Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 44

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 8
Chunk 44
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 classify it as a finance or operating lease and record a right-of-use
(“ROU”) asset and the corresponding lease liability at the inception of the lease. The classification as a finance or
operating lease determines whether the recognition, measurement and presentation of expenses and cash flows are considered operating
or financing. In the case of month-to-month lease or rental agreements with terms of twelve months or less, we made an accounting
policy election to not recognize lease assets and liabilities and record them on a straight-line basis over the lease term. The
storage units rented on a month-to-month basis for use by our Snack Food Products segment direct-store-delivery route system are
not costly to relocate and contain no significant leasehold improvements or degree of integration over leased assets. Orders can be
fulfilled by another route storage unit interchangeably. No specialized assets exist in the rental storage units. Market price is
paid for storage units. No guarantee of debt is made.

ROU
lease assets are recorded within property, plant and equipment, net of accumulated depreciation and amortization. The Company leases
warehouse space from time to time that is recorded as ROU lease assets and corresponding lease liabilities. The Company no longer
leases long-haul trucks that were used by the Frozen Food Products segment. However, we have leased one refrigerated truck used in
the Frozen Food Products segment. Finance lease liabilities are recorded under other liabilities. The condensed consolidated balance
sheets reflect both the current and long-term obligations.

We
leased a parking lot to our lessee in accordance with ASC 842 under a 60-month lease contract. Legal ownership does not transfer at the
end of the lease. We retain ownership of the parking lot. There is no net book value of the underlying asset. We recorded a lease receivable,
both the current and non-current components, less executory costs including broker’s commissions. The discount rate implicit in the lease
is used to calculate the present value of minimum lease payments. Revenue will be deferred until earned and is recorded in current and
non-current liabilities.

Subsequent
events

Management
has evaluated events subsequent to January 24, 2025, through the date that the accompanying Condensed Consolidated Financial
Statements were filed with the Securities and Exchange Commission (the “SEC”) for transactions and other events which
may require adjustments of and/or disclosure in such financial statements.

No
material events were identified that require adjustment to the financial statements or additional disclosure.

Basic
(loss) earnings per share

Basic