TOFB 8-K
Tofutti Brands Inc (TOFB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 17, 2022, the Registrant reported its results of operations for the thirteen weeks ended April 2, 2022. A copy of the press release issued by the Registrant in this connection is furnished herewith as Exhibit 99.1.
The information in this Item in this Current Report on Form 8-K and Exhibit 99.1 attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
| Exhibit 99.1 | Press Release dated May 17, 2022 | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: May 17, 2022 | TOFUTTI BRANDS INC. | |
| (Registrant) | ||
| By: | /s/Steven Kass | |
| Steven Kass | ||
| Chief Executive and Financial Officer | ||
EXHIBIT 99.1
May 17, 2022
Tofutti Press Release
| Company Contact: | Steve Kass |
| Chief Executive/Financial Officer | |
| (908) 272-2400 | |
| (908) 272-9492 (Fax) |
TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN WEEKS ENDED APRIL 2, 2022
Cranford, New Jersey — May 17, 2022 — TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen weeks ended April 2, 2022 today.
Tofutti Brands reported net sales for the thirteen weeks ended April 2, 2022 increased by $313,000, or 10%, to $3,463,000, from net sales of $3,150,000 for the thirteen weeks ended April 3, 2021. Sales of our vegan cheese products increased to $2,916,000 in the 2022 period from $2,720,000 in the 2021 period. Sales of our frozen dessert and frozen food products, which consist primarily of frozen dessert products, increased to $547,000 in the thirteen weeks ended April 2, 2022 from $430,000 for the thirteen weeks ended April 3, 2021. We anticipate an increase in sales dollars over the balance of the current fiscal year as our price increases take full effect.
Our gross profit decreased to $857,000 in the period ended April 2, 2022 from $1,001,000 in the period ended April 3, 2021. Our gross profit percentage was 25% for the period ending April 2, 2022 compared to 32% for the period ending April 3, 2021. The decrease in both our gross profit and gross profit percentage, were caused by the substantial increases in certain ingredients and freight expense.
We had net income of $205,000, or $0.04 per share (basic and diluted), for the thirteen weeks ended April 2, 2022, compared to net income of $80,000, or $0.02 (basic and diluted) per share, for the thirteen weeks ended April 3, 2021.
As of April 2, 2022, we had approximately $1,589,000 in cash and our working capital was approximately $4,533,000, compared with approximately $1,698,000 in cash and working capital of $4,326,000 at January 1, 2022. The decrease in cash during the thirteen weeks ended April 2, 2022 was primarily due to reduced accounts receivable collections and increased inventory on hand.
Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “We are pleased with our continued success in generating cash from operations which has resulted in our strong cash and working capital position at April 2, 2022. We believe that the production difficulties that impacted our revenues in 2021 have been resolved and that we are poised to achieve improved revenues,” concluded Mr. Kass.
About Tofutti Brands Inc.
Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of plant-based products. The Company sells more than twenty-five (25) dairy-free foods including cheese products and frozen desserts. Tofutti Brands Inc. is a proven innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available throughout the United States and in more than fifteen (15) countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy or wish to maintain a kosher or vegan diet. Tofutti’s product line includes plant-based ice cream pints, cones, Tofutti Cutie® sandwiches and novelty
Forward-Looking Statements
Some of the statements in this press release concerning the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to the impact of COVID-19 on the economy and our operations, business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K.
TOFUTTI BRANDS, INC.
Statements of Income
(in thousands, except per share figures)
Thirteen weeks ended April 2, 2022 | Thirteen weeks ended April 3, 2021 | |||||||
| Net sales | $ | 3,463 | $ | 3,150 | ||||
| Cost of sales | 2,606 | 2,149 | ||||||
| Gross profit | 857 | 1,001 | ||||||
| Operating expenses: | ||||||||
| Selling and warehousing | 264 | 323 | ||||||
| Marketing | 156 | 70 | ||||||
| Product development costs | 40 | 39 | ||||||
| General and administrative | 337 | 447 | ||||||
| 797 | 879 | |||||||
| Income from operations | 60 | 122 | ||||||
| Other income: | ||||||||
| SBA loan forgiveness | 165 | — | ||||||
| Income before interest expense and income taxes | 225 | 122 | ||||||
| Interest expense | — | 6 | ||||||
| Income before income taxes | 225 | 116 | ||||||
| Income tax expense | 20 | 36 | ||||||
| Net income | $ | 205 | $ | 80 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 5,154 | 5,154 | ||||||
| Diluted | 5,154 | 5,436 | ||||||
| Earnings per common share: | ||||||||
| Basic and diluted | $ | 0.04 | $ | 0.02 | ||||
| Diluted | $ | 0.04 | $ | 0.02 | ||||
TOFUTTI BRANDS INC.
Balance Sheets
(in thousands, except share and per share figures)
| April 2, 2022 | January 1, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 1,589 | $ | 1,698 | ||||
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of $310 and $435, respectively | 1,402 | 1,336 | ||||||
| Inventories | 2,412 | 1,874 | ||||||
| Prepaid expenses and other current assets | 45 | 98 | ||||||
| Total current assets | 5,448 | 5,006 | ||||||
| Operating lease right-of-use assets | 175 | 203 | ||||||
| Deferred tax assets | 110 | 112 | ||||||
| Other assets | 19 | 21 | ||||||
| Total assets | $ | 5,752 | $ | 5,342 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| SBA loan payable | $ | — | $ | 165 | ||||
| Income taxes payable | 62 | 46 | ||||||
| Accounts payable | 369 | 122 | ||||||
| Accrued expenses | 484 | 347 | ||||||
| Total current liabilities | 915 | 680 | ||||||
| Operating lease liabilities | 65 | 95 | ||||||
| Total liabilities | 980 | 775 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued and outstanding | — | — | ||||||
| Common stock - par value $.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding | 52 | 52 | ||||||
| Additional paid-in capital | 207 | 207 | ||||||
| Retained earnings | 4,513 | 4,308 | ||||||
| Total stockholders’ equity | 4,772 | 4,567 | ||||||
| Total liabilities and stockholders’ equity | $ | 5,752 | $ | 5,342 | ||||