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

Rhea-AI Summary

Tofutti Brands (OTCQX: TOFB) reported a 16% decrease in net sales to $2,283,000 for Q2 2024, compared to $2,719,000 in Q2 2023. For the first half of 2024, sales decreased by 14% to $4,495,000. Despite lower sales, the company's gross profit percentage improved to 29% in Q2 2024 from 25% in Q2 2023. The company reported a reduced net loss of $32,000 for Q2 2024, compared to $318,000 in Q2 2023. Cash position decreased to $489,000 as of June 29, 2024, from $837,000 at the end of 2023. CEO Steven Kass expressed disappointment with revenues but noted improved operating results and strong cash resources.

Positive

• Gross profit percentage increased to 29% in Q2 2024 from 25% in Q2 2023
• Net loss reduced to $32,000 in Q2 2024 from $318,000 in Q2 2023
• Working capital remains strong at approximately $3,105,000

Negative

• Net sales decreased by 16% to $2,283,000 in Q2 2024
• Sales for the first half of 2024 decreased by 14% to $4,495,000
• Cash position decreased to $489,000 from $837,000 at the end of 2023

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

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

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

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

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

About Tofutti Brands Inc.

Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of plant-based products. The Company sells more than twenty-five (25) dairy-free foods including cheese products and frozen desserts. Tofutti Brands Inc. is a proven innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available throughout the United States and in more than fifteen (15) countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy or wish to maintain a kosher or vegan diet. Tofutti’s product line includes plant-based frozen dessert pints, Tofutti Cutie^® sandwiches and novelty products.

Forward-Looking Statements

Some of the statements in this press release concerning the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to the impact of COVID-19 on the economy and our operations, business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K.

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

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

		June 29, 2024 (Unaudited)				December 30, 2023
Assets
Current assets:
Cash		$	489			$	837
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $505 and $525, respectively			817				828
Inventories			2,171				2,475
Prepaid expenses and other current assets			75				93
Total current assets			3,552				4,233
Operating lease right-of-use asset			47				81
Finance lease right-of-use asset			29				36
Deferred tax assets			246				246
Other assets			40				19
Total assets		$	3,914			$	4,615
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable			12				237
Accrued expenses			387				541
Finance lease liability, current portion			11				15
Total current liabilities			410				793
Operating lease liabilities, net of current portion			—				7
Finance lease liability, net of current portion			20				23
Total liabilities			430				823
Stockholders’ equity:
Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued and outstanding			—				—
Common stock - par value $.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding			52				52
Additional paid-in capital			350				323
Retained earnings			3,082				3,417
Total stockholders’ equity			3,484				3,792
Total liabilities and stockholders’ equity		$	3,914			$	4,615

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

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

FAQ

What was Tofutti Brands' (TOFB) net sales for Q2 2024?

Tofutti Brands reported net sales of $2,283,000 for Q2 2024, a 16% decrease from $2,719,000 in Q2 2023.

How did Tofutti's (TOFB) gross profit percentage change in Q2 2024?

Tofutti's gross profit percentage increased to 29% for Q2 2024, compared to 25% for Q2 2023.

What was Tofutti Brands' (TOFB) net loss for Q2 2024?

Tofutti Brands reported a net loss of $32,000, or $0.01 per share, for Q2 2024.

How much cash did Tofutti (TOFB) have as of June 29, 2024?

As of June 29, 2024, Tofutti had approximately $489,000 in cash.