Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 185

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part II, Item 8
Chunk 185
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 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 months ended June 30, 2025, compared to net cash used of $7.1 million in the prior-year period. This improvement was driven by favorable working capital movements, including a $3.9 million decrease in accounts receivable and a $1.3 million reduction in inventory. A $2.1 million increase in accounts payable also supported operating cash flow. These inflows helped offset cash usage related to the $2.2 million net loss, payments on lease obligations, and reductions in accrued expenses. Non-cash items such as $1.1 million of amortization, $0.3 million of depreciation, and $0.2 million of share-based compensation contributed to narrowing the gap between the net loss and operating cash flow. Additionally, a higher deferred tax benefit of $1.0 million reduced the non-cash tax burden during the period.

Investing Activities

Net cash used in investing activities totaled $0.6 million for the six months ended June 30, 2025, compared to $1.9 million in the same period of 2024. The lower outflow resulted from a more conservative pace of capital investments, as spending on both equipment and intangible assets was reduced during the current period.

Financing Activities

Net cash used in financing activities was $1.9 million for the six months ended June 30, 2025, due to net repayments on the Company’s revolving credit facilities. In contrast, the prior-year period saw $2.7 million in cash provided by financing activities, reflecting net proceeds from borrowings under the same facilities.

Commitments and Contingencies

Capital Expenditures

Our capital expenditures were incurred primarily in connection with the acquisition of property and