Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 92

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 2
Chunk 92
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ed 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 November 30, 2025.

Equipment
Notes Payable

On
each of December 26, 2018, April 18, 2019, December 19, 2019, March 5, 2020, and April 17, 2020, we entered into master collateral loan
and security agreements with Wells Fargo Bank, N.A. (collectively referred to as the “Wells Fargo Loan Agreements”).

The
following table reflects major components of our revolving credit facility and equipment note payable as of January 24, 2025, and November
1, 2024, respectively.

    January 24, 2025  
    November 1, 2024 

    Revolving credit facility 
    $-  
    $- 
  
    Equipment note payable: 

    3.68% note due 04/16/27, out of lockout 04/17/22 
     2,609  
     2,786 
  
    Total debt 
     2,609  
     2,786 
  
    Less current debt 
     (1,091) 
     (1,084)
  
    Total long-term debt 
    $1,518  
    $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 January 24, 2025, the Company was in violation of the Fixed Charge Coverage Ratio covenant which was subsequently waived for the
fiscal quarter ended January 24, 2025 (per letter dated March 6, 202