Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 559

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 559
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 Restricted stock units      |   |       130,805 |   |        53,000 |
| Warrants                    |   |        18,573 |   |        18,322 |
| Preferred stock             |   |     1,315,963 |   |     1,232,666 |
| Potentially dilutive shares |   |     1,511,605 |   |     1,356,064 |

Leases The Company leases some items of property, plant and equipment, including manufacturing and office space. On the lease commencement date, a lease is classified as a finance lease or an operating lease based on the classification criteria of the lease guidance under ASC 842. In accordance with ASC 842, the Company has recorded right-of-use (“ROU”) assets for all of its leased assets classified as operating leases. The Company has no finance leases. The ROU assets were computed as the present value of future minimum lease payments, including additional payments resulting from a change in an index such as a consumer price index or an interest rate, plus any prepaid lease payments minus any lease incentives received. Warranty Provision The Company generally offers its customers a manufacturers’ warranty on Casita products sold for a period of one year. Management records an expense to cost of goods sold for the costs of warranty repairs at the time of sale. Management’s estimate for warranties is based on sales levels and historical costs of providing warranties. As of June 30, 2025 and December 31, 2024, respectively, the Company’s reserve for warranty totaled $594 thousand and $594 thousand, respectively, and is reflected in “accrued expenses and other current liabilities” in the consolidated balance sheets. Recent Accounting Pronouncements As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances. On May 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-04, Compensation — Stock Compensation and Revenue from Contracts with Customers — Clarifications to Share-Based Consideration Payable to a Customer, which requires the Company to account for share-based consideration payable to a Customer as a reduction of the transaction price and a reduction of revenue, unless the payment to the customer is in exchange for a distinct good or service. Under the amendments in this update, revenue recognition will no longer be delayed when an entity grants awards that are not expected to vest. ASU 2025-04 is effective for annual and interim reporting periods beginning after December 15