Company: FGI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001628280-25-015656
Chunk: 121

Company: FGI Industries Ltd.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 121
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 matures at the discretion of HSBC Canada upon 60 days’ notice.

FGI Canada Ltd. also has a revolving foreign exchange facility with RBC of up to a permitted maximum of USD3.0 million. The advances are available to purchase foreign exchange forward contracts from time to time up to six months, subject to an overall maximum aggregate USD Equivalent outstanding face value not exceeding USD3.0 million.

37

CTBC Credit Facility

On January 25, 2024, FGI International entered into an omnibus credit line (the “CTBC Credit Line”) with CTBC Bank Co., Ltd. (“CTBC”). Under the CTBC Credit Line, FGI International may borrow, from time to time, up to $2.3 million, with borrowings limited to 90% of FGI International’s export “open account” trade receivables. 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 $2.3 million and $0 as of December 31, 2024 and 2023, respectively. 

On January 14, 2025, FGI International and CTBC agreed to increase the CTBC Credit Line to $3.0 million.

Cash Flows

The following table summarizes the key components of our cash flows for the years ended December 31, 2024, and 2023.

For the Years Ended December 31,20242023USDUSDNet cash (used in) provided by operating activities$(7,425,317)$2,212,823 Net cash used in investing activities(2,875,816)(1,765,738)Net cash provided by (used in) financing activities7,543,192 (2,835,876)Effect of exchange rate fluctuation on cash(461,140)98,604 Net changes in cash(3,219,081)(2,290,187)Cash, beginning of year7,777,241 10,067,428 Cash, end of year$4,558,160 $7,777,241 

Operating Activities

Net cash used in operating activities was approximately $7.