Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 26, 2020 | Nov. 13, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | TOFUTTI BRANDS INC | |
Entity Central Index Key | 0000730349 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 26, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-02 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,153,706 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,399 | $ 514 |
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $442 and $407, respectively | 1,634 | 1,819 |
Inventories | 2,036 | 1,929 |
Prepaid expenses and other current assets | 75 | 120 |
Total current assets | 5,144 | 4,382 |
Deferred tax assets | 144 | 217 |
Fixed assets (net of accumulated depreciation of $13 and $5, respectively) | 137 | 145 |
Operating lease right-of-use assets | 177 | 252 |
Other assets | 35 | 30 |
Total assets | 5,637 | 5,026 |
Current liabilities: | ||
Accounts payable | 336 | 167 |
Accrued expenses | 326 | 375 |
Total current liabilities | 662 | 542 |
Convertible note payable-long term-related party | 500 | 500 |
SBA note payable-long term | 165 | |
Operating lease liabilities | 72 | 156 |
Total liabilities | 1,399 | 1,198 |
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 26, 2020 and December 28, 2019 | 52 | 52 |
Additional paid-in capital | 207 | 207 |
Retained earnings | 3,979 | 3,569 |
Total stockholders' equity | 4,238 | 3,828 |
Total liabilities and stockholders' equity | $ 5,637 | $ 5,026 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts and sales promotions on accounts receivable | $ 442 | $ 407 |
Accumulated depreciation on fixed assets | $ 13 | $ 5 |
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 ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 3,152 | $ 3,122 | $ 9,621 | $ 9,766 |
Cost of sales | 2,119 | 2,230 | 6,577 | 7,031 |
Gross profit | 1,033 | 892 | 3,044 | 2,735 |
Operating expenses: | ||||
Selling and warehouse | 283 | 331 | 881 | 1,049 |
Marketing | 38 | 79 | 210 | 256 |
Research and development | 50 | 89 | 194 | 246 |
General and administrative | 411 | 427 | 1,229 | 1,238 |
Total operating expenses | 782 | 926 | 2,514 | 2,789 |
Income (loss) from operations | 251 | (34) | 530 | (54) |
Interest expense | 6 | 6 | 19 | 19 |
Income (loss) before income tax | 245 | (40) | 511 | (73) |
Income tax expense | 25 | 101 | 6 | |
Net income (loss) | ||||
Basic | 220 | (40) | 410 | (79) |
Diluted | $ 225 | $ (40) | $ 425 | $ (79) |
Weighted average common shares outstanding: | ||||
Basic | 5,154 | 5,154 | 5,154 | 5,154 |
Diluted | 5,436 | 5,154 | 5,436 | 5,154 |
Earnings (loss) per common share: | ||||
Basic | $ 0.04 | $ (0.01) | $ 0.08 | $ (0.02) |
Diluted | $ 0.04 | $ (0.01) | $ 0.08 | $ (0.02) |
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. 29, 2018 | $ 52 | $ 207 | $ 3,491 | $ 3,750 |
Net income (loss) | 23 | 23 | ||
Balance at Mar. 30, 2019 | 52 | 207 | 3,514 | 3,773 |
Net income (loss) | (62) | (62) | ||
Balance at Jun. 29, 2019 | 52 | 207 | 3,452 | 3,711 |
Net income (loss) | (40) | (40) | ||
Balance at Sep. 26, 2019 | 52 | 207 | 3,412 | 3,671 |
Balance at Dec. 28, 2019 | 52 | 207 | 3,569 | 3,828 |
Net income (loss) | 50 | 50 | ||
Balance at Mar. 28, 2020 | 52 | 207 | 3,619 | 3,878 |
Net income (loss) | 140 | 140 | ||
Balance at Jun. 27, 2020 | 52 | 207 | 3,759 | 4,018 |
Net income (loss) | 220 | 220 | ||
Balance at Sep. 26, 2020 | $ 52 | $ 207 | $ 3,979 | $ 4,238 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 26, 2020 | Sep. 28, 2019 | |
Statement of Cash Flows [Abstract] | ||
Cash provided by (used in) operating activities, net | $ 720 | $ (2) |
Cash provided by financing activities, net | 165 | |
Cash used in investing activities, net | (29) | |
Net increase (decrease) in cash and cash equivalents | 885 | (31) |
Cash and cash equivalents at beginning of period | 514 | 558 |
Cash and cash equivalents at end of period | 1,399 | 527 |
Supplemental cash flow information: | ||
Income taxes paid | 7 | 6 |
Interest paid | 19 | 13 |
Operating cash flows: | ||
