Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 134

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 134
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 have remaining lease terms up to 9.9 years.The Company also purchased an operating lease land from a common control affiliate for manufacturing, which has a remaining lease term up to 47.25 years and can be extended for another 50 years for $1.During the three months ended March 31, 2025, the Company terminated the lease agreement related to its 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.For the three months ended March 31, 2025 and 2024, total lease expenses were $670,615 and $706,414, respectively. 

19

The table below presents the operating lease related assets and liabilities recorded on the Company’s consolidated balance sheets:As ofMarch 31, 2025As ofDecember 31, 2024USD USDOperating lease right-of-use assets$11,378,346 $12,823,747 Operating lease liabilities – current$1,513,911 $1,867,956 Operating lease liabilities – noncurrent10,334,602 11,352,939 Total operating lease liabilities$11,848,513 $13,220,895 Information relating to the lease term and discount rate are as follows:As ofMarch 31, 2025As ofDecember 31, 2024Weighted-average remaining lease term  Operating leases9.1 years8.7 yearsWeighted-average discount rate  Operating leases5.9 %5.7 %As of March 31, 2025, the maturities of operating lease liabilities were as follows:For the 12 months ending March 31,2026$2,167,059 20272,182,644 20282,220,593 20292,287,392 20301,064,776 Thereafter5,119,468 Total lease payments15,041,932 Less: imputed interest(3,193,419)Present value of lease liabilities$11,848,513 

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