Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 55

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 both the current and long-term obligations.

We
leased a parking lot to our lessee in accordance with ASC 842 under a 60-month lease contract. 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. We recorded a lease receivable,
both the current and non-current components, less executory costs including broker’s commissions. The discount rate implicit in
the lease is used to calculate the present value of minimum lease payments. Revenue will be deferred until earned and is recorded in
current and non-current liabilities.

Subsequent
events

Management
has evaluated events subsequent to July 11, 2025, through the date that the accompanying Condensed Consolidated Financial Statements
were filed with the Securities and Exchange Commission (the “SEC”) for transactions and other events which may require adjustments
of and/or disclosure in such financial statements.

On
July 14, 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. We expect to finalize the agreement in the fourth quarter of fiscal year 2025 and use the proceeds to pay off existing
borrowing of $2,000 on the line of credit with Wells Fargo.

On
July 23, 2025, we entered into an amended and restated credit agreement dated November 30, 2024, with Wells Fargo Bank, N.A.
(“Wells Fargo”) This agreement restates and supersedes our existing credit agreement with Wells Fargo that was set to
expire by its terms on November 30, 2025. Under the terms of this amended and restated credit 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%, 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. 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