Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 1055

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 8
Chunk 1055
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 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 to 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 fiscal years 2024 and 2023 were $19,746 and $17,256, respectively.

Advertising expenses

Advertising and other promotional
expenses are recorded as selling, general and administrative expenses. Advertising expenses for fiscal years 2024 and 2023 were $2,613
and $2,822, respectively.

Cash and cash equivalents

We consider all investments
with original maturities of three months or less to be cash equivalents. Cash equivalents include money market funds and treasury bills.
Cash and cash equivalents totaled $10,230 as of November 1, 2024 all of which were held at Wells Fargo Bank N.A., except for $1,000 with
Bank of America. Cash and cash equivalents totaled $15,708 as of November 3, 2023 all of which were held at Wells Fargo Bank N.A.

Restricted cash

The Company had no restricted
cash as of November 1, 2024 and November 3, 2023.

Fair value measurements

We classify levels of inputs
to measure the fair value of financial assets as follows:

    ●
    Level 1 inputs: Level 1 inputs are quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. 

    ●
    Level 2 inputs: Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

    ●
    Level 3 inputs: Level 3 inputs are unobservable and should be used to measure fair value to the extent that observable inputs are not available.

     32 

The hierarchy noted above
requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value.

The Company does not have any assets or liabilities measured at fair
value on a recurring or non-recurring basis for the fiscal years ended November 1, 2024, and November 3, 2023, except for pension plan
investments (See Note 3 – Retirement and Other Benefit Plans).