Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 52

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 52
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 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 finding or admission of wrongdoing, the Company entered into a settlement agreement with Steeped. In exchange
for mutual releases and a dismissal of the lawsuit with prejudice, the Company paid Steeped $500,000. Steeped filed a Notice of Settlement
on January 30, 2024, and on April 18, 2024, the case was dismissed. On June 19, 2024, both parties officially signed the “SETTLEMENT
AGREEMENT AND MUTUAL RELEASE”, the Company paid Steeped $500,000.

Curtin
Litigation

As
previously disclosed, on January 6, 2023, a former employee of the Company, Rosalina Curtin filed a complaint against the Company and
another former employee of