Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Mar. 29, 2016 | Jun. 27, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | TOFUTTI BRANDS INC | ||
Entity Central Index Key | 730,349 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 2, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-02 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity's Reporting Status Current | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 11,480,860 | ||
Entity Common Stock, Shares Outstanding | 5,153,706 | ||
Trading Symbol | TOF | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jan. 02, 2016 | Dec. 27, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 55 | $ 341 |
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $316 and $275 respectively | 1,783 | 1,914 |
Inventories, net of reserve of $0 and $150, respectively | 1,473 | 1,852 |
Prepaid expenses | 74 | 71 |
Deferred costs | 101 | 105 |
Total current assets | 3,486 | 4,283 |
Fixed assets (net of accumulated depreciation of $8 and $2, respectively) | 21 | 27 |
Other assets | 16 | 16 |
Total Assets | 3,523 | 4,326 |
Current liabilities: | ||
Note payable-current | 5 | 5 |
Accounts payable | 1,117 | 1,367 |
Accrued expenses | 248 | 264 |
Deferred revenue | 113 | 114 |
Total current liabilities | 1,483 | 1,750 |
Note payable-long term | 16 | 22 |
Total liabilities | $ 1,499 | $ 1,772 |
Commitments and contingencies | ||
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 January 2, 2016 and December 27, 2014 | $ 52 | $ 52 |
Additional paid-in capital | 113 | |
Retained earnings | 1,859 | $ 2,502 |
Total stockholders’ equity | 2,024 | 2,554 |
Total liabilities and stockholders’ equity | $ 3,523 | $ 4,326 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jan. 02, 2016 | Dec. 27, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts and sales promotions on accounts receivables | $ 316 | $ 275 |
Inventories, reserves | 0 | 150 |
Accumulated depreciation on fixed assets | $ 8 | $ 2 |
Preferred stock, par value | $ .01 | $ 0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | ||
Common stock, par value | $ .01 | $ .01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 5,153,706 | 5,153,706 |
Common stock, shares outstanding | 5,153,706 | 5,153,706 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Income Statement [Abstract] | ||
Net sales | $ 13,764 | $ 14,353 |
Cost of sales | 10,166 | 10,103 |
Gross profit | 3,598 | 4,250 |
Operating expenses: | ||
Selling and warehousing | 1,550 | 1,472 |
Marketing | 357 | 553 |
Product development costs | 523 | 641 |
General and administrative | 1,888 | 1,815 |
Total operating expenses | 4,318 | 4,481 |
Loss from operations | (720) | $ (231) |
Interest expense | 1 | |
Loss before provision for income tax | (721) | $ (231) |
Income tax benefit | (78) | (68) |
Net loss | $ (643) | $ (163) |
Weighted average common shares outstanding: | ||
Basic and diluted | 5,154 | 5,154 |
Net loss per common share: | ||
Basic and diluted | $ (0.12) | $ (0.03) |
Statements of Changes in Stockh
Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 28, 2013 | $ 52 | $ 2,665 | $ 2,717 | |
Balance, shares at Dec. 28, 2013 | 5,153,706 | |||
Net loss | (163) | (163) | ||
Balance at Dec. 27, 2014 | $ 52 | 2,502 | 2,554 | |
Balance, shares at Dec. 27, 2014 | 5,153,706 | |||
Net loss | $ (643) | (643) | ||
Stock-based compensation | $ 113 | 113 | ||
Balance at Jan. 02, 2016 | $ 52 | $ 113 | $ 1,859 | $ 2,024 |
Balance, shares at Jan. 02, 2016 | 5,153,706 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (643) | $ (163) |
Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities: | ||
Depreciation | 6 | $ 2 |
Stock-based compensation expense | 113 | |
Provision for bad debts and sales promotions | 41 | $ (2) |
Change in the unrecognized tax position | (82) | (69) |
Change in assets and liabilities: | ||
Accounts receivable | 90 | 42 |
Inventories | 379 | (8) |
Prepaid expenses | (3) | (31) |
Deferred costs | 4 | 33 |
Deferred revenue | (1) | (39) |
Accounts payable and accrued expenses | (184) | 364 |
Net cash flows (used in) provided by operating activities | (280) | 129 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on note payable obligation | (6) | (2) |
Net cash flows used in financing activities | (6) | (2) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (286) | 127 |
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR | 341 | 214 |
CASH AND CASH EQUIVALENTS, AT END OF YEAR | 55 | 341 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid | 7 | $ 7 |
Interest paid | $ 1 | |
Non-cash financing activities: | ||
Acquisition of equipment under note | $ 29 |
Liquidity and Capital Resources
Liquidity and Capital Resources | 12 Months Ended |
Jan. 02, 2016 | |
Liquidity and Capital Resources [Abstract] | |
