Tofutti Brands (TOFB) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 28, 2017	Jul. 02, 2016
Document And Entity Information
Entity Registrant Name	TOFUTTI BRANDS INC
Entity Central Index Key	730,349
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 5,221,382
Entity Common Stock, Shares Outstanding		5,153,706
Trading Symbol	TOFB
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 132	$ 55
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $370 and $316, respectively	2,626	1,783
Inventories	1,565	1,473
Prepaid expenses	66	74
Deferred costs	100	101
Total current assets	4,489	3,486
Fixed assets (net of accumulated depreciation of $14 and $8, respectively)	15	21
Other assets	16	16
Total Assets	4,520	3,523
Current liabilities:
Notes payable-current	6	5
Accounts payable	1,148	1,117
Accrued expenses	278	248
Deferred revenue	108	113
Total current liabilities	1,540	1,483
Convertible note payable-long term-related party	500
Note payable-long term	10	16
Total liabilities	2,050	1,499
Commitments and contingencies
Stockholders' equity:
Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued
Common stock - par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares at December 31, 2016 and January 2, 2016	52	52
Additional paid-in capital	138	113
Retained earnings	2,280	1,859
Total stockholders' equity	2,470	2,024
Total liabilities and stockholders' equity	$ 4,520	$ 3,523

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and sales promotions on accounts receivables	$ 370	$ 316
Accumulated depreciation on fixed assets	$ 14	$ 8
Preferred stock, par value	$ .01	$ .01
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued
Common stock, par value	$ .01	$ .01
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	5,153,706	5,153,706
Common stock, shares outstanding	5,153,706	5,153,706

Statements of Operations

Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Income Statement [Abstract]
Net sales	$ 14,473	$ 13,764
Cost of sales	9,882	10,166
Gross profit	4,591	3,598
Operating expenses:
Selling and warehousing	1,393	1,550
Marketing	238	357
Product development costs	426	523
General and administrative	2,059	1,888
Total operating expenses	4,116	4,318
Income (loss) from operations	475	(720)
Interest expense- related party	25
Interest expense-other	1	1
Income (loss) before provision for income tax	449	(721)
Income tax expense (benefit)	28	(78)
Net income (loss)	$ 421	$ (643)
Weighted average common shares outstanding:
Basic and diluted	5,154,000	5,154,000
Net income (loss) per common share:
Basic and diluted	$ 0.08	$ (0.12)

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 27, 2014	$ 52		$ 2,502	$ 2,554
Balance, shares at Dec. 27, 2014	5,153,706
Net income (loss)			(643)	(643)
Stock-based compensation		113		113
Balance at Jan. 02, 2016	$ 52	113	1,859	2,024
Balance, shares at Jan. 02, 2016	5,153,706
Net income (loss)			421	421
Stock-based compensation		25		25
Balance at Dec. 31, 2016	$ 52	$ 138	$ 2,280	$ 2,470
Balance, shares at Dec. 31, 2016	5,153,706

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Statement of Cash Flows [Abstract]
Net income (loss)	$ 421	$ (643)
Adjustments to reconcile net loss to net cash flows (used in) provided by operating activities:
Depreciation	6	6
Stock-based compensation expense	25	113
Provision for bad debts and sales promotions	54	41
Change in the unrecognized tax position	19	(82)
Change in assets and liabilities:
Accounts receivable	(897)	90
Inventories	(92)	379
Prepaid expenses	8	(3)
Deferred costs	1	4
Deferred revenue	(5)	(1)
Accounts payable and accrued expenses	42	(184)
Net cash flows used in operating activities	(418)	(280)
CASH FLOWS FROM FINANCING ACTIVITIES:
Financing received through convertible note payable-related party	500
Principal payments on note payable obligation	(5)	(6)
Net cash flows provided by (used in) financing activities	495	(6)
NET CHANGE IN CASH AND CASH EQUIVALENTS	77	(286)
CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR	55	341
CASH AND CASH EQUIVALENTS, AT END OF YEAR	132	55
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid	7	7
Interest paid	$ 26	$ 1

