TOFUTTI BRANDS INC

Our ability to operate as a going concern will depend on our ability to improve our operations and to obtain adequate financing.

During the last few years, we have experienced recurring losses and cash outflows from operations and our cash position has declined to $138,000 at September 26, 2026. These conditions have raised substantial doubt about our ability to continue as a going concern. 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 are issued. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management intends to address the Company’s liquidity requirements by:

Our ability to successfully execute these plans is subject to significant risks and uncertainties. In particular, improvements in sales and operating results may not occur within the time frame anticipated by management and there is no guarantee that we will be successful in raising additional capital.

Increased commodity costs could decrease our profit margins which could adversely affect our business.

Our profitability depends, in part, on our ability to anticipate and react to changes in the price and availability of food commodities. Prices may be affected due to market changes, increased competition, the general risk of inflation, the impacts of tariffs or the responses of other governments, consumers or suppliers to U.S. imposed tariffs, shortages or interruptions in supply due to weather, disease or other conditions beyond our control, or other reasons. 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.

Additionally, with elevated inflationary pressures across the business, we face an above average risk that we will have to renegotiate contracts and agreements with suppliers on a more frequent basis. Shortened windows of certainty can impact our ability to plan our business from a supply and profitability perspective and we face greater risk of margin volatility.

There have been no other material changes to the Company’s “Risk Factors” set forth in its Annual Report on Form 10-K for the year ended December 27, 2025.