Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 922

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 13
Chunk 922
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(86)
  
    Non-taxable life insurance gain 
     (421) 
     (93)
  
    Other, net 
     111  
     256 
  
    (Benefit on) provision for income taxes 
    $(1,311) 
    $1,021 

Deferred income taxes result
from differences in the basis of assets and liabilities for tax and accounting purposes.

Schedule of Deferred Income Taxes Results from Differences in Bases of Assets and Liabilities 

    November 1, 2024  
    November 3, 2023 
  
    Receivables allowance 
    $29  
    $64 
  
    Returns allowance 
     134  
     167 
  
    Inventory packaging reserve 
     677  
     299 
  
    Inventory overhead capitalization 
     314  
     571 
  
    Employee benefits 
     790  
     726 
  
    Other 
     218  
     (30)
  
    State taxes payable (receivable) 
     226  
     232 
  
    Incentive compensation 
     595  
     824 
  
    Pension and health care benefits 
     77  
     924 
  
    Depreciation 
     (12,069) 
     (12,342)
  
    Net operating loss carry-forward and credits 
     1,721  
     322 
  
    Right of use assets 
     (235) 
     - 
  
    Valuation allowance established against state NOL 
     (99) 
     (99)
  
    Deferred income taxes, net 
    $(7,622) 
    $(8,342)

Management is required to evaluate whether a valuation
allowance should be established against its deferred tax assets based on the consideration of all available evidence using a “more
likely than not” standard. Realization of deferred tax assets is dependent upon taxable income in prior carryback years, estimates
of future taxable income, tax planning strategies, and reversals of existing taxable temporary differences.

As of November 1, 2024, the Company did not have
any valuation allowance against its federal net deferred tax assets. Management reevaluated the need for a valuation allowance at the
end of 2023 and determined that some of its California NOL may not be utilized. Therefore, a valuation allowance of $99 has been retained
for such