TOFUTTI BRANDS INC
For the period ended Jun 27, 2026. Filed Aug 11, 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.
Jun 27, 2026 · Filed Aug 11, 2026
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2026-06-27; filed 2026-08-11.
0001493152-26-037200
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 38 previous paragraphs and 59 current paragraphs.
25 unchanged; 10 reworded; 24 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 3 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 (24)
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. We have been successful in reaching a co-packing manufacturing agreement with the new owner of the facility and manufacturing business. Our relations with him commence on September 15 th and will be under the same terms and pricing as we had with the previous owner. We believe that we have sufficient inventory on hand to meet our projected sales until September 15, 2026 and beyond.
Current report
The accompanying unaudited condensed financial information, in the opinion of management, reflects all adjustments (which include only normally recurring adjustments) necessary to present fairly the Company’s financial position, operating results and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations for the thirteen-week and twenty-six week periods ended June 27, 2026 are not necessarily indicative of the results to be expected for the full year or any other period. The Company’s fiscal year is either a fifty-two or fifty-three-week period which ends on the Saturday closest to December 31 st.
Current report
Going Concern
Current report
The Company learned in February 2026 that the owner of its primary co-packer for the Company’s key products intended 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. We have been successful in reaching a co-packing manufacturing agreement with the new owner of the facility and manufacturing business. Our relations with him commence on September 15, 2026 and will be under the same terms and pricing as we had with the previous owner. We believe that we have sufficient inventory on hand to meet our projected sales until September 15, 2026 and beyond.
Current report
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of June 27, 2026, we had cash of approximately $121,000. During the last few years, we have experienced recurring losses and cash outflows from operations. For the six months ended June 27, 2026 our net sales decreased to $3,345,000 from $3,620,000 in the 2025 six month period and we incurred a net loss of $373,000 in the six months ended June 27, 2026 compared to a net loss of $169,000 for the six months ended June 28, 2025. The Company’s declining sales, increasing operating losses, continuing use of cash in operations, and limited available cash resources have adversely affected its liquidity.
Current report
Based on the Company’s current operating forecast, existing cash and anticipated cash flows from operations are not expected to be sufficient to fund the Company’s operating requirements and meet its obligations as they become due during the one-year period following the date these financial statements.. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans intends to address the Company’s liquidity requirements include:
Current report
The Company’s ability to successfully execute these plans is subject to significant risks and uncertainties. ln particular, improvements in sales and operating results may not occur within the time frame anticipated by management. The avail ability and terms of any financing are uncertain and may not be within the Company’s control. Accordingly, management has concluded that its plans do not alleviate the substantial doubt about the Company’s ability to continue as a going concern for the one-year period following the date these financial statements are issued. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern.
Current report
Selling expenses increased slightly by $11,000, or 6%, to $199,000 for the thirteen weeks ended June 27, 2026 from $188,000 for the thirteen weeks ended June 28, 2025. This increase was due to increases in meetings and convention expense of $8,000 and bad debt expense of $28,000, which were partially offset by decrease in travel, entertainment and auto expenses of $12,000 and outside warehouse rental expense of $22,000. The decrease in outside warehouse rental expense is due to the decrease in our inventories during the fiscal period.
Current report
The Company recorded an income tax benefit of $7 for the thirteen weeks ended June 27, 2026 and $0 for the thirteen weeks ended June 28, 2025 due to the receipt of a federal income tax refund in the 2026 period.
Current report
Twenty -Six Weeks Ended June 27, 2026, Compared with Twenty -Six Weeks Ended June 28, 2025
Current report
Net sales for the twenty-six weeks ended June 27, 2026 decreased by $275,000, or 8%, to $3,345,000 from net sales of $3,620,000 for the twenty-six weeks ended June 28, 2025. Sales of our vegan cheese products decreased by $161,000 to $2,920,000 in the twenty-six weeks ended June 27, 2026 from $3,081,000 in the twenty-six weeks ended June 28, 2025. Sales of our frozen dessert products decreased by $114,000 for the twenty-six weeks ended June 27, 2026 compared to $539,000 for the twenty-six weeks ended June 28, 2025.
