Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 435

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 435
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 the following:

| ​                          
 ​                          | ​              
 ​ ​ ​          
 (In Thousands) | ​             
 September 30, 
 ​ ​ ​         |     ​ 
  2025 | ​ | ​     
 ​ ​ ​ |      ​ 
   2024 |
|:---------------------------|:---------------|:--------------|------:|:--|:------|-------:|
| General and administrative | ​              | $             | 4,250 | ​ | $     |  2,445 |
| Sales and marketing        | ​              |               | 3,465 | ​ |       |  2,101 |
| Research and development   | ​              |               | 1,796 | ​ |       |  2,387 |
| Impairment loss            | ​              |               |     — | ​ |       |    117 |
| Total Operating expenses   | ​              | $             | 9,511 | ​ | $     | 7, 050 |

General and administrative expenses consist of compensation and benefits for various positions including company administration, rents, shop supplies, and utilities. The increase in general and administrative expenses was primarily related to the addition of $1.3 million of legal settlement expense reflecting the value of Series A-1 Preferred Stock issued in the settlements, higher third party legal costs related to the proposed Mergers and related preparatory work as well as additional compensation and benefits for new staff in IT, Legal, and Accounting. Offsetting this increase was lower compensation expense due to reduced headcount overall as well as $78,000 of stock-based compensation recaptured in general and administrative expenses in the three months ended September 30, 2025, compared to $429,000 of stock-based compensation expense recognized in the three months ended September 30, 2024. As we expand the Company’s production capacity, we generally expect these expenses to decrease on a per unit basis, though they may increase somewhat upon the consummation of the transactions contemplated by the Merger Agreement. We also incurred higher sales and marketing expenses in the three months ended September 30, 2025, offset by a slight decrease in research and development expenses. Sales and marketing expenses generally consist of advertising and promotions. Starting in 2024 and increasing in 2025, the Company undertook significant new advertising campaigns to refine the marketing of the Company’s products focused on generating sales activity, as well as advertising to customers, leading to a significant increase in sales and marketing