Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 110

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 110
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— %Tax credits0.3 %6.7 %— %Uncertain tax positions0.3 %14.9 %(10,573.0)%Stock compensation(0.2)%(6.6)%— %Payable adjustments— %6.0 %— %Dissolution of HFFI(1.6)%— %— %SEC Settlement(1.8)%— %— %Goodwill impairment charges(21.1)%— %— %Other— %0.3 %634.7 %Effective tax rate(4.3)%(1.6)%(5,148.7)%

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Temporary differences and carryforwards of the Company that created significant deferred tax assets and liabilities are as follows:(In thousands)December 31, 2024December 31, 2023Deferred tax assets:Allowance for expected credit losses$343 $523 Inventories967 1,216 Equity compensation465 552 Compensation related accruals948 984 Guarantee liability— 1,326 Fair value change in interest rate swap contracts— 233 Leases4,956 5,325 Accrued expenses792 902 Interest expense limitation2,297 415 Equity investments163 80 Net operating loss carryovers— 706 Other283 49 Total deferred tax assets11,214 12,311 Deferred tax liabilities:Property and equipment(6,751)(4,588)Intangible assets(30,609)(32,959)Right of use assets(2,646)(3,069)Fair value change in interest rate swap contracts(170)— Other(430)— Total deferred tax liabilities(40,606)(40,616)Less: Valuation allowance— (723)Net deferred tax liabilities$(29,392)$(29,028)As of December 31, 2024 and 2023, the Company had no federal net operating loss (“NOL”) carryovers and $3.0 million, respectively. As of December 31, 2024 and 2023, the Company had no state NOL carryovers and $2.2 million, respectively. The Company previously recorded a full valuation allowance against the NOL carryovers related to the Company’s subsidiary, HFFI.  In 2024, the Company dissolved