Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 301

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 3
Chunk 301
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. On November 30, 2024, we
entered into a sixth amendment to the credit agreement with Wells Fargo Bank, N.A., and also executed a new revolving line of credit note
pursuant to the amendment. 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. As of November 1, 2024, we had $1,084 of current debt on equipment loans, $61,536 of net working capital
and $7,500 available under our revolving line of credit with Wells Fargo Bank, N.A. Refer to Note 5 to the Consolidated Financial Statements
and the “Revolving Credit Facility” and “Loan Covenants” included within this Report for further information.
The Company was in compliance with all loan covenants as of November 1, 2024.

All of our operating segments have been impacted
by inflation, including higher costs for labor, freight and specific materials related to product manufacturing and delivery through fiscal
year 2024. Additionally, commodity costs, including meat and flour costs, have and may continue to fluctuate due to both political and
economic conditions, including the ongoing conflict between Ukraine and Russia. Despite higher commodity costs like we experienced in
fiscal year 2024, we may not be able to increase our product prices in a timely manner or sufficiently to offset such increased commodity
or other costs due to consumer price sensitivity, pricing in relation to competitors and the reluctance of retailers to accept a price
increase. Instances of higher interest rates, general price inflation or deflation, raw materials costs, labor shortages or supply chain
issues could adversely affect the Company’s financial results and its liquidity. Higher product prices and promotions could potentially
lower demand for our product and decrease volume. Management believes there are various options available to generate additional liquidity
to repay debt or fund operations such as mortgaging real estate, should that be necessary. Our ability to increase liquidity will depend
upon, among other things, our business plans and the performance of operating divisions and economic conditions of capital markets. If
we are unable to increase liquidity through mortgaging real estate or additional borrowing, or generate positive cash flow necessary to
fund operations, we may not be able to compete successfully, which could negatively impact our business, operations, and financial condition.
With the cash expected to be generated from the Company’s operations, we anticipate that we