Cash paid for the amounts in the measurement of operating lease liability | 75 | 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. 26, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity and Capital Resources | Note 1: Liquidity and Capital Resources At September 26, 2020, Tofutti Brands, Inc. (“Tofutti” or the “Company”) had approximately $1,399 in cash compared to $514 at December 28, 2019. Net cash provided by operating activities was $720 for the thirty-nine weeks ended September 26, 2020 compared to $2 used in operating activities for the thirty-nine weeks ended September 28, 2019. Cash provided by operating activities for the thirty-nine weeks ended September 26, 2020 was primarily a result of the Company’s operating profit, a decrease in accounts receivable, and an increase in accounts payable offset by increases in inventory and accrued expenses. Net cash provided by financing activities was $165 for the thirty-nine weeks ended September 26, 2020 compared to $0 provided by financing activities for the thirty-nine weeks ended September 28, 2019. Net cash provided by financing activities was due to the Company’s receipt of a loan under the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Net cash used in investing activities was $0 for the thirty-nine weeks ended at September 26, 2020 compared to $29 used in investing activities for the thirty-nine weeks ended September 28, 2019. The Company historically has primarily financed operations and met capital requirements through positive cash flow from operations. However, due to net losses and cash used in operations in prior years 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. The original loan was convertible into shares of 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 first entered into. Effective January 10, 2020, the loan was extended until December 31, 2022 and is convertible into the Company’s common stock at a conversion price of $1.77 per share, the closing price of the common stock on the OTCQB on the date the extension of the promissory note was entered into. See Note 10. 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, the inability to make sales calls due to travel restrictions imposed by governmental agencies in response to the spread of COVID-19 and other factors beyond the Company’s control. Trade food shows and sales conferences, major events used to introduce and sell the Company’s products, have been postponed indefinitely. 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. In addition, the continued spread of COVID-19 and the resulting economic downturn could materially and adversely affect the Company’s business and results of operations. 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. Small Business Administration Loan (SBA Loan) On May 4, 2020, the Company was granted a loan from the Valley National Bank in the aggregate amount of $165, pursuant to the PPP under the CARES Act. Interest accrues at 1% per year, effective on the date of initial disbursement. In addition, a portion of the loan may be forgiven under provisions under the CARES Act based on payments for payroll, rent and utilities during the period subsequent to obtaining the loan. According to SBA guidelines, if a loan has closed prior to June 5, 2020 and the recipient of the loan has chosen to adopt the 24-week “covered period,” the principal and interest on the loan will be deferred until the earlier of: ● When the SBA remits the forgiveness amount on the loan to the bank (or notifies that no loan forgiveness is allowed; or ● 21 months from the origination date of the loan. |
Description of Business
Description of Business | 9 Months Ended |
Sep. 26, 2020 | |
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. 26, 2020 | |
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) 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 results of operations for the thirteen week and thirty-nine periods ended September 26, 2020 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. 26, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New and Recently Adopted Accounting Standards | Note 4: New and Recently Adopted Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments. The amendments in this Update require a new topic to be added (Topic 326) to the Accounting Standards Codification (“ASC”) and removes the thresholds that entities apply to measure credit losses on financial instruments measured at amortized cost, such as loans, trade receivables, reinsurance recoverables, and off-balance-sheet credit exposures, and held-to-maturity securities. Under current U.S. GAAP, entities generally recognize credit losses when it is probable that the loss has been incurred. The guidance under ASU 2016-13 will remove all current recognition thresholds and will require entities under the new current expected credit loss (“CECL”) model to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that an entity expects to collect over the instrument’s contractual life. The new CECL model is based upon expected losses rather than incurred losses. Additionally, the credit loss recognition guidance for available-for-sale securities is amended and will require that credit losses on such debt securities should be recognized as an allowance for credit losses rather than a direct write-down of amortized cost balance. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. We are currently evaluating the effect that this new guidance will have on our financial statements and related disclosures. |
