Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 75

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 8
Chunk 75
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 $3,892 $(3,723)$169 Trademarks and trade names44,207 (21,676)22,531 44,207 (19,465)24,742 Customer relationships185,266 (53,934)131,332 185,266 (48,651)136,615 Inventory Management System5,667 (138)5,529 — — — Total$239,032 $(79,640)$159,392 $233,365 $(71,839)$161,526 Amortization expense for acquired intangible assets was $3.9 million and $4.1 million for the three months ended June 30, 2025 and 2024. Amortization expense for acquired intangible assets was $7.8 million and $8.1 million for the six months ended June 30, 2025 and 2024.

Note 7 - Derivative Financial InstrumentsDerivative InstrumentsThe Company utilizes interest rate swaps (“IRS”) for the sole purpose of mitigating interest rate fluctuation risk associated with floating rate debt instruments (as defined in Note 8 - Debt). The Company does not use any other derivative financial instruments for trading or speculative purposes.On August 20, 2019, HF Foods entered into two IRS contracts with East West Bank (the “EWB IRS”) for initial notional amounts of $1.1 million and $2.6 million, respectively. On April 20, 2023, the Company amended the corresponding mortgage term loans, which pegged the two mortgage term loans to 1-month Term SOFR (Secured Overnight Financing Rate) + 2.29% per annum for the remaining duration of the term loans. The amended EWB IRS contracts fixed the two term loans at 4.23% per annum until maturity in September 2029. 

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On December 19, 2019, HF Foods entered into an IRS contract with Bank of America (the “BOA IRS”) for an initial notional amount of $2.7 million in conjunction with a newly contracted mortgage term loan of corresponding amount. On December 19, 2021, the Company entered into the Second Amendment to Loan Agreement, which pegged the mortgage term loan to Term SOFR + 2.5%. The BOA IRS was modified accordingly to fix the SOFR based loan to approximately 4.50%. The term loan and corresponding