TOFB 10-K Annual Report Dec. 29, 2012

TOFUTTI BRANDS INC

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10-K 1 t76041_10k.htm FORM 10-K t76041_10k.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the fiscal year ended December 29, 2012

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

Commission File Number: 1-9009

TOFUTTI BRANDS INC. (Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation or organization)	13-3094658 (I.R.S. Employer Identification No.)

50 Jackson Drive, Cranford, New Jersey (Address of principal executive offices)	07016 (Zip Code)

(908) 272-2400

((Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

	Title of each class			Name of each exchange on which registered
Common Stock, par value $0.01 per share			NYSE MKT

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes o No x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes o No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No x

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer o Accelerated Filer o Non-Accelerated Filer o Smaller Reporting Company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)

Yes o No x

The aggregate market value of the voting stock held by non-affiliates of the Registrant as of the most recently completed second fiscal quarter: $3,589,000

As of March 26, 2013, the issuer had 5,153,706 shares of common stock, par value $0.01, outstanding.

TABLE OF CONTENTS


PART I			3
	Item 1.	Business	3
	Item 1A.	Risk Factors	10
	Item 1B.	Unresolved Staff Comments	15
	Item 2.	Properties	16
	Item 3.	Legal Proceedings	16
	Item 4.	Mine Safety Disclosures	16
PART II			17
	Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	17
	Item 6.	Selected Financial Data.	19
	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
	Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	23
	Item 8.	Financial Statements and Supplementary Data	24
	Item 9.	Changes In and Disagreements With Accountants on Accounting and Financial Disclosure	25
	Item 9A.	Controls and Procedures	25
	Item 9B.	Other Information	26
PART III			27
	Item 10.	Directors, Executive Officers and Corporate Governance	27
	Item 11.	Executive Compensation	30
	Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	31
	Item 13.	Certain Relationships and Related Transactions, and Director Independence	32
	Item 14.	Principal Accounting Fees and Services	33
PART IV			34
	Item 15.	Exhibits and Financial Statement Schedules	34
SIGNATURES			36

INTRODUCTION

As used in this annual report, the terms “we,” “us” and “our” mean Tofutti Brands Inc., unless otherwise indicated. Statements made in this annual report concerning the contents of any contract, agreement or other document are summaries of such contracts, agreements or documents and are not complete descriptions of all of their terms. If we filed any of these documents as an exhibit to this annual report or to any previous filling with the Securities and Exchange Commission, you may read the document itself for a complete recitation of its terms.

Except for the historical information contained in this annual report, the statements contained in this annual report are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, as amended, with respect to our business, financial condition and results of operations. Such forward-looking statements reflect our current view with respect to future events and financial results. We urge you to consider that statements which use the terms “anticipate,” “believe,” “do not believe,” “expect,” “plan,” “intend,” “estimate,” “anticipate” and similar expressions are intended to identify forward-looking statements. We remind readers that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could cause the actual results, performance, levels of activity, or our achievements, or industry results, to be materially different from any future results, performance, levels of activity, or our achievements expressed or implied by such forward-looking statements. Such forward-looking statements are also included in Item 1. “Business” and Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Except as required by applicable law, including the securities laws of the United States, we undertake no obligation to publicly release any update or revision to any forward-looking statements to reflect new information, future events or circumstances, or otherwise after the date hereof. We have attempted to identify significant uncertainties and other factors affecting forward-looking statements in the Risk Factors section that appears in Item 1A. “Risk Factors.”

We operate on a fiscal year ending on the Saturday closest to December 31. Fiscal years for the financial statements included herein are the fifty-two week periods ended December 29, 2012 (fiscal 2012) and December 31, 2011 (fiscal 2011).

PART I

Item 1.

Business.

GENERAL

We are engaged in the development, production and marketing of TOFUTTI® brand nondairy frozen desserts and other food products. TOFUTTI products are nondairy, soy-based products which contain no butterfat, cholesterol or lactose. Our products are 100% milk free yet offer the same texture and full-bodied taste as their dairy counterparts. Our products are also free of cholesterol and derive their fat from soy and corn, both naturally lower in saturated fat than dairy products.

We were organized under the laws of the State of New York in 1981 and became a Delaware corporation in 1984. Our registered office and principal executive offices are located at 50 Jackson Drive, Cranford, New Jersey 07016, our telephone number is 908-272-2400 and our email address is info@tofutti.com. Our address on the Internet is www.tofutti.com. The information on our website is not incorporated by reference into this annual report.

STRATEGY

Our objective is to be a leading provider of nondairy, vegan, soy-based food products, primarily frozen desserts and soy-cheese products, to supermarkets and health food stores in the United States and abroad. We intend to continue to introduce new products that offer good taste while containing no butterfat, cholesterol or dairy to these markets.

We focus our marketing efforts toward those consumers who find our products essential to their everyday diets because of health, lifestyle or religious reasons. In order to broaden the use of our soy-cheese products, we incorporate them into our branded food products such as blintzes, pizza and ravioli. As part of this strategy, we seek to achieve brand awareness through product innovation, eye-catching packaging, trade advertising, and a strong word-of-mouth marketing program. We believe that our ability to offer a wide range of nondairy, soy-based parve kosher products will continue to provide us with a competitive advantage.

TOFUTTI PRODUCT LINE

We offer a broad product line of nondairy soy-based products. Our products include frozen desserts, nondairy soy-based cheeses and spreads, and other frozen food products.

Frozen Desserts

Premium TOFUTTI® nondairy frozen dessert, available in prepacked pints, three-gallon cans, and soft serve mix, is sold nationally in supermarkets, health food stores, retail shops, and restaurants. Premium TOFUTTI was the first nondairy frozen dessert to be marketed to the general public through supermarkets. We currently offer seven flavors of premium, hard frozen TOFUTTI in pints. Premium TOFUTTI soft serve mix is available in Vanilla. TOFUTTI in three gallon bulk cans is available in three flavors.

TOFUTTI CUTIES® , our best selling product, are bite size frozen sandwiches combining a Vanilla, Cookies and Cream, Chocolate, Mint Chocolate Chip or Wild Berry filling between two chocolate wafers. Half the size of traditional ice cream sandwiches, TOFUTTI CUTIES offer consumers a portion controlled treat. Unlike ice cream sandwiches, CUTIES are totally dairy free, without butterfat or cholesterol, yet with the same great taste that makes ice cream sandwiches one of the best selling novelties in the freezer case. Like all our frozen dessert products, they are completely trans fat free, including the wafers. For those individuals who cannot have chocolate, we offer our TOTALLY VANILLA TOFUTTI CUTIE , made from vanilla TOFUTTI between two vanilla wafers, while our KEY LIME CUTIE combines tangy lime-flavored TOFUTTI between two vanilla wafers.

YOURS TRULY cones have a generous scoop of creamy vanilla TOFUTTI set in a chocolate-coated crispy cone, then covered in deep, rich chocolate and topped with a crispy chocolate cookie crunch. T he YOURS TRULY CARAMEL SUNDAE cone has a caramel core in the center of vanilla TOFUTTI, while YOURS TRULY TRIPLE CHOCOLATE HAPPINESS cones have a chocolate core.

TOTALLY FUDGE POPS ® , CHOCOLATE FUDGE TREATS, and COFFEE BREAK TREATS are stick novelties that offer the consumer the same taste as real fudge or coffee bars. The TOTALLY FUDGE POPS, made with organic sugar and with no gluten added, have 70 calories and 1 gram of fat per bar, while fat free, no sugar added CHOCOLATE FUDGE TREATS and COFFEE BREAK TREATS ™ have only 30 calories per bar. Both products appeal to anyone on either a low fat or low carb diet.

CHOCOLATE COVERED FLOWERS, a frozen dessert stick novelty, combine a dark chocolate coating over a blend of frozen flower and fruit nectars for a portion controlled treat.

HOORAY HOORAY is an exciting new sugar free stick novelty made with stevia, a natural sugar replacement ideal for those individuals who want to avoid sugar. Each bar has a creamy center of vanilla Tofutti, surrounded by a sugar-free chocolate coating containing crisped rice

CAFÉ LATTE is a stick novelty with a center of rich coffee flavored Tofutti surrounded by a deep chocolate coating

BLACK GOLD is a stick novelty, which takes rich chocolate Tofutti and enrobes it in a deep, dark chocolate coating

MARRY ME BARS ™ are stick novelties that feature creamy vanilla TOFUTTI surrounded by a dark chocolate coating. Made with organic sugar and with no gluten added, MARRY M E BARS satisfy important diet requirements of certain consumers with that great TOFUTTI taste.

Nondairy Soy-Based Cheese Products

BETTER THAN CREAM CHEESE ® is similar in taste and texture to traditional cream cheese, but is milk-free, butterfat-free, gluten-free and contains no cholesterol. It is as versatile as real cream cheese, whether spread on a bagel, used as a dip for snack items, such as crackers or chips, or used in any favorite recipe. It is available in 8 oz. retail packages, 1 ounce portion-controlled cups or 30 lb. bulk boxes for food service customers.

SOUR SUPREME ® is similar in taste and texture to traditional sour cream, but is milk-free, butterfat-free, gluten-free and contains no cholesterol. SOUR SUPREME has the versatility of sour cream with the added benefit of being dairy free. The 12 oz. retail packages are available in plain and guacamole. The plain version is also available in 5 lb. containers or 30 lb. bulk boxes for food service customers. Like BETTER THAN CREAM CHEESE, SOUR SUPREME is sold nationally in most health food stores and select supermarkets.

TOFUTTI also offers versions of BETTER THAN CREAM CHEESE and SOUR SUPREME without partially hydrogenated fat and no trans fatty acids. They are also made with organic sugar and are available in most health food stores. Non-hydrogenated fat BETTER THAN CREAM CHEESE is available in three flavors and the plain flavor is also available in 30 lb. bulk boxes.

TOFUTTI SOY-CHEESE SLICES ™ offer consumers a delicious nondairy, gluten-free, vegan alternative to regular cheese slices and contain no trans fatty acids. Available as individually wrapped slices in 8 oz. packages, TOFUTTI SOY-CHEESE SLICES are sold in most health food stores and select supermarkets and come in two types: Mozzarella and American.

BETTER THAN RICOTTA CHEESE ® , our dairy free ricotta cheese alternative offers consumers a dairy-free and gluten-free alternative that tastes and works just like real ricotta cheese in all their favorite recipes. Available in 16 oz retail and bulk sizes for food service, BETTER THAN RICOTTA is available nationally in supermarkets and health food stores

Frozen Food Products

TOFUTTI PIZZA PIZZAZ combines a delicious pan crust, zesty sauce and TOFUTTI totally dairy free mozzarella cheese into a completely authentic, yet healthy pizza. TOFUTTI PIZZA PIZZAZ is sold three squared slices to a package and is available in freezer cases in select supermarkets and health food stores.

TOFUTTI BLINTZES are frozen crepes filled with TOFUTTI BETTER THAN CREAM CHEESE that are dairy and cholesterol free, yet taste just like real cheese blintzes. Our BLINTZES are available in freezer cases in select supermarkets and health food stores and can be served hot, warm, or slightly chilled as a main meal or a snack.

TOFUTTI RAVIOLI combine our delicious BETTER THAN RICOTTA CHEESE® blend with egg free pasta into a healthy and filling meal. The product is available in jumbo round and bite-sized square sizes sold in 12 oz bags and is available in freezer cases in many health food stores.

2013 Product Introductions

During 2013, we plan to introduce additional varieties of pizza, soy-cheese slices, and new food service sizes of certain of our soy-cheese products.

