Company: FGMCU
Filing Date: 2025-12-30
Form Type: S-4/A
Source: 0001104659-25-124947
Chunk: 438

Company: FG Merger II Corp.
Filing Date: 2025-12-30
Form: S-4/A
Chunk 438
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 2025. In addition, during the nine months ended September 30, 2025, the Company recognized $5.2 million in inventory valuation adjustments within costs of goods sold related to adjusting the excess carrying value of its finished goods inventory to its net realizable value. See Note 5 to our unaudited condensed consolidated financial statements for more information regarding inventory valuation adjustments. We continue to work to align production activity with delivery schedules. We produced 64 Casitas in the nine months ended September 30, 2025 and 104 Casitas in the nine months ended September 30, 2024. Manufacturing overhead reflects the allocation of indirect labor, rent and lease expense, indirect supplies, scrap material and maintenance costs. Manufacturing overhead, which was applied as an inventory valuation adjustments within costs of goods sold to adjust the excess carrying value of finished goods inventory to net realizable value, declined due to lower consumption of indirect materials and supplies consumed during production, lower indirect labor costs from a smaller workforce. Reflected in manufacturing overhead in the 2025 period is the recapture of $187,000 of stock-based compensation expense resulting from terminations, compared to the recognition of $2.3 million of stock-based compensation expense within manufacturing overhead in the 2024 period. Operating Expenses Operating expenses for the nine months ended September 30, 2025 and 2024, consisted of the following:

| ​                          
 ​                          | ​              
 ​ ​ ​          
 (In Thousands) | ​             
 September 30, 
 ​ ​ ​         |      ​ 
   2025 | ​ | ​     
 ​ ​ ​ |      ​ 
   2024 |
|:---------------------------|:---------------|:--------------|-------:|:--|:------|-------:|
| General and administrative | ​              | $             | 11,995 | ​ | $     | 10,017 |
| Sales and marketing        | ​              |               | 24,957 | ​ |       |  7,162 |
| Research and development   | ​              |               |  3,055 | ​ |       |  5,966 |
| Impairment loss            | ​              |               |      — | ​ |       | 12,237 |
| Total Operating expenses   | ​              | $             | 40,007 | ​ | $     | 35,382 |

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General and administrative expenses consist of compensation and benefits for various positions including company administration, rents, shop supplies