Company: HFFG
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001680873-25-000036
Chunk: 47

Company: HF Foods Group Inc.
Filing Date: 2025-05-12
Form: 10-Q
Item: Item 1
Chunk 47
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:Bank of America$— $— $91 $98 Variable rate debt:JPMorgan Chase$— $99,785 $— $99,785 Bank of America$— $2,022 $— $2,022 East West Bank$— $5,472 $— $5,472 December 31, 2024Fixed rate debt:Bank of America$— $— $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 three months ended March 31, 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 31, 2024. The calculation of the fair value of our reporting unit was determined using Level 3 fair value measurements due to its use of internal projections and unobservable measurement inputs.There were no assets that were carried at nonrecurring fair value at March 31, 2025. There were no assets carried at nonrecurring fair value other than goodwill at December 31, 2024.

10

Note 6 - Goodwill and Ac