Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 84

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 8
Chunk 84
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 expense was $0.6 million and $0.5 million for the three months ended June 30, 2025 and 2024, respectively. Stock-based compensation expense was $1.0 million and $1.3 million for the six months ended June 30, 2025 and 2024, respectively. Stock-based compensation expense was included in distribution, selling and administrative expenses in the Company’s condensed consolidated statements of operations and comprehensive income (loss). As of June 30, 2025, there was $4.8 million of total unrecognized compensation cost related to all non-vested outstanding RSUs and PSUs outstanding under the 2018 Incentive Plan, with a weighted average remaining service period of 2.25 years.

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Note 13 - Segment InformationThe Company’s business consists of one operating segment, which is also its one reportable segment. The Company operates solely in the United States and derives revenues by providing sales of food and non-food to customers. The segment’s customer base consists primarily of Asian restaurants located throughout the United States.  The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated net (loss) income to assess financial performance and allocate resources. The Company’s measure of segment assets is total assets, as reported on the condensed consolidated balance sheets. The following table presents selected financial information with respect to the Company’s single operating segment for the three and six months ended June 30, 2025 and 2024:Three Months Ended June 30,Six Months Ended June 30,(In thousands)2025202420252024Net Revenue$314,853 $302,342 $613,281 $597,996 Less:Cost of Revenue259,721 249,877 507,190 495,120 Operating Expenses:Payroll and related labor costs25,644 24,202 50,423 49,069 Professional fees2,138 2,603 4,728 6,813 Depreciation3,241 2,520 6,129 5,126 Amortization4,021 4,070 7,890 8,140 Other segment expenses (a)15,969 16,445 31,648 31,188 Distribution, selling and administrative expenses51,013 49,840 100,818 100,336