FGI Industries Ltd.FGI

FGI Industries Ltd. Leases Disclosure

10-KFiled Apr 10, 20261 min read
Leases
The Company has operating leases primarily for corporate offices, warehouses and showrooms. For the years ended December 31, 2025, and 2024, the total lease expenses were $2,577,192 and $2,763,970 respectively.
The table below presents the operating lease related assets and liabilities recorded on the Company’s consolidated balance sheets:
As of
December 31, 2025		As of
December 31, 2024
USDUSD
Operating lease right-of-use assets$11,031,892 $12,823,747 
Operating lease liabilities – current$1,700,936 $1,867,956 
Operating lease liabilities – noncurrent10,012,616 11,352,939 
Total operating lease liabilities$11,713,552 $13,220,895 

Information relating to the lease term and discount rate are as follows:
As of
December 31, 2025		As of
December 31, 2024		 
Weighted-average remaining lease term
Operating leases8.5 years8.7 years
Weighted-average discount rate
Operating leases5.9%5.7%
As of December 31, 2025, the maturities of operating lease liabilities were as follows:
For the 12 months ending December 31,
2026$2,344,918 
20272,368,923 
20282,439,489 
20291,564,539 
20301,187,866 
Thereafter4,723,326 
Total lease payments14,629,061 
Less: imputed interest(2,915,509)
Present value of lease liabilities$11,713,552 

Historical Timeline

Fiscal YearFiled
2025Apr 10, 2026Showing above
2024Mar 31, 2025
2023Mar 26, 2024
2022Apr 17, 2023

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

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