Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 1016

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 16
Chunk 1016
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, 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, 2024 and November 3, 2023.

Fair value measurements

We classify levels of inputs
to measure the fair value of financial assets as follows:

    ●
    Level 1 inputs: Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. 

    ●
    Level 2 inputs: Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

    ●
    Level 3 inputs: Level 3 inputs are unobservable and should be used to measure fair value to the extent that observable inputs are not available.

     32 

The hierarchy noted above
requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value.

The Company does not have any assets or liabilities measured at fair
value on a recurring or non-recurring basis for the fiscal years ended November 1, 2024, and November 3, 2023, except for pension plan
investments (See Note 3 – Retirement and Other Benefit Plans).

Inventories

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 excess or obsolete
inventories 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 Company recorded