Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 20, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-41207 | ||
Entity Registrant Name | FGI Industries Ltd. | ||
Entity Incorporation, State or Country Code | E9 | ||
Entity Tax Identification Number | 98-1603252 | ||
Entity Address State Or Province | NJ | ||
Entity Address, Address Line One | 906 Murray Road | ||
Entity Address, City or Town | East Hanover | ||
Entity Address, Postal Zip Code | 07936 | ||
City Area Code | 973 | ||
Local Phone Number | 428-0400 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,407,360 | ||
Entity Common Stock, Shares Outstanding | 9,547,607 | ||
Entity Central Index Key | 0001864943 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | Marcum llp | ||
Auditor Location | Melville, NY | ||
Auditor Firm ID | 688 | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Ordinary Shares, $0.0001 par value | ||
Entity Listing, Par Value Per Share | $ 0.0001 | ||
Trading Symbol | FGI | ||
Security Exchange Name | NASDAQ | ||
Warrant [Member] | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Warrants to purchase Ordinary Shares, $0.0001 par value | ||
Trading Symbol | FGIWW | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash | $ 7,777,241 | $ 10,067,428 |
Accounts receivable, net | 16,195,543 | 14,295,859 |
Inventories, net | 9,923,852 | 13,292,591 |
Prepayments and other current assets | 4,617,751 | 2,588,081 |
Prepayments and other receivables - related parties | $ 7,600,283 | $ 5,643,649 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type | Related Party [Member] | Related Party [Member] |
Total current assets | $ 46,114,670 | $ 45,887,608 |
PROPERTY AND EQUIPMENT, NET | 1,910,491 | 1,269,971 |
OTHER ASSETS | ||
Intangible assets | 102,227 | |
Operating lease right-of-use assets, net | 15,203,576 | 9,815,572 |
Deferred tax assets, net | 1,168,833 | 1,265,539 |
Other noncurrent assets | 1,245,133 | 2,128,240 |
Total other assets | 17,719,769 | 13,209,351 |
Total assets | 65,744,930 | 60,366,930 |
CURRENT LIABILITIES | ||
Short-term loans | 6,959,175 | 9,795,052 |
Income tax payable | 189,119 | 33,350 |
Operating lease liabilities - current | 1,595,998 | 1,543,031 |
Accrued expenses and other current liabilities | 4,039,499 | 3,580,359 |
Total current liabilities | 28,043,706 | 29,775,203 |
OTHER LIABILITIES | ||
Operating lease liabilities - noncurrent | 13,674,452 | 7,847,317 |
Total liabilities | 41,718,158 | 37,622,520 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY | ||
Preference Shares ($0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2023 and December 31, 2022) | ||
Ordinary shares ($0.0001 par value, 200,000,000 shares authorized, 9,547,607 and 9,500,000 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively) | 955 | 950 |
Additional paid-in capital | 20,877,832 | 20,459,859 |
Retained earnings | 4,413,524 | 3,679,920 |
Accumulated other comprehensive loss | (1,111,499) | (1,396,319) |
FGI Industries Ltd. shareholders' equity | 24,180,812 | 22,744,410 |
Non-controlling interests | (154,040) | |
Total shareholders' equity | 24,026,772 | 22,744,410 |
Total liabilities and shareholders' equity | 65,744,930 | 60,366,930 |
Nonrelated Party [Member] | ||
CURRENT LIABILITIES | ||
Accounts payable | 14,524,607 | 14,718,969 |
Related Party [Member] | ||
CURRENT LIABILITIES | ||
Accounts payable | $ 735,308 | $ 104,442 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preference shares | ||
Preference shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preference shares, authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred shares, shares issued (in shares) | 0 | 0 |
Preferred shares, shares outstanding (in shares) | 0 | 0 |
Ordinary shares | ||
Ordinary shares, par value (in per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, authorized (in shares) | 200,000,000 | 200,000,000 |
Ordinary shares, issued (in shares) | 9,547,607 | 9,500,000 |
Ordinary shares, outstanding (in shares) | 9,547,607 | 9,500,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
REVENUES | $ 117,241,604 | $ 161,718,543 |
COST OF REVENUES | 85,164,322 | 130,209,538 |
GROSS PROFIT | 32,077,282 | 31,509,005 |
OPERATING EXPENSES | ||
Selling and distribution | 19,971,912 | 17,533,028 |
General and administrative | 8,424,083 | 7,830,023 |
Research and development | 1,376,844 | 1,053,976 |
Total operating expenses | 29,772,839 | 26,417,027 |
INCOME FROM OPERATIONS | 2,304,443 | 5,091,978 |
OTHER INCOME (EXPENSES) | ||
Interest income | 10,543 | 3,159 |
Interest expense | (749,729) | (600,798) |
Other (expenses) income, net | (177,469) | 46,211 |
Total other expenses, net | (916,655) | (551,428) |
INCOME BEFORE INCOME TAXES | 1,387,788 | 4,540,550 |
PROVISION FOR INCOME TAXES | ||
Current | 711,518 | 658,694 |
Deferred | 96,706 | 201,936 |
Total provision for income taxes | 808,224 | 860,630 |
NET INCOME | 579,564 | 3,679,920 |
Less: net loss attributable to non-controlling shareholders | (154,040) | |
Net income attributable to FGI Industries Ltd. Shareholders | 733,604 | 3,679,920 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation adjustments | 284,820 | (741,587) |
COMPREHENSIVE INCOME | 864,384 | 2,938,333 |
Less: comprehensive loss attributable to non-controlling shareholders | (154,040) | |
Comprehensive income attributable to FGI Industries Ltd. Shareholders | $ 1,018,424 | $ 2,938,333 |
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES | ||
Basic (in shares) | 9,525,434 | 9,335,616 |
Diluted (in shares) | 9,821,112 | 9,341,921 |
EARNINGS PER SHARE | ||
Basic (in dollars per share) | $ 0.08 | $ 0.39 |
Diluted (in dollars per share) | $ 0.07 | $ 0.39 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Parent [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Other Additional Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance at Dec. 31, 2021 | $ 7,549,710 | $ 700 | $ 7,549,010 | $ 7,549,710 | ||||
Beginning balance (in shares) at Dec. 31, 2021 | 7,000,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Consummation of separation transaction upon completion of reorganization | $ 8,203,742 | $ (7,549,010) | $ (654,732) | |||||
Share-Based compensation | 383,572 | 383,572 | 383,572 | |||||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net | 12,370,800 | $ 250 | 12,370,550 | 12,370,800 | ||||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net (in shares) | 2,500,000 | |||||||
Net income | 3,679,920 | $ 3,679,920 | 3,679,920 | |||||
Long-lived assets acquisition from affiliate | (498,005) | (498,005) | (498,005) | |||||
Foreign currency translation adjustments | (741,587) | (741,587) | (741,587) | |||||
Ending balance at Dec. 31, 2022 | 22,744,410 | $ 950 | 20,459,859 | 3,679,920 | (1,396,319) | 22,744,410 | ||
Ending balance (in shares) at Dec. 31, 2022 | 9,500,000 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Share-Based compensation | 417,978 | $ 5 | 417,973 | 417,978 | ||||
Share-Based compensation (in shares) | 47,607 | |||||||
Net income | 733,604 | 733,604 | $ (154,040) | 579,564 | ||||
Foreign currency translation adjustments | 284,820 | 284,820 | 284,820 | |||||
Ending balance at Dec. 31, 2023 | $ 24,180,812 | $ 955 | $ 20,877,832 | $ 4,413,524 | $ (1,111,499) | $ (154,040) | $ 24,026,772 | |
Ending balance (in shares) at Dec. 31, 2023 | 9,547,607 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 579,564 | $ 3,679,920 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 2,017,502 | 218,662 |
Share-based compensation | 417,978 | 383,572 |
Provision for credit losses | 78,640 | 261,381 |
Reversal of defective return | (851,554) | (1,696,263) |
Foreign exchange transaction loss | 185,317 | 7,417 |
Deferred income tax expense | 96,707 | 213,050 |
Changes in operating assets and liabilities | ||
Accounts receivable | (1,126,770) | 13,489,673 |
Inventories | 3,368,740 | 7,971,370 |
Prepayments and other current assets | (2,029,670) | (1,041,458) |
Prepayments and other receivables - related parties | (1,956,634) | (2,523,826) |
Other noncurrent assets | 883,108 | 860,770 |
Income taxes | 155,769 | (1,187,589) |
Right-of-use assets | 858,322 | |
Accounts payable | (194,362) | (17,290,882) |
Accounts payable-related parties | 630,866 | 104,442 |
Operating lease liabilities | (1,324,641) | (1,396,218) |
Accrued expenses and other current liabilities | 459,139 | (1,932,078) |
Net cash provided by operating activities | 1,389,699 | 980,265 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from disposal of property and equipment | 400 | |
Purchase of property and equipment | (840,387) | (1,064,223) |
Purchase of intangible assets | (102,227) | |
Net cash used in investing activities | (942,614) | (1,063,823) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net repayments of revolving credit facility | (2,835,876) | (4,862,228) |
Net proceeds from issuance of ordinary shares in IPO | 12,370,800 | |
Excess payment over carrying value on long-lived assets acquisition from common-control affiliate | (498,005) | |
Net cash (used in) provided by financing activities | (2,835,876) | 7,010,567 |
EFFECT OF EXCHANGE RATE FLUCTUATION ON CASH | 98,604 | (743,477) |
NET CHANGES IN CASH | (2,290,187) | 6,183,532 |
CASH, BEGINNING OF PERIOD | 10,067,428 | 3,883,896 |
CASH, END OF PERIOD | 7,777,241 | 10,067,428 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Cash paid during the period for interest | (749,646) | (600,043) |
Cash paid during the period for income taxes | (552,163) | (1,835,823) |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
New addition on Right-of-use assets | $ (7,204,742) | $ (2,585,925) |
Nature of Business and Organiza
Nature of Business and Organization | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Organization | Note 1 — Nature of business and organization FGI Industries Ltd. (“FGI” or the “Company”) is a holding company organized on May 26, 2021, under the laws of the Cayman Islands. The Company has no substantive operations other than holding all of the outstanding equity of its operating subsidiaries as described below. The Company is a supplier of global kitchen and bath products and currently focuses on the following categories: sanitaryware (primarily toilets, sinks, pedestals and toilet seats), bath furniture (vanities, mirrors and cabinets), shower systems, customer kitchen cabinetry and other accessory items. These products are sold primarily for repair and remodeling (“R&R”) activity and, to a lesser extent, new home or commercial construction. The Company sells its products through numerous partners, including mass retail centers, wholesale and commercial distributors, online retailers and independent dealers and distributors. The accompanying consolidated financial statements reflect the activities of FGI and each of the following entities, in each case, as contemplated after the Reorganization, as described below: Name Background Ownership FGI Industries, Inc. ● 100% owned by FGI (formerly named Foremost Groups, Inc.) ● ● FGI Europe Investment Limited ● 100% owned by FGI ● FGI International, Limited ● 100% owned by FGI ● ● FGI Canada Ltd. ● 100% owned by FGI Industries, Inc. ● ● FGI Germany GmbH & Co. KG ● 100% owned by FGI Europe Investment Limited ● ● FGI China, Ltd. ● 100% owned by FGI International, Limited ● ● FGI United Kingdom Ltd ● 100% owned by FGI Europe Investment Limited ● ● FGI Australasia Pty Ltd ● 100% owned by FGI ● ● Covered Bridge Cabinetry Manufacturing Co., Ltd ● 100% owned by FGI ● ● Isla Porter LLC ● 60% owned by FGI Industries, Inc. ● ● Reorganization On January 27, 2022, the following reorganization steps were collectively completed: (i) the incorporation of (iii) Foremost contributed the FKB shares to Foremost Home Inc. (“FHI”), a newly-formed wholly-owned subsidiary of Foremost; and (iv) Foremost contributed 100% of the outstanding shares of stock of each of FGI Industries, FGI Europe Investment Limited (“FGI Europe”), which, directly and, through its wholly-owned German subsidiary, FGI Germany GmbH & Co., operates the K&B sales and distribution business in Europe, and FGI International, which, directly and through its wholly-owned Chinese subsidiary, FGI China, Ltd., operates the K&B sales and distribution business in the remainder of the world, K&B product development and sourcing of K&B products in China, to the Company (collectively, the “Reorganization”), such that, immediately following the Reorganization, (x) Foremost owns 100% of the equity interests in each of the Company and FHI , (y) the Company owns 100% of the equity interests in each of FGI Industries, FGI Europe and FGI International , which collectively, and through subsidiaries, operate the K&B business worldwide (the “K&B Business”), and (z) FHI owns 100% of the equity interests in FKB. Immediately before and as contemplated by the proposed Reorganization, each of the Companies, FGI Industries, FGI Europe and FGI International, and each of their respective subsidiaries was and is ultimately controlled by Foremost. As such, the accompanying consolidated financial statements include the assets, liabilities, revenue, expenses and cash flows that are directly attributable to the K&B Business (excluded otherwise) before the Reorganization. The consolidated financial statements are presented as if the Company had been in existence and the Reorganization had been in effect for the entirely of each of the periods presented. However, such presentation may not necessarily reflect the results of operations, financial position and cash flows if the K&B Business had actually existed on a stand- alone basis during the years presented before the completion of the Reorganization. On January 14, 2022, FGI Industries, a wholly-owned subsidiary of the Company, entered into a shared services agreement (the “FHI Shared Services Agreement”) with Foremost Home Industries, Inc., a newly-formed wholly-owned subsidiary of Foremost (“FHI”). Pursuant to the FHI Shared Services Agreement, FGI Industries provides FHI with general and administrative services, information technology systems services and human resources services, as well as warehouse space services and supply chain services in the United States. Under the FHI Shared Services Agreement, FHI will reimburse any reasonable and documented out-of-pocket fees incurred by FGI Industries as well as pay a service fee for each service. For warehouse services, FHI will pay FGI Industries a On January 1, 2023 the Company entered into an amended and restated shared services agreement (the “Worldwide Shared Services Agreement”) with Foremost Worldwide Co., Ltd. (“Foremost Worldwide”) pursuant to which Foremost Worldwide will provide FGI Industries with general and administrative services, information technology system services and human resources services, in Taiwan. The terms of the Worldwide Services Agreement as between the service provider and recipient are substantially identical to those of the FHI Shared Services Agreement, including calculation of service fees and termination provisions, with Foremost Worldwide providing services and FGI Industries paying Foremost Worldwide for such services. The assets and liabilities have been stated at historical carrying amounts. Only those assets and liabilities that are specifically identifiable to the K&B Business are included in the Company’s consolidated balance sheets. The Company’s statements of income and comprehensive income consists all the revenues, costs and expenses of the K&B Business, including allocations to the selling and distribution expenses, general and administrative expenses, and research and development expenses, and which were incurred by FGI but related to the K&B Business prior to the Reorganization. All revenues and cost of revenues attributable to selling of kitchen and bath products were allocated to the Company. Operating expenses were allocated to the Company based on employees and activities that are involved in the K&B Business. Any expenses that were not directly attributable to any specific business were allocated to the Company based on the proportion of the number of employees of the K&B Business to the total number of employees of both the K&B Business and FHI. The following table sets forth the revenues, cost of revenues and operating expenses that were irrelevant to the K&B Business allocated from FGI Industries to Foremost Home, Inc. for years ended December 31, 2023 and 2022, respectively. For the Years Ended December 31, 2023 2022 USD USD Revenues $ 991,919 $ 34,470,623 Cost of revenues (768,065) (27,735,284) Gross profit 223,854 6,735,339 Selling and distribution expenses 45,979 (3,883,799) General and administrative expenses — (322,825) Research and development expenses — (219,346) Income from operations $ 269,833 $ 2,309,369 The following table sets forth the revenues, cost of revenues and operating expenses that were directly related to the K&B Business allocated from Foremost Worldwide Co., Ltd., a wholly-owned subsidiary of Foremost, to FGI International for years ended December 31, 2023 and 2022, respectively. For the Years Ended December 31, 2023 2022 USD USD Revenues $ — $ 25,022,960 Cost of revenues — (22,853,884) Gross profit — 2,169,076 Selling and distribution expenses — (517,408) General and administrative expenses — (466,872) Research and development expenses — (27,315) Income from operations $ — $ 1,157,481 Income tax liability is calculated based on a separate return basis as if the K&B Business had filed separate tax returns before the completion of the Reorganization. Immediately following the Reorganization, the K&B Business began to file separate tax returns and report taxation based on the actual tax return of each legal entity. Management believes the basis and amounts of these allocations are reasonable. While the expenses allocated to the Company for these items are not necessarily indicative of the expenses that would have been incurred if the Company had been a separate, stand-alone entity, the Company does not believe that there is any significant difference between the nature and amounts of these allocated expenses and the expenses that would have been incurred if the Company had been a separate, stand-alone entity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of significant accounting policies Liquidity Historically, the Company finances its operations through internally generated cash, short-term loans and payables. As of December 31, 2023, the Company had approximately $7.8 million in cash and cash equivalents, which primarily consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. As of the date of the report, FGI Industries is in the process of obtaining extension for Corporate Borrower Annual Statements, a U.S. standalone reporting obligation, which will be due by April 30, 2024. If the condition is not met, East West Bank has the right to close the line of credit, please refer to Note 8 – Short-term loans. If the Company is unable to realize its assets within the normal operating cycle of a twelve (12) month period, the Company may have to consider supplementing its available sources of funds through the following sources: · · · Based on the above considerations, the Company’s management is of the opinion that it has sufficient funds to meet the Company’s working capital requirements and debt obligations as they become due over the next twelve (12) months. Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commissions (the “SEC”), regarding financial reporting, and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operation results. Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at a meeting of directors. Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of property and equipment, allowance for credit losses, inventory reserve, accrued defective return, provision for contingent liabilities, revenue recognition, deferred taxes and uncertain tax position. Actual results could differ from these estimates. Foreign currency translation and transaction The functional currencies of the Company and its subsidiaries are the local currency of the country in which the subsidiaries operate, except for FGI International which is incorporated in Hong Kong while adopting the United States Dollar (“U.S. Dollar” or “USD”) as its functional currency. The reporting currency of the Company is the U.S. Dollar. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. The results of operations and the cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in the consolidated statements of changes in shareholders’ equity. Transaction gains and losses arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency in the consolidated statements of income and comprehensive income. For the purpose of presenting the financial statements of subsidiaries using the Renminbi (“RMB”) as functional currency, the Company’s assets and liabilities are expressed in U.S. Dollars at the exchange rate on the balance sheet date, which was 7.1006 and 6.9653 as of December 31, 2023 and 2022, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which was 7.0945 and 6.7164 the years ended December 31, 2023 and 2022, respectively. For the purpose of presenting the financial statements of the subsidiary using the Canadian Dollar (“CAD”) as functional currency, the Company’s assets and liabilities are expressed in U.S. Dollars at the exchange rate on the balance sheet date, which was 1.3246 and 1.3541 as of December 31, 2023 and 2022, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which was 1.3541 and 1.2945 for the years ended December 31, 2023 and 2022, respectively. For the purpose of presenting the financial statements of the subsidiary using the Euro (“EUR”) as functional currency, the Company’s assets and liabilities are expressed in U.S. Dollars at the exchange rate on the balance sheet date, which was 0.9059 and 0.9338 as of December 31, 2023 and 2022, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which was 0.9527 and 0.9474 for the years ended December 31, 2023 and 2022, respectively. Cash Cash consists of cash on hand and demand deposits placed with banks or other financial institutions that have original maturities of three months or less. The Company did not have any cash equivalents as of December 31, 2023 and 2022. Accounts receivable, net Accounts receivables include trade accounts due from customers. In establishing the required allowance for credit losses, management considers historical collection experience, aging of the receivables, the economic environment, industry trend analysis, and the credit history and financial conditions of the customers. Management reviews its receivables on a regular basis to determine if the expected credit losses is adequate and adjusts the allowance when necessary. Delinquent account balances are written off against allowance for credit losses after management has determined that the likelihood of collection is not probable. Inventories, net Inventories are stated at the lower of cost and net realizable value. Cost consists of purchase price and related shipping and handling expenses, and is determined using the weighted average cost method, based on individual products. The methods of determining inventory costs are used consistently from year to year. A provision for slow-moving items is calculated based on historical experience. Management reviews this provision annually to assess whether, based on economic conditions, it is adequate. Prepayments Prepayments are cash deposited or advanced to suppliers for the purchase of goods or services that have not been received or provided. This amount is refundable and bears no interest. Prepayments and deposits are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. Property and equipment, net Property and equipment are stated at cost net of accumulated depreciation and impairment. Depreciation is provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Estimated useful lives are as follows: Useful Life Building 20 years Leasehold Improvements Lesser of lease term and expected useful life Machinery and equipment 3 – 5 years Furniture and fixtures 3 – 5 years Vehicles 5 years Molds 3 – 5 years Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of software acquired for internal use. The Company amortizes its intangible assets with definite useful lives over their estimated useful lives and reviews these assets for impairment. The Company typically amortizes its intangible assets with definite useful lives on a straight-line basis over the estimated useful lives of ten years. Impairment for long-lived assets Long-lived assets, including property and equipment and intangible assets with definite useful lives, are reviewed for impairment whenever material events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset group may not be recoverable. The Company assesses the recoverability of an asset group based on the undiscounted future cash flows the asset group is expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset group plus net proceeds expected from disposition of the asset group, if any, are less than the carrying value of the asset group. If an impairment is identified, the Company would reduce the carrying amount of the asset group to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2023 and 2022, no impairment of long-lived assets was recognized. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets (“ROU assets”), operating lease liabilities — current and operating lease liabilities — noncurrent on the consolidated balance sheets. ROU assets represent our right to use an underlying asset for the duration of the lease term while lease liabilities represent the Company’s obligation to make lease payments in exchange for the right to use an underlying asset. ROU assets and lease liabilities are measured based on the present value of fixed lease payments over the lease term at the commencement date. The ROU asset also includes any lease payments made prior to the commencement date and initial direct costs incurred, and is reduced by any lease incentives received. The Company reviews its ROU assets as material events occur or circumstances change that would indicate the carrying amount of the ROU assets are not recoverable and exceed their fair values. If the carrying amount of an ROU asset is not recoverable from its undiscounted cash flows, then the Company would recognize an impairment loss for the difference between the carrying amount and the current fair value. As most of the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate on the commencement date of the lease as the discount rate in determining the present value of future lease payments. The Company determines the incremental borrowing rate for each lease by using the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease when there are relevant economic incentives present that make it reasonably certain that the Company will exercise that option. The Company accounts for any non- lease components separately from lease components. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Fair Value Measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels of the fair value hierarchy are as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Revenue recognition The Company recognized revenue in accordance with Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customer. Revenues are recognized when control of the promised goods or performance obligations for services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services. The Company generates revenues from sales of kitchen and bath products, and recognizes revenue as control of its products is transferred to its customers, which is generally at the time of shipment or upon delivery based on the contractual terms with the Company’s customers. The Company’s customers’ payment terms generally range from 15 to 60 days of fulfilling its performance obligations and recognizing revenue. The Company provides customer programs and incentive offerings, including co-operative marketing arrangements and volume-based incentives. These customer programs and incentives are considered variable consideration. The Company includes in revenue variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the variable consideration is resolved. This determination is made based upon known customer program and incentive offerings at the time of sale, and expected sales volume forecasts as it relates to the Company’s volume- based incentives. This determination is updated on a monthly basis. Certain product sales include a right of return. The Company estimates future product returns at the time of sale based on historical experience and records a corresponding reduction in accounts receivable. The Company records receivables related to revenue when it has an unconditional right to invoice and receive payment. The Company’s disaggregated revenues are summarized as follows: For the Years Ended December 31, 2023 2022 USD USD Revenues by product line Sanitaryware $ 75,551,117 $ 104,806,342 Bath Furniture 14,770,376 29,519,728 Shower System 19,997,197 21,586,888 Others 6,922,914 5,805,585 Total $ 117,241,604 $ 161,718,543 Revenues Total assets For the Years Ended As of December 31, December 31, 2023 2022 2023 2022 USD USD USD USD Revenues/ total assets by geographic location United States $ 74,572,336 $ 103,255,662 $ 38,401,665 $ 38,364,005 Canada 31,092,989 41,025,288 17,850,709 14,584,946 Europe 11,477,070 16,844,015 528,068 343,946 Rest of World 99,209 593,578 8,964,488 7,074,033 Total $ 117,241,604 $ 161,718,543 $ 65,744,930 $ 60,366,930 Shipping and Handling Costs Shipping and handling costs are expensed as incurred and are included in selling and distribution expenses on the accompanying statement of operations. For the years ended December 31 2023 and 2022, shipping and handling expense was $711,640 and $842,827, respectively. Share-based compensation The 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, with the assistance of an independent third-party valuation firm, 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 Income Taxes Deferred taxes are recognized based on the future tax consequences of the differences between the carrying value of assets and liabilities and their respective tax basis. 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 evidence, both positive and negative, it is more likely than not (i.e., more than 50 percent likely) that such deferred tax assets will not be realized, a valuation allowance is recorded. Significant weight is given to positive and negative evidence that is objectively verifiable. A company’s three- year cumulative loss position is significant negative evidence in considering whether deferred tax assets are realizable, and the accounting guidance restricts the amount of reliance we can place on projected taxable income to support the recovery of the deferred tax assets. The current accounting guidance allows the recognition of only those income tax positions that have a greater than 50 percent likelihood of being sustained upon examination by the taxing authorities. The Company believes that there is an increased potential for volatility in its effective tax rate because this threshold allows for changes in the income tax environment and, to a greater extent, the inherent complexities of income tax law in a substantial number of jurisdictions, which may affect the computation of its liability for uncertain tax positions. The Company records interest and penalties on our uncertain tax positions in income tax expense. As of December 31, 2023, the tax years ended December 31, 2020 through December 31, 2023 We record the tax effects of Foreign Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) related to our foreign operations as a component of income tax expense in the period in which the tax arises. Non-controlling interests The Company’s non-controlling interests represent the minority shareholders’ ownership interests related to the Company’s subsidiary, including 40% in Isla Porter LLC. The non-controlling interests are presented in the consolidated balance sheets, separate from equity attributable to the shareholders of the Company. Non-controlling interests in the results of operations of the Company are presented on the consolidated statements of income and comprehensive income as allocations of the net income or loss for the period between non-controlling shareholders and the shareholders of the Company. Comprehensive income Comprehensive income consists of two components: net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of equity but are excluded from net income. Other comprehensive income consists of a foreign currency translation adjustment resulting from the Company not using the U.S. Dollar as its functional currencies. Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260 – Earnings per Share (“ASC 260”). ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. The following table sets forth the computation of basic and diluted earnings per share for the year ended December 31, 2023 and 2022: For the Year Ended December 31, 2023 2022 USD USD Numerator: Net income attributable to FGI Industries Ltd. Shareholders $ 733,604 $ 3,679,920 Denominator: Weighted-average number of ordinary shares outstanding — 9,525,434 9,335,616 Potentially dilutive shares from outstanding options/warrants 295,678 6,305 Weighted-average number of ordinary shares outstanding — 9,821,112 9,341,921 Earnings per share — basic $ 0.08 $ 0.39 Earnings per share — diluted $ 0.07 $ 0.39 Potential ordinary shares that have an anti-dilutive effect are excluded from the calculation of diluted EPS. 355,999 and 2,925,000 number of options and warrants, respectively, were excluded from diluted EPS because their effects were anti-dilutive. Segment reporting ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016 13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” amending the accounting for the impairment of financial instruments, including trade receivables. Under previous guidance, credit losses were recognized when the applicable losses had a probable likelihood of occurring and this assessment was based on past events and current conditions. The amended current guidance eliminates the “probable” threshold and requires an entity to use a broader range of information, including forecast information when estimating expected credit losses. Generally, this should result in a more timely recognition of credit losses. This guidance became effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The requirements of the amended guidance should be applied using a modified retrospective approach except for debt securities, which require a prospective transition approach. In November 2019, the FASB issued ASU 2019 10, which finalized the delay of such effective date to fiscal years beginning after December 15, 2023 for private and all other companies, including emerging growth companies. As an emerging growth company, the Company adopted this guidance from January 1, 2023, and the adoption of the standard did not have an impact on its financial position or results of operation. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined not to be applicable. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Note 3 — Accounts receivable, net Accounts receivable, net consisted of the following: As of As of December 31, 2023 December 31, 2022 USD USD Accounts receivable $ 17,184,706 $ 16,330,540 Allowance for credit losses (244,879) (438,843) Accrued defective return and discount (744,284) (1,595,838) Accounts receivable, net $ 16,195,543 $ 14,295,859 Movements of allowance for credit losses are as follows: For the Year Ended For the Year Ended December 31, December 31, 2023 2022 USD USD Beginning balance $ 438,843 $ 177,462 Addition 78,640 261,381 Write-off (272,604) — Ending balance $ 244,879 $ 438,843 Movements of accrued defective return and discount accounts are as follows: For the Year Ended For the Year Ended December 31, December 31, 2023 2022 USD USD Beginning balance $ 1,595,838 $ 3,292,101 Provision (851,554) (1,696,263) Ending balance $ 744,284 $ 1,595,838 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 4 — Inventories, net Inventories, net consisted of the following: As of As of December 31, 2023 December 31, 2022 USD USD Finished product $ 10,565,858 $ 13,956,121 Reserves for slow-moving inventories (642,006) (663,530) Inventories, net $ 9,923,852 $ 13,292,591 Movements of inventory reserves are as follows: For the Year Ended For the Year Ended December 31, December 31, 2023 2022 USD USD Beginning balance $ 663,530 $ 544,158 Addition (21,524) 119,372 Ending balance $ 642,006 $ 663,530 |
Prepayments and Other Assets
