Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 13

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 13
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 of our employees.

Due
to the specialized nature of the business and our small size, we are highly dependent upon our ability to attract and retain qualified
sales and marketing, technical and managerial personnel. The loss of the services of existing personnel, as well as the failure to recruit
key sales, marketing, technical and managerial personnel in a timely manner would be detrimental to our development and could have a
material adverse effect on our business and financial condition. Our anticipated growth and expansion into areas and activities requiring
additional expertise, such as sales and marketing, may require the addition of new management personnel, both domestic and international.
All of our employees may terminate their employment at any time with short or no advance notice. We may have difficulties locating, recruiting
or retaining qualified sales people. Recruiting and retention difficulties will limit our ability to support our development and sales
programs and to build a commercially viable business.

The
competition for talent is currently extremely high. In this competitive environment, our business could be adversely impacted by increases
in labor costs, including wages and benefits, including those increases triggered by regulatory actions regarding wages, scheduling and
benefits; increased health care and workers’ compensation insurance costs; increased wages and costs of other benefits necessary
to attract and retain high quality employees with the right skill sets, and increased wages, and benefits and other costs. In addition,
our wages and benefits programs, combined with the periodic challenges in the labor market, may be insufficient to attract and retain
talent.

Because
our management structure is not centralized, the management of our business operations may be more expensive and more difficult.

As
part of our strategy to attract the most qualified individuals, we do not require the members of our management team to relocate to a
particular geographic area. Accordingly, the members of our management team are geographically dispersed. This decentralized structure
might cause additional expenses in the conduct of our business, and may also delay communication between members of our management team,
lower the quality of our management decisions or decrease our ability to take action quickly.

We
expect to continue to experience inflationary pressure on our cost structure, and price increases may not be sufficient to offset cost
increases or may result in sales volume declines.

We
expect for the foreseeable future to experience inflationary pressure on our cost structure. We may be able to pass some or all raw materials,
energy and other input cost increases to customers by increasing the selling prices of our products or decreasing the size of our products;
however, higher product prices or decreased product