Current report
Our gross profit decreased to $923,000 for the twenty-six weeks ended June 27, 2026 from $1,207,000 for the twenty-six weeks ended June 28, 2025. Our gross profit percentage was 28% for the twenty-six weeks ending June 27, 2026 compared to 33% for the twenty-six weeks ending June 28, 2025. Impacting our gross profit were ingredient and packaging cost increases that took place in the second quarter of 2026 that were not present in the second quarter of 2025. The increase in packaging costs is due to the significant increase in oil during the second quarter of this year. The increase in ingredients costs is due to tariffs on several of the Company’s most important ingredients.
Current report
Freight out expense, a significant part of our cost of sales, decreased by $92,000, or 33%, to $189,000, for the twenty-six weeks ended June 27, 2026 compared with $281,000 for the twenty-six weeks June 28, 2025 primarily due to the reduction in sales. Freight out expense was 6% of sales for the twenty-six weeks ended June 27, 2026 compared to 8% of sales for the twenty-six weeks ended June 28, 2025.
Current report
Marketing expenses decreased by $73,000, or 35%, to $137,000 for the twenty-six weeks ended June 27, 2026 from $210,000 for the twenty-six weeks ended June 28, 2025. The decrease was primarily due to decreases in advertising expense of $26,000, artwork and plate expense of $22,000 and promotion expense of $18,000.
Current report
Product development costs decreased slightly by $3,000, or 4%, to $80,000 for the twenty-six weeks ended June 27, 2026 from $83,000 for the twenty-six weeks ended June 28, 2025.
Current report
General and administrative expenses decreased by $23,000, or 3%, to $647,000 for the twenty-six weeks ended June 27, 2026 from $670,000 for the twenty-six weeks ended June 28, 2025, due to a decrease in general insurance expense of $39,000, which was partially offset by an increase in payroll expense of $17,000. The increase in payroll expense was caused by an increase in the Company’s group health insurance premiums.
Current report
We had an income tax benefit of $5,000 for the twenty-six weeks ended June 27, 2026 compared to an income tax expense of $7,000 for the twenty-six weeks ended June 28, 2025.
Current report
The Company learned in February 2026 that the owner of our primary co-packer for our key products intended 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. We have been successful in reaching a co-packing manufacturing agreement with the new owner of the facility and manufacturing business. Our relations with him commence on September 15 th and will be under the same terms and pricing as we had with the previous owner.
Current report
During the last few years, we have experienced recurring losses and cash outflows from operations. These conditions have raised substantial doubt about our ability to continue as a going concern.
Current report
The accompanying unaudited condensed financial information, in the opinion of management, reflects all adjustments (which include only normally recurring adjustments) necessary to present fairly the Company’s financial position, operating results and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations for the thirteen-week and twenty-six week periods ended June 27, 2026 are not necessarily indicative of the results to be expected for the full year or any other period. The Company’s fiscal year is either a fifty-two or fifty-three-week period which ends on the Saturday closest to December 31 st.
Current report
The Company learned in February 2026 that the owner of its primary co-packer for the Company’s key products intended 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. We have been successful in reaching a co-packing manufacturing agreement with the new owner of the facility and manufacturing business. Our relations with him commence on September 15, 2026 and will be under the same terms and pricing as we had with the previous owner. We believe that we have sufficient inventory on hand to meet our projected sales until September 15, 2026 and beyond.
Current report
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of June 27, 2026, we had cash of approximately $121,000. During the last few years, we have experienced recurring losses and cash outflows from operations. For the six months ended June 27, 2026 our net sales decreased to $3,345,000 from $3,620,000 in the 2025 six month period and we incurred a net loss of $373,000 in the six months ended June 27, 2026 compared to a net loss of $169,000 for the six months ended June 28, 2025. The Company’s declining sales, increasing operating losses, continuing use of cash in operations, and limited available cash resources have adversely affected its liquidity.
Current report
Based on the Company’s current operating forecast, existing cash and anticipated cash flows from operations are not expected to be sufficient to fund the Company’s operating requirements and meet its obligations as they become due during the one-year period following the date these financial statements.. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans intends to address the Company’s liquidity requirements include:
Current report
The Company’s ability to successfully execute these plans is subject to significant risks and uncertainties. ln particular, improvements in sales and operating results may not occur within the time frame anticipated by management. The availability and terms of any financing are uncertain and may not be within the Company’s control. Accordingly, management has concluded that its plans do not alleviate the substantial doubt about the Company’s ability to continue as a going concern for the one-year period following the date these financial statements are issued. The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded assets or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern.
Removed paragraphs (3)
Previous 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.
Previous report
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 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.
