Company: HFFG
Filing Date: 2025-04-25
Form Type: DEF 14A
Source: 0001680873-25-000022
Chunk: 29

Company: HF Foods Group Inc.
Filing Date: 2025-04-25
Form: DEF 14A
Chunk 29
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 Company leases various facilities to Related Parties.

In 2020, the Company renewed a warehouse lease from Yoan Chang Trading Inc. under an operating lease agreement which expired on December 31, 2020. In February 2021, the Company executed a new five-year operating lease agreement with Yoan Chang Trading Inc., effective January 1, 2021, and expiring on December 31, 2025. Rent expense was $0.3 million for the year ended December 31, 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Beginning 2014, the Company leased a warehouse to Asahi Food, Inc. under a commercial lease agreement which was rescinded March 1, 2020.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. Rental income was $0.1 million for the year ended December 31, 2024.

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#### Related Party Balances
Accounts Receivable - Related Parties, Net

Below is a summary of accounts receivable with Related Parties recorded as of December 31, 2024:

|     |     | (In thousands)        |     | December 31, 2024 |     |
|:----|:----|:----------------------|:----|:------------------|----:|
| (a) |     | ABC Food Trading, LLC |     | $                 | 155 |
| (b) |     | Asahi Food, Inc.      |     |                   |  84 |
|     |     | Total                 |     | $                 | 239 |

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(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.

Line of Credit Note - Related Parties

The Company issued a $51,000 line of credit note to Asahi Food, Inc. on November 1, 2024, which is outstanding at December 31, 2024. Interest shall accrue at a rate of 7.25% per annum with monthly payments of interest only