TOFUTTI ANNOUNCES RESULTS FOR THIRTEEN AND TWENTY-SIX WEEKS ENDED JULY 1, 2023

Cranford, New Jersey - August 15, 2023 - TOFUTTI BRANDS INC. (OTCQX Symbol: TOFB) issued its results for the thirteen and twenty-six weeks ended July 1, 2023 today.

Tofutti Brands reported net sales for the thirteen weeks ended July 1, 2023 decreased by $260,000, or 9%, to $2,719,000, from net sales of $2,979,000 for the thirteen weeks ended July 2, 2022. Sales of our vegan cheese products decreased to $2,283,000 for the thirteen weeks ended July 1, 2023 from $2,526,000 for the thirteen weeks ended July 2, 2022. Sales of our frozen dessert products decreased to $436,000 in the thirteen weeks ended July 1, 2023 from $453,000 for the thirteen weeks ended July 2, 2022. For the twenty-six week period ended July 1, 2023, sales decreased by $1,234,000 or 19% to $5,208,000 compared to $6,442,000 for the twenty-six week period ended July 2, 2022.

Our gross profit increased to $667,000 in the thirteen week period ended July 1, 2023 from $525,000 in the thirteen week period ended July 2, 2022. Our gross profit percentage was 25% for the thirteen week period ended July 1, 2023 compared to 18% for the thirteen week period ended July 2, 2022. Our gross profit decreased to $1,273,000 for the twenty-six week period ended July 1, 2023 from $1,382,000 for the twenty-six week period ended July 2, 2022.

We had net losses of $318,000, or $0.06 per share (basic and diluted) and $420,000 or $0.08 per share (basic and diluted), for the thirteen and twenty-six weeks, respectively, ended July 1, 2023, compared to net losses of $208,000, or $0.04 (basic and diluted) per share, and $3,000 or $0.00 basic and diluted per share for the thirteen and twenty-six weeks ended July 2, 2022, respectively.

As of July 1, 2023, we had approximately $576,000 in cash and our working capital was approximately $3,423,000 compared with approximately $1,072,000 in cash and working capital of $3,625,000 at December 31, 2022. The decrease in cash during the twenty-six weeks ended July 2, 2022 was primarily due to a decrease in payables.

Mr. Steven Kass, Chief Executive and Financial Officer of the Company stated, "While we are disappointed in our sales performance during the first six months of 2023, our cash and available capital balances remain strong and we believe we are positioned for improved results," concluded Mr. Kass.

About Tofutti Brands Inc.

Founded in 1981, Tofutti Brands Inc. develops and distributes a complete line of plant-based products. The Company sells more than twenty-five (25) dairy-free foods including cheese products and frozen desserts. Tofutti Brands Inc. is a proven innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available throughout the United States and in more than fifteen (15) countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy or wish to maintain a kosher or vegan diet. Tofutti's product line includes frozen desserts and Tofutti Cutie® sandwiches, and vegan cheese products, such as Better Than Cream Cheese® and Better Than Sour Cream®. Tofutti also sells a prepared food entrée, Mintz's Blintzes®, made with Tofutti's milk-free cheeses such as Better Than Cream Cheese® and Sour Supreme®. For more information, visit www.tofutti.com.

Forward-Looking Statements

Some of the statements in this press release concerning the Company's future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Actual results may vary significantly based upon a number of factors including, but not limited to business conditions both domestic and international, competition, changes in product mix or distribution channels, resource constraints encountered in promoting and developing new products and other risk factors detailed in the Company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K.

TOFUTTI BRANDS, INC.

Unaudited Condensed Statements of Operations

(in thousands, except per share figures)

Thirteen
weeks ended
July 1, 2023 		Thirteen
weeks ended
July 2, 2022 		Twenty-six
weeks ended
July 1, 2023 		Twenty-six
weeks ended
July 2, 2022
Net sales $ 2,719 $ 2,979 $ 5,208 $ 6,442
Cost of sales 2,052 2,454 3,935 5,060
Gross profit 667 525 1,273 1,382
Operating expenses:
Selling and warehouse 320 309 592 573
Marketing 89 111 184 267
Research and development 56 42 83 82
General and administrative 383 349 686 686
848 811 1,545 1,608
Loss from operations (181 ) (286 ) (272 ) (226 )
Other income:
SBA loan forgiveness - - - 165
Loss before interest expense and income taxes (181 ) (286 ) (272 ) (61 )
Interest expense 1 - 2 -
Loss before income tax (182 ) (286 ) (274 ) (61 )
Income tax expense (benefit) 136 (78 ) 146 (58 )
Net loss $ (318 ) $ (208 ) $ (420 ) $ (3 )
Weighted average common shares outstanding:
Basic 5,154 5,154 5,154 5,154
Diluted 5,154 5,154 5,154 5,154
Loss per common share:
Basic $ (0.06 ) $ (0.04 ) $ (0.08 ) $ (0.00 )
Diluted $ (0.06 ) $ (0.04 ) $ (0.08 ) $ (0.00 )

TOFUTTI BRANDS INC.

Unaudited Condensed Balance Sheets

(in thousands, except share and per share figures)

July 1, 2023 December 31, 2022
Assets
Current assets:
Cash $ 576 $ 1,072
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $490 and $495, respectively 847 1,305
Inventories 2,419 2,463
Prepaid expenses and other current assets 68 80
Total current assets 3,910 4,920
Operating lease right-of-use assets 116 158
Finance lease right-of-use asset 43 53
Deferred tax assets 182 367
Other assets 19 19
Total assets $ 4,270 $ 5,517
Liabilities and Stockholders' Equity
Current liabilities:
Income taxes payable - 41
Accounts payable 152 684
Accrued expenses 320 555
Finance lease liability, current portion 15 15
Total current liabilities 487 1,295
Financing lease liabilities, long-term 31 39
Operating lease liabilities 41 85
Total liabilities 559 1,419
Stockholders' equity:
Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued and outstanding - -
Common stock - par value $.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding 52 52
Additional paid-in capital 296 263
Retained earnings 3,363 3,783
Total stockholders' equity 3,711 4,098
Total liabilities and stockholders' equity $ 4,270 $ 5,517

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Tofutti Brands Inc. published this content on 15 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2023 20:48:04 UTC.