Company: FGMCU
Filing Date: 2025-09-18
Form Type: S-4
Source: 0001104659-25-091249
Chunk: 518

Company: FG Merger II Corp.
Filing Date: 2025-09-18
Form: S-4
Chunk 518
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 — GOING CONCERN These consolidated financial statements have been prepared under the assumption that the Company will be able to continue as a going concern. The going concern assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. However, substantial doubt about the Company’s ability to continue as a going concern is probable. Primarily due to limited sales associated with delays in obtaining US statewide modular approvals, the Company reported a net loss of $50,950 thousand, an operating cash outflow of $38,400 thousand for the year ended December 31, 2024. At December 31, 2024 the Company had an accumulated deficit of $718,435 thousand. Absent any other action, the Company will require additional liquidity to continue its operations over the next 12 months. The continuing viability of the Company and its ability to continue as a going concern is dependent on the Company being successful in its continued efforts in growing its revenue and/or accessing additional sources of capital. Management’s plan to address this need includes (a) continued exercise of tight controls to conserve cash, (b) accelerating sales of Casitas to generate revenue, and (c) raising funds through equity financing. The Company anticipates current capital on hand and expected future funding will be sufficient to fund the Company’s operations in excess of twelve months. The Company is currently selling shares of its preferred stock through Regulation A and Regulation D offerings in the United States. Management believes that the actions presently being taken by the Company will provide sufficient liquidity for the Company to continue to execute its business plan over the next year. However, there can be no assurances that management’s plans will be achieved. NOTE 4 — INVESTMENTS As of December 31, 2024 and December 31, 2023, investments in securities consists of U.S. Treasury Notes carried at fair value and amortized cost, respectively, consisted of the following:

| ​                                             | ​ |             ​ |      ​ | ​ |            ​ |      ​ |
| ​                                             |   | Balance as of |        |   |              |        |
| ​                                             |   |  December 31, |        |   | December 31, |        |
| (In Thousands)                                | ​ |          2024 |        | ​ |         2023 |        |
| Investments in short-term U.S. Treasury Notes | ​ |             $ | 15,943 | ​ |            $ | 27,685 |
| Investments in long-term U