Prepayments and Other Assets | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepayments and Other Assets | Note 5 — Prepayments and other assets Prepayments and other assets consisted of the following: As of As of December 31, 2023 December 31, 2022 USD USD Prepayments $ 3,953,340 $ 2,026,259 Others 664,411 561,822 Total prepayments and other assets $ 4,617,751 $ 2,588,081 |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Note 6 — Property and equipment, net Property and equipment, net consist of the following: As of As of December 31, 2023 December 31, 2022 USD USD Building $ 946,066 $ 946,066 Leasehold Improvements 1,695,361 1,074,206 Machinery and equipment 1,613,439 2,246,610 Furniture and fixtures 259,449 516,310 Vehicles 147,912 147,913 Molds 26,377 26,377 Subtotal 4,688,604 4,957,482 Less: accumulated depreciation (2,778,113) (3,687,511) Total $ 1,910,491 $ 1,269,971 Depreciation expenses for the years ended December 31, 2023 and 2022 amounted to $200,764 and $175,979, respectively, which were included in general and administrative expenses on the consolidated statements of income and comprehensive income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 7 — Leases The Company has operating leases primarily for corporate offices, warehouses and showrooms. As of December 31, 2023, the Company’s leases have remaining lease terms up to 9.4 years. The Company also purchased an operating lease land from For the years ended December 31, 2023, and 2022, the total lease expenses was $2,581,542 and $1,239,353 respectively. The table below presents the operating lease related assets and liabilities recorded on the Company’s consolidated balance sheets: As of As of December 31, 2023 December 31, 2022 USD USD Operating lease right-of-use assets $ 15,203,576 $ 9,815,572 Operating lease liabilities – current $ 1,595,998 $ 1,543,031 Operating lease liabilities – noncurrent 13,674,452 7,847,317 Total operating lease liabilities $ 15,270,450 $ 9,390,348 Information relating to the lease term and discount rate are as follows: As of As of December 31, 2023 December 31, 2022 Weighted-average remaining lease term Operating leases 9.4 years 7.9 years Weighted-average discount rate Operating leases 5.7% 4.7% As of 31, 2023, the maturities of operating lease liabilities were as follows: For the 12 months ending December 31, 2024 $ 2,428,743 2025 2,605,218 2026 2,669,007 2027 2,658,505 2028 2,267,101 Thereafter 7,108,025 Total lease payments 19,736,599 Less: imputed interest (4,466,149) Present value of lease liabilities $ 15,270,450 |
Short-term Loans
Short-term Loans | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Short-term Loans | Note 8 — Short-term loans East West Bank loan FGI Industries, Inc. (formerly named Foremost Groups, Inc.) (“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 49.89% of the voting control of Foremost. On November 25, 2022, the line was extended, to a new maturity date of December 21, 2024, and the current amount of maximum borrowings is $18,000,000. 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) of not less than 1.25 to 1, tested at the end of each fiscal quarter; (b) an effective tangible net worth (defined as total book net worth plus minority interest, less amounts due from officers, shareholders and affiliates, minus intangible assets and accumulated amortization, plus debt subordinated to East West Bank) of not less than $10,000,000 on consolidated basis; and (c) a total debt to tangible net worth ratio (defined as total liabilities divided by tangible net worth, which is defined as total book net worth plus minority interest, less loans to officers, shareholders, and affiliates minus intangible assets and accumulated amortization) not to exceed 4.0 to 1, tested at the end of each fiscal quarter, on consolidated basis. As of December 31, 2023 and 2022, FGI Industries was in compliance with these financial covenants. As of the date of the report, FGI Industries is in the process of obtaining extension for Corporate Borrower Annual Statements, a U.S. standalone reporting obligation, which will be due by April 30, 202 4 . If the condition is not met , East West Bank has the right to close the line of credit . The loan bears interest at rate equal to, at the Company’s option, either (i) 0.25 percentage points less than the Prime Rate quoted by the Wall Street Journal or (ii) the SOFR Rate (as administered by CME Group Benchmark Administration Limited and displayed by Bloomberg LP) plus 2.20% per annum (in either case, subject to a minimum rate of 4.500% per annum) Each sum of borrowings under the Credit Agreement is deemed due on demand and is classified as a short-term loan. The outstanding balance of such loan was $6,959,175 and $9,795,052 as of December 31, 2023 and 2022, respectively. HSBC Canada Bank Loan / Foreign Exchange Facility FGI Canada Ltd. has a line of credit agreement with HSBC Canada (the “Canadian Revolver”). The revolving line of credit with HSBC Canada allows for borrowing up to CAD $7,500,000 (US $5,662,087 as of the December 31, 2023 exchange rate). 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 Canadian Revolver, FGI Canada Ltd. is required to maintain (a) a debt to tangible net worth ratio of no more than 3.00 to 1.00; and (b) a ratio of current assets to current liabilities of at least 1.25 to 1.00. The loan bears interest at a rate of Prime rate plus 0.50%. As of December 31, 2023 and 2022, FGI Canada Ltd. was in compliance with these financial covenants. Borrowings under this line of credit amounts to $0 as of December 31, 2023 and 2022. The facility matures FGI Canada Ltd. also has a revolving foreign exchange facility with HSBC Canada of up to a permitted maximum of US $3,000,000. The advances are available to purchase foreign exchange forward contacts from time to time up to six months, subject to an overall maximum aggregate USD Equivalent outstanding face value not exceeding $3,000,000. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Note 9 — Shareholders’ Equity FGI was incorporated in the Cayman Islands on May 26, 2021 in connection with the planned Reorganization, as described in Note 1. The Company was authorized to issue 50,000,000 ordinary shares with a par value of $0.001 per share. On January 27, 2022, the Company completed the Reorganization upon the consummation of the initial public offering (“IPO”). After the Reorganization and the IPO, the Company’s authorized share capital is $21,000 divided into (i) 200,000,000 Ordinary Shares of par value of $0.0001 each, and (ii) 10,000,000 Preference Shares of par value of $0.0001 each; 9,500,000 ordinary shares were issued and outstanding accordingly. The Company believes it is appropriate to reflect these share issuances as nominal share issuances on a retroactive basis similar to a stock split pursuant to ASC 260. The Company has retroactively adjusted all shares and per share data for all the periods presented. Initial Public Offering On January 27, 2022, the Company consummated its IPO of 2,500,000 units (“Units”), each consisting of (i) one ordinary share, $0.0001 par value per share, of the Company (the “Shares”), and (ii) one warrant of the Company (the “Warrants”) entitling the holder to purchase one Share at an exercise price of $6.00 per Share. The Shares and Warrants were issued separately in the offering, and may be transferred separately immediately upon issuance. The Units were sold at a price of $6.00 per Unit. The Warrants included in the units were immediately exercisable following the consummation of the offering, have an exercise price equal to the initial public offering price, and expire five years from the date of issuance. For the purposes of covering any over-allotments in connection with the distribution and sale of the Units, the Company granted a 45-day option to the underwriters to purchase (the “Over-allotment Option”), in the aggregate, up to 375,000 ordinary shares (the “Option Shares”) and Warrants to purchase up to 375,000 ordinary shares (the “Option Warrants”), which was exercisable The aggregated fair value of these Warrants on January 27, 2022 was $4.16 million. The fair value has been estimated using the Black-Scholes pricing model The gross proceeds from the IPO were approximately $15.00 million with net proceeds of approximately $12.4 million, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by the Company. Immediately following the consummation of the IPO, there were an aggregate of 9,500,000 ordinary shares issued and outstanding. As a result of the IPO, the ordinary shares and Warrants now trade on the Nasdaq Capital Market under the symbol “FGI” and “FGIWW,” respectively. Public Offering Warrants In connection with and upon the closing of the IPO on January 27, 2022, the Company issued warrants equal to 2% of the Shares issued in the IPO, or 50,000 ordinary shares, to the representative of the underwriters for the IPO. The warrants carry a term of five years, shall not be exercisable for a period of 180 days from the closing of the IPO and shall be exercisable at a price equal to the IPO price per share. Management determined that these warrants meet the definition of a derivative under ASC 815-40; however, they fall under the scope exception, which states that contracts issued that are both a) indexed to its own stock; and b) classified in shareholders' equity are not considered derivatives. The warrants were recorded at their fair value on the date of grant as a component of equity. The aggregated fair value of these IPO warrants on January 27, 2022 was $0.1 million. The fair value has been estimated using the Black-Scholes pricing model |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | Note 10 — Share-based compensation 2021 Equity Plan and Employee Stock Purchase Plan On October 7, 2021, the Board of directors adopted 2021 Equity Incentive Plan (the “2021 Equity Plan”). The 2021 Equity Plan permits On October 7, 2021, the Board approved the adoption of the FGI Industries Ltd. Employee Stock Purchase Plan (the “ESPP”). The ESPP was approved by the Company’s stockholders on October 7, 2021, and became effective on the effective date of the Company’s consummation of the IPO of its ordinary shares. The ESPP offers eligible employees the opportunity to acquire a stock ownership interest in the Company through periodic payroll deductions that will be applied towards the purchase of ordinary shares at a discount from the then-current market price. The board set the maximum aggregate number of ordinary shares reserved and available pursuant to the 2021 Equity Plan at 1,500,000 shares. The number of ordinary shares reserved for issuance under our 2021 Equity Plan will automatically increase on the first day of each year, commencing on January 1, 2022 and ending on (and including) January 1, 2031, in an amount equal to the lesser of (a) 4.5% of the total number of ordinary shares outstanding on December 31 of the immediately preceding calendar year, (b) 600,000 ordinary shares, or (c) such lesser number of shares as determined by the Board. The Equity Plan became effective on September 28, 2021. The Company believes the options or awards granted contain an explicit service condition and/or performance condition. Under ASC 718-10-55-76, if the vesting (or exercisability) of an award is based on the satisfaction of both a service and performance condition, the entity must initially determine which outcomes are probable and recognize the compensation cost over the longer of the explicit or implicit service period. Because an initial public offering generally is not considered to be probable until the initial public offering is effective, no compensation cost was recognized until the IPO occurred. Restricted shares units (“RSU”) On January 27, 2022, the board of directors approved the issuance of 183,750 restricted share units (“RSUs”) to certain officers and employees under the 2021 Equity Plan as compensation awards. The fair value for these RSUs was $716,625 based on the closing share price of $3.90 as at January 27, 2022. These awards will vest in three equal installments on each anniversary of the grant date over three years. As of December 31, 2023, 61,250 of these granted RSUs were vested. On April 13, 2022, the board of directors approved the issuance of 8,750 RSUs to an employee under the 2021 Equity Plan as compensation awards. The fair value for these RSUs was $22,050 based on the closing share price of $2.52 as at April 13, 2022. These awards will vest as to one On May 11, 2022, the board of directors approved the issuance of 87,611 RSUs under the 2021 Equity Plan to Company officers to incentivize their performance and continue to align their interests with the Company’s shareholders. All these awards are subjected to performance conditions through December 31, 2024. The grant date fair value for these RSUs was $198,000 based on the closing share price of $2.26 as at May 11, 2022. As of December 31, 2023, the performance condition was not met, and On May 17, 2022, the board of directors approved the issuance of 16,363 to its independent directors under the 2021 Equity Plan as compensation award. All these awards are subjected to performance conditions and will vest on December 31, 2024. The fair value for these RSUs was $36,000 based on the closing share price of $2.20 as at May 17, 2022. As of December 31, 2023, none of these RSUs were vested. On March 23, 2023, the board of directors approved the issuance of 96,635 RSUs under the 2021 Equity Plan to Company officers to incentivize their performance and continue to align their interests with the Company’s shareholders. All these awards are subjected to performance conditions through December 31, 2025. The grant date fair value for these RSUs was $201,000 based on the closing share price of $2.08 as at March 29, 2023. If the maximum performance is met, the Company will issue an additional 48,317 RSUs under these awards with a grant date fair value of $100,500 . As of December 31 , 2023, none of these RSUs were vested. On March 23, 2023, the board of directors approved the issuance of 17,349 RSUs to its independent directors under the 2021 Equity Plan as compensation award. All these awards are subjected to performance conditions through December 31, 2025. The grant date fair value for these RSUs was $36,000 based on the closing share price of $2.08 as at March 29, 2023. As of December 31, 2023, none of these RSUs were vested. The following is a summary of the restricted share granted: Restricted shares grants Shares Non-vested as of January 1, 2022 — Granted 296,474 Vested — Canceled — Non-vested as of December 31, 2022 296,474 Granted 113,984 Vested (66,111) Canceled (87,611) Non-vested as of December 31, 2023 256,736 The following is a summary of the status of restricted share at December 31, 2023: Outstanding Restricted Share Average Remaining Fair Value per share Number Amortization Period (Years) $ 3.90 122,500 1.08 $ 2.52 3,889 1.25 $ 2.20 16,363 1.00 $ 2.08 96,635 2.25 $ 2.08 17,349 2.25 256,736 Share options (“Options”) On March 24, 2022, the board of directors approved the issuance of 98,747 share options under the 2021 Equity Plan with an exercise price per share of $3.07 and a contractual life of 10 years to the Company’s executive officers and directors to incentivize their performance and continue to align their interests with the Company’s shareholders. The grant date fair value for these options was $141,401 determined using the Black-Scholes simplified method at the per option fair value of $1.43. All these options will vest as to one On April 13, 2022, the board of directors approved the issuance of 97,371 share options under the 2021 Equity Plan with an exercise price per share of $2.52 and a contractual life of 10 years to the Company’s employees to incentivize their performance and continue to align their interests with the Company’s shareholders. The grant date fair value for these options was $114,972 determined using the Black-Scholes simplified method at the per option fair value of $1.18. All these options will vest as to one On May 11, 2022, the board of directors approved the issuance of 159,881 share options under the 2021 Equity Plan with an exercise price per share of $2.26 and a contractual life of 10 years to Company officers to incentivize their performance and continue to align their interests with the Company’s shareholders. The fair value for these options was $171,462 determined using the Black-Scholes simplified method at the per option fair value of $1.07. The number of options granted were subject to performance conditions through December 31, 2022, which could have resulted in additional options awarded if maximum performance metrics were met. In addition to the performance criteria, the options vest as to one On March 23, 2023, the board of directors approved the issuance of 158,976 share options under the 2021 Equity Plan with an exercise price per share of $2.08 and a contractual life of 10 years to Company officers to incentivize their performance and continue to align their interests with the Company’s shareholders. The grant date fair value for these options was $201,000 determined using the Black-Scholes simplified method at the per option fair value of $1.26. All these options are subjected to performance conditions through December 31, 2023, which could result in additional options awarded if maximum performance metrics are met. In addition to the performance criteria, the options will vest as to one The options granted to employees are measured based on the grant date fair value of the equity instrument. They are accounted for as equity awards and contain service or performance vesting conditions. The following table summarizes the Company’s employee share option activities: Weighted Weighted Weighted Average Average Average Grant date Remaining Average Number of Exercise Fair Contractual Intrinsic Options Price Value Term value USD USD Years USD Share options outstanding at December 31, 2022 380,745 2.54 1.19 9.35 — Granted 158,976 2.08 1.26 9.75 — Forfeited 183,722 — — — — Exercised — — — — — Expired — — — — — Share options outstanding at December 31, 2023 355,999 3.48 1.77 8.29 — Vested and exercisable at December 31, 2023 196,079 2.57 1.21 8.29 — For the years ended December 31, 2023 and 2022, the total fair value of options awarded was $628,834 and $454,373, respectively. The aggregate intrinsic value in the table above represents the difference between the exercise price of the awards and the fair value of the underlying Ordinary Shares at each reporting date, for those awards that had exercise price below the estimated fair value of the relevant Ordinary Shares. Fair value of options The Company used the Black-Scholes simplified method for the year ended December 31, 2023. The assumptions used to value the options granted to employees were as follows: For the For the Year Ended Year Ended December 31, December 31, 2023 2022 Risk-free interest rate 3.65 % 2.49 - 2.92 % Expected volatility range 63.36 % 40.30 - 45.67 % Fair market value per ordinary share as at grant dates $ 2.08 $ 2.26 - 3.07 The risk-free interest rate for periods within the contractual life of the options is based on the U.S. Treasury yield curve in effect at the time of grant for a term consistent with the contractual term of the awards. Expected volatility is estimated based on the volatility of ordinary shares or common stock of several comparable companies in the same industry. The expected exercise multiple is based on management’s estimation, which the Company believes is representative of the future. The Company has elected to recognize share-based compensation expense using a straight-line method for all the employee equity awards granted with graded vesting based on service conditions, provided that the amount of compensation cost recognized at any date is at least equal to the portion of the grant date