Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 31, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 4,794,953 | ||
Entity Common Stock, Shares Outstanding | 5,153,706 | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Firm ID | 339 | ||
Auditor Name | Mazars USA LLP | ||
Auditor Location | Edison, NJ |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Current assets: | ||
Cash | $ 1,072 | $ 1,698 |
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $495 and $435, respectively | 1,305 | 1,336 |
Inventories | 2,463 | 1,874 |
Prepaid expenses and other current assets | 80 | 98 |
Total current assets | 4,920 | 5,006 |
Operating lease right-of-use assets | 158 | 203 |
Finance lease right-of-use asset | 53 | |
Deferred tax assets | 367 | 112 |
Other assets | 19 | 21 |
Total assets | 5,517 | 5,342 |
Current liabilities: | ||
SBA loan payable | 165 | |
Income taxes payable | 41 | 46 |
Accounts payable | 684 | 122 |
Accrued expenses | 555 | 347 |
Financing lease liability, current portion | 15 | |
Total current liabilities | 1,295 | 680 |
Operating lease liabilities, net of current portion | 85 | 95 |
Finance lease liability, net of current portion | 39 | |
Total liabilities | 1,419 | 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 | 263 | 207 |
Retained earnings | 3,783 | 4,308 |
Total stockholders’ equity | 4,098 | 4,567 |
Total liabilities and stockholders’ equity | $ 5,517 | $ 5,342 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts and sales promotions on accounts receivable | $ 495 | $ 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 |
Statements of Operations
Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Income Statement [Abstract] | ||
Net sales | $ 12,827 | $ 12,590 |
Cost of sales | 10,485 | 9,248 |
Gross profit | 2,342 | 3,342 |
Operating expenses: | ||
Selling and warehousing | 1,147 | 1,206 |
Marketing | 564 | 281 |
Product development costs | 143 | 124 |
General and administrative | 1,404 | 1,489 |
Total operating expenses | 3,258 | 3,100 |
Income (loss) from operations | (916) | 242 |
SBA loan forgiveness | 165 | |
Income (loss) before interest expense and income taxes | (751) | 242 |
Interest expense | 2 | 25 |
Income (loss) before provision for income taxes | (753) | 217 |
(Benefit from) provision for income taxes | (228) | 74 |
Net income (loss) | $ (525) | $ 143 |
Weighted average common shares outstanding: | ||
Basic | 5,154 | 5,154 |
Diluted | 5,154 | 5,154 |
Net income (loss) per common share: | ||
Basic | $ (0.10) | $ 0.03 |
Diluted | $ (0.10) | $ 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 |
Beginning balance, value at Jan. 02, 2021 | $ 52 | $ 207 | $ 4,165 | $ 4,424 |
Balance, shares at Jan. 02, 2021 | 5,153,706 | |||
Net income (loss) | 143 | 143 | ||
Stock-based compensation | ||||
Ending balance, value at Jan. 01, 2022 | $ 52 | 207 | 4,308 | 4,567 |
Balance, shares at Jan. 01, 2022 | 5,153,706 | |||
Net income (loss) | (525) | (525) | ||
Stock-based compensation | 56 | 56 | ||
Ending balance, value at Dec. 31, 2022 | $ 52 | $ 263 | $ 3,783 | $ 4,098 |
Balance, shares at Dec. 31, 2022 | 5,153,706 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (525) | $ 143 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||
Depreciation | 10 | |
Stock-based compensation | 56 | |
SBA loan forgiveness | (165) | |
Non-cash change in right of use assets and lease liabilities | (12) | (7) |
Amortization of finance lease right-of-use asset | 9 | |
Loss on sale and disposal of equipment | 75 | |
Provision for bad debts and sales promotions | 15 | 20 |
Deferred taxes | (255) | (29) |
Change in assets and liabilities: | ||
Accounts receivable | 16 | 722 |
Inventories | (589) | 123 |
Prepaid expenses | 18 | (10) |
Other assets | 2 | (2) |
Income taxes payable | (5) | (71) |
Accounts payable and accrued expenses | 819 | (285) |
Net cash flows (used in) provided by operating activities | (616) | 689 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from sale of equipment | 50 | |
Net cash flows provided by investing activities | 50 | |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES: | ||
Payments of finance lease obligations | (10) | |
Payment of convertible note payable | (500) | |
Net cash flows (used in) provided by financing activities | (10) | (500) |
NET CHANGE IN CASH | (626) | 239 |
CASH AT BEGINNING OF YEAR | 1,698 | 1,459 |
CASH AT END OF YEAR | 1,072 | 1,698 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid | 180 | |
Interest paid - related party | 2 | 25 |
Supplemental schedule of non-cash investing and financing activities: | ||
