Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 118

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 118
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2023 and 2022 was $2.0 million, $1.5 million and $0.8 million, respectively.

The Company accounts for stock-based compensation in accordance with ASC Topic 718 Compensation - Stock Compensation (“ASC 718”). ASC 718 addresses all forms of share-based payment awards including shares issued under employee stock purchase plans and stock incentive shares.  The fair value of the RSUs and Financial PSUs are measured using the closing price of the Company’s common stock on NASDAQ Global Capital Market on the grant date. The fair value of TSR PSUs are determined using a Monte Carlo simulation model. No TSR PSUs were granted during the years ended December 31, 2024, 2023 and 2022.The fair value of RSUs are amortized on a straight-line basis over the requisite service period for each award. For the PSUs, the Company recognizes stock-based compensation expense on a straight-line basis for each vesting tranche over the longer of the derived, explicit, or implicit service period for the vesting tranche. As of interim and annual reporting periods, the Financial PSUs stock-based compensation expense is adjusted based on expected achievement of performance targets, while TSR PSUs stock-based compensation expense is not adjusted. The Company recognizes forfeitures as they occur.Stock-based compensation expense is included in distribution, selling and administrative expenses in the Company’s consolidated statements of operations and comprehensive income (loss). The components of stock-based compensation expense for the years ended December 31, 2024 and 2023 and 2022 were as follows:Year Ended December 31,(In thousands)202420232022Stock-based compensation (RSUs) expense$1,382 $2,118 $897 Stock-based compensation (PSUs) expense706 1,234 360 Total stock-based compensation expense$2,088 $3,352 $1,257 Tax benefit of stock-based compensation expense$742 $931 $366 

As of December 31, 2024, there was $3.1 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 1.96 years. Of the total unrecognized compensation cost, $1.6 million is related to RSUs with time-based vesting provisions and $1.5 million is related to PSUs with performance-based vesting provisions.