Cranford, New Jersey, UNITED STATES

Cranford, New Jersey, March 31, 2023 (GLOBE NEWSWIRE) -- TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the fiscal year ended December 31, 2022 today.

Tofutti Brands reported net sales of $12,827,000, a slight increase of $237,000 or 2%, from net sales of $12,590,000 for the fiscal year ended January 1, 2022 due to the price increases implemented by the Company in the fourth quarter of 2022. Sales of our frozen dessert and frozen food product lines increased slightly to $1,876,000 in the fiscal year ended December 31, 2022 from $1,829,000 in fiscal 2021. Sales of vegan cheese products also increased slightly to $10,951,000 in the fiscal year ended December 31, 2022 from $10,761,000 in the fiscal year ended January 1, 2022.

Our gross profit for the year ended December 31, 2022 decreased by $1,000,000 to $2,342,000 from $3,342,000 for the fiscal year ended January 1, 2022 and our gross profit percentage for the fiscal year ended December 31, 2022 was 18% compared to 27% for the fiscal year ended January 1, 2022. The decrease in both our gross profit and gross profit percentage was primarily caused by the substantial increases in the costs for certain ingredients, especially palm oil, gums and flavorings and the substantial increase in freight out expense. These substantial cost increases were due primarily to the lingering supply chain issues caused by the Covid-19 pandemic and the record high cost of petroleum. The high cost of petroleum directly impacted the costs of certain ingredients and packaging such as the plastic packaging we use for our spreadable cheese products.

We had a net loss of $525,000, or a $0.10 loss per share (basic and diluted), for the year ended December 31, 2022 compared to net income of $143,000, or $0.03 (basic and diluted) per share, for the fiscal year ended January 1, 2022.

At December 31, 2022, we had approximately $1,072,000 in cash, and our working capital was $3,625,000 as compared to $1,698,000 and $4,326,000 at January 1, 2022. The decrease in cash is primarily due to the use of funds to purchase inventories during the period, due to management’s decision to purchase ingredients in advance of production needs to ensure an adequate supply and to prevent future production disruptions.

Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, “We look forward to improved results in 2023 as the price increases we have implemented take full effect and expect that our cash position will also improve.”

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 ice cream pints, cones, Tofutti Cutie® sandwiches and novelty

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)


(In thousands, except for per share data)

  Fiscal year
December 31, 2022
  Fiscal year
January 1, 2022
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 

(In thousands, except for share and per share data)

  December 31, 2022  January 1, 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 
Liabilities and Stockholders’ Equity        
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