Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 908

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 13
Chunk 908
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-term in nature with completion of a single performance obligation. Product is sold to foodservice, retail, institutional
and other distribution channels. Products are delivered to customers primarily through our own long-haul fleet, common carrier or through
a Company owned direct store delivery system. These delivery costs, $7,460 and $7,190 for fiscal years 2024 and 2023, respectively, are
included in selling, general and administrative expenses in the accompanying consolidated financial statements. Shipping and handling
that occurs after the customer has obtained control of the product is recorded as a fulfillment cost rather than an additional assured
service. Costs paid to third party brokers to obtain contracts are recognized as part of selling expenses. Other sundry items in context
of the contract are also recognized as selling expense. Any taxes collected on behalf of the government are excluded from net revenue.

We record revenue at the transaction
price which is measured as the amount of consideration we anticipate to receive in exchange for providing product to our customers. Revenue
is recognized as the net amount estimated to be received after deducting estimated or known amounts including variable consideration for
discounts, trade allowances, consumer incentives, coupons, volume-based incentives, cooperative advertising, product returns and other
such programs. Promotional allowances, including customer incentive and trade promotion activities, are recorded as a reduction to sales
based on amounts estimated being due to customers, based primarily on historical utilization and redemption rates. Estimates are reviewed
regularly until incentives or product returns are realized and the result of any such adjustments are known. Promotional allowances deducted
from sales for fiscal years 2024 and 2023 were $19,746 and $17,256, respectively.

Advertising expenses

Advertising and other promotional
expenses are recorded as selling, general and administrative expenses. Advertising expenses for fiscal years 2024 and 2023 were $2,613
and $2,822, respectively.

Cash and cash equivalents

We consider all investments
with original maturities of three months or less to be cash equivalents. Cash equivalents include money market funds and treasury bills.
Cash and cash equivalents totaled $10,230 as of November 1, 2024 all of which were held at Wells Fargo Bank N.A., except for $1,000 with
Bank of America. Cash and cash equivalents totaled $15,708 as of November 3, 2023 all of which were held at Wells Fargo Bank N.A.

Restricted cash

The Company had no restricted
cash as of November 1,