Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 588

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 7A
Chunk 588
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 trucks under this lease agreement have been returned as of November 1,
2024. The Company leased one box truck for a market value of $27 on April 17, 2023, and that lease term is two years.

The Company leased one refrigerated
truck received on May 10, 2024, for a net present value of $166. The seven-year lease for this truck will expire in fiscal year 2031.
Amortization of equipment as a finance lease was $44 during the fifty-two weeks ended November 1, 2024.

The Company performed a detailed
analysis and determined that the only indications of a long-term lease in addition to transportation leases for long-haul trucks were
the warehouse leases with Hogshed Ventures, LLC and Racine Partners 4333 LLC.

The Company’s five-year
term lease with Racine Partners 4333 LLC, was effective June 1, 2022. A ROU asset of $2,383 and corresponding liability for warehouse
storage space of $2,450 as of November 1, 2024, was recorded for Racine Partners 4333 LLC for 43rd Street in Chicago, Illinois. This lease
does not provide an implicit rate and we estimated our incremental interest rate to be approximately 3.68%. We used our estimated incremental
borrowing rate and other information available at the lease commencement date in determining the present value of the lease payments. 

We leased warehouse storage
space from Hogshed Ventures, LLC for 40th Street in Chicago, Illinois, during fiscal year 2024. We leased this space under a non-cancellable
operating lease. This lease terminated on June 30, 2024 and was not renewed. There is no further lease liability recorded as of November
1, 2024.

We, as lessor, leased a parking
lot in Anaheim, California with a five-year term effective May 29, 2024, to a tenant. Both current and non-current receivables less executory
costs including broker’s commissions, were recorded in current and non-current liabilities in the amount of $161 and $722, as of
November 1, 2024. Unearned revenue was also recorded in the amount of $167 and $693, respectively, in the consolidated balance sheet as
of November 1, 2024. This lease does not provide an implicit rate, and we estimated our incremental interest rate to be approximately
7.34%.