Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 28, 2019 | Nov. 08, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | TOFUTTI BRANDS INC | |
Entity Central Index Key | 0000730349 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 28, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-28 | |
Entity's Reporting Status Current | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,153,706 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 527 | $ 558 |
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $536 and $431, respectively | 2,067 | 2,128 |
Inventories, net | 1,808 | 1,714 |
Prepaid expenses and other current assets | 51 | 82 |
Deferred costs | 54 | |
Total current assets | 4,453 | 4,536 |
Deferred tax assets | 217 | 217 |
Fixed assets (net of accumulated depreciation of $2 and $0) | 148 | 121 |
Operating lease right-of-use assets | 277 | |
Other assets | 19 | 16 |
Total assets | 5,114 | 4,890 |
Current liabilities: | ||
Accounts payable | 429 | 368 |
Accrued expenses | 331 | 272 |
Total current liabilities | 760 | 640 |
Convertible note payable-long term-related party | 500 | 500 |
Operating lease liabilities | 183 | |
Total liabilities | 1,443 | 1,140 |
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 September 28, 2019 and December 29, 2018 | 52 | 52 |
Additional paid-in capital | 207 | 207 |
Retained earnings | 3,412 | 3,491 |
Total stockholders' equity | 3,671 | 3,750 |
Total liabilities and stockholders' equity | $ 5,114 | $ 4,890 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts and sales promotions on accounts receivable | $ 536 | $ 431 |
Accumulated depreciation on fixed assets | $ 2 | $ 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000 | 100,000 |
Preferred stock, shares issued | ||
Common stock, par value | $ 0.01 | $ 0.01 |
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 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,122 | $ 2,841 | $ 9,766 | $ 10,058 |
Cost of sales | 2,230 | 2,013 | 7,031 | 6,936 |
Gross profit | 892 | 828 | 2,735 | 3,122 |
Operating expenses: | ||||
Selling and warehouse | 331 | 321 | 1,049 | 1,024 |
Marketing | 79 | 70 | 256 | 208 |
Research and development | 89 | 77 | 246 | 291 |
General and administrative | 427 | 450 | 1,238 | 1,255 |
Total operating expenses | 926 | 918 | 2,789 | 2,778 |
Income (loss) from operations | (34) | (90) | (54) | 344 |
Interest expense | 6 | 6 | 19 | 19 |
Income (loss) before income tax | (40) | (96) | (73) | 325 |
Income tax expense | 6 | 5 | ||
Net income (loss) | $ (40) | $ (96) | $ (79) | $ 320 |
Weighted average common shares outstanding: | ||||
Basic and diluted | 5,154,000 | 5,154,000 | 5,154,000 | 5,154,000 |
Earnings (loss) per common share: | ||||
Basic and diluted | $ (0.01) | $ (0.02) | $ (0.02) | $ 0.06 |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 30, 2017 | $ 52 | $ 207 | $ 2,984 | $ 3,243 |
Balance, shares at Dec. 30, 2017 | ||||
Net income (loss) | 326 | 326 | ||
Balance at Mar. 31, 2018 | $ 52 | 207 | 3,310 | 3,569 |
Balance, shares at Mar. 31, 2018 | ||||
Balance at Dec. 30, 2017 | $ 52 | 207 | 2,984 | 3,243 |
Balance, shares at Dec. 30, 2017 | ||||
Net income (loss) | 320 | |||
Balance at Sep. 29, 2018 | $ 52 | 207 | 3,304 | 3,563 |
Balance, shares at Sep. 29, 2018 | ||||
Balance at Mar. 31, 2018 | $ 52 | 207 | 3,310 | 3,569 |
Balance, shares at Mar. 31, 2018 | ||||
Net income (loss) | 90 | 90 | ||
Balance at Jun. 30, 2018 | $ 52 | 207 | 3,400 | 3,659 |
Balance, shares at Jun. 30, 2018 | ||||
Net income (loss) | (96) | (96) | ||
Balance at Sep. 29, 2018 | $ 52 | 207 | 3,304 | 3,563 |
Balance, shares at Sep. 29, 2018 | ||||
Balance at Dec. 29, 2018 | $ 52 | 207 | 3,491 | 3,750 |
Balance, shares at Dec. 29, 2018 | ||||
Net income (loss) | 23 | 23 | ||
Balance at Mar. 30, 2019 | $ 52 | 207 | 3,514 | 3,773 |
Balance, shares at Mar. 30, 2019 | ||||
Balance at Dec. 29, 2018 | $ 52 | 207 | 3,491 | 3,750 |
Balance, shares at Dec. 29, 2018 | ||||
Net income (loss) | (79) | |||
Balance at Sep. 28, 2019 | $ 52 | 207 | 3,412 | 3,671 |
Balance, shares at Sep. 28, 2019 | ||||
Balance at Mar. 30, 2019 | $ 52 | 207 | 3,514 | 3,773 |
Balance, shares at Mar. 30, 2019 | ||||
Net income (loss) | (62) | (62) | ||
Balance at Jun. 29, 2019 | $ 52 | 207 | 3,452 | 3,711 |
Balance, shares at Jun. 29, 2019 | ||||
Net income (loss) | (40) | (40) | ||
Balance at Sep. 28, 2019 | $ 52 | $ 207 | $ 3,412 | $ 3,671 |
Balance, shares at Sep. 28, 2019 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Statement of Cash Flows [Abstract] | ||
Cash used in operating activities, net | $ (2) | $ (807) |
Cash used in investing activities, net | (29) | (132) |
