FGI Industries Ltd.

below) is focused on capturing higher incremental gross margins by increasing our share of branded products, expanding into new product categories and creating new sales channels, all of which are impacted by a number of economic factors and other factors. Prolonged economic downturns may adversely impact our sales, earnings and liquidity. Our ability to grow and compete in the future will be adversely affected if adequate capital is not available to us or not available on terms favorable to us. We may not achieve all of the anticipated benefits of our strategic initiatives. We may not be able to successfully execute our acquisition strategy or integrate businesses that we acquire. We could continue to pursue growth opportunities through either acquisitions, mergers or internally developed projects, which may be unsuccessful or may adversely affect our future financial condition and operating results. Business and Operational Risks Variability in the cost and availability of our raw materials, component parts and finished goods, including the imposition of tariffs, could affect our results of operations and financial position. Our top ten customers represent a large portion of our sales. A significant adverse change in such relationships could adversely impact our results of operations and financial condition. We are dependent on third-party suppliers and manufacturers, the loss of which could materially impact our business. There are risks associated with our international operations and global strategies.