Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 26

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1
Chunk 26
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 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 each fiscal quarter end.

 16 

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:

    Fiscal Years
     
    Debt Payable

    2025
     
    $
    1,084

    2026
     
    $
    1,124

    2027
     
    $
    578

Impact of Inflation

Our operating results are heavily dependent upon
the prices paid for raw materials. The marketing of our value-added products does not lend itself to instantaneous changes in selling
prices. Changes in selling prices are relatively infrequent and do not compare with the volatility of commodity markets. All of our operating
segments have been impacted by inflation, including higher costs for labor, freight, and specific materials. We expect this trend to continue
through fiscal year 2025. Management is of the opinion that the Company’s financial position and its capital resources are sufficient
to provide for its operating needs and capital expenditures for fiscal year 2025. However, future volatility of general price inflation
or deflation and raw material cost and availability could adversely affect our financial results.

Off-Balance Sheet Arrangements

We do not currently have any off-balance sheet
arrangements within the meaning of Item 303(b) of Regulation S-K.

Contractual Obligations

Except as described above, we had no other debt
or other contractual obligations within the meaning of Item 303(b) of Regulation S-K, as of November 1, 2024.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported
revenues and expenses during the respective reporting periods. Actual results could differ from those estimates. Amounts estimated related
to liabilities for self-insured workers’ compensation, employee healthcare and pension benefits are especially subject to inherent