Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 170

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1
Chunk 170
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 and similar regulations could harm our business and financial results.

In
many countries, including the United States, we are subject to transfer pricing and other tax regulations designed to ensure that appropriate
levels of income are reported as earned and are taxed accordingly. Although we believe that we are in substantial compliance with all
applicable regulations and restrictions, we are subject to the risk that governmental authorities could audit our transfer pricing and
related practices and assert that additional taxes are owed. In the event that the audits or assessments are concluded adversely to us,
we may or may not be able to offset or mitigate the consolidated effect of foreign income tax assessments through the use of U.S. foreign
tax credits. Because the laws and regulations governing U.S. foreign tax credits are complex and subject to periodic legislative amendment,
we cannot be sure that we would in fact be able to take advantage of any foreign tax credits in the future.

Risks
Associated With Doing Business in China

Changes
in the policies of the PRC government could have a significant impact upon the business we may be able to conduct in the PRC and the
profitability of our business.

The
PRC’s economy is in a transition from a planned economy to a market-oriented economy subject to five-year and annual plans adopted
by the government that set national economic development goals. Policies of the PRC government can have significant effects on the economic
conditions within the PRC. The PRC government has confirmed that economic development will follow the model of a market economy. Under
this direction, we believe that the PRC will continue to strengthen its economic and trading relationships with foreign countries and
business development in the PRC will follow market forces. While we believe that this trend will continue, there can be no assurance
that this will be the case. A change in policies by the PRC government could adversely affect our interests by, among other factors:
changes in laws, regulations or the interpretation thereof, confiscatory taxation, restrictions on currency conversion, imports or sources
of supplies, or the expropriation or nationalization of private enterprises. Implementation of the negative list system. Although the
PRC government has been pursuing economic reform policies for more than two decades, there is no assurance that the government will continue
to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social
or political disruption, or other circumstances affecting the PRC’s political, economic and social environment.

The
approval and/or other requirements of the CSRC