Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 8

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 8
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 by our Snack Food Products segment direct-store-delivery route system are not costly to relocate and contain
no significant leasehold improvements or degree of integration over leased assets. Orders can be fulfilled by another route storage unit
interchangeably. No specialized assets exist in the rental storage units. Market price is paid for storage units. No guarantee of debt
is made.

ROU
lease assets are recorded within property, plant and equipment, net of accumulated depreciation and amortization. The Company leases
warehouse space from time to time that is recorded as ROU lease assets and corresponding lease liabilities. The Company no longer leases
long-haul trucks that were used by the Frozen Food Products segment. However, we have leased one refrigerated truck used in the Frozen
Food Products segment. Finance lease liabilities are recorded under other liabilities. The condensed consolidated balance sheets reflect
both the current and long-term obligations.

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,