Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 440

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 440
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 of $51.8 million and an operating cash outflow of $42.0 million for the nine months ended September 30, 2025. At September 30, 2025, the Company had an accumulated deficit of $770.3 million. Absent any other action, the Company will require additional liquidity to continue its operations over the next 12 months.

The continuing viability of the Company and its ability to continue as a going concern is dependent on the Company 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. The Company conducted offerings of shares of its preferred stock through Regulation A and Regulation D in the United States and in a Canadian offering, that were finalized for settlement during the third quarter of 2025. However, there can be no assurances that management’s plans will be achieved.

Sources of Liquidity

To date, our operations have been financed by our exempt offerings of securities made in reliance on Regulation A, Regulation CF and both Rule 506(c) and Rule 506(b) of Regulation D in the United States and exempt offering regulations in Canada. For details regarding our securities offerings, see belowSales of Securities.

At September 30, 2025, our principal source of liquidity was our unrestricted cash and cash equivalents and short-term investments, which we achieved through our offerings of securities as discussed above. As of September 30, 2025, the Company held $34.5 million in unrestricted cash and cash equivalents, $1.1 million in digital assets, and $1.7 million in investments in short-term treasury notes, compared to $5.8 million in cash and cash equivalents, and $15.9 million held in short-term treasury notes as of

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December 31, 2024. Based on the Company’s current burn rate of $4.7 million per month, we anticipate that the current liquidity together with cash generated from sales of our products will be sufficient to meet our immediate cash needs for 7 months. Short Term: We have advanced in discussions with capital providers, the current plan to address the Company’s liquidity requirements is as follows: 1. The Company intends to enter into an agreement for a $100 million line of credit. The structure of the agreement is similar to a synthetic ATM (at-the-market