Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 63

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 warehouse facility in Indiana as part of a strategic decision. As a result of the early termination, the Company derecognized the related right-of-use asset and lease liability associated with the Indiana facility. The lease termination did not result in any significant gain or loss for the period. The Company also entered into two new lease agreements for office and warehouse spaces in Portage, Indiana, with lease terms through January 2032.For the three months ended June 30, 2025 and 2024, total lease expenses were $625,743 and $702,507, respectively. For the six months ended June 30, 2025 and 2024, total lease expenses were $1,296,358 and $1,399,020, respectively. 

19

The table below presents the operating lease related assets and liabilities recorded on the Company’s consolidated balance sheets:As ofJune 30, 2025As ofDecember 31, 2024USD USDOperating lease right-of-use assets$11,884,613 $12,823,747 Operating lease liabilities – current$1,648,147 $1,867,956 Operating lease liabilities – noncurrent10,803,301 11,352,939 Total operating lease liabilities$12,451,448 $13,220,895 Information relating to the lease term and discount rate are as follows:As ofJune 30, 2025As ofDecember 31, 2024Weighted-average remaining lease term  Operating leases8.9 years8.7 yearsWeighted-average discount rate  Operating leases5.8%5.7%As of June 30, 2025, the maturities of operating lease liabilities were as follows:For the 12 months ending June 30,2026$2,330,044 20272,337,461 20282,395,388 20292,198,997 20301,165,575 Thereafter5,265,082 Total lease payments15,692,547 Less: imputed interest(3,241,099)Present value of lease liabilities$12,451,448 

Note 8 — Short-term loans

Bank loanThe Company's wholly-owned subsidiary, FGI Industries, has a line of credit agreement (the “Credit Agreement”) with East West Bank, which is collateralized by all assets of FGI Industries and personally guaranteed by Liang Chou Chen, who holds approximately