Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 193

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1C
Chunk 193
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 for fiscal years 2024 and 2023 were impacted by such items as non-deductible meals and entertainment, non-taxable gains and
losses on life insurance policies and state income taxes. (Refer to Note 4 of Notes to Consolidated Financial Statements included within
this Report for more information).

Liquidity and Capital Resources (dollars in
thousands)

The principal source of operating cash flows is
cash receipts from the sale of our products, net of costs to manufacture, store, market and deliver such products. We normally fund our
operations from cash balances and cash flow generated from operations. Additionally, we have maintained a revolving line of credit with
Wells Fargo Bank, N.A. pursuant to the terms of the credit agreement dated March 1, 2018, as amended to date. On November 30, 2024, we
entered into a sixth amendment to the credit agreement with Wells Fargo Bank, N.A., and also executed a new revolving line of credit note
pursuant to the amendment. Under the terms of this amendment and the revolving line of credit note, we may borrow up to $7,500 from time
to time up to November 30, 2025. As of November 1, 2024, we had $1,084 of current debt on equipment loans, $61,536 of net working capital
and $7,500 available under our revolving line of credit with Wells Fargo Bank, N.A. Refer to Note 5 to the Consolidated Financial Statements
and the “Revolving Credit Facility” and “Loan Covenants” included within this Report for further information.
The Company was in compliance with all loan covenants as of November 1, 2024.

All of our operating segments have been impacted
by inflation, including higher costs for labor, freight and specific materials related to product manufacturing and delivery through fiscal
year 2024. Additionally, commodity costs, including meat and flour costs, have and may continue to fluctuate due to both political and
economic conditions, including the ongoing conflict between Ukraine and Russia. Despite higher commodity costs like we experienced in
fiscal year 2024, 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 a price
increase. Instances of higher interest rates, general price inflation or deflation, raw materials costs