Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 18

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 Credit and Equipment Note Payable 

    January 24, 2025  
    November 1, 2024 

    Revolving credit facility 
    $-  
    $- 
  
    Equipment note payable: 

    3.68% note due 04/16/27, out of lockout 04/17/22 
     2,609  
     2,786 
  
    Total debt 
     2,609  
     2,786 
  
    Less current debt 
     (1,091) 
     (1,084)
  
    Total long-term debt 
    $1,518  
    $1,702 

Loan
Covenants

The
Wells Fargo Loan Agreements and the credit agreement contain various affirmative and negative covenants that limit the use of funds and
define other provisions of the loans. Material financial covenants are listed below, and the capitalized terms are defined in the applicable
agreements:

    ●
    Total
    Liabilities divided by Tangible Net Worth not greater than 2.0 to 1.0 at each fiscal quarter end, 

    ●
    Quick
    Ratio not less than 1.25 to 1.0 at each fiscal quarter end, and

    ●
    Fixed
    Charge Coverage Ratio not less than 1.25 to 1.0 at each fiscal quarter end.

As
of January 24, 2025, the Company was in violation of the Fixed Charge Coverage Ratio covenant which was subsequently waived for the
fiscal quarter ended January 24, 2025 (per letter dated March 6, 2025). The Company was in compliance with all loan covenants as of
November 1, 2024.

13 of 25

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

(dollars
in thousands)

CAUTIONARY
NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain
statements included within in this Report, and the information and documents incorporated by reference with this Report, constitute “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are
intended to qualify for the safe