TOFUTTI BRANDS INC

Previous wording

Net sales for the thirteen weeks ended June 28, 2025 decreased by $254,000, or 11%, from net sales of $2,283,000 for the thirteen weeks ended June 29, 2024 to $2,029,000 for the thirteen weeks ended June 28, 2025. Sales of our vegan cheese products decreased to $1,708,000 in the thirteen weeks ended June 28, 2025 from $1,926,000 in the thirteen weeks ended June 29, 2024, due to increased competition in the vegan cheese category. Sales of our frozen dessert products decreased to $321,000 in the thirteen weeks ended June 28, 2025 from $357,000 for the thirteen weeks ended June 29, 2024. Our sales were also negatively impacted by the proposed new tariffs to be implemented by the USA and foreign countries that we sell to. The uncertainty created by the tariffs caused our two largest domestic customers to pause some of their regular purchase plans.

Current wording

Net sales for the thirteen weeks ended September 27, 2025 decreased by $79,000, or 4%, from net sales of $1,986,000 for the thirteen weeks ended September 28, 2024 to $1,907,000 for the thirteen weeks ended September 27, 2025. Sales of our vegan cheese products decreased slightly to $1,632,000 in the thirteen weeks ended September 27, 2025 from $1,648,000 in the thirteen weeks ended September 28, 2024. Sales of our frozen dessert products decreased to $275,000 in the thirteen weeks ended September 27, 2025 from $338,000 for the thirteen weeks ended September 28, 2024.

Previous wording

Freight out expense, a significant part of our cost of sales, decreased by $16,000, to $163,000, for the thirteen weeks ended June 28, 2025 compared with $179,000 for the thirteen weeks June 29, 2024. Freight out expense was 8% of sales for the thirteen weeks ended June 28, 2025 and June 29, 2024, respectively.

Current wording

Freight out expense, a significant part of our cost of sales, decreased by $20,000, to $136,000, for the thirteen weeks ended September 27, 2025 compared with $156,000 for the thirteen weeks September 28, 2024. The decrease in Freight out expense was due to the reduction in sales. Freight out expense was 7% of sales for the thirteen weeks ended September 27, 2025 compared to 8% for the thirteen weeks ended September 28, 2024.

Previous wording

Selling expenses decreased significantly by $62,000, or 25%, to $188,000 for the thirteen weeks ended June 28, 2025 from $250,000 for the thirteen weeks ended June 29, 2024. This decrease was primarily due to decreases in meetings and convention expense of $53,000 and bad debt expense of $18,000. We anticipate that our selling expense will continue at this lower level, for the balance of 2025.

Current wording

Selling expenses increased slightly by $10,000, or 5%, to $217,000 for the thirteen weeks ended September 27, 2025 from $207,000 for the thirteen weeks ended September 28, 2024. This increase was primarily due to increases in bad debt expense of $9,000 and outside warehouse rental expense of $4,000, which were partially offset by a decrease in commission expense of $5,000. We anticipate that our selling expense will continue at the same level for the balance of 2025.

Previous wording

Marketing expenses increased slightly by $10,000, or 13%, to $89,000 for the thirteen weeks ended June 28, 2025 from $79,000 for the thirteen weeks ended June 29, 2024. The increase was primarily due to a decrease in artwork and plates of $11,000, and advertising expense of $5,000 which was partially offset by an increase in promotion expense of $5,000. We anticipate that our marketing promotion expenses will continue at the same level for the balance of 2025.

Current wording

Marketing expenses increased by $12,000, or 15%, to $95,000 for the thirteen weeks ended September 27, 2025 from $83,000 for the thirteen weeks ended September 28, 2024. The increase was primarily due to an increase in promotion expense of $12,000. We anticipate that our marketing promotion expenses will continue at the same level for the balance of 2025.

Previous wording

Product development costs, increased by $17,000, or 77%, to $39,000 for the thirteen weeks ended June 28, 2025 from $22,000 for the thirteen weeks ended June 29, 2024 due primarily to a $13,000 increase in professional fees and outside services expense. We anticipate our product development costs for the balance of the year will continue at a slightly higher level as compared to the 2024 period due to higher professional fees and outside services expense.

Current wording

Research and development increased slightly by $3,000, or 11%, to $31,000 for the thirteen weeks ended September 27, 2025 from $28,000 for the thirteen weeks ended September 28, 2024 due primarily to a $5,000 increase in professional fees and outside services expense. We anticipate our product development costs for the balance of the year will continue at a slightly higher level as compared to the 2024 period due to higher professional fees and outside services expense.

