Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 94

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 94
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 Boxes, including 156 Boxes to ADS, Inc. under a federal government subcontract.

Regulatory Status

The Casita has been approved under the modular housing regulations of California, Nevada, New Mexico and South Carolina, and may be sold in 11 additional states and certain tribal lands that do not have a statewide modular housing program. When mounted on a chassis, the Casita self-certifies as an ANSI A119.5 Park Model RV and may be sold in the majority of U.S. states. BOXABL is pursuing additional state modular approvals, including in Texas, and will seek approvals for two Casita configurations (722 sq. ft.) and the Phase 2 system as market demand warrants.

Distribution and Sales Process

BOXABL’s “Directory” consists of 80 trained and licensed dealers/installers operating across 11 states, guiding customers through permitting, site work, installation, and financing. In addition, to maintain better direct contact with potential customers and to better drive the sales process, BOXABL has begun applying for both manufacturer and dealer licenses in all states that have such requirements for the sale of factory built homes & structures.

Market Opportunity

BOXABL targets three (3) primary markets: (i) Accessory Dwelling Units (ADUs), a $3.3 billion U.S. market projected to reach $10.6 billion by 2030; (ii) U.S. modular construction, projected to grow from $10.5 billion in 2022 to $19.2 billion in 2030; and (iii) Recreational Vehicles, a $35.9 billion U.S. market expected to grow to $53.2 billion by 2030. Management believes BOXABL’s shipping efficiency, factory quality and rapid on-site assembly provide competitive advantages over stick-built, manufactured, traditional modular, panelized and RV alternatives.

Intellectual Property

BOXABL owns a global portfolio of more than 50 issued and pending patents covering structure, transport, and manufacturing systems for foldable building modules, as well as the registered BOXABL trademark. BOXABL acquired all previously licensed IP in June 2023 through its merger with 500 Group Inc.

Recent Developments and Litigation

During 2024, BOXABL recorded a $12.4 million impairment on deposits and customized equipment after a key supplier failed to deliver; related litigation seeking damages and performance is pending. In January 2025, BOXABL implemented a workforce reduction to align production with expected deliveries, reducing headcount from 167 to approximately 119 employees.