Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 17

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 17
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. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. There were 1,305,105 and 1,354,908 potential common shares related to performance-based restricted stock units and restricted stock units that were excluded from the calculation of diluted EPS for the six months ended June 30, 2025 and 2024, respectively, because their effect could have been anti-dilutive.The following table sets forth the computation of basic and diluted EPS:Three Months Ended June 30,Six Months Ended June 30,($ in thousands, except share and per share data)2025202420252024Numerator:Net income (loss) attributable to HF Foods Group Inc.$1,216 $17 $(429)$(677)Denominator:Weighted-average common shares outstanding52,969,037 52,585,715 52,853,982 52,370,842 Effect of dilutive securities445,678 75,404 — — Weighted-average dilutive shares outstanding53,414,715 52,661,119 52,853,982 52,370,842 Earnings (Loss) per common share:Basic$0.02 $— $(0.01)$(0.01)Diluted$0.02 $— $(0.01)$(0.01)

Note 10 - Income Taxes

The determination of the Company’s overall effective income tax rate requires the use of estimates. The effective income tax rate reflects the income earned and taxed in U.S. federal and various state jurisdictions based on enacted tax law, permanent differences between book and tax items, tax credits and the Company’s change in relative income in each jurisdiction. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the Company’s effective income tax rate in the future. As of June 30, 2025, the Company had one subsidiary outside the U.S. that generated an insignificant amount of activity. As such, no foreign income tax was recorded.For the three and six months ended June 30, 2025, the Company’s effective income tax rate of 50.5% and 28.7%, respectively, differed from the federal statutory tax rate primarily as a result of permanent differences and state income taxes, partially offset 

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by tax credits. The company’s tax provision for the