Liquidity and Capital Resources

Liquidity and Capital Resources	12 Months Ended
	Dec. 31, 2016
Liquidity and Capital Resources [Abstract]
Liquidity and Capital Resources	NOTE 1: LIQUIDITY AND CAPITAL RESOURCES At December 31, 2016, Tofutti Brands, Inc. (the “Company”) had approximately $132 in cash compared to $55 at January 2, 2016. Net cash used in operating activities for the year ended December 31, 2016 was $418 compared to $280 used in operating activities for the year ended January 2, 2016. Net cash provided by operating activities for the year ended December 31, 2016 was primarily the result of our net income of $421 offset by increases in accounts receivable and inventory of $897 and $92, respectively. Cash provided by financing activities was $495 for the fiscal year ended December 31, 2016 compared to $6 used in financing activities for the fiscal year ended January 2, 2016. Net cash provided by financing activities for the fiscal year ended December 31, 2016 was the result of a $500 loan from the Company’s Chairman of the Board and Chief Executive Officer. The Company has historically financed operations and met capital requirements primarily through positive cash flow from operations. However, due to the net loss and cash used in operations for the year ended January 2, 2016 in order to provide the Company with additional working capital, on January 6, 2016, David Mintz, the Company’s Chairman and Chief Executive, provided it with a loan of $500,000. Commencing March 31, 2016, interest of 5% is payable on a quarterly basis without compounding. The loan may be prepaid in whole or in part at any time without premium or penalty. The loan is convertible into the Company’s common stock at a conversion price of $4.01 per share, the closing price of its common stock on the NYSE MKT on the date the promissory note was entered into. Initially due December 31, 2017, the loan has been extended until December 31, 2018. The Company’s ability to introduce successful new products may be adversely affected by a number of factors, such as unforeseen cost and expenses, economic environment, increased competition, and other factors beyond the Company’s control. Management cannot provide assurance that the Company will operate profitably in the future, or that it will not require significant additional financing in order to accomplish or exceed the objectives of its business plan. Consequently, the Company’s historical operating results cannot be relied on to be an indicator of future performance, and management cannot predict whether the Company will obtain or sustain positive operating cash flow or generate net income in the future. On September 30, 2016, the Company announced that it had engaged a financial advisor and is pursuing strategic alternatives to enhance shareholder value, including a possible sale or other form of business combination. There can be no assurance that any transaction will be consummated.

Description of the Business and

Description of the Business and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Description of the Business and Summary of Significant Accounting Policies	NOTE 2: DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Operating Segments. Fiscal Year Estimates and Uncertainties Revenue Recognition Concentration of Credit/Sales Risk The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management feels that credit risk beyond the established allowances at January 2, 2016 is limited. During the fiscal years ended December 31, 2016 and January 2, 2016, the Company derived approximately 85% and 83% of its net sales domestically. The remaining sales in both periods were exports to foreign countries. The accounts receivable balance of one customer represented approximately 5% of total accounts receivable at December 31, 2016, and one customer represented 9% of total accounts receivable at January 2, 2016. In addition, a significant portion of the Company’s sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 46% and 44% of the Company’s net sales for the fiscal years ended December 31, 2016 and January 2, 2016. Accounts Receivable - Deferred Revenue and Deferred Costs Cash and Cash Equivalents Inventories The Company purchased approximately 33% and 29% of its finished products from one supplier and 22% and 24% of its finished products from another supplier during the periods ended December 31, 2016 and January 2, 2016, respectively. Income Taxes Stock-based compensation Net Income (Loss) Per Share Fiscal Year Ended December 31, 2016 Fiscal Year Ended January 2, 2016 Net income (loss), numerator, basic and diluted computation $ 421 $ (643 ) Weighted average shares - denominator basic computation 5,154 5,154 Effect of dilutive stock options — — Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Net income (loss) per common share: Basic and diluted $ 0.08 $ (0.12 ) Fair Value of Financial Instruments Freight Costs Advertising Costs Product Development Costs - Recent Accounting Pronouncements – In March 2016, the FASB issued ASU 2016-09, Stock Compensation, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of adopting this guidance on its financial statements. In February 2016, the FASB issued guidance which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. This guidance will be effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. Early adoption is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its financial statements. In November 2015, the FASB issued guidance that eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. This amendment is effective for the Company for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company has not yet adopted this guidance but does not expect the adoption of this guidance will have a material impact on its financial statements and related disclosures. In July 2015, the FASB issued guidance which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling pricings in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of this guidance will have a material impact on its financial statements and related disclosures. In 2015, the FASB issued an accounting standards update which deferred the effective date of ASU 2014-09 for all entities by one year. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the requirements of this update and has not yet determined its impact on its financial statements. In August, 2014, the FASB issued guidance that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern. If such conditions or events exist, disclosures are required that enable users of the financial statements to understand the nature of the conditions or events, management’s evaluation of the circumstances and management’s plans to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. The Company will be required to perform an annual assessment of its ability to continue as a going concern as this standard became effective for it for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. The adoption of this guidance is not expected to impact the Company’s financial position, results of operations or cash flows.

