Company: FGI
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001628280-25-025588
Chunk: 51

Company: FGI Industries Ltd.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 51
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.4 (16.1)Permanent items(0.5)(7.0)ROU movement17.2 — Others — (3.7)Effective tax rate47.6 (4.3)

27

The following is a summary of the components of the net deferred tax assets and liabilities recognized in the consolidated balance sheets:As ofMarch 31, 2025As ofDecember 31, 2024USDUSDDeferred tax assets  Allowance for credit losses$43,995 $45,859 Other reserve 111,287 127,515 Accrued expenses173,116 152,600 Lease liability1,162,157 1,464,256 Charitable contributions 450 331 Business interest limitation 711,294 634,794 Net operating loss – federal 1,533,942 976,500 Net operating loss – state437,381 328,861 Other186,527 186,554 Total deferred tax assets 4,360,149 3,917,270 Less: valuation allowance— — Net deferred tax assets4,360,149 3,917,270 Deferred tax liabilities  Fixed assets1,112,467 1,416,178 Intangibles(176,601)(164,493)Total deferred tax liabilities 935,866 1,251,685 Deferred tax assets, net of deferred tax liabilities$3,424,283 $2,665,585 The deferred tax assets related to the Company’s net operating losses of $14,505,156 (Federal $7,304,479 and States $7,200,677) and $10,056,026 (Federal $4,649,994 and States $5,406,032) as of March 31, 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 March 31, 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.

Note 12 — Related party transactions and balances

Sales to a related partyName of Related PartyRelationshipNature ofTransactionsFor the Three Months EndedMarch 31,202520