Form 8-K - Current report

 

 

 

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

 

August 15, 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)

[phone]

(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 August 15, 2024, the Registrant reported its results of operations for the thirteen and twenty-six weeks ended June 29, 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 August 15, 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: August 15, 2024	TOFUTTI BRANDS INC.
	(Registrant)
	By:	/s/ Steven Kass
		Steven Kass
		Chief Executive and Financial Officer

 

 

 

Exhibit 99.1

 

May 15, 2024

 

Tofutti Press Release

 

Company Contact:	Steve Kass
	Chief Executive/Financial Officer
	[phone]
	[phone] (Fax)

 

TOFUTTI ANNOUNCES UNAUDITED RESULTS FOR THE THIRTEEN AND TWENTY-SIX WEEKS ENDED JUNE 29, 2024

 

Cranford, New Jersey — August 15, 2024 — TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) today announced its results for thirteen and twenty-six weeks ended June 29, 2024. Tofutti Brands reported that net sales for the thirteen weeks ended June 29, 2024 decreased by $436,000, or 16%, to $2,283,000, from net sales of $2,719,000 for the thirteen weeks ended July 1, 2023. Sales of our vegan cheese products decreased to $1,926,000 for the thirteen weeks ended June 29, 2024 from $2,283,000 for the thirteen weeks ended July 1 2023. Sales of our frozen dessert products decreased to $357,000 in the thirteen weeks ended June 29, 2024 from $436,000 for the thirteen weeks ended July 1, 2026. For the twenty-six week period ended June 29, 2024, sales decreased by $713,000 or 14% to $4,495,000 compared to $5,208,000 for the twenty-six week period ended July 1, 2023.

 

Our gross profit was $667,000 for both the thirteen weeks ended June 29, 2024 and the thirteen weeks ended July 1, 2023. Our gross profit percentage increased to 29% for the thirteen weeks ending June 29, 2024 compared to 25% for the thirteen weeks ending July 1, 2023. Our gross profit decreased to $1,136,000 for the twenty-six week period ended June 24, 2024 from $1,273,000 for the twenty-six week period ended July 1, 2023. Our gross profit percentage increased to 25% for the twenty-six weeks ending June 29, 2024 compared to 24% for the twenty-six weeks ending July 1, 2023.

 

We had net losses of $32,000, or $0.01 per share (basic and diluted) and $335,000 or $0.06 per share (basic and diluted), for the thirteen and twenty-six weeks ended June 29, 2024, respectively, compared to net losses of $318,000, or $0.06 (basic and diluted) per share, and $420,000 or $0.08 (basic and diluted) per share for the thirteen and twenty-six weeks ended July 1, 2023, respectively.

 

As of June 29, 2024, we had approximately $489,000 in cash and our working capital was approximately $3,105,000 compared with approximately $837,000 in cash and working capital of $3,440,000 at December 30, 2023. The decrease in cash during the twenty-six weeks ended June 29, 2024 was primarily due to a net loss. A decrease in current assets other than cash was offset by a decrease in current liabilities.

 

Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “While our revenues were disappointing in the first six months of 2024, we were pleased with our improved operating results. We believe that our cash and available cash resources remain strong and we look forward to achieving improved operating results in the second half of 2024,” 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 plant-based frozen dessert pints, 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.

Condensed Balance Sheets

(in thousands, except share and per share figures)

 

		June 29, 2024 (Unaudited)				December 30, 2023
Assets
Current assets:
Cash		$	489			$	837
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $505 and $525, respectively			817				828
Inventories			2,171				2,475
Prepaid expenses and other current assets			75				93
Total current assets			3,552				4,233
Operating lease right-of-use asset			47				81
Finance lease right-of-use asset			29				36
Deferred tax assets			246				246
Other assets			40				19
Total assets		$	3,914			$	4,615
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			12				237
Accrued expenses			387				541
Finance lease liability, current portion			11				15
Total current liabilities			410				793
Operating lease liabilities, net of current portion			—				7
Finance lease liability, net of current portion			20				23
Total liabilities			430				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			350				323
Retained earnings			3,082				3,417
Total stockholders’ equity			3,484				3,792
Total liabilities and stockholders’ equity		$	3,914			$	4,615

 

 

 

TOFUTTI BRANDS, INC.

Unaudited Condensed Statements of Operations

(in thousands, except per share figures)

 

		Thirteen weeks ended June 29, 2024				Thirteen weeks ended July 1, 2023				Twenty-six weeks ended June 29, 2024				Twenty-six weeks ended July 1, 2023
Net sales		$	2,283			$	2,719			$	4,495			$	5,208
Cost of sales			1,616				2,052				3,359				3,935
Gross profit			667				667				1,136				1,273
Operating expenses:
Selling and warehouse			250				320				464				592
Marketing			79				89				213				184
Research and development			22				56				64				83
General and administrative			342				383				724				686
			693				848				1,465				1,545
Loss from operations			(26	)			(181	)			(329	)			(272	)
Loss before interest expense and income taxes			(26	)			(181	)			(329	)			(272	)
Interest expense			1				1				1				2
Loss before income tax			(27	)			(182	)			(330	)			(274	)
Income tax expense			5				136				5				146
Net loss		$	(32	)		$	(318	)		$	(335	)		$	(420	)
Weighted average common shares outstanding:
Basic			5,154				5,154				5,154				5,154
Diluted			5,154				5,154				5,154				5,154
Loss per common share:
Basic		$	(0.01	)		$	(0.06	)		$	(0.06	)		$	(0.08	)
Diluted		$	(0.01	)		$	(0.06	)		$	(0.06	)		$	(0.08	)

 

 

Cover	Aug. 15, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Aug. 15, 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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