Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 59

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 8
Chunk 59
---
 equipment as a finance lease was $18 during the thirty-six weeks ended July 11, 2025.

The
Company performed a detailed analysis and determined that the only indications of a long-term lease in addition to transportation leases
for long-haul trucks through July 11, 2025, and for the refrigerated truck were the warehouse leases with Racine Partners 4333 LLC and
Hogshed Ventures, LLC.

The
Company’s 5five-year term lease with Racine Partners 4333 LLC, was effective June 1, 2022. An ROU asset of $1,692 and corresponding
liability for warehouse storage space of $1,754 as of July 11, 2025, was recorded for Racine Partners 4333 LLC for 43rd Street
in Chicago, Illinois. This lease does not provide an implicit rate, and we estimated our incremental interest rate to be approximately
3.68%. 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. 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