Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 168

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 168
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 of our coffee products. Any future growth could impose significant added responsibilities on members of our existing
management and create strain on our organizational, administrative, and operational infrastructure, including sales and marketing, quality
control, and customer service. Our ability to manage our growth properly will require us to continue to improve our operational, financial
and management controls, as well as our reporting systems and procedures, which in the past have been determined to be inadequate. Our
status as an exchange-listed public company will require us to increase our investment in financial accounting and reporting. If our
current infrastructure is unable to handle our growth, we may need to expand our infrastructure, to identify and recruit new staff and
to implement new reporting systems. The time and resources required to implement such expansion and systems could adversely affect our
operations. Our future financial performance and our ability to expand and market our single-serve coffee products and to compete effectively
will depend, in part, on our ability to manage this potential future growth effectively, without compromising quality.

28

Any
failure by us to accurately forecast customer demand for our products, or to quickly adjust to forecast changes, could adversely affect
our business and financial results.

There
is inherent risk in forecasting demand due to the uncertainties involved in assessing the current level of maturity of the single serve
component of our business as well as the current and future needs of our customers. We set target levels for the manufacture of our coffee
products and for the purchase of coffee in advance of customer orders based upon our forecasts of customer demand and those of our business
partners. If our forecasts exceed demand, we could experience excess inventory in the short-term, excess manufacturing capacity in the
short and long-term, and/or price decreases, all of which could impact our financial performance. Alternatively, if demand exceeds our
forecasts significantly beyond our current manufacturing capacity, we may not be able to satisfy customer demand, which could result
in a loss of share if our competitors are able to meet customer demands. A failure to accurately predict the level of demand for our
products could adversely affect our net revenues and net income.

We
may not be able to adequately protect our intellectual property rights, and our competitors may be able to offer similar products and
services, which would harm our competitive position.

Our
success depends in part upon our intellectual property rights. We rely primarily on trademark, trade secret laws, confidentiality procedures,
license agreements and contractual provisions to establish and protect our proprietary rights over our products, procedures and services.
Other persons could