Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 37

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 37
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 market may also impair our ability to raise capital by selling shares of our securities
and may impair our ability to enter into strategic partnerships or acquire companies or products by using shares of our securities as
consideration, which could have a material adverse effect on our business, financial condition, and results of operations.

The
Nasdaq Capital Market may subsequently delist our securities if we fail to comply with ongoing listing standards.

The
Nasdaq Capital Market’s rules for listed companies requires us to meet certain financial, public float, bid price and liquidity
standards on an ongoing basis in order to continue the listing of our Common Stock. In addition to specific listing and maintenance standards,
the Nasdaq Capital Market has broad discretionary authority over the continued listing of securities, which it could exercise with respect
to the listing of our Common Stock.

40

As
a listed company, we are required to meet the continued listing requirements applicable to all Nasdaq Capital Market companies. On September
20, 2022, the Company received a notification letter from the Listing Qualifications Department of The Nasdaq Stock Market LLC (“NASDAQ”)
indicating that the Company was not in compliance with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2)
for continued listing (the “Bid Price Rule”). On December 28, 2022, the Company completed a 1-for-35 reverse stock split,
which became effective on December 28, 2022. On January 17, 2023, the Company received notice that the Company had regained compliance
with the Bid Price Rule. In addition to the Bid Price Rule previously described, Nasdaq Capital Market listing rules require us to maintain
a minimum stockholders’ equity of $2.5 million under Nasdaq Listing Rule 5550(b)(1), a minimum market value of listed securities
of $35 million under Nasdaq Listing Rule 5550(b)(2), or a minimum net income of $500,000 under Nasdaq Listing Rule 5550(b)(3).

The
Company received a notification letter from NASDAQ on January 23, 2024 (the “NASDAQ Notification Letter”), indicating that
the Company was not in compliance with NASDAQ Listing Rule 5550(b)(1) (the “Stockholders’ Equity Requirement”). The
NASDAQ Notification Letter stated that the Company failed to maintain a minimum of $2,500,000 in stockholders’ equity for continued
listing, as required by the Stockholders’ Equity Requirement.