Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 66

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 8
Chunk 66
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    Total
    Frozen Food Products 
     5,120  
     33,701  
     38,821 

    Totals 
    $117,718  
    $33,701  
    $151,419 

    (a)
    Includes
    sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers.
  
    (b)
    Includes
    sales to foodservice distributors, restaurant operators, hotel chains and non-commercial foodservice establishments such as schools,
    convenience stores, healthcare facilities and the military.

    12 of 27

Note
5 – Income Taxes:

The
Company’s effective tax rate was 22.3% and 29.1% for the third quarter of fiscal years 2025 and 2024, respectively. The effective
tax rate for the third quarter of fiscal year 2025 reflects the impact of $2,283 of tax benefit.

As
of July 11, 2025, the Company did not have any valuation allowance against its federal net deferred tax assets. Management reevaluated
the need for a valuation allowance at the end of 2022 and determined that some of its California net operating losses (“NOL”)
may not be utilized. Therefore, a valuation allowance of $99 has been retained for such portion of the California NOL. As of July 11,
2025, the Company had NOL carryforwards of approximately $0 for federal and $5,000 for state purposes. The state loss carryforwards will
expire at various dates through 2040.

Our
federal income tax returns are open to audit under the statute of limitations for the fiscal years 2021 through 2024. We are subject
to income tax in Texas and various other state taxing jurisdictions. Our state income tax returns are open to audit under the statute
of limitations for the fiscal years 2020 through 2024.

Note
6 – Equipment Notes Payable and Financial Arrangements:

Revolving
Credit Facility

The
Company maintains a revolving line of credit with Wells Fargo pursuant to a credit agreement dated November 30, 2024, as amended and
restated on July 23, 2025. Pursuant to the amended and restated agreement and the revolving line of credit note, we may borrow up to
$7,500
from time to time up until July
31, 2026, at an