Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 83

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 8
Chunk 83
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2024.Line of Credit Note - Related PartiesThe Company issued a $51,000 line of credit note to Asahi Food, Inc. on November 1, 2024, which is outstanding at June 30, 2025 and included in other current assets in the consolidated balance sheet. Interest shall accrue at a rate of 7.25% per annum with monthly payments of interest only due beginning December 1, 2024 and continuing through the first day of each calendar month until the maturity date of October 31, 2025. Interest income was $924 and $2,157 for the three and six months ended June 30, 2025, which is included in other income, net in the condensed consolidated statements of operations and comprehensive income (loss).  Accounts Payable - Related PartiesAll the accounts payable to related parties are payable upon demand without interest. Below is a summary of accounts payable with related parties recorded as of June 30, 2025 and December 31, 2024, respectively:(In thousands)June 30, 2025December 31, 2024(a)Conexus Food Solutions LLC (formerly known as Best Food Services, LLC)$229 $35 Others11 17 Total$240 $52 _______________(a)An equity interest is held by three Irrevocable Trusts for the benefit of Mr. Zhang’s children.

Note 12 - Stock-Based Compensation

In 2021, the Company began issuing awards under the HF Foods Group Inc. 2018 Omnibus Equity Incentive Plan (the “2018 Incentive Plan”), which reserves up to 3,000,000 shares of the Company’s common stock for issuance of awards to employees and non-employee directors. On June 3, 2024, the Company’s shareholders approved an amendment to the 2018 Incentive Plan which increased the number of shares of the Company’s common stock available for issuance under the 2018 Incentive Plan to 7,000,000, an increase of 4,000,000 shares. As of June 30, 2025, the Company had 671,128 time-based vesting restricted stock units unvested, 1,077,464 performance-based restricted stock units unvested, 1,486,194 shares of common stock vested and 3,765,214 shares remaining available for future awards under the 2018 Incentive Plan. Stock-based compensation