Cash used in financing activities, net | (10) | |
Net decrease in cash and cash equivalents | (31) | (949) |
Cash and cash equivalents at beginning of period | 558 | 1,414 |
Cash and cash equivalents at end of period | 527 | 465 |
Supplemental cash flow information: | ||
Income taxes paid | 6 | 5 |
Interest paid | 13 | 13 |
Operating cash flows: | ||
Cash paid for the amounts in the measurement of operating lease liability | 74 | |
Right of use assets obtained in exchange for the operating lease liability | $ 362 |
Liquidity and Capital Resources
Liquidity and Capital Resources | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Capital Resources | Note 1: Liquidity and Capital Resources At September 28, 2019, Tofutti Brands, Inc. (“Tofutti” or the “Company”) had approximately $527 in cash compared to $558 at December 29, 2018. Net cash used in operating activities was $2 for the thirty-nine weeks ended September 28, 2019 compared to $807 used in operating activities for the thirty-nine weeks ended September 29, 2018. Net cash used in investing activities was $29 for the thirty-nine weeks ended September 28, 2019 compared to $132 used in investing activities for the thirty-nine weeks ended September 29, 2018. Net cash used in financing activities was $0 for the thirty-nine weeks ended September 28, 2019 compared to $10 used in financing activities for the thirty-nine weeks ended September 29, 2018. The Company has historically financed operations and met capital requirements primarily through positive cash flows from operations. However, due to net losses and cash used in operations in prior years, David Mintz, the Company’s Chairman and Chief Executive, provided a loan of $500 to the Company on January 6, 2016 in order to provide the Company with additional working capital. Initially due December 31, 2017, the loan has been extended until December 31, 2020. 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. 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. 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. |
Description of Business
Description of Business | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Note 2: Description of Business Tofutti is engaged in one business segment, the development, production and marketing of non-dairy frozen desserts and other food products. The Company reports on operating segments in accordance with standards for public companies to report information about operating segments and geographic distribution of sales in financial statements. While the Company has multiple products and or product groups, its goal is to focus on non-dairy foods. The Company’s chief operating decision maker tracks revenue by product groups, but does not track more granular operating results by product group as many of the ingredients are similar among these groups. As a result, the Company has determined that it has only one operating segment, which is the development, production and marketing of soy-based, non-dairy frozen desserts, frozen food products and soy-based cheese products. |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 28, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 3: Basis of Presentation The accompanying financial information is unaudited, but, in the opinion of management, reflects all adjustments (which include only normally recurring adjustments unless otherwise indicated) necessary to present fairly the Company’s financial position, operating results and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed balance sheet amounts as of December 29, 2018 are derived from our audited financial statements for the year ended December 29, 2018. The financial information should be read in conjunction with the audited financial statements and notes thereto for the year ended December 29, 2018 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. The results of operations for the thirteen and thirty-nine week periods ended September 28, 2019 are not necessarily indicative of the results to be expected for the full year or any other period. The Company’s fiscal year is either a fifty-two or fifty-three week period which ends on the Saturday closest to December 31 st |
New and Recently Adopted Accoun
