Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 11

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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5, respectively, the FASB issued ASU No. 2024-03 and ASU No. 2025-01, Income Statement – Reporting
Comprehensive Income – Expense Disaggregation Disclosures – Disaggregation of Income Statement Expenses. ASU No. 2024-03
and ASU No. 2025-01 seek to separately disaggregate expenses on inventory, employee compensation, depreciation and other items included
within each income statement line item that contains these expenses. ASU No. 2024-03 and ASU No. 2025.01 are effective for the Company
in fiscal years beginning after December 15, 2026, our fiscal year 2027, and will be applied prospectively. The Company is currently
evaluating the guidance and its impact to the financial statements.

Note
2 – Inventories, net:

Inventories
are comprised of the following at the respective period ends:

 Schedule of Inventories

    July
    11, 2025  
    November
    1, 2024 
  
    Meat, ingredients, and supplies 
    $11,769  
    $10,314 
  
    Work in progress 
     4,925  
     2,633 
  
    Finished goods 
     26,220  
     20,391 
  
    Inventories,
    net  
    $42,914  
    $33,338 

Inventories
are valued at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. Inventories
include the cost of raw materials, labor, and manufacturing overhead. We regularly review inventory quantities on hand and write
down any estimated excess, obsolete inventories, or impaired balances to net realizable value. An inventory reserve is created when
potentially slow-moving or obsolete inventories are identified in order to reflect the appropriate inventory value. Changes in
economic conditions, production requirements, and lower than expected customer demand could result in additional obsolete or
slow-moving inventory that cannot be sold or must be sold at reduced prices and could result in additional reserve provisions. The
reserve for slow moving and obsolete inventory was $1,081
as of July 11, 2025 and $1,115
as of November 1, 2024. We maintain a net realizable value reserve of $1,532
as of July 11,