Liquidity and Capital Resources | NOTE 1: LIQUIDITY AND CAPITAL RESOURCES At January 2, 2016, Tofutti Brands, Inc. (the Company) had approximately $55 in cash compared to $341 at December 27, 2014. Net cash used in operating activities for the year ended January 2, 2016 was $280 compared to $129 provided by operating activities for the year ended December 27, 2014. Net cash used in operating activities for the year ended January 2, 2016 was primarily the result of our net loss of $643 and a decrease of $184 in accounts payable and accrued expenses, which were partially offset by decreases in accounts receivable and inventory of $131 and $379, respectively. During the years ended January 2, 2016 and December 27, 2014, $6 and $2 was used in financing activities, respectively. The Company has historically financed operations and met capital requirements primarily through positive cash flow from operations. However, due to the net loss and cash used in operations for the year ended January 2, 2016 in order to provide the Company with additional working capital, on January 6, 2016, David Mintz, the Companys Chairman and Chief Executive, provided it with a loan of $500,000 which is due on December 31, 2017. Commencing March 31, 2016, interest of 5% is payable on a quarterly basis without compounding. The loan may be prepaid in whole or in part at any time without premium or penalty. The loan is convertible into the Companys common stock at a conversion price of $4.01 per share, the closing price of its common stock on the NYSE MKT on the date the promissory note was entered into. The Companys ability to introduce successful new products may be adversely affected by a number of factors, such as unforeseen cost and expenses, economic environment, increased competition, and other factors beyond the Companys control. Management cannot provide assurance that the Company will operate profitably in the future, or that it will not require significant additional financing in order to accomplish or exceed the objectives of its business plan. Consequently, the Companys historical operating results cannot be relied on to be an indicator of future performance, and management cannot predict whether the Company will obtain or sustain positive operating cash flow or generate net income in the future. |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | NOTE 2: DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Operating Segments. Fiscal Year Estimates and Uncertainties Revenue Recognition Concentration of Credit/Sales Risk The Company performs ongoing evaluations of its customers financial condition and does not require collateral. Management feels that credit risk beyond the established allowances at January 2, 2016 is limited. During the fiscal years ended January 2, 2016 and December 27, 2014, the Company derived approximately 83% of its net sales domestically. The remaining sales in both periods were exports to foreign countries. The accounts receivable balance of one customer represented approximately 9% of total accounts receivable at January 2, 2016, and one customer represented 16% of total accounts receivable at December 27, 2014. In addition, a significant portion of the Companys sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 44% and 43% of the Companys net sales for the fiscal years ended January 2, 2016 and December 27, 2014. Accounts Receivable - Deferred Revenue and Deferred Costs Cash and Cash Equivalents Inventories The Company purchased approximately 24% and 26% of its finished products from one supplier and 29% and 28% of its finished products from another supplier during the periods ended January 2, 2016 and December 27, 2014, respectively. Income Taxes Stock-based compensation Compensation Stock Compensation Net Loss Per Share Fiscal Year Ended January 2, 2016 Fiscal Year Ended December 27, 2014 Net loss, numerator, basic and diluted computation $ (643 ) $ (163 ) Weighted average shares - denominator basic computation 5,154 5,154 Effect of dilutive stock options - - Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Net loss per common share: Basic and diluted $ (0.12 ) $ (0.03 ) Fair Value of Financial Instruments Freight Costs Advertising Costs Product Development Costs - Recent Accounting Pronouncements - In November 2015, the FASB issued guidance that eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. This amendment is effective for the Company for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company has not yet adopted this guidance but does not expect the adoption of this guidance will have a material impact on its financial statements and related disclosures. In July 2015, the FASB issued guidance which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling pricings in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of this guidance will have a material impact on its financial statements and related disclosures. In 2015, the FASB issued an accounting standards update which deferred the effective date of ASU 2014-09 for all entities by one year. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the requirements of this update and has not yet determined its impact on its financial statements. In August, 2014, the FASB issued guidance that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entitys ability to continue as a going concern. If such conditions or events exist, disclosures are required that enable users of the financial statements to understand the nature of the conditions or events, managements evaluation of the circumstances and managements plans to mitigate the conditions or events that raise substantial doubt about the entitys ability to continue as a going concern. The Company will be required to perform an annual assessment of its ability to continue as a going concern when this standard becomes effective for it for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016; however, the adoption of this guidance is not expected to impact the Companys financial position, results of operations or cash flows. |
Inventories
Inventories | 12 Months Ended |
Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 3: INVENTORIES Inventories consist of the following: January 2, 2016 December 27, 2014 Finished products $ 1,007 $ 1,290 Raw materials and packaging 466 562 $ 1,473 $ 1,852 |
Fixed Assets
Fixed Assets | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 4: FIXED ASSETS Fixed assets consist of the following: January 2, 2016 December 27, 2014 Automobile $ 29 $ 29 29 29 Less: accumulated depreciation (8 ) (2 ) Fixed assets, net $ 21 $ 27 Depreciation expense as of year-end January 2, 2016 and December 27, 2014 was $6 and $2, respectively. |
Stock Options
Stock Options | 12 Months Ended |
Jan. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options | NOTE 5: STOCK OPTIONS On June 10, 2014, the shareholders of the Company approved the 2014 Equity Incentive Plan (the 2014 Plan). The 2014 Plan provides for grants of various types of awards that are designed to attract and retain highly qualified personnel who will contribute to the success of the Company and to provide incentives to participants in the 2014 Plan that are linked directly to increases in shareholder value which will therefore inure to the benefit of all shareholders of the Company. The Company intends to rely on a combination of multi-year performance awards, options and other stock-based awards for these purposes. The 2014 Plan made 250,000 shares of Common Stock available for awards. The 2014 Plan also permits performance-based 2014 awards paid under it to be tax deductible under Section 162(m) of the Internal Revenue Code of 1986, as amended, as performance-based compensation. As of January 2, 2016, the Company has issued 80,000 non-qualified stock option awards under the 2014 Plan. The following is a summary of stock option activity from December 27, 2014 to January 2, 2016: NON-QUALIFIED OPTIONS Shares Weighted Average Exercise Price ($) Outstanding at December 27, 2014 - - Granted 80,000 4.42 Exercised - - Outstanding at January 2, 2016 80,000 4.42 Exercisable at January 2, 2016 26,668 4.42 The following table summarizes information about stock options outstanding at January 2, 2016: Range of Exercise Prices ($) Number Outstanding Weighted Average Remaining Life (in years) Weighted Average Exercise Price($) Number Exercisable 4.39-4.46 80,000 4.31 4.42 26,668 The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula. Expected volatilities and risk-free interest rates are based upon the expected life of the grant. The interest rates used are the U.S. Treasury yield curve in effect at the time of the grant. During fiscal 2015, 80,000 options were granted, with 26,668 of the options vesting at the respective grant date, 26,666 vesting in January 2016, and 26,666 vesting in January 2017. As of January 2, 2016, the intrinsic value of the options outstanding and exercisable was immaterial. As of January 2, 2016, there was approximately $94 of total unrecognized compensation cost that will be recognized through January 2, 2017 related to non-vested share-based compensation arrangements granted under the Plan. For the fiscal year ended January 2, 2016 stock compensation expense was $113. |
Leases
Leases | 12 Months Ended |
Jan. 02, 2016 | |
Leases [Abstract] | |
Leases | NOTE 6: LEASES The Companys facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 square foot facility houses its administrative offices, a warehouse, walk-in freezer and refrigerator, and a product development laboratory and test kitchen. The Companys original lease agreement expired on July 1, 1999, but it continues to occupy the premises on a monthly basis. Any changes by either the landlord or the Company remains subject to a six month notification period. The Company currently has no plans to enter into a long-term lease agreement for the facility. Rent expense was $82 in 2015 and $80 in 2014. The Companys management believes that the Cranford facility will continue to satisfy its space requirements for the foreseeable future and that if necessary, such space can be replaced without a significant impact to the business. