Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 39

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 of net working capital and $5,500 available under our revolving line of credit with Wells
Fargo. Additionally as of July 11, 2025, the Company was in compliance with or received waivers of all covenants of its credit
agreement with Wells Fargo. We anticipate being in compliance with covenants contained in the amended and restated credit agreement
during the fourth fiscal quarter of 2025 and fiscal year 2026. Our inability to meet financial covenant requirements of the amended
and restated credit agreement may impact our liquidity. On June 17, 2025, we signed a letter of intent with On Your Six Capital LLC
for equipment financing for five years collateralized by $4,300 in production and packaging equipment.

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of our operating segments have been impacted by inflation, including higher costs for labor, freight and specific materials related to
product manufacturing and delivery. We expect this trend to continue throughout the remainder of fiscal year 2025. Additionally, commodity
costs, including meat and flour costs, have and may continue to fluctuate due to both political and economic conditions, including the
ongoing conflicts between Ukraine and Russia, and Israel and Palestine, as well as increased tariffs. Despite these higher commodity costs, we may not be able to increase
our product prices in a timely manner or sufficiently to offset such increased commodity or other costs due to consumer price sensitivity,
pricing in relation to competitors and the reluctance of retailers to accept the price increase. Instances of higher interest rates,
general price inflation or deflation, higher raw materials costs, labor shortages or supply chain issues could adversely affect the Company’s
financial results and its liquidity. Higher product prices could potentially lower demand for our products and decrease volume. Management
believes there are various options available to generate additional liquidity to repay debt or fund operations such as mortgaging real
estate, should that be necessary. Our ability to increase liquidity will depend upon, among other things, our business plans, the performance
of operating divisions, and the economic conditions of capital markets. If we are unable to increase liquidity through mortgaging real
estate or additional borrowing, or generate positive cash flow necessary to fund operations, we may not be able to compete successfully,
which could negatively impact our business, operations, and financial condition. With the cash expected to be generated from the Company’s
operations, we anticipate that we will maintain sufficient liquidity to operate our business for at least the next twelve months. We
will continue