Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
May 31, 2017 | Jul. 14, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | BAB, INC. | |
Entity Central Index Key | 1,123,596 | |
Trading Symbol | babb | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 7,263,508 | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | May 31, 2017 | Nov. 30, 2016 |
Current Assets | ||
Cash | $ 752,915 | $ 907,116 |
Restricted cash | 632,383 | 598,887 |
Receivables | ||
Trade accounts and notes receivable (net of allowance for doubtful accounts of $22,256 in 2017 and $25,319 in 2016 ) | 50,196 | 50,844 |
Marketing fund contributions receivable from franchisees and stores | 8,360 | 10,238 |
Inventories | 26,741 | 16,130 |
Prepaid expenses and other current assets | 79,244 | 81,021 |
Total Current Assets | 1,549,839 | 1,664,236 |
Property, plant and equipment (net of accumulated depreciation of $153,604 in 2017 and $152,334 in 2016) | 4,871 | 1,226 |
Trademarks | 459,637 | 455,182 |
Goodwill | 1,493,771 | 1,493,771 |
Definite lived intangible assets (net of accumulated amortization of $123,398 in 2017 and $114,290 in 2016) | 9,108 | |
Deferred tax asset | 248,000 | 248,000 |
Total Noncurrent Assets | 2,206,279 | 2,207,287 |
Total Assets | 3,756,118 | 3,871,523 |
Current Liabilities | ||
Accounts payable | 53,460 | 43,383 |
Accrued expenses and other current liabilities | 293,528 | 365,169 |
Unexpended marketing fund contributions | 641,503 | 609,380 |
Deferred franchise fee revenue | 40,000 | |
Deferred licensing revenue | 32,440 | 49,226 |
Current and Total Liabilities | 1,020,931 | 1,107,158 |
Stockholders' Equity | ||
Preferred stock | ||
Common stock -$.001 par value; 15,000,000 shares authorized; 8,466,953 shares issued and 7,263,508 shares outstanding as of May 31, 2017 and November 30, 2016 | 13,508,257 | 13,508,257 |
Additional paid-in capital | 987,034 | 987,034 |
Treasury stock | (222,781) | (222,781) |
Accumulated deficit | (11,537,323) | (11,508,145) |
Total Stockholders' Equity | 2,735,187 | 2,764,365 |
Total Liabilities and Stockholders' Equity | 3,756,118 | 3,871,523 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | May 31, 2017 | Nov. 30, 2016 |
Trade accounts and notes receivable, allowance for doubtful accounts | $ 22,256 | $ 25,319 |
Property, plant and equipment, accumulated depreciation | 153,604 | 152,334 |
Definite lived intangible assets, accumulated amortization | $ 123,398 | $ 114,290 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 8,466,953 | 8,466,953 |
Common stock, shares outstanding (in shares) | 7,263,508 | 7,263,508 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
REVENUES | ||||
Royalty fees from franchised stores | $ 447,982 | $ 449,713 | $ 848,243 | $ 856,613 |
Franchise fees | 40,000 | 3,000 | 40,000 | 18,000 |
Licensing fees and other income | 119,895 | 111,727 | 212,355 | 270,704 |
Total Revenues | 607,877 | 564,440 | 1,100,598 | 1,145,317 |
OPERATING EXPENSES | ||||
Payroll and payroll-related expenses | 261,907 | 242,811 | 508,984 | 520,067 |
Occupancy | 43,934 | 42,948 | 89,795 | 87,738 |
Advertising and promotion | 4,442 | 11,893 | 11,712 | 21,592 |
Professional service fees | 27,253 | 22,655 | 77,574 | 71,532 |
Travel | 10,150 | 8,360 | 18,876 | 17,336 |
Employee benefit expense | 40,874 | 33,064 | 80,253 | 77,355 |
Depreciation and amortization | 5,170 | 5,167 | 10,378 | 10,016 |
Other | 78,166 | 65,640 | 114,361 | 118,443 |
Total Operating Expenses | 471,896 | 432,538 | 911,933 | 924,079 |
Income from operations | 135,981 | 131,902 | 188,665 | 221,238 |
Interest income | 31 | 147 | 63 | 333 |
Interest expense | (397) | (794) | ||
Income before provision for income taxes | 136,012 | 131,652 | 188,728 | 220,777 |
Provision for income taxes | ||||
Current tax | ||||
Net Income | $ 136,012 | $ 131,652 | $ 188,728 | $ 220,777 |
