Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 23

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 1
Chunk 23
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 thousands)2025202420252024Net Revenue$314,853 $302,342 $613,281 $597,996 Less:Cost of Revenue259,721 249,877 507,190 495,120 Operating Expenses:Payroll and related labor costs25,644 24,202 50,423 49,069 Professional fees2,138 2,603 4,728 6,813 Depreciation3,241 2,520 6,129 5,126 Amortization4,021 4,070 7,890 8,140 Other segment expenses (a)15,969 16,445 31,648 31,188 Distribution, selling and administrative expenses51,013 49,840 100,818 100,336 Interest expense2,817 3,119 5,426 5,953 Other (income) expense, net(414)3,466 (591)3,372 Change in fair value of interest rate swap contracts685 (361)1,869 (2,331)Lease guarantee income— (5,433)— (5,548)Income tax expense (benefit)521 1,599 (411)1,418 Less: net income attributable to noncontrolling interests(706)218 (591)353 NET INCOME AND COMPREHENSIVE INCOME ATTRIBUTABLE TO HF FOODS GROUP INC.$1,216 $17 $(429)$(677)_______________(a)Other segment expenses include distribution, selling and administrative expenses which are not provided to the chief operating decision maker on a regular basis. These expenses include primarily auto & truck expense, insurance, occupancy expense and utilities.

Note 14 - Commitments and ContingenciesFrom time to time, the Company is a party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of business. When the Company becomes aware of a claim or potential claim, it assesses the likelihood of any loss or exposure. In accordance with authoritative guidance, the Company records loss contingencies in its financial statements only for matters in which losses are probable and can be reasonably estimated. Where a range of loss can be reasonably estimated with no best estimate in the range, the Company records the minimum estimated liability. If the loss is not probable or the amount of the loss cannot be reasonably estimated, the Company discloses