TOFUTTI BRANDS INC
For the period ended Jun 28, 2025. Filed Aug 18, 2025.
View on SEC.govAbout this filing
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 28, 2025 · Filed Aug 18, 2025
TOFBStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-29; filed 2025-05-19.
0001641172-25-011533
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-28; filed 2025-08-18.
0001641172-25-024593
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 46 current paragraphs.
26 unchanged; 11 reworded; 5 added; 1 removed; 0 previous and 4 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 (5)
Current report
Our gross profit decreased to $618,000 for the thirteen weeks ended June 28, 2025 from $667,000 for the thirteen weeks ended June 29, 2024, due primarily due to the reduction of sales from the prior year period. Our gross profit percentage increased slightly to 30% for the thirteen weeks ending June 28, 2025 compared to 29% for the thirteen weeks ending June 29, 2024.
Current report
Twenty-Six Weeks Ended June 28, 2025, Compared with Twenty-Six Weeks Ended June 29, 2024
Current report
Selling expenses decreased by $59,000, or 13%, to $405,000 for the twenty-six weeks ended June 28, 2025 from $464,000 for the twenty-six weeks ended June 29, 2024. Due to decreases in meetings and convention expense of $41,000, bad debt expense of $10,000, and commission expense of $7,000. We anticipate that our selling expense will continue at the same level, or lower, for the balance of 2025.
Current report
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 report
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.
Removed paragraphs (1)
Previous report
In November 2023, the FASB issued ASU 2023-07,Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The standard is effective for annual reporting periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company’s adoption of this standard effective for the fiscal year ending December 28, 2024 resulted in increased disclosures in the notes to its financial statements.
Reworded paragraphs (11)
Previous wording
Net sales for the thirteen weeks ended March 29, 2025 decreased by $621,000, or 28%, from net sales of $2,212,000 for the thirteen weeks ended March 30, 2024 to $1,591,000 for the thirteen weeks ended March 29, 2025. Sales of our vegan cheese products decreased to $1,373,000 in the thirteen weeks ended March 29, 2025 from $1,809,000 in the thirteen weeks ended March 30, 2024, due to increased competition in the vegan cheese category. Sales of our frozen dessert products decreased to $218,000 in the thirteen weeks ended March 29, 2025 from $403,000 for the thirteen weeks ended March 30, 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 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.
Previous wording
Selling expenses increased by $3,000, or 1%, to $217,000 for the thirteen weeks ended March 29, 2025 from $214,000 for the thirteen weeks ended March 30, 2024. Increases in meetings and convention expense of $12,000 and bad debt expense of $8,000 was partially offset by decrease in payroll expense of $6,000 and travel expense of $8,000. We anticipate that our selling expense will continue at the same level, or lower, for the balance of 2025.
Current 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.
Previous wording
Marketing expenses decreased by $13,000, or 10%, to $121,000 for the thirteen weeks ended March 29, 2025 from $134,000 for the thirteen weeks ended March 30, 2024. The decrease was primarily due to decreases in advertising expense of $28,000, which was partially offset by increases in promotion expenses of $7,000, and artwork and plate expense of $10,000. 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 $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.
Previous wording
Product development costs, increased by $2,000, or 5%, to $44,000 for the thirteen weeks ended March 29, 2025 from $42,000 for the thirteen weeks ended March 30, 2024 due to a $15,000 increase in professional fees and outside services expense of $5,000. 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 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.
Previous wording
General and administrative expenses decreased by $14,000, or 4%, to $368,000 for the thirteen weeks ended March 29, 2025 from $382,000 for the thirteen weeks ended March 30, 2024, primarily due to a decrease in stock option expense of $14,000 due to all outstanding options becoming fully vested by end of 2024, real and personal property tax of $5,000, waste removal of $5,000, and payroll expense of $5,000.We anticipate our general and administrative expense will continue at a lower level compared to the 2024.
Current 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.
Previous wording
Income tax expense was $0 for the thirteen weeks ended March 29, 2025 and $0 for the thirteen weeks ended March 30, 2024. There was no income tax expense due to the net loss during the thirteen weeks ended March 29, 2025.
Current 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.
Previous wording
Our gross profit increased significantly to $589,000 for the thirteen weeks ended March 29, 2025 from $474,000 for the thirteen weeks ended March 30, 2024, due principally to significant price increases we implemented at the end of 2024. Our gross profit percentage was 37% for the thirteen weeks ending March 29, 2025 compared to 21% for the thirteen weeks ending March 30, 2024. There was significant ingredient and packaging cost increases that took place in the first quarter of 2024 that were not present in the first quarter of 2025.
Current 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.
Previous wording
Freight out expense, a significant part of our cost of sales, decreased significantly by $60,000, or 34%, to $109,000, for the thirteen weeks ended March 29, 2025 compared with $179,000 for the thirteen weeks March 30, 2024. Freight out expense was 7% of sales for the thirteen weeks ended March 29, 2025 compared to 8% of sales for the thirteen weeks ended March 30, 2024. The significant reduction in freight expense was due to significant decrease in sales for fiscal year 2025. We anticipate that the freight expense, as a percentage of sales, will remain constant for the balance of 2025.
Current 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.
Previous wording
As of March 29, 2025, we had approximately $609,000 in cash and our working capital was approximately 2,738,000, compared with approximately $462,000 in cash and working capital of $2,893,000 at December 30, 2024.
Current 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.
Previous wording
Net cash provided by operating activities for the Thirteen weeks ended March 29, 2025 was $148,000 compared to $482,000 used in operating activities for the Thirteen weeks ended March 30, 2024. Net cash provided by operating activities for the Thirteen weeks ended March 29, 2025 was primarily a result of the lower net loss of $162,000, a decrease in accounts receivable of $449,000, and an increase in current liabilities of $108,000, which were partially offset by an increase in inventories of $265,000.
Current 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.
Previous 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
Current 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.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
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 report — wording carried from elsewhere
Product development costs, increased by $19,000, or 23%, to $83,000 for the twenty-six weeks ended June 28, 2025 from $64,000 for the twenty-six weeks ended June 29, 2024 due to an increase in professional fees and outside services expense of $18,000. 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 report — wording carried from elsewhere
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.