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7: INCOME TAXES The components of income tax benefit for the fiscal years ended January 2, 2016 and December 27, 2014 are as follows: January 2, 2016 December 27, 2014 Current: Federal $ (62 ) $ (53 ) State (16 ) (15 ) Total income tax benefit $ (78 ) $ (68 ) A reconciliation between the expected federal tax expense at the statutory tax rate of 34% and the Companys actual tax expense for the fiscal years ended January 2, 2016 and December 27, 2014 follows: January 2, 2016 December 27, 2014 Income tax expense computed at federal statutory rate $ (245 ) $ (77 ) State income taxes, net of federal income tax benefit 2 2 Permanent items 9 10 Change in federal valuation allowance 238 66 Reduction in unrecognized tax position (82 ) (69 ) $ (78 ) $ (68 ) Deferred tax assets for the fiscal years ended January 2, 2016 and December 27, 2014 consist of the following components: January 2, 2016 December 27, 2014 Allowance for doubtful accounts $ 114 $ 99 Inventory 31 93 Federal and state net operating loss 685 422 Other 39 2 Valuation allowance (869 ) (616 ) Deferred tax asset $ - $ - At January 2, 2016, the Company has $1,860 of federal net operating loss carryforwards and $2,664 of state net operating loss carryforwards, which will begin to expire in 2032. Management has concluded that based upon all available evidence it is more likely than not that deferred tax assets will not be utilized. The Company has recorded an increase in the valuation allowance in the amount of $253 during the year ended January 2, 2016. The remaining deferred tax asset is offset by the federal unrecorded tax benefit. The Company will recognize a tax benefit in the financial statements for an uncertain tax position only if managements assessment is that the position is more likely than not (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term tax position refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes. The following table indicates the changes to the Companys uncertain tax positions for the fiscal years ended January 2, 2016 and December 27, 2014: Balance at December 28, 2013 $ 178 Reduction due to the expiration of the statute of limitations and tax positions related to prior years (9 ) Balance at December 27, 2014 $ 169 Reduction due to the expiration of the statute of limitations and tax positions related to prior years (52 ) Balance at January 2, 2016 $ 117 The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. The Company had approximately $2 and $32 of accrued interest and penalties related to uncertain tax positions at January 2, 2016 and December 27, 2014, respectively. The amount of uncertain tax positions that would affect the effective tax rate if they were recognized is $119. The liability at January 2, 2016 for uncertain tax positions is included in accrued expenses. The Companys federal and state tax returns are open to examination for the years 2012 to 2015. |
Note Payable
Note Payable | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Note Payable | NOTE 8: NOTE PAYABLE In September 2014, the Company obtained an auto loan of approximately $29 from a bank. The loan requires 60 monthly payments of $0.535 through August 2019. Interest is charged at a fixed nominal rate of 4.64%. The loan is collateralized by the underlying automobile. January 2, 2016 December 27, 2014 Note payable $ 21 $ 27 Less current maturity 5 5 Note payable, net of current maturity $ 16 $ 22 Minimum estimated future payments on this loan as of January 2, 2016 are as follows: Fiscal Year Ending 2016 $ 5 2017 6 2018 6 2019 3 |
Sales by Geographic Region and
Sales by Geographic Region and Product Category | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Sales by Geographic Region and Product Category | NOTE 9: SALES BY GEOGRAPHIC REGION AND PRODUCT CATEGORY Revenues by geographical region are as follows(in thousands): January 2, 2016 December 27, 2014 Revenues by geography: Americas $ 12,318 $ 12,781 Europe 677 686 Asia Pacific and Africa 355 531 Middle East 414 355 $ 13,764 $ 14,353 Approximately 93% of the Americas revenue in fiscal 2015 and fiscal 2014 is attributable to the United States. All of the Companys assets are located in the United States. Net sales by major product category (in thousands): January 2, 2016 December 27, 2014 Frozen Desserts $ 3,866 $ 4,386 Cheeses 9,311 9,446 Frozen Foods 587 521 $ 13,764 $ 14,353 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jan. 02, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 10: SUBSEQUENT EVENTS On January 6, 2016, the Company entered into a loan agreement with David Mintz, Chairman of the Board of Directors and Chief Executive Officer of the Company, evidenced by a promissory note, whereby Mr. Mintz agreed to loan the Company $500 until December 31, 2017. The loan will bear interest