New and Recently Adopted Accounting Standards | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New and Recently Adopted Accounting Standards | Note 4: New and Recently Adopted Accounting Standards The Company considers the applicability and impact of all Accounting Standard Updates (“ASUs”). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s balance sheets or statements of operations. In February 2016, the FASB established Topic 842, Leases, by issuing ASU 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU 2018-10, Codification Improvements to Topic 842, Leases; and ASU 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company adopted the new standard on December 30, 2018, the first day of fiscal 2019. The Company used the modified retrospective transition approach with the effective date as the date of initial application. Consequently, financial information will not be updated, and the disclosures required under the new standard will not be provided for dates and periods before December 30, 2018. The new standard provides several optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits us not to reassess under the new standard the prior conclusions about lease identification, lease classification and initial direct costs. The adoption of the standard resulted in a material effect on the Company’s financial statements with a balance sheet recognition of additional lease assets of approximately $346 and lease liabilities of approximately $362 upon adoption. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company currently has elected the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in separate lease and non-lease components for all the Company’s leases. |
Inventories
Inventories | 9 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5: Inventories The composition of inventories is as follows: September 28, December 29, Finished products $ 1,016 $ 1,061 Raw materials and packaging 792 653 $ 1,808 $ 1,714 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6: Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 28, 2019 | |
Earnings (loss) per common share: | |
Earnings (Loss) Per Share | Note 7: Earnings (Loss) Per Share Basic earnings (loss) per common share has been computed by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted earnings (loss) per common share for the periods ended September 28, 2019 and September 29, 2018 have been computed by dividing net income (loss) by the weighted average number of common shares outstanding and common stock equivalents, which include options and convertible notes outstanding during the same period. Not included in the calculation for September 28, 2019 and September 29, 2018 were 80,000 non-qualified options granted to directors and a convertible note payable, as a consequence of their anti-dilutive effect. The following table sets forth the computation of basic and diluted (loss) earnings per share: Thirteen weeks ended September 28, 2019 Thirteen weeks ended September 29, 2018 Thirty-nine weeks ended September 28, 2018 Thirty-nine weeks ended September 29, 2018 Numerator Net income(loss)-basic and diluted $ (40 ) $ (96 ) $ (79 ) $ 320 Denominator Weighted average common shares- basic and diluted 5,153,706 5,153,706 5,153,706 5,153,706 Earnings (loss) per common share-basic and diluted $ (0.01 ) $ (0.02 ) $ (0.02 ) $ 0.06 |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Note 8: Fixed Assets Fixed assets consist of the following: September 28, December 29, Plant equipment $ 150 $ 121 Less: accumulated depreciation 2 — Fixed assets, net $ 148 $ 121 Depreciation expense for the thirteen and thirty-nine weeks ended September 28, 2019 was $2 and $2, respectively. Depreciation expense for the thirteen and thirty-nine weeks ended September 29, 2018 was $2 and $5, respectively. |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share Based Compensation | Note 9: Share Based Compensation 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 September 28, 2019, the Company has issued 80,000 non-qualified stock option awards under the 2014 Plan. |
Note Payable
Note Payable | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Note Payable | Note 10: Note Payable 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, 2020. 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, at the option of the holder. 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. September 28, 2019 December 29, 2018 Note payable-related party $ 500 $ 500 Less current maturity — — Note payable related party, net of current maturity $ 500 $ 500 |
Revenues
Revenues | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Revenues | Note 11: Revenues Performance obligations relating to the delivery of food products are satisfied when the goods are shipped to the customer and net of all applicable discounts, as follows: Payment term discounts, off-invoice allowance, manufacturer chargeback, freight allowance, spoilage discounts, and product returns. Revenues by geographical region are as follows: Thirteen Weeks ended September 28, 2019 Thirteen Weeks ended September 29, 2018 Thirty-Nine Weeks ended September 28, 2019 Thirty-Nine Weeks ended September 29, 2018 Revenues by geography: Americas $ 2,987 $ 2,642 $ 9,086 $ 9,016 Europe — 96 207 326 Asia Pacific and Africa 61 60 235 238 Middle East 74 43 238 478 $ 3,122 $ 2,841 $ 9,766 $ 10,058 Sales in the United States accounted for approximately 86% and 89% of revenues in the Americas in the 2019 and 2018 thirteen week periods, respectively. Sales in the United States accounted for approximately 86% and 90% of revenues in the Americas in the 2019 and 2018 thirty-nine week periods, respectively. All of the Company’s assets are located in the United States. Net sales by major product category: Thirteen Weeks ended September 28, 2019 Thirteen Weeks ended September 29, 2018 Thirty-Nine Weeks ended September 28, 2019 Thirty-Nine Weeks ended September 29, 2018 Cheeses $ 2,754 $ 2,311 $ 8,306 $ 8,184 Frozen Desserts and Foods 368 530 1,460 1,874 $ 3,122 $ 2,841 $ 9,766 $ 10,058 Timing of revenue recognition: Thirteen Weeks ended September 28, 2019 Thirteen Weeks ended September 29, 2018 Thirty-Nine Weeks ended September 28, 2019 Thirty-Nine Weeks ended September 29, 2018 Products transferred at a point in time $ 3,122 $ 2,841 $ 9,766 $ 10,058 |
Leases
Leases | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Leases | Note 12: Leases Under Topic 842, operating lease expense is generally recognized evenly over the term of the lease. The Company has operating leases primarily consisting of facilities with remaining lease terms of approximately two to four years. The Company does not have the option to terminate the leases early. The Company’s facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 square foot facility houses the Company’s administrative offices, a warehouse, walk-in freezer and refrigerator, and a product development laboratory and test kitchen. The lease agreement expired in 1999, but the Company continues to occupy the premises under the terms of that agreement, subject to a six-month notification period from the Company and the landlord with respect to any changes. The Company currently has no plans to enter into a long-term lease agreement for the facility. Rent expense was $19 and $58 for the thirteen and thirty-nine weeks ended September 28, 2019, respectively, compared to $20 and $60 for the thirteen and thirty-nine weeks ended September 29, 2018. Management believes that the Cranford facility will continue to satisfy the Company’s space requirements for the foreseeable future. The Company rents warehouse storage space at various outside facilities. Outside warehouse expenses amounted to $121 and $331 for the thirteen and thirty-nine weeks ended September 28, 2019, compared to $100 and $331 for the thirteen and thirty-nine weeks ended September 29, 2018, respectively. Leases with an initial term of twelve months or less are not recorded on the balance sheet. For lease agreements entered into or reassessed after the adoption of Topic 842, the Company has combined the lease and non-lease components in determining the lease liabilities and ROU assets. The Company’s lease agreements generally do not provide an implicit borrowing rate; therefore, an internal incremental borrowing rate is determined based on information available at lease commencement date for purposes of determining the present value of lease payments. The Company used the incremental borrowing rate on December 29, 2018 of 5.5% for all leases that commenced prior to that date. ROU lease assets and lease liabilities for our operating leases were recorded in the condensed balance sheet as follows: As of September 28, 2019 Operating lease right-of-use assets $ 277 Total ROU lease assets 277 Accounts payable 105 Operating lease liabilities 183 Total lease liability $ 288 Weighted average remaining lease term (in years) 2.8 Weighted average discount rate 5.5 % Future lease payments included in the measurement of lease liabilities on the condensed balance sheet as of September 28, 2019, for the following five fiscal years and thereafter are as follows: As of September 28, 2019 2019 – Remaining $ 33 2020 118 2021 118 2022 36 2023 6 Total future minimum lease payments 311 Present value adjustment 23 Total $ 288 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The composition of inventories is as follows: September 28, December 29, Finished products $ 1,016 $ 1,061 Raw materials and packaging 792 653 $ 1,808 $ 1,714 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Earnings (loss) per common share: | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted (loss) earnings per share: Thirteen weeks ended September 28, 2019 Thirteen weeks ended September 29, 2018 Thirty-nine weeks ended September 28, 2018 Thirty-nine weeks ended September 29, 2018 Numerator Net income(loss)-basic and diluted $ (40 ) $ (96 ) $ (79 ) $ 320 Denominator Weighted average common shares- basic and diluted 5,153,706 5,153,706 5,153,706 5,153,706 Earnings (loss) per common share-basic and diluted $ (0.01 ) $ (0.02 ) $ (0.02 ) $ 0.06 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following: September 28, December 29, Plant equipment $ 150 $ 121 Less: accumulated depreciation 2 — Fixed assets, net $ 148 $ 121 |