Lease assets acquired in exchange for lease liabilities | $ 62 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Operating Segments Fiscal Year Estimates and Uncertainties Accounts Receivable Inventories The Company purchased approximately 49 50 14 11 Equipment, net Revenue Recognition Under ASC 606, revenue is recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). In evaluating our contracts with our customers under ASC 606, we have determined that there is no future performance obligation once delivery has occurred. The Company primarily sells plant-based, dairy free vegan cheeses and frozen desserts. The Company recognizes revenue when control over the products transfers to its customers, deemed to be the performance obligation, which generally occurs upon delivery or shipment of the products. The Company accounts for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. The Company bases these estimates of expected amounts principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs in accordance with U.S. GAAP and our inventory policies. The Company generally does not have any unbilled receivables at the end of a period. Concentration of Credit/Sales Risk 250 The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management believes that credit risk beyond the established allowances at December 31, 2022 is limited. During the fiscal years ended December 31, 2022 and January 1, 2022, the Company derived approximately 88 87 47 55 45 45 Income Taxes likelihood greater than 50 percent Earnings Per Share SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Net income (loss), numerator, basic computation $ (525 ) $ 143 Net income (loss), numerator, diluted computation $ (525 ) $ 143 Weighted average shares - denominator basic computation 5,154 5,154 Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Earnings (loss) per common share: Basic $ (0.10 ) $ 0.03 Diluted $ (0.10 ) $ 0.03 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) The following are securities excluded from weighted-average shares used to calculate diluted earnings (loss) per common share, as the result of including them to calculate diluted EPS is anti-dilutive: SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Shares subject to outstanding common stock options 250,000 - Shares subject to outstanding convertible note (repaid in full in fiscal year 2021) - 282,486 Shares subject to outstanding, shares - 282,486 Fair Value of Financial Instruments Small Business Administration (SBA) Loan 165 1 165 May 2, 2022 165 Freight Costs 1,159 1,037 Advertising Costs 251 209 Product Development Costs 143 124 Stock-Based Compensation We account for our stock-based compensation under ASC 718 “Compensation - Stock Compensation” using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the shorter of the service period or the vesting period of the stock-based compensation. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Determining the fair value of stock-based compensation at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based compensation represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Recent Accounting Pronouncements 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, 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. As the Company is a smaller reporting company, the ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of ASU 2016-13 is not expected to have a material impact on our consolidated financial statements. TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 2: INVENTORIES Inventories consist of the following: SCHEDULE OF INVENTORIES December 31, 2022 January 1, 2022 Finished products $ 1,387 $ 1,218 Raw materials and packaging 1,076 656 Inventories, net $ 2,463 $ 1,874 |
EQUIPMENT
EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
EQUIPMENT | NOTE 3: EQUIPMENT During September 2021, the Company sold manufacturing equipment with a cost of $ 102 15 50 75 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 4: NOTES PAYABLE Small Business Administration (SBA) Loan On May 2, 2020 the Company received from the SBA a loan of $ 165 1 165 165 as SBA loan forgiveness on the statement of operations. Related Party On January 6, 2016, David Mintz, the Company’s former Chairman and Chief Executive, provided the Company with a loan of $ 500 1.77 0 25 500 25 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 5: STOCK-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. Such grants can be, but are not limited to, options, stock appreciation rights, restricted stock, performance grants, stock bonuses, and any other type of award that is consistent with the purposes of the 2014 Plan. Employees and officers of the Company are eligible to receive incentive stock options while corporate directors are only eligible to receive non-qualified options. The 2014 Plan made 250,000 250,000 0 250,000 0.95 83,333 83,333 83,334 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) The