Tofutti Brands Inc.(TOFB), a renowned player in th e dairy-free and vegan food market, has released its unaudited condensed financial results for the second quarter of 2023, revealing a net loss of $318,000. The company also witnessed a decline in revenue, with net sales totaling $2.7 million for the same period. The challenging quarter was marked by fluctuations in operating expenses and the impact of income tax expense.
Tofutti Brands Inc. faced a net loss of $318,000 for the thirteen weeks ending July 1, 2023. This result marks a significant contrast from the same period in the previous year, where the company reported a net loss of $208,000.
Revenue
The company's revenue, represented by net sales, experienced a downturn during the second quarter of 2023. Tofutti Brands Inc. generated $2.7 million in net sales for the thirteen weeks ended July 1, 2023, compared to $2.98 million in the corresponding period of 2022. This decline reflects a challenging operating environment that the company navigated through during the quarter.
Tofutti Brands Inc. reported a gross profit of $667,000 for Q2 2023, marking an improvement from the $525,000 gross profit in the same period last year. However, operating expenses increased, reaching $848,000 for the second quarter of 2023, compared to $811,000 in the previous year. These expenses were attributed to selling and warehouse costs, marketing expenditures, research and development, and general administrative expenses.
The loss from operations was recorded at $181,000 for Q2 2023, an improvement from the $286,000 loss in the same quarter of 2022. Tofutti Brands Inc. also reported other income in the form of SBA loan forgiveness, which amounted to $165,000, providing a positive impact on the company's financial position.
Tofutti Brands Inc.'s financial position is reflected in its balance sheet as of July 1, 2023. The company's total assets amounted to $4.27 million, with current assets contributing significantly at $3.91 million. The balance sheet showcases the company's strategic allocation of resources across various asset categories, including cash, accounts receivable, inventories, and more.
Stockholders' Equity
The company's stockholders' equity stood at $3.71 million as of July 1, 2023. Tofutti Brands Inc. continues to maintain a robust equity base, with components such as common stock, additional paid-in capital, and retained earnings contributing to its overall equity position.
Tofutti Brands Inc. faced a challenging second quarter of 2023, characterized by a net loss of $318,000 and a decline in revenue, with net sales totaling $2.7 million. The company's financial performance was influenced by various factors, including operating expenses and income tax expenses. Despite the hurdles, Tofutti Brands Inc. maintains a solid financial position and remains committed to its position in the dairy-free and vegan food market.