Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 127

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1A
Chunk 127
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 to seasonal variation. We build ingredient inventories to take advantage of downward trends in seasonal prices
or anticipated supply limitations.

We purchase bulk flour under short-term fixed price
contracts at current market prices. The contracts are usually effective for and settle within three months or less at a fixed price and
quantity. We monitor and manage our ingredient costs to help negate volatile daily swings in market prices when possible. We do not participate
in the commodity futures market or hedging to limit commodity exposure.

     43 

The Company is involved in various claims and
legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not
expected to have a material adverse effect on the Company’s consolidated financial position or results of operations.

NOTE 7 - Segment Information:

We have two reportable operating
segments, Frozen Food Products (the processing and distribution of frozen products) and Snack Food Products (the processing and distribution
of meat and other convenience foods).

We evaluate each segment’s
performance based on revenues and operating income. Selling, general and administrative expenses include corporate accounting, information
systems, human resources and marketing management at the corporate level. These activities are allocated to each operating segment based
on revenues and/or actual usage.

The following segment information
is for the fiscal years ended November 1, 2024 (52 weeks) and November 3, 2023 (53 weeks):

Schedule of Segment Reporting Information, by Segment 

    2024

    Frozen Food 
    Products 

    Snack Food 
    Products 

    Other

    Totals

    Segment Information
  
    2024

    Frozen Food 
    Products 

    Snack Food 
    Products 

    Other

    Totals

    Net sales
     
    $
    58,408

    $
    165,237

    $
    -

    $
    223,645

    Cost of products sold

    42,404

    124,913

    -

    167,317

    Gross margin

    16,004

    40,324

    -

    56,328

    SG&A

    14,202

    48,247

    -

    62,449

    Loss on sale of property, plant, and equipment

    96

    50

    -

    146

    Operating income (loss) 
     
    $
    1,