Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 19

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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2 and determined that some of its California net operating losses (“NOL”)
may not be utilized. Therefore, a valuation allowance of $99 has been retained for such portion of the California NOL. As of April 18,
2025, the Company had NOL carryforwards of approximately $0 for federal and $5,000 for state purposes. The state loss carryforwards will
expire at various dates through 2040.

Our
federal income tax returns are open to audit under the statute of limitations for the fiscal years 2021 through 2023. We are subject
to income tax in Texas and various other state taxing jurisdictions. Our state income tax returns are open to audit under the statute
of limitations for the fiscal years 2020 through 2023.

Note
6 – Equipment Notes Payable and Financial Arrangements:

Revolving
Credit Facility

On
November 30, 2024, we entered into a sixth amendment to the credit agreement with Wells Fargo Bank, N.A. dated March 1, 2018, as
amended, and also executed a revolving line of credit note pursuant to the amendment. The revolving line of credit note replaced the
then-existing note that expired by its terms on November 30, 2024. Under the terms of this amendment and the revolving line of
credit note, we may borrow up to $7,500
from time to time up to November
30, 2025, at an
interest rate equal to (a) the daily simple secured overnight financing rate plus 2.0%, or if unavailable, (b) the prime rate, in
each case as determined by the bank. The line of credit has an unused commitment fee of 0.35%
of the available loan amount, payable on a quarterly basis. Amounts may be repaid and reborrowed during the term of the note.
Accrued interest is payable on the first day of each month and the outstanding principal balance and remaining interest are due and
payable on November 30, 2025. See Note 1 - Summary of Significant Accounting Policies - Subsequent Events for further details.

Equipment
Note Payable

On
December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank, N.A. (the “Original Wells
Fargo Loan Agreement”) for up to $15,000 in equipment financing which was amended and expanded as detailed below. We subsequently