Company: FGI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052375
Chunk: 172

Company: FGI Industries Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 8
Chunk 172
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Miscellaneous expenses15,257 — F.P.Z. Furniture (Cambodia) Co., Ltd.An entity under common controlMiscellaneous expenses(486,152)(291,710)$2,736,982 $2,021,675 Loan guarantee by a related partyLiang Chou Chen holds approximately 49.91% of the voting control of Foremost, the Company’s majority shareholder and is a guarantor of the loans under the Credit Agreement and under the CTBC Credit Line. See Note 8 for details.

Note 13 — Concentrations of risks

Credit riskFinancial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash.  The Federal Deposit Insurance Corporation pays compensation up to a limit of USD250,000 if the bank with which a depositor holds its eligible deposit fails. As of September 30, 2025, a cash balance of USD623,721 was maintained at financial institutions in the United States, of which USD111,431 was subject to credit risk. The Taiwan Central Deposit Insurance Corporation pays compensation up to a limit of TWD3,000,000 (approximately USD98,538) if the bank with which an individual/a company holds its eligible deposit fails. As of September 30, 2025, an aggregated cash balance of USD711,222 was maintained at financial institutions in Taiwan, of which USD420,632 was subject to credit risk. The China Deposit Insurance Corporation pays compensation up to a limit of CNY500,000(approximately USD70,152) if the bank with which a depositor holds its eligible deposit fails. As of September 30, 2025, a cash balance of CNY649,817(USD91,172)was maintained at financial institutions in China, of which CNY149,817 (USD21,020) was subject to credit risk. As of September 30, 2025, cash balance of USD176,982 was maintained at financial institutions in Kingdom of Cambodia, all of which was subject to credit risk. The European Banking Authority pays compensation up to a limit of EUR100,000 (approximately USD117,275) if the bank with which an individual/a company holds its eligible deposit fails. As of September 30, 2025, cash balance of EUR188,094 (USD220,586) was maintained at financial institutions in Europe, of which EUR88,094 (USD103,312) was subject to credit risk. While management believes that these financial institutions are