Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 37

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 37
---
1,899 137,592 Write-off(9,696)(190,650)Ending balance$184,024 $191,821 Movements of accrued defective return and discount accounts are as follows:For the Three Months EndedMarch 31,For the Year EndedDecember 31, 20252024USD USDBeginning balance$1,001,927 $744,284 Provision (recovery)123,538 257,643 Ending balance$1,125,465 $1,001,927 

Note 4 — Inventories, net

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

18

Note 5 — Prepayments and other assets

Prepayments and other assets consisted of the following:As ofMarch 31, 2025As ofDecember 31, 2024USDUSDPrepayments$1,842,402 $1,806,555 Others542,660 284,852 Total prepayments and other assets$2,385,062 $2,091,407 

Note 6 — Property and equipment, net

Property and equipment, net consist of the following:As ofMarch 31, 2025As ofDecember 31, 2024USDUSDBuilding$946,066 $946,066 Leasehold Improvements2,132,199 1,919,687 Machinery and equipment3,614,807 3,549,167 Furniture and fixtures274,994 274,994 Vehicles147,912 147,912 Molds26,377 26,377 Subtotal7,142,355 6,864,203 Less: accumulated depreciation(3,460,623)(3,311,647)Prepayment for purchase of equipment and construction-in-progress154,550 81,784 Total$3,836,282 $3,634,340 Depreciation expenses amounted to $147,287 and $87,871 for the three months ended March 31, 2025 and 2024, respectively. Depreciation expenses were included in general and administrative expenses on the unaudited condensed consolidated statements of operations and comprehensive loss.

Note 7 — Leases

The Company has operating leases primarily for corporate offices, warehouses and showrooms. As of March 31, 2025,