Company: FGI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052375
Chunk: 189

Company: FGI Industries Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 8
Chunk 189
---
558,160 7,777,241 Cash, end of period$1,875,682 $3,044,662 

Operating Activities

Net cash used in operating activities was $1.7 million for the nine months ended September 30, 2025, compared to $8.0 million in the prior-year period. The improvement was primarily driven by favorable movements in liabilities, including a $3.3 million increase in accounts payable, which partially offset cash used for operating losses. These inflows helped mitigate the impact of the $4.1 million net loss, lease payments, and reductions in accrued expenses. Non-cash items such as $1.7 million of amortization, $0.5 million of depreciation, and $0.3 million of share-based compensation narrowed the gap between net loss and operating cash flow. Offsetting these factors were increases in operating assets, including $1.7 million in accounts receivable and $1.6 million in inventory, which used cash during the period. 

Investing Activities

Net cash used in investing activities totaled $0.9 million for the nine months ended September 30, 2025, compared to $2.0 million in the prior-year period, primarily attributable to reduced spending on property, equipment, and intangible assets.

Financing Activities

Net cash used in financing activities was $0.4 million for the nine months ended September 30, 2025, due to net repayments under the Company’s revolving credit facilities. In contrast, the prior-year period generated $5.5 million in cash from financing activities arising from net borrowings under the same facilities.

38

Commitments and Contingencies

Capital Expenditures

Our capital expenditures were incurred primarily in connection with the acquisition of property and equipment. Our capital expenditures amounted to $0.9 million and $2.0 million for the nine months ended September 30, 2025 and 2024, respectively. We do not expect to incur significant capital expenditures in the immediate future.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements including arrangements that would affect our liquidity, capital resources, market risk support and credit risk support or other benefits.

Critical Accounting Policies and Significant Accounting Estimates

A discussion of our critical accounting policies and significant accounting estimates is included in Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Form 10-K. The preparation of the una