following is a summary of stock option activity from January 1, 2022 to December 31, 2022: SCHEDULE OF STOCK OPTION ACTIVITY NON-QUALIFIED OPTIONS Shares Weighted Average Exercise Price ($) Outstanding at January 1, 2022 — — Granted 250,000 0.95 Exercised — — Outstanding at December 31, 2022 250,000 0.95 Exercisable at December 31, 2022 83,333 0.95 The following table summarizes information about stock options outstanding at December 31, 2022: SCHEDULE OF INFORMATION ABOUT STOCK OPTIONS Range of Exercise Prices ($) Number Outstanding Weighted Average Remaining Life (in years) Weighted Average Exercise Price($) Number Exercisable $ 0.95 250,000 5.00 $ 0.95 83,333 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 2022, 250,000 83,333 83,333 83,334 82.65 3.79 0 five years As of December 31, 2022, the intrinsic value of the options outstanding and exercisable options was $ 60 20 105 56 250,000 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 6: 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 DISAGGREGATION REVENUE December 31, 2022 January 1, 2022 Revenues by geography: Americas $ 12,110 $ 11,864 Europe 170 183 Middle East 494 334 Asia Pacific and Africa 53 209 Revenues $ 12,827 $ 12,590 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) Approximately 88 87 Net sales by major product category: December 31, 2022 January 1, 2022 Cheeses $ 10,951 $ 10,761 Frozen Desserts and Foods 1,876 1,829 Revenues $ 12,827 $ 12,590 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
LEASES | NOTE 7: LEASES The Company’s facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 86 79 363 459 10 35 Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of approximately two to four years. The Company does not have the option to terminate the leases early. 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 balance sheets. Under Topic 842, finance lease cost includes amortization, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. The Company has a finance lease consisting of a copier lease with a term of four years. The standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of Topic 842, the Company has combined the lease and non-lease components in determining the lease liabilities and ROU assets. 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 rates on of between 5.5 6.5 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 December 31, 2022 January 1, 2022 Operating lease right-of-use assets $ 158 $ 203 Current portion of lease liabilities 74 123 Operating lease liabilities, net of current portion 85 95 Total lease liabilities $ 159 $ 218 Weighted average remaining lease term (in years) 2.1 3.0 Weighted average discount rate 5.5 % 5.5 % TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) ROU lease asset and lease liability for our finance lease were recorded in the balance sheet as follows: SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR FINANCE LEASES As of As of December 31, 2022 January 1, 2022 Finance lease right-of-use asset $ 53 $ - Current portion of lease liabilities 15 - Operating lease liabilities, net of current portion 39 - Total lease liabilities $ 54 $ - Weighted average remaining lease term (in years) 3.4 - Weighted average discount rate 6.5 % - % Future lease payments included in the measurement of lease liabilities on the balance sheet as of December 31, 2022, for the following three fiscal years and thereafter are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS Operating lease liabilities Finance lease liability Total 2023 $ 81 $ 17 $ 98 2024 81 17 98 2025 7 17 24 2026 - 8 8 Total future minimum lease payments 169 59 228 Present value adjustment (10 ) (5 ) (15 ) Total $ 159 $ 54 $ 213 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 8: INCOME TAXES The components of income tax expense for the fiscal years ended December 31, 2022 and January 1, 2022 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) December 31, 2022 January 1, 2022 Current: Federal $ - $ 64 State 26 39 26 103 Deferred: Federal (190 ) (22 ) State (64 ) (7 ) (254 ) (29 ) Total income tax (benefit) expense $ (228 ) $ 74 A reconciliation between the expected federal tax expense at the statutory tax rate of 21 SCHEDULE OF RECONCILIATION BETWEEN THE EXPECTED FEDERAL TAX EXPENSE AT STATUTORY TAX RATE December 31, 2022 January 1, 2022 Federal income tax $ (157 ) $ 46 State income taxes, net of federal income tax benefit (64 ) 18 Nontaxable forgiveness of PPP loan (35 ) - Permanent items 2 3 Other 26 7 Total income tax expense $ (228 ) $ 74 Deferred tax assets for the fiscal years ended December 31, 2022 and January 1, 2022 consist of the following components: SCHEDULE OF DEFERRED TAX ASSETS December 31, January 2, Allowance for doubtful accounts $ 105 $ 88 Right of use asset (59 ) (57 ) Lease liabilities 60 61 Inventory 1 1 Net operating loss carryforward 189 - Stock options 16 - Research and development 36 - Fixed assets 19 19 Deferred tax asset, net $ 367 $ 112 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) At December 31, 2022 the Company had $ 786 673 The Company will recognize a tax provision in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent The following table indicates the changes to the Company’s uncertain tax positions for the fiscal years ended December 31, 2022 and January 1, 2022: SCHEDULE OF CHANGES TO COMPANY'S UNCERTAIN TAX POSITIONS Balance at January 2, 2021 $ 172 Increase due to reserves and tax positions related to current year 8 Balance at January 1, 2022 $ 180 Increase due to reserves and tax positions related to current year 26 Balance at December 31, 2022 $ 206 The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. The amount of uncertain tax positions that would affect the effective tax rate if they were recognized is $ 206 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 9: COMMITMENTS AND CONTINGENCIES The Company sells its products throughout the United States and in approximately twelve foreign countries and may be impacted by public health crises beyond its control. This could disrupt its operations and negatively impact sales of its products. The Company’s customers, suppliers and co-packers may experience similar disruption. In December 2019, a novel strain of the Coronavirus, COVID-19, was reported to have surfaced in Wuhan, China, which has evolved into a pandemic. This situation and preventative or protective actions that governments have taken to counter the effects of the pandemic have resulted in a period of business disruption, including delays in shipments of products and raw materials. To the extent the impact of COVID-19 continues or worsens, the demand for the Company’s products may be negatively impacted, and it and its co-packers may have difficulty obtaining the materials necessary for the production of its products. In addition, the production facilities of the Company’s co-packers may be closed for sustained periods of time and industry-wide shipment of products may be negatively impacted. COVID-19 has also impacted the Company’s sales efforts as its ability to make sales calls is constrained. The Company’s ability to promote sales through promotional activities has also been constrained as many supermarkets are understaffed and unable to change pricing for items in stock, resulting in the cancelation of all sales promotional discounts for the foreseeable future. The length and severity of the pandemic could also affect the Company’s regular sales, which could in turn result in reduced sales and a lower gross margin. |
DESCRIPTION OF THE BUSINESS A_2
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business |
Operating Segments | Operating Segments |
Fiscal Year | Fiscal Year |
Estimates and Uncertainties | Estimates and Uncertainties |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories The Company purchased approximately 49 50 14 11 |
Equipment, net | Equipment, net |
Revenue Recognition | Revenue Recognition Under ASC 606, revenue is recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). In evaluating our contracts with our customers under ASC 606, we have determined that there is no future performance obligation once delivery has occurred. The Company primarily sells plant-based, dairy free vegan cheeses and frozen desserts. The Company recognizes revenue when control over the products transfers to its customers, deemed to be the performance obligation, which generally occurs upon delivery or shipment of the products. The Company accounts for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. The Company bases these estimates of expected amounts principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs in accordance with U.S. GAAP and our inventory policies. The Company generally does not have any unbilled receivables at the end of a period. |
Concentration of Credit/Sales Risk | Concentration of Credit/Sales Risk 250 The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management believes that credit risk beyond the established allowances at December 31, 2022 is limited. During the fiscal years ended December 31, 2022 and January 1, 2022, the Company derived approximately 88 87 47 55 45 45 |
Income Taxes | Income Taxes likelihood greater than 50 percent |
