Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 66

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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989,899)Net cash used in investing activities(450,155)(911,420)Net cash (used in) provided by financing activities(1,330,812)4,483,476 Effect of exchange rate fluctuation on cash100,858 (40,332)Net changes in cash(3,331,795)(4,458,175)Cash, beginning of period4,558,160 7,777,241 Cash, end of period$1,226,365 $3,319,066 

Operating Activities

Net cash used in operating activities was approximately $1.7 million for the three months ended March 31, 2025, compared to $8.0 million for the three months ended March 31, 2024. The lower outflow was caused by improved working capital, including a $1.4 million decrease in inventory and an $0.8 million decrease in accounts receivable, both due to stronger inventory management and better collections. Cash was also used to cover the net loss of $0.8 million, lease payments, and reductions in accounts payable and accrued liabilities. Non-cash items such as depreciation, amortization, and a higher deferred tax benefit helped offset the net loss.

Investing Activities

Net cash used in investing activities was $0.5 million and $0.9 million for the three months ended March 31, 2025 and 2024, respectively. The decrease was due to lower spending on equipment and intangible assets, as capital investments were paced more conservatively.

Financing Activities

Net cash used in financing activities was approximately $1.3 million for the three months ended March 31, 2025 which represents net repayment of bank loans. 

Net cash used in financing activities was approximately $4.5 million for the three months ended March 31, 2024, which represents net proceeds from bank loans.

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 $0.5 million and $0.9 million for the three months ended March 31, 2025 and 2024, respectively. We do not expect to incur significant capital expenditures in the immediate future.

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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