Company: HFFG
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001680873-25-000074
Chunk: 92

Company: HF Foods Group Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 8
Chunk 92
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 three five-year renewal options due to the investment the Company is making to the leased property infrastructure. The Company shall pay rent of approximately $120,000 per month with provisions for yearly increases totaling $29.0 million in future minimum lease payments over 15 years.

As of September 30, 2025, the current portion and non-current portion of obligations under all operating leases was $4.2 million and $23.8 million, respectively. 

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Note 16 - Subsequent EventsDeparture of Chief Financial OfficerCindy Yao, separated from the Company as its Chief Financial Officer effective October 15, 2025 (the “Separation Date”). In connection with Ms. Yao’s separation, the Company entered into a separation agreement with Ms. Yao on October 30, 2025 (the “Separation Agreement”). Under the Separation Agreement, Ms. Yao will be entitled, subject to her non-revocation of a general release of claims in favor of the Company, to one-half of her annual base salary of $375,000, paid out over a period of six months following the Separation Date (the “Severance Period”), subject to deduction for applicable withholding taxes. Ms. Yao will also be eligible to elect group health plan continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) following the Separation Date, including coverage for eligible dependents, until the earliest of (i) the expiration of the Severance Period, (ii) the expiration of eligibility for continuation coverage under COBRA, or (iii) the date on which Ms. Yao becomes eligible for substantially equivalent health insurance coverage in connection with new employment.Utah Building SaleOn October 17, 2025, the Company entered into an agreement to sell a warehouse owned by the Company located in West Jordan, Utah. The agreement provides for a sale price of $4.6 million and is expected to close during the fourth quarter, subject to customary closing conditions. The Company does not expect the transaction to have any significant impact on current customers as operations will be consolidated into another nearby facility owned by the Company. As the building remains in use, the asset was not classified as held for sale as of September 30, 2025 on the Company’s Consolidated Balance Sheet.

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ITEM 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on