Company: HFFG
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001628280-25-039583
Chunk: 73

Company: HF Foods Group Inc.
Filing Date: 2025-08-11
Form: 10-Q
Item: Item 8
Chunk 73
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 Financial Instruments for additional information regarding the Company’s interest rate swaps. 

9

Carrying Value and Estimated Fair Value of Outstanding Debt - The following table presents the carrying value and estimated fair value of the Company’s outstanding debt as described in Note 8 - Debt, including the current portion, as of the dates indicated:Fair Value Measurements(In thousands)Level 1Level 2Level 3Carrying ValueJune 30, 2025 Fixed rate debt:Bank of America$— $— $79 $84 Variable rate debt:JPMorgan Chase$— $98,532 $— $98,532 Bank of America$— $1,987 $— $1,987 East West Bank$— $5,426 $— $5,421 December 31, 2024Fixed rate debt:Bank of America$— $— $104 $113 Other finance institutions$— $— $— $— Variable rate debt:JPMorgan Chase$— $101,040 $— $101,040 Bank of America$— $2,063 $— $2,063 East West Bank$— $5,518 $— $5,518 The carrying value of the variable rate debt approximates its fair value because of the variability of interest rates associated with these instruments. For the Company’s fixed rate debt, the fair values were estimated using discounted cash flow analyses, based on the current incremental borrowing rates for similar types of borrowing arrangements.See Note 8 - Debt for additional information regarding the Company’s debt.Nonrecurring Fair ValuesThe Company measures fair value of certain assets on a nonrecurring basis when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. No adjustments to fair value from the write-down of asset values due to impairment were made during the six months ended June 30, 2025 and 2024.As further disclosed in Note 6 - Goodwill and Acquired Intangible Assets, we performed a quantitative goodwill impairment analysis as of December 31, 2024. The results of testing as of December 31, 2024 concluded that the estimated fair value of our one reporting unit fell short of carrying value, and therefore impairment existed as of that date. Goodwill impairment charges of $46.3 million were recorded in the fourth quarter of the year ended December