Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 126

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 126
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 see “ U.S. Federal Income Tax Considerations.” 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. 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 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 and certain waiting period requirements have been satisfied. The Business Combination is subject to these requirements and may not be completed until the expiration of a 30-day waiting period following the two filings of the required Notification and Report Forms with the Antitrust Division and the FTC or until early termination is granted. On August 25, 2025, FGMC and BOXABL filed the required forms under the HSR Act with respect to the Business Combination with the Antitrust Division and the FTC. On September 11, 2025, the FTC granted early termination of the waiting period effective as of that date. At any time before or after consummation of the Business Combination, notwithstanding termination of the respective waiting periods