Earnings Per Share | Earnings Per Share SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Net income (loss), numerator, basic computation $ (525 ) $ 143 Net income (loss), numerator, diluted computation $ (525 ) $ 143 Weighted average shares - denominator basic computation 5,154 5,154 Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Earnings (loss) per common share: Basic $ (0.10 ) $ 0.03 Diluted $ (0.10 ) $ 0.03 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) The following are securities excluded from weighted-average shares used to calculate diluted earnings (loss) per common share, as the result of including them to calculate diluted EPS is anti-dilutive: SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Shares subject to outstanding common stock options 250,000 - Shares subject to outstanding convertible note (repaid in full in fiscal year 2021) - 282,486 Shares subject to outstanding, shares - 282,486 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Small Business Administration (SBA) Loan | Small Business Administration (SBA) Loan 165 1 165 May 2, 2022 165 |
Freight Costs | Freight Costs 1,159 1,037 |
Advertising Costs | Advertising Costs 251 209 |
Product Development Costs | Product Development Costs 143 124 |
Stock-Based Compensation | Stock-Based Compensation We account for our stock-based compensation under ASC 718 “Compensation - Stock Compensation” using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the shorter of the service period or the vesting period of the stock-based compensation. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Determining the fair value of stock-based compensation at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based compensation represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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, 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. As the Company is a smaller reporting company, the ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of ASU 2016-13 is not expected to have a material impact on our consolidated financial statements. TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) |
DESCRIPTION OF THE BUSINESS A_3
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED | SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Net income (loss), numerator, basic computation $ (525 ) $ 143 Net income (loss), numerator, diluted computation $ (525 ) $ 143 Weighted average shares - denominator basic computation 5,154 5,154 Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Earnings (loss) per common share: Basic $ (0.10 ) $ 0.03 Diluted $ (0.10 ) $ 0.03 |
SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES | The following are securities excluded from weighted-average shares used to calculate diluted earnings (loss) per common share, as the result of including them to calculate diluted EPS is anti-dilutive: SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Shares subject to outstanding common stock options 250,000 - Shares subject to outstanding convertible note (repaid in full in fiscal year 2021) - 282,486 Shares subject to outstanding, shares - 282,486 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORIES | Inventories consist of the following: SCHEDULE OF INVENTORIES December 31, 2022 January 1, 2022 Finished products $ 1,387 $ 1,218 Raw materials and packaging 1,076 656 Inventories, net $ 2,463 $ 1,874 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SCHEDULE OF STOCK OPTION ACTIVITY | The following is a summary of stock option activity from January 1, 2022 to December 31, 2022: SCHEDULE OF STOCK OPTION ACTIVITY NON-QUALIFIED OPTIONS Shares Weighted Average Exercise Price ($) Outstanding at January 1, 2022 — — Granted 250,000 0.95 Exercised — — Outstanding at December 31, 2022 250,000 0.95 Exercisable at December 31, 2022 83,333 0.95 |
SCHEDULE OF INFORMATION ABOUT STOCK OPTIONS | The following table summarizes information about stock options outstanding at December 31, 2022: SCHEDULE OF INFORMATION ABOUT STOCK OPTIONS Range of Exercise Prices ($) Number Outstanding Weighted Average Remaining Life (in years) Weighted Average Exercise Price($) Number Exercisable $ 0.95 250,000 5.00 $ 0.95 83,333 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATION REVENUE | Revenues by geographical region are as follows: SCHEDULE OF DISAGGREGATION REVENUE December 31, 2022 January 1, 2022 Revenues by geography: Americas $ 12,110 $ 11,864 Europe 170 183 Middle East 494 334 Asia Pacific and Africa 53 209 Revenues $ 12,827 $ 12,590 Net sales by major product category: December 31, 2022 January 1, 2022 Cheeses $ 10,951 $ 10,761 Frozen Desserts and Foods 1,876 1,829 Revenues $ 12,827 $ 12,590 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2022 January 1, 2022 Operating lease right-of-use assets $ 158 $ 203 Current portion of lease liabilities 74 123 Operating lease liabilities, net of current portion 85 95 Total lease liabilities $ 159 $ 218 Weighted average remaining lease term (in years) 2.1 3.0 Weighted average discount rate 5.5 % 5.5 % |
SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR FINANCE LEASES | ROU lease asset and lease liability for our finance lease were recorded in the balance sheet as follows: SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR FINANCE LEASES As of As of December 31, 2022 January 1, 2022 Finance lease right-of-use asset $ 53 $ - Current portion of lease liabilities 15 - Operating lease liabilities, net of current portion 39 - Total lease liabilities $ 54 $ - Weighted average remaining lease term (in years) 3.4 - Weighted average discount rate 6.5 % - % |
SCHEDULE OF FUTURE LEASE PAYMENTS | Future lease payments included in the measurement of lease liabilities on the balance sheet as of December 31, 2022, for the following three fiscal years and thereafter are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS Operating lease liabilities Finance lease liability Total 2023 $ 81 $ 17 $ 98 2024 81 17 98 2025 7 17 24 2026 - 8 8 Total future minimum lease payments 169 59 228 Present value adjustment (10 ) (5 ) (15 ) Total $ 159 $ 54 $ 213 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) | The components of income tax expense for the fiscal years ended December 31, 2022 and January 1, 2022 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) December 31, 2022 January 1, 2022 Current: Federal $ - $ 64 State 26 39 26 103 Deferred: Federal (190 ) (22 ) State (64 ) (7 ) (254 ) (29 ) Total income tax (benefit) expense $ (228 ) $ 74 |
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 21 SCHEDULE OF RECONCILIATION BETWEEN THE EXPECTED FEDERAL TAX EXPENSE AT STATUTORY TAX RATE December 31, 2022 January 1, 2022 Federal income tax $ (157 ) $ 46 State income taxes, net of federal income tax benefit (64 ) 18 Nontaxable forgiveness of PPP loan (35 ) - Permanent items 2 3 Other 26 7 Total income tax expense $ (228 ) $ 74 |
SCHEDULE OF DEFERRED TAX ASSETS | Deferred tax assets for the fiscal years ended December 31, 2022 and January 1, 2022 consist of the following components: SCHEDULE OF DEFERRED TAX ASSETS December 31, January 2, Allowance for doubtful accounts $ 105 $ 88 Right of use asset (59 ) (57 ) Lease liabilities 60 61 Inventory 1 1 Net operating loss carryforward 189 - Stock options 16 - Research and development 36 - Fixed assets 19 19 Deferred tax asset, net $ 367 $ 112 |
SCHEDULE OF CHANGES TO COMPANY'S UNCERTAIN TAX POSITIONS | The following table indicates the changes to the Company’s uncertain tax positions for the fiscal years ended December 31, 2022 and January 1, 2022: SCHEDULE OF CHANGES TO COMPANY'S UNCERTAIN TAX POSITIONS Balance at January 2, 2021 $ 172 Increase due to reserves and tax positions related to current year 8 Balance at January 1, 2022 $ 180 Increase due to reserves and tax positions related to current year 26 Balance at December 31, 2022 $ 206 |
SCHEDULE OF EARNINGS PER SHARE,
SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Accounting Policies [Abstract] | ||
Net income (loss), numerator, basic computation | $ (525) | $ 143 |
Net income (loss), numerator, diluted computation | $ (525) | $ 143 |
Weighted average shares - denominator basic computation | 5,154 | 5,154 |
Weighted average shares, as adjusted - denominator diluted computation | 5,154 | 5,154 |
Basic | $ (0.10) | $ 0.03 |
Diluted | $ (0.10) | $ 0.03 |
SCHEDULE OF WEIGHTED AVERAGE NU
SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Common Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares subject to outstanding, shares | 250,000 | |
Convertible Debt Securities [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares subject to outstanding, shares | 282,486 |
DESCRIPTION OF THE BUSINESS A_4
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
May 02, 2020 | Dec. 31, 2022 | Jan. 01, 2022 | |
Product Information [Line Items] | |||
Cash, FDIC insured amount | $ 250 | ||
Percentage of tax benefits likelihood | likelihood greater than 50 percent | ||
Forgiveness of debt income | $ 165 | ||
Freight costs | 1,159 | $ 1,037 | |
Advertising costs | 251 | 209 | |
Product development costs | 143 | 124 | |
Paycheck Protection Program [Member] | |||
Product Information [Line Items] | |||
Proceeds from short-term debt | $ 165 | $ 165 | |
Debt instrument, interest rate | 1% | ||
Debt instrument, maturity date | May 02, 2022 | ||
Forgiveness of debt income | $ 165 | ||
Purchase [Member] | Supplier Concentration Risk [Member] | One Supplier [Member] | |||
Product Information [Line Items] | |||
Percentage of concentration risk | 49% | 50% | |
Purchase [Member] | Supplier Concentration Risk [Member] | Another Supplier [Member] | |||
Product Information [Line Items] | |||
Percentage of concentration risk | 14% | 11% | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||
