Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 195

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 195
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 In addition, in the event of such
delisting, we could experience a decreased ability to issue additional securities and obtain additional financing in the future.

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.

Our
management will have broad discretion in the application of the net proceeds from our recent offering. We intend to use the net proceeds
from the offering to acquire complementary businesses, acquire or license products or technologies that are complementary to our own,
although we have no current plans, commitments or agreements with respect to any such use of proceeds for acquisitions or licenses, and
for working capital and general corporate purposes. As a result, you will be relying upon management’s judgment with only limited
information about our specific intentions for the use of the balance of the net proceeds of the offering. You will not have the opportunity,
as part of your investment decision, to assess whether we are using the proceeds appropriately. Our management might not apply our net
proceeds in ways that ultimately increase the value of your investment. If we do not invest or apply the net proceeds from the offering
in ways that enhance stockholder value, we may fail to achieve expected financial results, which could cause our stock price to decline.

We
incur significant costs as a result of operating as a public company, and our management must devote substantial time to compliance initiatives
as a result of the listing of our Common Stock on the Nasdaq Capital Market.

As
a listed company, we are required to meet the continued listing requirements applicable to all NASDAQ Capital Market companies. We expect
our ongoing compliance with such rules and regulations to substantially increase our legal and financial compliance costs and to make
some activities more time-consuming and costly. These requirements may divert the attention of our management and personnel from other
business concerns, and they could have a material adverse effect on our business, financial condition, and results of operations. The
increased costs will decrease our net income or increase our net loss, and may require us to reduce costs in other areas of our business
or increase the prices of our products or services. For example, these rules and regulations may make it more difficult and more expensive
for us to obtain director and officer liability insurance and we may be required to incur substantial costs to maintain the same or similar
coverage. We cannot accurately predict or estimate the amount or timing of additional costs we may incur to respond to these requirements