Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 13

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 13
---
 date in determining
the present value of the lease payments. We leased warehouse storage space from Hogshed Ventures, LLC for 40th Street in Chicago, Illinois,
during fiscal year 2024. We leased this space under a non-cancellable operating lease. This lease terminated on June 30, 2024, and was
not renewed.

We,
as lessor, lease a parking lot in Anaheim, California with a five-year term effective May 29, 2024, to a tenant. Both current and non-current
receivables, less executory costs including broker’s commissions were recorded in current and non-current assets in the amount
of $176 and $559, respectively, as of July 11, 2025. Unearned revenue was also recorded in current and non-current liabilities in the
amount of $174 and $590, respectively, in the consolidated balance sheets as of July 11, 2025. This lease does not provide an implicit
rate, and we estimated our incremental borrowing rate to be approximately 7.34%. We used our estimated incremental borrowing rate and
other information available at the lease commencement date in determining the present value of the lease payments. Legal ownership does
not transfer at the end of the lease. We retain ownership of the parking lot. There is no net book value of the underlying asset.

The
following is a schedule by years of future minimum lease payments for transportation leases and ROU assets:

 Schedule of Future Minimum Lease Payments

    Fiscal Year 
    Financial
    Obligations 
  
    2025 
    $306 
  
    2026 
     1,206 
  
    2027 
     748 
  
    2028 
     253 
  
    Later Years 
     282 
  
    Total Minimum Lease Payments(a) 
    $2,795 
  
    Less: Amount representing executory costs 
     (46)
  
    Less: Amount representing
    interest(b) 
     - 
  
    Present value of future
    minimum lease payments(c) 
    $2,749 

    (a)
    Minimum
    payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price Index.
  
    (b)
    Amount
    necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate at the
    inception of the leases.
  
    (c)
    Reflected
    in Part I.