Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 59

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1
Chunk 59
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 be utilized. Therefore, a valuation allowance of $99 has been retained
for such portion of the California NOL.

As of November 1, 2024, the Company had net operating
loss carryforwards of approximately $5,000 for federal and $12,800 for state purposes.

The state loss carryforwards will expire at various
dates through 2040.

In July 2006, the FASB issued guidance to clarify
the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. This interpretation prescribed
a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected
to be taken in a tax return. The guidance also discussed derecognition, classification, interest and penalties, accounting in interim
periods, disclosure, and transition. The cumulative effect, if any, of applying this guidance is to be reported as an adjustment to the
opening balance of retained earnings in the year of adoption. The provisions of this guidance have been incorporated into ASC 740-10.

As of November 1, 2024, we have provided a liability
of $349 to unrecognized tax benefits related to various federal and state income tax matters. $76 of this liability will reduce our effective
income tax rate if the asset is recognized in future reporting periods. We have not identified any new unrecognized tax benefits.

As of November 3, 2023, we have provided a liability
of $331 to unrecognized tax benefits related to various federal and state income tax matters. None of this liability will reduce our effective
income tax rate if the asset is recognized in future reporting periods.

     40 

A reconciliation of the beginning
and ending amounts of unrecognized tax benefits is as follows:

Schedule of Reconciliation of Unrecognized Tax Benefits 

    November 1, 2024  
    November 3, 2023 

    (52 Weeks)  
    (53 Weeks) 

    Balance at beginning of year 
    $331  
    $299 
  
    Additions based on tax positions related to the current year 
     -  
     16 
  
    Additions for tax positions of prior years 
     18  
     16 

    Balance at end of year 
    $349  
    $331 

We recognize any future accrued interest and penalties
related to unrecognized tax benefits in income tax expense. As of November 1, 2024, we had approximately $