Company: HFFG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001680873-25-000074
Chunk: 78

Company: HF Foods Group Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 78
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 result in further impairment of goodwill.The Company determined that there were no events or circumstances during the nine months ended September 30, 2025 that would more likely than not reduce the fair value of the reporting unit below its carrying value. Goodwill was $38.8 million as of September 30, 2025 and December 31, 2024.  Acquired Intangible AssetsThe components of the intangible assets are as follows:September 30, 2025December 31, 2024(In thousands)GrossCarryingAmountAccumulatedAmortizationNetCarryingAmountGrossCarryingAmountAccumulatedAmortizationNetCarryingAmountNon-competition agreement$3,892 $(3,892)$— $3,892 $(3,723)$169 Trademarks and trade names44,207 (22,782)21,425 44,207 (19,465)24,742 Customer relationships185,266 (56,576)128,690 185,266 (48,651)136,615 Inventory Management System5,667 (342)5,325 — — — Total$239,032 $(83,592)$155,440 $233,365 $(71,839)$161,526 Amortization expense for acquired intangible assets was $4.0 million and $4.1 million for the three months ended September 30, 2025 and 2024. Amortization expense for acquired intangible assets was $11.8 million and $12.2 million for the nine months ended September 30, 2025 and 2024.

Note 7 - Derivative Financial InstrumentsDerivative InstrumentsThe Company utilizes interest rate swaps (“IRS”) for the sole purpose of mitigating interest rate fluctuation risk associated with floating rate debt instruments (as defined in Note 8 - Long-Term Debt). The Company does not use any other derivative financial instruments for trading or speculative purposes.On August 20, 2019, HF Foods entered into two IRS contracts with East West Bank (the “EWB IRS”) for initial notional amounts of $1.1 million and $2.6 million, respectively. On April 20, 2023, the Company amended the corresponding mortgage term loans, which pegged the two mortgage term loans to 1-month Term SOFR (Secured Overnight Financing Rate) + 2.29% per annum