Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 427

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 427
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 2021, we expanded our production capacity by signing leases for additional Nevada facilities (“ Factory Building 2”) in June 2022 and (“ Factory Building 3”) in May 2023, respectively. While our growth has mainly been funded by our capital raising activities as described below in “Liquidity,” we anticipate our increased manufacturing capacity will allow us to build Boxes more efficiently, and, in doing so generate additional revenue and profit in the future. We continue to improve our workforce, including the expansion of our business development and sales teams to focus and better support the outreach to B2B, B2C, and B2G sales channels, respectively. The majority of US states have a statewide modular program which requires approval of a specific product prior to the product being able to be sold and installed within the state. The requirements to obtain these approvals vary across each state, and the approval process has resulted in delays in BOXABL’s ability to deliver the product across the country, which has impacted the timing and amount of BOXABL’s revenues. BOXABL has obtained state modular approvals under state-wide modular housing programs in New Mexico, California, Nevada and South Carolina. The approvals were obtained as follows:

| ● | During May 2024, we received approval to sell Casitas as Modular homes in California in certain climate zones. |

| ● | During July 2024, we received approval to sell Casitas under the Statewide Modular Program in New Mexico. |

| ● | During January 2025, we received approval to sell Casitas in Nevada under the Residential building code. |

| ● | During January 2025, we received approval to sell Casitas under the Statewide Modular Program in all climate zones in California. |

| ● | During June 2025, we received approvals of plan sets for the Casita in South Carolina under the Statewide Modular Program, and our manufacturers license; factory certification is pending and BOXABL expects this within the next 6 months. |

| ● | During November 2025, we received approval to sell the two-bedroom Casita model under the Statewide Modular Program in California. |

BOXABL had originally obtained approval for its Casita in Arizona in December 2023. However, the Arizona Department of Housing revoked this approval in May 2024 due to installation issues identified at one customer site in Arizona. BOXABL has assessed that these issues resulted from improper installation rather than BOXABL’s product and it is in active discussions with officials in Arizona to resolve the matter. New sales within