Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 550

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 550
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, investments in digital assets are valued as Level 1 fair value financial instruments. See Note 12 — Stockholders Equity — Stock Based Compensation. |

Restricted Cash and Deposits On June 1, 2023, the Company was required to make a security deposit related to the expansion of premises of $3,714 thousand pursuant to the terms of the lease agreement with the landlord. The Company re-allocated funds from its cash and cash equivalent balance and restricted these funds to act as the security deposits. The interest earned on this restricted cash account is also restricted for use by the landlord until the security deposit is settled. The interest rate on the security deposit was 3.15% as of June 30, 2024. On January 31, 2024, the Company also paid an additional security deposit of $259 thousand for additional tenant improvements to its existing leased facility. On June 12th, 2025, the Company received $245 thousand, as a partial refund of its security deposit. As of June 30, 2025 and December 31, 2024, the Company held $3,924 thousand and $3,878 thousand, respectively, as restricted cash. Accounts Receivable Accounts receivable consists of transactions with customers, associated with the sales of Casitas. The portion of the accounts receivable estimated to be uncollectible is recorded as a credit loss provision, a contra receivable balance in accordance with ASC 326 (ASU 2016-13), Current Expected Credit Losses (“CECL”). As of the periods ended June 30, 2025 and December 31, 2024, management determined that it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the goods and services transferred to customers. As such, the Company does not require any allowance for credit losses associated with the accounts receivable balance as of June 30, 2025 and December 31, 2024.

F- 63

#### Investments in Marketable Debt Securities
The Company generally invests its excess cash into marketable debt securities, which consist of short-term and long-term investments in U.S. treasury bills and notes that were classified as held-to-maturity at June 30, 2024. The Company prospectively re-classified its short-term investments in U.S. treasury bills and notes as available-for-sale debt securities during the quarter ended December 31, 2024. Available-for-sale debt securities are financial instruments that are