Previous wording

General and administrative expenses decreased by $34,000, or 10%, to $308,000 for the thirteen weeks ended June 28, 2025 from $342,000 for the thirteen weeks ended June 29, 2024, primarily due to a decrease in payroll expense of 13,000, stock option expense of $13,000, real and personal property tax expense of $6,000, office supplies expense of 8,000, and waste removal expense of $4,000. Which were partially offset by an increase in professional fees and outside services expense pf $10,000. We anticipate our general and administrative expense will continue at a lower level compared to 2024.

Current wording

General and administrative expenses decreased by $65,000, or 17%, to $309,000 for the thirteen weeks ended September 27, 2025 from $374,000 for the thirteen weeks ended September 28, 2024, primarily due to decreases in stock option expense of $13,000, real and personal property tax expense of $3,000, building expense of $20,000, waste removal expense of $5,000, office supply expense of $12,000, equipment rental expense of $6,000, and public relations expense of $13,000. These decreases were partially offset by an increase in professional fees and outside services expense of $10,000. We anticipate our general and administrative expense will continue at a lower level compared to 2024 for the remainder of this fiscal year.

Previous wording

Income tax expense was $0 for the thirteen weeks ended June 28, 2025 and $5,000 for the thirteen weeks ended June 29, 2024.

Current wording

Income tax expense was $4 for the thirteen weeks ended September 27, 2025 and $0 for the thirteen weeks ended September 28, 2024.

Previous wording

Net sales for the twenty-six weeks ended June 28, 2025 decreased by $875,000, or 19%, to $3,620,000 from net sales of $4,495,000 for the twenty-six weeks ended June 29, 2024. Sales of our vegan cheese products decreased to $3,081,000 in the twenty-six weeks ended June 28, 2025 from $3,735,000 in the twenty-six weeks ended June 29, 2024, due to increased competition in the vegan cheese category. Sales of our frozen dessert products decreased to $539,000 in the twenty-six weeks ended June 28, 2025 from $700,000 for the twenty-six weeks ended June 29, 2024. Our sales were also negatively impacted by the proposed new tariffs to be implemented by the USA and foreign countries that we sell to. The uncertainty created by the tariffs caused our two largest domestic customers to pause some of their regular purchase plans.

Current wording

Net sales for the thirty-nine weeks ended September 27, 2025 decreased by $954,000, or 15%, to $5,527,000 from net sales of $6,481,000 for the thirty-nine weeks ended September 28, 2024. Sales of our vegan cheese products decreased to $4,713,000 in the thirty-nine weeks ended September 27, 2025 from $5,383,000 in the thirty-nine weeks ended September 28, 2024, due to increased competition in the vegan cheese category. Sales of our frozen dessert products decreased to $814,000 in the thirty-nine weeks ended September 27, 2025 from $1,098,000 for the thirty-nine weeks ended September 28, 2024. The decrease was due to a reduction in the sales of pints in the current fiscal year.

Previous wording

Our gross profit increased to $1,207,000 for the twenty-six weeks ended June 28, 2025 by $71,000 from $1,136,000 for the twenty-six weeks ended June 29, 2024, due principally to significant price increases we implemented at the end of 2024. Our gross profit percentage was 33% for the twenty-six weeks ending June 28, 2025 compared to 25% for the twenty-six weeks ending June 29, 2024. There were ingredient and packaging cost increases that took place in the first twenty-six weeks of 2024 that negatively impacted the gross profit in the 2024 period that were not present in the first two quarters of 2025.

Current wording

Our gross profit increased to $1,726,000 for the thirty-nine weeks ended September 27, 2025 by $105,000 from $1,621,000 for the thirty-nine weeks ended September 28, 2024, due principally to significant price increases we implemented at the end of 2024. Our gross profit percentage was 31% for the thirty-nine weeks ending September 27, 2025 compared to 25% for the thirty-nine weeks ending September 28, 2024. Ingredient and packaging cost increases that took place in the first thirty-nine weeks of 2024 and negatively impacted the gross profit in the 2024 period were not present in the first three quarters of 2025. Our gross profit and gross profit percentage were also positively impacted by a decrease of $91,000 in sales and promotional allowance expense to $531,000 for the thirty-nine weeks ended September 27, 2025 from $622,000 for the thirty-nine weeks ended September 28, 2024.

