TOFUTTI ANNOUNCES RESULTS FOR THE QUARTER ENDED MARCH 30, 2024

Cranford, New Jersey, May 14, 2024 (GLOBE NEWSWIRE) — TOFUTTI BRANDS INC. (OTCQX symbol: TOFB) today reported its results for the fiscal quarter ended March 30, 2024.

Tofutti Brands reported net sales of $2,212,000, a decrease of $278,000 or 11%, from net sales of $2,490,000 for the fiscal quarter ended April 1, 2023. Sales of our cheese products vegan cheeses decreased to $1,809,000 for the thirteen weeks ended March 30, 2024, from $2,100,000 for the thirteen weeks ended April 1, 2023, due to increased competition in the vegan cheese category. Sales of our frozen desserts increased slightly to $403,000 for the thirteen weeks ended March 30, 2024, compared to $390,000 for the thirteen weeks ended April 1, 2023.

Our gross profit decreased to $470,000 for the thirteen weeks ended March 30, 2024, from $606,000 for the thirteen weeks ended April 1, 2023, primarily due to reduced sales. Our gross profit percentage was 21% for the thirteen weeks ending March 30, 2024, compared to 24% for the thirteen weeks ending April 1, 2023. Our gross profit percentage decreased in part due to the fact that our Frozen dessert sales represented a higher increase. percentage of total sales. Our gross margin percentage is significantly lower on frozen dessert products compared to our cheese products. Continued increases in the costs of certain key ingredients and packaging have also negatively impacted our gross profit and gross profit percentage.

We incurred a net loss of $303,000, or $0.06 per share (basic and diluted) for the quarter ended March 30, 2024, compared to a net loss of $102,000, or $0.02 per share (basic and diluted), for the quarter ended April 1, 2024. 2023.

As of March 30, 2024, we had approximately $351,000 in cash and our working capital was approximately $3,159,000, compared to $837,000 in cash and working capital of $3,440,000 as of December 31, 2023.

Mr. Steven Kass, Managing Director and Chief Financial Officer of the Company, said: “We are working diligently to improve our business performance and return to profitability in 2024.

About Tofutti Brands Inc.

Founded in 1981, Tofutti Brands Inc. develops and distributes a full line of plant-based products. The Company sells over twenty-five (25) dairy-free foods, including cheese products and frozen desserts. Tofutti Brands Inc. is a recognized innovator in the food industry and has developed a complete line of delicious and healthy dairy-free foods. Available throughout the United States and in over fifteen (15) countries, Tofutti Brands answers the call of millions of people who are allergic or intolerant to dairy or wish to maintain a kosher or vegan diet. The Tofutti product line includes plant-based ice cream pints, cones, Tofutti Cutie® sandwiches and novelty products.

Forward-looking statements

Certain of the statements contained in this press release regarding the Company’s future prospects are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Actual results may vary materially depending on a number of factors, including the impact of COVID-19 on the economy and our operations, domestic and international business conditions, competition, changes in product mix or distribution channels, resource constraints encountered. in the promotion and development of new products and other risk factors detailed in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K.

Company contact:	Steve Kass
	Managing Director/CFO
	(908) 272-2400
	(908) 272-9492 (fax)

TOFUTTI BRANDS INC.
Unaudited condensed balance sheets
(in thousands, excluding per share and per share figures)

	March 30, 2024		December 30, 2023
Assets
Current assets:
Species	$	351	$	837
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $495 and $525.		889		828
Inventories		2,453		2,475
Prepaid expenses and other current assets		97		93
Total current assets		3,790		4,233

Assets under the right of use under simple rental		66		81
Asset under right of use under finance lease		32		36
Deferred tax assets		246		246
other assets		19		19
Total assets	$	4,153	$	4,615

Liabilities and equity
Current liabilities:
Accounts payable	$	209	$	237
Increased spending		407		541
Finance lease debt, current part		15		15
Total current liabilities		631		793

Debts linked to operating lease contracts, net of the short-term portion		—		7
Finance lease debt, net of the portion due less than one year		19		23
Total responsibilities		650		823

Equity:
Preferred shares – par value of $0.01 per share; authorized 100,000 shares, none issued and outstanding		—		—
Common shares – par value of $0.01 per share; authorized 15,000,000 shares, 5,153,706 shares issued and outstanding		52		52
Premium		337		323
Retained earnings		3,114		3,417
Total shareholder equity		3,503		3,792
Total liabilities and equity	$	4,153	$	4,615

TOFUTTI MARQUES, INC.
Unaudited Condensed Income Statements
(in thousands, except per share figures)

	Thirteen weeks completed March 30, 2024			Thirteen weeks completed April 1, 2023

Net sales	$	2,212		$	2,490
Cost of sales		1,742			1,884
Gross profit		470			606

Functionnary costs :
Sales and warehouse		214			271
Marketing		134			95
Research and development		42			28
general and administrative		382			302
		772			696

Operating loss		(302	)		(90	)

Loss before interest expense and income taxes		(302	)		(90	)
Interest charges		1			1
Loss before income tax		(303	)		(91	)
Provision for income taxes		—			11

Net loss	$	(303	)	$	(102	)

Weighted average of common shares outstanding:
Basic		5,154			5,154
Diluted		5,154			5,154

Profit (loss) per common share:
Basic	$	(0.06	)	$	(0.02	)
Diluted	$	(0.06	)	$	(0.02	)