Product Information [Line Items] | |||
Percentage of concentration risk | 88% | 87% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member] | |||
Product Information [Line Items] | |||
Percentage of concentration risk | 47% | 55% | |
Distributors Sales Revenue Net [Member] | Customer Concentration Risk [Member] | Customer [Member] | |||
Product Information [Line Items] | |||
Percentage of concentration risk | 45% | 45% |
SCHEDULE OF INVENTORIES (Detail
SCHEDULE OF INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,387 | $ 1,218 |
Raw materials and packaging | 1,076 | 656 |
Inventories, net | $ 2,463 | $ 1,874 |
EQUIPMENT (Details Narrative)
EQUIPMENT (Details Narrative) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2022 | Jan. 01, 2022 | |
Property, Plant and Equipment [Line Items] | |||
General and administrative expense | $ 1,404 | $ 1,489 | |
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Manufacturing costs | $ 102 | ||
Accumulated depreciation | 15 | ||
Proceeds from sale of equipment | $ 50 | ||
General and administrative expense | $ 75 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
May 02, 2020 | Jan. 06, 2016 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 22, 2021 | |
Short-Term Debt [Line Items] | |||||
Loan borrowed | $ 165 | ||||
SBA loan payable | 165 | ||||
Interest expense | 0 | 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] | |||||
Conversion price | $ 1.77 | ||||
Debt instrument, face amount | $ 500 | ||||
Accrued interest | $ 25 | ||||
Paycheck Protection Program [Member] | |||||
Short-Term Debt [Line Items] | |||||
Proceeds from loan | $ 165 | 165 | |||
Loan payable interest rate | 1% | ||||
Loan borrowed | $ 165 | ||||
SBA loan payable | $ 165 |
SCHEDULE OF STOCK OPTION ACTIVI
SCHEDULE OF STOCK OPTION ACTIVITY (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Non-qualified options, outstanding, beginning balance | shares | |
Non-qualified options, weighted average exercise price beginning balance | $ / shares | |
Non-qualified options, granted | shares | 250,000 |
Non-qualified options, weighted average exercise price, granted | $ / shares | $ 0.95 |
Non-qualified options, exercised | shares | |
Non-qualified options, weighted average exercise price, exercised | $ / shares | |
Non-qualified options, outstanding, ending balance | shares | 250,000 |
Non-qualified options, weighted average exercise price ending balance | $ / shares | $ 0.95 |
Non-qualified options,exercisable | shares | 83,333 |
Non-qualified options, weighted average exercise price, exercisable | $ / shares | $ 0.95 |
SCHEDULE OF INFORMATION ABOUT S
SCHEDULE OF INFORMATION ABOUT STOCK OPTIONS (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Range of exercise prices | $ 0.95 | |
Number of option shares, outstanding | 250,000 | |
Weighted average remaining life (in years) | 5 years | |
Weighted average exercise price | $ 0.95 | |
Non-qualified options,exercisable | 83,333 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares outstanding | 250,000 | |
Number of shares granted | 250,000 | |
Expected volatility | 82.65% | |
Risk free interest rate | 3.79% | |
Dividend rate | 0% | |
Expected term | 5 years | |
Intrinsic value of options outstanding | $ 60,000 | |
Intrinsic value of exercisable options | 20,000 | |
Unrecognized compensation cost | $ 105,000 | |
Number of shares options will expire | 250,000 | |
General and Administrative Expense [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation | $ 56,000 | |
2014 Equity Incentive Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Common stock available for awards | 250,000 | |
Number of shares outstanding | 250,000 | |
Exercise price | $ 0.95 | |
Number of shares options vesting | 83,333 | |
2014 Equity Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Share based compensation | $ 250,000 | $ 0 |
2014 Equity Incentive Plan [Member] | December 2023 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares options vesting | 83,333 | |
2014 Equity Incentive Plan [Member] | December 2024 [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares options vesting | 83,334 |
SCHEDULE OF DISAGGREGATION REVE
SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 12,827 | $ 12,590 |
Cheeses [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 10,951 | 10,761 |
Frozen Desserts and Foods [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,876 | 1,829 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 12,110 | 11,864 |
Europe [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 170 | 183 |
Middle East [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 494 | 334 |
Asia Pacific and Africa [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 53 | $ 209 |
REVENUE (Details Narrative)
