Company: FGI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052375
Chunk: 110

Company: FGI Industries Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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,667 284,852 Total prepayments and other assets$2,607,964 $2,091,407 

Note 6 — Property and equipment, net

Property and equipment, net consist of the following:As ofSeptember 30, 2025As ofDecember 31, 2024USDUSDBuilding$946,066 $946,066 Leasehold Improvements2,353,001 1,919,687 Machinery and equipment3,950,141 3,549,167 Furniture and fixtures277,268 274,994 Vehicles147,912 147,912 Molds26,377 26,377 Subtotal7,700,765 6,864,203 Less: accumulated depreciation(3,753,591)(3,311,647)Prepayment for purchase of equipment and construction-in-progress13,094 81,784 Total$3,960,268 $3,634,340 Depreciation expenses amounted to $182,759 and $125,244 for the three months ended September 30, 2025 and 2024 respectively, and $493,977 and $324,683 for the nine months ended September 30, 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 September 30, 2025, the Company’s leases have remaining lease terms up to 8.8 years.During the nine months ended September 30, 2025, the Company terminated the lease agreement related to its warehouse facility in Indiana as part of a strategic decision. As a result of the early termination, the Company derecognized the related right-of-use asset and lease liability associated with the Indiana facility. The lease termination did not result in any significant gain or loss for the period. The Company also entered into two new lease agreements for office and warehouse spaces in Portage, Indiana, with lease terms through January 2032.For the three months ended September 30, 2025 and 2024, total lease expenses were $634,127 and $699,646, respectively. For the nine months ended September 30, 2025 and 2024, total lease expenses were $1,938,548 and