TOFB Tofutti Brands Inc (QB)

 

 

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 14, 2024

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 May 14, 2024, the Registrant reported its results of operations for the quarter ended March 30, 2024. 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 14, 2024
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 14, 2024	TOFUTTI BRANDS INC.
	(Registrant)
	By:	/s/ Steven Kass
		Steven Kass
		Chief Executive and Financial Officer

 

 

 

Exhibit 99.1

 

May 14, 2024

 

Tofutti Press Release

 

Company Contact:	Steve Kass
	Chief Executive/Financial Officer
	(908) 272-2400
	(908) 272-9492 (Fax)

 

TOFUTTI ANNOUNCES RESULTS FOR THE FISCAL QUARTER ENDED MARCH 30, 2024

 

Cranford, New Jersey — May 14, 2024 — TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) today issued its results for the fiscal quarter ended March 30, 2024.

 

Tofutti Brands reported net sales of $2,212,000, a decrease of $278,000 or 11%, from net sales of $2,490,000 for the fiscal quarter ended April 1, 2023. Sales of our vegan cheese products decreased to $1,809,000 in the thirteen weeks ended March 30, 2024 from $2,100,000 in the thirteen weeks ended April 1, 2023, due to increased competition in the vegan cheese category. Sales of our frozen dessert products increased slightly to $403,000 in the thirteen weeks ended March 30, 2024 from $390,000 for the thirteen weeks ended April 1, 2023.

 

Our gross profit decreased to $470,000 for the thirteen weeks ended March 30, 2024 from $606,000 for the thirteen weeks ended April 1, 2023, principally due to the reduction in sales. Our gross profit percentage was 21% for the thirteen weeks ending March 30, 2024 compared to 24% for the thirteen weeks ending April 1, 2023. Our gross profit percentage decreased partly due to the fact that our frozen dessert product sales accounted for a higher percentage of total sales. Our gross profit percentage is significantly lower on frozen dessert products versus our cheese products. Continued cost increases in certain key ingredients and packaging also negatively affected our gross profit and gross profit percentage.

 

We incurred a net loss of $303,000, or $0.06 per share (basic and diluted) for the quarter ended March 30, 2024 compared to a net loss of $102,000, or $0.02 per share (basic and diluted), for the quarter ended April 1, 2023.

 

At March 30, 2024 we had approximately $351,000 in cash and our working capital was approximately $3,159,000 as compared to $837,000 in cash and working capital of $3,440,000 at December 31, 2023.

 

Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “We are working diligently to improve our sales performance and to return to profitability in 2024.

 

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 plant-based ice cream pints, cones, Tofutti Cutie® sandwiches and novelty products.

 

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.

Unaudited Condensed Balance Sheets

(in thousands, except share and per share figures)

 

		March 30, 2024				December 30, 2023
Assets
Current assets:
Cash		$	351			$	837
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $495 and $525.			889				828
Inventories			2,453				2,475
Prepaid expenses and other current assets			97				93
Total current assets			3,790				4,233
Operating lease right-of-use assets			66				81
Finance lease right-of-use asset			32				36
Deferred tax assets			246				246
Other assets			19				19
Total assets		$	4,153			$	4,615
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	209			$	237
Accrued expenses			407				541
Finance lease liability, current portion			15				15
Total current liabilities			631				793
Operating lease liabilities, net of current portion			—				7
Finance lease liability, net of current portion			19				23
Total liabilities			650				823
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			337				323
Retained earnings			3,114				3,417
Total stockholders’ equity			3,503				3,792
Total liabilities and stockholders’ equity		$	4,153			$	4,615

 

 

TOFUTTI BRANDS, INC.

Unaudited Condensed Statements of Operations

(in thousands, except per share figures)

 

		Thirteen weeks ended March 30, 2024				Thirteen weeks ended April 1, 2023
Net sales		$	2,212			$	2,490
Cost of sales			1,742				1,884
Gross profit			470				606
Operating expenses:
Selling and warehouse			214				271
Marketing			134				95
Research and development			42				28
General and administrative			382				302
			772				696
Loss from operations			(302	)			(90	)
Loss before interest expense and income taxes			(302	)			(90	)
Interest expense			1				1
Loss before income tax			(303	)			(91	)
Provision for income taxes			—				11
Net loss		$	(303	)		$	(102	)
Weighted average common shares outstanding:
Basic			5,154				5,154
Diluted			5,154				5,154
Earnings (loss) per common share:
Basic		$	(0.06	)		$	(0.02	)
Diluted		$	(0.06	)		$	(0.02	)

 

v3.24.1.1.u2

Cover	May 14, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	May 14, 2024
Entity File Number	001-09009
Entity Registrant Name	TOFUTTI BRANDS INC.
Entity Central Index Key	0000730349
Entity Tax Identification Number	13-3094658
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	50 Jackson Drive
Entity Address, City or Town	Cranford
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07016
City Area Code	(908)
Local Phone Number	272-2400
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	TOFB
Entity Emerging Growth Company	false

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