at 5% per annum commencing March 31, 2016 on a quarterly basis without compounding. The loan may be prepaid in whole or in part at any time without premium or penalty. The loan is convertible into shares of the Companys Common Stock at a conversion price of $4.01 per share, the closing price of the Companys Common Stock on the NYSE MKT on the date the promissory note was entered into. In any event of default, as defined in the promissory note, without any action on the part of Mr. Mintz, the interest rate will increase to 12% per annum and the entire principal and interest balance under the loan, and all other obligations of the Company under the loan, will be immediately due and payable, and Mr. Mintz will be entitled to seek and institute any and all remedies available to him. |
Description of the Business a17
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business |
Operating Segments | Operating Segments. |
Fiscal Year | Fiscal Year |
Estimates and Uncertainties | Estimates and Uncertainties |
Revenue Recognition | Revenue Recognition |
Concentration of Credit/Sales Risk | Concentration of Credit/Sales Risk The Company performs ongoing evaluations of its customers financial condition and does not require collateral. Management feels that credit risk beyond the established allowances at January 2, 2016 is limited. During the fiscal years ended January 2, 2016 and December 27, 2014, the Company derived approximately 83% of its net sales domestically. The remaining sales in both periods were exports to foreign countries. The accounts receivable balance of one customer represented approximately 9% of total accounts receivable at January 2, 2016, and one customer represented 16% of total accounts receivable at December 27, 2014. In addition, a significant portion of the Companys sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 44% and 43% of the Companys net sales for the fiscal years ended January 2, 2016 and December 27, 2014. |
Accounts Receivable | Accounts Receivable - |
Deferred Revenue and Deferred Costs | Deferred Revenue and Deferred Costs |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Inventories | Inventories The Company purchased approximately 24% and 26% of its finished products from one supplier and 29% and 28% of its finished products from another supplier during the periods ended January 2, 2016 and December 27, 2014, respectively. |
Income Taxes | Income Taxes |
Stock-based Compensation | Stock-based compensation Compensation Stock Compensation |
Net Loss Per Share | Net Loss Per Share Fiscal Year Ended January 2, 2016 Fiscal Year Ended December 27, 2014 Net loss, numerator, basic and diluted computation $ (643 ) $ (163 ) Weighted average shares - denominator basic computation 5,154 5,154 Effect of dilutive stock options - - Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Net loss per common share: Basic and diluted $ (0.12 ) $ (0.03 ) |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Freight Costs | Freight Costs |
Advertising Costs | Advertising Costs |
Product Development Costs | Product Development Costs - |
Recent Accounting Pronouncements | Recent Accounting Pronouncements - In November 2015, the FASB issued guidance that eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. This amendment is effective for the Company for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company has not yet adopted this guidance but does not expect the adoption of this guidance will have a material impact on its financial statements and related disclosures. In July 2015, the FASB issued guidance which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling pricings in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of this guidance will have a material impact on its financial statements and related disclosures. In 2015, the FASB issued an accounting standards update which deferred the effective date of ASU 2014-09 for all entities by one year. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the requirements of this update and has not yet determined its impact on its financial statements. In August, 2014, the FASB issued guidance that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entitys ability to continue as a going concern. If such conditions or events exist, disclosures are required that enable users of the financial statements to understand the nature of the conditions or events, managements evaluation of the circumstances and managements plans to mitigate the conditions or events that raise substantial doubt about the entitys ability to continue as a going concern. The Company will be required to perform an annual assessment of its ability to continue as a going concern when this standard becomes effective for it for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016; however, the adoption of this guidance is not expected to impact the Companys financial position, results of operations or cash flows. |