MARKETING AND DISTRIBUTION

TOFUTTI products are sold and distributed across the United States and internationally, and can be found in gourmet specialty shops, kosher supermarkets, natural/health food stores, and national and regional supermarket chains. All of our products are sold by independent unaffiliated food brokers to distributors and sometimes on a direct basis to retail chain accounts. Food brokers act as our agents within designated territories or for specific accounts and receive commissions, which average 4% of net collected sales. Certain key domestic accounts and all international accounts are handled directly by us. Our products are also sold in approximately thirty other countries.

We currently sell our frozen dessert products in most major markets in the United States, including Atlanta, Baltimore, Boston, Charlotte, Chicago, Cincinnati, Cleveland, Dallas, Denver, Detroit, Houston, Kansas City, Los Angeles, Miami, Milwaukee, Minneapolis, New York, Orlando, Philadelphia, Phoenix, Portland, Richmond, San Francisco, Seattle, St. Louis, Tampa and Washington, D.C.

We currently distribute all of our products by common carrier or by allowing customers to pick-up products from outside storage facilities. We do not own, lease or otherwise maintain any vehicles involved in the shipping of our products. From our co-packing facilities, we either ship direct to our customers or we ship to outside public storage facilities from which our customers are able to pick-up products. Use of outside storage facilities in several key locations in the United States allows us to provide our customers with products in a timely fashion.

In addition to ice cream distributors, our products are handled by almost every major national and regional natural and/or gourmet specialty distributor in the country. We distribute our products through thirty (30) distributors in the national health food market. In certain situations, we also sell directly to several major supermarket chains who maintain their own warehouses.

Our sales to health food accounts in fiscal 2012 decreased to approximately $7,088,000, or 49% of total sales, as compared to approximately $8,276,000, or 52% of total sales, in fiscal 2011. This decrease was primarily attributable to no sales to Trader Joe’s in 2012. Our sales to the kosher market decreased to approximately $1,127,000, or 8% of sales, in fiscal 2012, from sales of approximately $1,624,000, or 10% of sales, in fiscal 2011. In fiscal 2012, there were no sales to Trader Joe’s as compared to sales of approximately $1,420,000, or 9% of sales, in fiscal 2011. Trader Joe’s, formerly our largest customer, decided to cease selling branded goods in mid-2011. The decline in domestic sales in the California market indicated in the table below from 19% of sales in fiscal 2011 to 13% of sales in fiscal 2012 was due primarily to the loss of sales to Trader Joe’s in that market.

The following table presents the geographical breakdown of our sales in our largest domestic markets for the last two fiscal years.

	Fiscal Year ended December 29, 2012					Fiscal Year ended December 31, 2011
	Sales		% of total Sales			Sales		% of total Sales
	(Dollars in thousands)
Midwest	$	2,234		16	%	$	2,525		16	%
Metropolitan New York		2,186		15	%		2,314		15	%
New England		1,946		14	%		2,068		13	%
California		1,866		13	%		2,998		19	%
Florida		875		6	%		530		3	%
Mid-Atlantic		718		5	%		815		5	%
Northwest		702		5	%		833		5	%
Southwest		466		3	%		341		2	%
Rocky Mountains		310		2	%		363		2	%
Southeast		286		2	%		297		2	%
Upstate New York		261		2	%		237		1	%

During fiscal 2012, we shipped our products to distributors in Australia, Brazil, Canada, Taiwan, England, Israel, Mexico, Panama and Trinidad. Our distributor in England is our master distributor for all of Europe and part of the Middle East, excluding Israel, and sells our products to approximately twenty other countries. Sales to foreign distributors increased slightly to approximately $2,057,000, or 14% of sales, in fiscal 2012, as compared to approximately $2,049,000, or 13% of sales, in fiscal 2011. We conduct all of our foreign business in U.S. dollars. Accordingly, our future export sales could be adversely affected by an increase in the value of the U.S. dollar against local currencies, which could increase the local currency price of our products.

COMPETITION

TOFUTTI frozen desserts compete with all forms of ice cream products, yogurt-based desserts and other soy-based frozen desserts. We believe that we are a leader in the nondairy frozen dessert product market and offer the most complete line of nondairy frozen dessert products. Other soy-based frozen dessert products are presently being sold throughout the United States by established manufacturers, distributors of ice cream and other frozen dessert products. The ice cream and frozen dessert industry is highly competitive and most companies with whom we compete are substantially larger and have significantly greater resources than us. Our other products also face substantial competition from both nondairy and dairy competitive products marketed by companies with significantly greater resources than we have. We believe that we are able to compete effectively due to our ability to offer an array of non-dairy frozen dessert and other food products that contain no butterfat, cholesterol or lactose and are 100% milk-free, yet offer the same texture and full-bodied taste as their dairy counterparts.

PRODUCT DEVELOPMENT

All of our current products were developed internally in our own laboratory. David Mintz, our Chief Executive Officer, devotes a substantial amount of his time and effort to new product development and product reformulation. In fiscal 2012 and 2011, our product development expenses were approximately $643,000 and $546,000, respectively. These amounts do not include any portion of Mr. Mintz’s salary. All product development costs are expensed as incurred and are recorded as operating expenses in our financial statements.

PRODUCTION

We believe that all of our products are produced under the strictest quality control procedures that are available in each manufacturing facility used by us. These quality control procedures include, but are not limited to, the cleaning processes utilized prior to running our products; spot line inspections during production; in-house laboratory testing as required by government agencies; supervision of all our production by our kosher supervisory service; and random testing by outside independent laboratories to ensure that our internal quality control procedures and guidelines are being properly followed.

All of our products are produced by co-packers to whom we supply certain key ingredients and packaging for the manufacturing processes. Our co-packing facilities are fully licensed and must comply with all state and federal laws and regulations. We currently utilize seven co-packers. Our co-packers manufacture and package our products and, in certain instances, warehouse such products pending shipment. For certain key product categories, such as nondairy frozen desserts and nondairy cheeses, we have more than one co-packer. In selecting an appropriate co-packer, we take into account all of the preceding factors, plus cost considerations such as product processing fees and freight and warehouse expenses.

During the years ended December 29, 2012 and December 31, 2011, we purchased approximately 26% and 28%, respectively, of our finished goods from Ice Cream Specialties, our primary frozen dessert novelty co-packer, and 30% and 24% of our finished goods, respectively, from Franklin Foods, our BETTER THAN CREAM CHEESE, SOUR SUPREME, and BETTER THAN RICOTTA co-packer.

Relationships with Co-Packers

We do not have any written production agreements with our co-packers and do not anticipate that we would encounter any material difficulty in obtaining alternative production sources, at a comparable cost, if one or all of our co-packers decide to terminate their relationships with us. Nevertheless, any disruption in supply could have a material adverse effect on our company.

In order to protect our formulas, we have entered into confidentiality arrangements with our co-packers and certain of their employees. All of our employees, including officers, sign similar confidentiality agreements. There can be no assurance that such confidentiality arrangements can or will be maintained, or that our trade secrets, know-how and marketing ability cannot be obtained by others, or that others do not now possess similar or even more effective capabilities.

Kosher Certification

KOF-K Kosher Supervision, or KOF-K, of Teaneck, New Jersey provides us with our kosher certification service. Before KOF-K will permit its certification, evidenced by its symbol, to be placed on a product, KOF-K must approve both the ingredients contained in the product and the facility processing the product. Approval of the manufacturing facilities we use include periodic inspections, and in most cases, on-site supervision of actual production. We pay a yearly renewal fee for certification. We believe that our ability to successfully market and distribute our products is dependent upon our continued compliance with the requirements of rabbinical certification. All TOFUTTI products meet the requirements for certification as kosher-parve.

Halal Certification

In early 2013, we completed a halal certification process at Franklin Foods, the co-packer of our BETTER THAN CREAM CHEESE , SOUR SUPREME , and BETTER THAN RICOTTA products. This certification is provided by the Islamic Food and Nutrition Council of America (IFANCA) of Park Ridge, Illinois and is currently only for those products manufactured by Franklin Foods. Before IFANCA will permit its certification, evidenced by its symbol, to be placed on a product, IFANCA must approve both the ingredients contained in the product and the facility processing the product. Approval of the manufacturing facilities we use include periodic inspections. There is a yearly renewal fee for certification.

TRADEMARKS AND PATENTS

We have registered our trademark, TOFUTTI®, and other trademarks for our frozen desserts and other products in the United States and approximately thirty-five foreign countries. We believe our trademarks are an important means of establishing consumer recognition for our products and we will vigorously oppose any unauthorized use of our trademarks. We are not currently involved in any trademark litigation.

Although we believe that our formulas and processes are proprietary, we have not sought patent protection for such technology. Instead, we are relying on the complexity of our technology, on trade secrecy laws and on confidentiality agreements. We believe that our technology has been independently developed and does not infringe the patents of others.

GOVERNMENT REGULATION

Companies engaged in the manufacture, packaging and distribution of food items are subject to extensive regulation by various government agencies which, pursuant to statutes, rules, and regulations, prescribe quality, purity, manufacturing and labeling requirements. Food products are often subject to “standard of identity” requirements, which are promulgated at either the Federal or state level to determine the permissible qualitative and quantitative ingredient content of food. To the extent that any product that we seek to market does not conform to an applicable standard, special permission to market such a product is required.

Our United States product labels are subject to regulation by the United States Food and Drug Administration, or the FDA. Such regulations include standards for product descriptions, nutritional claims, label format, minimum type sizes, content and location of nutritional information panels, nutritional comparisons, and ingredient content panels. Our labels, ingredients and manufacturing processes are subject to inspection by the FDA. We believe that we are in compliance with current labeling requirements and conduct periodic reviews to make certain that such compliance is on-going.

The Food, Drug and Cosmetic Act, the Food Safety Modernization Act and rules and regulations promulgated by the FDA thereunder, contain no specific Federal standard of identity which is applicable to our products. Our frozen dessert products meet the New York State standard of identity for “parevine,” which has been adopted by at least eight other states. Many states require registration and label review before food products can be sold. While approval in one jurisdiction generally indicates the products will meet with approval in other jurisdictions, there is no assurance that approval from other jurisdictions will be forthcoming.

Food manufacturing facilities are subject to inspections by various safety, health and environmental regulatory authorities. A finding of a failure to comply with one or more regulatory requirements can result in the imposition of sanctions including the closing of all or a portion of a company’s facilities, subject to a period during which the company can remedy the alleged violations. Our Cranford, New Jersey facility is subject to inspection by the New Jersey-Kosher Enforcement Bureau and the New Jersey Environmental Health Services. We believe that we and our distributors and co-packers are in compliance in all material respects with governmental regulations regarding our current products and have obtained the material governmental permits, licenses, qualifications and approvals required for our operations. Our compliance with Federal, state and local environmental laws has not materially affected us either economically or in the manner in which we conduct our business. However, there can be no assurance that our company, our distributors and our co-packers will be able to comply with such laws and regulations in the future or that new governmental laws and regulations will not be introduced that could prevent or temporarily inhibit the development, distribution and sale of our products to consumers.

New government laws and regulations may be introduced in the future that could result in additional compliance costs, seizures, confiscations, recalls or monetary fines, any of which could prevent or inhibit the development, distribution and sale of our products. If we fail to comply with applicable laws and regulations, we may be subject to civil remedies, including fines, injunctions, recalls or seizures, as well as potential criminal sanctions, which could have a material adverse effect on our business, results of operations and financial condition.

EMPLOYEES

On December 29, 2012, we employed fourteen persons on a full-time basis as compared to ten persons on a full time basis on December 31, 2011. We do not have any collective bargaining agreements with our employees.

Item 1A. Risk Factors.

Investing in our common stock involves a high degree of risk and uncertainty. You should carefully consider the risks and uncertainties described below before investing in our common stock. If any of the following risks actually occurs, our business prospects, financial condition and results of operations could be harmed. In that case, the value of our common stock could decline, and you could lose all or part of your investment.

