Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 66

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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 its terms on November 30, 2024. Under the terms of this amendment and the revolving line of credit
note, we may borrow up to $7,500 from time to time up to November 30, 2025. Refer to Note 6 – Equipment Notes Payable and
Financial Arrangements to the Condensed Consolidated Financial Statements included within this Report for further information. As of
January 24, 2025, we had $1,091 of current debt on equipment loans, $59,735 of net working capital and $7,500 available under our
revolving line of credit with Wells Fargo Bank, N.A. Additionally as of January 24, 2025, the Company was in violation of the Fixed
Charge Coverage Ratio covenant of the Credit Agreement, which was subsequently waived for the fiscal quarter ended January 24, 2025
(per letter dated March 6, 2025).

All
of our operating segments have been impacted by inflation, including higher costs for labor, freight and specific materials related
to product manufacturing and delivery. We expect this trend to continue through the remainder of fiscal year 2025. Additionally,
commodity costs, including meat and flour costs, have and may continue to fluctuate due to both political and economic conditions,
including the ongoing conflict between Ukraine and Russia and Israel and Palestine. Despite higher commodity costs like we
experienced in fiscal year 2022 and again in fiscal year 2024, we may not be able to increase our product prices in a timely manner
or sufficiently to offset such increased commodity or other costs due to consumer price sensitivity, pricing in relation to
competitors and the reluctance of retailers to accept the price increase. Instances of higher interest rates, general price
inflation or deflation, higher raw materials costs, labor shortages or supply chain issues could adversely affect the
Company’s financial results and its liquidity. Higher product prices could potentially lower demand for our products and
decrease volume. Management believes there are various options available to generate additional liquidity to repay debt or fund
operations such as mortgaging real estate, should that be necessary. Our ability to increase liquidity will depend upon, among other
things, our business plans,  the performance of operating divisions, and economic conditions of capital markets. If we are unable
to increase liquidity through mortgaging real estate or additional borrowing, or generate positive cash flow necessary to fund
operations, we may not be able to compete successfully, which could negatively impact our