TOFUTTI BRANDS INC
For the period ended Mar 28, 2026. Filed May 18, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 28, 2026 · Filed May 18, 2026
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-27; filed 2025-11-12.
0001493152-25-022029
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-28; filed 2026-05-18.
0001493152-26-024180
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 47 previous paragraphs and 38 current paragraphs.
21 unchanged; 13 reworded; 4 added; 13 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
The Company learned in February 2026 that the owner of our primary co-packer for our key products intends to close its plant effective July 31, 2026. The products produced by this facility accounted for approximately 80% of our sales for the year ended December 27, 2025. While management is actively searching for an alternative co-packer, there is no assurance a suitable replacement can be found. In addition, we have had declining revenues, recurring losses from operations and cash outflows from operations in the last few years. These conditions result in substantial doubt about our ability to continue as a going concern.
Current report
Recent Accounting Pronouncements and Adoption
Current report
General and administrative expenses decreased by $9,000, or 2%, to $359,000 for the thirteen weeks ended March 28, 2026 from $368,000 for the thirteen weeks ended March 29, 2025, due to a decrease in general insurance expense of $35,000, which was partially offset by increases in professional fees and outside service expense of $15,000 and public relation expense of $12,000.
Current report
The Company learned in February 2026 that the owner of our primary co-packer for our key products intends to close its plant effective July 31, 2026. The products produced by this facility accounted for approximately 80% of our sales for the year ended December 27, 2025. While management is actively searching for an alternative co-packer, there is no assurance a suitable replacement can be found. In addition, we have had declining revenues, recurring losses from operations and cash outflows from operations in the last few years. These conditions result in substantial doubt about our ability to continue as a going concern.
Removed paragraphs (13)
Previous report
Recent Accounting Pronouncements
Previous report
In December 2023, the FASB issued ASU 2023-09,Income Taxes (Topic 740) – Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. The ASU’s amendments are effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that adoption of ASU 2023-09 will have on its financial statements.
Previous report
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 report
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 report
Thirty-nine Weeks Ended September 27, 2025, Compared with Thirty-nine Weeks Ended September 28, 2024
Previous report
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 report
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 report
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 report
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 report
Research and development costs, increased by $21,000, or 23%, to $113,000 for the thirty-nine weeks ended September 27, 2025 from $92,000 for the thirty-nine weeks ended September 28, 2024 due primarily to an increase in professional fees and outside services expense of $23,000.
Previous report
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 report
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 report
We believe our existing cash on hand at September 27, 2025, existing working capital and the cash flows expected from operations, will be sufficient to support our operating and capital requirements during the next twelve months.
Reworded paragraphs (13)
Previous wording
The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s balance sheets or statements of operations.
Current wording
Our company considers the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on our balance sheets or statements of operations.
Previous wording
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of these standards will have on it financial statements.
Current wording
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted. The Company plans to adopt this standard in fiscal 2027 and will provide the additional disclosures required by ASU 2024-03.
Previous wording
In July 2025, the FASB issued ASU No. 2025-05,*“Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”,*which provides all entities, including public business entities, with a practical expedient, which allows the entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when developing reasonable and supportable forecasts as part of estimating expected credit losses. The amendments in ASU No. 2025-05 should be applied prospectively and are effective for all entities for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The Company is currently assessing the impact of adopting this standard on the Company’s unaudited Condensed Consolidated Financial Statements.
Current wording
In July 2025, the FASB issued ASU No. 2025-05,“Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets”, which provides all entities, including public business entities, with a practical expedient, which allows the entity to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when developing reasonable and supportable forecasts as part of estimating expected credit losses. The adoption of this standard did not have a material impact on our financial statements.
Previous 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.
Current wording
Net sales for the thirteen weeks ended March 28, 2026 decreased by $34,000, or 2%, from net sales of $1,591,000 for the thirteen weeks ended March 29, 2025 to $1,557,000 for the thirteen weeks ended March 28, 2026. Sales of our vegan cheese products decreased slightly to $1,362,000 in the thirteen weeks ended March 28, 2026 from $1,373,000 in the thirteen weeks ended March 29, 2025. Sales of our frozen dessert products decreased to $195,000 in the thirteen weeks ended March 28, 2026 from $218,000 for the thirteen weeks ended March 29, 2025.
Previous wording
Our gross profit increased to $519,000 for the thirteen weeks ended September 27, 2025 from $485,000 for the thirteen weeks ended September 28, 2024. Our gross profit percentage increased to 27% for the thirteen weeks ending September 27, 2025 compared to 24% for the thirteen weeks ending September 28, 2024. The increase was due to a price increase instituted at the beginning of fiscal year 2025.
