Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 87

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 8
Chunk 87
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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 lower average days sales outstanding compared to the same period in the prior year caused by acceleration
of select trade receivables from customers at a discount.

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

    July
    11, 2025  
    July
    12, 2024 
  
    Proceeds from sale of property,
    plant, and equipment 
    $151  
    $14 
  
    Additions to property,
    plant, and equipment 
     (1,882) 
     (2,524)
  
    Net cash provided by
    (used in) investing activities 
    $(1,731) 
    $(2,510)

Expenditures
for property, plant and equipment include the acquisition of equipment, upgrading of facilities to maintain operating efficiency and
investments in cost effective technologies to lower costs. In general, we capitalize the cost of additions and improvements and expense
the cost for repairs and maintenance. We may also capitalize costs related to improvements that extend life, increase the capacity, or
improve the efficiency of existing machinery and equipment. Specifically, capitalization of upgrades of facilities to maintain operating
efficiency include acquisitions of machinery and equipment used on packaging lines and refrigeration equipment used to process food products.

21 of 27

The
table below highlights additions to property, plant and equipment for the thirty-six weeks ended:

    July
    11, 2025  
    July