Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 47

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 8
Chunk 47
---
. We regularly review inventory quantities on hand and write down
any estimated excess, obsolete inventories, or impaired balances to net realizable value. An inventory reserve is created when potentially
slow-moving or obsolete inventories are identified in order to reflect the appropriate inventory value. Changes in economic conditions,
production requirements, and lower than expected customer demand could result in additional obsolete or slow-moving inventory that cannot
be sold or must be sold at reduced prices and could result in additional reserve provisions. The reserve for slow moving and obsolete
inventory was $1,166 as of January 24, 2025 and $1,115 as of November 1, 2024. We maintain a net realizable value reserve of $1,413 as
of January 24, 2025, and $1,467 as of November 1, 2024, on products in inventory after determining that the market value on some meat
products could not cover the costs associated with completion and sale of the product.

    9 of 25

Note
3 – Contingencies and Commitments:

The
Company generally leases warehouses throughout the United States through month-to-month rental agreements. In the case of month-to-month
lease or rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets
and liabilities and record them on a straight-line basis over the lease term. For further information regarding our lease accounting
policy, please refer to Note 1 – Summary of Significant Accounting Policies — Leases.

The
Company leased three long-haul trucks received during fiscal year 2019. The six-year leases for these trucks would have expired in
fiscal year 2025. We returned one long-haul truck on June 22, 2023, for a loss of $12
and returned the remaining two long-haul trucks on July 11, 2024, for a loss of $90,
in an effort to reduce the overall cost of delivering products.  The Company leased one box truck for a market value of $27
on April 17, 2023, and that lease term is two
years.

The
Company leased one refrigerated truck received on May 10, 2024, for a net present value of $166. The seven-year lease for this truck
will expire in fiscal year 2031. Amortization of equipment as a finance lease was $6 during the twelve weeks ended January 24, 2025.

The