Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 113

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 2
Chunk 113
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,426) 
    $1,002 

For
the twenty-four weeks ended April 18, 2025, net cash used in operating activities was $5,426, which was $6,428 more cash used than during
the same period in fiscal year 2024. The increase in net cash used by operating activities primarily relates to an increase in inventory
of $6,717, an increase in prepaid expenses and other current assets of $1,396, and a net loss of $4,973 partially offset by a decrease
in accounts receivable of $2,965 and increase in accounts payable of $2,030. During the twenty-four-week period ended April 18, 2025,
we did not contribute towards our defined benefit pension plan. Plan funding strategies may be adjusted depending upon economic conditions,
investment options, tax deductibility, or recent legislative changes in funding requirements.

Our
cash conversion cycle (defined as days of inventory and trade receivables less days of trade payables outstanding) was equal to 74 days
for the twenty-four-week period ended April 18, 2025. The decrease in the cash conversion cycle from 91 days to 74 days for the twenty-four-week
period ended April 19, 2024, was due to lower average days in inventory compared to the same period in the prior year.

Cash
flows from investing activities for the twenty-four weeks ended:

    April 18, 2025  
    April 19, 2024 
  
    Proceeds from sale of property, plant, and equipment 
    $28  
    $2 
  
    Additions to property, plant, and equipment 
     (1,576) 
     (1,869)
  
    Net cash used in investing activities 
    $(1,548) 
    $(1,867)

Expenditures
for property, plant and equipment include the acquisition of equipment, upgrading of facilities to maintain operating efficiency and
investments in cost effective technologies to lower costs. In general, we capitalize the cost of additions and improvements and expense
the cost for repairs and maintenance. We may also capitalize costs related to improvements that extend the life, increase the capacity,
or improve the efficiency of existing machinery and equipment. Specifically, capitalization of upgrades of facilities to maintain operating
efficiency include acquisitions of machinery and equipment used on packaging lines and refrigeration equipment used to process food products.

The
table below highlights additions to property, plant and