Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 379

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 2
Chunk 379
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Our
principal executive office is located at Room R2, FTY D, 16/F, Kin Ga Industrial Building, 9 San On Street, Tuen Mun, Hong Kong, at a
monthly rental cost of RMB 4,167 (approximately $594), with the lease expiring on December 17, 2025.

We
currently lease office space and facilities in Delray Beach, Florida; Tuen Mun, Hong Kong; and Beijing, China. Our office in Delray
Beach, Florida has a total monthly lease expense of approximately $3,500, with the lease expiring on August 31, 2025. Our office in
Beijing, China has a total yearly lease expense of approximately RMB 3,000 (approximately $428), with the lease expiring on August
12, 2027. We have analyzed our current facilities in light of our anticipated requirements, and we expect to continue optimizing our
office space and facilities to meet our future needs.

ITEM
3. LEGAL PROCEEDINGS

Steeped
Litigation

As
previously disclosed, on January 27, 2023, Steeped, Inc. d/b/a Steeped Coffee (“Steeped”) filed a complaint against the Company
in the Superior Court of California, Santa Cruz County (Case No. 23CV00234) (the “Complaint”). The Complaint related to Steeped’s
claim that the Company breached a 2021 settlement agreement that resolved Steeped’s 2019 trademark infringement case against the
Company. The earlier case involved Steeped’s purported trademark protection for “steeped coffee” and related phrases.

Steeped
alleged breach of contract, intentional interference with contractual relations, intentional interference with prospective economic advantage,
and fraud in the inducement of contract. Plaintiff sought a trial by jury and relief in the form of a permanent injunction for use of
“Steep Coffee” or any confusingly similar variant of “STEEPED COFFEE”; the impoundment and destruction of allegedly
violating packaging materials and/or finished goods; a final judgment for all profits derived from the Company’s allegedly unlawful
conduct, actual damages, damages to the Steeped’s reputation and goodwill among its customers and partners; and reasonable attorneys’
fees and costs. The Company answered the Complaint with a general denial and asserted twenty-five affirmative defenses.

On
January 16, 2024, without a