Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 406

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 406
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 related to compensation and benefits for additional staff in IT, Legal, and Accounting, offset by BOXABL’s cost control initiatives. We also incurred higher sales and marketing expenses in the six months ended June 30, 2025 compared to the prior period, reflecting increased advertising as discussed above. Research and development activity declined following our obtaining state approvals under modular housing programs in several states. Stock-based Compensation Expense For the six-months ended June 30, 2025 and 2024, BOXABL recaptured $3.6 million and recognized $4.9 million in stock-based compensation, respectively. The decrease is attributable to employee forfeitures upon terminations in 2025, offset by the vesting of Stock options under BOXABL’s Amended 2021 stock incentive plan. See “ Note 12. Stockholders’ Equity – Stock-based Compensation” for further discussion.

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Total Other Income For the six months ended June 30, 2025 and 2024, our total other income was $872,000 as compared to $1.1 million, respectively, primarily due to lower balances of interest-bearing deposits. Liquidity and Capital Resources Going Concern BOXABL’s unaudited interim condensed consolidated financial statements have been prepared under the assumption that BOXABL will be able to continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. However, substantial doubt about BOXABL’s ability to continue as a going concern is probable. Primarily due to slower sales associated with delays in obtaining US statewide modular approvals and customer readiness, BOXABL reported a net loss of $41.1 million and an operating cash outflow of $33.7 million for the six months ended June 30, 2025. At June 30, 2025, BOXABL had an accumulated deficit of $759.5 million. Absent any other action, BOXABL will require additional liquidity to continue its operations over the next 12 months. The continuing viability of BOXABL and its ability to continue as a going concern is dependent on BOXABL being successful in its continued efforts in growing its revenue and/or accessing additional sources of capital. Management’s plan to address this need includes (a) continued exercise of tight controls to conserve cash, (b) accelerating product sales, and (c) raising funds through equity financing. BOXABL anticipates current capital on hand, product revenue, and expected future funding will be sufficient to fund BOXABL’s operations in excess of twelve months.