Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 68

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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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 Since the amended and restated agreement superseded and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 no longer required and all covenant reporting
will be pursuant to the amended and restated credit agreement. As of the date of filing, the Company is in compliance with all
loan covenants and was in compliance with all loan covenants as of November 1, 2024.

We
anticipate being in compliance with the covenants of the Credit Agreement during the fourth fiscal quarter of 2025 and fiscal year 2026.
Our inability to meet financial covenant requirements in future quarters of the Credit Agreement may impact our liquidity. We have already
begun implementing a price increase on our products to help offset some of the higher costs for meat commodities and are focused on reducing
selling, general and administrative expenses. Certain factors such as increased commodity costs, tariffs, willingness of customers to
accept price increases and inflation of input costs, to name a few, may cause future outcomes to differ materially from those foreseen
in forward-looking statements.

13 of 27

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(dollars
in thousands)

CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain
statements included within  this Report, and the information and documents incorporated by reference with this Report, constitute “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of