Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 871

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 12
Chunk 871
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, on its
business and operations. Although the full impact of these factors is unknown, the Company believes it has made appropriate accounting
estimates and assumptions based on the facts and circumstances available as of the reporting date. However, actual results could differ
from those estimates. Amounts estimated related to liabilities for pension benefits, self-insured workers’ compensation and employee
healthcare benefits are subject to inherent uncertainties and these estimated liabilities may ultimately settle at amounts which may vary
from current estimates. Other areas with underlying estimates include realization of deferred tax assets, cash surrender or contract value
of life insurance policies, promotional allowances and the allowance for doubtful accounts and inventory reserves. Management believes
its current estimates are reasonable and based on the best information available at the time. To the extent there are material differences
between the estimates and the actual results, future results of operations could be affected.

Subsequent events

Management has evaluated events
subsequent to November 1, 2024, through the date the accompanying consolidated financial statements were filed with the Securities and
Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements.

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 replaces the 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.

 Based on management’s
review, no other material subsequent events were identified that require adjustment to the consolidated financial statements or additional
disclosure.

Accounts Receivable

Accounts receivables are recorded
at