Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 99

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 99
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694 694 2,020 Thereafter— 3,148 3,148 16,610 Total lease payments331 17,606 17,937 35,661 Less: Imputed interest(6)(3,629)(3,635)(11,935)Total$325 $13,977 $14,302 $23,726 _______________(1) See Note 13 - Related Party Transactions

As of December 31, 2024, the Company had additional leases for vehicles that had not yet commenced which total $15.4 million in future minimum lease payments and were excluded from the table above. These vehicle leases are expected to commence during the year ended December 31, 2025 with lease terms of 4 to 7 years. Also excluded from the table above, the Company entered into a lease on September 30, 2024 for a new Atlanta, Georgia based distribution center which commenced February 1, 2025 and total $15.8 million in future minimum lease payments over 10 years. 

Note 7 - AcquisitionsAcquisition of SealandOn April 29, 2022, the Company completed the acquisition of substantially all of the operating assets of Sealand, including equipment, machinery and vehicles. The acquisition was completed to expand the Company’s territory along the East Coast, from Massachusetts to Florida, as well as Pennsylvania, West Virginia, Ohio, Kentucky, and Tennessee.The price for the purchased assets was $20.0 million paid in cash at closing. In addition to the closing cash payment, the Company separately acquired all of the sellers’ saleable product inventory, for approximately $14.4 million and additional fixed assets for approximately $0.5 million. The Company accounted for this transaction under ASC 805 Business Combinations, by applying the acquisition method of accounting and established a new basis of accounting on the date of acquisition. The assets acquired by the Company were measured at their estimated fair values as of the date of acquisition. Goodwill is calculated as the excess of the purchase price over the net assets recognized and represent synergies and benefits expected as a result from combining operations with an emerging national presence. The transaction costs for the acquisition for the year ended December 31, 2022 totaled approximately $0.7 million and were reflected in distribution, selling and administrative expenses in the consolidated statement of operations and comprehensive income. 

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The information included herein was prepared based on the allocation of the