Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 165

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 165
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 also in developed marketplaces, where discounters and value stores, as well as the volume of
transactions through e-commerce, are growing at a rapid pace. If we are unable to successfully adapt to the rapidly changing environment
and retail landscape, our share of sales, volume growth and overall financial results could be negatively affected.

Our
business, growth and profitability depend on the performance of third-parties and our relationship with them.

In
connection with the distribution of maca products, we rely on third-party suppliers and manufacturing partners to provide high quality
maca products. We also rely on our manufacturing partners to provide us with additional manufacturing and facilitate distribution efforts
throughout China. Our reliance on third-party suppliers and manufacturing partners subjects us to additional risks, including the possible
termination of the arrangement by a third-party suppliers or manufacturing partner at a time that is costly or inconvenient for us. Our
third-party suppliers and manufacturing partners are independent entities subject to their own unique operational and financial risks
that are out of our control. If any of these third-party suppliers or manufacturing partners fail to perform as required, this could
cause delays in our receipt of the maca products or otherwise adversely affect our business.

In
addition, a significant portion of our distribution network, and correspondingly our success in distributing our maca products, depends
on the performance of third-parties. Any non-performance or deficient performance by such parties may undermine our operations and profitability.
For distribution of our maca products, we typically rely on third party distribution networks, including freight companies and common
carriers. The success of these distribution networks depends on the performance of brokers, distributors, common carriers and retailers,
as well as our third-party manufacturing partners as it relates to distribution of certain of our products. There is a risk that a broker,
distributor, common carrier or retailer may refuse to or cease to market or carry our product, or that any such entity or our third-party
manufacturing partner may not adequately perform its functions within the network by, without limitation, failing to distribute our products.

Furthermore,
such third-parties’ financial position or market share may deteriorate, which could adversely affect our distribution, marketing
and sale activities. We must also maintain good commercial relationships with third-party brokers, distributors and retailers so that
they will promote and carry our product. Any adverse consequences resulting from the performance of third-parties or our relationship
with them could undermine our operations and profitability.

Interruption
or increased costs of our supply chain and sales