Note Payable (Tables)
Note Payable (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Related Party Notes Payable | September 28, 2019 December 29, 2018 Note payable-related party $ 500 $ 500 Less current maturity — — Note payable related party, net of current maturity $ 500 $ 500 |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographical Region | Revenues by geographical region are as follows: Thirteen Weeks ended September 28, 2019 Thirteen Weeks ended September 29, 2018 Thirty-Nine Weeks ended September 28, 2019 Thirty-Nine Weeks ended September 29, 2018 Revenues by geography: Americas $ 2,987 $ 2,642 $ 9,086 $ 9,016 Europe — 96 207 326 Asia Pacific and Africa 61 60 235 238 Middle East 74 43 238 478 $ 3,122 $ 2,841 $ 9,766 $ 10,058 |
Summary of Net Sales by Major Product Category | Net sales by major product category: Thirteen Weeks ended September 28, 2019 Thirteen Weeks ended September 29, 2018 Thirty-Nine Weeks ended September 28, 2019 Thirty-Nine Weeks ended September 29, 2018 Cheeses $ 2,754 $ 2,311 $ 8,306 $ 8,184 Frozen Desserts and Foods 368 530 1,460 1,874 $ 3,122 $ 2,841 $ 9,766 $ 10,058 |
Schedule of Timing of Revenue Recognition | Timing of revenue recognition: Thirteen Weeks ended September 28, 2019 Thirteen Weeks ended September 29, 2018 Thirty-Nine Weeks ended September 28, 2019 Thirty-Nine Weeks ended September 29, 2018 Products transferred at a point in time $ 3,122 $ 2,841 $ 9,766 $ 10,058 $ 3,122 $ 2,841 $ 9,766 $ 10,058 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Leases [Abstract] | |
Schedule of ROU Lease Assets and Liabilities for Operating Leases | ROU lease assets and lease liabilities for our operating leases were recorded in the condensed balance sheet as follows: As of September 28, 2019 Operating lease right-of-use assets $ 277 Total ROU lease assets 277 Accounts payable 105 Operating lease liabilities 183 Total lease liability $ 288 Weighted average remaining lease term (in years) 2.8 Weighted average discount rate 5.5 % |
Schedule of Future Minimum Rental Commitments | Future lease payments included in the measurement of lease liabilities on the condensed balance sheet as of September 28, 2019, for the following five fiscal years and thereafter are as follows: As of September 28, 2019 2019 – Remaining $ 33 2020 118 2021 118 2022 36 2023 6 Total future minimum lease payments 311 Present value adjustment 23 Total $ 288 |
Liquidity and Capital Resourc_2
Liquidity and Capital Resources (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | Jan. 06, 2016 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 |
Cash and cash equivalents | $ 527 | $ 558 | ||
Net cash used in operating activities | (2) | $ (807) | ||
Cash used in investing activities | (29) | (132) | ||
Net cash flows used in financing activities | $ 10 | |||
David Mintz [Member] | ||||
Financing received through convertible note payable-related party | $ 500 | |||
Loan payable interest rate | 5.00% | |||
Loans payable maturity date | Dec. 31, 2017 | |||
Loan convertible into common stock at conversion price per share | $ 4.01 | |||
Debt interest rate in any event of default | 12.00% | |||
David Mintz [Member] | Extended Maturity [Member] | ||||
Loans payable maturity date | Dec. 31, 2020 |
Description of Business (Detail
Description of Business (Details Narrative) | 9 Months Ended |
Sep. 28, 2019Segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
New and Recently Adopted Acco_2
New and Recently Adopted Accounting Standards (Details Narrative) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Operating lease asset | $ 277 | |
Operating lease liabilities | 288 | |
Accounting Standards Update 2016-02 [Member] | ||
Operating lease asset | 346 | |
Operating lease liabilities | $ 362 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,016 | $ 1,061 |
Raw materials and packaging | 792 | 653 |
Inventories, net | $ 1,808 | $ 1,714 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details Narrative) - shares | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Earnings (loss) per common share: | ||
