Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 35

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 35
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to comply with the Foreign Corrupt Practices Act could adversely affect our business.

We
are required to comply with the United States Foreign Corrupt Practices Act (or FCPA), which prohibits U.S. companies from engaging in
bribery or other prohibited payments to foreign officials for the purpose of obtaining or retaining business. Foreign companies, including
some of our competitors, are not subject to these prohibitions. Corruption, extortion, bribery, pay-offs, theft and other fraudulent
practices occur from time-to-time in mainland China. If our competitors engage in these practices, they may receive preferential treatment
from personnel of other companies or government agencies, giving our competitors an advantage in securing business or from government
officials who might give them priority in obtaining new licenses, which would put us at a disadvantage.

We
have operations, agreements with third parties, and make sales in China. Companies with operations in China have been accused and found
guilty of sales practices that involve unlawful activity, including violations of the FCPA. We believe to date we have complied in all
material respects with the provisions of the FCPA. However, our existing safeguards and any future improvements may prove to be less
than effective, and the employees, consultants and/or distributors of our Company may engage in conduct for which we might be held responsible.
Violations of the FCPA may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could negatively
affect our business, operating results and financial condition. In addition, the government may seek to hold our Company liable for successor
liability FCPA violations committed by companies in which we invest or that we acquire.

39

Risks
Related to Ownership of our Common Stock

The
market price of our stock may be volatile, and you could lose all or part of your investment.

The
trading price of our Common Stock is likely to be highly volatile and subject to wide fluctuations in response to various factors, some
of which we cannot control. In addition to the factors discussed in this “Risk Factors” section and elsewhere in this Report,
these factors include but are not limited to:

    ●
    the
    success of, or developments in, competitive products, services or technologies;
  
    ●
    regulatory
    actions with respect to our products and our competitors;
  
    ●
    the
    level of success of our marketing strategy;
  
    ●
    announcements
    by us or our competitors of significant acquisitions