Tofutti Brands (TOFB) 10-K 31 Mar 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 31, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	1-9009
Entity Registrant Name	TOFUTTI BRANDS INC.
Entity Central Index Key	0000730349
Entity Tax Identification Number	13-3094658
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	50 Jackson Drive
Entity Address, City or Town	Cranford
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07016
City Area Code	(908)
Local Phone Number	272-2400
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	TOFB
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 4,794,953
Entity Common Stock, Shares Outstanding		5,153,706
ICFR Auditor Attestation Flag	false
Auditor Firm ID	339
Auditor Name	Mazars USA LLP
Auditor Location	Edison, NJ

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Current assets:
Cash	$ 1,072	$ 1,698
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $495 and $435, respectively	1,305	1,336
Inventories	2,463	1,874
Prepaid expenses and other current assets	80	98
Total current assets	4,920	5,006
Operating lease right-of-use assets	158	203
Finance lease right-of-use asset	53
Deferred tax assets	367	112
Other assets	19	21
Total assets	5,517	5,342
Current liabilities:
SBA loan payable		165
Income taxes payable	41	46
Accounts payable	684	122
Accrued expenses	555	347
Financing lease liability, current portion	15
Total current liabilities	1,295	680
Operating lease liabilities, net of current portion	85	95
Finance lease liability, net of current portion	39
Total liabilities	1,419	775
Stockholders’ equity:
Preferred stock – par value $.01 per share; authorized 100,000 shares, none issued and outstanding
Common stock – par value $.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding	52	52
Additional paid-in capital	263	207
Retained earnings	3,783	4,308
Total stockholders’ equity	4,098	4,567
Total liabilities and stockholders’ equity	$ 5,517	$ 5,342

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts and sales promotions on accounts receivable	$ 495	$ 435
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
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

Statements of Operations

Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Income Statement [Abstract]
Net sales	$ 12,827	$ 12,590
Cost of sales	10,485	9,248
Gross profit	2,342	3,342
Operating expenses:
Selling and warehousing	1,147	1,206
Marketing	564	281
Product development costs	143	124
General and administrative	1,404	1,489
Total operating expenses	3,258	3,100
Income (loss) from operations	(916)	242
SBA loan forgiveness	165
Income (loss) before interest expense and income taxes	(751)	242
Interest expense	2	25
Income (loss) before provision for income taxes	(753)	217
(Benefit from) provision for income taxes	(228)	74
Net income (loss)	$ (525)	$ 143
Weighted average common shares outstanding:
Basic	5,154	5,154
Diluted	5,154	5,154
Net income (loss) per common share:
Basic	$ (0.10)	$ 0.03
Diluted	$ (0.10)	$ 0.03

Statements of Changes in Stockh

Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Jan. 02, 2021	$ 52	$ 207	$ 4,165	$ 4,424
Balance, shares at Jan. 02, 2021	5,153,706
Net income (loss)			143	143
Stock-based compensation
Ending balance, value at Jan. 01, 2022	$ 52	207	4,308	4,567
Balance, shares at Jan. 01, 2022	5,153,706
Net income (loss)			(525)	(525)
Stock-based compensation		56		56
Ending balance, value at Dec. 31, 2022	$ 52	$ 263	$ 3,783	$ 4,098
Balance, shares at Dec. 31, 2022	5,153,706

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (525)	$ 143
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation		10
Stock-based compensation	56
SBA loan forgiveness	(165)
Non-cash change in right of use assets and lease liabilities	(12)	(7)
Amortization of finance lease right-of-use asset	9
Loss on sale and disposal of equipment		75
Provision for bad debts and sales promotions	15	20
Deferred taxes	(255)	(29)
Change in assets and liabilities:
Accounts receivable	16	722
Inventories	(589)	123
Prepaid expenses	18	(10)
Other assets	2	(2)
Income taxes payable	(5)	(71)
Accounts payable and accrued expenses	819	(285)
Net cash flows (used in) provided by operating activities	(616)	689
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of equipment		50
Net cash flows provided by investing activities		50
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
Payments of finance lease obligations	(10)
Payment of convertible note payable		(500)
Net cash flows (used in) provided by financing activities	(10)	(500)
NET CHANGE IN CASH	(626)	239
CASH AT BEGINNING OF YEAR	1,698	1,459
CASH AT END OF YEAR	1,072	1,698
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid		180
Interest paid - related party	2	25
Supplemental schedule of non-cash investing and financing activities:
Lease assets acquired in exchange for lease liabilities	$ 62

