Cover
Cover - shares | 3 Months Ended | |
Apr. 02, 2022 | May 16, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Apr. 2, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-9009 | |
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 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | TOFB | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,153,706 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash | $ 1,589 | $ 1,698 |
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $310 and $435, respectively | 1,402 | 1,336 |
Inventories | 2,412 | 1,874 |
Prepaid expenses and other current assets | 45 | 98 |
Total current assets | 5,448 | 5,006 |
Operating lease right-of-use assets | 175 | 203 |
Deferred tax assets | 110 | 112 |
Other assets | 19 | 21 |
Total assets | 5,752 | 5,342 |
Current liabilities: | ||
SBA loan payable | 165 | |
Income taxes payable | 62 | 46 |
Accounts payable | 369 | 122 |
Accrued expenses | 484 | 347 |
Total current liabilities | 915 | 680 |
Operating lease liabilities | 65 | 95 |
Total liabilities | 980 | 775 |
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 | 207 | 207 |
Retained earnings | 4,513 | 4,308 |
Total stockholders’ equity | 4,772 | 4,567 |
Total liabilities and stockholders’ equity | $ 5,752 | $ 5,342 |
Condensed Balance Sheets (Una_2
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts and sales promotions on accounts receivable | $ 310 | $ 435 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
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 |
Condensed Statements of Income
Condensed Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 3,463 | $ 3,150 |
Cost of sales | 2,606 | 2,149 |
Gross profit | 857 | 1,001 |
Operating expenses: | ||
Selling and warehousing | 264 | 323 |
Marketing | 156 | 70 |
Product development costs | 40 | 39 |
General and administrative | 337 | 447 |
Total operating expenses | 797 | 879 |
Income from operations | 60 | 122 |
Other income: | ||
SBA loan forgiveness | 165 | |
Income before interest expense and income taxes | 225 | 122 |
Interest expense | 6 | |
Income before income taxes | 225 | 116 |
Income tax expense | 20 | 36 |
Net income | $ 205 | $ 80 |
Weighted average common shares outstanding: | ||
Basic | 5,154 | 5,154 |
Diluted | 5,154 | 5,436 |
Earnings per common share: | ||
Basic | $ 0.04 | $ 0.02 |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning Balance at Jan. 02, 2021 | $ 52 | $ 207 | $ 3,569 | $ 3,828 |
Net income | 80 | 80 | ||
Ending Balance at Apr. 03, 2021 | 52 | 207 | 4,245 | 4,504 |
Beginning Balance at Jan. 01, 2022 | 52 | 207 | 4,308 | 4,567 |
Net income | 205 | 205 | ||
Ending Balance at Apr. 02, 2022 | $ 52 | $ 207 | $ 4,513 | $ 4,772 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Statement of Cash Flows [Abstract] | ||
Cash (used in) provided by operating activities, net | $ (109) | $ 987 |
Net (decrease) increase in cash | (109) | 987 |
Cash at beginning of period | 1,698 | 1,459 |
Cash at end of period | 1,589 | 2,446 |
Supplemental cash flow information: | ||
Income taxes paid |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1: Basis of Presentation The accompanying unaudited condensed financial information, in the opinion of management, reflects all adjustments (which include only normally recurring adjustments) necessary to present fairly the Company’s financial position, operating results and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations for the thirteen-week period ended April 2, 2022 are not necessarily indicative of the results to be expected for the full year or any other period. The Company’s fiscal year is either a fifty-two or fifty-three-week period which ends on the Saturday closest to December 31 st |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Apr. 02, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Note 2: Recently Issued Accounting Standards The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s balance sheets or statements of operations. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. The amendments in this Update require a new topic to be added (Topic 326) to the Accounting Standards Codification (“ASC”) and removes the thresholds that entities apply to measure credit losses on financial instruments measured at amortized cost, such as loans, trade receivables, reinsurance recoverables, and off-balance-sheet credit exposures, and held-to-maturity securities. Under current U.S. GAAP, entities generally recognize credit losses when it is probable that the loss has been incurred. The guidance under ASU 2016-13 will remove all current recognition thresholds and will require entities under the new current expected credit loss (“CECL”) model to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that an entity expects to collect over the instrument’s contractual life. The new CECL model is based upon expected losses rather than incurred losses. Additionally, the credit loss recognition guidance for available-for-sale securities is amended and will require that credit losses on such debt securities should be recognized as an allowance for credit losses rather than a direct write-down of amortized cost balance. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the effect that this new guidance will have on our financial statements and related disclosures. |
Inventories
Inventories | 3 Months Ended |
