Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 290

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 2
Chunk 290
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 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”).
Pursuant to the Wells Fargo Loan Agreements, we owe the amounts as stated in the table above.

     41 

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. The
main financial covenants are listed below:

    ●
    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, 

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

As of November 1, 2024, the Company was in compliance
with all covenants under the Wells Fargo Loan Agreements and the credit agreement.

Aggregate contractual maturities
of debt in future fiscal years are as follows as of November 1, 2024.

Schedule
of Aggregate Contractual Maturities of Debt in Future Fiscal Years 

    Fiscal Years
     
    Debt Payable

    2025
     
    $
    1,084

    2026
     
    $
    1,124

    2027
     
    $
    578

     42 

 NOTE 6- Contingencies and Commitments:

The Company leases warehouse
and/or office facilities throughout the United States through month-to-month rental agreements. In the case of month-to-month lease or
rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets and liabilities
and record them on a straight-line basis over the lease term. For further information regarding our lease accounting policy, please refer
to Note 1 – The Company and Summary of Significant Accounting Policies – Leases.

The Company leased three long-haul
trucks received during fiscal year 2019. The six-year leases for these trucks would have expired in fiscal year