Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 554

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 554
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 greater than the average cost basis of the Company’s bitcoin holdings at such reporting date, and any subsequent increases or decreases in the market value of bitcoin increases or decreases the deferred tax liability. In determining the gain (loss) to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the specific bitcoin sold immediately prior to sale. The Company’s Bitcoin purchased for investment purposes are initially recorded at cost, inclusive of transaction costs and fees. Subsequently, the Company remeasures its Bitcoin investment at fair value at the end of each reporting period with changes recognized in net income through other (expense) income, net on the Company’s Condensed Consolidated Statements of Comprehensive Loss. As of June 30, 2025, the Company held 10 Bitcoins with a cost basis of $1,078 thousand and a fair value of $1,071 thousand.

F- 65

The following table summarizes the Company’s digital asset purchases, losses (gains) on digital assets, for the three months ended:

| ​                                         
 ​                                         
 (In Thousands, except number of Bitcoins) | ​ 
 ​ | ​                          
 Six and Three Months Ended 
 June 30, 2025              |     ​ | ​ | ​             
 June 30, 2024 | ​ |
|:------------------------------------------|:--|:---------------------------|------:|:--|:--------------|:--|
| Bitcoins Purchased                        |   | ​                          |    10 |   | ​             | — |
| Digital asset purchases                   | ​ | $                          | 1,078 | ​ | $             | — |
| Unrealized gain (loss) on digital assets  | ​ |                            |    -7 | ​ |               | — |
| Digital asset carrying value              | ​ | $                          | 1,071 | ​ | $             | — |

The Company did not sell any of its bitcoins during the three and six months ended June 30, 2025 and 2024, respectively. Intangible Assets The Company has intangible assets that are amortized over the respective estimated lives on a straight-line basis unless the lives are determined to be indefinite and reviewed for impairment whenever events or other changes in circumstances indicate that the carrying amount may not be recoverable. The Company’s intangible assets include intellectual property associated with Patents and Trademarks that are amortized over their estimated useful life of 14 years, or the stated expiration date, whichever is more determinable. The Company also has