Company: HFFG
Filing Date: 2025-03-17
Form Type: 10-K
Source: 0001680873-25-000006
Chunk: 94

Company: HF Foods Group Inc.
Filing Date: 2025-03-17
Form: 10-K
Item: Item 8
Chunk 94
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31, 2024December 31, 2023Automobiles(1)$50,565 $37,256 Buildings63,045 63,045 Building improvements22,709 22,014 Furniture and fixtures398 474 Land49,929 49,929 Machinery and equipment13,216 11,532 Construction in progress10,370 1,391 Subtotal210,232 185,641 Less: accumulated depreciation(60,660)(52,505)Property and equipment, net$149,572 $133,136 _________________(1)    The cost and accumulated depreciation of property and equipment related to finance leases was $36.1 million and $14.3 million, respectively, at December 31, 2024 and $22.2 million and $10.3 million, respectively, at December 31, 2023, which primarily relates to Automobiles. During the year ended December 31, 2024, the Company entered into finance leases for automobiles which mature in 4 to 7 years and have a weighted average discount rate of 6.3%. The total future minimum lease payments under finance leases as of December 31, 2024 is $35.7 million. As of December 31, 2024, the Company had additional automobile leases that had not yet commenced which total $15.4 million in future minimum lease payments.    Depreciation expense was $10.4 million, $9.6 million and $9.2 million for the years ended December 31, 2024, 2023 and 2022, respectively. During the year ended December 31, 2023, the Company impaired machinery and recognized impairment expense of $1.2 million in distribution, selling and administrative expense in the consolidated statements of operations and comprehensive income (loss). Long-term investments consisted of the following:(In thousands)Ownership as of  December 31,2024December 31, 2024December 31, 2023Asahi Food, Inc. (“Asahi”)49%$550 $588 Pt. Tamron Akuatik Produk Industri (“Tamron”)12%1,800 1,800 Total long-term investments$2,350 $2,388 The investment in Tamron is accounted for using the measurement alternative under Accounting Standards Codification (“ASC”) Topic 321 Investments