Inventories
Inventories | 9 Months Ended |
Sep. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5: Inventories The composition of inventories is as follows: September 26, December 28 2019 Finished products $ 1,159 $ 1,187 Raw materials and packaging 877 742 $ 2,036 $ 1,929 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 26, 2020 | |
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. 26, 2020 | |
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 26, 2020 and September 28, 2019 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 a convertible note outstanding during the same period as applicable. Not included in the calculation of diluted earnings (loss) per common share for the thirteen and thirty-nine weeks periods ended September 28, 2019 were the shares issuable upon conversion of a convertible note payable and the shares issuable upon exercise of 80,000 non-qualified options granted to directors, as a consequence of their anti-dilutive effect. The following table sets forth the computation of basic and diluted earnings (loss) per share: Thirteen Weeks Ended Thirteen Weeks Ended Thirty-nine Weeks Ended Thirty-nine Weeks Ended Numerator Net income (loss) - basic $ 220 $ (40 ) $ 410 $ (79 ) Interest expense attributable to convertible debt, net of taxes 5 — 15 — Net income (loss) - diluted $ 225 $ (40 ) $ 425 $ (79 ) Denominator Weighted average common shares - basic 5,154 5,154 5,154 5,154 Weighted average common shares - diluted 5,436 5,154 5,436 5,154 Earnings (loss) per common share - basic $ 0.04 $ (0.01 ) $ 0.08 $ (0.02 ) Earnings (loss) per common share - diluted $ 0.04 $ (0.01 ) $ 0.08 $ (0.02 ) |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Note 8: Fixed Assets Fixed assets consist of the following: September 26, 2020 December 28, 2019 Plant equipment $ 150 $ 150 Less: accumulated depreciation 13 5 Fixed assets, net $ 137 $ 145 Depreciation expense for the thirteen and thirty-nine weeks ended September 26, 2020 was $3 and $8, respectively. Depreciation expense for the thirteen and thirty-nine weeks ended September 28, 2019 was $2 and $2, respectively. |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 26, 2020 | |
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 26, 2020, the Company had issued 80,000 non-qualified stock option awards under the 2014 Plan, all of which have expired. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 10: Notes Payable Related Party On January 6, 2016, David Mintz, the Company’s Chairman and Chief Executive, provided the Company with a loan of $500. The loan, which was originally set to expire on December 31, 2017, has been extended to December 31, 2022 effective January 10, 2020. The original loan was convertible into shares of 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 first entered into. The extended loan is convertible into the Company’s common stock at a conversion price of $1.77 per share, the closing price of the Company’s common stock on the date of the extension of the promissory note. 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. 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 26, December 28, Note payable-related party $ 500 $ 500 Less current maturity — — Note payable related party, net of current maturity $ 500 $ 500 SBA Note Payable On May 4, 2020, the Company was granted a $165 loan from the Valley National Bank, pursuant to the PPP under the Cares Act. Interest accrues at 1% per year, effective on the date of initial disbursement. In addition, a portion of the loan may be forgiven under provisions under the CARES Act based on payments for payroll, rent and utilities during the period subsequent to obtaining the loan. The Company elected to account for the loan in accordance with ASC 470 . According to SBA guidelines, if a loan has closed prior to June 5, 2020 and the recipient of the loan has chosen to adopt the 24-week “covered period,” the principal and interest on the loan will be deferred until the earlier of: ● When the SBA remits the forgiveness amount on the loan to the bank (or notifies that no loan forgiveness is allowed; or ● 21 months from the origination date of the loan. September 26, 2020 December 28, 2019 SBA note payable $ 165 — Less current maturity — — SBA note payable, net of current maturity $ 165 — |
