Company: FGI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052375
Chunk: 119

Company: FGI Industries Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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 (Federal $4,649,994 and States $5,406,032) as of September 30, 2025 and December 31, 2024, respectively. The federal net operating losses have no expiration date. The states net operating losses have either 20 years or no expiration date. The Company had no material unrecognized tax benefits at September 30, 2025 or December 31, 2024. The Company has not taken any tax positions for which it is reasonably possible that unrecognized tax benefits will significantly increase within the next 12 months.On July 4, 2025, President Trump signed into law the legislation commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). The OBBBA includes various provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The OBBBA legislation is not expected to have a material impact on our effective tax rate, deferred tax position, or results of operations in 2025.

Note 12 — Related party transactions and balances

Sales to a related partyName of Related PartyRelationshipNature ofTransactionsFor the Three Months Ended September 30,For the Nine Months EndedSeptember 30,2025202420252024USDUSDUSDUSDForemost Worldwide Co., Ltd.An entity under common controlSales$300,332$408,977$1,660,567$408,977$300,332$408,977$1,660,567$408,977

26

Purchases from related partiesName of Related PartyRelationshipNature ofTransactionsFor the Three Months Ended September 30,For the Nine Months EndedSeptember 30,2025202420252024USDUSDUSDUSDFocal Capital Holding LimitedAn entity under common controlPurchases$1,063,744 $1,903,797 $4,412,916 $4,658,602 Foremost Worldwide Co., Ltd.An entity under common controlPurchases1,461,397 1,883,192 4,116,219 5,837,250 Rizhao Foremost Woodwork Manufacturing Co., Ltd.An entity under common controlPurchases27,542 15,874 232,349 39,943 F.P.Z. Furniture (Cambodia) Co., Ltd.An entity under common controlPurchases3,617 — 15,376 — $2,