Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 98

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 98
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 straight-line basis over the lease term. The Company also recognizes finance lease assets and finance lease liabilities at inception, with lease expense recognized as interest expense and amortization of the lease payment. Variable lease costs were insignificant in the years ended December 31, 2024, 2023 and 2022.

Operating LeasesThe components of operating lease expense were as follows:Year Ended December 31,($ in thousands)202420232022Operating lease cost$4,709$4,342$4,045Short-term lease cost$868$1,507$1,037Weighted average remaining lease term (months)584247Weighted average discount rate5.4%4.5%3.8%Year Ended December 31,(In thousands)202420232022Operating cash flows from operating leases$4,623$4,234$4,005Finance LeasesThe components of lease expense were as follows: Year Ended December 31,(In thousands)202420232022Finance leases cost:Amortization of ROU assets$4,249 $2,639 $2,808 Interest on lease liabilities1,284 755 787 Total finance leases cost$5,533 $3,394 $3,595 Supplemental cash flow information related to finance leases was as follows: Year Ended December 31,(In thousands)202420232022Operating cash flows from finance leases$1,205$657$670

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Supplemental balance sheet information related to finance leases was as follows:($ in thousands)December 31, 2024December 31, 2023Property and equipment, at cost$36,072 $22,203 Accumulated depreciation(14,262)(10,288)Property and equipment, net$21,810 $11,915 Weighted average remaining lease term (months)143219Weighted average discount rate5.9 %5.7 %Maturities of lease liabilities are as follows:Operating Leases(In thousands)Related Party (1)Third PartyTotalFinanceLeasesYear Ended December 31,2025$331 $4,834 $5,165 $5,038 2026— 4,856 4,856 4,604 2027— 2,408 2,408 4,146 2028— 1,666 1,666 3,243 2029—