Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 114

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 2
Chunk 114
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 turning to private-label products to reduce their expenses.
The Company is also seeking bids for its production materials to drive increased competition among its vendors while maintaining quality
inputs at the best possible price.

On
July 23, 2025, we entered into an amended and restated credit agreement dated November 30, 2024, with Wells Fargo. This agreement
amends, restates and supersedes our existing credit agreement with Wells Fargo that was set to expire by its terms on November 30,
2025. Under the terms of this amended and restated credit agreement and the revolving line of credit note, we may borrow up to $7,500 from time to time until
July 31, 2026. Refer to Note 6 – Equipment Notes Payable and Financial Arrangements to the Condensed Consolidated Financial Statements included
within this Report for further information.

We
are in the process of implementing price increases 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 including but not limited to increased
commodity costs, tariffs, the 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. As of July 11, 2025, we had $1,111 of
current debt on equipment loans, $52,832 of net working capital and $5,500 available under our revolving line of credit with Wells
Fargo. Additionally as of July 11, 2025, the Company was in compliance with or received waivers of all covenants of its credit
agreement with Wells Fargo. We anticipate being in compliance with covenants contained in the amended and restated credit agreement
during the fourth fiscal quarter of 2025 and fiscal year 2026. Our inability to meet financial covenant requirements of the amended
and restated credit agreement may impact our liquidity. On June 17, 2025, we signed a letter of intent with On Your Six Capital LLC
for equipment financing for five years collateralized by $4,300 in production and packaging equipment.

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All
of our operating segments have been impacted by inflation, including higher costs for labor, freight and specific materials related to
product manufacturing and delivery. We expect this trend to continue throughout the remainder of fiscal year 2025. Additionally, commodity
costs, including meat and flour