Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 20

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
5, the Company did not have any valuation allowance against its federal net deferred tax assets. Management reevaluated
the need for a valuation allowance at the end of 2022 and determined that some of its California net operating losses (“NOL”)
may not be utilized. Therefore, a valuation allowance of $99 has been retained for such portion of the California NOL. As of July 11,
2025, the Company had NOL carryforwards of approximately $0 for federal and $5,000 for state purposes. The state loss carryforwards will
expire at various dates through 2040.

Our
federal income tax returns are open to audit under the statute of limitations for the fiscal years 2021 through 2024. We are subject
to income tax in Texas and various other state taxing jurisdictions. Our state income tax returns are open to audit under the statute
of limitations for the fiscal years 2020 through 2024.

Note
6 – Equipment Notes Payable and Financial Arrangements:

Revolving
Credit Facility

The
Company maintains a revolving line of credit with Wells Fargo pursuant to a credit agreement dated November 30, 2024, as amended and
restated on July 23, 2025. Pursuant to the amended and restated agreement and the revolving line of credit note, we may borrow up to
$7,500
from time to time up until July
31, 2026, at an
interest rate equal to (a) the daily simple secured overnight financing rate plus 2.5% (increased from 2.0% in the July 2025 amended
and restatement), or if unavailable, (b) the prime rate, in each case as determined by the bank. The revolving line of credit
has an unused commitment fee of 0.35%
of the available loan amount, payable on a quarterly basis. We borrowed $2,000
under this line of credit on May 20, 2025, which remained unpaid as of July 11, 2025. 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 July 31, 2026.

Equipment
Note Payable

On
December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank, N