Inventories

Inventories	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	NOTE 3: INVENTORIES Inventories consist of the following: December 31, 2016 January 2, 2016 Finished products $ 1,047 $ 1,007 Raw materials and packaging 518 466 $ 1,565 $ 1,473

Fixed Assets

Fixed Assets	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Fixed Assets	NOTE 4: FIXED ASSETS Fixed assets consist of the following: December 31, 2016 January 2, 2016 Automobile $ 29 $ 29 Less: accumulated depreciation (14 ) (8 ) Fixed assets, net $ 15 $ 21 Depreciation expense as of year-end December 31, 2016 and January 2, 2016 was $6 and $6, respectively.

Stock Options

Stock Options	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Options	NOTE 5: STOCK OPTIONS On June 10, 2014, the shareholders of the Company approved the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan provides for grants of various types of awards that are designed to attract and retain highly qualified personnel who will contribute to the success of the Company and to provide incentives to participants in the 2014 Plan that are linked directly to increases in shareholder value which will therefore inure to the benefit of all shareholders of the Company. The Company intends to rely on a combination of multi-year performance awards, options and other stock-based awards for these purposes. The 2014 Plan made 250,000 shares of Common Stock available for awards. The 2014 Plan also permits performance-based 2014 awards paid under it to be tax deductible under Section 162(m) of the Internal Revenue Code of 1986, as amended, as “performance-based compensation.” As of December 31, 2016, the Company has issued 80,000 non-qualified stock option awards under the 2014 Plan. The following is a summary of stock option activity from January 2, 2016 to December 31, 2016: NON-QUALIFIED OPTIONS Shares Weighted Average Exercise Price ($) Outstanding at January 2, 2016 80,000 4.42 Granted — — Exercised — — Outstanding at December 31, 2016 80,000 4.42 Exercisable at December 31, 2016 53,336 4.42 The following table summarizes information about stock options outstanding at December 31, 2016: Range of Exercise Prices ($) Number Outstanding Weighted Average Remaining Life (in years) Weighted Average Price($) Number Exercisable 4.39-4.46 80,000 3.31 4.42 53,336 The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula. Expected volatilities and risk-free interest rates are based upon the expected life of the grant. The interest rates used are the U.S. Treasury yield curve in effect at the time of the grant. During fiscal 2015, 80,000 options were granted, with 26,668 of the options vesting at the respective grant date, 26,666 vesting in January 2016, and 26,666 vesting in January 2017. As of December 31, 2016, the intrinsic value of the options outstanding and exercisable was immaterial. As of December 31, 2016, there was approximately $69 of total unrecognized compensation cost that will be recognized through December 30, 2017 related to non-vested share-based compensation arrangements granted under the Plan. For the fiscal years ended December 31, 2016 and January 2, 2016 stock compensation expense was $113 and $25, respectively.