fair value of the equity awards that are vested at that date. The following table sets forth the amount of share-based compensation expense included in each of the relevant financial statement line items: For the Year Ended December 31, 2023 2022 USD USD Selling and distribution expenses $ 124,994 $ 108,694 General and administrative expenses 292,984 274,878 Total share-based compensation expenses $ 417,978 $ 383,572 As of December 31, 2023, there was $637,956 in total unrecognized employee share-based compensation expense related to unvested options and RSUs, which may be adjusted for actual forfeitures occurring in the future. Total unrecognized compensation cost may be recognized over a weighted-average period of 1.46 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 — Income taxes The source of pre-tax income and the components of income tax expense are as follows: For the Years Ended December 31, 2023 2022 USD USD Income components United States $ (681,951) $ 991,240 Outside United States 2,069,739 3,549,310 Total pre-tax income $ 1,387,788 $ 4,540,550 Provision for income taxes Current Federal $ 27,451 $ 54,504 State 13,555 9,923 Foreign 670,512 594,267 711,518 658,694 Deferred Federal 24,622 146,843 State 92,271 52,034 Foreign (20,187) 3,059 96,706 201,936 Total provision for income taxes $ 808,224 $ 860,630 Reconciliations between taxes at the U.S. federal income tax rate and taxes at the Company’s effective income tax rate on earnings before income taxes are as follows: For the Years Ended December 31, 2023 2022 Federal statutory rate 21.0 % 21.0 % (Decrease) increase in tax rate resulting from: State and local income taxes, net of federal benefit (0.5) 1.0 Foreign operations 15.1 (3.3) Permanent items 3.1 0.1 Deferred adjustments 16.8 — Others 2.7 0.1 Effective tax rate 58.2 % 18.9 % The following is a summary of the components of the net deferred tax assets and liabilities recognized in the consolidated balance sheets: As of As of December 31, 2023 December 31, 2022 USD USD Deferred tax assets Allowance for credit losses $ 58,476 $ 109,713 Other reserve 61,371 144,333 Accrued expenses 143,823 126,992 Lease liability 1,769,328 2,144,348 Charitable contributions 8,181 8,565 Business interest limitation 242,862 385,069 Net operating loss – federal 310,099 414,905 Net operating loss – state 27,337 75,863 Other 66,063 46,005 Total deferred tax assets 2,687,540 3,455,793 Less: valuation allowance — — Net deferred tax assets 2,687,540 3,455,793 Deferred tax liabilities Fixed assets 1,728,364 2,190,254 Intangibles (209,657) — Total deferred tax liabilities 1,518,707 2,190,254 Deferred tax assets, net of deferred tax liabilities $ 1,168,833 $ 1,265,539 The deferred tax assets related to the Company’s net operating losses of $1,836,077 (Federal $1,476,655 and States $359,422) and $3,174,799 (Federal $1,975,734 and States $1,199,065) as of December 31, 2023 and 2022, 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 December 31, 2023, 2022. 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. Inflation Reduction Act of 2022 On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. There was no material impact of the IR Act on the Company ’ s consolidated financial statements. |
Related Party Transactions and
Related Party Transactions and Balances | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions and Balances | Note 12 — Related party transactions and balances Sales/ Purchase from a related party – consisted of the following: Nature of For the Year Ended December 31, Name of Related Party Relationship transactions 2023 2022 USD USD Focal Capital Holding Limited An entity under common control Purchase $ 7,003,714 $ 9,850,083 Foremost Worldwide Co., Ltd An entity under common control Purchase 2,308,468 5,812,457 F.P.Z. FURNITURE (CAMBODIA) CO., LTD An entity under common control Purchase 575,061 — Foremost Australasia Pty Ltd An entity under common control Purchase 409,777 — RIZHAO FOREMOST WOODWORK MANUFACTURING CO. LTD An entity under common control Purchase 16,026 — $ 10,313,046 $ 15,662,540 Nature of For the Year Ended December 31, Name of Related Party Relationship transactions 2023 2022 USD USD Foremost Worldwide Co., Ltd An entity under common control Sales $ — $ 593,578 $ — $ 593,578 The ending balance of such transactions as of December 31, 2023 and December 31, 2022, are listed of the following: Prepayments — related parties As of As of December 31, December 31, Name of Related Party 2023 2022 USD USD Focal Capital Holding Limited $ 6,658,498 $ 3,806,873 Rizhao Foremost Woodwork Manufacturing Co., Ltd. 9,181 — $ 6,667,679 $ 3,806,873 Accounts Payables — related parties As of As of December 31, December 31, Name of Related Party 2023 2022 USD USD Foremost Worldwide Co., Ltd $ 735,308 $ 104,442 $ 735,308 $ 104,442 Shared Service and Miscellaneous expenses – related party FGI Industries, Inc. is party to the FHI Shared Services Agreement with FHI. Total amounts provided to FHI under the FHI Share Services Agreement for the years ended December 31, 2023 and 2022 were $821,864 and $1,122,996, respectively, which were booked under selling and distribution expenses and administration expenses. FGI is party to the Worldwide Shared Services Agreement with Foremost Worldwide. Total amounts provided from Foremost Worldwide under the Worldwide Shared Services Agreement for the years ended December 31, 2023 and 2022 were $304,103 and $126,745, respectively. The ending balance as of December 31, 2023 and December 31, 2022, are listed of the following : As of As of Nature of December 31, December 31, Name of Related Party Relationship transactions 2023 2022 USD USD Foremost Home Inc. (“FHI”) An entity under common control Shared services and Miscellaneous 1,183,612 1,879,249 Foremost Worldwide Co., Ltd An entity under common control Shared services and Miscellaneous (251,008) (42,473) $ 932,604 $ 1,836,776 Property purchase — related party In July 2022, FGI entered into a property purchase agreement with a common control related party to purchase a building and sub-lease the land use right with an initial term of 50 years in amount of $1,963,521. As building and sub-lease the land use right were recorded at historic cost in amount of $946,066 and $519,450, respectively. The excess payment over carrying value $498,005 was recorded under shareholders equity statement. Loan guarantee by a related party Liang Chou Chen holds approximately 49.89% of the voting control of Foremost, the Company’s majority shareholder and guarantor of the loan obtained by FGI Industries from East West Bank under the Credit Agreement. See Note 8 for details. |
Concentrations of Risks
Concentrations of Risks | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risks | Note 13 — Concentrations of risks Credit Risk Financial 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 CAD 0.1 million (approximately USD 0.1 million) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2023, cash balance of CAD 5.8 million (USD 4.4 million) was maintained at financial institutions in Canada, of which CAD 5.7 million (USD 4.3 million) was subject to credit risk. The Taiwan Central Deposit Insurance Corporation pays compensation up to a limit of NTD 3.0 million (approximately USD 0.1 million) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2023, an aggregated cash balance of USD 2.8 million, consisted from four bank accounts, was maintained at financial institutions in Taiwan, of which USD 2.5 million was subject to credit risk. The European Banking Authority pays compensation up to a limit of EUR 0.1 million (approximately USD 0.1 million) if the bank with which an individual/a company holds its eligible deposit fails. As of December 31, 2023, cash balance of EUR 0.2 million (USD 0.2 million) was maintained at financial institutions in Europe, of which EUR 0.1 million (USD 0.1 million) was subject to credit risk. As of December 31, 2023, cash balance of USD 28,871 was maintained at financial institutions in Kingdom of Cambodia, of which USD 28,871 was subject to credit risk. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. The Company is also exposed to risk from its accounts receivable and other receivables. These assets are subjected to credit evaluations. An allowance has been made for estimated unrecoverable amounts which have been determined by reference to past default experience and the current economic environment. Customer concentration risk For the year ended December 31, 2023, three customers accounted for 17.6%, 16.4% and 10.4% of the Company’s total revenues, respectively. For the year ended December 31, 2022, two customers accounted for 22.2% and 22.1% of the Company’s total revenues, respectively. No other customer accounts for more than 10% of the Company’s revenue for the years ended December 31, 2023 and 2022. As of December 31, 2023, four customers accounted for 27.2%, 19.0%, 12.0% and 11.1% of the total balance of accounts receivable, respectively. As of December 31, 2022, two customers accounted for 36.7% and 13.6% of the total balance of accounts receivable, respectively. No other customer accounts for more than 10% of the Company’s accounts receivable as of December 31, 2023, and 2022. Vendor concentration risk For the year ended December 31, 2023, Tangshan Huida Ceramic Group Co., Ltd (“Huida”) accounted for 54.7% of the Company’s total purchases. For the year ended December 31, 2022, Huida accounted for 51.8% of the Company’s total purchases. No other supplier accounts for more than 10% of the Company’s total purchases for the years ended December 31, 2023 and 2022. As of December 31, 2023, Huida accounted for 71.4% of the total balance of accounts payable. As of December 31, 2022, Huida accounted for 85.5% of the total balance of accounts payable. No other supplier accounts for more than 10% of the Company’s accounts payable as of December 31, 2023 and 2022. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14 — Commitments and contingencies Litigation From time to time, the Company is involved in legal and regulatory proceedings that are incidental to the operation of its businesses. These proceedings may seek remedies relating to matters including environmental, tax, intellectual property, acquisitions or divestitures, product liability, property damage, personal injury, privacy, employment, labor and pension, government contract issues and commercial or contractual disputes. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including management assessment of the merits of the particular claims, the Company does not believe it is reasonably possible that any asserted or unasserted legal claims or proceedings, individually or in aggregate, will have a material adverse effect on our results of operations, or financial condition. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15 — Segment information The Company follows ASC 280, Segment Reporting, which requires that companies disclose segment data based on how management makes decisions about allocating resources to each segment and evaluating their performances. The Company has one reporting segment. The Company’s chief operating decision maker has been identified as the chief executive officer, who reviews consolidated results when making decisions about allocating resources and assessing performance of the Company and hence the Company has only one reportable segment. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16 — Subsequent events On January 25, 2024, FGI International entered into an omnibus credit line (the “Credit Line”) with CTBC Bank Co., Ltd. (“CTBC”). Under the Credit Line, FGI International may borrow, from time to time, up to $2.3 million, with borrowings limited to 90% of FGI International’s export “open account” trade receivables. The Credit Line will bear interest at a rate of “Base Rate”, which is based on monthly or quarterly Taipei Interbank Offered in effect from time to time, plus 120 base points and handling fees, unless otherwise agreed to by the parties. The Credit Line is unsecured and is fully guaranteed by the Company and partially guaranteed by Liang Chou Chen. On March 20, 2024, the board of directors approved the issuance of 529,635 share options under the 2021 Equity Plan with an exercise price per share of $1.50 and a contractual life of 10 years to Company officers to incentivize their performance and continue to align their interests with the Company’s shareholders. The grant date fair value for these options was $447,000 determined using the Black-Scholes simplified method at the per option fair value of $0.84. All these options are subjected to performance conditions through December 31, 2024, which could result in additional options awarded if maximum performance metrics are met. In addition to the performance criteria, the options will vest as to one On March 20, 2024, the board of directors approved the issuance of 411,548 RSUs under the 2021 Equity Plan to the Company’s directors, officers and employees. All these awards are subjected to performance conditions through December 31, 2026. The grant date fair value for these RSUs was $ 617,322 based on the closing share price of $ 1.50 as at March 2 2 , 202 4 . If the maximum performance is met, the Company will issue an additional 205,774 RSUs under these awards with a grant date fair value of $ 308,661 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Liquidity | Liquidity Historically, the Company finances its operations through internally generated cash, short-term loans and payables. As of December 31, 2023, the Company had approximately $7.8 million in cash and cash equivalents, which primarily consists of cash on hand and bank deposits, which are unrestricted as to withdrawal and use. As of the date of the report, FGI Industries is in the process of obtaining extension for Corporate Borrower Annual Statements, a U.S. standalone reporting obligation, which will be due by April 30, 2024. If the condition is not met, East West Bank has the right to close the line of credit, please refer to Note 8 – Short-term loans. If the Company is unable to realize its assets within the normal operating cycle of a twelve (12) month period, the Company may have to consider supplementing its available sources of funds through the following sources: · · · Based on the above considerations, the Company’s management is of the opinion that it has sufficient funds to meet the Company’s working capital requirements and debt obligations as they become due over the next twelve (12) months. |
Basis of presentation | Basis of presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commissions (the “SEC”), regarding financial reporting, and include all normal and recurring adjustments that management of the Company considers necessary for a fair presentation of its financial position and operation results. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation. Subsidiaries are those entities which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at a meeting of directors. |
Use of estimates and assumptions | Use of estimates and assumptions The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Significant accounting estimates reflected in the Company’s consolidated financial statements include the useful lives of property and equipment, allowance for credit losses, inventory reserve, accrued defective return, provision for contingent liabilities, revenue recognition, deferred taxes and uncertain tax position. Actual results could differ from these estimates. |
Foreign currency translation and transaction | Foreign currency translation and transaction The functional currencies of the Company and its subsidiaries are the local currency of the country in which the subsidiaries operate, except for FGI International which is incorporated in Hong Kong while adopting the United States Dollar (“U.S. Dollar” or “USD”) as its functional currency. The reporting currency of the Company is the U.S. Dollar. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. The results of operations and the cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income included in the consolidated statements of changes in shareholders’ equity. Transaction gains and losses arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency in the consolidated statements of income and comprehensive income. For the purpose of presenting the financial statements of subsidiaries using the Renminbi (“RMB”) as functional currency, the Company’s assets and liabilities are expressed in U.S. Dollars at the exchange rate on the balance sheet date, which was 7.1006 and 6.9653 as of December 31, 2023 and 2022, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which was 7.0945 and 6.7164 the years ended December 31, 2023 and 2022, respectively. For the purpose of presenting the financial statements of the subsidiary using the Canadian Dollar (“CAD”) as functional currency, the Company’s assets and liabilities are expressed in U.S. Dollars at the exchange rate on the balance sheet date, which was 1.3246 and 1.3541 as of December 31, 2023 and 2022, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which was 1.3541 and 1.2945 for the years ended December 31, 2023 and 2022, respectively. For the purpose of presenting the financial statements of the subsidiary using the Euro (“EUR”) as functional currency, the Company’s assets and liabilities are expressed in U.S. Dollars at the exchange rate on the balance sheet date, which was 0.9059 and 0.9338 as of December 31, 2023 and 2022, respectively; shareholders’ equity accounts are translated at historical rates, and income and expense items are translated at the average exchange rate during the period, which was 0.9527 and 0.9474 for the years ended December 31, 2023 and 2022, respectively. |
Cash | Cash Cash consists of cash on hand and demand deposits placed with banks or other financial institutions that have original maturities of three months or less. The Company did not have any cash equivalents as of December 31, 2023 and 2022. |
Accounts receivable, net | Accounts receivable, net Accounts receivables include trade accounts due from customers. In establishing the required allowance for credit losses, management considers historical collection experience, aging of the receivables, the economic environment, industry trend analysis, and the credit history and financial conditions of the customers. Management reviews its receivables on a regular basis to determine if the expected credit losses is adequate and adjusts the allowance when necessary. Delinquent account balances are written off against allowance for credit losses after management has determined that the likelihood of collection is not probable. |
