Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 96

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 96
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 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 EndedMarch 31,20252024USDUSDSelling and distribution expenses$29,754 $31,249 General and administrative expenses46,552 88,337 Total share-based compensation expenses$76,306 $119,586 As of March 31, 2025, there was $1,319,377 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 3.26 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 EndedMarch 31,20252024USDUSDIncome componentsUnited States$(1,818,919)$(639,965)Outside United States263,832 124,395 Total pre-tax loss$(1,555,087)$(515,570)Provision for (benefit of) income taxes  Current  Federal$— $(33,950)State2,088 (4,129)Foreign17,080 108,911 19,168 70,832 Deferred  Federal(608,145)(37,950)State(150,553)(10,593)Foreign— — (758,698)(48,543)Total (benefit of) provision for income taxes$(739,530)$22,289 Reconciliations between taxes at the U.S. federal income tax rate and taxes at the Company’s effective income tax rate on earnings before income taxes are as follows:For the Three Months EndedMarch 31,20252024%%Federal statutory rate 21.0 21.0 Increase (decrease) in tax rate resulting from:State and local income taxes, net of federal benefit 7.5 1.5 Foreign operations 2.4 (