Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 109

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 109
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$(0.92)$(0.04)$0.01 

Note 12 - Income Taxes

The provision (benefit) for income taxes of the Company for the years ended December 31, 2024, 2023 and 2022 consists of the following:Year Ended December 31,(In thousands)202420232022Current:Federal$1,346 $4,237 $3,620 State255 1,219 1,161 Current income taxes1,601 5,456 4,781 Deferred income benefit:Federal(756)(4,550)(4,321)State1,120 (865)(691)Deferred income taxes (benefit):364 (5,415)(5,012)Total income tax expense (benefit)$1,965 $41 $(231)The Company’s effective income tax rates for the years ended December 31, 2024, 2023 and 2022 were (4.3)%, (1.6)% and (5,148.7)%, respectively. The determination of the Company’s overall effective income tax rate requires the use of estimates. 

60

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. The Company has no operations outside the U.S., as such, no foreign income tax was recorded. Reconciliations of the statutory income tax rate to the effective income tax rate are as follows:Year Ended December 31,202420232022Federal statutory tax rate (21%)21.0 %21.0 %21.0 %State statutory tax rate(1.1)%(13.9)%3,963.2 %U.S permanent differences(0.3)%(8.7)%207.1 %Noncontrolling interests0.2 %5.5 %3,164.6 %Officers’ compensation(0.4)%(12.5)%— %Rate change(1.2)%— %(2,566.3)%Return to provision— %21.6 %— %Change in valuation allowance1.6 %(35.9)%