Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 70

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1A
Chunk 70
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 Furthermore, we are routinely subject to new or modified laws, regulations, and accounting standards. If found to be out
of compliance with applicable laws and regulations in these or other areas, we could be subject to civil remedies, including fines, injunctions,
recalls, or asset seizures, as well as potential criminal sanctions, any of which could have a significant adverse effect on our financial
results.

We depend on our key management,
the loss of which could negatively impact our operations.

Our executive officers and
certain other key employees have been primarily responsible for the development and expansion of our business, and the loss of the services
of one or more of these individuals could adversely affect us. Our success will be dependent in part upon our continued ability to recruit,
motivate, and retain qualified personnel. We cannot assure that we will be successful in this regard. We have no employment or non-competition
agreements with key personnel. However, we have consulting agreements with each of (1) our former Vice President and current director
Allan L. Bridgford Sr., (2) our former Chief Financial Officer and current director Raymond F. Lancy, (3) our former director and President
of Bridgford Food Processing Corporation Allan Bridgford Jr.

 7 

We depend on our major
customers and any loss of such customers could have a negative impact on our profitability.

Sales to Wal-Mart® comprised
27.8% of revenues in fiscal year 2024 and 25.4% of total accounts receivable was due from Wal-Mart® as of November 1, 2024. Sales
to Dollar General® comprised 14.2% of revenues in fiscal year 2024 and 20.2% of total accounts receivable was due from Dollar General®
as of November 1, 2024. Many of our customers, such as supermarkets, warehouse clubs, and food distributors have consolidated in recent
years. Such consolidation has produced large, sophisticated customers with increased buying power who are more capable of operating with
reduced inventories while demanding lower pricing and increased promotional programs. These customers also may use their shelf space for
their own private label products. Failure to respond to these trends could reduce our volume and cause us to lower prices or increase
promotional spending for our product lines, which could adversely affect our profitability.

Labor shortages and increased
turnover or increases in employee and employee-related costs could have adverse effects on our profitability.

We have historically experienced
some level of