Non-qualified options granted to directors antidilutive | 80,000 | 80,000 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Earnings (loss) per common share: | ||||||||
Numerator: Net income (loss)-basic and diluted | $ (40) | $ (62) | $ 23 | $ (96) | $ 90 | $ 326 | $ (79) | $ 320 |
Denominator: Basic and diluted earnings per share weighted average shares | 5,154,000 | 5,154,000 | 5,154,000 | 5,154,000 | ||||
Earnings per share Basic and diluted | $ (0.01) | $ (0.02) | $ (0.02) | $ 0.06 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 2 | $ 2 | $ 2 | $ 5 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Property, Plant and Equipment [Abstract] | ||
Plant equipment | $ 150 | $ 121 |
Less: accumulated depreciation | 2 | 0 |
Fixed assets, net | $ 148 | $ 121 |
Share Based Compensation (Detai
Share Based Compensation (Details Narrative) - 2014 Equity Incentive Plan [Member] - shares | Sep. 28, 2019 | Jun. 10, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock available for awards | 250,000 | |
Non Qualified Stock Option Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option issued under award | 80,000 |
Note Payable (Details Narrative
Note Payable (Details Narrative) - David Mintz [Member] $ / shares in Units, $ in Thousands | Jan. 06, 2016USD ($)$ / shares |
Financing received through convertible note payable-related party | $ | $ 500 |
Loans payable maturity date | Dec. 31, 2017 |
Loan payable interest rate | 5.00% |
Loan convertible into common stock at conversion price per share | $ / shares | $ 4.01 |
Debt interest rate in any event of default | 12.00% |
Extended Maturity [Member] | |
Loans payable maturity date | Dec. 31, 2020 |
Note Payable - Schedule of Rela
Note Payable - Schedule of Related Party Notes Payable (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Debt Disclosure [Abstract] | ||
Note payable-related party | $ 500 | $ 500 |
Less current maturity | ||
Note payable related party, net of current maturity | $ 500 | $ 500 |
Revenues (Details Narrative)
Revenues (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Segment Reporting [Abstract] | ||||
Percentage of revenue | 86.00% | 89.00% | 86.00% | 90.00% |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues by Geographical Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 3,122 | $ 2,841 | $ 9,766 | $ 10,058 |
Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 2,987 | 2,642 | 9,086 | 9,016 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 96 | 207 | 326 | |
Asia Pacific and Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 61 | 60 | 235 | 238 |
Middle East [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 74 | $ 43 | $ 238 | $ 478 |
Revenues - Summary of Net Sales
Revenues - Summary of Net Sales by Major Product Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 3,122 | $ 2,841 | $ 9,766 | $ 10,058 |
Cheeses [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 2,754 | 2,311 | 8,306 | 8,184 |
Frozen Desserts and Foods [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 368 | $ 530 | $ 1,460 | $ 1,874 |
Revenues - Schedule of Timing o
Revenues - Schedule of Timing of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Timing of Revenue recognition | $ 3,122 | $ 2,841 | $ 9,766 | $ 10,058 |
Products Transferred at a Point in Time [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Timing of Revenue recognition | $ 3,122 | $ 2,841 | $ 9,766 | $ 10,058 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Thousands | Dec. 29, 2018 | Sep. 28, 2019USD ($)ft² | Sep. 29, 2018USD ($) | Sep. 28, 2019USD ($)ft² | Sep. 29, 2018USD ($) |
Leases [Abstract] | |||||
Area of square foot | ft² | 6,200 | 6,200 | |||
Rent expense | $ 19 | $ 20 | $ 58 | $ 60 | |
Outside warehouse expense | $ 121 | $ 100 | $ 331 | $ 331 | |
Incremental borrowing rate, percentage | 5.50% |
Leases - Schedule of ROU Lease
Leases - Schedule of ROU Lease Assets and Liabilities for Operating Leases (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 277 | |
Total ROU lease assets | 277 | |
Accounts payable | 105 | |
Operating lease liabilities | 183 | |
Total lease liability | $ 288 | |
Weighted average remaining lease term (in years) | 2 years 9 months 18 days | |
Weighted average discount rate | 5.50% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Commitments (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Leases [Abstract] | |
2019 - Remaining | $ 33 |
2020 | 118 |
2021 | 118 |
2022 | 36 |
2023 | 6 |
Total future minimum lease payments | 311 |
Present value adjustment | 23 |
Total lease liability | $ 288 |