Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 496

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 6
Chunk 496
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8, 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,
2023. 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, 2024, 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, 2024. Refer to Subsequent
Events under Note 1 to the Consolidated Financial Statements included within this Report for further information.

Equipment Notes 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 entered into additional master collateral loan
and security agreements with Wells Fargo Bank, N.A. on each of April 18, 2019, December 19, 2019, March 5, 2020, and April 17, 2020 (the
Original Wells Fargo Loan Agreement and the subsequent agreements collectively referred to as the “Wells Fargo Loan Agreements”).
Pursuant to the Wells Fargo Loan Agreements, we owe the amounts as stated in the table above.

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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. The
main financial covenants are listed below:

    ●
    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