Risks Related to Our Business

We may not be able to attain profitability in the future. To the extent that we continue to incur operating losses, we may not have sufficient working capital to fund our operations in the future.

Since mid-2011, when our then largest customer, Trader Joe ’ s (which accounted for 9% of our net sales in fiscal 2011 and 19% of our net sales in fiscal 2010), discontinued stocking branded goods, our sales have continued to decline as we have been unable to replace those sales. The loss of revenues from Trader Joe’s has affected our profitability. We had net income of $462,000 in the year ended January 1, 2011 and $43,000 in the year ended December 31, 2011 and incurred a net loss of $824,000 in the year ended December 29, 2012. If we are unable to increase revenues, we may not be able to return to or sustain profitable operations in the future or generate positive cash flows from our operations. The lack of sufficient working capital could also negatively impact our ability to introduce and adequately promote new products.

As of December 29, 2012, we had $471,000 in cash and cash equivalents and our working capital was $3,609,000. To the extent that we incur operating losses in the future or are unable to generate free cash flows from our business, we may not have sufficient working capital to fund our operations and will be required to obtain additional financing. Such financing may not be available, or, if available, may not be on terms satisfactory to us. If adequate funds are not available to us, our business, and results of operations and financial condition will be adversely affected.

We depend on a few key distributors for a significant portion of our sales.

A significant portion of our sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 45% of our net sales for the fiscal year ended December 29, 2012 and 35% of our net sales for the fiscal year ended December 31, 2011. Although we believe that the business associated with any of our primary distributors can be readily transferred to other distributors or directly to supermarket warehouses if necessary, no assurance can be given that a change in distributors would not be disruptive to our business, which could have a material adverse effect on our business and results of operations.

We depend on several key suppliers to produce our products.

We do not produce any of our own products. During the years ended December 29, 2012 and December 31, 2011, we purchased approximately 26% and 28%, respectively, of our finished goods from Ice Cream Specialties, our primary frozen dessert novelty co-packer and 30% and 24% of our finished goods, respectively, from Franklin Foods, our BETTER THAN CREAM CHEESE , SOUR SUPREME , and BETTER THAN RICOTTA co-packer. Although we believe that there will be no problem in continuing to obtain finished goods from our current or alternative sources in the future, any disruption in supply could have a material adverse effect on our company.

Our suppliers are subject to federal, state and local government regulations that could adversely affect our business and financial position.

Virtually all food manufacturing operations are subject to regulation by various federal, state and local government entities and agencies. As producers of food products for human consumption, our suppliers are subject to stringent production, packaging, quality, labeling and distribution standards, including regulations mandated by the Federal Food, Drug and Cosmetic Act, the FDA, OSHA, the EPA and the USDA. Future regulation by various federal, state or local governmental entities or agencies could, among other things, increase our suppliers’ cost of production, cause them to incur unexpected expenditures or encumber productivity, any of which may adversely affect our business and financial results.

A material change in consumer demand for our products could have a significant impact on our business.

We are a consumer food products company and rely on continued demand for our products. To achieve business goals, we must develop and sell products that appeal to consumers. If demand and growth rates fall substantially below expected levels or our market share declines significantly in these businesses, our results could be negatively impacted. This could occur due to unforeseen negative economic or political events or to changes in consumer trends and habits.

Our operating costs are subject to fluctuations which could affect our business results.

Our costs are subject to fluctuations, particularly due to changes in commodity prices, raw materials prices, cost of labor, foreign exchange rates and interest rates. Therefore, our success is dependent, in part, on our continued ability to manage these fluctuations through pricing actions, cost savings projects and sourcing decisions. In the manufacturing and general overhead areas, we need to maintain key manufacturing and supply arrangements, including any key sole supplier and manufacturing plant arrangements.

Our ability to compete effectively in the highly competitive frozen dessert and health food markets may affect our operational performance and financial results.

The frozen dessert, non-dairy cheese food and health food markets are highly competitive. In addition, many of our principal competitors are large, diversified companies with resources significantly greater than ours. We expect strong competition to continue, including competition for adequate distribution and competition for the limited shelf space for the frozen dessert and non-dairy cheese food categories in supermarkets and other retail food outlets.

From time to time, we and our customers experience price pressure in some of our markets as a result of competitors’ promotional pricing practices as well as general market conditions. Our failure to match or exceed our competitors’ cost reductions through innovative products and other improvements could weaken our competitive position. Competition is based on product quality, reliability, food safety, distribution effectiveness, brand loyalty, price, effective promotional activities, the ability to identify and satisfy emerging consumer preferences and the ability to provide ancillary support services. We may not be able to compete effectively with these larger, more diversified companies.

Economic downturns and disruptions in financial markets can adversely affect our business and results of operations.

Our results of operations can be materially affected by adverse conditions in the financial markets and depressed economic conditions generally. Worsening economic conditions, such as continued European sovereign debt uncertainty, may result in diminished demand for our products, especially our frozen dessert products, and in decreased sales volumes. Recessionary environments adversely affect the demand for our products as a result of constraints on discretionary spending by our retail customers. In addition, this could result in longer sales cycles, slower acceptance of new products and increased competition for our products, which in turn could cause us to reduce prices for our products resulting in reduced gross margins. Any of these events would likely harm our business, operating results and financial condition.

In addition, the current economic climate, and particularly the increased difficulty in securing credit, could impact the ability of our customers to purchase our products. Certain of our retail customers who have seen significant dampening of consumer demand, could face increased financial pressures that could impact their ability to purchase our products and make payments in a timely manner. The continued high unemployment levels in the U.S. and the lingering effects of the global credit crisis, will impact the ability of our customers to purchase our products.

Natural disasters, terrorist attacks or breaches of network or information technology security could have an adverse effect on our business.

Natural disasters, cyber attacks or other breaches of network or information technology (IT) security, terrorist acts or acts of war may cause disrupt our systems and operations. For example, the impact of Hurricane Sandy caused our executive office in New Jersey to be closed for six days. We expect that our inability to operate our facilities as a result of such events, even for a limited period of time, may result in significant expenses and/or loss of market share to our competitors. While we maintain insurance coverage for some of these events, the potential liabilities associated with these events could exceed the insurance coverage we maintain. Any of these occurrences could result in a material adverse effect on our results of operations and financial condition.

We rely on a limited number of key executives to manage our business.

Our success is significantly dependent on the services of David Mintz (age 81), Chief Executive Officer, and Steven Kass (age 61), Chief Financial Officer. The loss of the services of either of these persons could have a material adverse effect on our business.

Our principal shareholder has the ability to control the policies and management of our company.

Our Chairman of the Board and Chief Executive Officer, David Mintz, holds 2,630,440 shares of common stock representing approximately 51.0% of the outstanding shares. For as long as Mr. Mintz has a controlling interest in our company, he will have the ability to exercise a controlling influence over our business and affairs, including any determinations with respect to potential mergers or other business combinations involving us, our acquisition or disposition of assets, our incurrence of indebtedness, our issuance of any additional common shares or other equity securities, our repurchase or redemption of common shares and our payment of dividends. Similarly, as long as Mr. Mintz has a controlling interest in our company, he will have the power to determine the outcome of matters submitted to a vote of our shareholders, including the power to elect all of the members of our board of directors and prevent an acquisition or any other change in control of us.

Product liability suits, if brought, could have a material adverse effect on our business.

From time to time in the normal course of our business, we become subject to product liability claims. If a product liability claim exceeding our insurance coverage were to be successfully asserted against us, it could harm our business. We cannot assure you that such coverage will be sufficient to insure against claims which may be brought against us, or that we will be able to maintain such insurance or obtain additional insurance covering existing or new products. As a marketer of food products, we are subject to the risk of claims for product liability. We maintain general product liability and umbrella insurance coverage and generally require that our co-packers maintain product liability insurance with us as a co-insured. Similarly, most of our customers require us to name them as additional insureds as well, and in some cases we are required to sign hold harmless and indemnification agreements.

If our food products become adulterated or misbranded, we would need to recall those items and may experience product liability claims if consumers are injured as a result.

Food products occasionally contain contaminants due to inherent defects or improper storage or handling. Under adverse circumstances, food producers may be required to recall some of their products if they become adulterated or misbranded or as a result of a government-mandated recall. The scope of such a recall could result in significant costs incurred as a result of the recall, potential destruction of inventory, and lost sales. Should consumption of any product cause injury, we may be liable for monetary damages as a result of a settlement or judgment against us. A widespread product recall could result in changes to one or more of our business processes, product shortages, a loss of customer confidence in our brand or other adverse effects on our business.

We need to continue to introduce new products.

The successful introduction of innovative products on a periodic basis has become increasingly important to our ability to maintain and grow our sales. Accordingly, the future degree of market acceptance of any of our new products, which may be accompanied by significant promotional expenditures, is likely to have an important impact on our future financial results.

Our operating results vary quarterly.

We have often recognized a slightly greater portion of revenues in the second and third quarter of the year. We expect to continue to experience slightly higher sales in the second and third quarters and slightly lower sales in the fourth and first quarters, as a result of reduced sales of nondairy frozen desserts. In addition, sales to our major customers fluctuate widely from period to period and there is no way to accurately predict that their sales pattern from one year will be repeated in the corresponding period of the next fiscal year. Due to the foregoing factors, in some future quarter our operating results may be below the expectations of investors. In such event, it is likely that the price of our common stock would be materially adversely affected.

We have no registered patents. The absence of patent protection could adversely affect our results of operations.

We rely upon the confidentiality of our formulas and our know-how rather than upon patent protection. There is no assurance that such confidentiality can or will be maintained or that our know-how cannot be obtained by others or that others do not now possess similar or even more effective capabilities. The failure to maintain the confidentiality of our know-how could adversely affect our operating results.

We are subject to risks associated with international operations .

In fiscal 2012 approximately 14% of our revenues were from international sales. Although we continue to expand our international operations, we cannot be certain that we will be able to maintain or increase international market demand for our products. To the extent that we cannot do so in a timely manner, our business, operating results and financial condition will be adversely affected. International operations are subject to inherent risks, including the following:

●

different and changing regulatory requirements in the jurisdictions in which we currently operate or may operate in the future;

●

the impact of possible recessionary environments in multiple foreign markets;

●

export restrictions, tariffs and other trade barriers;

●

difficulties in managing and supporting foreign operations;

●

longer payment cycles;

●

difficulties in collecting accounts receivable;

●

political and economic changes, hostilities and other disruptions in regions where we currently sell or products or may sell our products in the future; and

●

seasonal reductions in business activities.

Negative developments in any of these areas in one or more countries could result in a reduction in demand for our products, the cancellation or delay of orders already placed, difficulty in collecting receivables, and a higher cost of doing business, any of which could adversely affect our business, results of operations or financial condition.

We may be adversely affected by fluctuations in currency exchange rates.

Our foreign transactions are always in U.S. dollars, and to date we have not engaged in any currency hedging transactions intended to reduce the effect of fluctuations in foreign currency exchange rates on our results of operations. Therefore, our future export sales could be adversely affected by an increase in the value of the U.S. dollar, which could increase the local currency price of our products. Although exposure to currency fluctuations to date has not had a material effect on our business, there can be no assurance such fluctuations in the future will not materially and adversely affect our revenues from international sales and, consequently, our business, operating results and financial condition.

Our failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 could have an adverse effect on our financial results and the market price of our common stock.

The Sarbanes-Oxley Act of 2002 imposes certain duties on us and our executives and directors. Our efforts to comply with the requirements of Section 404 have resulted in increased general and administrative expense and a diversion of management time and attention, and we expect these efforts to require the continued commitment of resources. Section 404 of the Sarbanes-Oxley Act requires us to provide management’s annual review and evaluation of our internal control over financial reporting in connection with the filing of our Annual Report on Form 10-K for each fiscal year. Based on their evaluation under the frameworks described above, our chief executive officer and chief financial officer concluded that our internal control over financial reporting was ineffective as of December 29, 2012 because of the following material weaknesses in internal controls over financial reporting:

●

a continuing lack of sufficient resources and an insufficient level of monitoring and oversight, which may restrict our ability to gather, analyze and report information relative to the financial statements in a timely manner.