Leases

Leases	12 Months Ended
	Dec. 31, 2016
Leases [Abstract]
Leases	NOTE 6: LEASES The Company’s facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 square foot facility houses its administrative offices, a warehouse, walk-in freezer and refrigerator, and a product development laboratory and test kitchen. The Company’s original lease agreement expired on July 1, 1999, but it continues to occupy the premises on a monthly basis. Any changes by either the landlord or the Company remains subject to a six month notification period. The Company currently has no plans to enter into a long-term lease agreement for the facility. Rent expense was $81 in fiscal 2016 and $82 in fiscal 2015. The Company’s management believes that the Cranford facility will continue to satisfy its space requirements for the foreseeable future and that if necessary, such space can be replaced without a significant impact to the business.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 7: INCOME TAXES The components of income tax benefit for the fiscal years ended December 31, 2016 and January 2, 2016 are as follows: December 31, 2016 January 2, 2016 Current: Federal $ 19 $ (62 ) State 9 (16 ) Total income tax expense (benefit) $ 28 $ (78 ) A reconciliation between the expected federal tax expense at the statutory tax rate of 34% and the Company’s actual tax expense for the fiscal years ended December 31, 2016 and January 2, 2016 follows: December 31, 2016 January 2, 2016 Income tax expense computed at federal statutory rate $ 153 $ (245 ) State income taxes, net of federal income tax benefit 9 2 Permanent items 10 9 Change in federal valuation allowance (176 ) 238 Increase (reduction) in unrecognized tax position 19 (82 ) Other 13 — $ 28 $ (78 ) Deferred tax assets for the fiscal years ended December 31, 2016 and January 2, 2016 consist of the following components: December 31, 2016 January 2, 2016 Allowance for doubtful accounts $ 133 $ 114 Inventory 29 31 Federal and state net operating loss 467 685 Other 53 39 Valuation allowance (682 ) (869 ) Deferred tax asset $ — $ — At December 31, 2016, the Company has $1,254 of federal net operating loss carryforwards and $2,058 of state net operating loss carryforwards, which will begin to expire in 2032. Management has concluded that based upon all available evidence it is more likely than not that deferred tax assets will not be utilized. The Company has recorded a decrease in the federal and state valuation allowances in the amount of $187 during the year ended December 31, 2016. The remaining deferred tax asset is offset by the federal unrecorded tax benefit. The Company will recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes. The following table indicates the changes to the Company’s uncertain tax positions for the fiscal years ended December 31, 2016 and January 2, 2016: Balance at December 27, 2014 $ 169 Reduction due to the expiration of the statute of limitations and tax positions related to prior years (52 ) Balance at January 2, 2016 $ 117 Increase due to increase in reserves and tax positions related to prior years 19 Balance at December 31, 2016 136 The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. The Company had approximately $2 and $2 of accrued interest and penalties related to uncertain tax positions at December 31, 2016 and January 2, 2016, respectively. The amount of uncertain tax positions that would affect the effective tax rate if they were recognized is $136. The liability at December 31, 2016 for uncertain tax positions is included in accrued expenses. The Company’s federal and state tax returns are open to examination for the years 2013 to 2016.

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Notes Payable	NOTE 8: NOTES PAYABLE In September 2014, the Company obtained an auto loan of approximately $29 from a bank. The loan requires 60 monthly payments of $0.535 through August 2019. Interest is charged at a fixed nominal rate of 4.64%. The loan is collateralized by the underlying automobile. December 31, 2016 January 2, 2016 Note payable $ 16 $ 21 Less current maturity 6 5 Note payable, net of current maturity 10 $ 16 Minimum estimated future payments on this loan as of December 31, 2016 are as follows: Fiscal Year Ending 2017 6 2018 6 2019 4 Related Party On January 6, 2016, David Mintz, the Company’s Chairman and Chief Executive, provided it with a loan of $500. The loan, which was originally set to expire on December 31, 2017 has been extended to December 31, 2018. No other terms of the loan were modified. Commencing March 31, 2016, interest of 5% is payable on a quarterly basis without compounding. The loan may be prepaid in whole or in part at any time without premium or penalty. The loan is convertible into the Company’s common stock at a conversion price of $4.01 per share, the closing price of the Company’s common stock on the date the promissory note was entered into. In any event of default, as defined in the promissory note, without any action on the part of Mr. Mintz, the interest rate will increase to 12% per annum and the entire principal and interest balance under the loan, and all of the Company’s other obligations under the loan, will be immediately due and payable, and Mr. Mintz will be entitled to seek and institute any and all remedies available to him. December 31, 2016 January 2, 2016 Note payable-related party $ 500 $ — Less current maturity — — Note payable related party, net of current maturity $ 500 $ —

Sales by Geographic Region and

Sales by Geographic Region and Product Category	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Sales by Geographic Region and Product Category	NOTE 9: SALES BY GEOGRAPHIC REGION AND PRODUCT CATEGORY Revenues by geographical region are as follows(in thousands): December 31, 2016 January 2, 2016 Revenues by geography: Americas $ 13,086 $ 12,318 Europe 576 677 Asia Pacific and Africa 327 355 Middle East 484 414 $ 14,473 $ 13,764 Approximately 94% in fiscal 2016 and 93% in fiscal 2015 of the Americas revenue is attributable to the United States. All of the Company’s assets are located in the United States. Net sales by major product category (in thousands): December 31, 2016 January 2, 2016 Frozen Desserts $ 3,449 $ 3,866 Cheeses 10,863 9,311 Frozen Foods 161 587 $ 14,473 $ 13,764