Inventories, net | Inventories, net Inventories are stated at the lower of cost and net realizable value. Cost consists of purchase price and related shipping and handling expenses, and is determined using the weighted average cost method, based on individual products. The methods of determining inventory costs are used consistently from year to year. A provision for slow-moving items is calculated based on historical experience. Management reviews this provision annually to assess whether, based on economic conditions, it is adequate. |
Prepayments | Prepayments Prepayments are cash deposited or advanced to suppliers for the purchase of goods or services that have not been received or provided. This amount is refundable and bears no interest. Prepayments and deposits are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. |
Property and equipment, net | Property and equipment, net Property and equipment are stated at cost net of accumulated depreciation and impairment. Depreciation is provided over the estimated useful lives of the assets using the straight-line method from the time the assets are placed in service. Estimated useful lives are as follows: Useful Life Building 20 years Leasehold Improvements Lesser of lease term and expected useful life Machinery and equipment 3 – 5 years Furniture and fixtures 3 – 5 years Vehicles 5 years Molds 3 – 5 years |
Intangible assets, net | Intangible assets, net The Company’s intangible assets with definite useful lives primarily consist of software acquired for internal use. The Company amortizes its intangible assets with definite useful lives over their estimated useful lives and reviews these assets for impairment. The Company typically amortizes its intangible assets with definite useful lives on a straight-line basis over the estimated useful lives of ten years. |
Impairment for long-lived assets | Impairment for long-lived assets Long-lived assets, including property and equipment and intangible assets with definite useful lives, are reviewed for impairment whenever material events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying value of an asset group may not be recoverable. The Company assesses the recoverability of an asset group based on the undiscounted future cash flows the asset group is expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset group plus net proceeds expected from disposition of the asset group, if any, are less than the carrying value of the asset group. If an impairment is identified, the Company would reduce the carrying amount of the asset group to its estimated fair value based on a discounted cash flows approach or, when available and appropriate, to comparable market values. As of December 31, 2023 and 2022, no impairment of long-lived assets was recognized. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use assets (“ROU assets”), operating lease liabilities — current and operating lease liabilities — noncurrent on the consolidated balance sheets. ROU assets represent our right to use an underlying asset for the duration of the lease term while lease liabilities represent the Company’s obligation to make lease payments in exchange for the right to use an underlying asset. ROU assets and lease liabilities are measured based on the present value of fixed lease payments over the lease term at the commencement date. The ROU asset also includes any lease payments made prior to the commencement date and initial direct costs incurred, and is reduced by any lease incentives received. The Company reviews its ROU assets as material events occur or circumstances change that would indicate the carrying amount of the ROU assets are not recoverable and exceed their fair values. If the carrying amount of an ROU asset is not recoverable from its undiscounted cash flows, then the Company would recognize an impairment loss for the difference between the carrying amount and the current fair value. As most of the Company’s leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate on the commencement date of the lease as the discount rate in determining the present value of future lease payments. The Company determines the incremental borrowing rate for each lease by using the incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The Company’s lease terms may include options to extend or terminate the lease when there are relevant economic incentives present that make it reasonably certain that the Company will exercise that option. The Company accounts for any non- lease components separately from lease components. Lease expense for lease payments is recognized on a straight-line basis over the lease term. |
Fair Value Measurement | Fair Value Measurement The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company. The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels of the fair value hierarchy are as follows: ● Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value. Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. |
Revenue recognition | Revenue recognition The Company recognized revenue in accordance with Accounting Standards Codification (“ASC”) 606 – Revenue from Contracts with Customer. Revenues are recognized when control of the promised goods or performance obligations for services is transferred to the Company’s customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services. The Company generates revenues from sales of kitchen and bath products, and recognizes revenue as control of its products is transferred to its customers, which is generally at the time of shipment or upon delivery based on the contractual terms with the Company’s customers. The Company’s customers’ payment terms generally range from 15 to 60 days of fulfilling its performance obligations and recognizing revenue. The Company provides customer programs and incentive offerings, including co-operative marketing arrangements and volume-based incentives. These customer programs and incentives are considered variable consideration. The Company includes in revenue variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the variable consideration is resolved. This determination is made based upon known customer program and incentive offerings at the time of sale, and expected sales volume forecasts as it relates to the Company’s volume- based incentives. This determination is updated on a monthly basis. Certain product sales include a right of return. The Company estimates future product returns at the time of sale based on historical experience and records a corresponding reduction in accounts receivable. The Company records receivables related to revenue when it has an unconditional right to invoice and receive payment. The Company’s disaggregated revenues are summarized as follows: For the Years Ended December 31, 2023 2022 USD USD Revenues by product line Sanitaryware $ 75,551,117 $ 104,806,342 Bath Furniture 14,770,376 29,519,728 Shower System 19,997,197 21,586,888 Others 6,922,914 5,805,585 Total $ 117,241,604 $ 161,718,543 Revenues Total assets For the Years Ended As of December 31, December 31, 2023 2022 2023 2022 USD USD USD USD Revenues/ total assets by geographic location United States $ 74,572,336 $ 103,255,662 $ 38,401,665 $ 38,364,005 Canada 31,092,989 41,025,288 17,850,709 14,584,946 Europe 11,477,070 16,844,015 528,068 343,946 Rest of World 99,209 593,578 8,964,488 7,074,033 Total $ 117,241,604 $ 161,718,543 $ 65,744,930 $ 60,366,930 Shipping and Handling Costs Shipping and handling costs are expensed as incurred and are included in selling and distribution expenses on the accompanying statement of operations. For the years ended December 31 2023 and 2022, shipping and handling expense was $711,640 and $842,827, respectively. |
Share-based compensation | Share-based compensation The 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, with the assistance of an independent third-party valuation firm, 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 |
Income Taxes | Income Taxes Deferred taxes are recognized based on the future tax consequences of the differences between the carrying value of assets and liabilities and their respective tax basis. 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 evidence, both positive and negative, it is more likely than not (i.e., more than 50 percent likely) that such deferred tax assets will not be realized, a valuation allowance is recorded. Significant weight is given to positive and negative evidence that is objectively verifiable. A company’s three- year cumulative loss position is significant negative evidence in considering whether deferred tax assets are realizable, and the accounting guidance restricts the amount of reliance we can place on projected taxable income to support the recovery of the deferred tax assets. The current accounting guidance allows the recognition of only those income tax positions that have a greater than 50 percent likelihood of being sustained upon examination by the taxing authorities. The Company believes that there is an increased potential for volatility in its effective tax rate because this threshold allows for changes in the income tax environment and, to a greater extent, the inherent complexities of income tax law in a substantial number of jurisdictions, which may affect the computation of its liability for uncertain tax positions. The Company records interest and penalties on our uncertain tax positions in income tax expense. As of December 31, 2023, the tax years ended December 31, 2020 through December 31, 2023 We record the tax effects of Foreign Derived Intangible Income (FDII) and Global Intangible Low-Taxed Income (GILTI) related to our foreign operations as a component of income tax expense in the period in which the tax arises. |
Non-controlling interests | Non-controlling interests The Company’s non-controlling interests represent the minority shareholders’ ownership interests related to the Company’s subsidiary, including 40% in Isla Porter LLC. The non-controlling interests are presented in the consolidated balance sheets, separate from equity attributable to the shareholders of the Company. Non-controlling interests in the results of operations of the Company are presented on the consolidated statements of income and comprehensive income as allocations of the net income or loss for the period between non-controlling shareholders and the shareholders of the Company. |
Comprehensive income | Comprehensive income Comprehensive income consists of two components: net income and other comprehensive income. Other comprehensive income refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of equity but are excluded from net income. Other comprehensive income consists of a foreign currency translation adjustment resulting from the Company not using the U.S. Dollar as its functional currencies. |
Earnings per share | Earnings per share The Company computes earnings per share (“EPS”) in accordance with ASC 260 – Earnings per Share (“ASC 260”). ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. The following table sets forth the computation of basic and diluted earnings per share for the year ended December 31, 2023 and 2022: For the Year Ended December 31, 2023 2022 USD USD Numerator: Net income attributable to FGI Industries Ltd. Shareholders $ 733,604 $ 3,679,920 Denominator: Weighted-average number of ordinary shares outstanding — 9,525,434 9,335,616 Potentially dilutive shares from outstanding options/warrants 295,678 6,305 Weighted-average number of ordinary shares outstanding — 9,821,112 9,341,921 Earnings per share — basic $ 0.08 $ 0.39 Earnings per share — diluted $ 0.07 $ 0.39 Potential ordinary shares that have an anti-dilutive effect are excluded from the calculation of diluted EPS. 355,999 and 2,925,000 number of options and warrants, respectively, were excluded from diluted EPS because their effects were anti-dilutive. |
Segment reporting | Segment reporting ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for detailing the Company’s business segments. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016 13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” amending the accounting for the impairment of financial instruments, including trade receivables. Under previous guidance, credit losses were recognized when the applicable losses had a probable likelihood of occurring and this assessment was based on past events and current conditions. The amended current guidance eliminates the “probable” threshold and requires an entity to use a broader range of information, including forecast information when estimating expected credit losses. Generally, this should result in a more timely recognition of credit losses. This guidance became effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted for interim and annual periods beginning after December 15, 2018. The requirements of the amended guidance should be applied using a modified retrospective approach except for debt securities, which require a prospective transition approach. In November 2019, the FASB issued ASU 2019 10, which finalized the delay of such effective date to fiscal years beginning after December 15, 2023 for private and all other companies, including emerging growth companies. As an emerging growth company, the Company adopted this guidance from January 1, 2023, and the adoption of the standard did not have an impact on its financial position or results of operation. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined not to be applicable. |
Nature of Business and Organi_2
Nature of Business and Organization (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of ownership interests | Name Background Ownership FGI Industries, Inc. ● 100% owned by FGI (formerly named Foremost Groups, Inc.) ● ● FGI Europe Investment Limited ● 100% owned by FGI ● FGI International, Limited ● 100% owned by FGI ● ● FGI Canada Ltd. ● 100% owned by FGI Industries, Inc. ● ● FGI Germany GmbH & Co. KG ● 100% owned by FGI Europe Investment Limited ● ● FGI China, Ltd. ● 100% owned by FGI International, Limited ● ● FGI United Kingdom Ltd ● 100% owned by FGI Europe Investment Limited ● ● FGI Australasia Pty Ltd ● 100% owned by FGI ● ● Covered Bridge Cabinetry Manufacturing Co., Ltd ● 100% owned by FGI ● ● Isla Porter LLC ● 60% owned by FGI Industries, Inc. ● ● |
Schedule of net results of reorganized operations | The following table sets forth the revenues, cost of revenues and operating expenses that were irrelevant to the K&B Business allocated from FGI Industries to Foremost Home, Inc. for years ended December 31, 2023 and 2022, respectively. For the Years Ended December 31, 2023 2022 USD USD Revenues $ 991,919 $ 34,470,623 Cost of revenues (768,065) (27,735,284) Gross profit 223,854 6,735,339 Selling and distribution expenses 45,979 (3,883,799) General and administrative expenses — (322,825) Research and development expenses — (219,346) Income from operations $ 269,833 $ 2,309,369 The following table sets forth the revenues, cost of revenues and operating expenses that were directly related to the K&B Business allocated from Foremost Worldwide Co., Ltd., a wholly-owned subsidiary of Foremost, to FGI International for years ended December 31, 2023 and 2022, respectively. For the Years Ended December 31, 2023 2022 USD USD Revenues $ — $ 25,022,960 Cost of revenues — (22,853,884) Gross profit — 2,169,076 Selling and distribution expenses — (517,408) General and administrative expenses — (466,872) Research and development expenses — (27,315) Income from operations $ — $ 1,157,481 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of property and equipment, net | Useful Life Building 20 years Leasehold Improvements Lesser of lease term and expected useful life Machinery and equipment 3 – 5 years Furniture and fixtures 3 – 5 years Vehicles 5 years Molds 3 – 5 years As of As of December 31, 2023 December 31, 2022 USD USD Building $ 946,066 $ 946,066 Leasehold Improvements 1,695,361 1,074,206 Machinery and equipment 1,613,439 2,246,610 Furniture and fixtures 259,449 516,310 Vehicles 147,912 147,913 Molds 26,377 26,377 Subtotal 4,688,604 4,957,482 Less: accumulated depreciation (2,778,113) (3,687,511) Total $ 1,910,491 $ 1,269,971 |
Schedule of disaggregated revenues by product line | For the Years Ended December 31, 2023 2022 USD USD Revenues by product line Sanitaryware $ 75,551,117 $ 104,806,342 Bath Furniture 14,770,376 29,519,728 Shower System 19,997,197 21,586,888 Others 6,922,914 5,805,585 Total $ 117,241,604 $ 161,718,543 |
Schedule of revenues and assets by geographic location | Revenues Total assets For the Years Ended As of December 31, December 31, 2023 2022 2023 2022 USD USD USD USD Revenues/ total assets by geographic location United States $ 74,572,336 $ 103,255,662 $ 38,401,665 $ 38,364,005 Canada 31,092,989 41,025,288 17,850,709 14,584,946 Europe 11,477,070 16,844,015 528,068 343,946 Rest of World 99,209 593,578 8,964,488 7,074,033 Total $ 117,241,604 $ 161,718,543 $ 65,744,930 $ 60,366,930 |
Schedule of earnings per share | For the Year Ended December 31, 2023 2022 USD USD Numerator: Net income attributable to FGI Industries Ltd. Shareholders $ 733,604 $ 3,679,920 Denominator: Weighted-average number of ordinary shares outstanding — 9,525,434 9,335,616 Potentially dilutive shares from outstanding options/warrants 295,678 6,305 Weighted-average number of ordinary shares outstanding — 9,821,112 9,341,921 Earnings per share — basic $ 0.08 $ 0.39 Earnings per share — diluted $ 0.07 $ 0.39 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | As of As of December 31, 2023 December 31, 2022 USD USD Accounts receivable $ 17,184,706 $ 16,330,540 Allowance for credit losses (244,879) (438,843) Accrued defective return and discount (744,284) (1,595,838) Accounts receivable, net $ 16,195,543 $ 14,295,859 |
Schedule of movements of allowance for doubtful accounts | For the Year Ended For the Year Ended December 31, December 31, 2023 2022 USD USD Beginning balance $ 438,843 $ 177,462 Addition 78,640 261,381 Write-off (272,604) — Ending balance $ 244,879 $ 438,843 |
Schedule of movements of accrued defective return and discount accounts | For the Year Ended For the Year Ended December 31, December 31, 2023 2022 USD USD Beginning balance $ 1,595,838 $ 3,292,101 Provision (851,554) (1,696,263) Ending balance $ 744,284 $ 1,595,838 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, net | Inventories, net consisted of the following: As of As of December 31, 2023 December 31, 2022 USD USD Finished product $ 10,565,858 $ 13,956,121 Reserves for slow-moving inventories (642,006) (663,530) Inventories, net $ 9,923,852 $ 13,292,591 Movements of inventory reserves are as follows: For the Year Ended For the Year Ended December 31, December 31, 2023 2022 USD USD Beginning balance $ 663,530 $ 544,158 Addition (21,524) 119,372 Ending balance $ 642,006 $ 663,530 |
Prepayments and Other Assets (T
