Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 46

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 46
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 allegations of product contamination or quality or safety issues, even when false or
unfounded, could subject us to product liability and consumer claims, negative publicity, a loss of consumer confidence and trust, may
require us from time to time to conduct costly recalls from some or all of the channels in which the affected product was distributed,
could damage the goodwill associated with our brands, and may cause consumers to choose other products. Such issues could result in the
destruction of product inventory and lost sales due to the unavailability of product for a period of time, which could cause our business
to suffer and affect our results of operations.

If
equity research analysts do not publish research or reports about our business or if they issue unfavorable commentary or downgrade our
Common Stock, the price of our Common Stock could decline.

The
trading market for our Common Stock will rely in part on the research and reports that equity research analysts publish about us and
our business. We do not control these analysts. The price of our Common Stock could decline if one or more equity analysts downgrade
our Common Stock or if analysts issue other unfavorable commentary or cease publishing reports about us or our business.

We
may be subject to securities litigation, which is expensive and could divert management attention.

The
market price of our Common Stock has been, and may in the future be, volatile. In the past, companies that have experienced volatility
in the market price of their stock have been subject to securities litigation, including but not limited to securities class action litigation.
We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and
divert our management’s attention from other business concerns, which could have a material adverse effect on our business and
financial condition.

45

If
we are unable to protect our information systems against service interruption or failure, misappropriation of data or breaches of security,
our operations could be disrupted, we could be subject to costly government enforcement actions and private litigation and our reputation
may be damaged.

Our
business involves the collection, storage and transmission of personal, financial or other information that is entrusted to us by our
customers and employees. Our information systems also contain the Company’s proprietary and other confidential information related
to our businesses. Despite the implementation of network security measures, our systems and those of third parties on which we rely may
also be susceptible to damage, disruptions or shutdowns due to failures during the process of upgrading or replacing software, databases
or components; power