DESCRIPTION OF THE BUSINESS AND

DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1: DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Operating Segments Fiscal Year Estimates and Uncertainties Accounts Receivable Inventories The Company purchased approximately 49 50 14 11 Equipment, net Revenue Recognition Under ASC 606, revenue is recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). In evaluating our contracts with our customers under ASC 606, we have determined that there is no future performance obligation once delivery has occurred. The Company primarily sells plant-based, dairy free vegan cheeses and frozen desserts. The Company recognizes revenue when control over the products transfers to its customers, deemed to be the performance obligation, which generally occurs upon delivery or shipment of the products. The Company accounts for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. The Company bases these estimates of expected amounts principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs in accordance with U.S. GAAP and our inventory policies. The Company generally does not have any unbilled receivables at the end of a period. Concentration of Credit/Sales Risk 250 The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management believes that credit risk beyond the established allowances at December 31, 2022 is limited. During the fiscal years ended December 31, 2022 and January 1, 2022, the Company derived approximately 88 87 47 55 45 45 Income Taxes likelihood greater than 50 percent Earnings Per Share SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Net income (loss), numerator, basic computation $ (525 ) $ 143 Net income (loss), numerator, diluted computation $ (525 ) $ 143 Weighted average shares - denominator basic computation 5,154 5,154 Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Earnings (loss) per common share: Basic $ (0.10 ) $ 0.03 Diluted $ (0.10 ) $ 0.03 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) The following are securities excluded from weighted-average shares used to calculate diluted earnings (loss) per common share, as the result of including them to calculate diluted EPS is anti-dilutive: SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Shares subject to outstanding common stock options 250,000 - Shares subject to outstanding convertible note (repaid in full in fiscal year 2021) - 282,486 Shares subject to outstanding, shares - 282,486 Fair Value of Financial Instruments Small Business Administration (SBA) Loan 165 1 165 May 2, 2022 165 Freight Costs 1,159 1,037 Advertising Costs 251 209 Product Development Costs 143 124 Stock-Based Compensation We account for our stock-based compensation under ASC 718 “Compensation - Stock Compensation” using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the shorter of the service period or the vesting period of the stock-based compensation. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Determining the fair value of stock-based compensation at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based compensation represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Recent Accounting Pronouncements 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, 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. As the Company is a smaller reporting company, the ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of ASU 2016-13 is not expected to have a material impact on our consolidated financial statements. TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data)

INVENTORIES

INVENTORIES	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 2: INVENTORIES Inventories consist of the following: SCHEDULE OF INVENTORIES December 31, 2022 January 1, 2022 Finished products $ 1,387 $ 1,218 Raw materials and packaging 1,076 656 Inventories, net $ 2,463 $ 1,874

EQUIPMENT

EQUIPMENT	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
EQUIPMENT	NOTE 3: EQUIPMENT During September 2021, the Company sold manufacturing equipment with a cost of $ 102 15 50 75

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 4: NOTES PAYABLE Small Business Administration (SBA) Loan On May 2, 2020 the Company received from the SBA a loan of $ 165 1 165 165 as SBA loan forgiveness on the statement of operations. Related Party On January 6, 2016, David Mintz, the Company’s former Chairman and Chief Executive, provided the Company with a loan of $ 500 1.77 0 25 500 25

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 5: STOCK-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. Such grants can be, but are not limited to, options, stock appreciation rights, restricted stock, performance grants, stock bonuses, and any other type of award that is consistent with the purposes of the 2014 Plan. Employees and officers of the Company are eligible to receive incentive stock options while corporate directors are only eligible to receive non-qualified options. The 2014 Plan made 250,000 250,000 0 250,000 0.95 83,333 83,333 83,334 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) The following is a summary of stock option activity from January 1, 2022 to December 31, 2022: SCHEDULE OF STOCK OPTION ACTIVITY NON-QUALIFIED OPTIONS Shares Weighted Average Exercise Price ($) Outstanding at January 1, 2022 — — Granted 250,000 0.95 Exercised — — Outstanding at December 31, 2022 250,000 0.95 Exercisable at December 31, 2022 83,333 0.95 The following table summarizes information about stock options outstanding at December 31, 2022: SCHEDULE OF INFORMATION ABOUT STOCK OPTIONS Range of Exercise Prices ($) Number Outstanding Weighted Average Remaining Life (in years) Weighted Average Exercise Price($) Number Exercisable $ 0.95 250,000 5.00 $ 0.95 83,333 The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing formula. Expected volatilities and risk-free interest rates are based upon the expected life of the grant. The interest rates used are the U.S. Treasury yield curve in effect at the time of the grant. During fiscal 2022, 250,000 83,333 83,333 83,334 82.65 3.79 0 five years As of December 31, 2022, the intrinsic value of the options outstanding and exercisable options was $ 60 20 105 56 250,000