Prepayments and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepayments and other assets | As of As of December 31, 2023 December 31, 2022 USD USD Prepayments $ 3,953,340 $ 2,026,259 Others 664,411 561,822 Total prepayments and other assets $ 4,617,751 $ 2,588,081 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | Useful Life Building 20 years Leasehold Improvements Lesser of lease term and expected useful life Machinery and equipment 3 – 5 years Furniture and fixtures 3 – 5 years Vehicles 5 years Molds 3 – 5 years As of As of December 31, 2023 December 31, 2022 USD USD Building $ 946,066 $ 946,066 Leasehold Improvements 1,695,361 1,074,206 Machinery and equipment 1,613,439 2,246,610 Furniture and fixtures 259,449 516,310 Vehicles 147,912 147,913 Molds 26,377 26,377 Subtotal 4,688,604 4,957,482 Less: accumulated depreciation (2,778,113) (3,687,511) Total $ 1,910,491 $ 1,269,971 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of leases | As of As of December 31, 2023 December 31, 2022 USD USD Operating lease right-of-use assets $ 15,203,576 $ 9,815,572 Operating lease liabilities – current $ 1,595,998 $ 1,543,031 Operating lease liabilities – noncurrent 13,674,452 7,847,317 Total operating lease liabilities $ 15,270,450 $ 9,390,348 Information relating to the lease term and discount rate are as follows: As of As of December 31, 2023 December 31, 2022 Weighted-average remaining lease term Operating leases 9.4 years 7.9 years Weighted-average discount rate Operating leases 5.7% 4.7% |
Schedule of maturities of operating lease liabilities | For the 12 months ending December 31, 2024 $ 2,428,743 2025 2,605,218 2026 2,669,007 2027 2,658,505 2028 2,267,101 Thereafter 7,108,025 Total lease payments 19,736,599 Less: imputed interest (4,466,149) Present value of lease liabilities $ 15,270,450 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of restricted share units | Restricted shares grants Shares Non-vested as of January 1, 2022 — Granted 296,474 Vested — Canceled — Non-vested as of December 31, 2022 296,474 Granted 113,984 Vested (66,111) Canceled (87,611) Non-vested as of December 31, 2023 256,736 Outstanding Restricted Share Average Remaining Fair Value per share Number Amortization Period (Years) $ 3.90 122,500 1.08 $ 2.52 3,889 1.25 $ 2.20 16,363 1.00 $ 2.08 96,635 2.25 $ 2.08 17,349 2.25 256,736 |
Schedule of share option activities | Weighted Weighted Weighted Average Average Average Grant date Remaining Average Number of Exercise Fair Contractual Intrinsic Options Price Value Term value USD USD Years USD Share options outstanding at December 31, 2022 380,745 2.54 1.19 9.35 — Granted 158,976 2.08 1.26 9.75 — Forfeited 183,722 — — — — Exercised — — — — — Expired — — — — — Share options outstanding at December 31, 2023 355,999 3.48 1.77 8.29 — Vested and exercisable at December 31, 2023 196,079 2.57 1.21 8.29 — |
Schedule of assumptions used to value options granted | For the For the Year Ended Year Ended December 31, December 31, 2023 2022 Risk-free interest rate 3.65 % 2.49 - 2.92 % Expected volatility range 63.36 % 40.30 - 45.67 % Fair market value per ordinary share as at grant dates $ 2.08 $ 2.26 - 3.07 |
Schedule of share-based compensation expense | For the Year Ended December 31, 2023 2022 USD USD Selling and distribution expenses $ 124,994 $ 108,694 General and administrative expenses 292,984 274,878 Total share-based compensation expenses $ 417,978 $ 383,572 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of source of pre-tax income | For the Years Ended December 31, 2023 2022 USD USD Income components United States $ (681,951) $ 991,240 Outside United States 2,069,739 3,549,310 Total pre-tax income $ 1,387,788 $ 4,540,550 Provision for income taxes Current Federal $ 27,451 $ 54,504 State 13,555 9,923 Foreign 670,512 594,267 711,518 658,694 Deferred Federal 24,622 146,843 State 92,271 52,034 Foreign (20,187) 3,059 96,706 201,936 Total provision for income taxes $ 808,224 $ 860,630 |
Schedule of the components of income tax expense | For the Years Ended December 31, 2023 2022 USD USD Income components United States $ (681,951) $ 991,240 Outside United States 2,069,739 3,549,310 Total pre-tax income $ 1,387,788 $ 4,540,550 Provision for income taxes Current Federal $ 27,451 $ 54,504 State 13,555 9,923 Foreign 670,512 594,267 711,518 658,694 Deferred Federal 24,622 146,843 State 92,271 52,034 Foreign (20,187) 3,059 96,706 201,936 Total provision for income taxes $ 808,224 $ 860,630 |
Schedule of reconciliation of effective income tax rate on earnings before income taxes | For the Years Ended December 31, 2023 2022 Federal statutory rate 21.0 % 21.0 % (Decrease) increase in tax rate resulting from: State and local income taxes, net of federal benefit (0.5) 1.0 Foreign operations 15.1 (3.3) Permanent items 3.1 0.1 Deferred adjustments 16.8 — Others 2.7 0.1 Effective tax rate 58.2 % 18.9 % |
Summary of components of net deferred tax assets and liabilities | As of As of December 31, 2023 December 31, 2022 USD USD Deferred tax assets Allowance for credit losses $ 58,476 $ 109,713 Other reserve 61,371 144,333 Accrued expenses 143,823 126,992 Lease liability 1,769,328 2,144,348 Charitable contributions 8,181 8,565 Business interest limitation 242,862 385,069 Net operating loss – federal 310,099 414,905 Net operating loss – state 27,337 75,863 Other 66,063 46,005 Total deferred tax assets 2,687,540 3,455,793 Less: valuation allowance — — Net deferred tax assets 2,687,540 3,455,793 Deferred tax liabilities Fixed assets 1,728,364 2,190,254 Intangibles (209,657) — Total deferred tax liabilities 1,518,707 2,190,254 Deferred tax assets, net of deferred tax liabilities $ 1,168,833 $ 1,265,539 |
Related Party Transactions an_2
Related Party Transactions and Balances (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions and balances | Sales/ Purchase from a related party – consisted of the following: Nature of For the Year Ended December 31, Name of Related Party Relationship transactions 2023 2022 USD USD Focal Capital Holding Limited An entity under common control Purchase $ 7,003,714 $ 9,850,083 Foremost Worldwide Co., Ltd An entity under common control Purchase 2,308,468 5,812,457 F.P.Z. FURNITURE (CAMBODIA) CO., LTD An entity under common control Purchase 575,061 — Foremost Australasia Pty Ltd An entity under common control Purchase 409,777 — RIZHAO FOREMOST WOODWORK MANUFACTURING CO. LTD An entity under common control Purchase 16,026 — $ 10,313,046 $ 15,662,540 Nature of For the Year Ended December 31, Name of Related Party Relationship transactions 2023 2022 USD USD Foremost Worldwide Co., Ltd An entity under common control Sales $ — $ 593,578 $ — $ 593,578 Prepayments — related parties As of As of December 31, December 31, Name of Related Party 2023 2022 USD USD Focal Capital Holding Limited $ 6,658,498 $ 3,806,873 Rizhao Foremost Woodwork Manufacturing Co., Ltd. 9,181 — $ 6,667,679 $ 3,806,873 Accounts Payables — related parties As of As of December 31, December 31, Name of Related Party 2023 2022 USD USD Foremost Worldwide Co., Ltd $ 735,308 $ 104,442 $ 735,308 $ 104,442 The ending balance as of December 31, 2023 and December 31, 2022, are listed of the following : As of As of Nature of December 31, December 31, Name of Related Party Relationship transactions 2023 2022 USD USD Foremost Home Inc. (“FHI”) An entity under common control Shared services and Miscellaneous 1,183,612 1,879,249 Foremost Worldwide Co., Ltd An entity under common control Shared services and Miscellaneous (251,008) (42,473) $ 932,604 $ 1,836,776 |
Nature of Business and Organi_3
Nature of Business and Organization - Ownership by Parent (Details) | Dec. 31, 2023 | Jan. 27, 2022 |
FGI Industries, Inc. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | 100% |
FGI Europe Investment Limited [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | 100% |
FGI International, Limited [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | 100% |
FGI Austrlasia Pty Ltd [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | |
Covered Bridge Cabinetry Manufacturing Co., Ltd [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | |
FGI Industries, Inc. [Member] | FGI Canada Ltd. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | |
FGI Industries, Inc. [Member] | Isla Porter LLC [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 60% | |
FGI Europe Investment Limited [Member] | FGI Germany GmbH & Co. KG [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | |
FGI Europe Investment Limited [Member] | FGI United Kingdom Ltd [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | |
FGI International, Limited [Member] | FGI China, Ltd [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% |
Nature of Business and Organi_4
Nature of Business and Organization - Reorganization - General Information (Details) | Jan. 27, 2022 | Dec. 31, 2023 |
Noncontrolling Interest [Line Items] | ||
Percentage of outstanding stock expected to be distributed (as a percent) | 100% | |
Percentage of outstanding stock expected to be contributed (as a percent) | 100% | |
FGI Industries, Inc. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | 100% |
FGI Europe Investment Limited [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | 100% |
FGI International, Limited [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | 100% |
Foremost Groups Ltd. [Member] | FGI Industries Ltd. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | |
Foremost Groups Ltd. [Member] | Foremost Home Incorporated [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% | |
Foremost Home Incorporated [Member] | Foremost Kingbetter Food Equipment Inc. [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage (as a percent) | 100% |
Nature of Business and Organi_5
Nature of Business and Organization - Reorganization - Shared Services Agreement (Details) | Jan. 14, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Annual fee | $ 500,000 |
Annual fee percent (as a percent) | 4% |
Term of shared service agreement | 1 year |
Notice period for renewal of agreement | 60 days |
Nature of Business and Organi_6
Nature of Business and Organization - Reorganization - Tabular Disclosure (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | $ 117,241,604 | $ 161,718,543 |
Cost of revenues | (85,164,322) | (130,209,538) |
Gross profit | 32,077,282 | 31,509,005 |
Selling and distribution expenses | (19,971,912) | (17,533,028) |
General and administrative expenses | (8,424,083) | (7,830,023) |
Research and development expenses | (1,376,844) | (1,053,976) |
Income from operations | 2,304,443 | 5,091,978 |
Business Allocated from FGI Industries to Foremost Home, Inc. [Member] | ||
Revenues | 991,919 | 34,470,623 |
Cost of revenues | (768,065) | (27,735,284) |
Gross profit | 223,854 | 6,735,339 |
Selling and distribution expenses | (3,883,799) | |
Selling and distribution expenses | 45,979 | |
General and administrative expenses | (322,825) | |
Research and development expenses | (219,346) | |
Income from operations | $ 269,833 | 2,309,369 |
Business Allocated from Foremost Worldwide Co., Ltd., to FGI International [Member] | ||
Revenues | 25,022,960 | |
Cost of revenues | (22,853,884) | |
Gross profit | 2,169,076 | |
Selling and distribution expenses | (517,408) | |
General and administrative expenses | (466,872) | |
Research and development expenses | (27,315) | |
Income from operations | $ 1,157,481 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Liquidity (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Cash and Cash Equivalents, at Carrying Value [Abstract] | |
Cash and cash equivalents | $ 7.8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Foreign Currency Translation and Transaction (Details) | 12 Months Ended | |||||||||
Dec. 31, 2023 ¥ / $ | Dec. 31, 2023 $ / $ ¥ / $ | Dec. 31, 2023 € / $ ¥ / $ | Dec. 31, 2022 ¥ / $ | Dec. 31, 2022 $ / $ ¥ / $ | Dec. 31, 2022 ¥ / $ € / $ | Dec. 31, 2023 $ / $ | Dec. 31, 2023 € / $ | Dec. 31, 2022 $ / $ | Dec. 31, 2022 € / $ | |
Multiple Foreign Currency Exchange Rates [Abstract] | ||||||||||
Exchange rate on the balance sheet date | 7.1006 | 7.1006 | 7.1006 | 6.9653 | 6.9653 | 6.9653 | 1.3246 | 0.9059 | 1.3541 | 0.9338 |
Average exchange rate | 7.0945 | 1.3541 | 0.9527 | 6.7164 | 1.2945 | 0.9474 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cash (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||
Cash equivalents | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property and Equipment, Net (Details) | Dec. 31, 2023 |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 20 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Molds [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Molds [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Intangible Assets, Net (Details) | Dec. 31, 2023 |
Accounting Policies [Abstract] | |
Useful lives of intangible assets | 10 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Impairment for Long-lived Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Impairment Charges [Abstract] | ||
Impairment of long-lived assets | $ 0 | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Revenues - General Information (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Revenues [Abstract] | |
Customer payment term, low end of range | 15 days |
Customer payment term, high end of range | 60 days |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Revenues - Disaggregation by Product Line (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 117,241,604 | $ 161,718,543 |
Sanitaryware [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 75,551,117 | 104,806,342 |
Bath Furniture [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14,770,376 | 29,519,728 |
Shower System [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19,997,197 | 21,586,888 |
Others [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 6,922,914 | $ 5,805,585 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Revenues - Disaggregation by Geographic Location (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 117,241,604 | $ 161,718,543 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 74,572,336 | 103,255,662 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 31,092,989 | 41,025,288 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 11,477,070 | 16,844,015 |
Rest of World [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 99,209 | $ 593,578 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Assets by Geographic Location (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets | $ 65,744,930 | $ 60,366,930 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets | 38,401,665 | 38,364,005 |
Canada [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets | 17,850,709 | 14,584,946 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets | 528,068 | 343,946 |
Rest of World [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Assets | $ 8,964,488 | $ 7,074,033 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Shipping and Handling Costs (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Selling, General and Administrative Expense [Abstract] | ||
Shipping and handling expense | $ 711,640 | $ 842,827 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Share-based Compensation (Details) - USD ($) | 12 Months Ended | ||||
Jan. 26, 2022 | Jan. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement Compensation Expense Items [Abstract] | |||||
Share-based compensation expenses | $ 0 | $ 0 | $ 417,978 | $ 383,572 | $ 0 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Open tax year | 2020 2021 2022 2023 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies - Non-controlling Interests (Details) | Dec. 31, 2023 |
Isla Porter LLC [Member] | |
Noncontrolling Interest [Line Items] | |
Percentage of non-controlling interests | 40% |
Summary of Significant Accou_18
Summary of Significant Accounting Policies - Earnings Per Share - Tabular Disclosure (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ||
Net income attributable to FGI Industries Ltd. Shareholders | $ 733,604 | $ 3,679,920 |
Net income attributable to FGI Industries Ltd - basic | 733,604 | 3,679,920 |
Net income attributable to FGI Industries Ltd - diluted | $ 733,604 | $ 3,679,920 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted-average number of ordinary shares outstanding - basic (in dollars per share) | 9,525,434 | 9,335,616 |
Potentially dilutive shares from outstanding options/warrants | 295,678 | 6,305 |
Weighted-average number of ordinary shares outstanding - diluted (in dollars per share) | 9,821,112 | 9,341,921 |
Earnings Per Share, Diluted [Abstract] | ||
Earnings per share - basic (in dollars per share) | $ 0.08 | $ 0.39 |
Earnings per share - diluted (in dollars per share) | $ 0.07 | $ 0.39 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies - Earnings Per Share - Anti-dilutive Securities (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Stock Option [Member] | ||
Earnings Per Share, Diluted, Other Disclosure [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 355,999 | 355,999 |
Warrant [Member] | ||
Earnings Per Share, Diluted, Other Disclosure [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 2,925,000 | 2,925,000 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - Accounting Standards Update 2016-13 [Member] | Jan. 01, 2023 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 01, 2023 |
Accounts Receivable, Net - Comp
Accounts Receivable, Net - Composition (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable | $ 17,184,706 | $ 16,330,540 | |
Allowance for credit losses | (244,879) | (438,843) | $ (177,462) |
Accrued defective return and discount | (744,284) | (1,595,838) | $ (3,292,101) |
Accounts receivable, net | $ 16,195,543 | $ 14,295,859 |
Accounts Receivable, Net - Allo
Accounts Receivable, Net - Allowance for Doubtful Accounts Roll Forward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 438,843 | $ 177,462 |
Addition | 78,640 | 261,381 |
Write-off | (272,604) | |
Ending balance | $ 244,879 | $ 438,843 |
Accounts Receivable, Net - Accr
Accounts Receivable, Net - Accrued Defective Return and Discount Accounts Roll Forward (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Receivables [Abstract] | ||
Beginning balance | $ 1,595,838 | $ 3,292,101 |
Provision | (851,554) | (1,696,263) |
Ending balance | $ 744,284 | $ 1,595,838 |
Inventories, Net - Composition
Inventories, Net - Composition (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Finished product | $ 10,565,858 | $ 13,956,121 |
Reserves for slow-moving inventories | (642,006) | (663,530) |
Inventories, net | $ 9,923,852 | $ 13,292,591 |
Inventories, Net - Inventory Re
Inventories, Net - Inventory Reserves Roll Forward (Details) - SEC Schedule, 12-09, Reserve, Inventory [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | $ 663,530 | $ 544,158 |
Addition | 21,524 | (119,372) |
Ending balance | $ 642,006 | $ 663,530 |
Prepayments and Other Assets (D
Prepayments and Other Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepayments | $ 3,953,340 | $ 2,026,259 |
