Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 7

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 Sales  
    AR 
  
    January 24, 2025 
     28.2% 
     25.9% 
     12.6% 
     17.9%
  
    January 26, 2024 
     28.4% 
     24.7% 
     15.5% 
     19.1%

    7 of 25

Revenue
recognition

Revenues
are recognized in accordance with Accounting Standards Codification (“ASC”) Topic 606 – Revenue from Contracts with
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.
Product is 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 expense. 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 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 the twelve weeks ended January 24, 2025, and January 26, 2024, were $3,823
and $4,179, respectively.

Leases

Leases
are recognized in accordance with ASC 842 Leases (“ASC