REVENUE

REVENUE	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
REVENUE	NOTE 6: REVENUE 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: SCHEDULE OF DISAGGREGATION REVENUE December 31, 2022 January 1, 2022 Revenues by geography: Americas $ 12,110 $ 11,864 Europe 170 183 Middle East 494 334 Asia Pacific and Africa 53 209 Revenues $ 12,827 $ 12,590 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) Approximately 88 87 Net sales by major product category: December 31, 2022 January 1, 2022 Cheeses $ 10,951 $ 10,761 Frozen Desserts and Foods 1,876 1,829 Revenues $ 12,827 $ 12,590

LEASES

LEASES	12 Months Ended
	Dec. 31, 2022
Leases
LEASES	NOTE 7: LEASES The Company’s facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 86 79 363 459 10 35 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 standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease. The current portion of lease liabilities is included in accrued expenses on the balance sheets. Under Topic 842, finance lease cost includes amortization, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. The Company has a finance lease consisting of a copier lease with a term of four years. The standard requires a lessee to record a right-of-use asset and a corresponding lease liability at the inception of the lease. 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 rates on of between 5.5 6.5 ROU lease assets and lease liabilities for our operating leases were recorded in the balance sheet as follows: SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR OPERATING LEASES As of As of December 31, 2022 January 1, 2022 Operating lease right-of-use assets $ 158 $ 203 Current portion of lease liabilities 74 123 Operating lease liabilities, net of current portion 85 95 Total lease liabilities $ 159 $ 218 Weighted average remaining lease term (in years) 2.1 3.0 Weighted average discount rate 5.5 % 5.5 % TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) ROU lease asset and lease liability for our finance lease were recorded in the balance sheet as follows: SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR FINANCE LEASES As of As of December 31, 2022 January 1, 2022 Finance lease right-of-use asset $ 53 $ - Current portion of lease liabilities 15 - Operating lease liabilities, net of current portion 39 - Total lease liabilities $ 54 $ - Weighted average remaining lease term (in years) 3.4 - Weighted average discount rate 6.5 % - % Future lease payments included in the measurement of lease liabilities on the balance sheet as of December 31, 2022, for the following three fiscal years and thereafter are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS Operating lease liabilities Finance lease liability Total 2023 $ 81 $ 17 $ 98 2024 81 17 98 2025 7 17 24 2026 - 8 8 Total future minimum lease payments 169 59 228 Present value adjustment (10 ) (5 ) (15 ) Total $ 159 $ 54 $ 213 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data)

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 8: INCOME TAXES The components of income tax expense for the fiscal years ended December 31, 2022 and January 1, 2022 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) December 31, 2022 January 1, 2022 Current: Federal $ - $ 64 State 26 39 26 103 Deferred: Federal (190 ) (22 ) State (64 ) (7 ) (254 ) (29 ) Total income tax (benefit) expense $ (228 ) $ 74 A reconciliation between the expected federal tax expense at the statutory tax rate of 21 SCHEDULE OF RECONCILIATION BETWEEN THE EXPECTED FEDERAL TAX EXPENSE AT STATUTORY TAX RATE December 31, 2022 January 1, 2022 Federal income tax $ (157 ) $ 46 State income taxes, net of federal income tax benefit (64 ) 18 Nontaxable forgiveness of PPP loan (35 ) - Permanent items 2 3 Other 26 7 Total income tax expense $ (228 ) $ 74 Deferred tax assets for the fiscal years ended December 31, 2022 and January 1, 2022 consist of the following components: SCHEDULE OF DEFERRED TAX ASSETS December 31, January 2, Allowance for doubtful accounts $ 105 $ 88 Right of use asset (59 ) (57 ) Lease liabilities 60 61 Inventory 1 1 Net operating loss carryforward 189 - Stock options 16 - Research and development 36 - Fixed assets 19 19 Deferred tax asset, net $ 367 $ 112 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) At December 31, 2022 the Company had $ 786 673 The Company will recognize a tax provision in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (i.e., a likelihood greater than 50 percent The following table indicates the changes to the Company’s uncertain tax positions for the fiscal years ended December 31, 2022 and January 1, 2022: SCHEDULE OF CHANGES TO COMPANY'S UNCERTAIN TAX POSITIONS Balance at January 2, 2021 $ 172 Increase due to reserves and tax positions related to current year 8 Balance at January 1, 2022 $ 180 Increase due to reserves and tax positions related to current year 26 Balance at December 31, 2022 $ 206 The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. The amount of uncertain tax positions that would affect the effective tax rate if they were recognized is $ 206

