Cranford, N.J., May 17, 2022 (GLOBE NEWSWIRE) — TOFUTTI BRANDS INC. (OTCQX symbol: TOFB) today released its results for the thirteen weeks ending April 2, 2022.

Tofutti Brands said net sales for the thirteen weeks ended April 2, 2022 increased $313,000, or 10%, to $3,463,000, from net sales of $3,150,000 for the thirteen weeks ended on April 3, 2021. Sales of our vegan cheese products increased to $2,916,000 in the 2022 period from $2,720,000 in the 2021 period. Sales of our frozen desserts and frozen food products, which consist primarily of frozen dessert products, increased to $547,000 in the thirteen weeks ended April 2, 2022 from $430,000 for the thirteen weeks ended April 3, 2021. We expect dollar sales to increase over the remainder of the current year as our price increases take full effect.

Our gross margin decreased to $857,000 for the period ending April 2, 2022 from $1,001,000 for the period ending April 3, 2021. Our gross margin percentage was 25% for the period ending April 2 April 2022, compared to 32% for the period ending April 3. , 2021. The decrease in our gross margin and gross margin percentage was caused by substantial increases in certain ingredients and transportation costs.

We recorded net earnings of $205,000, or $0.04 per share (basic and diluted), for the thirteen weeks ended April 2, 2022, compared to net earnings of $80,000, or $0.02 (basic and diluted) per share, for the thirteen weeks ended April 3, 2021.

As of April 2, 2022, we had approximately $1,589,000 in cash and our working capital was approximately $4,533,000, compared to approximately $1,698,000 in cash and working capital of $4,326,000 as of January 1 2022. The decrease in cash in the thirteen weeks ended April 2, 2022 2022 was primarily due to reduced collections from accounts receivable and increased inventory on hand.

Mr. Steven Kass, Managing Director and Chief Financial Officer of the Company, said: “We are pleased with our continued success in generating cash from operations, which has resulted in our strong cash and working capital position at April 2, 2022. We believe that the production difficulties that affected our revenues in 2021 have been resolved and we are on track to improve our revenues,” concluded Mr. Kass.

About Tofutti Brands Inc.

Founded in 1981, Tofutti Brands Inc. develops and distributes a full line of herbal products. The Company sells over twenty-five (25) non-dairy foods, including cheese products and frozen desserts. Tofutti Brands Inc. is a recognized innovator in the food industry and has developed a full line of delicious and healthy dairy-free foods. Available in the United States and more than fifteen (15) countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy products or wish to maintain a kosher or vegan diet. Tofutti’s product line includes plant-based ice cream pints, cones, Tofutti Cutie® sandwiches and novelty

Forward-looking statements

Some of the statements contained in this press release regarding the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Actual results may vary significantly based on a number of factors, including but not limited to the impact of COVID-19 on the economy and our operations, domestic and international business conditions, competitive , changes in product line or distribution channels, resource constraints encountered in the promotion and development of 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.

Company Contact: Steve Kass
Managing Director/Financial Director
(908) 272-2400
(908) 272-9492 (fax)

tax returns
(in thousands, except per share figures)

Thirteen weeks over
April 2, 2022
Thirteen weeks over
April 3, 2021
Net sales $ 3,463 $ 3,150
Cost of sales 2,606 2,149
Gross profit 857 1,001
Operating costs :
Sale and storage 264 323
Marketing 156 70
Product development costs 40 39
general and administrative 337 447
797 879
Income from operations 60 122
Other income:
SBA loan forgiveness 165
Earnings before interest expense and income taxes 225 122
Interest expense 6
income before taxes 225 116
income tax expense 20 36
Net revenue $ 205 $ 80
Weighted average common shares outstanding:
Basic 5,154 5,154
Diluted 5,154 5,436
Earnings per ordinary share:
Basic and diluted $ 0.04 $ 0.02
Diluted $ 0.04 $ 0.02

Balance sheets
(in thousands, except share and figures per share)

April 2, 2022 January 1, 2022
Current assets:
Species $ 1,589 $ 1,698
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $310 and $435, respectively 1,402 1,336
Inventories 2,412 1,874
Prepaid expenses and other current assets 45 98
Total current assets 5,448 5,006
Operating lease right-of-use assets 175 203
Deferred tax assets 110 112
other assets 19 21
Total assets $ 5,752 $ 5,342
Liabilities and equity
Current liabilities:
SBA loan payable $ $ 165
Taxes payable on income 62 46
Accounts payable 369 122
Increased expenses 484 347
Total current liabilities 915 680
Operating lease debts 65 95
Total responsibilities 980 775
Preferred shares – par value $0.01 per share; authorized 100,000 shares, none issued and outstanding
Common shares – par value $0.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding 52 52
Premium 207 207
Retained earnings 4,513 4,308
Full shareholder equity 4,772 4,567
Total Liabilities and Equity $ 5,752 $ 5,342


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