Others | 664,411 | 561,822 |
Total prepayments and other assets | $ 4,617,751 | $ 2,588,081 |
Property and Equipment, Net - C
Property and Equipment, Net - Composition (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment, Net [Abstract] | ||
Subtotal | $ 4,688,604 | $ 4,957,482 |
Less: accumulated depreciation | (2,778,113) | (3,687,511) |
Total | 1,910,491 | 1,269,971 |
Building [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Subtotal | 946,066 | 946,066 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Subtotal | 1,695,361 | 1,074,206 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Subtotal | 1,613,439 | 2,246,610 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Subtotal | 259,449 | 516,310 |
Vehicles [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Subtotal | 147,912 | 147,913 |
Molds [Member] | ||
Property, Plant and Equipment, Net [Abstract] | ||
Subtotal | $ 26,377 | $ 26,377 |
Property and Equipment, Net - D
Property and Equipment, Net - Depreciation Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Depreciation [Abstract] | ||
Depreciation expense | $ 200,764 | $ 175,979 |
Leases - General Information (D
Leases - General Information (Details) | Dec. 31, 2023 |
Operating Leases, Excluding Sub-lease, Land Use Right [Member] | Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Leases, remaining lease terms | 9 years 4 months 24 days |
Leases - Operating Lease Land f
Leases - Operating Lease Land from Affiliate (Details) - Property Purchase Agreement [Member] - Sub-lease, Land Use Right [Member] | Dec. 31, 2023 USD ($) |
Related Party Transaction [Line Items] | |
Lessee, operating lease, renewal term | 50 years |
Lessee, operating lease, renewal term, purchase amount | $ 1 |
Maximum [Member] | |
Related Party Transaction [Line Items] | |
Leases, remaining lease terms | 50 years |
Leases - Total Lease Expense (D
Leases - Total Lease Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease, Cost [Abstract] | ||
Total lease expenses | $ 2,581,542 | $ 1,239,353 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 15,203,576 | $ 9,815,572 |
Operating Lease, Liability [Abstract] | ||
Operating lease liabilities - current | 1,595,998 | 1,543,031 |
Operating lease liabilities - noncurrent | 13,674,452 | 7,847,317 |
Total operating lease liabilities | $ 15,270,450 | $ 9,390,348 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee Disclosure [Abstract] | ||
Weighted-average remaining lease term, operating leases | 9 years 4 months 24 days | 7 years 10 months 24 days |
Weighted-average discount rate, operating leases | 5.70% | 4.70% |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) | Dec. 31, 2023 USD ($) |
Lessee, Operating Lease, Liability, to be Paid, Rolling Maturity [Abstract] | |
2024 | $ 2,428,743 |
2025 | 2,605,218 |
2026 | 2,669,007 |
2027 | 2,658,505 |
2028 | 2,267,101 |
Thereafter | 7,108,025 |
Total lease payments | $ 19,736,599 |
Leases - Gross Difference (Deta
Leases - Gross Difference (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, to be Paid, Gross Difference [Abstract] | ||
Total lease payments | $ 19,736,599 | |
Less: imputed interest | (4,466,149) | |
Present value of lease liabilities | $ 15,270,450 | $ 9,390,348 |
Short-term Loans - Guarantee (D
Short-term Loans - Guarantee (Details) | Dec. 31, 2023 |
Mr. Liang Chou Chen [Member] | Foremost Groups Ltd. [Member] | |
Short-Term Debt [Line Items] | |
Ownership percentage (as a percent) | 49.89% |
Short-term Loans - Bank Loans (
Short-term Loans - Bank Loans (Details) | 12 Months Ended | |||
Dec. 02, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 02, 2021 CAD ($) | |
Short-Term Debt [Line Items] | ||||
Short-term loans | $ 6,959,175 | $ 9,795,052 | ||
Revolving Foreign Exchange Facility [Member] | ||||
Short-Term Debt [Line Items] | ||||
Maximum borrowing capacity | $ 3,000,000 | |||
Debt instrument, term | 6 months | |||
Line of Credit [Member] | Non-discretionary Line of Credit [Member] | ||||
Short-Term Debt [Line Items] | ||||
Line of credit facility, expiration date | Dec. 21, 2024 | |||
Maximum borrowing capacity | $ 18,000,000 | |||
Debt coverage ratio | 1.25 | |||
Tangible net worth | $ 10,000,000 | |||
Tangible net worth ratio | 4 | |||
Interest rate (as a percent) | 8.25% | 7.25% | ||
Short-term loans | $ 6,959,175 | $ 9,795,052 | ||
Line of Credit [Member] | Non-discretionary Line of Credit [Member] | Minimum [Member] | ||||
Short-Term Debt [Line Items] | ||||
Interest rate (as a percent) | 4.50% | |||
Line of Credit [Member] | Non-discretionary Line of Credit [Member] | Prime Rate [Member] | ||||
Short-Term Debt [Line Items] | ||||
Basis spread (as a percent) | (0.25%) | |||
Line of Credit [Member] | Non-discretionary Line of Credit [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Short-Term Debt [Line Items] | ||||
Basis spread (as a percent) | 2.20% | |||
Line of Credit [Member] | Discretionary Line of Credit [Member] | ||||
Short-Term Debt [Line Items] | ||||
Maximum borrowing capacity | $ 5,662,087 | $ 7,500,000 | ||
Tangible net worth ratio | 3 | |||
Current ratio | 1.25 | 1.25 | ||
Short-term loans | $ 0 | $ 0 | ||
Line of credit facility, expiration, notice period | 60 days | |||
Line of Credit [Member] | Discretionary Line of Credit [Member] | Prime Rate [Member] | ||||
Short-Term Debt [Line Items] | ||||
Basis spread (as a percent) | 0.50% |
Shareholders' Equity - General
Shareholders' Equity - General Information (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 27, 2022 | May 26, 2021 |
Equity [Abstract] | ||||
Authorized amount | $ 21,000 | |||
Common Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | ||||
Ordinary shares, authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | 50,000,000 |
Ordinary shares, par value (in per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.001 |
Ordinary shares, issued (in shares) | 9,547,607 | 9,500,000 | 9,500,000 | |
Ordinary shares, outstanding (in shares) | 9,547,607 | 9,500,000 | 9,500,000 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosure [Abstract] | ||||
Preference shares, authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | |
Preference shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Shareholders' Equity - Offering
Shareholders' Equity - Offerings (Details) - USD ($) | 12 Months Ended | ||
Jan. 27, 2022 | Jan. 25, 2022 | Dec. 31, 2022 | |
Subsidiary, Sale of Stock [Line Items] | |||
Gross proceeds from the IPO | $ 15,000,000 | ||
Net proceeds from the IPO | $ 12,400,000 | $ 12,370,800 | |
IPO [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of ordinary shares upon Initial Public Offering ("IPO"), net (in shares) | 2,500,000 | ||
Issuance of ordinary shares per unit upon Initial Public Offering ("IPO") (in shares) | 1 | ||
Share price (in dollars per share) | $ 6 | ||
Over-Allotment Option [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Underwriters' option period | 45 days | ||
Number of shares issuable (in shares) | 375,000 |
Shareholders' Equity - Warrants
Shareholders' Equity - Warrants - General Information (Details) - $ / shares | Jan. 27, 2022 | Dec. 31, 2023 | Jan. 25, 2022 |
Class of Warrant or Right [Line Items] | |||
Warrants outstanding (in shares) | 2,875,000 | ||
Warrants exercised (in shares) | 0 | ||
Initial Public Offering Warrants to Purchase Ordinary Shares [Member] | |||
Class of Warrant or Right [Line Items] | |||
Date from which warrants exercisable | Jan. 27, 2022 | ||
Number of shares called warrants (in shares) | 1 | ||
Number of shares called by each warrant (in shares) | 1 | ||
Exercise price of warrants (in dollars per share) | $ 6 | ||
Term of warrants | 5 years | ||
Initial Public Offering Option Warrants to Purchase Ordinary Shares [Member] | |||
Class of Warrant or Right [Line Items] | |||
Number of shares called warrants (in shares) | 375,000 | ||
Number of shares called by each warrant (in shares) | 1 | ||
Exercise price of warrants (in dollars per share) | $ 0.01 | ||
Public Offering Warrants to Purchase Ordinary Shares [Member] | |||
Class of Warrant or Right [Line Items] | |||
Warrants issued, percentage of IPO shares (as a percent) | 2% | ||
Date from which warrants exercisable, period from IPO closing | 180 days | ||
Number of shares called warrants (in shares) | 50,000 | ||
Term of warrants | 5 years | ||
Warrants outstanding (in shares) | 50,000 | ||
Warrants exercised (in shares) | 0 |
Shareholders' Equity - Warran_2
Shareholders' Equity - Warrants - Fair Value Measurement Inputs and Techniques (Details) | Jan. 27, 2022 USD ($) $ / shares Y |
Initial Public Offering Warrants and Option Warrants to Purchase Ordinary Shares [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, fair value | $ | $ 4,160,000 |
Warrants and Rights Outstanding, Valuation Technique | us-gaap:ValuationTechniqueOptionPricingModelMember |
Initial Public Offering Warrants and Option Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Share Price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | $ / shares | 1.448 |
Initial Public Offering Warrants and Option Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 0.0166 |
Initial Public Offering Warrants and Option Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Expected Term [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | Y | 5 |
Initial Public Offering Warrants and Option Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Exercise Price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | $ / shares | 6 |
Initial Public Offering Warrants and Option Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Price Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 0.4400 |
Initial Public Offering Warrants and Option Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Expected Dividend Payment [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | $ | 0 |
Public Offering Warrants to Purchase Ordinary Shares [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, fair value | $ | $ 100,000 |
Warrants and Rights Outstanding, Valuation Technique | us-gaap:ValuationTechniqueOptionPricingModelMember |
Public Offering Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Share Price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | $ / shares | 1.448 |
Public Offering Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 0.0166 |
Public Offering Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Expected Term [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | Y | 5 |
Public Offering Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Exercise Price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | $ / shares | 6 |
Public Offering Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Price Volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 0.4400 |
Public Offering Warrants to Purchase Ordinary Shares [Member] | Measurement Input, Expected Dividend Payment [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | $ | 0 |
Stock-based Compensation - Gene
Stock-based Compensation - General Information (Details) - USD ($) | 12 Months Ended | |||||
Jan. 26, 2022 | Jan. 01, 2022 | Oct. 07, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Compensation cost recognized | $ 0 | $ 0 | $ 417,978 | $ 383,572 | $ 0 | |
Equity Plan 2021 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Shares reserved (in shares) | 1,500,000 | |||||
Threshold percentage (as a percent) | 4.50% | |||||
Threshold number of shares (in shares) | 600,000 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Share Units - General Information (Details) | 12 Months Ended | |||||||
Mar. 23, 2023 USD ($) $ / shares shares | May 17, 2022 USD ($) $ / shares shares | May 11, 2022 USD ($) $ / shares shares | Apr. 13, 2022 USD ($) installment $ / shares shares | Jan. 27, 2022 USD ($) $ / shares shares | Dec. 31, 2023 shares | Dec. 31, 2022 shares | Dec. 31, 2021 shares | |
Awards Issued 13 April 2022 [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Vested (in shares) | 4,861 | |||||||
Awards Issued 11 May 2022 [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Fair value of awards granted | $ | $ 198,000 | |||||||
Share price (in dollars per share) | $ / shares | $ 2.26 | |||||||
Vested (in shares) | 0 | |||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Granted (in shares) | 113,984 | 296,474 | ||||||
Outstanding (in shares) | 256,736 | 296,474 | 0 | |||||
RSU Vested | 66,111 | |||||||
Restricted Stock Units (RSUs) [Member] | Awards Issued 27 January 2022 [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Granted (in shares) | 183,750 | |||||||
Fair value of awards granted | $ | $ 716,625 | |||||||
Share price (in dollars per share) | $ / shares | $ 3.90 | |||||||
Vesting period | 3 years | |||||||
Vested (in shares) | 61,250 | |||||||
Outstanding (in shares) | 122,500 | |||||||
Restricted Stock Units (RSUs) [Member] | Awards Issued 13 April 2022 [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Granted (in shares) | 8,750 | |||||||
Fair value of awards granted | $ | $ 22,050 | |||||||
Share price (in dollars per share) | $ / shares | $ 2.52 | |||||||
Outstanding (in shares) | 3,889 | |||||||
Restricted Stock Units (RSUs) [Member] | Awards Issued 13 April 2022 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Vesting rights (as a percent) | 33.33% | |||||||
Vesting period | 1 year | |||||||
Restricted Stock Units (RSUs) [Member] | Awards Issued 13 April 2022 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Vesting rights, successive equal monthly installments | installment | 24 | |||||||
Restricted Stock Units (RSUs) [Member] | Awards Issued 11 May 2022 [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Granted (in shares) | 87,611 | |||||||
Restricted Stock Units (RSUs) [Member] | Awards Issued 17 May 2022 [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Granted (in shares) | 16,363 | |||||||
Fair value of awards granted | $ | $ 36,000 | |||||||
Share price (in dollars per share) | $ / shares | $ 2.20 | |||||||
Vested (in shares) | 0 | |||||||
Outstanding (in shares) | 16,363 | |||||||
Restricted Stock Units (RSUs) [Member] | Awards Issued 23 May 2023, Officers [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Granted (in shares) | 96,635 | |||||||
Potential award (in shares) | 48,317 | |||||||
Fair value of awards granted | $ | $ 201,000 | |||||||
Potential award, fair value | $ | $ 100,500 | |||||||
Share price (in dollars per share) | $ / shares | $ 2.08 | |||||||
Vested (in shares) | 0 | |||||||
Outstanding (in shares) | 96,635 | |||||||
Restricted Stock Units (RSUs) [Member] | Awards Issued 23 May 2023, Independent Directors [Member] | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||
Granted (in shares) | 17,349 | |||||||
Fair value of awards granted | $ | $ 36,000 | |||||||
Share price (in dollars per share) | $ / shares | $ 2.08 | |||||||
Vested (in shares) | 0 | |||||||
Outstanding (in shares) | 17,349 |
Stock-based Compensation - Re_2
Stock-based Compensation - Restricted Share Units - Activity (Details) - Restricted Stock Units (RSUs) [Member] - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested, beginning balance (in shares) | 296,474 | 0 |
Granted (in shares) | 113,984 | 296,474 |
Vested (in shares) | (66,111) | |
Canceled (in shares) | (87,611) | |
Non-vested, ending balance (in shares) | 256,736 | 296,474 |
Stock-based Compensation - Re_3
Stock-based Compensation - Restricted Share Units - Summary (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Outstanding (in shares) | 256,736 | 296,474 | 0 |
Awards Issued 27 January 2022 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Fair value per share (in dollars per share) | $ 3.90 | ||
Outstanding (in shares) | 122,500 | ||
Average remaining amortization period | 1 year 29 days | ||
Awards Issued 13 April 2022 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Fair value per share (in dollars per share) | $ 2.52 | ||
Outstanding (in shares) | 3,889 | ||
Average remaining amortization period | 1 year 3 months | ||
Awards Issued 17 May 2022 [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Fair value per share (in dollars per share) | $ 2.20 | ||
Outstanding (in shares) | 16,363 | ||
Average remaining amortization period | 1 year | ||
Awards Issued 23 May 2023, Officers [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Fair value per share (in dollars per share) | $ 2.08 | ||
Outstanding (in shares) | 96,635 | ||
Average remaining amortization period | 2 years 3 months | ||
Awards Issued 23 May 2023, Independent Directors [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Fair value per share (in dollars per share) | $ 2.08 | ||
Outstanding (in shares) | 17,349 | ||
Average remaining amortization period | 2 years 3 months |
Stock-based Compensation - Opti
Stock-based Compensation - Options - General Information (Details) | 12 Months Ended | |||||
Mar. 23, 2023 USD ($) installment $ / shares shares | May 11, 2022 USD ($) installment $ / shares shares | Apr. 13, 2022 USD ($) installment $ / shares shares | Mar. 24, 2022 USD ($) installment $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Options issued (in shares) | shares | 158,976 | |||||
Options issued, exercise price (in dollars per share) | $ 2.08 | |||||
Weighted average grant date fair value, granted (in dollars per share) | $ 1.26 | |||||
Awards Issued 24 March 2022 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Options issued (in shares) | shares | 98,747 | |||||
Options issued, exercise price (in dollars per share) | $ 3.07 | |||||
Weighted average grant date fair value, granted (in dollars per share) | $ 1.43 | |||||
Awards Issued 13 April 2022 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Options issued (in shares) | shares | 97,371 | |||||
Options issued, exercise price (in dollars per share) | $ 2.52 | |||||
Weighted average grant date fair value, granted (in dollars per share) | $ 1.18 | |||||
Awards Issued 11 May 2022 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Options issued (in shares) | shares | 159,881 | |||||
Options issued, exercise price (in dollars per share) | $ 2.26 | |||||
Fair value of awards granted | $ | $ 198,000 | |||||
Awards Issued 23 May 2023, Officers [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Options issued (in shares) | shares | 158,976 | |||||
Options issued, exercise price (in dollars per share) | $ 2.08 | |||||
Employee Stock Option [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Fair value of awards granted | $ | $ 628,834 | $ 454,373 | ||||
Employee Stock Option [Member] | Awards Issued 24 March 2022 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Contractual life | 10 years | |||||
Fair value of awards granted | $ | $ 141,401 | |||||
Vested (in shares) | shares | 57,602 | |||||
Employee Stock Option [Member] | Awards Issued 24 March 2022 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting rights (as a percent) | 33.33% | |||||
Vesting period | 1 year | |||||