Net Income per Share - Basic and Diluted (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.03 |
Weighted average shares outstanding - Basic and Diluted (in shares) | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 |
Cash distributions declared per share (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.04 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Operating activities | ||
Net income | $ 188,728 | $ 220,777 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 10,378 | 10,016 |
Provision for uncollectible accounts, net of recoveries | (3,063) | (2,791) |
Changes in: | ||
Trade accounts receivable and notes receivable | 3,711 | (12,126) |
Restricted cash | (33,496) | (81,728) |
Marketing fund contributions receivable | 1,878 | (6,253) |
Inventories | (10,611) | 583 |
Prepaid expenses and other | 1,777 | (8,810) |
Accounts payable | 10,077 | 2,539 |
Accrued liabilities | (71,641) | (9,294) |
Unexpended marketing fund contributions | 32,123 | 87,981 |
Deferred revenue | (56,786) | 1,012 |
Net Cash Provided by Operating Activities | 73,075 | 201,906 |
Investing activities | ||
Capitalization of trademark renewals | (4,455) | (4,022) |
Purchase of Equipment | (4,915) | |
Net Cash Used In Investing Activities | (9,370) | (4,022) |
Financing activities | ||
Cash distributions/dividends | (217,906) | (290,540) |
Net Cash Used In Financing Activities | (217,906) | (290,540) |
Net Decrease in Cash | (154,201) | (92,656) |
Cash, Beginning of Period | 907,116 | 837,382 |
Cash, End of Period | 752,915 | 744,726 |
Supplemental disclosure of cash flow information: | ||
Interest paid | ||
Income taxes paid | $ 15,801 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 6 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | Note 1. BAB, Inc. (“the Company”) has three December 2, 1992, 1997 1996 August 30, 1995, none. February 1, 1999, September 9, 2009 no The Company was incorporated under the laws of the State of Delaware on July 12, 2000. May 31, 2017, 85 3 24 not The BAB franchised brand consists of units operating as “Big Apple Bagels,” featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. Licensed BAB units serve the Company's frozen bagel and related products baked daily. BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as "My Favorite Muffin," featuring a large variety of freshly baked muffins, coffees and related products, and units operating as "My Favorite Muffin and Bagel Cafe®," featuring these products as well as a variety of specialty bagel sandwiches and related products. The SweetDuet Frozen Yogurt & Gourmet Muffins® brand is a fusion concept, pairing self-serve frozen yogurt with MFM’s exclusive line of My Favorite Muffin gourmet muffins. SD frozen yogurt can be added as an additional brand in a BAB or MFM location. Although the Company doesn't actively market Brewster's stand-alone franchises, Brewster's coffee products are sold in most franchised units. The Company is leveraging on the natural synergy of distributing muffin products in existing BAB units and, alternatively, bagel products and Brewster's Coffee in existing MFM units. The Company expects to continue to realize efficiencies in servicing the combined base of BAB and MFM franchisees. The accompanying condensed consolidated financial statements are unaudited. These financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been omitted pursuant to such SEC rules and regulations; nevertheless, the Company believes that the disclosures are adequate to make the information presented not 10 November 30, 2016 February 23, 2017. not |
Note 2 - Units Open and Under D
Note 2 - Units Open and Under Development | 6 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Units Open and Under Development [Text Block] | 2. Units which are open or under development at May 31, 2017 Stores open: Franchisee-owned stores 85 Licensed Units 3 88 Unopened stores with Franchise Agreements - Total operating units and units with Franchise Agreements 88 |
