Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 21

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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.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, 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”).

The
following table reflects major components of our revolving credit facility and equipment note payable as of July 11, 2025, and November
1, 2024, respectively.

Schedule
of Line of Credit and Equipment Note Payable   

    July
    11, 2025  
    November
    1, 2024 

    Revolving credit facility 
    $2,000  
    $- 
  
    Equipment note payable: 

    3.68%
    note due 04/16/27 
     2,068  
     2,786 
  
    Total debt 
     4,068  
     2,786 
  
    Less current debt 
     (3,111) 
     (1,084)
  
    Total long-term debt 
    $957  
    $1,702 

Loan
Covenants

The
Wells Fargo Loan Agreements and the amended and restated credit agreement contain various covenants that
limit the use of funds and define other provisions of the loans. Material financial covenants are listed below, and the capitalized
terms are defined in the applicable agreements:

    ●
    Total
    Liabilities divided by Tangible Net Worth not greater than 2.0 to 1.0 at each fiscal quarter end, 

    ●
    Quick
    Ratio of not less than 1.25 to 1.0 at each fiscal quarter end, and

    ●
    Net
    income after taxes of not less than $1.00 on a quarterly basis, determined as of each fiscal quarter end, commencing on January 30,
    2026. 

The amended and restated credit agreement eliminated the fixed charge coverage ratio covenant contained in the original
credit agreement. Since the amended and restated agreement superseded and
replaced the prior agreement, covenant reporting under the original credit agreement was