●

The limited size of the accounting department makes it impracticable to achieve an optimum separation of duties.

Our failure to maintain effective internal controls over financial reporting could result in investigation or sanctions by regulatory authorities, and could have a material adverse effect on our operating results, investor confidence in our reported financial information, and the market price of our common stock.

Risks Relating to Our Common Stock

Our common stock may be delisted from the NYSE MKT, which could negatively impact the price of our common stock and our ability to access the capital markets.

Our common stock is currently listed on the NYSE MKT. Continued listing on the NYSE MKT is conditioned upon compliance with various continued listing standards. We are not currently in compliance with certain of such standards and this could result in delisting and adversely affect the market price and liquidity of our common stock and our ability to raise additional capital. Delisting from the NYSE MKT could also result in other negative implications, including the potential loss of confidence by our customers and suppliers and fewer business development opportunities.

Volatility of the market price of our common stock could adversely affect our shareholders and us.

The market price of our common stock has been subject to fluctuations in the past and may be subject to wide fluctuations in response to numerous factors, including the following:

●

actual or anticipated variations in our quarterly operating results or those of our competitors;

●

announcements by us or our competitors of new and enhanced products;

●

developments or disputes concerning proprietary rights;

●

introduction and adoption of new industry standards;

●

market conditions or trends in our industry;

●

announcements by us or our competitors of significant acquisitions;

●

entry into strategic partnerships or joint ventures by us or our competitors;

●

additions or departures of key personnel;

●

political and economic conditions, such as a recession or interest rate or currency rate fluctuations or political events; and

●

other events or factors in any of the countries in which we do business, including those resulting from war, incidents of terrorism, natural disasters or responses to such events.

In addition, in recent years the stock market has been highly volatile. Many of these factors are beyond our control and may materially adversely affect the market price of our ordinary shares, regardless of our performance. In the past, following periods of market volatility, shareholders have often instituted securities class action litigation relating to the stock trading and price volatility of the company in question. If we were involved in any securities litigation, it could result in substantial cost to us to defend and divert resources and the attention of management from our business.

We do not intend to pay cash dividends.

Our policy is to retain earnings, if any, for use in our business and, for this reason, we do not intend to pay cash dividends on our shares of common stock in the foreseeable future.

Item 1B. Unresolved Staff Comments.

None.

Item 2.

Properties.

Our facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 square foot facility houses our administrative offices, a warehouse, walk-in freezer and refrigerator, and a product development laboratory and test kitchen. Our lease agreement expired on July 1, 1999, but we continue to occupy the premises under the terms of that agreement, subject to a six month notification period for us and the landlord with respect to any changes. We currently have no plans to enter into a long-term lease agreement for the facility. Our rent expense was $81,000 in both fiscal 2012 and 2011. Our management believes that the Cranford facility will continue to satisfy our space requirements for the foreseeable future. We rent warehouse storage space at various outside facilities. Outside warehouse expenses amounted to $596,000 and $488,000 during fiscal 2012 and 2011, respectively.

Item 3.

Legal Proceedings.

We are not a party to any material litigation.

Item 4.

Mine Safety Disclosures.

Not applicable.

PART II

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

Our common stock was listed on the American Stock Exchange on October 29, 1985 and has traded on the AMEX or its successors under the symbol TOF since such time. As a result of the merger of the NYSE and AMEX, it currently trades on the NYSE MKT. Each share ranks equally as to dividends, voting rights, participation in assets on winding-up and in all other respects. No shares have been or will be issued subject to call or assessment. There are no preemptive rights, provisions for redemption or for either cancellation or surrender, or provisions for sinking or purchase funds.

The following table sets forth the high and low sales prices as reported on the NYSE MKT or its predecessors for the two most recent fiscal years:

Quarter Ended	High		Low
April 2, 2011	$	2.91	$	1.71
July 2, 2011		2.75		1.87
October 1, 2011		2.51		1.90
December 31, 2011		2.19		1.53
March 31, 2012		2.55		1.40
June 30, 2012		2.50		1.50
September 29, 2012		1.78		1.34
December 29, 2012		1.70		1.10

The closing price for our common stock on March 26, 2013, as reported on the NYSE MKT, was $1.50.

Holders of Record

As of March 20, 2013, there were approximately 544 direct holders of record of our common stock. Based upon the most recent census performed by our stock transfer agent, brokerage houses and other financial institutions hold our common stock for approximately an additional 912 shareholders.

Dividends

We have not paid and have no present intention of paying cash dividends on our common stock in the foreseeable future.

Equity Compensation Plans

We do not have any equity compensation plans for our executive officers or employees, but we do have an equity compensation plan for our non-employee directors.

The following table sets forth, as of December 29, 2012, certain information related to our compensation plan under which shares of our common stock are authorized for issuance.

Plan Category

Number of securities

to be issued upon

exercise of outstanding

options, warrants and rights

Weighted-average

exercise price of

outstanding options,

warrants and rights

Number of securities

Remaining available

for future issuance

under equity compensation

plans (excluding securities

reflected in column (a)

(a)

(b)

(c)

Equity Compensation Plans Approved by Security Holders

n/a

100,000

Equity Compensation Plans Not Approved by Security Holders

n/a

2004 Non-Employee Directors’ Stock Option Plan

Our shareholders adopted the 2004 Non-Employee Directors’ Stock Option Plan (the “2004 Directors’ Plan”) on June 3, 2004. The purpose and intent of the 2004 Directors’ Plan is to attract and retain the best available individuals as non-employee directors of the company, to provide additional incentive to non-employee directors to continue to serve as directors and to encourage their continued service on the Board. All options granted under 2004 Directors’ Plan are “non-qualified stock options.” The maximum aggregate number of shares of common stock which may be issued under the 2004 Directors’ Plan is 100,000 shares.

The 2004 Directors’ Plan is currently administered by our Board of Directors, which in the future may delegate such administration to a committee of directors. Subject to the provisions of the 2004 Directors’ Plan and applicable law, the Board or the Committee has the authority, to determine, among other things, to whom options may be granted, the number of shares of common stock to be covered by each option, the exercise price for each share, the vesting period of the option, and the terms, conditions and restrictions thereof, to construe and interpret the 2004 Directors’ Plan, to prescribe, amend and rescind rules and regulations relating to the 2004 Directors’ Plan, and to make all other determinations deemed necessary or advisable for the administration of the 2004 Directors’ Plan.

The term of any option granted under the 2004 Directors’ Plan was fixed by the Board of Directors at the time the options were granted, provided that the exercise period was not to be longer than five years from the date of grant. All options granted under the 2004 Directors’ Plan have up to five-year terms and have vesting periods that range from one to three years from the grant date. The exercise price of any options granted under the 2004 Directors’ Plan is the fair market value at the date of grant. As of March 26, 2012, our non-employee directors as a group, consisting of seven persons , did not hold any options to purchase shares of common stock under the 2004 Directors’ Plan.

Sales of Unregistered Securities

There were no sales of unregistered securities during fiscal 2012.

Purchase of Equity Securities By the Issuer and Affiliates

We did not purchase any shares of our common stock in the thirteen weeks ended December 29, 2012 (the fourth quarter of fiscal 2012).

Item 6.

Selected Financial Data.

Not applicable.

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following is management’s discussion and analysis of certain significant factors which have affected our financial position and operating results during the periods included in the accompanying audited financial statements.

Critical Accounting Policies

Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The policies discussed below are considered by management to be critical to an understanding of our financial statements because their application places the most significant demands on management’s judgment, with financial reporting results relying on estimation about the effect of matters that are inherently uncertain. Specific risks for these critical accounting policies are described in the following paragraphs. For all of these policies, management cautions that future events rarely develop exactly as forecast, and the best estimates routinely require adjustment.

Revenue Recognition . We recognize revenue when goods are shipped from our production facilities or outside warehouses and the following four criteria have been met: (i) the product has been shipped and we have no significant remaining obligations; (ii) persuasive evidence of an arrangement exists; (iii) the price to the buyer is fixed or determinable; and (iv) collection is probable. We record as deductions against sales all trade discounts, returns and allowances that occur in the ordinary course of business, when the sale occurs. To the extent we charge our customers for freight expense, it is included in revenues. The amount of freight costs charged to customers has not been material to date.

Accounts Receivable . The majority of our accounts receivables are due from distributors (domestic and international) and retailers. Credit is extended based on evaluation of a customers’ financial condition and, generally, collateral is not required. Accounts receivable are most often due within 30 to 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. We determine whether an allowance is necessary by considering a number of factors, including the length of time trade accounts receivable are past due, our previous loss history, the customer’s current ability to pay its obligation, and the condition of the general economy and the industry as a whole. We write-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the bad debt expense account. We do not accrue interest on accounts receivable past due.

Inventory. Inventory is stated at lower of cost or market determined by first in first out (FIFO) method. Inventories in excess of future demand are written down and charged to the provision for inventories. At the point of which loss is recognized, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in the newly established cost basis.

Income Taxes . The carrying value of deferred tax assets assumes that we will be able to generate sufficient future taxable income to realize the deferred tax assets based on estimates and assumptions. If these estimates and assumptions change in the future, we may be required to record a valuation allowance against deferred tax assets which could result in additional income tax expense. We will recognize a tax benefit 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) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “ tax position ” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes.

Deferred Revenue and Costs. Deferred revenue represents amounts from sales of our product that have been billed, but for which the transactions have not met our revenue recognition criteria. The cost of the related product has been recorded as deferred costs on our balance sheet.

Recent Accounting Pronouncements

Accounting Standards updates that became effective after December 29, 2012 are not expected to have a significant effect on our financial position or results of operations.

Results of Operations

Fiscal Year Ended December 29, 2012 Compared with Fiscal Year Ended December 31, 2011

We operate on a fiscal year ending on the Saturday closest to December 31. Fiscal years for the financial statements included in this report are the fifty-two week periods ended December 29, 2012 and December 31, 2011.

Net sales for the fiscal year ended December 29, 2012 were $14,343,000, a decrease of $1,583,000, or 10%, from net sales of $15,926,000 for the fiscal year ended December 31, 2011. The reduction in sales was primarily due to the determination of Trader Joe’s, our largest customer, to cease selling branded goods. During fiscal 2012, there were no sales to Trader Joe’s compared to sales of $1,420,000 in fiscal 2011. While we believe that we will recover some portion of these sales as our retail customers switch to other retail sources to purchase our products, this process is taking longer than expected. Sales were also impacted on the east coast during the fourth quarter due to Superstorm Sandy. The storm and its aftermath caused widespread disruptions of shipments, which resulted in lost sales. While our executive office was closed for a week because of the storm, our manufacturing operations were not affected and we were able to access our business records from a co-location site. We believe our sales will improve during fiscal year 2013 due to the introduction of new products and price increases that will be instituted in the second and third quarters of 2013.

Our gross profit in the year ended December 29, 2012 decreased by $534,000 to $3,951,000 from $4,485,000, reflecting the lower level of sales. Our gross profit percentage for the year ended December 29, 2012 was 28% unchanged from the year ended December 31, 2011. Freight out expense decreased to $989,000 for the year ended December 29, 2012 compared with $1,033,000 for the year ended December 31, 2011. Freight out cost as a percentage of sales increased slightly from 6.5% in 2011 to 6.9% in 2012. The decrease in freight out expense in 2012 was a result of the lower level of sales for the year. Due to the expected continued high cost of fuel, we anticipate that our freight cost as a percentage of sales will approximate the 2012 percentages should fuel costs remain steady. Our gross profit was also impacted by price increases for certain key ingredients and packaging costs. We have begun to implement price increases for some of our products, which we expect will help improve our profit margin in 2013.