Apr. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3: Inventories Inventories consist of the following: Schedule of Inventories April 2, 2022 January 1, 2022 Finished products $ 1,440 $ 1,218 Raw materials and packaging 972 656 Inventories, net $ 2,412 $ 1,874 TOFUTTI BRANDS INC. NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4: Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Apr. 02, 2022 | |
Earnings per common share: | |
Earnings Per Share | Note 5: Earnings Per Share Fully diluted earnings per common share have been computed by dividing earnings by the weighted average number of common shares outstanding, which would account for a potential 282,486 shares to be issued upon conversion of a convertible note as of April 3, 2021. The convertible note for 282,486 shares was included in the calculation of fully diluted earnings for the thirteen weeks ended April 3, 2021. The note was repaid in full on December 22, 2021. The following table sets forth the computation of basic and diluted earnings per share: Schedule of Earnings Per Share, Basic and Diluted Thirteen Weeks Ended April 2, 2022 Thirteen Weeks Ended April 3, 2021 Net income, numerator, basic computation $ 205 $ 80 Interest expense — 6 Net income, numerator, diluted computation 205 86 Weighted average shares - denominator basic computation 5,154 5,154 Effect of convertible note — 282 Weighted average shares, as adjusted - denominator diluted computation 5,154 5,436 Earnings per common share: Basic $ 0.04 $ 0.02 Diluted $ 0.04 $ 0.02 TOFUTTI BRANDS INC. NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS |
Share Based Compensation
Share Based Compensation | 3 Months Ended |
Apr. 02, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share Based Compensation | Note 6: Share Based Compensation 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 2014 Plan made 250,000 |
Notes Payable
Notes Payable | 3 Months Ended |
Apr. 02, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 7: Notes Payable Small Business Administration (SBA) Loan On May 2, 2020 the Company received from the SBA a loan of $ 165 1 165 165 Related Party On January 6, 2016, David Mintz, the Company’s former Chairman and Chief Executive Officer, provided the Company with a loan of $ 500 1.77 25 500 25 |
Revenue
Revenue | 3 Months Ended |
Apr. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 8: Revenue Performance obligations relating to the delivery of food products are satisfied when the goods are shipped to the customer and net of all applicable discounts, as follows: Payment term discounts, off-invoice allowance, manufacturer chargeback, freight allowance, spoilage discounts, and product returns. Revenues by geographical region are as follows: Schedule of Revenue Thirteen Weeks Ended Thirteen Weeks Ended April 2, 2022 April 3, 2021 Americas $ 3,285 $ 2,979 Europe - 20 Asia Pacific and Africa - 94 Middle East 178 57 Revenues $ 3,463 $ 3,150 Approximately 90 91 Net sales by major product category: Summary of Net Sales by Major Product Category Thirteen Weeks Ended Thirteen Weeks Ended April 2, 2022 April 3, 2021 Frozen desserts and foods $ 547 $ 430 Vegan cheese products 2,916 2,720 Net sales $ 3,463 $ 3,150 |
Leases
Leases | 3 Months Ended |
Apr. 02, 2022 | |
Leases | |
Leases | Note 9: Leases The Company’s facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 20 95 112 Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease. The current portion of lease liabilities is included in accrued expenses on the condensed balance sheets. The Company’s lease agreements generally do not provide an implicit borrowing rate; therefore, an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. The Company used the incremental borrowing rate on December 29, 2018 of 5.5 TOFUTTI BRANDS INC. NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS ROU lease assets and lease liabilities for our operating leases were recorded in the balance sheet as follows: Schedule of ROU lease Assets and Liabilities For Operating Leases As of As of April 2, 2022 January 1, 2022 Operating lease right-of-use assets $ 175 $ 203 Current portion of lease liabilities 123 123 Operating lease liabilities 65 95 Total lease liability $ 188 $ 218 Weighted average remaining lease term (in years) 2.8 3.0 Weighted average discount rate 5.5 % 5.5 % Future lease payments included in the measurement of lease liabilities on the balance sheet as of April 2, 2022 are as follows: Schedule of Future Lease Payments As of April 2, 2022 2022 (remaining) $ 84 2023 110 Total future minimum lease payments 194 Present value adjustment 6 Total $ 188 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: Schedule of Inventories April 2, 2022 January 1, 2022 Finished products $ 1,440 $ 1,218 Raw materials and packaging 972 656 Inventories, net $ 2,412 $ 1,874 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Earnings per common share: | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: Schedule of Earnings Per Share, Basic and Diluted Thirteen Weeks Ended April 2, 2022 Thirteen Weeks Ended April 3, 2021 Net income, numerator, basic computation $ 205 $ 80 Interest expense — 6 Net income, numerator, diluted computation 205 86 Weighted average shares - denominator basic computation 5,154 5,154 Effect of convertible note — 282 Weighted average shares, as adjusted - denominator diluted computation 5,154 5,436 Earnings per common share: Basic $ 0.04 $ 0.02 Diluted $ 0.04 $ 0.02 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue | Revenues by geographical region are as follows: Schedule of Revenue Thirteen Weeks Ended Thirteen Weeks Ended April 2, 2022 April 3, 2021 Americas $ 3,285 $ 2,979 Europe - 20 Asia Pacific and Africa - 94 Middle East 178 57 Revenues $ 3,463 $ 3,150 |
