Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 54

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 54
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We
leased a parking lot to our lessee in accordance with ASC 842 under a 60-month lease contract. 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. We recorded a lease receivable,
both the current and non-current components, less executory costs including broker’s commissions. The discount rate implicit in
the lease is used to calculate the present value of minimum lease payments. Revenue will be deferred until earned and is recorded in
current and non-current liabilities.

Subsequent
events

Management
has evaluated events subsequent to April 18, 2025, through the date that the accompanying Condensed Consolidated Financial Statements
were filed with the Securities and Exchange Commission (the “SEC”) for transactions and other events which may require adjustments
of and/or disclosure in such financial statements.

The
Company maintains a line of credit with Wells Fargo Bank, N.A. that expires on November 30, 2025. Under the terms of the revolving line
of credit note, we may borrow up to $7,500 from time to time up to November 30, 2025, at an interest rate equal to (a) the daily simple
secured overnight financing rate plus 2.0%, or if unavailable, (b) the prime rate, in each case as determined by the bank. See Note 6 - Equipment Notes Payable and Financial Arrangements - Revolving
Credit Facility for further details. The Company
borrowed $2,000 under this line of credit on May 20, 2025.

No
material events were identified that require adjustment to the financial statements or additional disclosure.

Basic
loss per share

Basic
loss per share is calculated based on the weighted average number of shares outstanding for all periods presented. No stock
options, warrants, or other potentially dilutive convertible securities were outstanding as of April 18, 2025, or April 19, 2024.

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Recently
issued accounting pronouncements and regulations

In
June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (ASC 326), which provides guidance on measurement
of credit losses on financial instruments. This ASU adds a current expected credit loss impairment model to GAAP that is based on expected
losses rather than incurred losses whereby a broader range of reasonable and supportable