Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 20

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
entered into additional master collateral loan and security agreements with Wells Fargo Bank, N.A. on each of April 18, 2019, December
19, 2019, March 5, 2020, and April 17, 2020 (the Original Wells Fargo Loan Agreement and the subsequent agreements 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 April 18, 2025, and November
1, 2024, respectively.

Schedule
of Line of Credit and Equipment Note Payable  

    April 18, 2025  
    November 1, 2024 

    Revolving credit facility 
    $-  
    $- 
  
    Equipment note payable: 

    3.68%
note due 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 202