BAB (BABB) 10-Q 13 Apr 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Feb. 28, 2018	Apr. 13, 2018
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	Feb. 28, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Feb. 28, 2018	Nov. 30, 2017
Current Assets
Cash	$ 799,564	$ 792,655
Restricted cash	682,076	693,425
Receivables
Trade accounts and notes receivable (net of allowance for doubtful accounts of $18,275 in 2018 and $19,438 in 2017 )	48,689	56,342
Marketing fund contributions receivable from franchisees and stores	10,053	12,635
Inventories	12,890	19,761
Prepaid expenses and other current assets	79,156	85,770
Total Current Assets	1,632,428	1,660,588
Property, plant and equipment (net of accumulated depreciation of $154,481 in 2018 and $154,762 in 2017)	1,685	5,515
Trademarks	459,637	459,637
Goodwill	1,493,771	1,493,771
Definite lived intangible assets (net of accumulated amortization of $123,433 in 2018 and $123,398 in 2017)	4,211
Deferred tax asset	248,000	248,000
Total Noncurrent Assets	2,207,304	2,206,923
Total Assets	3,839,732	3,867,511
Current Liabilities
Accounts payable	47,913	43,741
Accrued expenses and other current liabilities	270,926	243,397
Unexpended marketing fund contributions	692,709	706,856
Deferred franchise fee revenue
Deferred licensing revenue	17,262	18,155
Current and Total Liabilities	1,028,810	1,012,149
Stockholders' Equity
Preferred shares
Preferred shares
Common stock -$.001 par value; 15,000,000 shares authorized; 8,466,953 shares issued and 7,263,508 shares outstanding as of February 28, 2018 and November 30, 2017	13,508,257	13,508,257
Additional paid-in capital	987,034	987,034
Treasury stock	(222,781)	(222,781)
Accumulated deficit	(11,461,588)	(11,417,148)
Total Stockholders' Equity	2,810,922	2,855,362
Total Liabilities and Stockholders' Equity	3,839,732	3,867,511
Series A Preferred Stock [Member]
Stockholders' Equity
Preferred shares
Preferred shares

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Feb. 28, 2018	Nov. 30, 2017
Trade accounts and notes receivable, allowance for doubtful accounts	$ 18,275	$ 19,438
Property, plant and equipment, accumulated depreciation	154,481	154,762
Definite lived intangible assets, accumulated amortization	$ 123,433	$ 123,398
Preferred shares, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred shares, shares authorized (in shares)	4,000,000	4,000,000
Preferred shares, shares outstanding (in shares)	0	0
Preferred shares, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred shares, shares authorized (in shares)	4,000,000	4,000,000
Preferred shares, shares outstanding (in shares)	0	0
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 shares, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred shares, shares authorized (in shares)	1,000,000	1,000,000
Preferred shares, shares outstanding (in shares)	0	0
Preferred shares, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred shares, shares authorized (in shares)	1,000,000	1,000,000
Preferred shares, shares outstanding (in shares)	0	0

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Feb. 28, 2018	Feb. 28, 2017
REVENUES
Royalty fees from franchised stores	$ 385,051	$ 400,261
Licensing fees and other income	115,416	92,460
Total Revenues	500,467	492,721
OPERATING EXPENSES
Payroll and payroll-related expenses	207,362	247,077
Occupancy	39,839	45,861
Advertising and promotion	993	7,270
Professional service fees	61,309	50,321
Travel	9,075	8,726
Employee benefit expenses	27,471	39,379
Depreciation and amortization	152	5,208
Other	38,460	36,195
Total Operating Expenses	384,661	440,037
Income from operations	115,806	52,684
Interest income	24	32
Income before provision for income taxes	115,830	52,716
Provision for income taxes
Current tax expense	15,000
Net Income	$ 100,830	$ 52,716
Net Income per share - Basic and Diluted (in dollars per share)	$ 0.01	$ 0.01
Weighted average shares outstanding - Basic and diluted (in shares)	7,263,508	7,263,508
Cash distributions declared per share (in dollars per share)	$ 0.02	$ 0.02

