Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 89

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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. The CTBC Credit Line will bear interest at a rate of “Base Rate”, which is based on monthly or quarterly Taipei Interbank Offered in effect from time to time, plus 120 base points and handling fees, unless otherwise agreed to by the parties. The CTBC Credit Line is unsecured and is fully guaranteed by the Company and partially guaranteed by Liang Chou Chen. Borrowings under this line of credit amounted to $1.8 million and $2.3 million as of June 30, 2025 and December 31, 2024, respectively. 

The following table summarizes the key components of our cash flows for the six months ended June 30, 2025 and 2024.

For the Six Months Ended June 30,20252024USDUSDNet cash provided by (used in) operating activities$195,667 $(7,127,778)Net cash used in investing activities(631,150)(1,859,419)Net cash (used in) provided by financing activities(1,943,867)2,733,024 Effect of exchange rate fluctuation on cash340,307 (215,976)Net changes in cash(2,039,043)(6,470,149)Cash, beginning of period4,558,160 7,777,241 Cash, end of period$2,519,117 $1,307,092 

Operating Activities

Net cash provided by operating activities was $0.2 million for the six months ended June 30, 2025, compared to net cash used of $7.1 million in the prior-year period. This improvement was driven by favorable working capital movements, including a $3.9 million decrease in accounts receivable and a $1.3 million reduction in inventory. A $2.1 million increase in accounts payable also supported operating cash flow. These inflows helped offset cash usage related to the $2.2 million net loss, payments on lease obligations, and reductions in accrued expenses. Non-cash items such as $1.1 million of amortization, $0.3 million of depreciation, and $0.2 million of share-based compensation contributed to narrowing the gap between the net loss and operating cash flow. Additionally, a higher deferred tax benefit of $1.0 million reduced the non-cash tax burden during the period.

Investing Activities

Net cash used in investing activities totaled $0.6 million for the six months ended June 30