Tofutti Brands (TOFB) 10-Q 12 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 28, 2014	Aug. 08, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'TOFUTTI BRANDS INC	'
Entity Central Index Key	'0000730349	'
Trading Symbol	'tof	'
Current Fiscal Year End Date	'--01-03	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	5,153,706
Document Type	'10-Q	'
Document Period End Date	28-Jun-14	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'

Condensed_Balance_Sheets

Condensed Balance Sheets (USD $)	Jun. 28, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$171	$214	[1]
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $293 and $277, respectively	1,887	1,954	[1]
Inventories, net of reserve of $150 and $150, respectively	2,015	1,844	[1]
Prepaid expenses	42	40	[1]
Deferred costs	179	138	[1]
Total current assets	4,294	4,190	[1]
Other assets	16	16	[1]
Total assets	4,310	4,206	[1]
Current liabilities:	'	'
Accounts payable	1,123	877	[1]
Accrued expenses	362	459	[1]
Deferred revenue	193	153	[1]
Total current liabilities	1,678	1,489	[1]
Commitments and contingencies	'	'	[1]
Stockholders' equity:	'	'
Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued	'	'	[1]
Common stock - par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares at June 28, 2014, and 5,153,706 shares at December 28, 2013	52	52	[1]
Additional paid-in capital	'	'	[1]
Retained earnings	2,580	2,665	[1]
Total stockholders' equity	2,632	2,717	[1]
Total liabilities and stockholders' equity	$4,310	$4,206	[1]
[1]	Derived from audited financial information.

Condensed_Balance_Sheets_Paren

Condensed Balance Sheets (Parentheticals) (USD $)	Jun. 28, 2014	Dec. 28, 2013
In Thousands, except Share data, unless otherwise specified
Statement Of Financial Position [Abstract]	'	'
Allowance for doubtful accounts and sales promotions on accounts receivables (in dollars)	$293	$277
Inventories, reserves (in dollars)	$150	$150
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	100,000	100,000
Preferred stock, shares issued	'	'
Common stock, par value (in dollars per share)	$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_Operat

Condensed Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Income Statement [Abstract]	'	'	'	'
Net sales	$3,498	$4,262	$7,355	$7,701
Cost of sales	2,537	2,773	5,104	5,208
Gross profit	961	1,489	2,251	2,493
Operating expenses:	'	'	'	'
Selling and warehouse	425	464	811	946
Marketing	147	180	273	324
Research and development	147	160	337	321
General and administrative	432	504	908	984
Total operating expenses	1,151	1,308	2,329	2,575
Income (loss) before income taxes	-190	181	-78	-82
Income tax expense	'	'	6	6
Net income (loss)	($190)	$181	($84)	($88)
Weighted average common shares outstanding:	'	'	'	'
Basic and diluted (in shares)	5,154	5,154	5,154	5,154
Net income (loss) per common share:	'	'	'	'
Basic and diluted (in dollars per share)	($0.04)	$0.04	($0.02)	($0.02)

Condensed_Statements_of_Cash_F

Condensed Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 28, 2014		Jun. 29, 2013
Statement Of Cash Flows [Abstract]	'		'
Cash (used in) operating activities, net	($43)		($120)
Cash (used in) financing activities, net	'		'
Net (decrease) in cash and cash equivalents	-43		-120
Cash and cash equivalents at beginning of period	214	[1]	471
Cash and cash equivalents at end of period	171		351
Supplemental cash flow information:	'		'
Income taxes paid	$6		$6
[1]	Derived from audited financial information.

Liquidity_and_Capital_Resource

Liquidity and Capital Resources	6 Months Ended
	Jun. 28, 2014
Liquidity and Capital Resources [Abstract]	'
Liquidity and Capital Resources	'
	Note 1:   Liquidity and Capital Resources
	At June 28, 2014, Tofutti Brands, Inc. (“Tofutti” or the “Company”) had approximately $171 in cash compared to $214 at December 28, 2013.  Net cash used in operating activities for the twenty-six weeks ended June 28, 2014 was $43 compared to $120 used in operating activities for the twenty-six weeks ended June 29, 2013.  Net cash used in operating activities for the twenty-six weeks ended June 28, 2014 was primarily a result of the net loss of $84 as well as increases in inventory and deferred costs offset by increases in accounts payable and accrued expenses.
	The Company has historically financed operations and met capital requirements primarily through positive cash flow from operations.  However, due to the net losses and cash used in operations in the previous two fiscal years, the Company may require additional financing in order to accomplish or exceed their business plans for future periods.  The Company continues to implement cost cutting measures in fiscal year 2014 as a way to increase profitability and operating cash flow in future periods.
	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 as 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	6 Months Ended
	Jun. 28, 2014
Description Of Business [Abstract]	'
Description of Business	'
	Note 2:   Description of Business
	Tofutti Brands Inc. is engaged in one business segment, the development, production and marketing of non-dairy frozen desserts and other food products.

Basis_of_Presentation

Basis of Presentation	6 Months Ended
	Jun. 28, 2014
Basis Of Presentation [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 condensed balance sheet amounts as of December 28, 2013 are derived from our audited financial statements for the year ended December 28, 2013.  The financial information should be read in conjunction with the audited financial statements and notes thereto for the year ended December 28, 2013 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 twenty-six  week periods ended June 28, 2014 are not necessarily indicative of the results to be expected for the full year or any other period.
	The Company operates on a fiscal year which ends on the Saturday closest to December 31st.

