Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 166

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part II, Item 8
Chunk 166
---
 taxes$(214,576)$(298,415)$(954,106)$(276,126)Reconciliations between taxes at the U.S. federal income tax rate and taxes at the Company’s effective income tax rate on earnings before income taxes are as follows:For the Six Months EndedJune 30,20252024%%Federal statutory rate 21.0 21.0 Increase (decrease) in tax rate resulting from:State and local income taxes, net of federal benefit 5.2 4.3 Foreign operations 1.0 (1.6)Permanent items(0.4)(10.6)Deferred adjustments5.4 17.9 Others (1.8)2.0 Effective tax rate30.4 33.0 

24

The following is a summary of the components of the net deferred tax assets and liabilities recognized in the consolidated balance sheets:As ofJune 30, 2025As ofDecember 31, 2024USDUSDDeferred tax assets  Allowance for credit losses$59,522 $45,859 Other reserve 114,198 127,515 Accrued expenses183,280 152,600 Lease liability1,271,517 1,464,256 Charitable contributions 523 331 Business interest limitation 783,678 634,794 Net operating loss – federal 1,677,197 976,500 Net operating loss – state476,007 328,861 Other140,850 186,554 Total deferred tax assets 4,706,772 3,917,270 Less: valuation allowance— — Net deferred tax assets4,706,772 3,917,270 Deferred tax liabilities  Fixed assets1,247,413 1,416,178 Intangibles(208,839)(164,493)Total deferred tax liabilities 1,038,574 1,251,685 Deferred tax assets, net of deferred tax liabilities$3,668,198 $2,665,585 The deferred tax assets related to the Company’s net operating losses of $15,771,679 (Federal $7,986,647 and States $7,785,032) and $10,056,026 (Federal $4,649,994 and States $5,406,032) as of June 30, 2025 and December 31,