Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 117

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 2024, respectively. The Federal Net Operating losses have no expiration date. The States Net Operating losses have either 20 years or no expiration date. The Company had no material unrecognized tax benefits at June 30, 2025 or December 31, 2024. The Company has not taken any tax positions for which it is reasonably possible that unrecognized tax benefits will significantly increase within the next 12 months.On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The Company is currently evaluating the impact on its consolidated financial statements and will recognize the income tax effects, if any, in the consolidated financial statements beginning in the three-month period ending September 30, 2025.

Note 12 — Related party transactions and balances

Sales to a related partyName of Related PartyRelationshipNature ofTransactionsFor the Three Months Ended June 30,For the Six Months EndedJune 30,2025202420252024USDUSDUSDUSDForemost Worldwide Co., Ltd.An entity under common controlSales$624,675$—$1,360,236$—$624,675$—$1,360,236$—

25

Purchases from related partiesName of Related PartyRelationshipNature ofTransactionsFor the Three Months Ended June 30,For the Six Months EndedJune 30,2025202420252024USDUSDUSDUSDFocal Capital Holding LimitedAn entity under common controlPurchases$1,846,438 $1,177,582 $3,349,172 $2,754,804 Foremost Worldwide Co., Ltd.An entity under common controlPurchases1,310,711 2,401,118 2,654,821 3,954,057 Rizhao Foremost Woodwork Manufacturing Co., Ltd.An entity under common controlPurchases55,185 7,045 204,807 24,069 F.P.Z. Furniture (Cambodia) Co., Ltd.An entity under common controlPurchases11,759 — 11,759 — $3,224,093 $3,585,745 $6,220,559 $6,732,930 The ending balances of