Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 56

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 ASU No. 2024-03 and ASU No. 2025-01, Income Statement –
Reporting Comprehensive Income – Expense Disaggregation Disclosures – Disaggregation of Income Statement Expenses. ASU
No. 2024-03 and ASU No. 2025-01 seek to separately disaggregate expenses on inventory, employee compensation, depreciation and other
items included within each income statement line item that contains these expenses. ASU No. 2024-03 is effective for the Company in
fiscal years beginning after December 15, 2026, our fiscal year 2027, and will be applied prospectively. The Company is currently
evaluating the guidance and its impact to the financial statements.

Note
2 – Inventories, net:

Inventories
are comprised of the following at the respective period ends:

Schedule
of Inventories  

    April 18, 2025  
    November 1, 2024 
  
    Meat, ingredients, and supplies 
    $11,794  
    $10,314 
  
    Work in progress 
     5,251  
     2,633 
  
    Finished goods 
     23,010  
     20,391 
  
    Inventories,
    net 
    $40,055  
    $33,338 

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 estimated excess, obsolete inventories, or impaired balances 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 reserve for slow moving and obsolete
inventory was $1,201 as of April 18, 2025 and $1,115 as of November 1, 2024. We maintain a net realizable value reserve of $1,804 as
of April 18, 2025, and $1,467 as of November 1, 2024, on products in inventory after determining that the