Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 182

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 182
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 or predominantly
within the United States.

You
may experience difficulties in protecting your rights through the United States courts.

Currently,
part of our operations is conducted in China and part of our assets are located in China. Part our officers are nationals or residents
of the PRC and a substantial portion of their assets are located outside the United States. As a result, it may be difficult for a stockholder
to effect service of process within the United States upon these persons, or to enforce judgments against us which are obtained in United
States courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any
state in the United States.

In
addition, it may be difficult or impossible for you to effect service of process within the United States upon us our directors and officers
in the event that you believe that your rights have been violated under United States securities laws or otherwise. Even if you are successful
in effecting service of process and bringing an action of this kind, the laws of China may render you unable to enforce a judgment against
our assets or the assets of our directors and officers. There is no statutory recognition in the PRC of judgments obtained in the United
States.

Increases
in labor costs in the PRC may adversely affect our business and our profitability.

The
economy of China has been experiencing significant growth, leading to inflation and increased labor costs. China’s overall economy
and the average wage in the PRC are expected to continue to grow. Future increases in China’s inflation and material increases
in the cost of labor may materially and adversely affect our profitability and results of operations.

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.

Our
independent registered public accounting firm issued an audit opinion on the financial statements included in this report filed with
the SEC and will issue audit reports related to our company in the future. As auditors of companies that are traded publicly in the United
States and a firm registered with the PCAOB, our auditor is required by the laws of the United