Revenues
Revenues | 9 Months Ended |
Sep. 26, 2020 | |
Segment Reporting [Abstract] | |
Revenues | Note 11: Revenues Performance obligations relating to the delivery of products are recognized at a point in time based on actual products and quantity shipped, which can vary from purchase order to purchase order, 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 26, 2020 Thirteen Weeks ended September 28, 2019 Thirty-nine Weeks ended September 26, 2020 Thirty-nine Weeks ended September 28, 2019 Revenues by geography: Americas $ 2,954 $ 2,987 $ 9,180 $ 9,086 Europe 24 — 124 207 Asia Pacific and Africa 12 61 42 235 Middle East 162 74 275 238 $ 3,152 $ 3,122 $ 9,621 $ 9,766 Approximately 93% of the Americas revenue in 2020 and 86% of the Americas revenue in 2019 is attributable to sales in the United States in both the thirteen and thirty-nine week periods. All of the Company’s assets are located in the United States. Net sales by major product category: Thirteen Weeks ended September 26, 2020 Thirteen Weeks ended September 28, 2019 Thirty-nine Weeks ended September 26, 2020 Thirty-nine Weeks ended September 28, 2019 Cheeses $ 2,655 $ 2,754 $ 8,016 $ 8,306 Frozen Desserts and Foods 497 368 1,605 1,460 $ 3,152 $ 3,122 $ 9,621 $ 9,766 Timing of revenue recognition: Thirteen Weeks ended September 26, 2020 Thirteen Weeks ended September 28, 2019 Thirty-nine Weeks ended September 26, 2020 Thirty-nine Weeks ended September 28, 2019 Products transferred at a point in time $ 3,152 $ 3,122 $ 9,621 $ 9,766 $ 3,152 $ 3,122 $ 9,621 $ 9,766 |
Leases
Leases | 9 Months Ended |
Sep. 26, 2020 | |
Leases [Abstract] | |
Leases | Note 12: 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 $13 for the thirteen weeks ended September 26, 2020 and $19 for the thirteen weeks ended September 28, 2019. Rent expense was $51 for the thirty-nine weeks ended September 26, 2020 and $58 for the thirty-nine weeks ended September 28, 2019. 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. The Company rents warehouse storage space at various outside facilities. Outside warehouse expenses were $116 for the thirteen weeks ended September 26, 2020 and $121 for the thirteen weeks ended September 28, 2019 and $342 for the thirty-nine weeks ended September 26, 2020 and $331 for the thirty-nine weeks ended September 28, 2019. 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. 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 balance sheet as follows: As of September 26, 2020 Operating lease right-of-use assets $ 177 Total ROU lease assets 177 Accounts payable 111 Operating lease liabilities 72 Total lease liability $ 183 Weighted average remaining lease term (in years) 1.9 Weighted average discount rate 5.5 % Future lease payments included in the measurement of lease liabilities on the balance sheet as of September 26, 2020, for the following five fiscal years and thereafter are as follows: As of September 26, 2020 2020 (remaining) $ 30 2021 118 2022 37 2023 8 Total future minimum lease payments 193 Present value adjustment 10 Total $ 183 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The composition of inventories is as follows: September 26, December 28 2019 Finished products $ 1,159 $ 1,187 Raw materials and packaging 877 742 $ 2,036 $ 1,929 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Earnings (loss) per common share: | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings (loss) per share: Thirteen Weeks Ended Thirteen Weeks Ended Thirty-nine Weeks Ended Thirty-nine Weeks Ended Numerator Net income (loss) - basic $ 220 $ (40 ) $ 410 $ (79 ) Interest expense attributable to convertible debt, net of taxes 5 — 15 — Net income (loss) - diluted $ 225 $ (40 ) $ 425 $ (79 ) Denominator Weighted average common shares - basic 5,154 5,154 5,154 5,154 Weighted average common shares - diluted 5,436 5,154 5,436 5,154 Earnings (loss) per common share - basic $ 0.04 $ (0.01 ) $ 0.08 $ (0.02 ) Earnings (loss) per common share - diluted $ 0.04 $ (0.01 ) $ 0.08 $ (0.02 ) |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Fixed Assets | Fixed assets consist of the following: September 26, 2020 December 28, 2019 Plant equipment $ 150 $ 150 Less: accumulated depreciation 13 5 Fixed assets, net $ 137 $ 145 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Related Party Notes Payable | September 26, December 28, Note payable-related party $ 500 $ 500 Less current maturity — — Note payable related party, net of current maturity $ 500 $ 500 |
