8-K
TOFUTTI BRANDS INC (TOFB)
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d)
OF
THE SECURITIES EXCHANGE ACT OF 1934
May 16, 2023
Date
of Report
(Date of earliest event reported)
TOFUTTI
BRANDS INC.
(Exact name of registrant as specified in its charter)
| Delaware | 001-09009 | 13-3094658 |
|---|---|---|
| (State or other jurisdiction<br><br> of incorporation) | (Commission<br><br> <br>File<br> Number) | (IRS Employer<br><br> Identification No.) |
| 50<br> Jackson Drive Cranford, New Jersey 07016 | ||
| --- | ||
| (Address of principal executive<br> offices and zip code) | ||
| (908)272-2400 | ||
| --- | ||
| (Registrant’s telephone<br> number, including area code) | ||
| Not<br> Applicable | ||
| --- | ||
| (Former name or former address,<br> if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ☐ | Written communications<br> pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant<br> to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications<br> pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications<br> pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(g) of the Act:
| Title<br> of each class | Trading<br> Symbol(s) | Name<br> of each exchange on which registered |
|---|---|---|
| Common Stock, par value<br> $0.01 per share | TOFB | None |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM
2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 16, 2023, the Registrant reported its results of operations for the thirteen weeks ended April 2, 2023. 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 16, 2023 |
|---|---|
| 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 16, 2023 | TOFUTTI BRANDS INC. | |
|---|---|---|
| (Registrant) | ||
| By: | /s/ Steven Kass | |
| Steven Kass | ||
| Chief Executive and Financial Officer |
Exhibit 99.1
May 16, 2023
TofuttiPress Release
| Company<br> Contact: | Steve<br> Kass |
|---|---|
| Chief<br> Executive/Financial Officer | |
| (908)<br> 272-2400 | |
| (908)<br> 272-9492 (Fax) |
TOFUTTIANNOUNCES RESULTS FOR THIRTEEN WEEKS ENDED APRIL 1, 2023
Cranford, New Jersey — May 16, 2023 — TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen weeks ended April 1, 2023 today.
Tofutti Brands reported net sales for the thirteen weeks ended April 1, 2023 decreased by $973,000, or 28%, to $2,490,000, from net sales of $3,463,000 for the thirteen weeks ended April 2, 2022. Sales of our vegan cheese products decreased to $2,100,000 for the thirteen weeks ended April 1, 2023 from $2,916,000 for the thirteen weeks ended April 2, 2022 due to the timing of cheese promotions this year. Sales of our frozen dessert products decreased to $390,000 in the thirteen weeks ended April 1, 2023 from $547,000 for the thirteen weeks ended April 2, 2022. We anticipate an increase in sales dollars over the balance of the current fiscal year as our promotions and price increases take full effect.
Our gross profit decreased to $606,000 in the period ended April 1, 2023 from $857,000 in the period ended April 2, 2022, reflecting the decrease in sales. Our gross profit percentage was 24% for the period ending April 1, 2023 compared to 25% for the period ending April 2, 2022.
We had a net loss of $102,000, or $0.02 per share (basic and diluted), for the thirteen weeks ended April 1, 2023, compared to net income of $205,000, or $0.04 (basic and diluted) per share, for the thirteen weeks ended April 2, 2022.
As of April 1, 2023, we had approximately $418,000 in cash and our working capital was approximately $3,554,000 compared with approximately $1,072,000 in cash and working capital of $3,625,000 at December 31, 2022. The decrease in cash during the thirteen weeks ended April 2, 2022 was primarily due to a decrease in payables.
Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “We are pleased with our strong cash and working capital position at April 1, 2023. We believe that the production difficulties that impacted our revenues in 2022 have been resolved and that we are poised to achieve improved revenues and profitability,” concluded Mr. Kass.
AboutTofutti 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 bars. Tofutti also sells a prepared food entrée, Mintz’s Blintzes®, made with Tofutti’s milk-free cheeses such as Better Than Cream Cheese® and Sour Supreme®. For more information, visit www.tofutti.com.
Forward-LookingStatements
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 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.
TOFUTTIBRANDS, INC.
UnauditedCondensed Statements of Operations
(inthousands, except per share figures)
| Thirteen weeks | Thirteen weeks | ||||
|---|---|---|---|---|---|
| ended | ended | ||||
| April 1, 2023 | April 2, 2022 | ||||
| Net sales | $ | 2,490 | $ | 3,463 | |
| Cost of sales | 1,884 | 2,606 | |||
| Gross profit | 606 | 857 | |||
| Operating expenses: | |||||
| Selling and warehouse | 271 | 264 | |||
| Marketing | 95 | 156 | |||
| Research and development | 28 | 40 | |||
| General and administrative | 302 | 337 | |||
| Total operating expenses | 696 | 797 | |||
| Income from operations | (90 | ) | 60 | ||
| SBA loan forgiveness | - | 165 | |||
| Income before interest expense and income taxes | (90 | ) | 225 | ||
| Interest expense | 1 | - | |||
| (Loss) income before income tax | (91 | ) | 225 | ||
| Provision for income tax expense | 11 | 20 | |||
| Net (loss) income | $ | (102 | ) | $ | 205 |
| Weighted average common shares outstanding | |||||
| Basic | 5,154 | 5,154 | |||
| Diluted | 5,154 | 5,154 | |||
| (Loss) earnings per share: | |||||
| Basic | $ | (0.02 | ) | $ | 0.04 |
| Diluted | $ | (0.02 | ) | $ | 0.04 |
TOFUTTIBRANDS INC.
UnauditedCondensed Balance Sheets
(inthousands, except share and per share figures)
| December 31, 2022 | |||
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | 418 | $ | 1,072 |
| Accounts receivable, net of allowance for doubtful accounts and sales promotions was 495 for both periods respectively | 940 | 1,305 | |
| Inventories | 2,587 | 2,463 | |
| Prepaid expenses and other current assets | 66 | 80 | |
| Total current assets | 4,011 | 4,920 | |
| Operating lease right-of-use assets | 140 | 158 | |
| Financing lease right-of-use assets | 49 | 53 | |
| Deferred tax assets | 357 | 367 | |
| Other assets | 19 | 19 | |
| Total assets | 4,576 | $ | 5,517 |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities: | |||
| Income taxes payable | 41 | $ | 41 |
| Accounts payable | 65 | 684 | |
| Accrued expenses | 336 | 555 | |
| Financing lease liabilities, current | 15 | 15 | |
| Total current liabilities | 457 | 1,295 | |
| Financing lease liabilities, long-term | 36 | 39 | |
| Operating lease liabilities | 67 | 85 | |
| Total liabilities | 560 | 1,419 | |
| 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, issued and outstanding 5,153,706 shares | 52 | 52 | |
| Additional paid in capital | 283 | 263 | |
| Retained earnings | 3,681 | 3,783 | |
| Total stockholders’ equity | 4,016 | 4,098 | |
| Total liabilities and stockholders’ equity | 4,576 | $ | 5,517 |
All values are in US Dollars.