v3.26.1
INCOME TAXES
 12 Months Ended
Dec. 27, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 7: INCOME TAXES

 

The components of income tax expense for the fifty-two weeks ended December 27, 2025 and December 28, 2024 are as follows:

 SCHEDULE OF COMPONENTS OF INCOME TAX EXPENSE (BENEFIT)

   Fifty-two weeks ended 
   December 27, 2025   December 28, 2024 
Current:  Federal  $ -   $- 
   State   4    10 
       4    10 
Deferred:  Federal   -    179 
   State   -    62 
       -    241 
Total income tax (benefit) expense     $4   $251 

 

A reconciliation between the expected federal tax expense at the statutory tax rate of 21% and the Company’s actual tax expense for the fifty-two weeks ended December 27, 2025 and December 28, 2024, respectively, follows:

 

  

December 27, 2025

  

December 28, 2024

 
   Fifty-two weeks ended 
  

December 27, 2025

  

December 28, 2024

 
Federal income tax  $(103)  $(128)
NJ income taxes, net of federal income tax benefit   (33)   (34)
Prior period adjustments   7    3 
Change in state valuation allowance   26    35 
Permanent items   5    15 
Increase in valuation allowance   80    351 
Change in UTBs   2    - 
Other   20    9 
Total  $4   $251 
           

 

Deferred tax assets for the fifty-two weeks ended December 27, 2025 and December 28, 2024 consist of the following components:

 

  

December 27, 2025

  

December 28, 2024

 
Allowance for doubtful accounts  $27   $83 
Right of use asset   (77)   (95)
Lease liabilities   82    100 
Inventory   -    - 
Net operating loss carryforward   635    367 
Stock options   -    - 
Research and development   -    80 
Fixed assets   -    27 
Deferred tax asset, net  $667   $562 
Valuation Allowance   (667)   (562)
Deferred Tax Assets, Net  $-   $- 

 

 

TOFUTTI BRANDS INC.

NOTES TO FINANCIAL STATEMENTS

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

 

The Company did not pay any income taxes during fiscal year 2025 and 2024.

 

At December 27, 2025, the Company had $2,253 of federal net operating loss carryforwards and $2,238 of state net operating loss carryforwards.

 

The Company will recognize a tax provision 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 sustained 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.

 

The following table indicates the changes to the Company’s uncertain tax positions for the fifty-two weeks ended December 27, 2025 and December 28, 2024:

 

Balance at January 1, 2024  $211 
Increase due to reserves and tax positions related to current year   - 
Balance at December 28, 2024  $211 
Increase due to reserves and tax positions related to current year   2 
Balance at December 27, 2025  $213 

 

The Company accounts for penalties or interest related to uncertain tax positions as part of its provision for income taxes. The amount of uncertain tax positions that would affect the effective tax rate if they were recognized is $213. The liability at December 27, 2025 of uncertain tax positions is included in accrued expenses. The Company is no longer subject to federal and state examinations for fiscal years before 2022.