Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 437

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 437
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 was generated by the sale of 8 Casitas delivered to 7 customers, as well as from the sale of services to our dealers, merchandise sales, and material sales during the nine months ended September 30, 2025. This is in comparison to the sale of 18 Casitas delivered to 6 customers during the nine months ended September 30, 2024. The decline resulted from the overhaul of Company’s the sales department driven by a change in the Company’s go to market strategy, as discussed above. During the nine months ended September 30, 2025, revenues from Casita sales to 7 customers was approximately 82% of the Company’s total revenues. Significant customers included Pinnacle Construction, American Home Source, and Instant Living, representing 19%, 11%, and 11%, of revenues for the nine months ended September 30, 2025, respectively. Cost of Goods Sold Cost of goods sold were $13.8 million and $10.7 million for the nine-months ended September 30, 2025 and 2024, respectively. Cost of goods sold for the nine months ended September 30, 2025 and 2024, consist of the following:

| ​                        
 ​                        | ​              
 ​ ​ ​          
 (In Thousands) | ​             
 September 30, 
 ​ ​ ​         |      ​ 
   2025 | ​ | ​     
 ​ ​ ​ |       ​ 
    2024 |
|:-------------------------|:---------------|:--------------|-------:|:--|:------|--------:|
| Direct material/shipping | ​              | $             |    272 | ​ | $     |     623 |
| Direct labor             | ​              |               |    232 | ​ |       |     785 |
| Manufacturing overhead   | ​              |               |   -187 | ​ |       |   9,243 |
| Inventory adjustments    | ​              |               | 13,458 | ​ |       |       — |
| Cost of goods sold       | ​              | $             | 13,775 | ​ | $     | 10, 651 |

Our cost of goods sold increased significantly due to inventory adjustments related primarily to the write down of 68 units that management determined were obsolete following the inventory slow movement analysis, for which the Company determined that it was not cost effective to rework, resulting in an inventory write down of $8.4 million during the second quarter of