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 9: COMMITMENTS AND CONTINGENCIES The Company sells its products throughout the United States and in approximately twelve foreign countries and may be impacted by public health crises beyond its control. This could disrupt its operations and negatively impact sales of its products. The Company’s customers, suppliers and co-packers may experience similar disruption. In December 2019, a novel strain of the Coronavirus, COVID-19, was reported to have surfaced in Wuhan, China, which has evolved into a pandemic. This situation and preventative or protective actions that governments have taken to counter the effects of the pandemic have resulted in a period of business disruption, including delays in shipments of products and raw materials. To the extent the impact of COVID-19 continues or worsens, the demand for the Company’s products may be negatively impacted, and it and its co-packers may have difficulty obtaining the materials necessary for the production of its products. In addition, the production facilities of the Company’s co-packers may be closed for sustained periods of time and industry-wide shipment of products may be negatively impacted. COVID-19 has also impacted the Company’s sales efforts as its ability to make sales calls is constrained. The Company’s ability to promote sales through promotional activities has also been constrained as many supermarkets are understaffed and unable to change pricing for items in stock, resulting in the cancelation of all sales promotional discounts for the foreseeable future. The length and severity of the pandemic could also affect the Company’s regular sales, which could in turn result in reduced sales and a lower gross margin.

DESCRIPTION OF THE BUSINESS A_2

DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Description of Business	Description of Business
Operating Segments	Operating Segments
Fiscal Year	Fiscal Year
Estimates and Uncertainties	Estimates and Uncertainties
Accounts Receivable	Accounts Receivable
Inventories	Inventories The Company purchased approximately 49 50 14 11
Equipment, net	Equipment, net
Revenue Recognition	Revenue Recognition Under ASC 606, revenue is recognized as the customer obtains control of the goods and services promised in the contract (i.e., performance obligations). In evaluating our contracts with our customers under ASC 606, we have determined that there is no future performance obligation once delivery has occurred. The Company primarily sells plant-based, dairy free vegan cheeses and frozen desserts. The Company recognizes revenue when control over the products transfers to its customers, deemed to be the performance obligation, which generally occurs upon delivery or shipment of the products. The Company accounts for product shipping, handling and insurance as fulfillment activities with revenues for these activities recorded within net revenue and costs recorded within cost of sales. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. The Company bases these estimates of expected amounts principally on historical utilization and redemption rates. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one year or shorter duration. As such, we do not capitalize contract inception costs and we capitalize product fulfillment costs in accordance with U.S. GAAP and our inventory policies. The Company generally does not have any unbilled receivables at the end of a period.
Concentration of Credit/Sales Risk	Concentration of Credit/Sales Risk 250 The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management believes that credit risk beyond the established allowances at December 31, 2022 is limited. During the fiscal years ended December 31, 2022 and January 1, 2022, the Company derived approximately 88 87 47 55 45 45
Income Taxes	Income Taxes likelihood greater than 50 percent
Earnings Per Share	Earnings Per Share SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Net income (loss), numerator, basic computation $ (525 ) $ 143 Net income (loss), numerator, diluted computation $ (525 ) $ 143 Weighted average shares - denominator basic computation 5,154 5,154 Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Earnings (loss) per common share: Basic $ (0.10 ) $ 0.03 Diluted $ (0.10 ) $ 0.03 TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data) The following are securities excluded from weighted-average shares used to calculate diluted earnings (loss) per common share, as the result of including them to calculate diluted EPS is anti-dilutive: SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Shares subject to outstanding common stock options 250,000 - Shares subject to outstanding convertible note (repaid in full in fiscal year 2021) - 282,486 Shares subject to outstanding, shares - 282,486
Fair Value of Financial Instruments	Fair Value of Financial Instruments
Small Business Administration (SBA) Loan	Small Business Administration (SBA) Loan 165 1 165 May 2, 2022 165
Freight Costs	Freight Costs 1,159 1,037
Advertising Costs	Advertising Costs 251 209
Product Development Costs	Product Development Costs 143 124
Stock-Based Compensation	Stock-Based Compensation We account for our stock-based compensation under ASC 718 “Compensation - Stock Compensation” using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the shorter of the service period or the vesting period of the stock-based compensation. This guidance establishes standards for the accounting for transactions in which an entity exchanges it equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments. The Company estimates the fair value of each stock option at the grant date by using the Black-Scholes option pricing model. Determining the fair value of stock-based compensation at the grant date under this model requires judgment, including estimating volatility, employee stock option exercise behaviors and forfeiture rates. The assumptions used in calculating the fair value of stock-based compensation represent the Company’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment.
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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, 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. As the Company is a smaller reporting company, the ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The adoption of ASU 2016-13 is not expected to have a material impact on our consolidated financial statements. TOFUTTI BRANDS INC. NOTES TO FINANCIAL STATEMENTS (In thousands, except for share and per share data)

