Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 92

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 92
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1. Legal Proceedings

From
time to time, we are involved in various legal proceedings, disputes, and other claims arising in the ordinary course of business. Although
the results of these ordinary course matters cannot be predicted with certainty, we currently believe that the final outcome of these
ordinary course matters will not, individually or in the aggregate, have a material adverse effect on our business, results of operations,
financial condition, or cash flows. However, regardless of the merit of the claims raised or the outcome, these ordinary course matters
can have an adverse impact on us as a result of legal costs, diversion of management’s time and resources, and other factors.

Item
1A. Risk Factors

The
risk factors listed in Part I “Item 1A. Risk Factors” in the Annual Report should be considered with the information provided
elsewhere in this Report, which could materially adversely affect our business, financial condition, or results of operations. Except
as set forth below, there have been no material changes in our assessment of risk factors affecting our business since those presented
in our Annual Report. The following risk factor amends and restates in its entirety the risk factor of the same heading set forth in
the Annual Report.

Fluctuations
in commodity prices and the availability of raw materials could negatively impact our financial results.

We
purchase large quantities of commodity pork, beef, and flour. Historically, market prices for products we process have fluctuated in
response to a number of factors, including changes in the United States government farm support programs, changes in international
agricultural and trading policies, weather, and other conditions during the growing and harvesting seasons. Our operating results
are heavily dependent upon the prices paid for raw materials, as well as the available supply of commodities. Commodity costs have
and may continue to fluctuate due to political and economic conditions, including the ongoing conflict between Ukraine and Russia.
Further, the potential for the imposition of new or additional U.S. tariffs on imports as well as potential retaliatory tariffs or
other measures certain other countries may impose on U.S. imports has increased with the new U.S. federal administration. These
actions could further increase our cost of goods sold and negatively impact our business and operating results. Supply chain
disruptions and delays as a result of any new tariff policies or trade restrictions could also negatively impact our cost of
materials and production processes.

The
marketing of our value-added products does not lend itself to instantaneous changes in selling prices. In addition