Company: HFFG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001680873-25-000074
Chunk: 86

Company: HF Foods Group Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 86
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 expense, which is included in distribution, selling and administrative expenses in the condensed consolidated statements of operations and comprehensive loss, was $0.1 million for both the three months ended September 30, 2025 and 2024, and $0.2 million for both the nine months ended September 30, 2025 and 2024. Beginning 2014, the Company leased a warehouse to Asahi Food, Inc. under a commercial lease agreement which was rescinded March 1, 2020. A new commercial lease agreement for a period of one year was entered into, expiring February 28, 2021, with a total of four renewal periods with each term being one year. The lease term was extended by an addendum dated  September 1, 2023, which extended the lease through September 1, 2025. A second addendum, executed effective September 1, 2025, was enacted during the third quarter which extends the expiration of the lease by one year to September 1, 2026. Rental income was $36,000 for both the three months ended September 30, 2025 and 2024, and $0.1 million for both the nine months ended September 30, 2025 and 2024, which is included in other expense (income), net in the condensed consolidated statements of operations and comprehensive loss. Related Party BalancesAccounts Receivable - Related Parties, NetBelow is a summary of accounts receivable with related parties recorded as of September 30, 2025 and December 31, 2024, respectively:(In thousands)September 30, 2025December 31, 2024(a)ABC Food Trading, LLC$118 $155 (b)Asahi Food, Inc.120 84 (a)Conexus Food Solutions LLC (formerly known as Best Food Services, LLC) 368 — Total$606 $239 _______________(a)An equity interest is held by three Irrevocable Trusts for the benefit of Mr. Zhang’s children.(b)The Company, through its subsidiary Mountain Food, LLC, owns an equity interest in this entity.All accounts receivable from these related parties are current and considered fully collectible. No allowance is deemed necessary as of September 30, 2025 and December 31, 2024.

15

Line of Credit Note - Related PartiesThe Company issued a $51,000 line of credit note