Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 434

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 434
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. Manufacturing overhead, consists primarily of the allocation of indirect labor, rent and lease expense, and depreciation expense. Other allocations to manufacturing overhead included indirect supplies, scrapped material, and maintenance costs. Cost of goods sold for the three months ended September 30, 2025 and 2024, consist of the following:

| ​                        
 ​                        | ​              
 ​ ​ ​          
 (In Thousands) | ​             
 September 30, 
 ​ ​ ​         |     ​ 
  2025 | ​ | ​     
 ​ ​ ​ |     ​ 
  2024 |
|:-------------------------|:---------------|:--------------|------:|:--|:------|------:|
| Direct material/shipping | ​              | $             |   102 | ​ | $     |   371 |
| Direct labor             | ​              |               |    87 | ​ |       |   374 |
| Manufacturing overhead   | ​              |               |     — | ​ |       | 2,574 |
| Inventory adjustments    | ​              |               | 1,745 | ​ |       |     — |
| Cost of goods sold       | ​              | $             | 1,934 | ​ | $     | 3,319 |

Manufacturing overhead costs, consisting primarily of the allocation of indirect labor, rent and lease expense, indirect supplies, scrap material and maintenance costs are included in cost of goods sold. Manufacturing overhead of $1.7 million in the three months ended September 30, 2025, was applied as an inventory valuation adjustments within costs of goods sold to adjust the excess carrying value of finished goods inventory to net realizable value. The reduction of manufacturing overhead costs compared to the 2024 period was due to lower consumption of indirect materials and supplies consumed during production, lower indirect labor costs from a smaller workforce, and no stock based compensation expense recognized during the three months ended September 30, 2025, compared to the recognition of $671,000 of stock-based compensation expense in the three months ended September 30, 2024. While we estimate that we could produce and deliver 1,200 Casitas per year at full factory capacity, or 300 Casitas per quarter, we only produced 29 Casitas and 50 Casitas in the three months ended September 30, 2025 and 2024, respectively.

232

Operating Expenses Operating expenses for the three months ended September 30, 2025 and 2024, consisted of