Previous wording

Freight out expense, a significant part of our cost of sales, decreased by $16,000, or 21%, to $281,000, for the twenty-six weeks ended June 28, 2025 compared with $357,000 for the twenty-six weeks June 29, 2024. Freight out expense was 8% of sales for the twenty-six weeks ended June 28, 2025 and the twenty-six weeks ended June 29, 2024. The significant reduction in freight expense was due to significant decrease in sales for fiscal year 2025. We anticipate the freight expense, as a percentage of sales, will remain constant for the balance of 2025.

Current wording

Freight out expense decreased by $96,000, or 19%, to $417,000, for the thirty-nine weeks ended September 27, 2025 compared with $513,000 for the thirty-nine weeks September 28, 2024. Freight out expense was 8% of sales for the thirty-nine weeks ended September 27, 2025 and the thirty-nine weeks ended September 28, 2024. The significant reduction in freight expense was due to the significant decrease in sales in the 2025 period.

Previous wording

Marketing expenses decreased by $3,000, or 19%, to $210,000 for the twenty-six weeks ended June 28, 2025 from $213,000 for the twenty-six weeks ended June 29, 2024. Decreases in advertising expense of $33,000, were offset by increases in promotion expenses of $11,000, and artwork and plate expense of $21,000. We anticipate that our marketing promotion expenses will continue at the same level for the balance of 2025.

Current wording

Marketing expenses increased slightly by $8,000, or 3%, to $305,000 for the thirty-nine weeks ended September 27, 2025 from $297,000 for the thirty-nine weeks ended September 28, 2024. Increases in artwork and plate expense of $19,000, and promotion expenses of $21,000, were partially offset by a decrease in advertising expense of $29,000.

Previous wording

General and administrative expenses decreased by $54,000, or 8%, to $669,000 for the twenty-six weeks ended June 28, 2025 from $724,000 for the twenty-six weeks ended June 29, 2024, primarily due to a decrease in stock option expense of $27,000, payroll expense of $16,000, building rental expense of $13,000, real and personal property tax of $10,000, waste removal of $8,000. These decreases were partially offset by increases in professional fees and outside services expense of $10,000, and general insurance expenses of $13,000. We anticipate our general and administrative expense will continue at a lower level compared to 2024.

Current wording

General and administrative expenses decreased by $118,000, or 11%, to $979,000 for the thirty-nine weeks ended September 27, 2025 from $1,097,000 for the thirty-nine weeks ended September 28, 2024, primarily due to decreases in stock option expense of $40,000, payroll expense of $6,000, building rental expense of $32,000, real and personal property tax expense of $19,000, waste removal of $13,000, public relations expense of $12,000, and office supplies expense of $20,000. These decreases were partially offset by increases in professional fees and outside services expense of $20,000, and general insurance expenses of $12,000.

Previous wording

Income tax expense was $0 for the twenty-six weeks ended June 28, 2025 and $0 for the twenty-six weeks ended June 29, 2024.

Current wording

Income tax expense was $12 for the thirty-nine weeks ended September 27, 2025 and $5 for the thirty-nine weeks ended September 28, 2024.

Previous wording

As of June 28, 2025, we had approximately $350,000 in cash and our working capital was approximately 2,733,000, compared with approximately $462,000 in cash and working capital of $2,893,000 at December 30, 2024.

Current wording

As of September 27, 2025, we had approximately $630,000 in cash and our working capital was approximately $2,598,000, compared with approximately $462,000 in cash and working capital of $2,893,000 at December 28, 2024.

Previous wording

Net cash used in operating activities for the Twenty-six weeks ended June 28, 2025 was $108,000 compared to $344,000 used in operating activities for the Twenty-six weeks ended June 29, 2024. Net cash used in operating activities for the Twenty-six weeks ended June 28, 2025 was primarily a result of the net loss of $169,000.

Current wording

Net cash provided by operating activities for the thirty-nine weeks ended September 27, 2025 was $174,000 compared to $655 used in operating activities for the thirty-nine weeks ended September 28, 2024. Net cash provided by operating activities for the thirty-nine weeks ended September 27, 2025 was primarily a result of a decrease in accounts receivable of $202,000 and an increase of current liabilities of $595,000, which were partially offset by an increase in inventories of $352,000 and the net loss of $306,000.