Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 565

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 565
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5 and 2024, the Company recognized $1,300 thousand and $0, respectively, in inventory valuation adjustments within cost of goods sold related to adjusting the carrying value of finished goods inventory to its net realizable value. NOTE 6 — LOAN RECEIVABLES, NET The Company has originated two loan receivables comprised of formal credit sales in transactions with its customers. Based on the loan terms, $903 thousand of these loan receivables have been classified as long-term and $451 thousand of these loan receivables have been classified as short-term, respectively. The current balance of loan receivables includes $47 thousand of interest receivable on loans and $404 thousand related to the loan receivable outstanding balance. A portion of the loan receivable estimated to be uncollectible is recorded as a credit loss provision of $375 thousand, recognized as a contra receivable balance in accordance with ASC 326 (ASU 2016-13), Current Expected Credit Losses (“CECL”) as of June 30, 2025. The Company has initiated loans to specific customers to assist them in their financing. The loans were negotiated on an arm’s length basis, accrue interest income, and were originated at market rates. Accordingly, there are no ASC 606 impacts related to a financing component embedded in the loan. Considering that the Company does not have a significant portfolio of loans, or any loss history, it does not have any basis to establish any anticipated expected credit loss. The Company has an on-going business relationship with these Customers and expects to deliver additional units in the future. An aging analysis was performed using historical and forecasted credit loss rates across various delinquency buckets, resulting in a total expected credit loss estimate of $75 thousand, which was recorded as a CECL reserve as of June 30, 2025. In addition, the CECL reserve includes specific reserves of $300 thousand related to two delinquent loans. Previously, the Company had concluded that no CECL reserve was required as of December 31, 2024.

| ​​                           
 Allowance for Credit Losses  
 Balance as of March 31, 2025 | ​ 
 ​ | ​ 
 ​ |   ​ 
   ​ 
   — |
|:-----------------------------|:--|:--|----:|
| Provision for credit losses  | ​ |   | 375 |
| Write-offs                   | ​ |   |   — |
| Recoveries                   | ​ |   |   — |
|