Related Party Transactions and Balances

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

Related Party Transactions and Balances

Note 12 — Related party transactions and balances

Prepayments — related parties

		Nature of	September 30,		December 31,
Name of Related Party	Relationship	transactions	2022		2021
			USD		USD
Rizhao Foremost Woodwork Manufacturing Co., Ltd.	An entity under common control	Purchase	$	—	$	415,098
Focal Capital Holding Limited	An entity under common control	Purchase	$	6,980,903	$	2,670,243
			$	6,980,903	$	3,085,341

Accounts Payables — related parties

		Nature of	September 30,		December 31,
Name of Related Party	Relationship	transactions	2022		2021
			USD		USD
Foremost Worldwide Co., Ltd	An entity under common control	Purchase	$	(614,633)	$	—
			$	(614,633)	$	—

Other Payables — related parties

		Nature of	September 30,		December 31,
Name of Related Party	Relationship	transactions	2022		2021
			USD		USD
Foremost Xingye Business Consultancy (Shenzhen) Co., Ltd.	An entity under common control	Miscellaneous expenses	$	—	$	34,481
Foremost Home Inc.	An entity under common control	Miscellaneous expenses	$	(925,106)	$	—
Foremost Worldwide Co.,Ltd	An entity under common control	Miscellaneous expenses	$	(339,907)	$	—
				(1,265,013)		34,481

Property purchase — related party

In July 2022, FGI entered into a property purchase agreement with a related party to purchase building and sub-lease of land for the aggregated amount of approximately $1.97 million. As of September 30, 2022, FGI has remitted approximately $1.3 million, and remitted the remaining balance in October 2022. The balance of prepayment for sub-lease of land, in the amount of $1.3 million, was included in property and equipment, net on the Company's unaudited condensed consolidated balance sheet as of September 30, 2022 (see Note 6).

Loan guarantee by a related party

Liang Chou Chen holds approximately 49.75% 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.