Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 82

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 82
---
 period of fiscal year 2025
compared to the same twenty-four-week period in the prior fiscal year. The overall decrease in SG&A expenses was due to lower product
advertising, including broker commissions, partially offset by higher travel expenses.

Selling,
General and Administrative Expenses-Snack Food Products Segment

SG&A
expenses in the Snack Food Products segment increased by $292 (1.3%) to $22,627 in the first twenty-four-week period of fiscal year 2025
compared to the same twenty-four-week period in the prior fiscal year. Most of the increase was due to higher healthcare costs, higher
provision for bad debt and higher travel expense partially offset by lower vehicle repairs.

Income
Taxes-Consolidated

Income
tax for the twenty-four weeks ended April 18, 2025, and April 19, 2024, respectively, was as follows:

    April 18, 2025  
    April 19, 2024 
  
    (Benefit on) provision for income taxes 
    $(1,368) 
    $(367)

    Effective tax rate 
     21.6% 
     27.6%

We
recorded a benefit on income taxes of $1,368 for the twenty-four-week period ended April 18, 2025, and a benefit on income taxes of
$367 for the twenty-four-week period ended April 19, 2024, related to federal and state taxes, based on the Company’s expected
annual effective tax rate. The effective income tax rate differed from the applicable mixed statutory rate of approximately 26.4%
due to non-deductible meals and entertainment, non-taxable gains and losses on life insurance policies and state income
taxes.

Liquidity
and Capital Resources

The
principal source of operating cash flows is cash receipts from the sale of our products, net of costs to manufacture, store, market and
deliver such products. We evaluate cash and cash equivalents related to borrowing capacity and short-term and long-term investments.
We normally fund our operations from cash balances and cash flow generated from operations. Recent losses may necessitate short-term
or long-term borrowing to fund inventory purchases to meet customer orders. We are most focused on restoring profitability to the Company
by driving top-line revenue growth and reducing costs. In line with this focus, the Company is in discussions with and has begun production
of customer products under private-label arrangements with the goal of increasing