Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 81

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 81
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IE and, if so, whether the Company is the primary beneficiary of such VIE. In determining whether the Company is the primary beneficiary, the Company considers if the Company (1) has power to direct the activities that most significantly affect the economic performance of the VIE, and (2) has the obligation to absorb losses or the right to receive the economic benefits of the VIE that could be potentially significant to the VIE. If deemed the primary beneficiary, the Company consolidates the VIE. As of and for the years ended December 31, 2023 and 2022, the Company had one VIE, AnHeart, Inc. (“AnHeart”), for which the Company was not the primary beneficiary and therefore did not consolidate. Effective April 30, 2024, the Company assumed the lease for which AnHeart was a lessee and the Company was a guarantor, and as such, it no longer recognizes AnHeart as a VIE as of December 31, 2024. See Note 17 - Commitments and Contingencies for additional information on AnHeart.During the year ended December 31, 2022, the Company consolidated FUSO Trucking, LLC (“FUSO”) which was established to provide exclusive trucking services to the Company and was dissolved in 2022.  The results of operations and cash flows of FUSO prior to being dissolved were immaterial during 2022.  

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Noncontrolling InterestsGAAP requires that noncontrolling interests in subsidiaries and affiliates be reported in the equity section of the Company’s consolidated balance sheets. In addition, the amounts attributable to the net income (loss) of those noncontrolling interests are reported separately in the consolidated statements of operations and comprehensive loss.As of December 31, 2024 and December 31, 2023, noncontrolling interest equity consisted of the following:($ in thousands)Ownership ofnoncontrolling interest at December 31, 2024December 31, 2024December 31, 2023HF Foods Industrial, LLC (“HFFI”)(a)N/A$— $(759)Min Food, Inc.39.75%1,561 1,715 Monterey Food Service, LLC35.00%442 366 Total$2,003 $1,322 _______________(a)During the year ended December 31, 2024, upon dissolution of HFFI, the Company assumed HFF