Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 69

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1A
Chunk 69
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 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 and energy 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 been significant. However, 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.

We are subject to extensive
government regulations and a failure to comply with such regulations could negatively impact our financial results.

Our operations are subject
to extensive inspection and regulation by the USDA, FDA and by other federal, state, and local authorities regarding the processing, packaging,
storage, transportation, distribution, and labeling of products that are manufactured, produced, and processed by us. Our processing facilities
and products are subject to continuous inspection by the USDA and/or other federal, state, and local authorities. The USDA has issued
strict regulations concerning the control of listeria monocytogenes in ready-to-eat meat and poultry products and contamination by food
borne pathogens such as E. coli and salmonella and implemented a system of regulation known as the HACCP program. The HACCP program requires
all meat and poultry processing plants to develop and implement sanitary operating procedures and other program requirements. OSHA oversees
safety compliance and establishes certain employer responsibilities to help “assure safe and healthful working conditions”
and keep the workplace free of recognized hazards or practices likely to cause death or serious injury. We believe that we are currently
in compliance with governmental laws and regulations and that we maintain necessary permits and licenses relating to our operations.

A failure to obtain or a loss
of necessary permits and licenses could delay or prevent us from meeting current product demand and could adversely affect our operating
performance.