Summary of Net Sales by Major Product Category | Net sales by major product category: Summary of Net Sales by Major Product Category Thirteen Weeks Ended Thirteen Weeks Ended April 2, 2022 April 3, 2021 Frozen desserts and foods $ 547 $ 430 Vegan cheese products 2,916 2,720 Net sales $ 3,463 $ 3,150 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 02, 2022 | |
Leases | |
Schedule of ROU lease Assets and Liabilities For Operating Leases | ROU lease assets and lease liabilities for our operating leases were recorded in the balance sheet as follows: Schedule of ROU lease Assets and Liabilities For Operating Leases As of As of April 2, 2022 January 1, 2022 Operating lease right-of-use assets $ 175 $ 203 Current portion of lease liabilities 123 123 Operating lease liabilities 65 95 Total lease liability $ 188 $ 218 Weighted average remaining lease term (in years) 2.8 3.0 Weighted average discount rate 5.5 % 5.5 % |
Schedule of Future Lease Payments | Future lease payments included in the measurement of lease liabilities on the balance sheet as of April 2, 2022 are as follows: Schedule of Future Lease Payments As of April 2, 2022 2022 (remaining) $ 84 2023 110 Total future minimum lease payments 194 Present value adjustment 6 Total $ 188 |
Schedule of Inventories (Detail
Schedule of Inventories (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,440 | $ 1,218 |
Raw materials and packaging | 972 | 656 |
Inventories, net | $ 2,412 | $ 1,874 |
Schedule of Earnings Per Share,
Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Earnings per common share: | ||
Net income, numerator, basic computation | $ 205 | $ 80 |
Interest expense | 6 | |
Net income, numerator, diluted computation | $ 205 | $ 86 |
Weighted average shares - denominator basic computation | 5,154 | 5,154 |
Effect of convertible note | 282 | |
Weighted average shares, as adjusted - denominator diluted computation | 5,154 | 5,436 |
Basic | $ 0.04 | $ 0.02 |
Diluted | $ 0.04 | $ 0.02 |
Earnings Per Share (Details Nar
Earnings Per Share (Details Narrative) | 3 Months Ended |
Apr. 03, 2021shares | |
Earnings per common share: | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 282,486 |
Share Based Compensation (Detai
Share Based Compensation (Details Narrative) | Apr. 02, 2022shares |
2014 Equity Incentive Plan [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Common stock available for awards | 250,000 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 02, 2020 | Jan. 06, 2016 | Apr. 02, 2022 | Jan. 01, 2022 | Jan. 02, 2021 | Dec. 22, 2021 |
Short-Term Debt [Line Items] | ||||||
Loan borrowed | $ 165 | |||||
Interest Expense, Debt | $ 25 | $ 25 | ||||
David Mintz [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Proceeds from Related Party Debt | $ 500 | |||||
David Mintz [Member] | Promissory Note [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Debt Instrument, Convertible, Conversion Price | $ 1.77 | |||||
Debt Instrument, Face Amount | $ 500 | |||||
Interest Payable | $ 25 | |||||
Paycheck Protection Program [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Proceeds from loan | $ 165 | |||||
Loan payable interest rate | 1.00% | |||||
Loan borrowed | $ 165 | |||||
SBA loan payable | $ 165 |
Schedule of Revenue (Details)
Schedule of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,463 | $ 3,150 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3,285 | 2,979 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 20 | |
Asia Pacific and Africa [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 94 | |
Middle East [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 178 | $ 57 |
Summary of Net Sales by Major P
Summary of Net Sales by Major Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 3,463 | $ 3,150 |
Frozen Desserts and Foods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 547 | 430 |
Vegan Cheese Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 2,916 | $ 2,720 |
Revenue (Details Narrative)
Revenue (Details Narrative) | 3 Months Ended | |
Apr. 02, 2022 | Apr. 03, 2021 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 90.00% | 91.00% |
Schedule of ROU lease Assets an
Schedule of ROU lease Assets and Liabilities For Operating Leases (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Leases | ||
Operating lease right-of-use assets | $ 175 | $ 203 |
Current portion of lease liabilities | 123 | 123 |
Operating lease liabilities | 65 | 95 |
Total lease liability | $ 188 | $ 218 |
Weighted average remaining lease term (in years) | 2 years 9 months 18 days | 3 years |
Weighted average discount rate | 5.50% | 5.50% |
Schedule of Future Lease Paymen
Schedule of Future Lease Payments (Details) - USD ($) $ in Thousands | Apr. 02, 2022 | Jan. 01, 2022 |
Leases | ||
2022 (remaining) | $ 84 | |
2023 | 110 | |
Total future minimum lease payments | 194 | |
Present value adjustment | (6) | |
Total | $ 188 | $ 218 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 02, 2022USD ($)ft² | Apr. 03, 2021USD ($) | Dec. 29, 2018 | |
Leases | |||
Area of Real Estate Property | ft² | 6,200 | ||
Payments for Rent | $ 20 | $ 20 | |
Outside warehouse expense | $ 95 | $ 112 | |
Incremental borrowing rate, percentage | 5.50% |