Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 108

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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852 Total prepayments and other assets$2,425,406 $2,091,407 

Note 6 — Property and equipment, net

Property and equipment, net consist of the following:As ofJune 30, 2025As ofDecember 31, 2024USDUSDBuilding$946,066 $946,066 Leasehold Improvements2,329,581 1,919,687 Machinery and equipment3,723,159 3,549,167 Furniture and fixtures277,268 274,994 Vehicles147,912 147,912 Molds26,377 26,377 Subtotal7,450,363 6,864,203 Less: accumulated depreciation(3,583,803)(3,311,647)Prepayment for purchase of equipment and construction-in-progress13,836 81,784 Total$3,880,396 $3,634,340 Depreciation expenses amounted to $163,931 and $111,568 for the three months ended June 30, 2025 and 2024 respectively, and $311,218 and $199,439 for the six months ended June 30, 2025 and 2024, respectively. Depreciation expenses were included in general and administrative expenses on the unaudited condensed consolidated statements of operations and comprehensive loss.

Note 7 — Leases

The Company has operating leases primarily for corporate offices, warehouses and showrooms. As of June 30, 2025, the Company’s leases have remaining lease terms up to 9.1 years.During the six months ended June 30, 2025, the Company terminated the lease agreement related to its warehouse facility in Indiana as part of a strategic decision. As a result of the early termination, the Company derecognized the related right-of-use asset and lease liability associated with the Indiana facility. The lease termination did not result in any significant gain or loss for the period. The Company also entered into two new lease agreements for office and warehouse spaces in Portage, Indiana, with lease terms through January 2032.For the three months ended June 30, 2025 and 2024, total lease expenses were $625,743 and $702,507, respectively. For the six months ended June 30, 2025 and 2024, total lease expenses were $1,296,358 and $1,399,