Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 11

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 1
Chunk 11
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 be able to evade cyberattacks, disruptions,
or security breaches. We have implemented cyber-security initiatives to mitigate our exposure to these risks, but these measures may not
be adequate Although we have not suffered any significant cyber incidents that resulted in material business impact, we have from time
to time been, and expect to continue to be, the target of malicious cyber threat actors.

With approximately 80%
of our stock beneficially owned by the Bridgford family, there are risks that they can exert significant influence or control over our
corporate matters.

Members of the Bridgford family
beneficially own, in the aggregate, approximately 80% of our outstanding stock. In addition, two members of the Bridgford family currently
serve on the Board of Directors and two members of the Bridgford family serve on the Executive Committee. As a result, members of the
Bridgford family have the ability to exert substantial influence or actual control over our management and affairs and over substantially
all matters requiring action by our shareholders, including amendments to by-laws, election and removal of directors, any proposed merger,
consolidation or sale of all or substantially all of our assets and other corporate transactions. This concentration of ownership may
also delay or prevent a change in control otherwise favored by our other shareholders and could depress our stock price. Additionally,
as a result of the Bridgford family’s significant ownership of the outstanding voting stock, we have relied on the “controlled
company” exemption from certain corporate governance requirements of the NASDAQ stock market. Therefore, among other things, we
have elected not to implement the rule that provides for a nominating committee to identify and recommend nominees to the Board of Directors
and have instead elected to have the full Board of Directors perform such function. However, we have not elected to rely on the exemption
with respect to our compensation committee, which is made up entirely of independent directors and has sole authority to determine the
compensation of our executive officers, including our Chairman of the Board.

 8 

We participate in Multiemployer
Pension Plans which could negatively impact our operations and profitability.

We participate in “multiemployer”
pension plans administered by labor unions on behalf of their employees. We make monthly contributions for healthcare and pension benefit
obligations. The contribution amount may change depending upon the ability of participating companies to fund these pension liabilities
as well as the actual and expected returns on pension plan assets. Volatility in the capital markets or interest rates can impact the