Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 768

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 9C
Chunk 768
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2 – Composition
of Certain Financial Statement Captions).

Income taxes

Deferred taxes are provided
for items whose financial and tax bases differ. A valuation allowance is provided against deferred tax assets when it is expected that
it is more likely than not that the related asset will not be fully realized. The determination as to whether or not a deferred tax asset
can be fully realized is subject to a significant degree of judgment, based at least partially upon a projection of future taxable income,
which takes into consideration past and future trends in profitability, customer demand, supply costs, and multiple other factors, which
are inherently difficult to predict.

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We provide tax accruals for
federal, state, and local exposures relating to audit results, tax planning initiatives and compliance responsibilities. The development
of these accruals requires judgments about tax issues, potential outcomes, and timing. (See Note 4 for further information). Although
the outcome of these tax audits is uncertain, in management’s opinion adequate provisions for income taxes have been made for potential
liabilities emanating from these reviews. If actual outcomes differ materially from these estimates, they could have a material impact
on our results of operations.

Stock-based compensation

We measure and recognize compensation
expenses for all share-based payments to employees, including grants of employee stock options, in the financial statements based on the
fair value at the date of the grant. We have not issued, awarded, granted, or entered into any stock-based payment agreements since April
29, 1999, and no such expense was recognized in fiscal years 2024 and 2023.

Comprehensive income or
loss

Comprehensive income or loss
consists of net income and additional minimum pension liability adjustments net of taxes.

Recently issued
accounting pronouncements and regulations  

In June 2016, the FASB issued
ASU No. 2016-13, Financial Instruments—Credit Losses (ASC 326), which provides guidance on measurement of credit losses on
financial instruments. This ASU adds a current expected credit loss impairment model to GAAP that is based on expected losses rather than
incurred losses whereby a broader range of reasonable and supportable information is required to be utilized in order to derive credit
loss estimates. The effective date of the new guidance as amended by ASU No. 2019-10 is fiscal years beginning after December 15, 2022,
including interim periods within those fiscal years. The adoption of ASU No.