Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 134

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 134
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 including reasons relating to us or to the broader economy, we may not survive. If we are unable to raise enough funds to develop as outlined herein, we will have to find other sources of funding.

We are dependent on our ability to receive additional financing and fully draw down our potential future financing, which may restrict our ability to conduct our business.

Our plan for manufacturing our room modules that are stacked and connected to almost any shape and style of finished buildings, and expanding our product line, depends on our ability to receive sufficient financing. We are anticipating applying for a loan. There is no assurance this loan will move past the application stages. If the loan is approved, we anticipate the need to fully draw down on the potential loan facility. We may not, however, access all of these funds at once, but only over a period through periodic draws as eligible costs are incurred. Our ability to draw down these potential funds may be conditioned upon several draw conditions, including progress milestones relating to our business performance. Additionally, we anticipate the loan facility, if accepted, will require us to comply with certain operating covenants and will place additional restrictions on our ability to operate our business. We are unaccustomed to managing our business with such restrictions and others that are associated with a significant credit agreement. If we are unable to draw down the anticipated funds under the potential loan facility, or our ability to make such drawdowns is delayed, we may need to obtain additional or alternative financing to operate our facilities to the extent our cash on hand is insufficient. Any failure to obtain the loan or secure other alternative funding could materially and adversely affect our business and prospects. Such additional or alternative financing may not be available on attractive terms, if at all, and could be more costly for us to obtain. As a result, our plans for building our Boxes could be significantly delayed which would adversely affect our business, prospects, financial condition, and operating results.

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Demand for our Casitas and any other products we develop may be cyclical and affected by changes in economic, real estate or other conditions that could adversely affect our business and financial results. During 2024 and into mid-2025, the construction market has been slowing. According to the US Census Bureau, privately owned housing statistics in June 2025 were at a seasonally adjusted annual rate of 1,621.9 billion, which represents a 5.2% reduction from the housing statistics in June 2024 of 1,711.0 billion. Management