TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 1, 2023

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Cranford, New Jersey, Nov. 14, 2023 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen and twenty-six weeks ended September 30, 2023, today.

Net sales for the thirteen weeks ended September 30, 2023 decreased by $381,000, or 13%, to $2,515,000, from net sales of $2,896,000 for the thirteen weeks ended October 1, 2022. Sales of our vegan cheese products decreased to $2,110,000 in the thirteen weeks ended September 30, 2023 from $2,344,000 in the thirteen weeks ended October 1, 2022. Sales of our frozen dessert products decreased to $406,000 in the thirteen weeks ended September 30, 2023, compared to $562,000 for the thirteen weeks ended October 1, 2022. For the thirty-nine-week period ended September 30, 2023, net sales decreased by $1,614,000, or 17%, to $7,724,000, compared to net sales of $9,338,000 for the thirty-nine weeks ended October 1, 2022.

Our gross profit increased to $786,000 for the thirteen weeks ended September 30, 2023 from $427,000 for the thirteen weeks ended October 1, 2022. Our gross profit percentage was 31% for the thirteen weeks ending September 30, 2023, compared to 15% for the thirteen weeks ending October 1, 2022. Our gross profit increased to $2,059,000 for the thirty-nine weeks ended September 30, 2023 from $1,812,000 for the thirty-nine weeks ended October 1, 2022.

We had net income of $110,000, or $0.02 per share (basic and diluted) for the thirteen-weeks ended September 30, 2023 and a net loss of $310,000 or $0.06 per share (basic and diluted), for the thirty-nine weeks ended September 30, 2023, compared to net losses of $192,000, or $0.04 (basic and diluted) per share, and $195,000 or $0.04 basic and diluted per share for the thirteen and thirty-nine weeks ended October 1, 2022, respectively.

As of November 9, 2023, we had approximately $747,000 in cash and our working capital was approximately $3,533,000 compared with approximately $1,072,000 in cash and working capital of $3,625,000 at December 31, 2022. The decrease in cash during the thirty-nine weeks ended September 30, 2023 was primarily due to a decrease in payables.

Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “While we are disappointed in our sales performance during the first nine months of 2023, our cash and available capital balances remain strong and we are pleased by our return to profitable operations in the thirteen week period ended September 30, 2023. We believe that we are positioned for improved results,” concluded Mr. Kass.

About Tofutti Brands Inc.

Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of plant-based products. The Company sells more than twenty-five (25) dairy-free foods including cheese products and frozen desserts. Tofutti Brands Inc. is a proven innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available throughout the United States and in more than fifteen (15) countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy or wish to maintain a kosher or vegan diet. Tofutti’s product line includes frozen desserts and Tofutti Cutie® sandwiches, and vegan cheese products, such as Better Than Cream Cheese® and Better Than Sour Cream®. Tofutti also sells a prepared food entrée, Mintz’s Blintzes®, made with Tofutti’s milk-free cheeses such as Better Than Cream Cheese® and Sour Supreme®. For more information, visit www.tofutti.com.

Forward-Looking Statements

Some of the statements in this press release concerning the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K.

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

TOFUTTI BRANDS, INC.Unaudited Condensed Statements of Operations(in thousands, except per share figures)

  Thirteen weeks ended September 30, 2023  Thirteen weeks ended October 1, 2022  Thirty-nine weeks ended September 30, 2023  Thirty-nine weeks ended October 1, 2022 
             
Net sales $2,515  $2,896  $7,724  $9,338 
Cost of sales  1,729   2,469   5,665   7,526 
Gross profit  786   427   2,059   1,812 
                 
Operating expenses:                
Selling and warehouse  210   261   802   834 
Marketing  103   103   287   370 
Research and development  28   26   111   108 
General and administrative  333   298   1,018   987 
   674   688   2,218   2,299 
                 
Income (loss) from operations  112   (261)  (159)  (487)
                 
Other income:                
SBA loan forgiveness  -   -   -   165 
                 
Income (loss) before interest expense and income taxes  112   (261)  (159)  (322)
Interest expense  1   -   3   - 
Loss before income tax  111   (261)  (162)  (322)
Income tax expense (benefit)  1   (69)  148   (127)
                 
Net income (loss) $110  $(192) $(310) $(195)
                 
Weighted average common shares outstanding:                
Basic  5,154   5,154   5,154   5,154 
Diluted  5,154   5,154   5,154   5,154 
                 
Income (loss) per common share:                
Basic $.02  $(.04) $(.06) $(.04)
Diluted $.02  $(.04) $(.06) $(.04)

 TOFUTTI BRANDS INC.Unaudited Condensed Balance Sheets(in thousands, except share and per share figures)

  September 30,2023  December 31,2022 
Assets        
Current assets:        
Cash $727  $1,072 
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $510 and $495, respectively  986   1,305 
Inventories  2,547   2,463 
Prepaid expenses and other current assets  87   80 
Total current assets  4,347   4,920 
Operating lease right-of-use assets  100   158 
Finance lease right-of-use asset  40   53 
Deferred tax assets  183   367 
Other assets  19   19 
Total assets $4,689  $5,517 
Liabilities and Stockholders’ Equity        
Current liabilities:        
Income taxes payable $  $41 
Accounts payable  491   684 
Accrued expenses  294   555 
Finance lease liability, current portion  15   15 
Total current liabilities  800   1,295 
Financing lease liabilities, long-term  27   39 
Operating lease liabilities  27   85 
Total liabilities  854   1,419 
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  310   263 
Retained earnings  3,473   3,783 
Total stockholders’ equity  3,835   4,098 
Total liabilities and stockholders’ equity $4,689  $5,517 

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Source: TOFUTTI BRANDS INC

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