Company: FGI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052375
Chunk: 169

Company: FGI Industries Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 8
Chunk 169
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048)640,760 (865,882)Total benefit of income taxes$1,879,599 $267,537 $925,493 $(8,589)Reconciliations between taxes at the U.S. federal income tax rate and taxes at the Company’s effective income tax rate on earnings before income taxes are as follows:For the Nine Months EndedSeptember 30,20252024%%Federal statutory rate 21.0 21.0 Increase (decrease) in tax rate resulting from:State and local income taxes, net of federal benefit 6.4 6.1 Foreign operations (5.2)(16.2)Permanent items(0.6)(10.8)Deferred adjustments7.1 (0.1)Valuation allowance(57.2)— Others (0.4)0.7 Effective tax rate(28.9)0.7 

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The following is a summary of the components of the net deferred tax assets and liabilities recognized in the consolidated balance sheets:As ofSeptember 30, 2025As ofDecember 31, 2024USDUSDDeferred tax assets  Allowance for credit losses$49,406 $45,859 Other reserve 133,704 127,515 Accrued expenses184,570 152,600 Lease liability1,205,257 1,464,256 Charitable contributions 3,559 331 Business interest limitation 993,061 634,794 Net operating loss – federal 1,518,607 976,500 Net operating loss – state477,695 328,861 Other194,996 186,554 Total deferred tax assets 4,760,855 3,917,270 Less: valuation allowance(1,831,630)— Net deferred tax assets2,929,225 3,917,270 Deferred tax liabilities  Fixed assets1,177,754 1,416,178 Intangibles(273,354)(164,493)Total deferred tax liabilities 904,400 1,251,685 Deferred tax assets, net of deferred tax liabilities$2,024,825 $2,665,585 The deferred tax assets related to the Company’s net operating losses of $14,886,529 (Federal $7,231,456 and States $7,655,073) and $10,056,026