Tofutti Brands (TOFB) 10-Q 12 Nov 19 2019 Q3 Quarterly report Financial data

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