Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 12

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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 for the refrigerated truck were the warehouse leases with Racine Partners 4333 LLC and
Hogshed Ventures, LLC.

The
Company’s five5-year
term lease with Racine Partners 4333 LLC, was effective June 1, 2022. An ROU asset of $1,924 and corresponding liability for warehouse
storage space of $1,992 as of April 18, 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-cancelable operating lease. This lease terminated on June 30, 2024 and was not renewed.

We,
as lessor, leased 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
$173 and $605, respectively, as of April 18, 2025. Unearned revenue was also recorded in current and non-current liabilities in the amount
of $170 and $635, respectively, in the consolidated balance sheets as of April 18, 2025. This lease does not provide
an implicit rate, and we estimated our incremental interest 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  

    Fiscal Year
     
    Financial  Obligations 
  
    2025 
    $592 
  
    2026 
     1,206 
  
    2027 
     748 
  
    2028 
     253 
  
    Later Years 
     272