Current wording
Our gross profit decreased to $469,000 for the thirteen weeks ended March 28, 2026 from $589,000 for the thirteen weeks ended March 29, 2025. Our gross profit percentage was 30% for the thirteen weeks ending March 28, 2026 compared to 37% for the thirteen weeks ending March 29, 2025. There were significant ingredient and packaging cost increases that took place in the first quarter of 2026 that were not present in the first quarter of 2025.
Previous 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.
Current wording
Freight out expense, a significant part of our cost of sales, decreased by $19,000, or 17%, to $90,000, for the thirteen weeks ended March 28, 2026 compared with $109,000 for the thirteen weeks March 29, 2025. Freight out expense was 6% of sales for the thirteen weeks ended March 28, 2026 compared to 7% of sales for the thirteen weeks ended March 29, 2025. We anticipate that the freight expense, as a percentage of sales, will increase for the balance of 2026 due to the ongoing fuel cost increases caused by the hostilities in Iran.
Previous wording
Selling expenses decreased by $49,000, or 7%, to $622,000 for the thirty-nine weeks ended September 27, 2025 from $671,000 for the thirty-nine weeks ended September 28, 2024, due to decreases in meetings and convention expense of $37,000, and commission expense of $12,000.
Current wording
Selling expenses increased by $22,000, or 10%, to $239,000 for the thirteen weeks ended March 28, 2026 from $217,000 for the thirteen weeks ended March 29, 2025. This increase was due to increases in meetings and convention expense of $6,000 and outside warehouse retail expense of $5,000.
Previous 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.
Current wording
Marketing expenses decreased by $48,000, or 40%, to $73,000 for the thirteen weeks ended March 28, 2026 from $121,000 for the thirteen weeks ended March 29, 2025. The decrease was due primarily to decreases in advertising expense of $34,000, and artwork and plate expense of $12,000. We anticipate that our marketing promotion expenses will continue at the same level for the balance of 2026.
Previous 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.
Current wording
Product development costs increased slightly by $7,000, or 16%, to $51,000 for the thirteen weeks ended March 28, 2026 from $44,000 for the thirteen weeks ended March 29, 2025 due 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 2025 period due to higher professional fees and outside services expense.
Previous wording
Income tax expense was $4 for the thirteen weeks ended September 27, 2025 and $0 for the thirteen weeks ended September 28, 2024.
Current wording
Income tax expense was $1 for the thirteen weeks ended March 28, 2026 and $0 for the thirteen weeks ended March 29, 2025 due to the net losses incurred during both periods.
Previous 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.
Current wording
As of March 28, 2026, we had approximately $63,000 in cash and our working capital was approximately $1,876,000, compared with approximately $347,000 in cash and working capital of $2,126,000 at December 27, 2025. As of May 14, 2026, we had approximately $366,000 in cash.
Previous 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.
Current wording
Net cash used in operating activities for the thirteen weeks ended March 28, 2026 was $279,000 compared to $148,000 provided by operating activities for the thirteen weeks ended March 29, 2025. The decrease in net cash used by operating activities for the thirteen weeks ended March 28, 2026 was primarily a result of net loss of $255,000 and an increase in inventory of $207,000, which was partially offset by a decrease in accounts receivable of $152,000.
Previous wording
We have faced inflationary price increases in the costs of some of our imported commodities and in freight costs. While we have been able to partially offset inflation and other changes in the costs of commodities by increasing prices, there can be no assurance that we will be able to continue to do so in the future. While there are no current tariffs that have affected any of the Company’s imports or exports, uncertainty regarding their implementation by the U.S. and certain foreign countries has already influenced the purchasing decisions of some of our domestic and international customers. Our business is subject to minimal seasonal variations with slightly increased sales historically in the second and third quarters of the fiscal year. We expect to continue to experience slightly higher sales in the second and third quarters, and slightly lower sales in the fourth and first quarters, as a result of reduced sales of dairy free frozen desserts during those periods.
Current wording
While we do not believe that our operating results have been materially affected by inflation during the preceding two years, there can be no assurance that our operating results will not be affected by inflation in the future. Although we have not experienced adverse price increases on our imports or exports due to tariffs, there is no guarantee that future tariffs will not negatively impact our business. Our business is subject to minimal seasonal variations with slightly increased sales historically in the second and third quarters of the fiscal year. We expect to continue to experience slightly higher sales in the second and third quarters, and slightly lower sales in the fourth and first quarters, as a result of reduced sales of dairy free frozen desserts during those periods.