Company: IMG
Filing Date: 2025-07-21
Form Type: 10-K
Source: 0001641172-25-020300
Chunk: 42

Company: CIMG Inc.
Filing Date: 2025-07-21
Form: 10-K
Item: Item 1A
Chunk 42
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 compliance with such rules and regulations to substantially increase our legal and financial compliance costs and to make
some activities more time-consuming and costly. These requirements may divert the attention of our management and personnel from other
business concerns, and they could have a material adverse effect on our business, financial condition, and results of operations. The
increased costs will decrease our net income or increase our net loss, and may require us to reduce costs in other areas of our business
or increase the prices of our products or services. For example, these rules and regulations may make it more difficult and more expensive
for us to obtain director and officer liability insurance and we may be required to incur substantial costs to maintain the same or similar
coverage. We cannot accurately predict or estimate the amount or timing of additional costs we may incur to respond to these requirements.
The impact of these requirements could also make it more difficult for us to attract and retain qualified persons to serve on our Board,
our Board committees or as executive officers.

42

We
expect to incur significant costs and devote substantial management time to maintaining our disclosure controls and procedures and internal
control over financial reporting, and regardless we may be unable to prevent or detect all errors or acts of fraud or to accurately and
timely report our financial results or file our periodic reports in a timely manner.

As
a publicly traded company, our management is required to report annually on the effectiveness of our internal control over financial
reporting pursuant to Section 404 of the Sarbanes-Oxley Act, or Section 404. The rules governing the standards that must be met for our
management to assess our internal control over financial reporting are complex and require significant documentation, testing and possible
remediation.

We
designed our disclosure controls and procedures to reasonably assure that information we must disclose in reports we file or submit under
the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the SEC. We believe that any disclosure controls and procedures or internal controls and procedures,
no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system
are met.

These
inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of
simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more
people or by an unauthorized override of the