Description of the Business a16

Description of the Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Description of Business	Description of Business
Operating Segments	Operating Segments.
Fiscal Year	Fiscal Year
Estimates and Uncertainties	Estimates and Uncertainties
Revenue Recognition	Revenue Recognition
Concentration of Credit/Sales Risk	Concentration of Credit/Sales Risk The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management feels that credit risk beyond the established allowances at January 2, 2016 is limited. During the fiscal years ended December 31, 2016 and January 2, 2016, the Company derived approximately 85% and 83% of its net sales domestically. The remaining sales in both periods were exports to foreign countries. The accounts receivable balance of one customer represented approximately 5% of total accounts receivable at December 31, 2016, and one customer represented 9% of total accounts receivable at January 2, 2016. In addition, a significant portion of the Company’s sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 46% and 44% of the Company’s net sales for the fiscal years ended December 31, 2016 and January 2, 2016.
Accounts Receivable	Accounts Receivable -
Deferred Revenue and Deferred Costs	Deferred Revenue and Deferred Costs
Cash and Cash Equivalents	Cash and Cash Equivalents
Inventories	Inventories The Company purchased approximately 33% and 29% of its finished products from one supplier and 22% and 24% of its finished products from another supplier during the periods ended December 31, 2016 and January 2, 2016, respectively.
Income Taxes	Income Taxes
Stock-based Compensation	Stock-based compensation
Net Income (Loss) Per Share	Net Income (Loss) Per Share Fiscal Year Ended December 31, 2016 Fiscal Year Ended January 2, 2016 Net income (loss), numerator, basic and diluted computation $ 421 $ (643 ) Weighted average shares - denominator basic computation 5,154 5,154 Effect of dilutive stock options — — Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Net income (loss) per common share: Basic and diluted $ 0.08 $ (0.12 )
Fair Value of Financial Instruments	Fair Value of Financial Instruments
Freight Costs	Freight Costs
Advertising Costs	Advertising Costs
Product Development Costs	Product Development Costs -
Recent Accounting Pronouncements	Recent Accounting Pronouncements – In March 2016, the FASB issued ASU 2016-09, Stock Compensation, which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company is currently evaluating the impact of adopting this guidance on its financial statements. In February 2016, the FASB issued guidance which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. This guidance will be effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. Early adoption is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. The Company is currently evaluating the impact of adopting the new leases standard on its financial statements. In November 2015, the FASB issued guidance that eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. The amendments apply to all organizations that present a classified balance sheet. This amendment is effective for the Company for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company has not yet adopted this guidance but does not expect the adoption of this guidance will have a material impact on its financial statements and related disclosures. In July 2015, the FASB issued guidance which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU 2015-11 defines net realizable value as estimated selling pricings in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of this guidance will have a material impact on its financial statements and related disclosures. In 2015, the FASB issued an accounting standards update which deferred the effective date of ASU 2014-09 for all entities by one year. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently evaluating the requirements of this update and has not yet determined its impact on its financial statements. In August, 2014, the FASB issued guidance that requires management to evaluate whether there are conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern. If such conditions or events exist, disclosures are required that enable users of the financial statements to understand the nature of the conditions or events, management’s evaluation of the circumstances and management’s plans to mitigate the conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. The Company will be required to perform an annual assessment of its ability to continue as a going concern as this standard became effective for it for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. The adoption of this guidance is not expected to impact the Company’s financial position, results of operations or cash flows.

Description of the Business a17

Description of the Business and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of Computation of Basic and Diluted Loss Per Share	Fiscal Year Ended December 31, 2016 Fiscal Year Ended January 2, 2016 Net income (loss), numerator, basic and diluted computation $ 421 $ (643 ) Weighted average shares - denominator basic computation 5,154 5,154 Effect of dilutive stock options — — Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Net income (loss) per common share: Basic and diluted $ 0.08 $ (0.12 )

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	December 31, 2016 January 2, 2016 Finished products $ 1,047 $ 1,007 Raw materials and packaging 518 466 $ 1,565 $ 1,473

Fixed Assets (Tables)

