Company: FGI
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001628280-25-052375
Chunk: 162

Company: FGI Industries Ltd.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 8
Chunk 162
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 $2,099,500, respectively. 

20

The table below presents the operating lease related assets and liabilities recorded on the Company’s consolidated balance sheets:As ofSeptember 30, 2025As ofDecember 31, 2024USD USDOperating lease right-of-use assets$11,434,340 $12,823,747 Operating lease liabilities – current$1,676,402 $1,867,956 Operating lease liabilities – noncurrent10,369,324 11,352,939 Total operating lease liabilities$12,045,726 $13,220,895 Information relating to the lease term and discount rate are as follows:As ofSeptember 30, 2025As ofDecember 31, 2024Weighted-average remaining lease term  Operating leases8.8 years8.7 yearsWeighted-average discount rate  Operating leases5.9%5.7%As of September 30, 2025, the maturities of operating lease liabilities were as follows:For the 12 months ending September 30,2026$2,337,331 20272,342,014 20282,411,760 20291,878,702 20301,168,540 Thereafter4,969,550 Total lease payments15,107,897 Less: imputed interest(3,062,171)Present value of lease liabilities$12,045,726 

Note 8 — Short-term loans

Bank loanThe Company's wholly-owned subsidiary, FGI Industries, has a line of credit agreement (the “Credit Agreement”) with East West Bank, which is collateralized by all assets of FGI Industries and personally guaranteed by Liang Chou Chen, who holds approximately 49.91% of the voting control of Foremost. The current amount of maximum borrowings is $18,000,000 and the Credit Agreement had a maturity date of December 21, 2024. East West Bank has agreed to extend the maturity date to December 5, 2025 while efforts regarding a renewal of the facility are ongoing. This is an assets-based line of credit, the borrowing limit is calculated based on certain percentage of accounts receivable and inventory balances. Pursuant to the Credit Agreement, FGI Industries is required to maintain (a) a debt coverage ratio (defined as earnings before interest, taxes, depreciation and amortization divided by current portion of long-term debt plus interest expense)