Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 146

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 146
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 ● | Consumer confidence and spending; |

| ● | Housing demand; |

| ● | Availability of financing for individuals and companies who purchase our Casitas, including the purchase of land; |

| ● | Interest rates; |

| ● | Inflation; |

| ● | Availability and prices of new homes and existing homes for sale and availability and market values of rental properties; and |

| ● | Demographic trends. |

Adverse changes in these general and local economic conditions or deterioration in the broader economy may negatively impact our business and financial results and increase the risk of asset impairments and write-offs. Changes in these economic conditions may affect some of our regions or markets more than others. If adverse conditions affect our larger markets, they could have a proportionately greater impact on us than on some other companies. The federal government’s fiscal policies and the Federal Reserve’s monetary policies may negatively impact the financial markets and consumer confidence and could hurt the U.S. economy, the housing and rental markets, and in turn, could adversely affect the operating results of our business. The Federal Reserve’s decision not to cut interest rates could result in a prolonged period of higher costs to purchasers of our Casitas and the land on which the Casita will be installed, to the extent the purchaser funds these purchases

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with loans. Prolonged periods of elevated interest rates or further increases in interest rates could have an adverse impact on our business and financial results.

If we experience any of the foregoing, potential customers may be less willing or able to buy our Casitas. Additionally, cancellations of sales contracts in backlog may increase if purchasers do not honor their contracts due to any of the factors discussed above. Our pricing and product strategies may also be limited by market conditions. We may be unable to change the pricing or mix of our Casita offerings, reduce the costs of Casitas we build, offer more affordable Boxes or satisfactorily address changing market conditions in other ways without adversely affecting our profits and returns.

Changes in international trade policies, tariffs, and supply chain disruptions could negatively affect our operations.

The U.S. government recently implemented new tariff measures affecting a broad range of imported materials. We have evaluated the potential impact of these actions on our operations and supply chain and do not expect them to have a material impact on our financial position or results of operations in the near term. Our operations are currently supported by a substantial inventory of completed units manufactured prior to the effective dates of the tariff adjustments, which reduces our near-term exposure to increased costs associated with imported materials.