Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 113

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 2
Chunk 113
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. 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 $688 (2.0%) to $34,405 in the thirty-six-week period of fiscal year 2025 compared
to the same thirty-six-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 expenses partially offset by lower vehicle repairs.

Income
Taxes-Consolidated

Income
tax for the thirty-six weeks ended July 11, 2025, and July 12, 2024, respectively, was as follows:

    July
    11, 2025  
    July
    12, 2024 
  
    Benefit
    on income taxes 
    $(2,283) 
    $(1,119)

    Effective tax rate 
     25.7% 
     29.1%

We
recorded a benefit on income taxes of $2,283 for the thirty-six-week period ended July 11, 2025, and a benefit on income taxes of $1,119
for the thirty-six-week period ended July 12, 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 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 product sales volume. Market data indicates that due
to higher inflation and rising costs for basic needs, consumers are increasingly