Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 87

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 2
Chunk 87
---
&A
expenses in the Frozen Food Products segment decreased by $71 (2.1%) to $3,370 in the first twelve-week period of fiscal year 2025 compared
to the same twelve-week period in the prior fiscal year. The overall decrease in SG&A expenses was due to a decrease in insurance
expense and lower product advertising partially offset by higher healthcare expenses and outside consulting fees.

Selling,
General and Administrative Expenses-Snack Food Products Segment

SG&A
expenses in the Snack Food Products segment decreased by $43 (0.4%) to $11,543 in the first twelve-week period of fiscal year 2025 compared
to the same twelve-week period in the prior fiscal year. Most of the decrease was due to lower wages and bonuses and decreased fees paid
under brand licensing agreements partially offset by higher healthcare and office supply expense.

18 of 25

Income
Taxes-Consolidated

Income
tax for the twelve weeks ended January 24, 2025, and January 26, 2024, respectively, was as follows:

    January 24, 2025  
    January 26, 2024 
  
    (Benefit on) provision for income taxes 
    $(453) 
    $510 

    Effective tax rate 
     28.9% 
     29.2%

We
recorded a benefit for income taxes of $453 for the twelve-week period ended January 24, 2025, and a provision for income taxes of $510
for the twelve-week period ended January 26, 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