Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 408

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 408
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 capital as inventory balances increased. Investing Activities Primary investing activities included purchase of property, equipment, leasehold improvement, payment of security deposit for our factory and other facility, and acquisition and sales of short-term and long-term investments. The increase in cash flows provided

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by investing activities was due to a sales and maturities of investments (U.S. Treasuries) during the first quarter of 2025 being slightly higher than the prior comparable quarter as well as purchases of investments in the 2024 period that did not recur in the 2025 period. Financing Activities Primary sources of our financing activities included net proceeds from issuance and sales of A-2 and A-3 Preferred Stock. This also includes proceeds received in advance of security issuance, which is included within BOXABL’s subscription liability. Inventory Our physical assets decreased with inventory of $16.5 million as of June 30, 2025, related to 348 inventory units, which is comprised of $6.5 million related to 126 Casitas in finished goods and $7.2 million related to 222 work-in-process units. This compares to $24.3 million in inventory as of December 31, 2024, primarily comprised of 397 Casitas classified as finished goods. During the six months ended June 30, 2025, BOXABL decided to rework certain of its existing units to meet California modular specifications so that these units are able to be sold in California, as discussed in Note 5 of our unaudited condensed consolidated financial statements. As a result, in the second quarter of 2025, approximately $7.1 million of inventory was reclassified from finished goods to work-in-process on the consolidated balance sheet. The decline in BOXABL’s June 30, 2025 total inventory balance mainly relates to the write down of 68 units that had been held in inventory for an extended time period and for which BOXABL determined that it was not cost effective to rework. Subsequent to June 30, 2025 and through August 19, 2025, we delivered 1 additional Casita. Property, Plant and Equipment Property, Plant and Equipment decreased to $8.1 million as of June 30, 2025 compared to $8.9 million as of December 31, 2024 primarily resulting from depreciation of machinery and equipment at our manufacturing facility. Sales of Securities During the six months ended June 30, 2025 and 2024, BOXABL conducted offerings under