DESCRIPTION OF THE BUSINESS A_3

DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED	SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Net income (loss), numerator, basic computation $ (525 ) $ 143 Net income (loss), numerator, diluted computation $ (525 ) $ 143 Weighted average shares - denominator basic computation 5,154 5,154 Weighted average shares, as adjusted - denominator diluted computation 5,154 5,154 Earnings (loss) per common share: Basic $ (0.10 ) $ 0.03 Diluted $ (0.10 ) $ 0.03
SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES	The following are securities excluded from weighted-average shares used to calculate diluted earnings (loss) per common share, as the result of including them to calculate diluted EPS is anti-dilutive: SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES Fiscal Year Ended December 31, 2022 Fiscal Year Ended January 1, 2022 Shares subject to outstanding common stock options 250,000 - Shares subject to outstanding convertible note (repaid in full in fiscal year 2021) - 282,486 Shares subject to outstanding, shares - 282,486

INVENTORIES (Tables)

INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2022
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventories consist of the following: SCHEDULE OF INVENTORIES December 31, 2022 January 1, 2022 Finished products $ 1,387 $ 1,218 Raw materials and packaging 1,076 656 Inventories, net $ 2,463 $ 1,874

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
SCHEDULE OF STOCK OPTION ACTIVITY	The following is a summary of stock option activity from January 1, 2022 to December 31, 2022: SCHEDULE OF STOCK OPTION ACTIVITY NON-QUALIFIED OPTIONS Shares Weighted Average Exercise Price ($) Outstanding at January 1, 2022 — — Granted 250,000 0.95 Exercised — — Outstanding at December 31, 2022 250,000 0.95 Exercisable at December 31, 2022 83,333 0.95
SCHEDULE OF INFORMATION ABOUT STOCK OPTIONS	The following table summarizes information about stock options outstanding at December 31, 2022: SCHEDULE OF INFORMATION ABOUT STOCK OPTIONS Range of Exercise Prices ($) Number Outstanding Weighted Average Remaining Life (in years) Weighted Average Exercise Price($) Number Exercisable $ 0.95 250,000 5.00 $ 0.95 83,333

REVENUE (Tables)

REVENUE (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
SCHEDULE OF DISAGGREGATION REVENUE	Revenues by geographical region are as follows: SCHEDULE OF DISAGGREGATION REVENUE December 31, 2022 January 1, 2022 Revenues by geography: Americas $ 12,110 $ 11,864 Europe 170 183 Middle East 494 334 Asia Pacific and Africa 53 209 Revenues $ 12,827 $ 12,590 Net sales by major product category: December 31, 2022 January 1, 2022 Cheeses $ 10,951 $ 10,761 Frozen Desserts and Foods 1,876 1,829 Revenues $ 12,827 $ 12,590

LEASES (Tables)

LEASES (Tables)	12 Months Ended
	Dec. 31, 2022
Leases
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: SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR OPERATING LEASES As of As of December 31, 2022 January 1, 2022 Operating lease right-of-use assets $ 158 $ 203 Current portion of lease liabilities 74 123 Operating lease liabilities, net of current portion 85 95 Total lease liabilities $ 159 $ 218 Weighted average remaining lease term (in years) 2.1 3.0 Weighted average discount rate 5.5 % 5.5 %
SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR FINANCE LEASES	ROU lease asset and lease liability for our finance lease were recorded in the balance sheet as follows: SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR FINANCE LEASES As of As of December 31, 2022 January 1, 2022 Finance lease right-of-use asset $ 53 $ - Current portion of lease liabilities 15 - Operating lease liabilities, net of current portion 39 - Total lease liabilities $ 54 $ - Weighted average remaining lease term (in years) 3.4 - Weighted average discount rate 6.5 % - %
SCHEDULE OF FUTURE LEASE PAYMENTS	Future lease payments included in the measurement of lease liabilities on the balance sheet as of December 31, 2022, for the following three fiscal years and thereafter are as follows: SCHEDULE OF FUTURE LEASE PAYMENTS Operating lease liabilities Finance lease liability Total 2023 $ 81 $ 17 $ 98 2024 81 17 98 2025 7 17 24 2026 - 8 8 Total future minimum lease payments 169 59 228 Present value adjustment (10 ) (5 ) (15 ) Total $ 159 $ 54 $ 213

