Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 101

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 101
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Pro forma net income attributable to HF Foods$35 Pro forma earnings per common share—basic$— Pro forma earnings per common share—diluted$— Pro forma weighted average shares—basic53,757,199Pro forma weighted average shares—diluted53,757,199

55

Note 8 - Goodwill and Acquired Intangible AssetsGoodwill

The changes in the carrying amount of goodwill are presented below:(In thousands)AmountBalance at December 31, 2022$85,118 No Goodwill activity— Balance at December 31, 2023$85,118 Goodwill impairment charges(46,303)Balance at December 31, 2024$38,815 Accumulated impairment for goodwill is $384.5 million as of December 31, 2024 and $338.2 million as of December 31, 2023 and 2022. Prior to the goodwill impairment charge in the current year, the accumulated impairment resulted from an impairment during the year ended December 31, 2020.There is only one reporting unit at December 31, 2024 and 2023. The Company tests goodwill for impairment at least annually, as of December 31, or whenever events or changes in circumstances indicated goodwill might be impaired.The Company performed a quantitative goodwill impairment assessment as of December 31, 2023, as a result of the Company’s results of operations during 2023 compared to previous forecasts, combined with the level of the Company’s stock price. The annual goodwill impairment test in 2023 resulted in an estimated fair value that exceeded carrying value at December 31, 2023, and therefore, the Company concluded no impairment was required to be recorded during the year ended December 31, 2023.  As of September 30, 2024, the Company concluded that a triggering event occurred due to a sustained decline in the Company’s stock price since December 31, 2023, which required interim testing for goodwill impairment in accordance with ASC 350. Accordingly, the Company performed a quantitative assessment as of September 30, 2024. The fair value of the reporting unit exceeded the carrying value, and therefore the Company concluded no impairment was required to be recorded during the period ended September 30, 2024. As a result of continued declines in the level of stock price, the Company performed a quantitative impairment assessment as of December 31, 2024. The results of