Schedule of SBA Note Payable | September 26, 2020 December 28, 2019 SBA note payable $ 165 — Less current maturity — — SBA note payable, net of current maturity $ 165 — |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographical Region | Revenues by geographical region are as follows: Thirteen Weeks ended September 26, 2020 Thirteen Weeks ended September 28, 2019 Thirty-nine Weeks ended September 26, 2020 Thirty-nine Weeks ended September 28, 2019 Revenues by geography: Americas $ 2,954 $ 2,987 $ 9,180 $ 9,086 Europe 24 — 124 207 Asia Pacific and Africa 12 61 42 235 Middle East 162 74 275 238 $ 3,152 $ 3,122 $ 9,621 $ 9,766 |
Summary of Net Sales by Major Product Category | Net sales by major product category: Thirteen Weeks ended September 26, 2020 Thirteen Weeks ended September 28, 2019 Thirty-nine Weeks ended September 26, 2020 Thirty-nine Weeks ended September 28, 2019 Cheeses $ 2,655 $ 2,754 $ 8,016 $ 8,306 Frozen Desserts and Foods 497 368 1,605 1,460 $ 3,152 $ 3,122 $ 9,621 $ 9,766 |
Schedule of Timing of Revenue Recognition | Timing of revenue recognition: Thirteen Weeks ended September 26, 2020 Thirteen Weeks ended September 28, 2019 Thirty-nine Weeks ended September 26, 2020 Thirty-nine Weeks ended September 28, 2019 Products transferred at a point in time $ 3,152 $ 3,122 $ 9,621 $ 9,766 $ 3,152 $ 3,122 $ 9,621 $ 9,766 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 26, 2020 | |
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 balance sheet as follows: As of September 26, 2020 Operating lease right-of-use assets $ 177 Total ROU lease assets 177 Accounts payable 111 Operating lease liabilities 72 Total lease liability $ 183 Weighted average remaining lease term (in years) 1.9 Weighted average discount rate 5.5 % |
Schedule of Future Minimum Rental Commitments | Future lease payments included in the measurement of lease liabilities on the balance sheet as of September 26, 2020, for the following five fiscal years and thereafter are as follows: As of September 26, 2020 2020 (remaining) $ 30 2021 118 2022 37 2023 8 Total future minimum lease payments 193 Present value adjustment 10 Total $ 183 |
Liquidity and Capital Resourc_2
Liquidity and Capital Resources (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 04, 2020 | Jan. 10, 2020 | Jan. 06, 2016 | Sep. 26, 2020 | Sep. 28, 2019 | Dec. 28, 2019 |
Cash and cash equivalents | $ 1,399 | $ 514 | ||||
Cash provided by operating activities | 720 | $ (2) | ||||
Net cash provided by financing activities | 165 | |||||
Cash used in investing activities | $ (29) | |||||
Paycheck Protection Program [Member] | Valley National Bank [Member] | ||||||
Loan borrowed | $ 165 | |||||
David Mintz [Member] | ||||||
Financing received through convertible note payable-related party | $ 500 | |||||
Loan convertible into common stock at conversion price per share | $ 4.01 | |||||
David Mintz [Member] | Extended Maturity [Member] | ||||||
Loan convertible into common stock at conversion price per share | $ 1.77 | |||||
Loans payable maturity date | Dec. 31, 2022 |
Description of Business (Detail
Description of Business (Details Narrative) | 9 Months Ended |
Sep. 26, 2020Segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 1,159 | $ 1,187 |
Raw materials and packaging | 877 | 742 |
Inventories, net | $ 2,036 | $ 1,929 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details Narrative) - shares | 3 Months Ended | 9 Months Ended |
Sep. 28, 2019 | Sep. 28, 2019 | |
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 (Loss) Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Earnings (loss) per common share: | ||||
Net income (loss) - basic | $ 220 | $ (40) | $ 410 | $ (79) |
Interest expense attributable to convertible debt, net of taxes | 5 | 15 | ||
Net income (loss) - diluted | $ 225 | $ (40) | $ 425 | $ (79) |
Weighted average common shares - basic | 5,154 | 5,154 | 5,154 | 5,154 |
Weighted average common shares - diluted | 5,436 | 5,154 | 5,436 | 5,154 |
Earnings (loss) per common share - basic | $ 0.04 | $ (0.01) | $ 0.08 | $ (0.02) |
Earnings (loss) per common share - diluted | $ 0.04 | $ (0.01) | $ 0.08 | $ (0.02) |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 3 | $ 2 | $ 8 | $ 2 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Property, Plant and Equipment [Abstract] | ||
