Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 10

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 10
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 $2,350 The investment in Tamron is accounted for using the measurement alternative under Accounting Standards Codification (“ASC”) Topic 321 Investments—Equity Securities, which is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments, if any. The investment in Asahi is accounted for under the equity method due to the fact that the Company has significant influence but does not exercise control over this investee. The Company determined there was no impairment for the three months ended June 30, 2025 and 2024 for these investments.Accrued expenses and other liabilities consisted of the following:(In thousands)June 30, 2025December 31, 2024Accrued compensation$7,164 $7,497 Accrued professional fees818 553 Accrued interest and fees877 938 Self-insurance liability2,060 1,671 Advance from customers1,380 3,081 Other5,277 4,261 Total accrued expenses and other liabilities$17,576 $18,001 

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Note 5 - Fair Value MeasurementsThe following table presents the Company’s hierarchy for its assets and liabilities measured at fair value on a recurring basis as of the dates indicated:June 30, 2025December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalQuoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsSignificant Unobservable InputsQuoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsSignificant Unobservable Inputs(In thousands)Assets:Interest rate swaps$— $280 $— $280 $— $504 $— $504 Liabilities:Interest rate swaps$— $1,645 $— $1,645 $— $— $— $— The Company follows the provisions of ASC Topic 820 Fair Value Measurement which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:•Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.•Level 2 - Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities