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
April 19, 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> <br>of<br> 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 April 19, 2021, the registrant reported its results of operations for the fiscal year ended January 2, 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 April 19, 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> April 19, 2021 | TOFUTTI<br> BRANDS INC. | |
|---|---|---|
| (Registrant) | ||
| By: | /s/ Steven Kass | |
| Steven<br> Kass | ||
| Chief<br> Financial Officer |
Exhibit99.1
April 19, 2021
TofuttiPress Release
| Company<br> Contact: | Steve<br> Kass |
|---|---|
| Chief<br> Financial Officer | |
| (908)<br> 272-2400 | |
| (908)<br> 272-9492 (Fax) |
TOFUTTIANNOUNCES 2020 RESULTS
CompanyReports Net Income of $596,000, or $0.11 Per Share on a Fully Diluted Basis, in Fiscal 2020 Compared to Net Incomeof $78,000, or $0.02 Per Share, in Fiscal 2019
Cranford, New Jersey — April 19, 2021 — TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) issued its results for the fiscal year ended January 2, 2021 today.
The Company reported net income of $596,000 ($0.12 per share basic and $0.11 per share diluted) on net sales of $13,815,000 for the fiscal year ended January 2, 2021 compared to net income of $78,000 ($0.02 per share, basic and diluted) on net sales of $13,130,000 for the fiscal year ended December 28, 2019.
The improved profitability in fiscal 2020 is primarily attributable to a $445,000 decrease in selling and warehousing expenses, an $89,000 decrease in marketing expenses and an $84,000 decrease in product development costs.
Sales of vegan cheese products increased to $11,669,000 in fiscal 2020 from $11,241,000 in fiscal 2019 and sales of the Company’s frozen dessert and frozen food product lines increased to $2,146,000 in fiscal 2020 from $1,889,000 in fiscal 2019. The increase in sales of vegan cheese products was attributable in great measure to increased sales of the Company’s food service-sized BETTER THAN CREAM CHEESE and BETTER THAN SOUR CREAM products. The Company’s gross profit for the year ended January 2, 2021 increased to $4,253,000 from $4,037,000, and its gross profit percentage remained steady at 31%.
As of January 2, 2021, the Company had approximately $1,459,000 in cash, and its working capital was $4,639,000 compared with approximately $514,000 in cash and working capital of $3,840,000 at December 28, 2019.
RecentEvents
On February 24, 2021 David Mintz, the Company’s founder, Chief Executive Officer and Chairman of the Board of Directors, passed away. Steven Kass, Chief Financial Officer, was appointed interim CEO by its Board of Directors.
To date, the effects of the pandemic have not materially affected the Company’s operations or sales. All of its co-packing facilities are currently operating as normal and the pandemic has not constrained any of its production requirements. The Company continues to be able to schedule trucks for delivery and a large majority of its customers are still operating and ordering the Company’s products as before.
Mr. Steven Kass, Interim Chief Executive Officer and Chief Financial Officer of the Company stated, “During 2020 we were able to continue to operate successfully, improving our sales and net income. We are continuing to meet market demand for our products while maintaining the safety of our employees, substantially all of whom are working remotely. We look forward to continuing our upward trajectory in 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.
Statementsof Income
(inthousands, except per share figures)
| Fiscal year<br> <br>ended<br> <br>January 2, 2021* | Fiscal year<br> <br>ended<br> <br>December 28, 2019* | |||
|---|---|---|---|---|
| Net sales | $ | 13,815 | $ | 13,130 |
| Cost of sales | 9,562 | 9,093 | ||
| Gross profit | 4,253 | 4,037 | ||
| Total operating expenses | 3,377 | 3,929 | ||
| Income from operations | 876 | 108 | ||
| Interest expense- related party | 25 | 25 | ||
| Income before provision for income taxes | 851 | 83 | ||
| Provision for income taxes | 255 | 5 | ||
| Net income | $ | 596 | $ | 78 |
| Weighted average common shares outstanding: | ||||
| Basic | 5,154 | 5,154 | ||
| Diluted | 5,456 | 5,154 | ||
| Net income per common share: | ||||
| Basic | $ | 0.12 | $ | 0.02 |
| Diluted | $ | 0.11 | $ | 0.02 |
| * | Derived<br> from audited financial information | |||
| --- | --- |
TOFUTTIBRANDS INC.
BalanceSheets
(inthousands, except per share figures)
| December 28,<br> <br>2019* | |||
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash | 1,459 | $ | 514 |
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of 457 and 407, respectively | 2,078 | 1,819 | |
| Inventories | 1,997 | 1,929 | |
| Prepaid expenses and other current assets | 88 | 120 | |
| Total current assets | 5,622 | 4,382 | |
| Equipment, net | 135 | 145 | |
| Operating lease right-of-use assets | 224 | 252 | |
| Deferred tax assets | 83 | 217 | |
| Other assets | 19 | 30 | |
| Total assets | 6,083 | $ | 5,026 |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities: | |||
| SBA loan payable | 112 | — | |
| Income taxes payable | 117 | — | |
| Accounts payable | 219 | 167 | |
| Accrued expenses | 535 | 375 | |
| Total current liabilities | 983 | 542 | |
| Convertible note payable-long term-related party | 500 | 500 | |
| SBA loan payable, net of current portion | 53 | — | |
| Operating lease liabilities | 123 | 156 | |
| Total liabilities | 1,659 | 1,198 | |
| 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 | 207 | 207 | |
| Retained earnings | 4,165 | 3,569 | |
| Total stockholders’ equity | 4,424 | 3,828 | |
| Total liabilities and stockholders’ equity | 6,083 | $ | 5,026 |
All values are in US Dollars.
| * | Derived<br> from audited financial information. |
|---|