Description of the Business a18
Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Computation of Basic and Diluted Loss Per Share | Fiscal Year Ended January 2, 2016 Fiscal Year Ended December 27, 2014 Net loss, numerator, basic and diluted computation $ (643 ) $ (163 ) Weighted average shares - denominator basic computation 5,154 5,154 Effect of dilutive stock options - - Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Net loss per common share: Basic and diluted $ (0.12 ) $ (0.03 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: January 2, 2016 December 27, 2014 Finished products $ 1,007 $ 1,290 Raw materials and packaging 466 562 $ 1,473 $ 1,852 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following: January 2, 2016 December 27, 2014 Automobile $ 29 $ 29 29 29 Less: accumulated depreciation (8 ) (2 ) Fixed assets, net $ 21 $ 27 |
Stock Options (Tables)
Stock Options (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule for Stock Option Activity | The following is a summary of stock option activity from December 27, 2014 to January 2, 2016: NON-QUALIFIED OPTIONS Shares Weighted Average Exercise Price ($) Outstanding at December 27, 2014 - - Granted 80,000 4.42 Exercised - - Outstanding at January 2, 2016 80,000 4.42 Exercisable at January 2, 2016 26,668 4.42 |
Schedule for Information of Stock Options Outstanding | The following table summarizes information about stock options outstanding at January 2, 2016: Range of Exercise Prices ($) Number Outstanding Weighted Average Remaining Life (in years) Weighted Average Exercise Price($) Number Exercisable 4.39-4.46 80,000 4.31 4.42 26,668 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (benefit) | The components of income tax benefit for the fiscal years ended January 2, 2016 and December 27, 2014 are as follows: January 2, 2016 December 27, 2014 Current: Federal $ (62 ) $ (53 ) State (16 ) (15 ) Total income tax benefit $ (78 ) $ (68 ) |
Schedule of Reconciliation Between The Expected Federal Tax Expense at Statutory Tax Rate | A reconciliation between the expected federal tax expense at the statutory tax rate of 34% and the Companys actual tax expense for the fiscal years ended January 2, 2016 and December 27, 2014 follows: January 2, 2016 December 27, 2014 Income tax expense computed at federal statutory rate $ (245 ) $ (77 ) State income taxes, net of federal income tax benefit 2 2 Permanent items 9 10 Change in federal valuation allowance 238 66 Reduction in unrecognized tax position (82 ) (69 ) $ (78 ) $ (68 ) |
Schedule of Deferred Tax Assets | Deferred tax assets for the fiscal years ended January 2, 2016 and December 27, 2014 consist of the following components: January 2, 2016 December 27, 2014 Allowance for doubtful accounts $ 114 $ 99 Inventory 31 93 Federal and state net operating loss 685 422 Other 39 2 Valuation allowance (869 ) (616 ) Deferred tax asset $ - $ - |
Schedule of Changes to Company's Uncertain Tax Positions | The following table indicates the changes to the Companys uncertain tax positions for the fiscal years ended January 2, 2016 and December 27, 2014: Balance at December 28, 2013 $ 178 Reduction due to the expiration of the statute of limitations and tax positions related to prior years (9 ) Balance at December 27, 2014 $ 169 Reduction due to the expiration of the statute of limitations and tax positions related to prior years (52 ) Balance at January 2, 2016 $ 117 |
Note Payable (Tables)
Note Payable (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Note Payable | The loan is collateralized by the underlying automobile. January 2, 2016 December 27, 2014 Note payable $ 21 $ 27 Less current maturity 5 5 Note payable, net of current maturity $ 16 $ 22 |
Schedule of Minimum Estimated Future Payments on Loan | Minimum estimated future payments on this loan as of January 2, 2016 are as follows: Fiscal Year Ending 2016 $ 5 2017 6 2018 6 2019 3 |
Sales by Geographic Region an24
Sales by Geographic Region and Product Category (Tables) | 12 Months Ended |
Jan. 02, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographical Region | Revenues by geographical region are as follows(in thousands): January 2, 2016 December 27, 2014 Revenues by geography: Americas $ 12,318 $ 12,781 Europe 677 686 Asia Pacific and Africa 355 531 Middle East 414 355 $ 13,764 $ 14,353 |
Summary of Net Sales by Major Product Category | Net sales by major product category (in thousands): January 2, 2016 December 27, 2014 Frozen Desserts $ 3,866 $ 4,386 Cheeses 9,311 9,446 Frozen Foods 587 521 $ 13,764 $ 14,353 |
Liquidity and Capital Resourc25
Liquidity and Capital Resources (Detail Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Dec. 27, 2014 | Dec. 28, 2013 | |
Cash and cash equivalents | $ 55 | $ 341 | $ 214 |
Net cash used in operating activities | (280) | 129 | |
Net loss | 643 | 163 | |
Decrease in accounts payable and accrued expenses | 184 | (364) | |
Partially offset by decreases in accounts receivable | 131 | ||
