Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 36

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 36
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 $1.4 million for the six months ended June 30, 2024. The change was primarily driven by an increase in loss before income taxes in the current period, as well as discrete items related to the SEC settlement and stock-based compensation shortfalls that impacted the tax provision for the period ended June 30, 2024.

Net Loss Attributable to HF Foods Group, Inc.

Net loss attributable to HF Foods Group Inc. was $0.4 million for the six months ended June 30, 2025, compared to net loss of $0.7 million for the six months ended June 30, 2024. The improvement of $0.2 million was primarily driven by an increase in income from operations of $2.7 million compared to the prior year period; however, the prior year’s results included a one time gain from lease guarantee income offset by an SEC settlement, which did not recur in the current year, thereby partially offsetting the year-over-year improvement.

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EBITDA and Adjusted EBITDA

The following table reconciles EBITDA and Adjusted EBITDA to the most directly comparable GAAP measure:

Six Months Ended June 30, ($ in thousands)20252024ChangeNet loss$(1,020)$(324)$(696)Interest expense, net5,3845,953(569)Income tax expense (benefit)(411)1,418(1,829)Depreciation and amortization14,01913,266753EBITDA17,97220,313(2,341)Lease guarantee income—(5,548)5,548Change in fair value of interest rate swap contracts1,869(2,331)4,200Stock-based compensation expense 9991,260(261)SEC settlement—3,900(3,900)Business transformation costs (1)8661,103(237)Other non-routine expense (2)110566(456)Executive transition and organizational redesign (3)1,802—1,802Adjusted EBITDA$23,618$19,263$4,355

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(1)    Represents costs associated with the launch and continued implementation of strategic projects including supply chain management improvements and technology infrastructure initiatives.

(2)    Includes contested proxy and related legal and consulting costs and facility closure costs.

(3)    Includes severance and related expenses for the Company’s transition of executive officers and organizational redesign.

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