Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 48

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 8
Chunk 48
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Company performed a detailed analysis and determined that the only indications of a long-term lease in addition to transportation
leases for long-haul trucks through July 11, 2024 and for the refrigerated truck were the warehouse leases with Racine Partners 4333
LLC and Hogshed Ventures, LLC.

The
Company’s five-year term lease with Racine Partners 4333 LLC, was effective June 1, 2022. An ROU asset of $2,155 and corresponding
liability for warehouse storage space of $2,222 as of January 24, 2025, was recorded for Racine Partners 4333 LLC for 43rd
Street in Chicago, Illinois. This lease does not provide an implicit rate and we estimated our incremental interest rate to be approximately
3.68%. We used our estimated incremental borrowing rate and other information available at the lease commencement date in determining
the present value of the lease payments. We leased warehouse storage space from Hogshed Ventures, LLC for 40th Street in Chicago, Illinois,
during fiscal year 2024. We leased this space under a non-cancelable operating lease. This lease terminated on June 30, 2024 and was
not renewed. There is no further lease liability recorded as of January 24, 2025.

We,
as lessor, leased a parking lot in Anaheim, California with a five-year term effective May 29, 2024, to a tenant. Both current and
non-current receivables less executory costs including broker’s commissions, were recorded in current and non-current
liabilities in the amount of $170
and $649,
respectively, as of January 24, 2025. Unearned revenue was also recorded in current and non-current liabilities in the amount
of $165
and $679,
respectively, in the consolidated balance sheets as of January 24, 2025 and November 1, 2024. This lease does not provide an implicit rate, and we
estimated our incremental interest rate to be approximately 7.34%.
We used our estimated incremental borrowing rate and other information available at the lease commencement date in determining the
present value of the lease payments. Legal ownership does not transfer at the end of the lease. We retain ownership of the parking
lot. There is no net book value of the underlying asset.

The
following is a schedule by years of future minimum lease payments for transportation leases and ROU assets:

Schedule
of Future