Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 136

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 136
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 basis in the shares of BOXABL Common Stock exchanged in the Business Combination. Gain or loss, as well as the holding period, will be determined separately for each block of shares (i.e., shares acquired at the same cost in a single transaction) exchanged. Such gain or loss will be long-term capital gain or loss, provided that the U.S. holder’s holding period for such shares is more than one year at the time of the exchange.

For a more detailed discussion of the U.S. federal income tax consequences of the Business Combination, see“U.S. Federal Income Tax Considerations — U.S. Federal Income Tax Considerations of the Business Combination for holders of BOXABL Common Stock.”

Expected Accounting Treatment

The Business Combination will be accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, FGMC, who is the legal acquirer, will be treated as the “acquired” company for accounting purposes and BOXABL will be treated as the accounting acquirer. Accordingly, the Business Combination will be treated as the equivalent of BOXABL issuing shares at the closing of the Business Combination for the net assets of FGMC as of the closing date, accompanied by a recapitalization. The net assets of FGMC will be stated at historical cost, with no goodwill or other intangible assets recorded.

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BOXABL has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances:

| ● | BOXABL stockholders will have the majority voting interest in the Combined Company under both the no redemption and maximum redemption scenarios. |

| ● | The Combined Company board of directors will be composed as follows: BOXABL will have the right to designate four (4) directors and FGMC will have the right to designate one (1) director (a majority of the board who will qualify as independent directors under the Securities Act and the Nasdaq rules); |

| ● | BOXABL senior management will be the senior management of the Combined Company post-merger; |

| ● | The business of the Combined Company will comprise the ongoing operations of BOXABL; and |

| ● | BOXABL is the larger entity, in terms of substantive assets. |

Regulatory Matters Under the HSR Act and the rules that have been promulgated thereunder by the Federal Trade Commission (“ FTC”), certain transactions may not be consummated unless information has been furnished to the Antitrust Division of the Department of Justice (the “ Antitrust Division”) and the FTC