Note 6: Share Based Compensation

On June 10, 2014, the shareholders of the Company approved the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan provides for grants of various types of awards that are designed to attract and retain highly qualified personnel who will contribute to the success of the Company and to provide incentives to participants in the 2014 Plan that are linked directly to increases in shareholder value which will therefore ensure to the benefit of all shareholders of the Company. Such grants can be, but are not limited to, options, stock appreciation rights, restricted stock, performance grants, stock bonuses, and any other type of award that is consistent with the purposes of the 2014 Plan. Employees and officers of the Company are eligible to receive incentive stock options while corporate directors are only eligible to receive non-qualified options.

TOFUTTI BRANDS INC.

Notes to Unaudited Condensed Financial Statements

(in thousands, except share and per share data)

The 2014 Plan made 250,000 shares of common stock available for awards. The 2014 Plan also permits performance-based 2014 awards paid under it to be tax deductible under Section 162(m) of the Internal Revenue Code of 1986, as amended, as “performance-based compensation. As of June 28, 2025 the 2014 plan is expired. “No stock options have been granted since 2022. In 2022, 250,000 stock options were issued, and as of June 28, 2025, 250,000 non-qualified stock options remain outstanding. The exercise price of all options granted in 2022 is $0.95 per share, the market price at the close of business on the date of the grant. 83,333 of the options vested at the respective grant date, 83,333 vested in December 2023, and 83,334 vested in December 2024. All options expire on December 22, 2027.

The following is a summary of stock option activity from December 28, 2024 to June 28, 2025:

 Schedule of Stock Option Activity

The following table summarizes information about stock options outstanding from December 29, 2024 to June 28, 2025:

 Schedule of Information about Stock Options Outstanding 

As of June 28, 2025 and June 29, 2024 the intrinsic value of the options outstanding and exercisable options was $0. As of June 28, 2025 there was $0 of total unrecognized compensation cost. Total stock-based compensation for the thirteen weeks ended June 28, 2025 and June 29, 2024 was $0 and $22, respectively, which is recorded in general and administrative expenses on the statements of operations. Total stock-based compensation for the twenty-six weeks ended June 28, 2025 and June 29, 2024 was $0 and $26, respectively, which is recorded in general and administrative expenses on the statements of operations.