Company: FGI
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001628280-25-040149
Chunk: 119

Company: FGI Industries Ltd.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 119
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Miscellaneous expenses(436,312)(291,710)$2,692,862 $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 June 30, 2025, a cash balance of USD743,667 was maintained at financial institutions in the United States, of which USD477,698 was subject to credit risk. The Taiwan Central Deposit Insurance Corporation pays compensation up to a limit of New Taiwan Dollar 3,000,000 (approximately USD102,389) if the bank with which an individual/a company holds its eligible deposit fails. As of June 30, 2025, an aggregated cash balance of USD1,318,697 was maintained at financial institutions in Taiwan, of which USD1,071,096 was subject to credit risk. As of June 30, 2025, cash balance of USD77,868 was maintained at financial institutions in Kingdom of Cambodia, all of which was subject to credit risk. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness.The Company is also exposed to risk from its accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment.Customer concentration riskFor the three months ended June 30, 2025, two customers accounted for 13.3% and 12.3% of the Company’s total revenue, respectively. For the three months ended June 30, 2024, two customers accounted for 18.4% and 17.2% of the Company’s total revenue, respectively. No other customer accounted for more than 10% of the Company’s revenue for the three months ended June 30, 2025 and 2024.For the six months ended June 30, 2025, two customers accounted for 15.1% and