Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 26

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 26
---
 statement of operations. The
ultimate amount of withdrawal liability is dependent upon several factors including the funded status of the plan and contributions made
by other participating companies.

On
May 22, 2024, we transitioned our pension plan assets held with Morgan Stanley Smith Barney LLC to align with our updated investment
policy statement to shift away from equities to fixed income. This derisking strategy helps establish a basis for our investment results
as well as helping to ensure that assets of the plan are managed in accordance with the Employment Retirement Income Security Act of
1974 and related regulations.

We
are subject to the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act (collectively,
the “PPACA”). Requirements of the law include the removal of the lifetime limits on active and retiree medical coverage,
expanding dependent coverage to age 26 and the elimination of pre-existing conditions that may impact other postretirement benefits costs.
The PPACA law also includes a potential excise tax on the value of benefits that exceed a pre-defined limit. Fortunately, this potential
tax has been indefinitely deferred, and we do not see significant financial exposure. Finally, the PPACA includes provisions that require
employers to offer health benefits to all full-time employees (defined as 30 hours per week). The health coverage must meet minimum standards
for the actuarial value of the benefits offered and employee affordability. The legislative packages
related to pandemic relief included some minor provisions that impact health benefits in the future. These changes most prominently
focus on the impact of surprise balance bills from out-of-network providers. Our health care plans as they exist in 2025 are compliant
with all applicable regulations that currently exist. As we look to the future, we anticipate that future legislative action will impact
the plans offered to active and retired participants. As we have done in the past, our executive team will continue to assess the accounting
implications of the PPACA and potential future legislation to determine the impact on our financial position and results of operations.
The potential future effects and cost of complying with the legislative changes are not currently determinable.

Customer
Concentration > 20% of AR or >10% of Sales

The
table below shows customers that accounted for more than 20% of consolidated accounts receivable (“AR”) or 10% of consolidated
sales for the thirty-six weeks ended July 11, 2025, and July 12, 2024, respectively.

    Walmart