Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 115

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 115
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 (loss). Beginning 2014, the Company leased a warehouse to Asahi Food, Inc. under a commercial lease agreement which was rescinded March 1, 2020.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 $0.1 million, $0.1 million and $0.1 million for the years ended December 31, 2024, 2023 and 2022, respectively, which is included in other expense (income), net in the 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 December 31, 2024 and December 31, 2023, respectively:(In thousands)December 31, 2024December 31, 2023(a)ABC Food Trading, LLC$155 $94 (b)Asahi Food, Inc.84 69 (a)Conexus Food Solutions LLC (formerly known as Best Food Services, LLC) — 84 (c)Enson Seafood GA, Inc. (formerly known as GA-GW Seafood, Inc.)N/A59 (d)Union Food LLC— 2 Total$239 $308 _______________(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)No longer considered a related party as of January 1, 2024 since Mr. Zhou Min Ni disposed his equity interest in this entity.(d)Tina Ni, one of Mr. Zhou Min Ni’s family members, owns an equity interest in this entity. The Company has reserved for 100% of the accounts receivable due from Enson Seafood GA, Inc. as of December 31, 2023. During the year ended December 31, 2024 it was determined that Enson Seafood GA, Inc. is no longer a related party due to Mr. Ni having sold all of his equity interest to a third party. All other accounts receivable