Fixed Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Schedule of Fixed Assets	Fixed assets consist of the following: December 31, 2016 January 2, 2016 Automobile $ 29 $ 29 Less: accumulated depreciation (14 ) (8 ) Fixed assets, net $ 15 $ 21

Stock Options (Tables)

Stock Options (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule for Stock Option Activity	The following is a summary of stock option activity from January 2, 2016 to December 31, 2016: NON-QUALIFIED OPTIONS Shares Weighted Average Exercise Price ($) Outstanding at January 2, 2016 80,000 4.42 Granted — — Exercised — — Outstanding at December 31, 2016 80,000 4.42 Exercisable at December 31, 2016 53,336 4.42
Schedule for Information of Stock Options Outstanding	The following table summarizes information about stock options outstanding at December 31, 2016: Range of Exercise Prices ($) Number Outstanding Weighted Average Remaining Life (in years) Weighted Average Price($) Number Exercisable 4.39-4.46 80,000 3.31 4.42 53,336

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Components of Income Tax Expense (benefit)	The components of income tax benefit for the fiscal years ended December 31, 2016 and January 2, 2016 are as follows: December 31, 2016 January 2, 2016 Current: Federal $ 19 $ (62 ) State 9 (16 ) Total income tax expense (benefit) $ 28 $ (78 )
Schedule of Reconciliation Between The Expected Federal Tax Expense at Statutory Tax Rate	A reconciliation between the expected federal tax expense at the statutory tax rate of 34% and the Company’s actual tax expense for the fiscal years ended December 31, 2016 and January 2, 2016 follows: December 31, 2016 January 2, 2016 Income tax expense computed at federal statutory rate $ 153 $ (245 ) State income taxes, net of federal income tax benefit 9 2 Permanent items 10 9 Change in federal valuation allowance (176 ) 238 Increase (reduction) in unrecognized tax position 19 (82 ) Other 13 — $ 28 $ (78 )
Schedule of Deferred Tax Assets	Deferred tax assets for the fiscal years ended December 31, 2016 and January 2, 2016 consist of the following components: December 31, 2016 January 2, 2016 Allowance for doubtful accounts $ 133 $ 114 Inventory 29 31 Federal and state net operating loss 467 685 Other 53 39 Valuation allowance (682 ) (869 ) Deferred tax asset $ — $ —
Schedule of Changes to Company's Uncertain Tax Positions	The following table indicates the changes to the Company’s uncertain tax positions for the fiscal years ended December 31, 2016 and January 2, 2016: Balance at December 27, 2014 $ 169 Reduction due to the expiration of the statute of limitations and tax positions related to prior years (52 ) Balance at January 2, 2016 $ 117 Increase due to increase in reserves and tax positions related to prior years 19 Balance at December 31, 2016 136

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of Note Payable	The loan is collateralized by the underlying automobile. December 31, 2016 January 2, 2016 Note payable $ 16 $ 21 Less current maturity 6 5 Note payable, net of current maturity 10 $ 16
Schedule of Minimum Estimated Future Payments on Loan	Minimum estimated future payments on this loan as of December 31, 2016 are as follows: Fiscal Year Ending 2017 6 2018 6 2019 4
Schedule of Related Party Notes Payable	Mintz will be entitled to seek and institute any and all remedies available to him. December 31, 2016 January 2, 2016 Note payable-related party $ 500 $ — Less current maturity — — Note payable related party, net of current maturity $ 500 $ —

Sales by Geographic Region an23

Sales by Geographic Region and Product Category (Tables)	12 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Revenues by Geographical Region	Revenues by geographical region are as follows(in thousands): December 31, 2016 January 2, 2016 Revenues by geography: Americas $ 13,086 $ 12,318 Europe 576 677 Asia Pacific and Africa 327 355 Middle East 484 414 $ 14,473 $ 13,764
Summary of Net Sales by Major Product Category	Net sales by major product category (in thousands): December 31, 2016 January 2, 2016 Frozen Desserts $ 3,449 $ 3,866 Cheeses 10,863 9,311 Frozen Foods 161 587 $ 14,473 $ 13,764

