Tofutti Brands Inc 8-K, filed Nov 16, 2020
Tofutti Brands Inc (TOFB)
About this 8-K
Tofutti Brands Inc filed this 8-K on November 16, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
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
November 16, 2020
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 of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 50 Jackson Drive Cranford, New Jersey 07016 | ||
| (Address of principal executive offices and zip code) |
| (908)272-2400 | ||
| (Registrant’s telephone number, including area code) |
| Not Applicable | ||
| (Former 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 communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| [ ] | Pre-commencement 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 of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Common 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. [ ]
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On November 16, 2020, the registrant reported its results of operations for the thirteen and thirty-nine weeks ended September 26, 2020. 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 16, 2020 |
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 16, 2020 | TOFUTTI BRANDS INC. | |
| (Registrant) | ||
| By: | /s/ Steven Kass | |
| Steven Kass | ||
| Chief Financial Officer | ||
Exhibit 99.1
November 16, 2020
Tofutti Press Release
| Company Contact: | Steve Kass |
| Chief Financial Officer | |
| (908) 272-2400 | |
| (908) 272-9492 (Fax) |
TOFUTTI
ANNOUNCES THIRD QUARTER
AND NINE MONTH RESULTS
Cranford, New Jersey — November 16, 2020 — TOFUTTI BRANDS INC. (OTCQB Symbol: TOFB) today announced its results for the thirteen and thirty-nine week periods ended September 26, 2020.
Tofutti Brands reported net sales for the thirteen weeks ended September 26, 2020 of $3,152,000 compared to net sales of $3,122,000 for the thirteen weeks ended September 28, 2019. The Company’s gross profit increased to $1,033,000 for the thirteen weeks ended September 26, 2020 from $892,000 for the thirteen weeks ended September 28, 2019, and its gross profit percentage increased to 33% for the thirteen weeks ending September 26, 2020 compared to 29% for the thirteen weeks ending September 28, 2019.
The Company had net income of $220,000, or $0.04 per share (basic and diluted), for the thirteen weeks ended September 26, 2020, compared to a net loss of $40,000, or $(0.01) per share (basic and diluted), for the thirteen weeks ended September 28, 2019.
Net sales for the thirty-nine week period ended September 26, 2020 were $9,621,000 compared to net sales of $9,766,000 for the thirty-nine week period ended September 28, 2019, a decrease of $145,000. The Company’s gross profit for the thirty-nine week period ending September 26, 2020 was $3,044,000 compared to $2,735,000 for the thirty-nine week period ending September 28, 2019. The Company’s gross profit percentage was 32% for the thirty-nine weeks ended September 26, 2020 compared to 28% for the thirty-nine week period ended September 28, 2019.
The Company had net income of $410,000, or $0.08 per share (basic and diluted), for the thirty-nine weeks ended September 26, 2020 compared to a net loss of $79,000, or $(0.02) per share (basic and diluted), for the thirty-nine weeks ended September 28, 2019.
As of September 26, 2020, the Company had approximately $1,399,000 in cash and cash equivalents and its working capital was approximately $4,511,000, compared with approximately $514,000 in cash and cash equivalents and working capital of $4,482,000 at December 28, 2019.
Small Business Administration Loan (SBA Loan) On May 4, 2020, the Company was granted a loan of $165,000 pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). A portion of the loan may be forgiven under provisions under the CARES Act based on payments for payroll, rent and utilities during the period subsequent to obtaining the loan.
Mr. David Mintz, Chairman and Chief Executive Officer of the Company stated, “We have been fortunate to maintain our operations despite the continuing impact of COVID-19. During the most recent fiscal period we were able to increase our sales and to record net income of $220,000 compared to a net loss during the comparable period in 2019. We are indebted to our employees whose contributions have allowed us to achieve these improved results and meet customer demand,” concluded Mr. Mintz.
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 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-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.
Condensed Statements of Operations
(in thousands, except per share figures)
Thirteen weeks ended September 26, 2020 | Thirteen weeks ended September 28, 2019 | Thirty-nine weeks ended September 26, 2020 | Thirty-nine weeks ended September 28, 2019 | |||||||||||||
| Net sales | $ | 3,152 | $ | 3,122 | $ | 9,621 | $ | 9,766 | ||||||||
| Cost of sales | 2,119 | 2,230 | 6,577 | 7,031 | ||||||||||||
| Gross profit | 1,033 | 892 | 3,044 | 2,735 | ||||||||||||
| Operating expenses: | 782 | 926 | 2,514 | 2,789 | ||||||||||||
| Income (loss) from operations | 251 | (34 | ) | 530 | (54 | ) | ||||||||||
| Interest expense | 6 | 6 | 19 | 19 | ||||||||||||
| Income (loss) before income tax | 245 | (40 | ) | 511 | (73 | ) | ||||||||||
| Income tax expense | 25 | — | 101 | 6 | ||||||||||||
| Net income (loss) | ||||||||||||||||
| Basic | $ | 220 | $ | (40 | ) | $ | 410 | $ | (79 | ) | ||||||
| Diluted | $ | 225 | $ | (40 | ) | $ | 425 | $ | (79 | ) | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 5,154 | 5,154 | 5,154 | 5,154 | ||||||||||||
| Diluted | 5,436 | 5,154 | 5,436 | 5,154 | ||||||||||||
| Earnings (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.04 | $ | (0.01 | ) | $ | 0.08 | $ | (0.02 | ) | ||||||
| Diluted | $ | 0.04 | $ | (0.01 | ) | $ | 0.08 | $ | (0.02 | ) | ||||||
TOFUTTI BRANDS INC.
Condensed Balance Sheets
(in thousands, except share and per share figures)
| September 26, 2020 (unaudited) | December 28, 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 1,399 | $ | 514 | ||||
| Accounts receivable, net of allowance for doubtful accounts and sales promotions of $442 and $407, respectively | 1,634 | 1,819 | ||||||
| Inventories | 2,036 | 1,929 | ||||||
| Prepaid expenses and other current assets | 75 | 120 | ||||||
| Total current assets | 5,144 | 4,382 | ||||||
| Deferred tax assets | 144 | 217 | ||||||
| Fixed assets (net of accumulated depreciation of $13 and $5, respectively) | 137 | 145 | ||||||
| Operating lease right-of-use assets | 177 | 252 | ||||||
| Other assets | 35 | 30 | ||||||
| Total assets | $ | 5,637 | $ | 5,026 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 336 | $ | 167 | ||||
| Accrued expenses | 326 | 375 | ||||||
| Total current liabilities | 662 | 542 | ||||||
| Convertible note payable-long term-related party | 500 | 500 | ||||||
| SBA note payable-long term | 165 | — | ||||||
| Operating lease liabilities | 72 | 156 | ||||||
| Total liabilities | 1,399 | 1,198 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued | — | — | ||||||
| Common stock - par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares at September 26, 2020 and December 28, 2019 | 52 | 52 | ||||||
| Additional paid-in capital | 207 | 207 | ||||||
| Retained earnings | 3,979 | 3,569 | ||||||
| Total stockholders’ equity | 4,238 | 3,828 | ||||||
| Total liabilities and stockholders’ equity | $ | 5,637 | $ | 5,026 | ||||