Note 3 - Earnings (Loss) Per Sh
Note 3 - Earnings (Loss) Per Share | 6 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 3. The following table sets forth the computation of basic and diluted earnings per share: For the three months ended May 31, For the six months ended May 31, 2017 2016 2017 2016 Numerator: Net income available to common shareholders $ 136,012 $ 131,652 $ 188,728 $ 220,777 Denominator: Weighted average outstanding shares Basic and diluted 7,263,508 7,263,508 7,263,508 7,263,508 Earnings per Share - Basic and Diluted $ 0.02 $ 0.02 $ 0.03 $ 0.03 There were no three six May 31, 2017. three February 29, 2016 six May 31, 2016, 175,000 |
Note 4 - Stock Options
Note 4 - Stock Options | 6 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 4. In May 2001, 1,400,000 November 23, 2016 no May 31, 2017. May 31, 2016, 1,225,000 November 30, 2016. For the six months ended: May 31, 2017 May 31, 2016 Options outstanding at beginning of year - 237,500 Granted - - Forfeited or expired - (62,500 ) Exercised - - Outstanding at end of period - 175,000 |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 6 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 5. Accounting Standard Codification (“ASC”) 350 no 2017 04 350 first February 28, 2017. The Company tests goodwill that is not The Company has consistently conducted its annual test during the first not not February 28, 2017, not no May 31, 2017 The impairment test performed November 30, 2016 no no first second 2017 |
Note 6 - Recent and Adopted Acc
Note 6 - Recent and Adopted Accounting Pronouncements | 6 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | 6. In January 2017, 2017 04, 350 2 December 15, 2019, February 28, 2017. Revenue from Contracts with Customers, ASU 2014 09 five December 15, 2017. 2014 09 November 30, 2019 On February 25, 2016, No. 2016 02, December 15, 2018. 2016 02 November 30, 2019 In March 2016, 2016 04, 405 20 not December 15, 2017, In November 2015, No. 2015 17, 740 2015 17” 2015 17 December 15, 2016. may 2015 17 November 30, 2018, not Management does not not |
Note 7 - Stockholder's Equity
Note 7 - Stockholder's Equity | 6 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 7. The Board of Directors declared a cash distribution/dividend on March 3, June 6 September 6, 2016 $0.01 April 13, July 11, October 12, 2016, December 5, 2016, $0.01 $0.01 January 9, 2017. March 15, 2017, $0.01 March 31, 2017 April 20, 2017. On June 5, 2017, $0.01 June 26, 2017, July 13, 2017. On May 6, 2013 one one one not one May 13, 2013. not 15% 20% one one $0.90 one three On June 18, 2014 August 18, 2015 fifth May 22, 2017 seventh |
Note 2 - Units Open and Under13
Note 2 - Units Open and Under Development (Tables) | 6 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Franchisor Disclosure [Table Text Block] | Stores open: Franchisee-owned stores 85 Licensed Units 3 88 Unopened stores with Franchise Agreements - Total operating units and units with Franchise Agreements 88 |
Note 3 - Earnings (Loss) Per 14
Note 3 - Earnings (Loss) Per Share (Tables) | 6 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the three months ended May 31, For the six months ended May 31, 2017 2016 2017 2016 Numerator: Net income available to common shareholders $ 136,012 $ 131,652 $ 188,728 $ 220,777 Denominator: Weighted average outstanding shares Basic and diluted 7,263,508 7,263,508 7,263,508 7,263,508 Earnings per Share - Basic and Diluted $ 0.02 $ 0.02 $ 0.03 $ 0.03 |
Note 4 - Stock Options (Tables)
Note 4 - Stock Options (Tables) | 6 Months Ended |
May 31, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | For the six months ended: May 31, 2017 May 31, 2016 Options outstanding at beginning of year - 237,500 Granted - - Forfeited or expired - (62,500 ) Exercised - - Outstanding at end of period - 175,000 |
