Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 436

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 436
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 expenses in the three months ended September 30, 2025 compared to prior year period. Research and development activity is essential to testing and developing BOXABL products and involves significant costs to obtain permits and approvals. These costs included test raw material used in production and researching industry standards and regulations. Research and development costs declined as the Company succeeded in obtaining state approvals under modular housing programs in several states. Following BOXABL obtaining California statewide approval for the Casita in all climate zones in January 2025, we expect to focus future research and development efforts on expanding the current generation product offering (1, 2, & 3-bed versions of the Casita), our Phase 2 Modular Building System, Sanctuary, and other new products like Baby Box. Stock-based Compensation Expense BOXABL recognizes stock-based compensation expense based on fair value on the date of grant and recognized over the associated vesting periods. Vesting of RSU awards is generally subject to a 3-year service period and, as of October 18, 2024, also subject to a performance condition. Accordingly, stock-based compensation is recognized upon satisfaction of the service and performance condition. In the case of options, BOXABL uses the Black-Scholes pricing model to estimate the fair value of options on the date of grant that are then expensed on a straight-line basis over the vesting period. BOXABL accounts for forfeitures as they occur in the year of forfeiture and share-based compensation expense is adjusted accordingly. For the three months ended September 30, 2025 and 2024, the Company recaptured $13,000 and recognized $1.8 million in stock-based compensation, respectively. The decrease is attributable to employee forfeitures upon terminations in 2025, offset by the vesting of stock options under the Company’s Amended 2021 stock incentive plan. See “ Note 12. Stockholders’ Equity – Stock-based Compensation” for further discussion. Total Other Income For the three months ended September 30, 2025 and 2024, our total other income remained relatively flat at $477,000 for the three months ended September 30, 2025, as compared to $480,000 in the prior period.

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Nine Months Ended September 30, 2025 Compared with the Nine Months Ended September 30, 2024 Revenues Our gross revenues for the nine-months ended September 30, 2025 and 2024 were $588,000 and $1,562,000, respectively. Revenue