Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 607

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 8
Chunk 607
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. We, including our subsidiaries, are primarily engaged in the manufacturing, marketing,
and distribution of an extensive line of frozen, refrigerated, and snack food products throughout the United States.

The consolidated financial
statements include the accounts of the Company and its subsidiaries, all of which are wholly owned. All inter-company transactions and
balances have been eliminated.

Use of estimates and assumptions

The preparation of financial
statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements, as well as the reported revenues and expenses during the respective reporting periods. Management bases these estimates and
assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that
management believes to be reasonable. In addition, the Company has considered the potential impact of macroeconomic factors, including
inflation, changes in interest rates, changes in commodity pricing, changes in discretionary spending, and recessionary concerns, on its
business and operations. Although the full impact of these factors is unknown, the Company believes it has made appropriate accounting
estimates and assumptions based on the facts and circumstances available as of the reporting date. However, actual results could differ
from those estimates. Amounts estimated related to liabilities for pension benefits, self-insured workers’ compensation and employee
healthcare benefits are subject to inherent uncertainties and these estimated liabilities may ultimately settle at amounts which may vary
from current estimates. Other areas with underlying estimates include realization of deferred tax assets, cash surrender or contract value
of life insurance policies, promotional allowances and the allowance for doubtful accounts and inventory reserves. Management believes
its current estimates are reasonable and based on the best information available at the time. To the extent there are material differences
between the estimates and the actual results, future results of operations could be affected.

Subsequent events

Management has evaluated events
subsequent to November 1, 2024, through the date the accompanying consolidated financial statements were filed with the Securities and
Exchange Commission for transactions and other events that may require adjustment of and/or disclosure in such financial statements.

On November 30, 2024, we entered
into a sixth amendment to the credit agreement with Wells Fargo Bank, N.A. dated March 1, 2018, as amended, and also executed a revolving
line of credit note pursuant to the amendment. The revolving line of credit note replaces the existing note that expired by its terms