Liquidity and Capital Resourc24

Liquidity and Capital Resources (Detail Narrative) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Dec. 27, 2014
Cash and cash equivalents	$ 132	$ 55	$ 341
Net cash used in operating activities	(418)	(280)
Net income (loss)	421	(643)
Change in accounts payable and accrued expenses	42	(184)
Partially offset by increase in accounts receivable	897
Partially offset by increase in inventory	92
Net cash flows used in financing activities	495	6
Financing received through convertible note payable-related party	$ 500
David Mintz [Member]
Loan payable		$ 500,000
Loan payable due date		Dec. 31, 2017
Loan payable commencing date		Mar. 31, 2016
Loan payable interest rate		5.00%
Loan convertible into common stock at conversion price per share		$ 4.01

Description of the Business a25

Description of the Business and Summary of Significant Accounting Policies (Detail Narrative) $ in Thousands	Jan. 02, 2016	Dec. 31, 2016USD ($)Segmentshares	Jan. 02, 2016USD ($)shares
Number of business segments | Segment		1
Cash, FDIC insured amount		$ 250
Percentage of tax benefits likelihood		greater than 50 percent
Anti-dilutive securities | shares		80,000	80,000
Freight costs		$ 943	$ 857
Advertising costs		158	236
Product development costs		$ 426	$ 523
Sales Revenue, Goods, Net [Member] | Geographic Concentration Risk [Member]
Percentage of concentration risk		85.00%	83.00%
Sales Revenue, Goods, Net [Member] | Distributors as Group Member
Percentage of concentration risk		46.00%	44.00%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member]
Percentage of concentration risk		5.00%	9.00%
Finished Products [Member] | Supplier Concentration Risk [Member] | Supplier One [Member]
Percentage of concentration risk	29.00%	33.00%
Finished Products [Member] | Supplier Concentration Risk [Member] | Supplier Two [Member]
Percentage of concentration risk	24.00%	22.00%

Description of the Business a26

Description of the Business and Summary of Significant Accounting Policies - Schedule of Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Accounting Policies [Abstract]
Net income (loss), basic and diluted	$ 421	$ (643)
Weighted average shares - denominator basic computation	5,154	5,154
Effect of dilutive stock options
Weighted average shares, as adjusted - denominator diluted computation	5,154	5,154
Net income (loss) per common share: Basic and diluted	$ 0.08	$ (0.12)

Inventories - Schedule of Inven

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Inventory Disclosure [Abstract]
Finished products	$ 1,047	$ 1,007
Raw materials and packaging	518	466
Inventories, net	$ 1,565	$ 1,473

Fixed Assets (Detail Narrative)

Fixed Assets (Detail Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 6	$ 6

Fixed Assets - Schedule of Fixe

Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Less: accumulated depreciation	$ (14)	$ (8)
Fixed assets, net	15	21
Automobile [Member]
Fixed assets, gross	$ 29	$ 29

Stock Options (Details Narrativ

Stock Options (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jun. 10, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option issued under award	80,000	80,000
Options granted		80,000
Expected dividends		0.00%
Expected term		5 years
Total unrecognized compensation cost of non-vested share-based awards	$ 69
Stock compensation expense	$ 25	$ 113
Share-based Compensation Award, Tranche One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting		26,668
Share-based Compensation Award, Tranche Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting		26,666
Share-based Compensation Award, Tranche Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting		26,666
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		69.80%
Risk-free rate		1.30%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		71.40%
Risk-free rate		1.80%
Equity Incentive Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available for awards			250,000
Equity Incentive Plan 2014 [Member] | Non Qualified Stock Option Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option issued under award		80,000
Options granted	80,000

Stock Options - Schedule for St

Stock Options - Schedule for Stock Option Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares Outstanding Beginning Balance	80,000
Shares Granted		80,000
Shares Exercised
Shares Outstanding Ending Balance	80,000	80,000
Shares Exercisable	53,336
Weighted Average Exercise Price Outstanding Beginning Balance	$ 4.42
Weighted Average Exercise Price Granted
Weighted Average Exercise Price Exercised
Weighted Average Exercise Price Outstanding Ending Balance	4.42	$ 4.42
Weighted Average Exercise Price Exercisable	$ 4.42

Stock Options - Schedule for In

Stock Options - Schedule for Information of Stock Options Outstanding (Details)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Range of Exercise Prices lower limit	$ 4.39
Range of Exercise Prices upper limit	$ 4.46
Number Outstanding | shares	80,000
Weighted Average Remaining Life	3 years 3 months 22 days
Weighted Average Exercise Price	$ 4.42
Number Exercisable | shares	53,336

