Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 150

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
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 worthiness.The Company is also exposed to risk from its accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.Customer concentration riskFor the three months ended March 31, 2025, three customers accounted for 17.7%,  14.4% and 10.8% of the Company’s total revenue, respectively. For the three months ended March 31, 2024, three customers accounted for 18.3%, 14.4% and 13.4% of the Company’s total revenue, respectively. No other customer accounted for more than 10% of the Company’s revenue for the three months ended March 31, 2025 and 2024.As of March 31, 2025, two customers accounted for 28.3%,and 11.6% of the total balance of accounts receivable, respectively. As of December 31, 2024, two customers accounted for 29.4% and 11.4% of the total balance of accounts 

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receivable, respectively. No other customer accounted for more than 10% of the Company’s accounts receivable as of March 31, 2025 and December 31, 2024.Vendor concentration riskFor the three months ended March 31, 2025, Tangshan Huida Ceramic Group Co., Ltd (“Huida”) accounted for 61.6% of the Company’s total purchases, respectively. For the three months ended March 31, 2024, Huida accounted for 52.5% of the Company’s total purchases, respectively. No other supplier accounted for more than 10% of the Company’s total purchases for the three months ended March 31, 2025 and 2024.As of March 31, 2025, Huida accounted for 68.8% of the total balance of accounts payable. As of December 31, 2024, Huida accounted for 69.6% of the total balance of accounts payable. No other supplier accounted for more than 10% of the Company’s accounts payable as of March 31, 2025 and December 31, 2024.

Note 14 — Commitments and contingencies

LitigationFrom time to time, the Company is involved in legal and regulatory proceedings that are incidental to the operation of