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT)	The components of income tax expense for the fiscal years ended December 31, 2022 and January 1, 2022 are as follows: SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) December 31, 2022 January 1, 2022 Current: Federal $ - $ 64 State 26 39 26 103 Deferred: Federal (190 ) (22 ) State (64 ) (7 ) (254 ) (29 ) Total income tax (benefit) expense $ (228 ) $ 74
SCHEDULE OF RECONCILIATION BETWEEN THE EXPECTED FEDERAL TAX EXPENSE AT STATUTORY TAX RATE	A reconciliation between the expected federal tax expense at the statutory tax rate of 21 SCHEDULE OF RECONCILIATION BETWEEN THE EXPECTED FEDERAL TAX EXPENSE AT STATUTORY TAX RATE December 31, 2022 January 1, 2022 Federal income tax $ (157 ) $ 46 State income taxes, net of federal income tax benefit (64 ) 18 Nontaxable forgiveness of PPP loan (35 ) - Permanent items 2 3 Other 26 7 Total income tax expense $ (228 ) $ 74
SCHEDULE OF DEFERRED TAX ASSETS	Deferred tax assets for the fiscal years ended December 31, 2022 and January 1, 2022 consist of the following components: SCHEDULE OF DEFERRED TAX ASSETS December 31, January 2, Allowance for doubtful accounts $ 105 $ 88 Right of use asset (59 ) (57 ) Lease liabilities 60 61 Inventory 1 1 Net operating loss carryforward 189 - Stock options 16 - Research and development 36 - Fixed assets 19 19 Deferred tax asset, net $ 367 $ 112
SCHEDULE OF CHANGES TO COMPANY'S UNCERTAIN TAX POSITIONS	The following table indicates the changes to the Company’s uncertain tax positions for the fiscal years ended December 31, 2022 and January 1, 2022: SCHEDULE OF CHANGES TO COMPANY'S UNCERTAIN TAX POSITIONS Balance at January 2, 2021 $ 172 Increase due to reserves and tax positions related to current year 8 Balance at January 1, 2022 $ 180 Increase due to reserves and tax positions related to current year 26 Balance at December 31, 2022 $ 206

SCHEDULE OF EARNINGS PER SHARE,

SCHEDULE OF EARNINGS PER SHARE, BASIC AND DILUTED (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Accounting Policies [Abstract]
Net income (loss), numerator, basic computation	$ (525)	$ 143
Net income (loss), numerator, diluted computation	$ (525)	$ 143
Weighted average shares - denominator basic computation	5,154	5,154
Weighted average shares, as adjusted - denominator diluted computation	5,154	5,154
Basic	$ (0.10)	$ 0.03
Diluted	$ (0.10)	$ 0.03

SCHEDULE OF WEIGHTED AVERAGE NU

SCHEDULE OF WEIGHTED AVERAGE NUMBERS OF SHARES (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Common Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares subject to outstanding, shares	250,000
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares subject to outstanding, shares		282,486

DESCRIPTION OF THE BUSINESS A_4

DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands		12 Months Ended
	May 02, 2020	Dec. 31, 2022	Jan. 01, 2022
Product Information [Line Items]
Cash, FDIC insured amount		$ 250
Percentage of tax benefits likelihood		likelihood greater than 50 percent
Forgiveness of debt income		$ 165
Freight costs		1,159	$ 1,037
Advertising costs		251	209
Product development costs		143	124
Paycheck Protection Program [Member]
Product Information [Line Items]
Proceeds from short-term debt	$ 165		$ 165
Debt instrument, interest rate	1%
Debt instrument, maturity date			May 02, 2022
Forgiveness of debt income		$ 165
Purchase [Member] | Supplier Concentration Risk [Member] | One Supplier [Member]
Product Information [Line Items]
Percentage of concentration risk		49%	50%
Purchase [Member] | Supplier Concentration Risk [Member] | Another Supplier [Member]
Product Information [Line Items]
Percentage of concentration risk		14%	11%
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer [Member]
Product Information [Line Items]
Percentage of concentration risk		88%	87%
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two Customers [Member]
Product Information [Line Items]
Percentage of concentration risk		47%	55%
Distributors Sales Revenue Net [Member] | Customer Concentration Risk [Member] | Customer [Member]
Product Information [Line Items]
Percentage of concentration risk		45%	45%