Selling and warehousing expenses increased by $154,000, or 10%, to $1,647,000 for fiscal 2012 from $1,493,000 in fiscal 2011. This increase was caused primarily by a $108,000 increase in outside warehouse rental expense, a $110,000 increase in payroll expense, a $31,000 increase in auto, travel and entertainment expense, a $42,000 increase in commission expense, a $10,000 increase in meetings and conventions expense, and an $8,000 increase in messenger expense. The increases in payroll and auto, travel and entertainment expense are due to the addition of three sales people during the latter part of 2012. The increase in outside warehouse expense was due to the increase in inventory. The increase in commission expense was due to the increase in several rates of commission for certain products and customers. These increases were offset by a decrease in bad debt expense of $152,000. The decrease in bad debt expense was due primarily to a decrease in the reserve for bad debts for certain accounts. We anticipate that with the exception of commission expenses and outside warehouse rental expense, which are variable to sales, all other selling expenses in 2013 should remain relatively consistent with our expenses in 2012.

Marketing expenses increased in fiscal 2012 by $125,000, or 24%, to $638,000 from $513,000 in fiscal 2011. Increases in public relations expense of $114,000, advertising expense of $36,000 and point of sale materials expense of $18,000 were offset by a decrease in promotion expense of $44,000. We expect marketing expenses to decline in fiscal 2013 due to certain marketing programs implemented in fiscal 2012 not being repeated.

Product development expenses increased by $97,000, or 18%, to $643,000 in fiscal 2012 from $546,000 in fiscal 2011. The increase was caused primarily by increases in payroll costs of $28,000, lab and supplies expense of $28,000, professional fees and outside services of $16,000 and equipment repairs of $29,000. We expect that product development costs to decline in fiscal 2013 due to certain one-time expenses incurred in fiscal 2012 not being repeated.

General and administrative expenses increased by $134,000, or 7%, to $1,935,000 for fiscal 2012 as compared with $1,801,000 for fiscal 2011. The increase was primarily due to a $45,000 increase in payroll expense, an increase of $30,000 in public relations expense and an increase in IT expense of $64,000. The increase in IT expense was due to certain one-time charges in fiscal 2012 that will not be repeated in fiscal 2013. We anticipate that professional fees and outside services, which include legal and accounting fees, will increase in fiscal 2013 primarily due to the costs associated with the mandatory implementation of the requirement to file our financial reports with the Securities and Exchange Commission in XBRL (eXtensible Business Reporting Language). Our management expects that general and administrative expenses in 2013 will remain consistent with fiscal 2012 expenses.

Overall, total operating expenses in fiscal 2012 increased to $4,863,000, an increase of $510,000, or 12%, from total operating expenses in fiscal 2011.

Income before income taxes decreased by $1,044,000 to a loss of $(912,000) in fiscal 2012 as compared with $132,000 in fiscal 2011, primarily as a result of our lower revenues, gross profit, and increased expenses.

Income tax benefit for the 2012 fiscal period was $88,000 compared to income tax expense of $89,000 in fiscal 2011, and our income tax rate was 10% for the 2012 fiscal year compared to 67% in the 2011 fiscal year. The high income tax rate for fiscal 2011 was due to the effect of certain deferred income tax expense items.

Liquidity and Capital Resources

Our recent operating history has resulted in a decrease in our capital resources.

At December 29, 2012, we had approximately $471,000 in cash and cash equivalents, and our working capital was $3,609,000, a decrease of $835,000 from December 31, 2011. Our current and quick acid test ratios, both measures of liquidity, were 4.4 and 2.7, respectively, at December 29, 2012 compared to 5.7 and 3.7, respectively, at December 31, 2011. We do not have a line of credit or other approved borrowing facility.

At December 29, 2012, our accounts receivable decreased by $56,000 to $1,880,000 from December 31, 2011, reflecting the reduction of sales in fiscal 2012. The average number of days outstanding for accounts receivable in fiscal 2012 was 55 days as compared to 47 days in fiscal 2011.

At December 29, 2012, our inventories increased to $1,750,000 from $1,441,000 at December 31, 2011, due to the introduction of new products in fiscal 2012. Refundable and deferred income taxes increased from $307,000 at the end of fiscal 2011 to $331,000 at December 31, 2012 due to the income tax benefit associated with our operating loss. Accounts payable and accrued expenses increased by $109,000 to $1,065,000 at December 29, 2012, from $956,000 at December 31, 2011, due to the increase in inventory.

Cash Flows	Fiscal Year ended
	December 29, 2012			December 31, 2011
	(In thousands)

Net cash used in operating activities	$	(1,107	)	$	(910	)
Net cash used in financing activities		(16	)		(24	)
Net decrease in cash and cash equivalents		(1,123	)		(934	)
Cash and cash equivalents at beginning of year		1,594			2,528
Cash and cash equivalents at end of year	$	471		$	1,594

Cash used in operating activities was $1,107,000 for the fiscal year ended December 29, 2012 compared with cash used in operating activities of $910,000 for the fiscal year ended December 31, 2011. In the fiscal year ended December 29, 2012, our cash flow from operating activities reflected net loss of $824,000, a $56,000 increase in accounts receivable, a $309,000 increase in inventories, a $120,000 increase in prepaid expenses, and a $289,000 increase in income taxes refundable, offset by a $109,000 increase in accounts payable and accrued expenses.

We used $16,000 in financing activities in the fiscal year ended December 29, 2012 for the repurchase of common stock, compared to $24,000 used in the fiscal year ended December 31, 2011 for the repurchase of common stock.

As a result of the foregoing, our cash and cash equivalents decreased to $471,000 at December 29, 2012 from $1,594,000 at December 31, 2011.

We believe our existing cash and cash equivalents on hand at December 29, 2012, the cash flows expected from operations, and a $289,000 increase in income taxes refundable payable in 2013 will be sufficient to support our operating and capital requirements during the next twelve months. However, we may require additional financing in order to accomplish or exceed our business plans for future periods.

Our Board of Directors first instituted a share repurchase program in September 2000 which, after several amendments, has to date authorized the repurchase of 2,200,000 shares of our common stock at prevailing market prices. While we may purchase an additional 360,000 shares of common stock based on such authorization, we did not purchase any shares of our common stock from the first quarter of fiscal 2009 until December 2011. During December 2011, we repurchased 14,492 shares at a cost of $24,115. We repurchased an additional 8,480 shares in January and February 2012 at a cost of $16,000. Cumulatively, from the beginning of our share repurchase program, we have purchased 1,829,000 shares at a cost of $5,318,000.

Contractual Obligations

We have no material contractual obligations at December 29, 2012.

Inflation and Seasonality

We do not believe that our operating results have been materially affected by inflation during the preceding two years. There can be no assurance, however, that our operating results will not be affected by inflation in the future. Our business is subject to minimal seasonal variations with slightly increased sales historically in the second and third quarters of the fiscal year. We expect to continue to experience slightly higher sales in the second and third quarters, and slightly lower sales in the fourth and first quarters, as a result of reduced sales of nondairy frozen desserts during those periods.

Market Risk

We will invest our excess cash, should there be any, in highly rated money market funds which are subject to changes in short-term interest rates. We do not believe that our foreign currency exposure is significant as our export sales are transacted in U.S. dollars. We did not enter into any foreign exchange contracts in the year ended December 29, 2012.

Off-Balance Sheet Arrangements

None.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

Not applicable.

Item 8. Financial Statements and Supplementary Data .

Index to Financial Statements

Report of Independent Registered Public Accounting Firm	F-1

Financial Statements:

Balance Sheets	F-2

Statements of Operations	F-3

Statements of Changes in Stockholders’ Equity	F-4

Statements of Cash Flows	F-5

Notes to Financial Statements	F-6

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders

Tofutti Brands, Inc.

We have audited the accompanying balance sheets of Tofutti Brands, Inc. (the “Company”) as of December 29, 2012 and December 31, 2011, and the related statements of operations, stockholders’ equity, and cash flows for the fiscal year ended December 29, 2012 and the fiscal year ended, December 31, 2011. The financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tofutti Brands, Inc. as of December 29, 2012 and December 31, 2011, and the results of its operations and its cash flows for the fiscal year ended December 29, 2012 and fiscal year ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

/s/ EisnerAmper LLP

Edison, NJ

March 29, 2013

F-1

TOFUTTI BRANDS INC.

BALANCE SHEETS

(In thousands, except for share and per share data)

	December 29, 2012		December 31, 2011
Assets
Current assets:
Cash and cash equivalents	$	471	$	1,594
Accounts receivable, net of allowance for doubtful accounts and sales promotions of $303 and $486 respectively		1,880		1,936
Inventories, net of reserve of $100 and $50, respectively		1,750		1,441
Prepaid expenses		77		122
Deferred costs		165		—
Refundable income taxes		331		42
Deferred income taxes		—		265
Total current assets		4,674		5,400

Leasehold improvements, net of accumulated amortization of $48 and $43, respectively		—		5
Other assets		16		16
	$	4,690	$	5,421

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	446	$	319
Accrued expenses		436		637
Deferred revenue		183		—
Total current liabilities		1,065		956

Commitments and contingencies		—		—

Stockholders’ equity:
Preferred stock - par value $.01 per share; authorized 100,000 shares, none issued		—		—
Common stock - par value $.01 per share; authorized 15,000,000 shares, issued and outstanding 5,153,706 shares at December 29, 2012, and 5,162,186 shares at December 31, 2011		52		52
Additional paid-in capital		—		—
Retained earnings		3,573		4,413
Total stockholders’ equity		3,625		4,465
Total liabilities and stockholders’ equity	$	4,690	$	5,421

See accompanying notes to financial statements.

F-2

TOFUTTI BRANDS INC.

STATEMENTS OF OPERATIONS

(In thousands, except for per share data)

	Fiscal year ended December 29, 2012			Fiscal Year ended December 31, 2011

Net sales	$	14,343		$	15,926
Cost of sales		10,392			11,441
Gross profit		3,951			4,485

Operating expenses:
Selling and warehousing		1,647			1,493
Marketing		638			513
Product development costs		643			546
General and administrative		1,935			1,801
		4,863			4,353

(Loss) income before provision for income tax		(912	)		132

Income tax (benefit) expense		(88	)		89

Net (loss) income	$	(824	)	$	43

Weighted average common shares outstanding:
Basic		5,154			5,176
Diluted		5,154			5,176

Net (loss) income per common share:
Basic	$	(0.16	)	$	0.01
Diluted	$	(0.16	)	$	0.01

See accompanying notes to financial statements.

F-3

TOFUTTI BRANDS INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Fiscal Years ended December 29, 2012 and December 31, 2011

(In thousands, except for share data)

	Common Stock					Additional Paid-In			Retained			Total Stockholders’
	Shares			Amount		Capital			Earnings			Equity
Balances, January 1, 2011		5,176,678		$	52	$	7		$	4,387		$	4,446
Stock repurchase		(14,492	)		—		(7	)		(17	)		(24	)
Net income for year ended December 31, 2011		—			—		—			43			43
Balances, December 31, 2011		5,162,186		$	52	$	—		$	4,413		$	4,465
Stock repurchase		(8,480	)		—		—			(16	)		(16	)
Net loss for year ended December 29, 2012		—			—		—			(824	)		(824	)
Balances, December 29, 2012		5,153,706			52		—		$	3,573		$	3,625

See accompanying notes to financial statements.

F-4

TOFUTTI BRANDS INC.

