Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 150

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 150
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 a timely basis, or at all, to the changing demands that our growth may impose on our existing management and infrastructure. For example, increasing demands on our infrastructure and management could cause any of the following to occur or increase:

| ● | inadequate internal controls required for a regulated entity; |

| ● | delays in our ability to handle the volume of customers; and |

| ● | failure to properly review and supervise personnel to make sure we are compliant with our duties as a public company. |

We have found it difficult to hire and retain qualified persons to manage our internal controls and reporting functions, including roles such as legal counsel, controller and other positions. In terms of employee oversight, we have become aware of at least one instance in which an employee engaged in fraudulent conduct. Based on the evaluation of our disclosure controls and procedures as of September 30, 2025, our Co-Chief Executive Officers and Chief Financial Officer have concluded that our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses in the design and operation of ineffective Information Technology General Controls over certain key financial IT systems and ineffective design and operation of certain business process controls over the preparation and timely review of financial statements and disclosures described below. This will require remediation in order to be effective at a reasonable assurance level. If we fail to adapt our management, information systems and financial and internal controls to our growth, or if we encounter other unexpected difficulties, our business, financial condition and operating results will suffer. We did not record any material impact related to the fraudulent conduct mentioned above. Management does not anticipate this matter will have a material impact on our results of operations or financial condition.

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Our future success is dependent on the continued service of our senior management.

Any loss of key members of our executive team could have a negative impact on our ability to manage and grow our business effectively. We do not maintain “key person” life insurance coverage for our Co-Chief Executive Officers or any other executive officer. The experience, technical skills and commercial relationships of our key personnel provide us with a competitive advantage, particularly as we are building our brand recognition and reputation.

We may not be able to effectively manage our growth, and any failure to do so may have an adverse effect on our business and operating results.

We have received substantial interest in our Casita Boxes and will strive to meet that demand. This will require significant scaling up of operations, including acquiring additional facilities space, and skilled labor. To date, we have limited experience manufacturing our products at a commercial scale.