Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 506

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 7
Chunk 506
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 unit sales volume in pounds, lower equipment rental and lower fuel expenses related to a reduction in the number of company-owned
long-haul trucks partially offset by an increase in insurance expenses and broker commissions.

Selling, General and Administrative Expenses-Refrigerated
and Snack Food Products Segment

SG&A expenses in the Snack Food Products segment
decreased by $2,877 (5.6%) during fiscal year 2024 compared to the prior fiscal year. Most of the decrease was due to the significantly
lower unit sales volume in pounds and the corresponding decrease in wages and bonuses, and lower payments under brand licensing agreements.

Loss on Sale of Property, Plant and Equipment

Losses on the sale of property, plant
and equipment were due to the ordinary disposal of assets located in both the Frozen Food Products segment, $96 and $75, for fiscal years
2024 and 2023, respectively, and Snack Food Products segments, $50 and $86, for fiscal years 2024 and 2023, respectively. 

Income Taxes

Income tax for fiscal years 2024 and 2023, respectively,
was as follows:

    November 1, 2024  
    November 3, 2023 
  
    (Benefit on) provision for income taxes 
    $(1,311) 
    $1,021 

    Effective tax rate 
     27.9% 
     22.7%

We recorded a tax benefit of $1,311 and tax provision
of $1,021, for fiscal years 2024 and 2023, respectively, related to federal and state taxes, based on the Company’s expected annual
effective tax rate. The effective tax rate was 27.9% and 22.7% for fiscal years 2024 and 2023, respectively. In addition, the effective
tax rates for fiscal years 2024 and 2023 were impacted by such items as non-deductible meals and entertainment, non-taxable gains and
losses on life insurance policies and state income taxes. (Refer to Note 4 of Notes to Consolidated Financial Statements included within
this Report for more information).

Liquidity and Capital Resources (dollars in
thousands)

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 normally fund our
operations from cash balances and cash flow generated from