Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 582

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 582
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 of Nevada Revised Statute (NRS) 90.9570. The Company denies liability and intends to defend against this claim. Accordingly, the Company has not accrued a loss contingency for this matter. Separate from the claim filed against the Company, the Company has also entered into settlement agreements with various parties who may have been impacted by the former employee. This resulted in the recognition of $2.4 million of legal settlement expenses recorded in General and administrative expenses, settled with 3,043,788 shares of the Company’s Preferred A-1 Stock, during the three months ended June 30, 2025.

F- 83

NOTE 14 — INCOME TAXES

The Company has not recorded any income tax expense for the three and six months ended June 30, 2025 and 2024.

Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

A valuation allowance is required to be established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. A full review of all positive and negative evidence needs to be considered. The Company has established a full valuation allowance against the net deferred tax assets as of June 30, 2025 and December 31, 2024 due to historical losses and uncertainty surrounding the use of such assets.

NOTE 15 — SEGMENTS

The Company operates as one operating segment. The Company’s chief operating decision maker (“CODM”) is its Chief Financial Officer, who performs quarterly reviews of the financial information presented on a consolidated basis. The CODM utilizes the Company’s strategic plan, which includes product development roadmaps and the Company’s long-range financial model, including key inputs for resource allocation. Significant expenses include research and development, sales and marketing, and general and administrative expenses, which are each separately presented on the Company’s Consolidated Statements of Comprehensive Loss. See the unaudited interim condensed consolidated financial statements for other financial information regarding the Company’s single operating segment.

The Company has no significant long-lived assets recognized on the Consolidated Balance Sheets outside of the US jurisdiction.

NOTE 16 — SUBSEQUENT EVENTS

The Company has evaluated subsequent events from June 30, 2025 through August 19, 2025, the issuance date of