Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 40

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 to monitor the impact of inflation and interest rate volatility on our liquidity and, if necessary, take action to preserve
liquidity and ensure that our business can operate during these uncertain times.

Cash
flows from operating activities for the thirty-six weeks ended:

    July
    11, 2025  
    July
    12, 2024 
  
    Net loss 
    $(6,610) 
    $(2,730)

    Adjustments to reconcile net loss to net cash
    (used in) provided by operating activities: 

    Depreciation and amortization 
     4,459  
     4,489 
  
    Provision for credit losses on accounts receivable 
     313  
     215 
  
    Decrease in promotional allowances 
     (589) 
     (1,449)
  
    (Gain) loss on sale of property, plant, and
    equipment 
     (167) 
     161 
  
    Changes in operating working
    capital 
     (2,974) 
     2,516 
  
    Net cash (used in) provided
    by operating activities 
    $(5,568) 
    $3,202 

For
the thirty-six weeks ended July 11, 2025, net cash used in operating activities was $5,568, which was $8,770 more cash used than during
the same period in fiscal year 2024. The increase in net cash used by operating activities primarily relates to an increase in inventory
of $9,576, an increase in other non-current assets of $2,298, and a net loss of $6,906 partially offset by a decrease in accounts receivable
of $7,267 and increase in accounts payable of $1,638. During the thirty-six-week period ended July 11, 2025, we did not contribute towards
our defined benefit pension plan. Plan funding strategies may be adjusted depending upon economic conditions, investment options, tax
deductibility, or recent legislative changes in funding requirements.

Our
cash conversion cycle (defined as days of inventory and trade receivables less days of trade payables outstanding) was equal to 68 days
for the thirty-six-week period ended July 11, 2025. The decrease in the cash conversion cycle from 85 days to 68 days for the thirty-six-week
period ended July 12, 2024, was due to