Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 20

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 20
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13 (c)Fortune One Foods, Inc.62 91 90 107 (d)Ocean Pacific Seafood Group, Inc.11 — 11 — Total$1,303 $1,011 $2,258 $1,829 _______________(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.(c)Mr. Zhou Min Ni owns an equity interest in this entity indirectly through its parent company.(d)Mr. Zhou Min Ni owns an equity interest in this entity.  Lease AgreementsThe 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, which is included in distribution, selling and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss), was $0.1 million for both the three months ended June 30, 2025 and 2024, and $0.2 million for both the six months ended June 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 Beginning 2014, the Company leased a warehouse to Asahi Food, Inc. under a commercial lease agreement which was rescinded March 1, 2020.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. Rental income was $36 thousand for both the three months ended June 30, 2025 and 2024, and $72 thousand for both the six months ended June 30, 2025 and 2024, which is included in other expense (income), net in the condensed consolidated statements of operations and comprehensive income (loss). Related Party BalancesAccounts Receivable - Related Parties, NetBelow is a summary of accounts receivable with related parties recorded as of June