Reworded paragraphs (10)
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 plans to adopt this standard in fiscal 2027 and will provide the additional disclosures required by ASU 2024-03.
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. The Company intends to adopt this standard when required and believes it will not have a material effect upon our operations or report in interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted.
Previous 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.
Current wording
Net sales for the thirteen weeks ended June 27, 2026 decreased by $241,000, or 12% to $1,788,000 from net sales of $2,029,000 for the thirteen weeks ended June 28, 2025. Sales of our vegan cheese products decreased to $1,558,000 in the thirteen weeks ended June 27, 2026 from $1,708,000 in the thirteen weeks ended June 28, 2025. Sales of our frozen dessert products decreased to $230,000 in the thirteen weeks ended June 27, 2026 from $321,000 for the thirteen weeks ended June 28, 2025.
Previous 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.
Current wording
Our gross profit decreased to $454,000 for the thirteen weeks ended June 27, 2026 from $618,000 for the thirteen weeks ended June 27, 2026 due primarily to the reduction in sales. Our gross profit percentage was 25% for the thirteen weeks ending June 27, 2026 compared to 30% for the thirteen weeks ending June 28, 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. The increase in packaging costs is due to the significant increase in oil during the second quarter of this year. The increase in ingredients costs is due to tariffs on several of the Company’s most important ingredients.
Previous 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.
Current wording
Freight out expense, a significant part of our cost of sales, decreased by $30,000, or 24%, to $99,000, for the thirteen weeks ended June 27, 2026 compared with $119,000 for the thirteen weeks ended June 28, 2025 due primarily to the reduction in sales. Freight out expense was 5% of sales for the thirteen weeks ended June 27, 2026 compared to 6% of sales for the thirteen weeks ended June 28, 2025.
Previous 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.
Current wording
Marketing expenses decreased by $25,000, or 28%, to $64,000 for the thirteen weeks ended June 27, 2026 from $89,000 for the thirteen weeks ended June 28, 2025. The decrease was due primarily to decreases in promotions expense of $19,000, and artwork and plate expense of $10,000. We anticipate that our marketing expenses will continue at the same level for the balance of 2026.
Previous 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.
Current wording
Product development costs decreased slightly by $9,000, or 23%, to $30,000 for the thirteen weeks ended June 27, 2026 from $39,000 for the thirteen weeks ended June 28, 2025 due to a $5,000 decrease in professional fees and outside services expense. We anticipate our product development costs for the balance of the year will continue at a comparable level as compared to the 2025 period.
Previous wording
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 wording
General and administrative expenses decreased by $23,000, or 7%, to $286,000 for the thirteen weeks ended June 27, 2026 from $309,000 for the thirteen weeks ended June 28, 2025, due to decreases in professional fees and outside service expense of $15,000 and public relation expense of $13,000. These decreases were partially offset by an increase in payroll expense of $9,000. The increase in payroll expense was caused by an increase in the Company’s group health insurance premiums.
Previous 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.
Current wording
Selling expenses increased by $31,000, or 8%, to $436,000 for the twenty-six weeks ended June 27, 2026 from $405,000 for the twenty-six weeks ended June 28, 2025. This increase was due to increases in meetings and convention expense of $13,000, bad debt expense of $28,000, commission expense of $14,000, which were partially offset by a decrease in outside warehouse rental expense of $17,000 and travel, entertainment and auto expense of $11,000.
Previous 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.
Current wording
As of June 27, 2026, we had approximately $121,000 in cash and our working capital was approximately $1,758,000, compared with approximately $347,000 in cash and working capital of $2,126,000 at December 27, 2025. As of August 11, 2026, we had approximately $139,000 in cash. We will need to raise additional working capital from the sale of equity or debt in order to support our operations, for which there is no guarantee that we will be successful.
Previous 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.
Current wording
Net cash used in operating activities for the twenty-six weeks ended June 27, 2026 was $218,000 compared to $108,000 used in operating activities for the twenty-six weeks ended June 28, 2025. Net cash used in operating activities for the twenty-six weeks ended June 27, 2026 was primarily a result of the net loss of $373,000 and a reduction in liabilities of $249,000, which were partially offset by a decrease in accounts receivable of $248,000 and inventory of $116,000. Net cash used in operations for the twenty-six weeks ended June 28, 2025 was primarily a result of the net loss of $169,000 and an increase in inventory of $448,000 which were partially offset by a decrease in account receivables of $274,000 and an increase in liabilities of $54,000.