Employee Stock Option [Member] | Awards Issued 24 March 2022 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting rights, successive equal monthly installments | installment | 24 | |||||
Employee Stock Option [Member] | Awards Issued 13 April 2022 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Contractual life | 10 years | |||||
Fair value of awards granted | $ | $ 114,972 | |||||
Vested (in shares) | shares | 54,095 | |||||
Employee Stock Option [Member] | Awards Issued 13 April 2022 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting rights (as a percent) | 33.33% | |||||
Vesting period | 1 year | |||||
Employee Stock Option [Member] | Awards Issued 13 April 2022 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting rights, successive equal monthly installments | installment | 24 | |||||
Employee Stock Option [Member] | Awards Issued 11 May 2022 [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Contractual life | 10 years | |||||
Fair value of awards granted | $ | $ 171,462 | |||||
Weighted average grant date fair value, granted (in dollars per share) | $ 1.07 | |||||
Vested (in shares) | shares | 84,382 | |||||
Employee Stock Option [Member] | Awards Issued 11 May 2022 [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting rights (as a percent) | 33.33% | |||||
Vesting period | 1 year | |||||
Employee Stock Option [Member] | Awards Issued 11 May 2022 [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting rights, successive equal monthly installments | installment | 24 | |||||
Employee Stock Option [Member] | Awards Issued 23 May 2023, Officers [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Contractual life | 10 years | |||||
Fair value of awards granted | $ | $ 201,000 | |||||
Weighted average grant date fair value, granted (in dollars per share) | $ 1.26 | |||||
Vested (in shares) | shares | 0 | |||||
Employee Stock Option [Member] | Awards Issued 23 May 2023, Officers [Member] | Share-Based Payment Arrangement, Tranche One [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting rights (as a percent) | 33.33% | |||||
Vesting period | 1 year | |||||
Employee Stock Option [Member] | Awards Issued 23 May 2023, Officers [Member] | Share-Based Payment Arrangement, Tranche Two [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||
Vesting rights, successive equal monthly installments | installment | 24 |
Stock-based Compensation - Op_2
Stock-based Compensation - Options - Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, beginning of period (in shares) | 380,745 | |
Granted (in shares) | 158,976 | |
Forfeited (in shares) | 183,722 | |
Number of options, end of period (in shares) | 355,999 | 380,745 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted average exercise price, beginning of period (in dollars per share) | $ 2.54 | |
Granted (in dollars per share) | 2.08 | |
Weighted average exercise price, end of period (in dollars per share) | 3.48 | $ 2.54 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted average grant date fair value, beginning of period (in dollars per share) | 1.19 | |
Weighted average grant date fair value, granted (in dollars per share) | 1.26 | |
Weighted average grant date fair value, end of period (in dollars per share) | $ 1.77 | $ 1.19 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual term, outstanding | 8 years 3 months 14 days | 9 years 4 months 6 days |
Weighted average remaining contractual term, granted | 9 years 9 months | |
Aggregate intrinsic value, outstanding | $ 0 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Number of options, vested and exercisable (in shares) | 196,079 | |
Weighted average exercise price, vested and exercisable (in dollars per share) | $ 2.57 | |
Weighted average grant date fair value - vested and exercisable (in dollars per share) | $ 1.21 | |
Weighted average remaining contractual term, vested and exercisable | 8 years 3 months 14 days |
Stock-based Compensation - Op_3
Stock-based Compensation - Options - Fair Value (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Employee Stock Option [Member] | ||
Shares Granted, Value, Share-Based Payment Arrangement, after Forfeiture [Abstract] | ||
Fair value of options awarded | $ 628,834 | $ 454,373 |
Stock-based Compensation - Op_4
Stock-based Compensation - Options - Fair Value Assumptions (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rate, minimum (as a percent) | 2.49% | |
Risk-free interest rate, maximum (as a percent) | 2.92% | |
Risk-free interest rate (as a percent) | 3.65% | |
Expected volatility range, minimum (as a percent) | 40.30% | |
Expected volatility range, maximum (as a percent) | 45.67% | |
Expected volatility range (as a percent) | 63.36% | |
Share price (in dollars per share) | $ 2.08 | |
Minimum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Share price (in dollars per share) | $ 2.26 | |
Maximum [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Share price (in dollars per share) | $ 3.07 |
Stock-based Compensation - Shar
Stock-based Compensation - Share-based Compensation Expense (Details) - USD ($) | 12 Months Ended | ||||
Jan. 26, 2022 | Jan. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Abstract] | |||||
Share-based compensation expenses | $ 0 | $ 0 | $ 417,978 | $ 383,572 | $ 0 |
Selling and Marketing Expense [Member] | |||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Abstract] | |||||
Share-based compensation expenses | 124,994 | 108,694 | |||
General and Administrative Expense [Member] | |||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Abstract] | |||||
Share-based compensation expenses | $ 292,984 | $ 274,878 |
Stock-based Compensation - Unre
Stock-based Compensation - Unrecognized Share-based Compensation Expense (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount [Abstract] | |
Unrecognized employee share-based compensation expense | $ 637,956 |
Unrecognized employee share-based compensation expense related to unvested awards, weighted-average period for recognition | 1 year 5 months 15 days |
Income Taxes - Pre-tax Income (
Income Taxes - Pre-tax Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest [Abstract] | ||
United States | $ (681,951) | $ 991,240 |
Outside United States | 2,069,739 | 3,549,310 |
INCOME BEFORE INCOME TAXES | $ 1,387,788 | $ 4,540,550 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Federal | $ 27,451 | $ 54,504 |
State | 13,555 | 9,923 |
Foreign | 670,512 | 594,267 |
Current, Total | 711,518 | 658,694 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Federal | 24,622 | 146,843 |
State | 92,271 | 52,034 |
Foreign | (20,187) | 3,059 |
Deferred, Total | 96,706 | 201,936 |
Total provision for income taxes | $ 808,224 | $ 860,630 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Federal statutory rate (as a percent) | 21% | 21% |
State and local income taxes, net of federal benefit (as a percent) | (0.50%) | 1% |
Foreign operations (as a percent) | 15.10% | (3.30%) |
Permanent items (as a percent) | 3.10% | 0.10% |
Deferred adjustments (as a percent) | 16.80% | |
Others (as a percent) | 2.70% | 0.10% |
Effective tax rate (as a percent) | 58.20% | 18.90% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Components of Deferred Tax Assets [Abstract] | ||
Allowance for credit losses | $ 58,476 | $ 109,713 |
Other reserve | 61,371 | 144,333 |
Accrued expenses | 143,823 | 126,992 |
Lease liability | 1,769,328 | 2,144,348 |
Charitable contributions | 8,181 | 8,565 |
Business interest limitation | 242,862 | 385,069 |
Net operating loss - federal | 310,099 | 414,905 |
Net operating loss - state | 27,337 | 75,863 |
Other | 66,063 | 46,005 |
Total deferred tax assets | 2,687,540 | 3,455,793 |
Net deferred tax assets | 2,687,540 | 3,455,793 |
Components of Deferred Tax Liabilities [Abstract] | ||
Fixed assets | 1,728,364 | 2,190,254 |
Intangibles | (209,657) | |
Total deferred tax liabilities | 1,518,707 | 2,190,254 |
Deferred tax assets, net of deferred tax liabilities | $ 1,168,833 | $ 1,265,539 |
Income Taxes - Operating Loss C
Income Taxes - Operating Loss Carryforwards (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 1,836,077 | $ 3,174,799 |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 1,476,655 | 1,975,734 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 359,422 | $ 1,199,065 |
Net operating loss carryforwards, subject to expiration, period | 20 years |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Income Tax Uncertainties [Abstract] | ||
Unrecognized tax benefits | $ 0 | $ 0 |
Significant change in unrecognized tax benefits is reasonably possible, amount of unrecorded benefit | $ 0 |
Related Party Transactions an_3
Related Party Transactions and Balances - Purchase from a Related Party (Details) - Affiliated Entity [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Purchase from a related party | $ 10,313,046 | $ 15,662,540 |
Rizhao Foremost Woodwork Manufacturing Company, Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase from a related party | 16,026 | |
Focal Capital Holding Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase from a related party | 7,003,714 | 9,850,083 |
Foremost Worldwide Company, Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase from a related party | 2,308,468 | $ 5,812,457 |
F.P.Z FURNITURE (CAMBODIA) CO., LTD [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase from a related party | 575,061 | |
Foremost Australasia Pty Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Purchase from a related party | $ 409,777 |
Related Party Transactions an_4
Related Party Transactions and Balances - Sales from a Related Party (Details) - Affiliated Entity [Member] | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |
Revenues | $ 593,578 |
Foremost Worldwide Company, Limited [Member] | |
Related Party Transaction [Line Items] | |
Revenues | $ 593,578 |
Related Party Transactions an_5
Related Party Transactions and Balances - Prepayments (Details) - Affiliated Entity [Member] - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Prepayments - related parties | $ 6,667,679 | $ 3,806,873 |
Rizhao Foremost Woodwork Manufacturing Company, Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Prepayments - related parties | 9,181 | |
Focal Capital Holding Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Prepayments - related parties | $ 6,658,498 | $ 3,806,873 |
Related Party Transactions an_6
Related Party Transactions and Balances - Accounts Payables (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable | $ 735,308 | $ 104,442 |
Affiliated Entity [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable | 735,308 | 104,442 |
Affiliated Entity [Member] | Foremost Worldwide Company, Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable | $ 735,308 | $ 104,442 |
Related Party Transactions an_7
Related Party Transactions and Balances - Shared Service and Miscellaneous Expenses - General Information (Details) - Affiliated Entity [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Shared Services Agreement and Miscellaneous Expenses, Provide Services [Member] | Foremost Home Incorporated [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction | $ 821,864 | $ 1,122,996 |
Shared Services Agreement and Miscellaneous Expenses, Receive Services [Member] | Foremost Worldwide Company, Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amounts of transaction | $ 304,103 | $ 126,745 |
Related Party Transactions an_8
Related Party Transactions and Balances - Shared Service and Miscellaneous Expenses - Tabular Disclosure (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Related Party Transaction [Line Items] | ||
Other receivables | $ 932,604 | $ 1,836,776 |
Affiliated Entity [Member] | Foremost Home Incorporated [Member] | ||
Related Party Transaction [Line Items] | ||
Other receivables | 1,183,612 | 1,879,249 |
Affiliated Entity [Member] | Foremost Worldwide Company, Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Other liabilities | $ (251,008) | $ (42,473) |
Related Party Transactions an_9
Related Party Transactions and Balances - Property Purchase (Details) - USD ($) | 1 Months Ended | ||
Jul. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||
Property, plant and equipment, gross | $ 4,688,604 | $ 4,957,482 | |
Operating lease right-of-use assets | 15,203,576 | 9,815,572 | |
Building [Member] | |||
Related Party Transaction [Line Items] | |||
Property, plant and equipment, gross | $ 946,066 | $ 946,066 | |
Property Purchase Agreement [Member] | |||
Related Party Transaction [Line Items] | |||
Related party transaction, amounts of transaction | $ 1,963,521 | ||
Excess payment over carrying value | $ 498,005 | ||
Property Purchase Agreement [Member] | Sub-lease, Land Use Right [Member] | |||
Related Party Transaction [Line Items] | |||
Lessee, operating lease, term of contract | 50 years | ||
Operating lease right-of-use assets | $ 519,450 | ||
Property Purchase Agreement [Member] | Building [Member] | |||
Related Party Transaction [Line Items] | |||
Property, plant and equipment, gross | $ 946,066 |
Related Party Transactions a_10
Related Party Transactions and Balances - Loan Guarantee by Related Party (Details) | Dec. 31, 2023 |
Mr. Liang Chou Chen [Member] | Foremost Groups Ltd. [Member] | |
Related Party Transaction [Line Items] | |
Ownership percentage (as a percent) | 49.89% |
Concentrations of Risks - Credi
Concentrations of Risks - Credit Risk (Details) € in Millions, $ in Millions, $ in Millions | Dec. 31, 2023 USD ($) item | Dec. 31, 2023 CAD ($) item | Dec. 31, 2023 TWD ($) item | Dec. 31, 2023 EUR (€) item | Dec. 31, 2022 USD ($) |
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash | $ 7,777,241 | $ 10,067,428 | |||
Cash, Insured and Uninsured [Abstract] | |||||
Cash, Canadian Deposit Insurance Corporation insured amount | 100,000 | $ 0.1 | |||
Cash, amount uninsured by Canadian Deposit Insurance Corporation | 4,300,000 | 5.7 | |||
Cash, Taiwan Central Deposit Insurance Corporation insured amount | 100,000 | $ 3 | |||
Cash, amount uninsured by Taiwan Central Deposit Insurance Corporation | 2,500,000 | ||||
Cash, European Banking Authority insured amount | 100,000 | € 0.1 | |||
Cash, amount uninsured by European Banking Authority | 100,000 | € 0.1 | |||
Cash, amount uninsured by Kingdom of Cambodia regulation | 28,871 | ||||
Canada [Member] | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash | 4,400,000 | $ 5.8 | |||
TAIWAN | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash | $ 2,800,000 | ||||
Cash, Insured and Uninsured [Abstract] | |||||
Cash, bank accounts at financial institutions, number | item | 4 | 4 | 4 | 4 | |
European Union [Member] | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash | $ 200,000 | € 0.2 | |||
CAMBODIA | |||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||||
Cash | $ 28,871 |
Concentrations of Risks - Custo
Concentrations of Risks - Customer Concentration Risk (Details) - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer Benchmark [Member] | Largest Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 17.60% | 22.20% |
Revenue from Contract with Customer Benchmark [Member] | Customer, Second Largest [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 16.40% | 22.10% |
Revenue from Contract with Customer Benchmark [Member] | Customer, Third Largest [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 10.40% | |
Accounts Receivable [Member] | Largest Customer [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 27.20% | 36.70% |
Accounts Receivable [Member] | Customer, Second Largest [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 19% | 13.60% |
Accounts Receivable [Member] | Customer, Third Largest [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 12% | |
Accounts Receivable [Member] | Customer, Fourth Largest [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 11.10% |
Concentrations of Risks - Vendo
Concentrations of Risks - Vendor Concentration Risk (Details) - Supplier Concentration Risk [Member] - Tangshan Huida Ceramic Group Co., Ltd [Member] | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cost of Goods and Service Benchmark [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 54.70% | 51.80% |
Accounts Payable [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 71.40% | 85.50% |
Segment Information (Details)
Segment Information (Details) - segment | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Number of reportable segment | 1 | 1 |
Subsequent Events - Credit Line
Subsequent Events - Credit Line (Details) - Subsequent Event [Member] - Line of Credit [Member] - Omnibus Credit Line [Member] $ in Millions | Jan. 25, 2024 USD ($) |
Subsequent Event [Line Items] | |
Line of credit facility, initiation date | Jan. 25, 2024 |
Maximum borrowing capacity | $ 2.3 |
Borrowing limit, percentage of export "open account" trade receivables (as a percent) | 90% |
Base Rate [Member] | |
Subsequent Event [Line Items] | |
Basis spread (as a percent) | 1.20% |
Subsequent Events - Share Optio
Subsequent Events - Share Options (Details) | 12 Months Ended | ||
Mar. 20, 2024 USD ($) installment $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | |
Subsequent Event [Line Items] | |||
Options issued (in shares) | shares | 158,976 | ||
Options issued, exercise price (in dollars per share) | $ 2.08 | ||
Weighted average grant date fair value, granted (in dollars per share) | $ 1.26 | ||
Employee Stock Option [Member] | |||
Subsequent Event [Line Items] | |||
Fair value of awards granted | $ | $ 628,834 | $ 454,373 | |
Subsequent Event [Member] | Awards Issued 20 March 2024 [Member] | |||
Subsequent Event [Line Items] | |||
Options issued (in shares) | shares | 529,635 | ||
Options issued, exercise price (in dollars per share) | $ 1.50 | ||
Subsequent Event [Member] | Employee Stock Option [Member] | Awards Issued 20 March 2024 [Member] | |||
Subsequent Event [Line Items] | |||
Contractual life | 10 years | ||
Fair value of awards granted | $ | $ 447,000 | ||
Weighted average grant date fair value, granted (in dollars per share) | $ 0.84 | ||
Vesting rights (as a percent) | 33.33% | ||
Vesting period | 1 year | ||
Vesting rights, successive equal monthly installments | installment | 24 |
Subsequent Events - Restricted
Subsequent Events - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) | 12 Months Ended | ||
Mar. 20, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | |||
Granted (in shares) | 113,984 | 296,474 | |
Subsequent Event [Member] | Awards Issued 20 March 2024 [Member] | |||
Subsequent Event [Line Items] | |||
Granted (in shares) | 411,548 | ||
Fair value of awards granted | $ 617,322 | ||
Share price (in dollars per share) | $ 1.50 | ||
Potential award (in shares) | 205,774 | ||
Potential award, fair value | $ 308,661 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 733,604 | $ 3,679,920 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |