Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 81

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1A
Chunk 81
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 and Snack Food Products segments, $50 and $86, for fiscal years 2024 and 2023, respectively. 

Income Taxes

Income tax for fiscal years 2024 and 2023, respectively,
was as follows:

    November 1, 2024  
    November 3, 2023 
  
    (Benefit on) provision for income taxes 
    $(1,311) 
    $1,021 

    Effective tax rate 
     27.9% 
     22.7%

We recorded a tax benefit of $1,311 and tax provision
of $1,021, for fiscal years 2024 and 2023, respectively, related to federal and state taxes, based on the Company’s expected annual
effective tax rate. The effective tax rate was 27.9% and 22.7% for fiscal years 2024 and 2023, respectively. In addition, the effective
tax rates for fiscal years 2024 and 2023 were impacted by such items as non-deductible meals and entertainment, non-taxable gains and
losses on life insurance policies and state income taxes. (Refer to Note 4 of Notes to Consolidated Financial Statements included within
this Report for more information).

Liquidity and Capital Resources (dollars in
thousands)

The principal source of operating cash flows is
cash receipts from the sale of our products, net of costs to manufacture, store, market and deliver such products. We normally fund our
operations from cash balances and cash flow generated from operations. Additionally, we have maintained a revolving line of credit with
Wells Fargo Bank, N.A. pursuant to the terms of the credit agreement dated March 1, 2018, as amended to date. On November 30, 2024, we
entered into a sixth amendment to the credit agreement with Wells Fargo Bank, N.A., and also executed a new revolving line of credit note
pursuant to the amendment. Under the terms of this amendment and the revolving line of credit note, we may borrow up to $7,500 from time
to time up to November 30, 2025. As of November 1, 2024, we had $1,084 of current debt on equipment loans, $61,536 of net working capital
and $7,500 available under our revolving line of credit with Wells Fargo Bank, N.A. Refer to Note 5 to the