Company: BRID
Filing Date: 2025-08-22
Form Type: 10-Q
Source: 0001493152-25-012266
Chunk: 7

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-08-22
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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Customers upon passage of title to the customer. Products are delivered to customers primarily through common carrier, or through
a Company-owned direct-store-delivery system.

The
Company recognizes revenue for the sale of the product at the point in time when our performance obligation has been satisfied and control
of the product has transferred to our customer, which generally occurs upon product shipment, pickup or delivery to a customer based
on terms of the sale. Contracts with customers are typically short-term in nature with completion of a single performance obligation.
Products are sold to foodservice, retail, institutional and other distribution channels. Shipping and handling that occurs after the
customer has obtained control of the product is recorded as a fulfillment cost rather than an additional performance obligation. Costs
paid to third party brokers to obtain contracts are recognized as part of selling expenses. Other sundry items in context of the contract
are also recognized as selling expenses. Any taxes collected on behalf of the government are excluded from net revenue.

We
record revenue at the transaction price which is measured as the amount of consideration we anticipate receiving in exchange for providing
products to our customers. Revenue is recognized as the net amount estimated to be received after deducting estimated or known amounts
including variable consideration for discounts, trade allowances, consumer incentives, coupons, volume-based incentives, cooperative
advertising, product returns and other such programs. Promotional allowances, including customer incentive and trade promotion activities,
are recorded as a reduction in sales based on amounts estimated being due to customers, based primarily on historical utilization and
redemption rates. Estimates are reviewed regularly until incentives or product returns are realized and the result of any such adjustments
are known. Promotional allowances deducted from sales for the twelve weeks ended July 11, 2025, and July 12, 2024, were $4,297 and $4,489,
respectively. Promotional allowances deducted from sales for the thirty-six weeks ended July 11, 2025, and July 12, 2024, were $12,339
and $12,540, respectively.

Leases

Leases
are recognized in accordance with ASC Topic 842 Leases (“ASC 842”) which requires a lessee to recognize assets and
liabilities with lease terms of more than twelve months. We lease or rent property for operations such as storing inventory and
equipment. We analyze our agreements to evaluate whether or not a lease exists by determining what assets exist for which we control
usage for a period of time in exchange for consideration. In