Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 401

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 401
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 area, are ready to proceed with their project, and need sitework and installation services. The launch of BOXABL’s dealer portal, combined with the expansion of our Preferred Dealer/Installer network, provides a platform for BOXABL to expand its sales and installation operations throughout the States where our product can be sold. Since launching the BOXABL Directory, BOXABL trained over 80 Dealers/Installers in its network. As BOXABL’s product obtains additional approvals throughout the country, BOXABL expects to utilize these systems to execute additional sales in these territories, with faster ramp up time. Cost of Goods Sold Cost of goods sold were $9.7 million and $2.9 million for the three months ended June 30, 2025 and 2024, respectively. Cost of goods sold consists primarily of the cost of products used in the production of BOXABL’s finished products, inbound and outbound shipping costs, the related labor, and indirect manufacturing overhead costs associated with that production. 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 June 30, 2025 and 2024, consist of the following:

| ​                        
 ​                        | ​              
 (In Thousands) | ​        
 June 30, |     ​ 
  2025 | ​ | ​ |     ​ 
  2024 |
|:-------------------------|:---------------|:---------|------:|:--|:--|------:|
| Direct material/shipping | ​              | $        |   136 | ​ | $ |    29 |
| Direct labor             | ​              |          |   116 | ​ |   |   343 |
| Manufacturing overhead   | ​              |          |  -344 | ​ |   | 2,549 |
| Inventory adjustments    | ​              |          | 9,815 | ​ |   |     — |
| Cost of goods sold       | ​              | $        | 9,723 | ​ | $ | 2,921 |

Our costs of goods sold increased significantly due to inventory adjustments resulting primarily from the write down of 68 units that management determined were obsolete following the inventory slow movement analysis, for which BOXABL determined that it was not cost effective to rework, resulting in an inventory write down of $8.3 million in the three months ended June 30, 202