STATEMENTS OF CASH FLOWS

(In thousands)

	Fiscal Year ended December 29, 2012			Fiscal Year ended December 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$	(824	)	$	43
Adjustments to reconcile net (loss) income to net cash flows provided by (used in) operating activities:
Amortization		5			5
Provision for bad debts and sales promotions		(183	)		166
Deferred taxes		265			(79	)
Change in assets and liabilities:
Accounts receivable		239			(764	)
Inventories		(309	)		256
Prepaid expenses		(120	)		(106	)
Income taxes refundable		(289	)		(42	)
Accounts payable and accrued expenses and compensation		109			(389	)
Net cash flows used in operating activities		(1,107	)		(910	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of common stock		(16	)		(24	)
Net cash flows used in financing activities		(16	)		(24	)

NET CHANGE IN CASH AND CASH EQUIVALENTS		(1,123	)		(934	)

CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR		1,594			2,528
CASH AND CASH EQUIVALENTS, AT END OF YEAR	$	471		$	1,594

SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid	$	6		$	312

See accompanying notes to financial statements.

F-5

NOTE 1 : LIQUIDITY AND CAPITAL RESOURCES

At December 29, 2012, Tofutti Brands, Inc. (the “Company”) had approximately $471 in cash compared to $1,594 at December 31, 2011. Net cash used in operating activities for the year ended December 29, 2012 was $1,107 compared to $910 used in operations for the year ended December 31, 2011. Net cash used in operating activities for the year ended December 29, 2012 was primarily the result of our net loss of $824 as well as increases in inventory and related deferred costs.

During the year ended December 29, 2012, $16 was used in financing activities compared to $24 used in financing activities during the year ended December 31, 2011.

The Company has historically financed operations and met capital requirements primarily through positive cash flow from operations. However, due to the net loss for the year ended December 29, 2012 and cash used in operations, the Company may require additional financing in order to accomplish or exceed their business plans for future periods. The Company is instituting cost cutting measures in fiscal year 2013 as a way to increase profitability 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 to be 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.

NOTE 2: DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business - Tofutti Brands Inc. (“Tofutti” or the “Company”) is engaged in one business segment, the development, production and marketing of nondairy frozen desserts and other food products.

Fiscal Year - The Company operates on a fiscal year ending on the Saturday closest to December 31st. Fiscal years for the financial statements included herein are the fifty-two week fiscal periods ended on December 29, 2012 and December 31, 2011, respectively.

Estimates and Uncertainties - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include allowance for doubtful accounts, sales promotion accruals, inventory reserves and reserves for uncertain tax positions. Actual results could differ from those estimates.

Revenue Recognition - Revenue is recognized when goods are shipped from production facilities or outside warehouses to customers. Revenue is recognized when the following four criteria under ASC 605 have been met: the product has been shipped and the Company has no significant remaining obligations; persuasive evidence of an arrangement exists; the price to the buyer is fixed or determinable; and collection is probable. Deductions from sales for promotional programs, manufacturers ’ charge-backs, co-operative advertising programs and other programs are recorded as reductions of revenues and are provided for at the time of initial sale of product. Freight charged to customers is included in revenues, and has generally been insignificant.

F-6

Concentration of Credit/Sales Risk - Financial instruments that potentially subject the Company to concentration of credit risk consist primarily of cash and unsecured trade receivables. During the year, the Company’s cash balance at its financial institution exceeded the FDIC limit of $250.

The Company performs ongoing evaluations of its customers’ financial condition and does not require collateral. Management feels that credit risk beyond the established allowances at December 29, 2012 is limited.

During the fiscal years ended December 29, 2012 and December 31, 2011, the Company derived approximately 86% and 87%, respectively, of its net sales domestically. The remaining sales in both periods were exports to foreign countries. The accounts receivable balance of one customer represented approximately 11% of total accounts receivable at December 29, 2012 and 11% of total accounts receivable at December 31, 2011. In addition, a significant portion of the Company’s sales are to several key distributors, which are large distribution companies with numerous divisions and subsidiaries who act independently. Such distributors as a group accounted for 45% and 35% of the Company’s net sales for the fiscal years ended December 29, 2012 and December 31, 2011.

Accounts Receivable - The majority of the Company’s accounts receivables are due from distributors (domestic and international) and retailers. Credit is extended based on evaluation of a customers’ financial condition and, generally, collateral is not required. Accounts receivable are most often due within 30 to 90 days and are stated at amounts due from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company’s previous loss history, the customer’s current ability to pay its obligation to the Company, and the condition of the general economy and the industry as a whole. The Company writes-off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the bad debt expense. The Company does not accrue interest on accounts receivable past due.

Deferred Revenue and Deferred Costs - Deferred revenue represents amounts from sales of the Company’s product that have been billed, but for which the transactions have not met its revenue recognition criteria. The cost of the related product has been recorded as deferred costs on its balance sheet.

Cash and Equivalents - The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents.

Inventories - Inventory is stated at lower of cost or market determined by first in first out (FIFO) method. Inventories in excess of future demand are written down and charged to the provision for inventories. At the point of which loss is recognized, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration or increase in the newly established cost basis.

The Company purchased approximately 26% and 28% of its finished products from one supplier and 30% and 24% of its finished products from another supplier during the periods ended December 29, 2012 and December 31, 2011 , respectively.

F-7

Fixed Assets - Fixed assets consist of leasehold improvements. Amortization is provided by charges to income using the straight-line method over the useful life of ten years.

Income Taxes - 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. A valuation allowance is recorded if there is uncertainty as to the realization of deferred tax assets. The Company will recognize a tax benefit 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) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes.

Net Income Per Share - Basic earnings per common share has been computed by dividing net income by the weighted average number of common shares outstanding. Diluted earnings per share has been computed by dividing net income by the weighted average number of common shares outstanding, including the dilutive effects of stock options. For the fiscal years ended December 29, 2012 and December 31, 2011, stock equivalents of 0 shares and 41,000 shares, respectively were excluded from diluted earnings per share calculations since the effect was anti-dilutive due to overall net loss as of December 29, 2012 and because the strike price was greater than the quoted market value as of December 31, 2011.

	Fiscal Year Ended December 29, 2012			Fiscal Year Ended December 31, 2011

Net (loss) income, numerator, basic and diluted computation	$	(824	)	$	43

Weighted average shares - denominator basic computation		5,154			5,176
Effect of dilutive stock options		—			—
Weighted average shares, as adjusted - denominator diluted computation		5,154			5,176
Net (loss) income per common share:
Basic	$	(0.16	)	$	0.01
Diluted	$	(0.16	)	$	0.01

Stock Based Compensation -The Company follows the provisions of ASC 718 Share-Based Payment . The Company uses the Black-Scholes option pricing model to measure the estimated fair value of the options under ASC 718 . The compensation expense, less forfeitures, is being recognized over the service period on a straight-line basis.

Fair Value of Financial Instruments - The fair value of financial instruments, which primarily consist of cash and equivalents, accounts receivable and accounts payable are stated at their carrying values. The carrying amounts approximate fair value because of the short-term nature of those instruments.

F-8

Freight Costs - Freight costs to ship inventory to customers and to outside warehouses amounted to $989 and $1,033 during the fiscal years ended December 29, 2012 and December 31, 2011, respectively. Such costs are included in costs of goods sold.

Advertising Costs - The Company expenses advertising costs as they are incurred. Advertising expenses amounted to $279 and $244 during the fiscal years ended December 29, 2012 and December 31, 2011, respectively.

Product Development Costs - Costs of new product development and product redesign are charged to expense as incurred. Product development costs amounted to $643 and $546 during the fiscal years ended December 29, 2012 and December 31, 2011, respectively.

Recent Accounting Pronouncements - Accounting Standards Updates that became effective during fiscal 2012 or after are not expected to have a significant effect on the Company’s financial position or results of operations.

NOTE 3: INVENTORIES

Inventories consist of the following:

	December 29, 2012		December 31, 2011
Finished products	$	1,099	$	1,003
Raw materials and packaging		651		438
	$	1,750	$	1,441

NOTE 4: STOCK OPTIONS

The Company’s shareholders adopted the 2004 Non-Employee Directors’ Stock Option Plan (the “2004 Directors’ Plan”) on June 3, 2004. The purpose and intent of the 2004 Directors’ Plan is to attract and retain the best available individuals as non-employee directors of the Company, to provide additional incentive to non-employee directors to continue to serve as directors and to encourage their continued service on the Board. All options granted under 2004 Directors’ Plan are “non-qualified stock options.” The maximum aggregate number of shares of common stock which may be issued under the 2004 Directors’ Plan is 100,000 shares. The maximum term of any option under the plan is five years, and generally vests over a period of three years.

F-9

The following is a summary of stock option activity from January 1, 2011 to December 29, 2012:

	1993 PLAN INCENTIVE OPTIONS				2004 DIRECTORS’ PLAN NON-QUALIFIED OPTIONS
	Shares		Weighted Average Exercise Price ($)		Shares		Weighted Average Exercise Price ($)		Total Aggregate Intrinsic Value ($)
Outstanding at January 1, 2011		—		—		51,000		2.90		—
Exercisable at January 1, 2011		—		—		51,000		2.90		—
Expired in fiscal 2011		—		—		10,000		2.90		—
Outstanding at December 31, 2011		—		—		41,000		2.90		—
Exercisable at December 31, 2011		—		—		41,000		2.90		—
Expired in fiscal 2012		—		—		41,000		2.90		—
Outstanding at December 29, 2012		—		—		0		—		—

There were no stock options granted in the last two fiscal years, and no options were outstanding as of year-end, December 29, 2012.

NOTE 5: LEASES

The Company’s facilities are located in a one-story facility in Cranford, New Jersey. The 6,200 square foot facility houses its administrative offices, a warehouse, walk-in freezer and refrigerator, and a product development laboratory and test kitchen. The Company’s original lease agreement expired on July 1, 1999, but it continues to occupy the premises under the terms of that agreement. Any changes by either the landlord or the Company remains subject to a six month notification period. The Company currently has no plans to enter into a long-term lease agreement for the facility. Rent expense was $81 in 2012 and $81 in 2011. The Company’s management believes that the Cranford facility will continue to satisfy its space requirements for the foreseeable future and that if necessary, such space can be replaced without a significant impact to the business.

F-10

NOTE 6: INCOME TAXES

The components of income tax expense (benefit) for the fiscal years ended December 29, 2012 and December 31, 2011 are as follows:

	December 29, 2012			December 31, 2011
Current:
Federal	$	(334	)	$	134
State		—			14
		(334	)		148
Deferred:
Federal		191			(50	)
State		55			(9	)
		246			(59	)
Total income tax expense (benefit)	$	(88	)	$	89

A reconciliation between the expected federal tax expense at the statutory tax rate of 34% and the Company’s actual tax expense for the fiscal years ended December 29, 2012 and December 31, 2011 follows:


	December 29, 2012			December 31, 2011
Income tax expense computed at federal statutory rate	$	(310	)	$	45
State income taxes, net of federal income tax benefit		21			10
Permanent items		16			(4	)
Change in federal valuation allowance		172			—
Other items		13			38
	$	(88	)	$	89

Deferred tax assets for the fiscal years ended December 29, 2012 and December 31, 2011 consist of the following components:

	December 29, 2012			December 31, 2011
Allowance for doubtful accounts	$	109		$	194
Inventory		80			51
State net operating loss		16			—
Other		6			20
Valuation allowance		(211	)		—
Deferred tax asset	$	—		$	265

Management has concluded that based upon all available evidence it is more likely than not that deferred tax assets will not be utilized. The Company has recorded a valuation allowance in the amount of $211 during the year ended December 29, 2012. The remaining deferred tax asset is offset by the federal unrecorded tax benefit.

The Company will recognize a tax benefit 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) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for financial reporting purposes.

