Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 183

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 183
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 adoption. The Group does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its consolidated
financial position, results of operations, cash flows or disclosures.

F-19

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U. S. dollars, except for share and per
share data, or otherwise noted)

3. ACCOUNTS
AND NOTES RECEIVABLE, NET

Accounts receivable and notes receivable, net
consisted of the following:

                                          As of December 31,                                          
                                          2024                                   2023                 
 ──────────────────────────────────────────────────────────────────────────────────────────────────────
  Accounts receivable, gross              $                       5,558,022      $         4,955,083  
  Notes receivable                                                   13,864                   22,463  
  Allowance for credit losses                                     ( 277,798                ( 245,888  
  Accounts and notes receivable, net      $                       5,294,088      $         4,731,658  

The changes in the provision for credit losses
are as follows:

                                            For the Years Ended                                        
                                            December 31,                                               
                                            2024                                  2023                 
 ───────────────────────────────────────────────────────────────────────────────────────────────────────
  Balance at the beginning of the year      $                        245,888      $           400,797  
  Additions                                                           34,730                    1,652  
  Reverse                                                                  -                ( 154,929  
  Exchange rate difference                                           ( 2,820                  ( 1,632  
  Balance at the end of the year            $                        277,798      $           245,888  

4. INVENTORIES, NET

Inventories consisted of the following:

                                     As                                                          
                                     of December 31,                                             
                                     2024                                  2023                  
 ─────────────────────────────────────────────────────────────────────────────────────────────────
  Raw material                       $                        920,418      $          1,349,217  
  Work-in-process                                             187,755                   224,913  
  Finished goods                                           14,775,666                14,531,636  
  Inventories                                              15,883,839                16,105,766  
  Inventory valuation allowance                           ( 1,352,998                 ( 900,142  
  Inventories