Company: FGI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052375
Chunk: 72

Company: FGI Industries Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 72
---
.1 Foreign operations (5.2)(16.2)Permanent items(0.6)(10.8)Deferred adjustments7.1 (0.1)Valuation allowance(57.2)— Others (0.4)0.7 Effective tax rate(28.9)0.7 

25

The following is a summary of the components of the net deferred tax assets and liabilities recognized in the consolidated balance sheets:As ofSeptember 30, 2025As ofDecember 31, 2024USDUSDDeferred tax assets  Allowance for credit losses$49,406 $45,859 Other reserve 133,704 127,515 Accrued expenses184,570 152,600 Lease liability1,205,257 1,464,256 Charitable contributions 3,559 331 Business interest limitation 993,061 634,794 Net operating loss – federal 1,518,607 976,500 Net operating loss – state477,695 328,861 Other194,996 186,554 Total deferred tax assets 4,760,855 3,917,270 Less: valuation allowance(1,831,630)— Net deferred tax assets2,929,225 3,917,270 Deferred tax liabilities  Fixed assets1,177,754 1,416,178 Intangibles(273,354)(164,493)Total deferred tax liabilities 904,400 1,251,685 Deferred tax assets, net of deferred tax liabilities$2,024,825 $2,665,585 The deferred tax assets related to the Company’s net operating losses of $14,886,529 (Federal $7,231,456 and States $7,655,073) and $10,056,026 (Federal $4,649,994 and States $5,406,032) as of September 30, 2025 and December 31, 2024, respectively. The federal net operating losses have no expiration date. The states net operating losses have either 20 years or no expiration date. The Company had no material unrecognized tax benefits at September 30, 2025 or December 31, 2024. The Company has not taken any tax positions for which it is reasonably possible that unrecognized tax benefits will significantly increase within the next 12 months.On July 4, 2025, President