Company: FGMCU
Filing Date: 2025-01-21
Form Type: S-1/A
Source: 0001104659-25-004764
Chunk: 309

Company: FG Merger II Corp.
Filing Date: 2025-01-21
Form: S-1/A
Chunk 309
---
 expenses and
accounting expense incurred through the balance sheet date that are directly related to the Proposed Offering and that will be charged
to stockholders equity upon the completion of the Proposed Offering. Should the Proposed Offering prove to be unsuccessful, these deferred
costs, as well as additional expenses incurred, will be charged to operations.

Income taxes

The Company complies with the accounting and reporting requirements
of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for
income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of
assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the
periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce
deferred tax assets to the amount expected to be realized.

ASC Topic 740 prescribes a recognition threshold and a measurement
attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For
those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were
no unrecognized tax benefits as of September 30, 2024and no amounts accrued for interest and penalties. The Company is currently
not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The
Company is subject to income tax examinations by major taxing authorities since inception. Company’s year end is December 31
and no statutory tax deadline has yet occurred.

There was no provision for income taxes for the nine month period
September 30, 2024 and for the period from September 20, 2023 (inception) to December 31, 2023.

Net loss per share

Net loss per share is computed by dividing net loss by the weighted
average number of shares of common stock outstanding during the period, excluding shares of common stock subject to forfeiture by the
Initial Stockholders. The Company had 2,156,250 founder shares outstanding as of September 30, 2024.

Fair value of financial instruments

The fair value of the Company’s assets and liabilities, which
qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented