Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 69

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 Split of the Preference Shares and Ordinary Shares at a ratio of 1-for-5 that became effective July 31, 2025. See Note 9 “Shareholders' Equity” for details.The risk-free interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the contractual term of the awards. Expected volatility is estimated based on the volatility of ordinary shares of the Company. The expected exercise multiple is based on management’s estimation, which the Company believes is representative of the future.The Company has elected to recognize share-based compensation expense using a straight-line method for all the employee equity awards granted with graded vesting based on service conditions, provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant date fair value of the equity awards that are vested at that date.The following table sets forth the amount of share-based compensation expense included in each of the relevant financial statement line items:For the Three Months EndedJune 30,For the Six Months EndedJune 30,2025202420252024USDUSDUSDUSDSelling and distribution expenses$23,701 $42,667 $53,455 $73,916 General and administrative expenses100,922 165,838 147,474 254,174 Total share-based compensation expenses$124,623 $208,505 $200,929 $328,090 As of June 30, 2025, there was $1,262,432 in total unrecognized employee share-based compensation expense related to unvested options and RSUs, which may be adjusted for actual forfeitures occurring in the future. Total unrecognized compensation cost may be recognized over a weighted-average period of 3.03 years.

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Note 11 — Income taxes

The source of pre-tax income and the components of income tax expense are as follows:For the Three Months EndedJune 30,For the Six Months EndedJune 30,2025202420252024USDUSDUSDUSDIncome componentsUnited States$(1,613,023)$(1,200,966)$(3,431,942)$(1,840,931)Outside United States33,982 879,136 297,814 1,003,531 Total pre-tax loss$(1,579,041)$(321,830)$(3,134,128)$(837,400)Provision for (benef