Executive Summary

Q3 2025 net sales were $1.907M, down 4% year over year and down 6% sequential; gross margin improved year over year to 27% (from 25%), but fell sequentially from 30% as operating loss widened vs Q2 .
Net loss narrowed year over year to $(0.137)M (EPS $(0.03)), but deteriorated vs Q2’s near breakeven result of $(0.007)M (EPS $(0.00)) .
YTD gross margin expanded to 31% vs 25% a year ago, driven by price increases implemented in late 2024; sales volumes remained pressured by increased competition in vegan cheese and earlier tariff-related demand pauses at key customers .
No formal guidance was provided; an August product collaboration with Greens & Grains highlights ongoing foodservice/innovation efforts that could support category presence and pipeline .

What Went Well and What Went Wrong

Gross margin improved year over year to 27% in Q3 (25% LY); YTD margin rose to 31% (25% LY) aided by price increases at end-2024 .
Operating discipline: selling/warehouse and marketing stayed contained YTD; Q3 opex of $652k was broadly in line with recent run-rate .
Strategic product collaboration: “Greens and Grains is a respected and fast-growing vegan brand… this partnership aligns perfectly with one of our core markets—vegans and vegetarians” — Steven Kass, CFO .

Top-line softness: Q3 sales fell 4% year over year to $1.907M and 6% sequential; vegan cheese declined slightly and frozen desserts fell year over year .
Demand headwinds: earlier quarters cited tariff uncertainty that led two of the largest domestic customers to pause purchase plans; competitive intensity persisted in vegan cheese .
Sequential margin compression: Q3 gross margin of 27% declined from Q2’s 30%, with operating loss widening from $(7)k in Q2 to $(133)k in Q3 .

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD)	$1,591,000	$2,029,000	$1,907,000
Gross Profit ($USD)	$589,000	$618,000	$519,000
Gross Margin (%)	37%	30%	27%
Operating Expenses ($USD)	$750,000	$625,000	$652,000
Operating Income (Loss) ($USD)	$(161,000)	$(7,000)	$(133,000)
Net Income (Loss) ($USD)	$(162,000)	$(7,000)	$(137,000)
Diluted EPS ($USD)	$(0.03)	$(0.00)	$(0.03)

Segment	Q1 2025	Q2 2025	Q3 2025
Vegan Cheese ($USD)	$1,373,000	$1,708,000	$1,632,000
Frozen Desserts ($USD)	N/A	$321,000	$275,000

KPI	Q1 2025 (Mar 29)	Q2 2025 (Jun 28)	Q3 2025 (Sep 27)
Cash ($USD)	$609,000	$350,000	$630,000
Working Capital ($USD)	$2,738,000	$2,733,000	$2,598,000
Accounts Receivable ($USD)	$540,000	$715,000	$787,000
Inventories ($USD)	$2,144,000	$2,211,000	$2,231,000
Total Assets ($USD)	$3,755,000	$3,708,000	$4,062,000
Total Liabilities ($USD)	$931,000	$891,000	$1,382,000
Stockholders’ Equity ($USD)	$2,824,000	$2,817,000	$2,680,000
Borrowings	None	None	None

Metric	Period	Previous Guidance	Current Guidance	Change
All metrics	FY/Q4 2025	N/A (no formal guidance provided)	N/A (no formal guidance provided)	Maintained: No guidance

Topic	Previous Mentions (Q2 & Q1)	Current Period (Q3)	Trend
Tariffs/Macro	Q1: sales paused due to uncertainty from proposed new tariffs; Q2: two largest domestic customers paused some regular purchases	No new tariff commentary in Q3 release	Easing impact (no fresh Q3 disruption noted)
Competition	Increased competition in vegan cheese cited in Q1 and Q2	Continued pressure; vegan cheese slightly down YoY	Persistent headwind
Pricing Actions	Price increases at end-2024 drove YTD margin improvement	YTD gross margin 31% vs 25% LY; Q3 GM 27%	Structural margin support, though sequentially softer
Product Performance	Frozen desserts down YoY Q2; frozen desserts down further in Q3	Frozen desserts $275k vs $338k LY	Weak
Product Innovation/Partnerships	—	Greens & Grains foodservice tzatziki collaboration announced Aug-19	Positive strategic development

“Greens and Grains is a respected and fast-growing vegan brand. This partnership aligns perfectly with one of our core markets—vegans and vegetarians—and we’re proud to collaborate with a fellow New Jersey business.” — Steven Kass, Chief Executive and Financial Officer .
“We’re thrilled with the synergy this partnership has created… we’re excited about what’s to come.” — Steven Kass .
Releases reiterate that increased competition in vegan cheese weighed on sales, while price increases implemented at end-2024 supported gross margin expansion year to date .

No earnings call transcript or Q&A was furnished with the Q3 8-K; the filing only attached the press release (Exhibit 99.1) .

Metric	Q1 2025	Q2 2025	Q3 2025
Consensus Revenue ($USD)	N/A*	N/A*	N/A*
Actual Revenue ($USD)	$1,591,000	$2,029,000	$1,907,000
Consensus EPS ($USD)	N/A*	N/A*	N/A*
Actual Diluted EPS ($USD)	$(0.03)	$(0.00)	$(0.03)

Values retrieved from S&P Global.*

With consensus estimates unavailable, we cannot classify the quarter as a beat/miss vs Wall Street.

Sequential softening: Q3 revenue declined 6% vs Q2 and gross margin fell to 27% (from 30%), with operating loss widening; near-term focus should be on demand normalization and margin preservation .
Year-over-year margin improvement: Despite top-line pressure, YTD margin gains (31% vs 25% LY) indicate pricing actions are holding; monitor sustainability amid competition .
Category headwinds: Vegan cheese remains competitive and frozen desserts underperformed year over year; product mix and channel strategy warrant close tracking .
Liquidity and balance sheet: Cash improved to ~$630k at quarter-end; working capital of ~$2.6M and no borrowings provide some flexibility, but equity declined to $2.68M; inventory levels remain elevated .
Strategic pipeline: The Greens & Grains collaboration underscores foodservice opportunity and potential for branded dip extensions, which could aid distribution and mix over time .
No guidance: Absence of formal guidance and lack of Street coverage reduce visibility; trading may be headline-driven around customer reorders, innovation news, or tariff developments .
Near-term watch items: Re-engagement of paused customers, competitive response in vegan cheese, and margin trajectory into Q4 given seasonal dynamics and pricing carry-through .