Plant equipment | $ 150 | $ 150 |
Less: accumulated depreciation | 13 | 5 |
Fixed assets, net | $ 137 | $ 145 |
Share Based Compensation (Detai
Share Based Compensation (Details Narrative) - 2014 Equity Incentive Plan [Member] - shares | Sep. 26, 2020 | 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 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 04, 2020 | Jan. 10, 2020 | Jan. 06, 2016 |
Paycheck Protection Program [Member] | Valley National Bank [Member] | |||
Loan payable interest rate | 1.00% | ||
Loan borrowed | $ 165 | ||
Loan payment terms | Interest accrues at 1% per year, effective on the date of initial disbursement. | ||
David Mintz [Member] | |||
Financing received through convertible note payable-related party | $ 500 | ||
Loan convertible into common stock at conversion price per share | $ 4.01 | ||
Loan payable interest rate | 5.00% | ||
Debt interest rate in any event of default | 12.00% | ||
David Mintz [Member] | Promissory Note [Member] | |||
Loan convertible into common stock at conversion price per share | $ 1.77 | ||
David Mintz [Member] | Extended Maturity [Member] | |||
Loans payable maturity date | Dec. 31, 2022 | ||
Loan convertible into common stock at conversion price per share | $ 1.77 |
Notes Payable - Schedule of Rel
Notes Payable - Schedule of Related Party Notes Payable (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Debt Disclosure [Abstract] | ||
Note payable-related party | $ 500 | $ 500 |
Less current maturity | ||
Note payable related party, net of current maturity | $ 500 | $ 500 |
Notes Payable - Schedule of SBA
Notes Payable - Schedule of SBA Note Payable (Details) - USD ($) $ in Thousands | Sep. 26, 2020 | Dec. 28, 2019 |
Debt Disclosure [Abstract] | ||
SBA note payable | $ 165 | |
Less current maturity | ||
SBA note payable, net of current maturity | $ 165 |
Revenues (Details Narrative)
Revenues (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Americas [Member] | ||||
Percentage of revenue | 93.00% | 86.00% | 93.00% | 86.00% |
Revenues - Schedule of Revenues
Revenues - Schedule of Revenues by Geographical Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 3,152 | $ 3,122 | $ 9,621 | $ 9,766 |
Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 2,954 | 2,987 | 9,180 | 9,086 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 24 | 124 | 207 | |
Asia Pacific and Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 12 | 61 | 42 | 235 |
Middle East [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 162 | $ 74 | $ 275 | $ 238 |
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. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 3,152 | $ 3,122 | $ 9,621 | $ 9,766 |
Cheeses [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 2,655 | 2,754 | 8,016 | 8,306 |
Frozen Desserts and Foods [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 497 | $ 368 | $ 1,605 | $ 1,460 |
Revenues - Schedule of Timing o
Revenues - Schedule of Timing of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 26, 2020 | Sep. 28, 2019 | Sep. 26, 2020 | Sep. 28, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Timing of revenue recognition | $ 3,152 | $ 3,122 | $ 9,621 | $ 9,766 |
Products Transferred at a Point in Time [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Timing of revenue recognition | $ 3,152 | $ 3,122 | $ 9,621 | $ 9,766 |
Leases (Details Narrative)
Leases (Details Narrative) $ in Thousands | Dec. 29, 2018 | Sep. 26, 2020USD ($)ft² | Sep. 28, 2019USD ($) | Sep. 26, 2020USD ($)ft² | Sep. 28, 2019USD ($) |
Leases [Abstract] | |||||
Area of square foot | ft² | 6,200 | 6,200 | |||
Rent expense | $ 13 | $ 19 | $ 51 | $ 58 | |
Outside warehouse expense | $ 116 | $ 121 | $ 342 | $ 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. 26, 2020 | Dec. 28, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 177 | $ 252 |
Total ROU lease assets | 177 | |
Accounts payable | 111 | |
Operating lease liabilities | 72 | $ 156 |
Total lease liability | $ 183 | |
Weighted average remaining lease term (in years) | 1 year 10 months 25 days | |
Weighted average discount rate | 5.50% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Commitments (Details) $ in Thousands | Sep. 26, 2020USD ($) |
Leases [Abstract] | |
2020 (remaining) | $ 30 |
2021 | 118 |
2022 | 37 |
2023 | 8 |
Total future minimum lease payments | 193 |
Present value adjustment | 10 |
Total | $ 183 |