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Liquidity and Capital Resources
9 Months Ended
Oct. 03, 2015
Liquidity and Capital Resources [Abstract]  
Liquidity and Capital Resources

Note 1: Liquidity and Capital Resources

 

At October 3, 2015, Tofutti Brands, Inc. (“Tofutti” or the “Company”) had approximately $136 in cash compared to $341 at December 27, 2014. Net cash used in operating activities for the forty weeks ended October 3, 2015 was $200 compared to $150 used in operating activities for the thirty-nine weeks ended September 27, 2014. Net cash used in operating activities for the forty weeks ended October 3, 2015 was primarily a result of the net loss of $526 and a decrease in current liabilities of $28, which were partially offset by a decrease in current assets, excluding cash, of $236. The decrease in current assets was primarily due to a decrease in inventory of $329.

 

The Company has historically financed operations and met capital requirements primarily through positive cash flow from operations. However, due to the net losses and cash used in operations in the previous two fiscal years and the first three quarters of fiscal 2015, the Company will likely require additional financing in order to accomplish or exceed their business plans for future periods.

 

The Company’s ability to introduce successful new products may be adversely affected by a number of factors, such as unforeseen cost and expenses, economic environment, increased competition, and other factors beyond the Company’s control. Management cannot provide assurance that the Company will operate profitably in the future, or that it will not require significant additional financing in order to accomplish or exceed the objectives of its business plan. Consequently, the Company’s historical operating results cannot be relied on as an indicator of future performance, and management cannot predict whether the Company will obtain or sustain positive operating cash flow or generate net income in the future.