    The
    market price of our stock may be volatile, and you could lose all or part of your investment. (see page 40)

    ●
    Despite
    our listing on the Nasdaq Capital Market, there can be no assurance that an active trading market for our Common Stock will be sustained.
    (see page 40)

    ●
    The
    Nasdaq Capital Market may subsequently delist our securities if we fail to comply with ongoing listing standards. (see page 40)

    ●
    We
    have broad discretion in the use of the net proceeds from our recent offering and may not use them effectively, which could affect
    our results of operations and cause our stock price to decline. (see page 42)

    ●
    We