Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 129

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 129
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/ total assets by geographic locationUnited States$21,168,372 $19,597,905 $46,719,841 $47,935,433 Canada8,184,143 7,881,081 14,290,937 15,027,362 Europe3,104,994 3,195,188 1,809,620 1,625,994 Rest of World755,039 79,345 5,641,834 10,872,626 Total$33,212,548 $30,753,519 $68,462,232 $75,461,415 Shipping and Handling CostsShipping and handling costs are expensed as incurred and are included in selling and distribution expenses on the accompanying statement of operations. For the three months ended March 31, 2025 and 2024, shipping and handling expense was $356,154 and $261,989, respectively.

15

Share-based compensationThe Company accounts for share-based compensation in accordance with ASC 718, Compensation — Stock Compensation (“ASC 718”). In accordance with ASC 718, the Company determines whether an award should be classified and accounted for as a liability award or an equity award. All the Company’s share-based awards were classified as equity awards and are recognized in the consolidated financial statements based on their grant date fair values.The Company has elected to recognize share-based compensation using the straight-line method for all share-based awards granted over the requisite service period, which is the vesting period. The Company accounts for forfeitures as they occur in accordance with ASC 718. The Company determines the fair value of the stock options granted to employees. The Black Scholes Model is applied in determining the estimated fair value of the options granted to employees and non-employees. The Company recognized share-based compensation of $76,306 and $119,586 for the three months ended March 31, 2025 and 2024, respectively.Income TaxesDeferred taxes are recognized based on the future tax consequences of the differences between the carrying value of assets and liabilities and their respective tax bases. The future realization of deferred tax assets depends on the existence of sufficient taxable income in future periods. Possible sources of taxable income include taxable income in carryback periods, the future reversal of existing taxable temporary differences recorded as a deferred tax liability, tax-planning strategies that generate future income or gains in excess of anticipated losses in the carryforward period and projected future taxable income.If, based upon all available