F-11

The following table indicates the changes to the Company’s uncertain tax positions for the fiscal years ended December 29, 2012 and December 31, 2011:

Balance at January 1, 2011	$	178
Additions based on tax positions related to the prior year		75
Balance at December 31, 2011	$	253
Additions based on tax positions related to the current year		(62	)
Balance at December 29, 2012	$	191

The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. The Company had approximately $115 of accrued interest and penalties related to uncertain tax positions. The amount of uncertain tax positions that would affect the effective tax rate if they were recognized is $306.

The liability at December 29, 2012 for uncertain tax positions is included in accrued expenses. The Company’s federal and state tax returns are open to examination for the years 2009 to 2011.

NOTE 7: RELATED PARTY TRANSACTIONS

Effective October 1, 2012, the Company entered into an agreement with a director pursuant to which the director agreed to provide it with certain consulting and business development services relating to the introduction of the Company to potential users, licensees, and co-developers of its products. Under this agreement, which is for an initial one year term that renews automatically for additional one-year periods if notice of termination is not provided thirty days in advance of the anniversary of the effective date of the agreement, the director would be entitled to receive a 10% commission on sales if the Company entered into a licensing agreement with a third party and a 5% commission on sales to a third party that does not enter into a license agreement with it. In addition, the Company agreed that if the director is instrumental in the sale of any of its securities to a third party, the Company would enter into an agreement to compensate him for such services, based upon the fair market value of such services. The Company also agreed to pay him an expense allowance of $2,500 a month and paid him a total of $7,500 in the year ended December 29, 2012. This agreement was approved by the Company’s audit committee and board of directors, with the director abstaining from such consideration.

F-12

Item 9.

Changes In and Disagreements With Accountants on Accounting and Financial Disclosure.

None.

Item 9A . Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Evaluation of Disclosure Controls and Procedures. As of December 29, 2012, our company’s chief executive officer and chief financial officer conducted an evaluation regarding the effectiveness of our company’s disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act. Based upon the evaluation of these controls and procedures, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were not effective with respect to the material weaknesses , as described below in our internal control over financial reporting , that have not been fully remediated as of the end of the fiscal year 2012.

Disclosure Controls and Internal Controls. As provided in Rule 13a-14 of the General Rules and Regulations under the Securities and Exchange Act of 1934, as amended, Disclosure Controls are defined as meaning controls and procedures that are designed with the objective of insuring that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, designed and reported within the time periods specified by the SEC’s rules and forms. Disclosure Controls include, within the definition under the Exchange Act, and without limitation, controls and procedures to insure that information required to be disclosed by us in our reports is accumulated and communicated to our management, including our chief executive officer and principal financial officer, as appropriate to allow timely decisions regarding disclosure. Internal Controls are procedures which are designed with the objective of providing reasonable assurance that (1) our transactions are properly authorized; (2) our assets are safeguarded against unauthorized or improper use; and (3) our transactions are properly recorded and reported, all to permit the preparation of our financial statements inconformity with generally accepted accounting principles.

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed by, or under the supervision of the Chief Executive Officer and Chief Financial Officer and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management’s evaluation of internal control over financial reporting includes using the Committee of Sponsoring Organizations of the Treadway Commission, or COSO, framework, an integrated framework for the evaluation of internal controls issued by COSO, to identify the risks and control objectives related to the evaluation of our control environment.

Based on their evaluation under the frameworks described above, our chief executive officer and chief financial officer have concluded that our internal control over financial reporting was ineffective as of December 29, 2012 because of the following material weaknesses in internal controls over financial reporting:

●

The limited size of the accounting department makes it impracticable to achieve an optimum separation of duties.

Remediation Plan

We are continuing to seek ways to remediate these weaknesses, which stem from our small workforce, that will not require us to hire additional personnel.

Changes in Internal Control over Financial Reporting

No change in our internal control over financial reporting occurred during the quarter ended December 29, 2012, that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

This annual report does not include an attestation report of our registered public accounting firm regarding i nternal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to the rules of the Securities and Exchange Commission that permit us to provide only management’s report in this annual report.

Item 9B . Other Information.

None.

PART III

Item 10.

Directors, Executive Officers and Corporate Governance.

Our directors and executive officers are:

Name	Age	Position
David Mintz	81	Chairman of the Board of Directors, Chief Executive Officer
Steven Kass	61	Chief Financial Officer, Secretary and Treasurer
Neal S. Axelrod	60	Director
Joseph Fischer	73	Director
Aaron Forem	58	Director
Philip Gotthelf	60	Director
Scott Korman	58	Director
Reuben Rapoport	84	Director
Franklyn Snitow	66	Director

David Mintz has been our Chairman of the Board and Chief Executive Officer since August 1981. Mr. Mintz’s knowledge about our company and his role as the developer of our product line is essential to the operation of our board.

Steven Kass has been our Chief Financial Officer since November 1986 and Secretary and Treasurer since January 1987.

Neal S. Axelrod has been a director since August 2007. Mr. Axelrod has been a self-employed certified public accountant in New Jersey since 1977. Mr. Axelrod’s accounting and financial background enhances the breadth of experience of the board of directors .

Joseph Fischer has been a director since August 2007. He previously served as a director from March 2004 until June 2007. He has been the principal in FMM Investments, which manages private portfolios, since 1992. Prior to that and since 1982, Mr. Fischer was the Controller of the Swingline Division of American Brands Inc. Mr. Fisher’s accounting and financial background enhances the breadth of experience of the board of directors.

Aaron Forem has been a director since 2000. Since 1980, he has been the president of Wuhl Shafman Lieberman Corp., located in Newark, New Jersey, which is one of the largest produce wholesalers in the Northeastern United States. Mr. Forem’s experience in the food industry and his managerial experience enhances the breadth of experience of the board of directors.

Philip Gotthelf has been a director since 2006. He has been President of EQUIDEX Incorporated, a registered Commodity Trading Advisor, and EQUIDEX Brokerage Group, a registered Introducing Broker, since 1985. He has also been publisher of the COMMODEX System and COMMODITY FUTURES FORECAST Service since 1975 and has authored several financial books for Probus/McGraw Hill, McGraw Hill and John Wiley & Sons. Mr. Gotthelf’s financial background enhances the breadth of experience of the board of directors.

Scott Korman was elected to serve as a member of the Board of Directors and the Audit Committee of the Registrant on December 13, 2011 by our Board of Directors. Mr. Korman founded Nashone, Inc., a private equity firm, in 1984 and is its President. Nashone is also involved in financial advisory, turnaround and general management assignments. Mr. Korman is currently Chairman of Da-Tech Corporation, a Pennsylvania based contract electronics manufacturer. He previously served as Chairman and CEO of Best Manufacturing Group LLC., a leading manufacturer and distributor of uniforms, napery, service apparel, and hospitality and healthcare textiles. Mr. Korman also served as President and CEO of Welsh Farms Inc., a full service dairy, processing and distributing milk, ice cream mix and ice cream products. Mr. Korman received a B.S. in Economics from the University of Pennsylvania Wharton School in 1977. He also serves on the boards of various not-for-profit groups and was the founder of the Englewood Business Forum. Mr. Korman’s experience as a CEO of a frozen dessert company enhances the breadth of experience of the board of directors.

Reuben Rapoport, our former Director of Product Development who retired in April 2003, has been a director since July 1983. Mr. Rapoport’s product development background and knowledge about our company enhances the breadth of experience of the board of directors.

Franklyn Snitow has been a director since 1987. He has been a partner in the New York City law firm Snitow Kanfer Holtzer & Millus, LLP, our general counsel, since 1985. Mr. Snitow’s legal and corporate governance background enhances the breadth of experience of the board of directors.

All directors hold office until the next Annual Meeting of Stockholders and until their successors have been elected and qualified. Officers serve at the pleasure of the Board of Directors All of the executive officers devote their full time to our operations.

Employment Agreements

There are currently no employment agreements between us and any of our officers.

Family Relationships

There are no family relationships between any of our directors and executive officers.

Involvement in Legal Proceedings

To the best of our knowledge, during the past ten years, none of our directors or executive officers were involved in one of the following: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of any competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

Audit Committee and Audit Committee Financial Expert

The Audit Committee of the Board of Directors is comprised of Mr. Axelrod, who serves as chairman, Mr. Forem and Mr. Korman. The Board of Directors has determined that all of the Audit Committee members are independent, as that term is defined under the enhanced independence standards for audit committee members in the Securities and Exchange Act of 1934. The Board of Directors has also determined that Mr. Axelrod is an Audit Committee Financial Expert as that term is defined in rules issued pursuant to the Sarbanes-Oxley Act of 2002.

Section 16(a) Beneficial Ownership Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our executive officers, directors and persons who own more than 10% of a registered class of our equity securities to file with the Securities and Exchange Commission initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of common stock and other of our equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders are required by Commission regulations to furnish us with copies of all Section 16(a) reports they file.

To our knowledge, based solely on our review of the copies of such forms received by us, or written representations from certain reporting persons that no additional forms were required for those persons, we believe that during fiscal 2012 all persons subject to these reporting requirements filed the required reports on a timely basis.

Code of Ethics

We have adopted a Code of Business Conduct and Ethics, which applies to directors, officers, employees and agents of our company. We have also adopted a Code of Ethics for Senior Officers, which applies to our chief executive officer, and all senior financial officers of our company, including the chief financial officer, chief accounting officer or controller, or persons performing similar functions. The Code of Business Conduct and Ethics and the Code of Ethics for Senior Officers are publicly available on our website at www.tofutti.com and printed copies are available upon request. If we make any substantive amendments to the Code of Business Conduct and Ethics or the Code of Ethics or grant any waivers, including any implicit waiver, from a provision of these codes to our chief executive officer, chief financial officer or corporate controller or our directors, we will disclose the nature of such amendment or waiver on our website.

Item 11.

Executive Compensation.

The following table sets forth information concerning the total compensation during the last three fiscal years for our named executive officers whose total salary in fiscal 2012 totaled $100,000 or more:

Summary Compensation Table

Name and Principal Position	Fiscal Year	Salary ($)		Bonus ($)		Stock Awards ($)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)		All Other Compensation ($)		Total($)
David Mintz	2012		450,000		—		—		—		—		—		450,000
Chief Executive Officer	2011		450,000		—		—		—		—		—		450,000
and Director	2010		450,000		350,000		—		—		—		—		800,000

Steven Kass	2012		125,000		—		—		—		—		—		125,000
Chief Financial Officer	2011		125,000		—		—		—		—		—		125,000
	2010		125,000		150,000										275,000

The aggregate value of all other perquisites and other personal benefits furnished to each of these executive officers was less than $10,000 in both the 2012 and 2011 fiscal years.

Grants of Plan-Based Awards for Fiscal 2012

There were no stock options awarded during the fiscal year ended December 29, 2012.

Long-Term Incentive Plans-Awards in Last Fiscal Year

We do not currently have any long-term incentive plans.

Director Compensation

Our non-employee directors earned director compensation in fiscal year ended December 29, 2012 based on the number of meetings attended. Mr. Axelrod, chairman of the audit committee, receives $1,500 per meeting attended. Other members of the audit committee receive $1,000 per meeting attended. All other non-employee directors are entitled to $500 per meeting attended. Messrs. Forem and Snitow waive their compensation.

The following table sets forth the compensation received by each of the Company’s non-employee directors for the year ended December 29, 2012. Each non-employee director is considered independent under NYSE MKT listing standards. Messrs. Forem and Snitow waive their compensation.

