Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 149

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part II, Item 8
Chunk 149
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An entity under common controlShared services and Miscellaneous expenses2,958,075 2,654,286 Foremost Worldwide Co., Ltd.An entity under common controlShared services and Miscellaneous expenses99,104 (340,901)Focal Capital Holding LimitedAn entity under common controlShared services and Miscellaneous expenses2,703 — F.P.Z. Furniture (Cambodia) Co., Ltd.An entity under common controlShared services and Miscellaneous expenses(377,910)(291,710)$2,681,972 $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 Canadian Deposit Insurance Corporation pays compensation up to a limit of CAD100,000 (approximately USD69,522) if the bank with which an individual/a company holds its eligible deposit fails. As of March 31, 2025, a cash balance of CAD616,489 (USD428,594) was maintained at financial institutions in Canada, of which CAD447,484 (USD311,098) 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 USD90,361) if the bank with which an individual/a company holds its eligible deposit fails. As of March 31, 2025, an aggregated cash balance of USD167,531 was maintained at financial institutions in Taiwan, of which USD11,539 was subject to credit risk. The European Banking Authority pays compensation up to a limit of EUR100,000 (approximately USD108,319) if the bank with which an individual/a company holds its eligible deposit fails. As of March 31, 2025, cash balance of EUR180,911 (USD195,960) was maintained at financial institutions in Europe, of which EUR80,911 (USD87,641) was subject to credit risk. As of March 31, 2025, cash balance of USD20,145 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