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

Company: HF Foods Group Inc.
Filing Date: 2025-11-10
Form: 10-Q
Item: Item 1
Chunk 10
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 Prepaid expenses and other current assets$6,416 $11,507 

7

Property and equipment, net consisted of the following:(In thousands)September 30, 2025December 31, 2024Automobiles (1)$65,310 $50,565 Buildings63,045 63,045 Building improvements (1)31,729 22,709 Furniture and fixtures422 398 Land49,915 49,929 Machinery and equipment (1)14,447 13,216 Construction in progress2,456 10,370 Subtotal227,324 210,232 Less: accumulated depreciation(68,607)(60,660)Property and equipment, net$158,717 $149,572 _________________(1)    The cost and accumulated depreciation of property and equipment related to finance leases was $50.1 million and $19.4 million, respectively, at September 30, 2025 and $36.1 million and $14.3 million, respectively, at December 31, 2024. The total future minimum lease payments under all finance leases as of September 30, 2025 is $45.8 million.   Depreciation expense was $3.2 million and $2.6 million for the three months ended September 30, 2025 and 2024, respectively. Depreciation expense was $9.4 million and $7.7 million for the nine months ended September 30, 2025 and 2024, respectively.Long-term investments consisted of the following:(In thousands)Ownership as of  September 30,2025September 30, 2025December 31, 2024Asahi Food, Inc. (“Asahi”)49%$391 $550 Pt. Tamron Akuatik Produk Industri (“Tamron”)12%1,800 1,800 Total long-term investments$2,191 $2,350 The investment in Tamron is accounted for using the measurement alternative under Accounting Standards Codification (“ASC”) Topic 321 Investments—Equity Securities, which is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments, if any. The investment in Asahi is accounted for under the equity method due to the fact that the Company has significant influence but does not exercise