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Inventory Disclosure [Abstract]
Finished products	$ 1,387	$ 1,218
Raw materials and packaging	1,076	656
Inventories, net	$ 2,463	$ 1,874

EQUIPMENT (Details Narrative)

EQUIPMENT (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2022	Jan. 01, 2022
Property, Plant and Equipment [Line Items]
General and administrative expense		$ 1,404	$ 1,489
Equipment [Member]
Property, Plant and Equipment [Line Items]
Manufacturing costs	$ 102
Accumulated depreciation	15
Proceeds from sale of equipment	$ 50
General and administrative expense			$ 75

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	May 02, 2020	Jan. 06, 2016	Dec. 31, 2022	Jan. 01, 2022	Dec. 22, 2021
Short-Term Debt [Line Items]
Loan borrowed				$ 165
SBA loan payable			165
Interest expense			0	25
David Mintz [Member]
Short-Term Debt [Line Items]
Proceeds from related party debt		$ 500
David Mintz [Member] | Promissory Note [Member]
Short-Term Debt [Line Items]
Conversion price		$ 1.77
Debt instrument, face amount					$ 500
Accrued interest					$ 25
Paycheck Protection Program [Member]
Short-Term Debt [Line Items]
Proceeds from loan	$ 165			165
Loan payable interest rate	1%
Loan borrowed				$ 165
SBA loan payable			$ 165

SCHEDULE OF STOCK OPTION ACTIVI

SCHEDULE OF STOCK OPTION ACTIVITY (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Non-qualified options, outstanding, beginning balance | shares
Non-qualified options, weighted average exercise price beginning balance | $ / shares
Non-qualified options, granted | shares	250,000
Non-qualified options, weighted average exercise price, granted | $ / shares	$ 0.95
Non-qualified options, exercised | shares
Non-qualified options, weighted average exercise price, exercised | $ / shares
Non-qualified options, outstanding, ending balance | shares	250,000
Non-qualified options, weighted average exercise price ending balance | $ / shares	$ 0.95
Non-qualified options,exercisable | shares	83,333
Non-qualified options, weighted average exercise price, exercisable | $ / shares	$ 0.95

SCHEDULE OF INFORMATION ABOUT S

SCHEDULE OF INFORMATION ABOUT STOCK OPTIONS (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Share-Based Payment Arrangement [Abstract]
Range of exercise prices	$ 0.95
Number of option shares, outstanding	250,000
Weighted average remaining life (in years)	5 years
Weighted average exercise price	$ 0.95
Non-qualified options,exercisable	83,333

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares outstanding	250,000
Number of shares granted	250,000
Expected volatility	82.65%
Risk free interest rate	3.79%
Dividend rate	0%
Expected term	5 years
Intrinsic value of options outstanding	$ 60,000
Intrinsic value of exercisable options	20,000
Unrecognized compensation cost	$ 105,000
Number of shares options will expire	250,000
General and Administrative Expense [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation	$ 56,000
2014 Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common stock available for awards	250,000
Number of shares outstanding	250,000
Exercise price	$ 0.95
Number of shares options vesting	83,333
2014 Equity Incentive Plan [Member] | Share-Based Payment Arrangement, Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share based compensation	$ 250,000	$ 0
2014 Equity Incentive Plan [Member] | December 2023 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares options vesting	83,333
2014 Equity Incentive Plan [Member] | December 2024 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares options vesting	83,334

SCHEDULE OF DISAGGREGATION REVE

SCHEDULE OF DISAGGREGATION REVENUE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 12,827	$ 12,590
Cheeses [Member]
Disaggregation of Revenue [Line Items]
Revenues	10,951	10,761
Frozen Desserts and Foods [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,876	1,829
Americas [Member]
Disaggregation of Revenue [Line Items]
Revenues	12,110	11,864
Europe [Member]
Disaggregation of Revenue [Line Items]
Revenues	170	183
Middle East [Member]
Disaggregation of Revenue [Line Items]
Revenues	494	334
Asia Pacific and Africa [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 53	$ 209

REVENUE (Details Narrative)

REVENUE (Details Narrative)	Dec. 31, 2022	Jan. 01, 2022
Americas [Member]
Disaggregation of Revenue [Line Items]
Revenue, performance obligation, percentage	88%	87%

