Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 44

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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 agreement with the covenants detailed above. Since the amended and restated
agreement superseded and replaced the original credit agreement, covenant reporting under the original credit agreement was no longer
required and all covenant reporting will be pursuant to the amended and restated credit agreement. As of the date of filing, the
Company is in compliance with all loan covenants and was in compliance with all loan covenants as of November 1, 2024.

We
anticipate being in compliance with the covenants of the amended and restated credit agreement during the  fourth fiscal quarter of 2025.
Our inability to meet financial covenant requirements in future quarters of the amended and restated credit agreement may impact our liquidity. We have already
begun implementing a price increase on our products to help offset some of the higher costs for meat commodities and are focused on reducing
selling, general and administrative expenses. Certain factors such as increased commodity costs, tariffs, willingness of customers to
accept price increases and inflation of input costs, to name a few, may cause future outcomes to differ materially from those foreseen
in forward-looking statements.

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 information is required to be utilized in order
to derive credit loss estimates. The effective date of the new guidance as amended by ASU No. 2019-10 is fiscal years beginning after
December 15, 2022, including interim periods within those fiscal years. The adoption of ASU No. 2019-10 did not have a material or significant
impact on the Company’s Consolidated Financial Statements as it has been our policy to estimate and record credit losses on trade
accounts receivable.

In
November 2023, the FASB issued ASU No. 2023-07, Segment Reporting – Improvements to Reportable Segments Disclosures. ASU No. 2023-07
enhances disclosures of significant segment expenses by requiring disclosure of significant segment expenses regularly provided to the
chief operating decision maker (CODM), extending certain annual disclosures to interim periods, and permitting more than one measure