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Tofutti Brands, Inc. (TOFB0.00%) has submitted its 10-Q filing for the quarterly period ended September 28, 2024.
The filing includes financial statements for the quarter, showing a decrease in net sales to $1,986,000 from $2,515,000 in the same quarter the previous year. The decrease is attributed to increased competition in the vegan cheese market and a decline in export cheese business.
Cost of sales for the quarter was $1,501,000, representing 76% of sales, compared to 69% in the same quarter of the previous year. This increase in cost ratio is due to reduced sales volume and increased promotional activity.
The company reported a gross profit of $485,000 for the quarter, compared to $786,000 in the previous year, with the decline attributed to reduced sales and increased competition.
Selling and warehouse expenses decreased slightly to $207,000 from $210,000, due to lower commission and meeting expenses.
Marketing expenses decreased to $83,000 from $103,000, primarily due to reduced advertising and artwork expenses.
Net loss for the quarter was $207,000, compared to a net income of $110,000 in the previous year.
Cash used in operating activities was $655,000, while cash used in financing activities was $6,000.
Tofutti had a working capital of $2,961,000 as of September 28, 2024. The company anticipates its existing cash and working capital will be sufficient to support its operations for the next twelve months.
The filing also details the company's lease agreements, including a new office lease in Edison, New Jersey, and the associated right-of-use assets and liabilities.
Tofutti does not have any off-balance sheet arrangements or material contractual obligations as of the end of the reporting period.
The company identified material weaknesses in its internal controls over financial reporting, citing a lack of resources and insufficient monitoring.
Tofutti continues to focus on its vegan and dairy-free soy-based cheeses and frozen desserts, with an emphasis on addressing competition in the market.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Tofutti Brands, Inc. quarterly 10-Q report dated November 18, 2024. To report an error, please email earnings@qz.com.