Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 462

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 6
Chunk 462
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 first day of
each month and the outstanding principal balance and remaining interest are due and payable on November 30, 2024. Refer to Subsequent
Events under Note 1 to the Consolidated Financial Statements included within this Report for further information.

Loan Covenants

The Wells Fargo Loan Agreements and the credit
agreement contain various affirmative and negative covenants that limit the use of funds and define other provisions of the loans. Material
financial covenants are listed below, and the capitalized terms are defined in the applicable agreements:

    ●
    Total Liabilities divided by Tangible Net Worth not greater than 2.0 to 1.0 at each fiscal quarter end,

    ●
    Quick Ratio not less than 1.25 to 1.0 at each fiscal quarter end, 

    ●
    Fixed Charge Coverage Ratio not less than 1.25 to 1.0 at each fiscal quarter end.

 16 

As of November 1, 2024, the Company was in compliance
with all covenants under the Wells Fargo Loan Agreements and the credit agreement.

Aggregate contractual maturities
of debt in future fiscal years are as follows as of November 1, 2024:

    Fiscal Years
     
    Debt Payable

    2025
     
    $
    1,084

    2026
     
    $
    1,124

    2027
     
    $
    578

Impact of Inflation

Our operating results are heavily dependent upon
the prices paid for raw materials. The marketing of our value-added products does not lend itself to instantaneous changes in selling
prices. Changes in selling prices are relatively infrequent and do not compare with the volatility of commodity markets. All of our operating
segments have been impacted by inflation, including higher costs for labor, freight, and specific materials. We expect this trend to continue
through fiscal year 2025. Management is of the opinion that the Company’s financial position and its capital resources are sufficient
to provide for its operating needs and capital expenditures for fiscal year 2025. However, future volatility of general price inflation
or deflation and raw material cost and availability could adversely affect our financial results.

Off-Balance Sheet Arrangements

We do not currently have any off-balance sheet
arrangements within the meaning of Item 303(b) of Regulation S-K.

Contractual Obligations

Except as described above, we