Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 562

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 562
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 | ​ | ​     
 ​ ​ ​ |     ​ 
  2023 |
|:---------------------------------------|:---------------|:--------------------------------|------:|:--|:------|------:|
| Cost of Goods Sold                     | ​              | $                               | 2,458 | ​ | $     |   916 |
| General and Administrative             | ​              |                                 | 1,972 | ​ |       | 3,930 |
| Sales and Marketing                    | ​              |                                 | 1,468 | ​ |       | 2,157 |
| Research and Development               | ​              |                                 | 1,350 | ​ |       | 1,726 |
| Total Stock-Based Compensation Expense | ​              | $                               | 7,248 | ​ | $     | 8,729 |

The expected life of employee stock options was estimated using the “simplified method,” as the Company has no historical information to develop reasonable expectations about future exercise patterns and employment duration for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The expected life of awards that vest immediately use the contractual maturity since they are vested when issued. For stock price volatility, the Company uses public company compatibles as a basis for its expected volatility to calculate the fair value of option grants. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option at the grant-date. The Company recognizes stock option forfeitures as they occur as there is insufficient historical data to accurately determine an estimate of future forfeiture rates. Future stock-based compensation expense related to these options and RSUs as of December 31, 2024, to be recognized is approximately $124.8 million, which is expected to be expensed upon satisfaction of the performance condition. This amount of future stock-based compensation expense could be affected by any future option and RSU grants or by any forfeitures.

F- 52

Stock-based compensation expense for all stock-based awards, including stock options and restricted stock units (“ RSUs”), is measured at fair value on the date of grant. The fair value of stock options is estimated on the date of grant using a Black-Scholes option-pricing model. The fair value of RSUs is estimated on the date of grant based on the fair value of the underlying common stock. The Company has elected to recognize compensation expense for stock options granted to employees on a straight-line basis over the