REVENUE (Details Narrative) | Dec. 31, 2022 | Jan. 01, 2022 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, performance obligation, percentage | 88% | 87% |
SCHEDULE OF ROU LEASE ASSETS AN
SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR OPERATING LEASES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Leases | ||
Operating lease right-of-use assets | $ 158 | $ 203 |
Current portion of lease liabilities | $ 74 | $ 123 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses |
Operating lease liabilities, net of current portion | $ 85 | $ 95 |
Total lease liabilities | $ 159 | $ 218 |
Weighted average remaining lease term (in years) | 2 years 1 month 6 days | 3 years |
Weighted average discount rate | 5.50% | 5.50% |
SCHEDULE OF ROU LEASE ASSETS _2
SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR FINANCE LEASES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Leases | ||
Finance lease right-of-use asset | $ 53 | |
Current portion of lease liabilities | 15 | |
Operating lease liabilities, net of current portion | 39 | |
Total lease liabilities | $ 54 | |
Weighted average remaining lease term (in years) | 3 years 4 months 24 days | |
Weighted average discount rate | 6.50% |
SCHEDULE OF FUTURE LEASE PAYMEN
SCHEDULE OF FUTURE LEASE PAYMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Leases | ||
Lessee, Operating Lease, Liability, to be Paid, Year One | $ 81 | |
Finance Lease, Liability, to be Paid, Year One | 17 | |
2023 | 98 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 81 | |
Finance Lease, Liability, to be Paid, Year Two | 17 | |
[custom:OperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearTwo-0] | 98 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 7 | |
Finance Lease, Liability, to be Paid, Year Three | 17 | |
[custom:OperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearThree-0] | 24 | |
Lessee, Operating Lease, Liability, to be Paid, Year Four | ||
Finance Lease, Liability, to be Paid, Year Four | 8 | |
[custom:OperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearFour-0] | 8 | |
Lessee, Operating Lease, Liability, to be Paid | 169 | |
Finance Lease, Liability, to be Paid | 59 | |
[custom:OperatingLeaseAndFinanceLeaseLiabilityPaymentsDue-0] | 228 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (10) | |
Finance Lease, Liability, Undiscounted Excess Amount | (5) | |
[custom:OperatingLeaseAndFinanceLeaseLiabilityUndiscountedExcessAmount-0] | (15) | |
Operating Lease, Liability | 159 | $ 218 |
Finance Lease, Liability | 54 | |
[custom:OperatingLeaseAndFinanceLeaseLiability-0] | $ 213 |
LEASES (Details Narrative)
LEASES (Details Narrative) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) ft² | Jan. 01, 2022 USD ($) | |
Leases | ||
Area of real estate property | ft² | 6,200 | |
Payments for rent | $ 86 | $ 79 |
Outside warehouse expense | 363 | 459 |
Payments for rent copiers | $ 10 | $ 35 |
Incremental borrowing rate, percentage | 5.50% | 6.50% |
SCHEDULE OF COMPONENTS OF INCOM
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||
Current Federal | $ 64 | |
Current State | 26 | 39 |
Current Federal and State | 26 | 103 |
Deferred Federal | (190) | (22) |
Deferred State | (64) | (7) |
Deferred Federal and State | (254) | (29) |
Total income tax expense | $ (228) | $ 74 |
SCHEDULE OF RECONCILIATION BETW
SCHEDULE OF RECONCILIATION BETWEEN THE EXPECTED FEDERAL TAX EXPENSE AT STATUTORY TAX RATE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax | $ (157) | $ 46 |
State income taxes, net of federal income tax benefit | (64) | 18 |
Nontaxable forgiveness of PPP loan | (35) | |
Permanent items | 2 | 3 |
Other | 26 | 7 |
Total income tax expense | $ (228) | $ 74 |
SCHEDULE OF DEFERRED TAX ASSETS
SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jan. 01, 2022 |
Income Tax Disclosure [Abstract] | ||
Allowance for doubtful accounts | $ 105 | $ 88 |
Right of use asset | (59) | (57) |
Lease liabilities | 60 | 61 |
Inventory | 1 | 1 |
Net operating loss carryforward | 189 | |
Stock options | 16 | |
Research and development | 36 | |
Fixed assets | 19 | 19 |
Deferred tax asset, net | $ 367 | $ 112 |
SCHEDULE OF CHANGES TO COMPANY'
SCHEDULE OF CHANGES TO COMPANY'S UNCERTAIN TAX POSITIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 180 | $ 172 |
Increase due to reserves and tax positions related to current year | 26 | 8 |
Ending Balance | $ 206 | $ 180 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Statutory tax rate | 21% | 21% |
Percentage of tax benefits likelihood | likelihood greater than 50 percent | |
Uncertain tax positions that would affect the effective tax rate | $ 206 | |
Domestic Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 786 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 673 |