Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 95

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 options will vest as to one-third of the shares on the one-year anniversary of the grant date. The remaining options will vest in a series of 24 successive equal monthly installments upon completion of each additional month of service. As of March 31, 2025, none of these granted options were vested.The options granted to employees are measured based on the grant date fair value of the equity instrument. They are accounted for as equity awards and contain service or performance vesting conditions. The following table summarizes the Company’s employee share option activities:Number ofOptionsWeightedAverageExercisePriceWeightedAverageGrant DateFairValueWeightedAverageRemainingContractualTermAverageIntrinsicValueUSDUSDYearsUSDShare options outstanding at December 31, 20241,171,4131.82 0.96 4.25— Granted873,2460.81 0.59 10.00— Forfeited529,6351.50 0.84 Exercised—Expired—Share options outstanding at March 31, 20251,515,0241.35 0.79 9.04— Vested and exercisable at March 31, 2025421,2342.42 1.18 7.22— For the three months ended March 31, 2025 and 2024, the total fair value of options awarded was $511,200 and $447,000, respectively.The aggregate intrinsic value in the table above represents the difference between the exercise price of the awards and the fair value of the underlying Ordinary Shares at each reporting date, for those awards that had exercise price below the estimated fair value of the relevant Ordinary Shares. 

25

Fair value of optionsThe Company used the Black-Scholes simplified method for the three months ended March 31, 2025 and 2024. The assumptions used to value the options granted to employees were as follows:March 2025March 2024Risk-free interest rate (%)4.05 4.21 Expected volatility range (%)82.15 55.11 Fair market value per ordinary share as at grant dates$0.81 $1.50 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