Note 1 - Nature of Operations (
Note 1 - Nature of Operations (Details Textual) | May 31, 2017 |
Number of Wholly Owned Subsidiaries | 3 |
Number of Stores | 88 |
Number of States in which Entity Operates | 24 |
Franchised Units [Member] | |
Number of Stores | 85 |
Licensed Units [Member] | |
Number of Stores | 3 |
Note 2 - Units Open and Under17
Note 2 - Units Open and Under Development - Operating Units (Details) | May 31, 2017 |
Number of stores | 88 |
Franchised Units [Member] | |
Number of stores | 85 |
Licensed Units [Member] | |
Number of stores | 3 |
Total Franchised Owned and Licensed Units [Member] | |
Number of stores | 88 |
Unopened Store [Member] | |
Number of stores |
Note 3 - Earnings (Loss) Per 18
Note 3 - Earnings (Loss) Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
May 31, 2017 | Feb. 29, 2016 | May 31, 2017 | May 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 175,000 | 0 | 175,000 |
Note 3 - Earnings (Loss) Per 19
Note 3 - Earnings (Loss) Per Share - Computation of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 | |
Net income available to common shareholders | $ 136,012 | $ 131,652 | $ 188,728 | $ 220,777 |
Weighted average shares outstanding - Basic and Diluted (in shares) | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 |
Net Income per Share - Basic and Diluted (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.03 |
Note 4 - Stock Options (Details
Note 4 - Stock Options (Details Textual) - shares | May 31, 2017 | Nov. 30, 2016 | May 31, 2016 | Nov. 30, 2015 | May 31, 2001 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,400,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | 175,000 | 237,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises and Forfeitures in Period | 1,225,000 |
Note 4 - Stock Options - Stock
Note 4 - Stock Options - Stock Option Activity (Details) - shares | 6 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Options outstanding at beginning of year (in shares) | 0 | 237,500 |
Granted (in shares) | ||
Forfeited or expired (in shares) | (62,500) | |
Exercised (in shares) | ||
Outstanding at end of period (in shares) | 0 | 175,000 |
Note 5 - Goodwill and Other I22
Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Feb. 28, 2017 | May 31, 2017 | |
Goodwill, Impairment Loss | $ 0 | $ 0 |
Note 7 - Stockholder's Equity (
Note 7 - Stockholder's Equity (Details Textual) - $ / shares | Jun. 05, 2017 | Apr. 20, 2017 | Mar. 15, 2017 | Jan. 09, 2017 | Dec. 05, 2016 | Oct. 12, 2016 | Sep. 06, 2016 | Jul. 11, 2016 | Jun. 06, 2016 | Apr. 13, 2016 | Mar. 03, 2016 | May 13, 2013 | May 06, 2013 | May 31, 2017 | May 31, 2016 | May 31, 2017 | May 31, 2016 |
Preferred Stock Dividends Number of Rights Minimum Percent of Common Stock that Must be Acquired to Make Rights Exercisable Institutional Investors | 20.00% | ||||||||||||||||
Preferred Stock Dividends Rights Exercise Price | $ 0.90 | ||||||||||||||||
Preferred Stock Dividends Rights Expiration Term | 3 years | ||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.04 | ||||||||||
Preferred Stock Dividends Number of Rights Declared | 1 | ||||||||||||||||
Preferred Stock Dividends Number of Rights Minimum Percent of Common Stock that must be Acquired to Make Rights Exercisable | 15.00% | ||||||||||||||||
Quarterly Dividend [Member] | |||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 | $ 0.01 | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.01 | |||||||||||||||
Quarterly Dividend [Member] | Subsequent Event [Member] | |||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | ||||||||||||||||
Special Cash Distribution [Member] | |||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 | ||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 |