SCHEDULE OF ROU LEASE ASSETS AN

SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR OPERATING LEASES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Leases
Operating lease right-of-use assets	$ 158	$ 203
Current portion of lease liabilities	$ 74	$ 123
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses	Accrued expenses
Operating lease liabilities, net of current portion	$ 85	$ 95
Total lease liabilities	$ 159	$ 218
Weighted average remaining lease term (in years)	2 years 1 month 6 days	3 years
Weighted average discount rate	5.50%	5.50%

SCHEDULE OF ROU LEASE ASSETS _2

SCHEDULE OF ROU LEASE ASSETS AND LIABILITIES FOR FINANCE LEASES (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Leases
Finance lease right-of-use asset	$ 53
Current portion of lease liabilities	15
Operating lease liabilities, net of current portion	39
Total lease liabilities	$ 54
Weighted average remaining lease term (in years)	3 years 4 months 24 days
Weighted average discount rate	6.50%

SCHEDULE OF FUTURE LEASE PAYMEN

SCHEDULE OF FUTURE LEASE PAYMENTS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Leases
Lessee, Operating Lease, Liability, to be Paid, Year One	$ 81
Finance Lease, Liability, to be Paid, Year One	17
2023	98
Lessee, Operating Lease, Liability, to be Paid, Year Two	81
Finance Lease, Liability, to be Paid, Year Two	17
[custom:OperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearTwo-0]	98
Lessee, Operating Lease, Liability, to be Paid, Year Three	7
Finance Lease, Liability, to be Paid, Year Three	17
[custom:OperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearThree-0]	24
Lessee, Operating Lease, Liability, to be Paid, Year Four
Finance Lease, Liability, to be Paid, Year Four	8
[custom:OperatingLeaseAndFinanceLeaseLiabilityPaymentsDueYearFour-0]	8
Lessee, Operating Lease, Liability, to be Paid	169
Finance Lease, Liability, to be Paid	59
[custom:OperatingLeaseAndFinanceLeaseLiabilityPaymentsDue-0]	228
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(10)
Finance Lease, Liability, Undiscounted Excess Amount	(5)
[custom:OperatingLeaseAndFinanceLeaseLiabilityUndiscountedExcessAmount-0]	(15)
Operating Lease, Liability	159	$ 218
Finance Lease, Liability	54
[custom:OperatingLeaseAndFinanceLeaseLiability-0]	$ 213

LEASES (Details Narrative)

LEASES (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) ft²	Jan. 01, 2022 USD ($)
Leases
Area of real estate property | ft²	6,200
Payments for rent	$ 86	$ 79
Outside warehouse expense	363	459
Payments for rent copiers	$ 10	$ 35
Incremental borrowing rate, percentage	5.50%	6.50%

SCHEDULE OF COMPONENTS OF INCOM

SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Income Tax Disclosure [Abstract]
Current Federal		$ 64
Current State	26	39
Current Federal and State	26	103
Deferred Federal	(190)	(22)
Deferred State	(64)	(7)
Deferred Federal and State	(254)	(29)
Total income tax expense	$ (228)	$ 74

SCHEDULE OF RECONCILIATION BETW

SCHEDULE OF RECONCILIATION BETWEEN THE EXPECTED FEDERAL TAX EXPENSE AT STATUTORY TAX RATE (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Income Tax Disclosure [Abstract]
Federal income tax	$ (157)	$ 46
State income taxes, net of federal income tax benefit	(64)	18
Nontaxable forgiveness of PPP loan	(35)
Permanent items	2	3
Other	26	7
Total income tax expense	$ (228)	$ 74

SCHEDULE OF DEFERRED TAX ASSETS

SCHEDULE OF DEFERRED TAX ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Jan. 01, 2022
Income Tax Disclosure [Abstract]
Allowance for doubtful accounts	$ 105	$ 88
Right of use asset	(59)	(57)
Lease liabilities	60	61
Inventory	1	1
Net operating loss carryforward	189
Stock options	16
Research and development	36
Fixed assets	19	19
Deferred tax asset, net	$ 367	$ 112

SCHEDULE OF CHANGES TO COMPANY'

SCHEDULE OF CHANGES TO COMPANY'S UNCERTAIN TAX POSITIONS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Income Tax Disclosure [Abstract]
Beginning Balance	$ 180	$ 172
Increase due to reserves and tax positions related to current year	26	8
Ending Balance	$ 206	$ 180

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Jan. 01, 2022
Operating Loss Carryforwards [Line Items]
Statutory tax rate	21%	21%
Percentage of tax benefits likelihood	likelihood greater than 50 percent
Uncertain tax positions that would affect the effective tax rate	$ 206
Domestic Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	786
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 673