Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 235

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1C
Chunk 235
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 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 not less than 1.25 to 1.0 at the end of each fiscal quarter end.

As of November 1, 2024, the Company was in compliance
with all covenants under the Wells Fargo Loan Agreements and the credit agreement.

Aggregate contractual maturities
of debt in future fiscal years are as follows as of November 1, 2024.

Schedule
of Aggregate Contractual Maturities of Debt in Future Fiscal Years 

    Fiscal Years
     
    Debt Payable

    2025
     
    $
    1,084

    2026
     
    $
    1,124

    2027
     
    $
    578

     42 

 NOTE 6- Contingencies and Commitments:

The Company leases warehouse
and/or office facilities throughout the United States through month-to-month rental agreements. In the case of month-to-month lease or
rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets and liabilities
and record them on a straight-line basis over the lease term. For further information regarding our lease accounting policy, please refer
to Note 1 – The Company and Summary of Significant Accounting Policies – Leases.

The Company leased three long-haul
trucks received during fiscal year 2019. The six-year leases for these trucks would have expired in fiscal year 2025. We returned one
long-haul truck on June 22, 2023, for a loss of $12 and returned two long-haul trucks on July 11, 2024, for a loss of $90, in an effort
to reduce the overall cost of delivering products. All long-haul trucks under this lease agreement have been returned as of November 1,
2024. The Company leased one box truck for a market value of $27 on April 17, 2023, and that lease term is two years