Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 157

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part II, Item 8
Chunk 157
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 statement. ASU 2024-03 is effective on a prospective or retrospective basis for annual periods beginning after December 15, 2026, and interim periods within those annual periods beginning after December 15, 2027. Early adoption is permitted. The Company plans to adopt this ASU for 

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its annual period beginning January 1, 2027. The adoption of this guidance will modify the Company’s disclosures, but is not expected to have an impact on its financial position or results of operations. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined not to be applicable.

Note 3 — Accounts receivable, net

Accounts receivable, net consisted of the following:As ofJune 30, 2025As ofDecember 31, 2024USD USDAccounts receivable$17,015,036 $21,487,303 Allowance for credit losses(256,827)(191,821)Accrued defective return and discount(1,053,827)(1,001,927)Accounts receivable, net$15,704,382 $20,293,555 Movements of allowance for credit losses are as follows:For the Six Months EndedJune 30,For the Year EndedDecember 31, 20252024USD USDBeginning balance$191,821 $244,879 Provision75,359 137,592 Write-off(10,353)(190,650)Ending balance$256,827 $191,821 Movements of accrued defective return and discount accounts are as follows:For the Six Months EndedJune 30,For the Year EndedDecember 31, 20252024USD USDBeginning balance$1,001,927 $744,284 Provision (recovery)51,900 257,643 Ending balance$1,053,827 $1,001,927 

Note 4 — Inventories, net

Inventories, net consisted of finished goods as of June 30, 2025 and December 31, 2024.

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Note 5 — Prepayments and other assets

Prepayments and other assets consisted of the following:As ofJune 30, 2025As ofDecember 31, 2024USDUSDPrepayments$2,033,719 $1,806,555 Others391,687 284,