8-K
TOFUTTI BRANDS INC (TOFB)
UNITEDSTATES
SECURITIESAND EXCHANGE COMMISSION
Washington,D.C. 20549
FORM8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
May 24, 2021
Date of Report
(Date of earliest event reported)
TOFUTTIBRANDS INC**.**
(Exact name of registrant as specified in its charter)
| Delaware | 001-09009 | 13-3094658 |
|---|---|---|
| (State<br> or other jurisdiction<br><br> of incorporation) | (Commission<br><br> <br>File<br> Number) | (IRS<br> Employer<br><br> Identification No.) |
| 50<br> Jackson Drive Cranford, New Jersey 07016 | ||
| --- | ||
| (Address<br> of principal executive offices and zip code) | ||
| (908)272-2400 | ||
| --- | ||
| (Registrant’s<br> telephone number, including area code) | ||
| Not<br> Applicable | ||
| --- | ||
| (Former<br> name or former address, 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<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| [ ] | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement<br> communications 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<br> Stock, par value $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. [ ]
ITEM2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 24, 2021, the registrant reported its results of operations for the thirteen weeks ended April 3, 2021. 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.
ITEM9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
| Exhibit<br> 99.1 | Press Release dated May 24, 2021 |
|---|
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:<br> May 24, 2021 | TOFUTTI<br> BRANDS INC. | |
|---|---|---|
| (Registrant) | ||
| By: | /s/Steven Kass | |
| Steven<br> Kass | ||
| Chief<br> Financial Officer |
Exhibit99.1
May 24, 2021
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 3, 2021
CompanyReports Net Income of $80,000 in 2021 Compared to
NetIncome of $50,000 in Prior Year
Cranford, New Jersey — May 24, 2021 — TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) issued its results for the thirteen weeks ended April 3, 2021 today.
Net sales for the thirteen weeks ended April 3, 2021 decreased by $76,000, or 2%, to $3,150,000, from net sales of $3,226,000 for the thirteen weeks ended March 28, 2020. The Company reported net income of $80,000 ($0.02 per share basic and diluted) for the thirteen weeks ended April 3, 2021 compared to net income of $50,000 ($0.01 per share, basic and diluted) for the thirteen weeks ended March 28, 2020.
Sales of our frozen dessert and frozen food products, which consist primarily of frozen dessert products, increased slightly to $430,000 in the thirteen weeks ended April 3, 2021 from $412,000 for the thirteen weeks ended March 28, 2020. Sales of vegan cheese products decreased to $2,720,000 in the 2021 period from $2,814,000 in the 2021 period resulting from production delays.
The Company’s gross profit increased slightly to $1,001,000 in the period ended April 3, 2021 from $996,000 in the period ended March 28, 2020. The Company’s gross profit percentage was 32% for the period ending April 3, 2021 compared to 31% for the period ending March 28, 2020.
As of April 3, 2021, the Company had approximately $2,446,000 in cash and our working capital was approximately $4,693,000, compared with approximately $1,459,000 in cash and working capital of $4,639,000 at January 2, 2021. The increase in cash during the first quarter of 2021 was due to the $987,000 provided by operating activities, which benefitted from improved accounts receivable collection.
To date, the effects of the pandemic have not materially affected the Company’s operations or sales.
Mr. Steven Kass, Chief Executive Officer and Chief Financial Officer of the Company stated, “We continue to be able to operate successfully, maintaining our sales and increasing our net income. We look forward to regaining our upward trajectory during the remainder of fiscal 2021,” 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 35 milk-free foods including cheese products, frozen desserts and prepared frozen dishes. 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 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 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.
TOFUTTIBRANDS, INC.
UnauditedCondensed Statements of Income
(inthousands, except per share figures)
| Thirteen<br><br> <br>weeks ended<br><br> <br>April 3, 2021 | Thirteenweeks ended March 28, 2020 | |||
|---|---|---|---|---|
| Net<br> sales | $ | 3,150 | $ | 3,226 |
| Cost<br> of sales | 2,149 | 2,230 | ||
| Gross<br> profit | 1,001 | 996 | ||
| Operating<br> expenses: | 879 | 933 | ||
| Income<br> before interest expense and income taxes | 122 | 63 | ||
| Interest<br> expense | 6 | 6 | ||
| Income<br> before income taxes | 116 | 57 | ||
| Income<br> tax expense | 36 | 7 | ||
| Net<br> income | $ | 80 | $ | 50 |
| Weighted<br> average common shares outstanding: | ||||
| Basic | 5,154 | 5,154 | ||
| Diluted | 5,436 | 5,154 | ||
| Earnings<br> per common share: | ||||
| Basic | $ | 0.02 | $ | 0.01 |
| Diluted | $ | 0.02 | $ | 0.01 |
TOFUTTIBRANDS INC.
UnauditedCondensed Balance Sheets
(inthousands, except share and per share figures)
| January 2, 2021 | |||
|---|---|---|---|
| Assets | |||
| Current<br> assets: | |||
| Cash | 2,446 | $ | 1,459 |
| Accounts<br> receivable, net of allowance for doubtful accounts and sales promotions of 472 and 457, respectively | 1,301 | 2,078 | |
| Inventories | 2,045 | 1,997 | |
| Prepaid<br> expenses and other current assets | 63 | 88 | |
| Total<br> current assets | 5,855 | 5,622 | |
| Equipment,<br> net | 132 | 135 | |
| Operating<br> lease right-of-use assets | 197 | 224 | |
| Deferred<br> tax assets | 83 | 83 | |
| Other<br> assets | 39 | 19 | |
| Total<br> assets | 6,306 | $ | 6,083 |
| Liabilities<br> and Stockholders’ Equity | |||
| Current<br> liabilities: | |||
| SBA<br> loan payable | 120 | $ | 112 |
| Income<br> taxes payable | 153 | 117 | |
| Accounts<br> payable | 551 | 219 | |
| Accrued<br> expenses | 338 | 535 | |
| Total<br> current liabilities | 1,162 | 983 | |
| Convertible<br> note payable-long term-related party | 500 | 500 | |
| SBA<br> loan payable, net of current portion | 45 | 53 | |
| Operating<br> lease liabilities | 95 | 123 | |
| Total<br> liabilities | 1,802 | 1,659 | |
| Stockholders’<br> equity: | |||
| Preferred<br> stock - par value .01 per share; authorized 100,000 shares, none issued and outstanding | — | — | |
| Common<br> stock - par value .01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares | 52 | 52 | |
| Additional<br> paid-in capital | 207 | 207 | |
| Retained<br> earnings | 4,245 | 4,165 | |
| Total<br> stockholders’ equity | 4,504 | 4,424 | |
| Total<br> liabilities and stockholders’ equity | 6,306 | $ | 6,083 |
All values are in US Dollars.