Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 97

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 2
Chunk 97
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 beef, and flour. Historically, market prices for products we process have fluctuated in
response to a number of factors, including changes in the United States government farm support programs, changes in international agricultural
and trading policies, weather, and other conditions during the growing and harvesting seasons. Our operating results are heavily dependent
upon the prices paid for raw materials, as well as the available supply of commodities. Commodity costs have and may continue to fluctuate
due to political and economic conditions, including the ongoing conflict between Ukraine and Russia. Further, the potential for the imposition
of new or additional U.S. tariffs on imports as well as potential retaliatory tariffs or other measures certain other countries may impose
on U.S. imports has increased with the new U.S. federal administration. These actions could increase our cost of goods sold and negatively
impact our business and operating results. Supply chain disruptions and delays as a result of any new tariff policies or trade restrictions
could also negatively impact our cost of materials and production processes.

The
marketing of our value-added products does not lend itself to instantaneous changes in selling prices. In addition, if we increase prices
to offset higher costs, we could experience lower demand for our products and sales volumes. Conversely, decreases in our commodity and
other input costs may create pressure on us to decrease our prices. Changes in selling prices are relatively infrequent and do not compare
with the volatility of commodity markets. If there is a lag between when costs increase and when we are able to increase selling prices,
our profits margins may suffer. Production and pricing of commodities, on the other hand, are determined by constantly changing market
forces of supply and demand over which we have limited or no control. Such factors include, among other things, weather patterns throughout
the world, outbreaks of disease, the global level of supply inventories and demand for grains and other feed ingredients, as well as
agricultural, energy and trade policies of domestic and foreign governments. While fluctuations in significant cost structure components,
such as ingredient commodities and fuel prices, have had a significant impact on profitability over the last three years, the impact
of general price inflation on our financial position and results of operations has also been significant. Current inflationary market
conditions may have a negative impact on future earnings. Future volatility of general price inflation or deflation and raw material
cost and availability could adversely affect our financial results.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

Recent Sales of Unregistered
Sec