Leases (Details Narrative)

Leases (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2016USD ($)ft²	Jan. 02, 2016USD ($)
Leases Details Narrative
Area of square foot | ft²	6,200
Original lease agreement expire date	Jul. 1, 1999
Rent expense | $	$ 81	$ 82

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Federal tax expense, statutory tax rate	34.00%
Operating loss carry forwards expiration	begin to expire in 2032
decrease in the federal and state valuation allowances	$ 187
Percentage of tax benefits likelihood	greater than 50 percent
Accrued interest and penalties related to uncertain tax positions	$ 2	$ 2
Uncertain tax positions that would affect the effective tax rate	136
Federal [Member]
Net operating loss carryforwards	1,254
State [Member]
Net operating loss carryforwards	$ 2,058

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Income Tax Expense (benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Income Tax Disclosure [Abstract]
Current Federal	$ 19	$ (62)
Current State	9	(16)
Total income tax expense (benefit)	$ 28	$ (78)

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation Between The Expected Federal Tax Expense at Statutory Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Income Tax Disclosure [Abstract]
Income tax expense computed at federal statutory rate	$ 153	$ (245)
State income taxes, net of federal income tax benefit	9	2
Permanent items	10	9
Change in federal valuation allowance	(176)	238
Increase (reduction) in unrecognized tax position	19	(82)
Other	13
Total income tax expense (benefit)	$ 28	$ (78)

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Income Tax Disclosure [Abstract]
Allowance for doubtful accounts	$ 133	$ 114
Inventory	29	31
Federal and state net operating loss	467	685
Other	53	39
Valuation allowance	(682)	(869)
Deferred tax asset

Income Taxes - Schedule of Chan

Income Taxes - Schedule of Changes to Company's Uncertain Tax Positions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Income Tax Disclosure [Abstract]
Beginning Balance	$ 117	$ 169
Reduction due to the expiration of the statute of limitations and tax positions related to prior years		(52)
Increase due to increase in reserves and tax positions related to prior years	19
Ending Balance	$ 136	$ 117

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) $ / shares in Units, $ in Thousands	Jan. 06, 2016USD ($)$ / shares	Sep. 30, 2014USD ($)Installment	Dec. 31, 2016USD ($)	Jan. 02, 2016USD ($)
Note payable, principle amount			$ 16	$ 21
Chairman and Chief Executive [Member]
Fixed interest rate	5.00%
Proceeds from related party debt	$ 500
Loan payable due date	Dec. 31, 2018
Loan convertible into common stock at conversion price per share | $ / shares	$ 4.01
Interest rate increase percent	12.00%
Auto Loan [Member]
Note payable, principle amount		$ 29
Monthly payments | Installment		60
Frequency of periodic payment		Monthly
Periodic payment on note payable		Requires 60 monthly payments of $0.535 through August 2019
Fixed interest rate		4.64%

Notes Payable - Schedule of Not

Notes Payable - Schedule of Note Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Debt Disclosure [Abstract]
Note payable-related party	$ 16	$ 21
Less current maturity	6	5
Note payable related party, net of current maturity	$ 10	$ 16

Notes Payable - Schedule of Min

Notes Payable - Schedule of Minimum Estimated Future Payments on Loan (Details) $ in Thousands	Dec. 31, 2016USD ($)
Debt Disclosure [Abstract]
2,017	$ 6
2,018	6
2,019	$ 4

Notes Payable - Schedule of Rel

Notes Payable - Schedule of Related Party Note Payable (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Debt Disclosure [Abstract]
Note payable-related party	$ 500
Less current maturity
Note payable related party, net of current maturity	$ 500

Sales by Geographic Region an43

Sales by Geographic Region and Product Category (Details Narrative)	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Americas [Member]
Percentage of revenue	94.00%	93.00%

Sales by Geographic Region an44

Sales by Geographic Region and Product Category - Schedule of Revenues by Geographical Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	$ 14,473	$ 13,764
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	13,086	12,318
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	576	677
Asia Pacific and Africa [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	327	355
Middle East [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geography	$ 484	$ 414

Sales by Geographic Region an45

Sales by Geographic Region and Product Category - Schedule of Net Sales by Major Product Category (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 14,473	$ 13,764
Frozen Desserts [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	3,449	3,866
Cheeses [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	10,863	9,311
Frozen Foods [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 161	$ 587