Name	Fees Earned or Paid in Cash ($)		Stock Awards ($)		Option Awards ($)		Non-Equity Incentive Plan Compensation ($)		Nonqualified Deferred Compensation ($)		All Other Compensation ($)			Total ($)
Neal S. Axelrod		9,000		—		—		—		—		—			9,000
Joseph Fischer		500		—		—		—		—		—			500
Aaron Forem		—		—		—		—		—		—			—
Philip Gotthelf		7,500		—		—		—		—		7,500	*		15,000
Scott Korman		1,500		—		—		—		—		—			1,500
Reuben Rapoport		—		—		—		—		—		—			—
Franklyn Snitow		—		—		—		—		—		—			—

* Mr. Gotthelf receives a $2,500 per month expense allowance pursuant to a consulting agreement. See Item 13. Certain Relationships and Related Transactions, and Director Independence.

Employment Agreements

We do not currently have any employment agreements with our executive officers. We do not anticipate having employment contracts with executive officers and key personnel in the future.

Outstanding Equity Awards at Fiscal Year End

The following table reflects that no options awards were granted to either of the named executive officers identified above in the summary compensation table pursuant to an Equity Incentive Plan.

Outstanding Equity Awards at Fiscal Year-End

Option Awards

Stock Awards

Name

Number of securities underlying unexercised options (#) Exerciseable

Number of securities underlying unexercised options (#) Unexerciseable

Equity incentive
plan
awards:
number of securities underlying unexercised unearned options (#)

Option exercise

price ($)

Option expiration date

Number
of
shares
or units
of stock
that
have not
vested (#)

Market
value of
shares
or units
of stock
that
have not
vested ($)

Equity incentive
plan
awards:
number
of
unearned
shares,
units or
other
rights
that have
not
vested (#)

Equity
incentive
plan
awards:
market or
payout
value of
unearned
shares,
units or
other
rights that
have not
vested ($)

David Mintz

—

Steven Kass

—

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The following tables set forth as of March 26, 2013 certain information regarding the ownership of our common stock, $0.01 par value, for each person known by us to be the beneficial owner of more than 5% of the outstanding shares of common stock, for each executive officer named in the Summary Compensation Table, for each of our directors and for our executive officers and directors as a group:

Security ownership of certain beneficial owners.

Name and Address of Beneficial Owner(1)		Amount and Nature of Beneficial Owner(2)				Percent of Class(3)
David Mintz			2,630,440				51.0%

(1)	The address of Mr. Mintz is c/o Tofutti Brands Inc., 50 Jackson Drive, Cranford, New Jersey 07016. Mr. Mintz has sole voting and/or investment power of the shares attributed to him.

(2)

Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Shares of common stock relating to options currently exercisable or exercisable within 60 days of March 26, 2013 are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person. Except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table above have sole voting and investment power with respect to all shares shown as beneficially owned by them.

(3) Based on 5,153,706 shares issued and outstanding as of March 26, 2013 .

Security ownership of management.

Name and Address of Beneficial Owner(1)	Amount and Nature of Beneficial Owner(2)		Percent of Class(3)
David Mintz		2,630,440		51.0	%
Steven Kass		220,000		4.3	%
Franklyn Snitow		47,200		*
Reuben Rapoport		41,100		*
Neal S. Axelrod		1,000		*
Joseph Fischer		0		*
Philip Gotthelf		0		*
Aaron Forem		0		*
Scott Korman		0		*
All Executive Officers and Directors as a group (9 persons)		2,939,740		57.1	%

* Less than 1%.

(1)

The address of Messrs. Mintz, Kass, Axelrod, Fischer, Gotthelf and Rapoport is c/o Tofutti Brands Inc., 50 Jackson Drive, Cranford, New Jersey 07016. The address of Mr. Snitow is 575 Lexington Avenue, New York, New York 10017. The address of Mr. Forem is 52-62 Cornelia Street, Newark, New Jersey 07105. The address of Mr. Korman is c/o Nashone, Inc., 175 Elm Road, Englewood, NJ 0361. Each of these persons has sole voting and/or investment power of the shares attributed to him.

(2)

Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Shares of common stock relating to options currently exercisable or exercisable within 60 days of March 30, 2012 are deemed outstanding for computing the percentage of the person holding such securities but are not deemed outstanding for computing the percentage of any other person. Except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table above have sole voting and investment power with respect to all shares shown as beneficially owned by them.

(3) Based on 5,153,706 shares issued and outstanding as of March 26, 2013 .

Item 13.

Certain Relationships and Related Transactions, and Director Independence.

Effective October 1, 2012, we entered into an agreement with our director, Philip Gotthelf, pursuant to which Mr. Gotthelf agreed to provide us with certain consulting and business development services relating to the introduction of our company to potential users, licensees, and co-developers of our products. Under this agreement, which is for an initial one year term that renews automatically for additional one-year periods if notice of termination is not provided thirty days in advance of the anniversary of the effective date of the agreement, Mr. Gotthelf would be entitled to receive a 10% commission on sales if we entered into a licensing agreement with a third party and a 5% commission on sales to a third party that does not enter into a license agreement with us. In addition, we agreed that if Mr. Gotthelf is instrumental in the sale of any of our securities to a third party, we would enter into an agreement to compensate him for such services, based upon the fair market value of such services. We also agreed to pay Mr. Gotthelf an expense allowance of $2,500 a month and paid him a total of $7,500 in the year ended December 29, 2012. This agreement was approved by our audit committee and board of directors, with Mr. Gotthelf abstaining from such consideration.

Item 14.

Principal Accounting Fees and Services.

Fees for independent registered public accounting firms for fiscal 2012 and 2013

Set forth below are the aggregate fees billed for each of the last two fiscal years ended December 29, 2012 and December 31, 2011 for services rendered by Eisner Amper LLP.

	2012		2011
Audit fees	$	98,000	$	96,000
Audit-related fees		—		—
Total Audit & Audit-related fees	$	98,000	$	96,000
Tax fees		—		—
All other fees		—		—
Total fees	$	98,000	$	96,000

Audit fees consist of fees billed for services rendered for the audit of our financial statements and review of our financial statements included in our quarterly reports on Form 10-Q and services provided in connection with other statutory or regulatory filings. During fiscal 2012 and 2011, we incurred audit fees with EisnerAmper LLP in the amount of $98,000 and $96,000, respectively.

Audit-related fees consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and not reported under Audit fees. No such fees were billed in fiscal 2012 and 2011.

Tax fees consist of fees billed for professional services related to the preparation of our U.S. federal and state income tax returns and tax advice. No such fees were billed in 2012 or 2011. The Audit Committee pre-approved all Audit-related fees. After considering the provision of services encompassed within the above disclosures about fees, the Audit Committee has determined that the provision of such services is compatible with maintaining EisnerAmper ’s independence.

Pre-approval policy of services performed by independent registered public accounting firm

The Audit Committee’s policy is to pre-approve all audit and non-audit related services, tax services and other services. Pre-approval is generally provided for up to one year, and any pre-approval is detailed as to the particular service or category of services and is generally subject to a specific budget. The Audit Committee has delegated the pre-approval authority to its chairperson when expedition of services is necessary. The independent registered public accounting firm and management are required to periodically report to the full Audit Committee regarding the extent of services provided by the independent registered public accounting firm in accordance with this pre-approval and the fees for the services performed to date.

PART IV

Item 15.		Exhibits and Financial Statement Schedules.

(a)		Financial Statements

		See Item 8.

(b)		Financial Statement Schedules

		None.

(c)		Exhibits

3.1		Certificate of Incorporation, as amended through February 1986.(1)

3.1.1		March 1986 Amendment to Certificate of Incorporation.(2)

3.1.2		June 1993 Amendment to Certificate of Incorporation.(3)

3.2		By-laws.(1)

4.1		Tofutti Brands Inc. 2004 Non-Employee Directors’ Stock Option Plan.(4)

31.1		Certification by Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.

31.2		Certification by Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.

32.1		Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Instance Document*

101.SCH		Schema Document*

101.CAL		Calculation Linkbase Document*

101.DEF		Definition Linkbase Document*

101.LAB		Labels Linkbase Document*

101.PRE		Presentation Linkbase Document*

Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

(1)	Filed as an exhibit to the Registrant’s Form 10-K for the fiscal year ended July 31, 1985 and hereby incorporated by reference thereto.

(2)	Filed as an exhibit to the Registrant ’ s Form 10-K for the fiscal year ended August 2, 1986 and hereby incorporated by reference thereto.

(3)	Filed as an exhibit to the Registrant’s Form 10-KSB for the fiscal year ended January 1, 2005 and hereby incorporated by reference thereto.

(4)	Filed as Appendix B to the Registrant’s Schedule 14A filed May 10, 2004 and hereby incorporated by reference thereto.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized on March 29, 2013.

	TOFUTTI BRANDS INC.
	(Registrant)

	/s/David Mintz
	David Mintz
	Chairman of the Board and
	Chief Executive Officer

In accordance with the Securities Exchange Act of 1934, this Report has been signed below on March 29, 2013, by the following persons on behalf of the Registrant and in the capacities indicated.

/s/David Mintz
David Mintz
Chairman of the Board
and Chief Executive Officer

/s/Steven Kass
Steven Kass
Secretary, Treasurer and
Chief Financial and Principal Accounting Officer


/s/ Neal S. Axelrod
Neal S. Axelrod
Director

/s/ Joseph Fischer
Joseph Fischer
Director


Aaron Forem
Director

/s/ Philip Gotthelf
Philip Gotthelf
Director

/s/ Scott Korman
Scott Korman
Director


Reuben Rapoport
Director


Franklyn Snitow
Director

EXHIBIT INDEX

Exhibit

3.1		Certificate of Incorporation, as amended through February 1986.(1)

3.1.1		March 1986 Amendment to Certificate of Incorporation.(2)

3.1.2		June 1993 Amendment to Certificate of Incorporation.(3)

3.2		By-laws.(1)

4.1		Tofutti Brands Inc. 2004 Non-Employee Directors’ Stock Option Plan.(4)

31.1		Certification by Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.

31.2		Certification by Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.

32.1		Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		Instance Document*

101.SCH		Schema Document*

101.CAL		Calculation Linkbase Document*

101.DEF		Definition Linkbase Document*

101.LAB		Labels Linkbase Document*

101.PRE		Presentation Linkbase Document*

(1)	Filed as an exhibit to the Registrant’s Form 10-K for the fiscal year ended July 31, 1985 and hereby incorporated by reference thereto.

(2)	Filed as an exhibit to the Registrant’s Form 10-K for the fiscal year ended August 2, 1986 and hereby incorporated by reference thereto.

(3)	Filed as an exhibit to the Registrant’s Form 10-KSB for the fiscal year ended January 1, 2005 and hereby incorporated by reference thereto.

(4)	Filed as Appendix B to the Registrant’s Schedule 14A filed May 10, 2004 and hereby incorporated by reference thereto.

TABLE OF CONTENTS

Part I Item 1. Business Item 1A. Risk Factors Item 1B. Unresolved Staff Comments Item 2. Properties Item 3. Legal Proceedings Item 4. Mine Safety Disclosures Part II Item 5. Market For Registrant S Common Equity, Related Stockholder Matters and Issuer Purchases Of Equity Securities Item 6. Selected Financial Data Item 7. Management S Discussion and Analysis Of Financial Condition and Results Of Operations Item 7A. Quantitative and Qualitative Disclosures About Market Risk Item 8. Financial Statements and Supplementary Data Note 1 : Liquidity and Capital Resources Note 2: Description Of The Business and Summary Of Significant Accounting Policies Note 3: Inventories Note 4: Stock Options Note 5: Leases Note 6: Income Taxes Note 7: Related Party Transactions Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Item 9A . Controls and Procedures Item 9B . Other Information Part III Item 10. Directors, Executive Officers and Corporate Governance Item 11. Executive Compensation Item 12. Security Ownership Of Certain Beneficial Owners and Management and Related Stockholder Matters Item 13. Certain Relationships and Related Transactions, and Director Independence Item 14. Principal Accounting Fees and Services Part IV Item 15. Exhibits and Financial Statement Schedules

TOFB 10-K Fiscal year ended Dec. 29, 2012