Company: HFFG
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001680873-25-000036
Chunk: 16

Company: HF Foods Group Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 8
Chunk 16
---
 $2.9 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 1.98 years.

Note 13 - Segment InformationThe Company’s business consists of one operating segment, which is also its one reportable segment. The Company operates solely in the United States and derives revenues by providing sales of food and non-food to customers. The segment’s customer base consists primarily of Asian restaurants located throughout the United States.  The Company’s chief operating decision maker (“CODM”) is its chief executive officer, who reviews financial information presented on a consolidated basis. The CODM uses consolidated net (loss) income to assess financial performance and allocate resources. The Company’s measure of segment assets is total assets, as reported on the condensed consolidated balance sheets. Accounting policies for the company’s single operating segment are the same as those described in Note 2 - Summary of Significant Accounting Policies.

16

The following table presents selected financial information with respect to the Company’s single operating segment for the three months ended March 31, 2025 and 2024:Three Months Ended March 31,(In thousands)20252024Net Revenue$298,428 $295,654 Less:Cost of Revenue247,469 245,243 Payroll and related labor costs24,778 24,867 Professional fees2,590 4,210 Depreciation2,888 2,606 Amortization3,870 4,070 Other segment expenses (a)15,679 14,743 Distribution, selling and administrative expenses49,805 50,496 Interest expense2,609 2,834 Other income, net(177)(94)Change in fair value of interest rate swap contracts1,184 (1,970)Lease guarantee income— (115)Income tax benefit(932)(181)Less: net income attributable to noncontrolling interests115 135 NET LOSS AND COMPREHENSIVE LOSS ATTRIBUTABLE TO HF FOODS GROUP INC.$(1,645)$(694)_______________(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