Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 12

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 2
Chunk 12
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 the discretion of RBC upon 60 days’ notice.

FGI Canada 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.

36

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