UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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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 November 14, 2023, the Registrant reported its results of operations for the thirteen and thirty-nine weeks ended September 30, 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 November 14, 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: November 14, 2023 | TOFUTTI BRANDS INC. | |
| (Registrant) | ||
| By: | /s/Steven Kass | |
| Steven Kass | ||
| Chief Executive and Financial Officer | ||
EXHIBIT 99.1
November 14, 2023
Tofutti Press Release
| Company Contact: | Steve Kass |
| Chief Executive/Financial Officer | |
| (908) 272-2400 | |
| (908) 272-9492 (Fax) |
TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 1, 2023
Cranford, New Jersey — November 14, 2023 — TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen and twenty-six weeks ended September 30, 2023, today.
Net sales for the thirteen weeks ended September 30, 2023 decreased by $381,000, or 13%, to $2,515,000, from net sales of $2,896,000 for the thirteen weeks ended October 1, 2022. Sales of our vegan cheese products decreased to $2,110,000 in the thirteen weeks ended September 30, 2023 from $2,344,000 in the thirteen weeks ended October 1, 2022. Sales of our frozen dessert products decreased to $406,000 in the thirteen weeks ended September 30, 2023, compared to $562,000 for the thirteen weeks ended October 1, 2022. For the thirty-nine-week period ended September 30, 2023, net sales decreased by $1,614,000, or 17%, to $7,724,000, compared to net sales of $9,338,000 for the thirty-nine weeks ended October 1, 2022.
Our gross profit increased to $786,000 for the thirteen weeks ended September 30, 2023 from $427,000 for the thirteen weeks ended October 1, 2022. Our gross profit percentage was 31% for the thirteen weeks ending September 30, 2023, compared to 15% for the thirteen weeks ending October 1, 2022. Our gross profit increased to $2,059,000 for the thirty-nine weeks ended September 30, 2023 from $1,812,000 for the thirty-nine weeks ended October 1, 2022.
We had net income of $110,000, or $0.02 per share (basic and diluted) for the thirteen-weeks ended September 30, 2023 and a net loss of $310,000 or $0.06 per share (basic and diluted), for the thirty-nine weeks ended September 30, 2023, compared to net losses of $192,000, or $0.04 (basic and diluted) per share, and $195,000 or $0.04 basic and diluted per share for the thirteen and thirty-nine weeks ended October 1, 2022, respectively.
As of November 9, 2023, we had approximately $747,000 in cash and our working capital was approximately $3,533,000 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 thirty-nine weeks ended September 30, 2023 was primarily due to a decrease in payables.
Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “While we are disappointed in our sales performance during the first nine months of 2023, our cash and available capital balances remain strong and we are pleased by our return to profitable operations in the thirteen week period ended September 30, 2023. We believe that we are positioned for improved results,” 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 frozen desserts and Tofutti Cutie® sandwiches, and vegan cheese products, such as Better Than Cream Cheese® and Better Than Sour Cream®. 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-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 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.
Unaudited Condensed Statements of Operations
(in thousands, except per share figures)
| Thirteen weeks ended September 30, 2023 | Thirteen weeks ended October 1, 2022 | Thirty-nine weeks ended September 30, 2023 | Thirty-nine weeks ended October 1, 2022 | |||||||||||||
| Net sales | $ | 2,515 | $ | 2,896 | $ | 7,724 | $ | 9,338 | ||||||||
| Cost of sales | 1,729 | 2,469 | 5,665 | 7,526 | ||||||||||||
| Gross profit | 786 | 427 | 2,059 | 1,812 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling and warehouse | 210 | 261 | 802 | 834 | ||||||||||||
| Marketing | 103 | 103 | 287 | 370 | ||||||||||||
| Research and development | 28 | 26 | 111 | 108 | ||||||||||||
| General and administrative | 333 | 298 | 1,018 | 987 | ||||||||||||
| 674 | 688 | 2,218 | 2,299 | |||||||||||||
| Income (loss) from operations | 112 | (261 | ) | (159 | ) | (487 | ) | |||||||||
| Other income: | ||||||||||||||||
| SBA loan forgiveness | - | - | - | 165 | ||||||||||||
| Income (loss) before interest expense and income taxes | 112 | (261 | ) | (159 | ) | (322 | ) | |||||||||
| Interest expense | 1 | - | 3 | - | ||||||||||||
| Loss before income tax | 111 | (261 | ) | (162 | ) | (322 | ) | |||||||||
| Income tax expense (benefit) | 1 | (69 | ) | 148 | (127 | ) | ||||||||||
| Net income (loss) | $ | 110 | $ | (192 | ) | $ | (310 | ) | $ | (195 | ) | |||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 5,154 | 5,154 | 5,154 | 5,154 | ||||||||||||
| Diluted | 5,154 | 5,154 | 5,154 | 5,154 | ||||||||||||
| Income (loss) per common share: | ||||||||||||||||
| Basic | $ | .02 | $ | (.04 | ) | $ | (.06 | ) | $ | (.04 | ) | |||||
| Diluted | $ | .02 | $ | (.04 | ) | $ | (.06 | ) | $ | (.04 | ) | |||||
TOFUTTI BRANDS INC.
Unaudited Condensed Balance Sheets
(in thousands, except share and per share figures)
September 30, 2023 | December 31, 2022 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 727 | $ | 1,072 | ||||
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of $510 and $495, respectively | 986 | 1,305 | ||||||
| Inventories | 2,547 | 2,463 | ||||||
| Prepaid expenses and other current assets | 87 | 80 | ||||||
| Total current assets | 4,347 | 4,920 | ||||||
| Operating lease right-of-use assets | 100 | 158 | ||||||
| Finance lease right-of-use asset | 40 | 53 | ||||||
| Deferred tax assets | 183 | 367 | ||||||
| Other assets | 19 | 19 | ||||||
| Total assets | $ | 4,689 | $ | 5,517 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Income taxes payable | $ | — | $ | 41 | ||||
| Accounts payable | 491 | 684 | ||||||
| Accrued expenses | 294 | 555 | ||||||
| Finance lease liability, current portion | 15 | 15 | ||||||
| Total current liabilities | 800 | 1,295 | ||||||
| Financing lease liabilities, long-term | 27 | 39 | ||||||
| Operating lease liabilities | 27 | 85 | ||||||
| Total liabilities | 854 | 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, 5,153,706 shares issued and outstanding | 52 | 52 | ||||||
| Additional paid-in capital | 310 | 263 | ||||||
| Retained earnings | 3,473 | 3,783 | ||||||
| Total stockholders’ equity | 3,835 | 4,098 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,689 | $ | 5,517 | ||||