Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 66

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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04/16/27
 
     2,340  
     2,786 
  
    Total debt 
     2,340  
     2,786 
  
    Less current debt 
     (2,340) 
     (1,084)
  
    Total long-term debt 
    $-  
    $1,702 

Loan
Covenants

The
Wells Fargo Loan Agreements and the credit agreement contain various affirmative and negative 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 not less than 1.25 to 1.0 at each fiscal quarter end, and

    ●
    Fixed
    Charge Coverage Ratio not less than 1.25 to 1.0 at each fiscal quarter end.

As
of April 18, 2025, the Company was in violation of the Fixed Charge Coverage Ratio covenant which was waived for the fiscal quarter ended
April 18, 2025 (per letter dated June 2, 2025). The Company was in compliance with all loan covenants as of November 1, 2024.

We do not anticipate being in compliance with the Fixed Charge Coverage
Ratio covenant of the Credit Agreement during the third and fourth fiscal quarters of 2025. Our inability to meet financial covenant requirements
of the Credit Agreement may impact our liquidity. We are discussing potential solutions with Wells Fargo Bank, N.A., regarding amendment or renewal of the revolving line of credit. We have reclassified $1,239 of equipment note payable from a long-term notes payable
- equipment to a current notes payable – equipment in compliance with ASC 470 Debt. We plan to implement 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