Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 332

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 332
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 stockholders having the right to exchange their shares of Common Stock for cash, securities or other property. Anticipated Accounting Treatment The Business Combination will be accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, FGMC, who is the legal acquirer, will be treated as the “acquired” company for accounting purposes and BOXABL will be treated as the accounting acquirer. Accordingly, the Business Combination will be treated as the equivalent of BOXABL issuing shares at the closing of the Business Combination for the net assets of FGMC as of the closing date, accompanied by a recapitalization. The net assets of FGMC will be stated at historical cost, with no goodwill or other intangible assets recorded. BOXABL has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances:

| ● | BOXABL stockholders will have the majority voting interest in the Combined Company under both the no redemption and maximum redemption scenarios. |

| ● | The Combined Company board of directors will be composed as follows: BOXABL will have the right to designate four (4) directors and FGMC will have the right to designate one (1) director (a majority of the board who will qualify as independent directors under the Securities Act and the Nasdaq rules); |

| ● | BOXABL senior management will be the senior management of the Combined Company post-merger; |

| ● | The business of Combined Company will comprise the ongoing operations of BOXABL; and |

| ● | BOXABL is the larger entity, in terms of substantive assets. |

Basis of Pro Forma Presentation The unaudited pro forma condensed combined financial information has been prepared, assuming three redemption scenarios as follows:

| ● | Scenario 1 — Assuming No Additional Redemptions: The “No Redemption Scenario” assumes that no holders of FGMC Public Shares exercise their right to have their FGMC Public Shares redeemed for their pro rata share of the Trust Account. |

| ● | Scenario 2 — 50% Redemption Scenario: The “50% Redemption Scenario” assumes that 4,000,000 FGMC Public Shares are redeemed, resulting in an aggregate cash payment of approximately $80.85 million out of the Trust Account based on an assumed redemption price of $10.23 per share. |

| ● | Scenario 3 — Maximum Redemption Scenario: The “Maximum Redemption Scenario” assumes that all 8,800,000 FGMC Public Shares & Rights are redeemed, resulting