Recent_Accounting_Pronouncemen

Recent Accounting Pronouncements	6 Months Ended
	Jun. 28, 2014
Accounting Changes and Error Corrections [Abstract]	'
Recent Accounting Pronouncements	'
	Note 4:   Recent Accounting Pronouncements
	In May, 2014, the FASB issued an accounting standards update that completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for us for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and companies have the choice to apply the update either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the update at the date of initial application (January 1, 2017) and not adjusting comparative information. The Company is currently evaluating the requirements of this update and has not yet determined its impact on its financial statements.

Inventories

Inventories	6 Months Ended
	Jun. 28, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Note 5: Inventories
	The composition of inventories, net of reserves of $150 and $150, is as follows:
		June 28,		December 28,
		2014		2013
	Finished products	$	1,414	$	1,342
	Raw materials and packaging		601		502
		$	2,015	$	1,844

Income_Taxes

Income Taxes	6 Months Ended
	Jun. 28, 2014
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. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. As of the periods ended June 28, 2014 and December 28, 2013, the Company recorded a full valuation allowance on its deferred tax asset balances of $564 and $547, respectively.

Earnings_Loss_Per_Share

Earnings (Loss) Per Share	6 Months Ended
	Jun. 28, 2014
Earnings Per Share [Abstract]	'
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.  As of June 28, 2014 and June 29, 2013, the Company had no outstanding instruments that impact diluted earnings per share.
	The following table sets forth the computation of basic and diluted earnings (loss) per share:
		Thirteen			Thirteen		Twenty-six			Twenty-six
		Weeks			Weeks		Weeks			Weeks
		Ended			Ended		Ended			Ended
		28-Jun-14			29-Jun-13		28-Jun-14			29-Jun-13
	Numerator
	Net  income (loss)-basic and diluted	$	(190	)	$	181	$	(84	)	$	(88	)
	Denominator
	Denominator for basic and diluted earnings per share weighted average shares		5,154			5,154		5,154			5,154
	Earnings (loss) per common share basic and diluted	$	(0.04	)	$	0.04	$	(0.02	)	$	(0.02	)

Share_Based_Compensation

Share Based Compensation	6 Months Ended
	Jun. 28, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Share Based Compensation	'
	Note 8: 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. As of June 28, 2014, the Company had not issued any awards under the 2014 Plan. 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.”

Inventories_Tables

Inventories (Tables)	6 Months Ended
	Jun. 28, 2014
Inventory Disclosure [Abstract]	'
Schedule of composition of inventories	'
		June 28,		December 28,
		2014		2013
	Finished products	$	1,414	$	1,342
	Raw materials and packaging		601		502
		$	2,015	$	1,844

Earnings_Loss_Per_Share_Tables

Earnings (Loss) Per Share (Tables)	6 Months Ended
	Jun. 28, 2014
Earnings Per Share [Abstract]	'
Schedule of computation of basic and diluted earnings (loss) per share	'
		Thirteen			Thirteen		Twenty-six			Twenty-six
		Weeks			Weeks		Weeks			Weeks
		Ended			Ended		Ended			Ended
		28-Jun-14			29-Jun-13		28-Jun-14			29-Jun-13
	Numerator
	Net  income (loss)-basic and diluted	$	(190	)	$	181	$	(84	)	$	(88	)
	Denominator
	Denominator for basic and diluted earnings per share weighted average shares		5,154			5,154		5,154			5,154
	Earnings (loss) per common share basic and diluted	$	(0.04	)	$	0.04	$	(0.02	)	$	(0.02	)

Liquidity_and_Capital_Resource1

Liquidity and Capital Resources (Detail Textuals) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013	Dec. 28, 2013		Dec. 29, 2012
Liquidity and Capital Resources [Abstract]	'	'	'	'	'		'
Cash and cash equivalents	$171	$351	$171	$351	$214	[1]	$471
Net cash used in operating activities	'	'	-43	-120	'		'
Net loss	($190)	$181	($84)	($88)	'		'
[1]	Derived from audited financial information.

Description_of_Business_Detail

Description of Business (Detail Textuals)	6 Months Ended
	Jun. 28, 2014
	Segment
Description Of Business [Abstract]	'
Number of business segments	1

Inventories_Summary_compositio

Inventories - Summary composition of inventories (Details) (USD $)	Jun. 28, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Finished products	$1,414	$1,342
Raw materials and packaging	601	502
Inventories, net	$2,015	$1,844	[1]
[1]	Derived from audited financial information.

Inventories_Detail_Textuals

Inventories (Detail Textuals) (USD $)	Jun. 28, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Inventories, reserves	$150	$150

Income_Taxes_Detail_Textuals

Income Taxes (Detail Textuals) (USD $)	Jun. 28, 2014	Dec. 28, 2013
In Thousands, unless otherwise specified
Income Tax Disclosure [Abstract]	'	'
Deferred tax asset balances	$564	$547

Earnings_Loss_Per_Share_comput

Earnings (Loss) Per Share - computation of basic and diluted earnings (loss) per share (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 28, 2014	Jun. 29, 2013	Jun. 28, 2014	Jun. 29, 2013
Numerator	'	'	'	'
Net income (loss)-basic and diluted	($190)	$181	($84)	($88)
Denominator	'	'	'	'
Denominator for basic and diluted earnings per share weighted average shares (in shares)	5,154	5,154	5,154	5,154
Earnings (loss) per common share basic and diluted (in dollars per share)	($0.04)	$0.04	($0.02)	($0.02)

Share_Based_Compensation_Detai

Share Based Compensation (Detail Textuals) (2014 Equity Incentive Plan (the "2014 Plan"))	Jun. 10, 2014
2014 Equity Incentive Plan (the "2014 Plan")	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Common Stock available for awards	250,000