Partially offset by decrease in inventory | 379 | ||
Net cash flows used in financing activities | 6 | $ 2 | |
David Mintz [Member] | January 6, 2016 [Member] | |||
Loan payable | $ 500,000 | ||
Loan payable due date | Dec. 31, 2017 | ||
Loan payable commencing date | Mar. 31, 2016 | ||
Loan payable interest rate | 5.00% | ||
Loan convertible into common stock at conversion price per share | $ 4.01 |
Description of the Business a26
Description of the Business and Summary of Significant Accounting Policies (Detail Narrative) $ in Thousands | Jan. 02, 2016USD ($) | Jan. 02, 2016USD ($)Segmentshares | Dec. 27, 2014USD ($)shares | Dec. 27, 2014 |
Number of business segments | Segment | 1 | |||
Cash, FDIC insured amount | $ 250 | $ 250 | ||
Percentage of tax benefits likelihood | greater than 50 percent | |||
Anti-dilutive securities | shares | 80,000 | 0 | ||
Freight costs | $ 857 | $ 959 | ||
Advertising costs | 236 | 265 | ||
Product development costs | $ 523 | $ 641 | ||
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member] | ||||
Percentage of concentration risk | 83.00% | |||
Sales Revenue, Goods, Net [Member] | Distributors As Group Member | ||||
Percentage of concentration risk | 44.00% | 43.00% | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||
Percentage of concentration risk | 9.00% | 16.00% | ||
Finished Products [Member] | Supplier Concentration Risk [Member] | Supplier One [Member] | ||||
Percentage of concentration risk | 24.00% | 26.00% | ||
Finished Products [Member] | Supplier Concentration Risk [Member] | Supplier Two [Member] | ||||
Percentage of concentration risk | 29.00% | 28.00% |
Description of the Business a27
Description of the Business and Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Accounting Policies [Abstract] | ||
Net loss-basic and diluted | $ (643) | $ (163) |
Weighted average shares - denominator basic computation | 5,154 | 5,154 |
Effect of dilutive stock options | ||
Weighted average shares, as adjusted - denominator diluted computation | 5,154 | 5,154 |
Net loss per common share: Basic and diluted | $ (0.12) | $ (0.03) |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Dec. 27, 2014 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,007 | $ 1,290 |
Raw materials and packaging | 466 | 562 |
Inventories, net | $ 1,473 | $ 1,852 |
Fixed Assets (Detail Narrative)
Fixed Assets (Detail Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 6 | $ 2 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Dec. 27, 2014 |
Fixed assets, gross | $ 29 | $ 29 |
Less: accumulated depreciation | (8) | (2) |
Fixed assets, net | 21 | 27 |
Automobiles [Member] | ||
Fixed assets, gross | $ 29 | $ 29 |
Stock Options (Details Narrativ
Stock Options (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 02, 2016 | Dec. 27, 2014 | Jun. 10, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option issued under award | 80,000 | ||
Options granted | 80,000 | ||
Expected dividends | 0.00% | ||
Expected term | 5 years | ||
Total unrecognized compensation cost of non-vested share-based awards | $ 94 | ||
Stock compensation expense | $ 113 | ||
Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting | 26,668 | ||
Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting | 26,666 | ||
Share-based Compensation Award, Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options vesting | 26,666 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 69.80% | ||
Risk-free rate | 1.30% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 71.40% | ||
Risk-free rate | 1.80% | ||
Equity Incentive Plan 2014 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock available for awards | 250,000 | ||
Equity Incentive Plan 2014 [Member] | Non Qualified Stock Option Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option issued under award | 80,000 |
Stock Options - Schedule for St
Stock Options - Schedule for Stock Option Activity (Details) | 12 Months Ended |
Jan. 02, 2016$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares Outstanding Beginning Balance | shares | |
Shares Granted | shares | 80,000 |
Shares Exercised | shares | |
Shares Outstanding Ending Balance | shares | 80,000 |
Shares Exercisable | shares | 26,668 |
Weighted Average Exercise Price Outstanding Beginning Balance | $ / shares | |
Weighted Average Exercise Price Granted | $ / shares | $ 4.42 |
Weighted Average Exercise Price Exercised | $ / shares | |
Weighted Average Exercise Price Outstanding Ending Balance | $ / shares | $ 4.42 |
Weighted Average Exercise Price Exercisable | $ / shares | $ 4.42 |
Stock Options - Schedule for In
Stock Options - Schedule for Information of Stock Options Outstanding (Details) | 12 Months Ended |
Jan. 02, 2016$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Range of Exercise Prices lower limit | $ 4.39 |
Range of Exercise Prices upper limit | $ 4.46 |
Number Outstanding | shares | 80,000 |
