Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 5

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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the “Annual Report”). Due
to seasonality and other factors, interim results are not necessarily indicative of the results for the full year. Recent accounting
pronouncements, if any, and their effect on the Company are discussed in Part I, Item 2, Management’s Discussion and Analysis of
Financial Condition and Results of Operations in this Report.

The
November 1, 2024, balance sheet amounts within these interim Condensed Consolidated Financial Statements were derived from the audited
fiscal year 2024 consolidated financial statements included in the Company’s Annual Report.

The
preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the
financial statements and the reported revenues and expenses during the reporting periods. Some of the estimates made by management include
the allowance for doubtful accounts, promotional and returns allowances, inventory reserves, the estimated useful lives of property,
plant and equipment, and the valuation allowance for the Company’s deferred tax assets. Management determines the amounts to record
based on historical experience and various other assumptions that we view as reasonable under the circumstances and considers all relevant
available information. Actual results could materially differ from these estimates. Amounts estimated related to liabilities for self-insured
workers’ compensation, employee healthcare, and pension benefits are especially subject to inherent uncertainties and these estimated
liabilities may ultimately settle at amounts which vary from our current estimates. Market conditions and the volatility in stock markets
may cause significant changes in the measurement of our pension fund liabilities and the performance of our life insurance policies in
future periods.

Financial
instruments that subject the Company to credit risk consist primarily of cash and cash equivalents, accounts receivable, accounts payable,
accrued payroll, and notes payable. The carrying amount of these instruments approximate fair market value due to their short-term maturity
or market interest rates. The Company has accounts with nationally recognized financial institutions in excess of the Federal Deposit
Insurance Corporation insurance coverage limit. The Company has not experienced any losses in these accounts and believes it is not exposed
to any significant credit risk with regard to its cash and cash equivalents. The Company grants payment terms to a significant number
of customers that are diversified over a wide geographic area. The Company monitors the payment histories of its customers and maintains
an allowance for doubtful accounts which is reviewed for adequacy on a quarterly basis. The Company does not require collateral from
its customers.

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