Weighted Average Remaining Life | 4 years 3 months 22 days |
Weighted Average Exercise Price | $ 4.42 |
Number Exercisable | shares | 26,668 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016USD ($)ft² | Dec. 27, 2014USD ($) | |
Leases Details Narrative | ||
Area of square foot | ft² | 6,200 | |
Original lease agreement expire date | Jul. 1, 1999 | |
Rent expense | $ | $ 82 | $ 80 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Operating loss carry forwards expiration | begin to expire in 2032 | |
Federal tax expense, statutory tax rate | 34.00% | 34.00% |
Increase in valuation allowance | $ 253 | |
Percentage of tax benefits likelihood | greater than 50 percent | |
Accrued interest and penalties related to uncertain tax positions | $ 2 | $ 32 |
Uncertain tax positions that would affect the effective tax rate | 119 | |
Federal [Member] | ||
Net operating loss carryforwards | 1,860 | |
State [Member] | ||
Net operating loss carryforwards | $ 2,664 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | ||
Current Federal | $ (62) | $ (53) |
Current State | (16) | (15) |
Total income tax (benefit) expense | $ (78) | $ (68) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation Between The Expected Federal Tax Expense at Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense computed at federal statutory rate | $ (245) | $ (77) |
State income taxes, net of federal income tax benefit | 2 | 2 |
Permanent items | 9 | 10 |
Change in federal valuation allowance | 238 | 66 |
Reduction in unrecognized tax position | (82) | (69) |
Total income tax (benefit) expense | $ (78) | $ (68) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Dec. 27, 2014 |
Income Tax Disclosure [Abstract] | ||
Allowance for doubtful accounts | $ 114 | $ 99 |
Inventory | 31 | 93 |
Federal and state net operating loss | 685 | 422 |
Other | 39 | 2 |
Valuation allowance | $ (869) | $ (616) |
Deferred tax asset |
Income Taxes - Schedule of Chan
Income Taxes - Schedule of Changes to Company's Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 169 | $ 178 |
Reduction due to the expiration of the statute of limitations | (52) | (9) |
Ending Balance | $ 117 | $ 169 |
Note Payable (Details Narrative
Note Payable (Details Narrative) $ in Thousands | 1 Months Ended | ||
Sep. 30, 2014USD ($)Installment | Jan. 02, 2016USD ($) | Dec. 27, 2014USD ($) | |
Note payable, principle amount | $ 21 | $ 27 | |
Auto Loan [Member] | |||
Note payable, principle amount | $ 29 | ||
Monthly payments | Installment | 60 | ||
Frequency of periodic payment | monthly | ||
Periodic payment on note payable | requires 60 monthly payments of $0.535 through August 2019 | ||
Fixed interest rate | 4.64% |
Note Payable - Schedule of Note
Note Payable - Schedule of Note Payable (Details) - USD ($) $ in Thousands | Jan. 02, 2016 | Dec. 27, 2014 |
Debt Disclosure [Abstract] | ||
Note payable | $ 21 | $ 27 |
Less current maturity | 5 | 5 |
Note payable, net of current maturity | $ 16 | $ 22 |
Note Payable - Schedule of Mini
Note Payable - Schedule of Minimum Estimated Future Payments on Loan (Details) $ in Thousands | Jan. 02, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 5 |
2,017 | 6 |
2,018 | 6 |
2,019 | $ 3 |
Sales by Geographic Region an43
Sales by Geographic Region and Product Category (Details Narrative) | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Americas [Member] | ||
Percentage of revenue | 93.00% | 93.00% |
Sales by Geographic Region an44
Sales by Geographic Region and Product Category - Schedule of Revenues by Geographical Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues by geography | $ 13,764 | $ 14,353 |
Americas [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues by geography | 12,318 | 12,781 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues by geography | 677 | 686 |
Asia Pacific And Africa [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues by geography | 355 | 531 |
Middle East [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues by geography | $ 414 | $ 355 |
Sales by Geographic Region an45
Sales by Geographic Region and Product Category - Schedule of Net Sales by Major Product Category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 02, 2016 | Dec. 27, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 13,764 | $ 14,353 |
Frozen Desserts [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 3,866 | 4,386 |
Cheeses [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 9,311 | 9,446 |
Frozen Foods [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 587 | $ 521 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - David Mintz [Member] $ / shares in Units, $ in Thousands | Jan. 06, 2016USD ($)$ / shares |
Loan payable | $ | $ 500 |
Loan payable due date | Dec. 31, 2017 |
Loan payable interest rate | 5.00% |
Loan payable commencing date | Mar. 31, 2016 |
Loan convertible into common stock at conversion price per share | $ / shares | $ 4.01 |
Loan payable interest rate, maximum | 12.00% |