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Feb. 28, 2018	Feb. 28, 2017
Operating activities
Net Income	$ 100,830	$ 52,716
Adjustments to reconcile net income to cash flows (used in)/provided by operating activities:
Depreciation and amortization	152	5,208
Provision for uncollectible accounts, net of recoveries	(1,163)	(1,491)
Proceeds from sale of property and equipment	4,516
Changes in:
Trade accounts receivable and notes receivable	8,816	(38,109)
Restricted cash	11,349	(15,704)
Marketing fund contributions receivable	2,582	(15,924)
Inventories	6,068	(11,855)
Prepaid expenses and other	6,614	(13,150)
Accounts payable	4,172	8,742
Accrued liabilities	27,529	(75,511)
Unexpended marketing fund contributions	(14,147)	30,797
Deferred revenue	(893)	(8,393)
Net Cash (Used in)/Provided by Operating Activities	156,425	(82,674)
Investing activities
Purchase of equipment		(4,915)
Capitalization of trademark renewals	(4,246)
Net Cash Used In Investing Activities	(4,246)	(4,915)
Financing activities
Cash distributions/dividends	(145,270)	(145,271)
Net Cash Used In Financing Activities	(145,270)	(145,271)
Net Increase (Decrease) in Cash	6,909	(232,860)
Cash, Beginning of Period	792,655	907,116
Cash, End of Period	799,564	674,256
Supplemental disclosure of cash flow information:
Interest paid
Income taxes paid		$ 12,700

Note 1 - Nature of Operations

Note 1 - Nature of Operations	3 Months Ended
	Feb. 28, 2018
Notes to Financial Statements
Nature of Operations [Text Block]	Note 1 . N ature of Operations BAB, Inc. (“the Company”) has three December 2, 1992, 1997 1996 1995, none. 1999, 2009 no The Company was incorporated under the laws of the State of Delaware on July 12, 2000. February 28, 2018, 80 3 23 3 not December 2017, 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. 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® 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, 2017 February 26, 2018. not

Note 2 - Units Open and Under D

Note 2 - Units Open and Under Development	3 Months Ended
	Feb. 28, 2018
Notes to Financial Statements
Units Open and Under Development [Text Block]	2. Units Open and Under Development Units which are open or under development at February 28, 2018 Stores open: Franchisee-owned stores 80 Licensed Units 3 83 Unopened stores with Franchise Agreements 3 Total operating units and units with Franchise Agreements 86

Note 3 - Earnings Per Share

Note 3 - Earnings Per Share	3 Months Ended
	Feb. 28, 2018
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: February 28, 2018 February 28, 2017 Numerator: Net income available to common shareholders $ 100,830 $ 52,716 Denominator: Weighted average outstanding shares Basic and diluted common stock 7,263,508 7,263,508 Earnings per Share - Basic $ 0.01 $ 0.01

Note 4 - Goodwill and Other Int

Note 4 - Goodwill and Other Intangible Assets	3 Months Ended
	Feb. 28, 2018
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	4 . Goodwill and Other Intangible Assets Accounting Standard Codification (“ASC”) 350 no The Company tests goodwill that is not first February 28, 2018, not not February 28, 2018, not

Note 5 - Recent Accounting Pron

Note 5 - Recent Accounting Pronouncements	3 Months Ended
	Feb. 28, 2018
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	5 . Recent Accounting Pronouncements Revenue from Contracts with Customers, ASU 2014 09 five The standard requires that the transaction price received from customers be allocated to each separate and distinct performance obligation. The transaction price attributable to each separate and distinct performance obligation is then recognized as the performance obligations are satisfied. We have evaluated franchise fees and have determined that under the new standard the franchise fee is not 10 We have evaluated the impact of our franchise contributions to and subsequent expenditures from our marketing fund. We act as an agent in regard to these franchisee contributions and expenditures and as such we do not not 2014 09 November 30, 2019. On February 25, 2016, No. 2016 02, December 15, 2018. In March 2016, 2016 04, 405 20 not December 15, 2017, not Management does not not February 28, 2018

Note 6 - Income Taxes

Note 6 - Income Taxes	3 Months Ended
	Feb. 28, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	6. Income Taxes On December 22, 2017 35% 21%. first February 28, 2018, $193,000 no February 28, 2018.

Note 7 - Stockholder's Equity

Note 7 - Stockholder's Equity	3 Months Ended
	Feb. 28, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	7 . Stockholder’s Equity The Board of Directors declared a cash distribution/dividend on March 15, June 7 September 7, 2017 $0.01 April 20, July 13, October 13, 2017, December 5, 2017, $0.01 $0.01 January 12, 2018. On March 7, 2018, $0.01 March 27, 2018, April 13, 2018.

Note 8 - Contingencies

Note 8 - Contingencies	3 Months Ended
	Feb. 28, 2018
Notes to Financial Statements
Contingencies Disclosure [Text Block]	8 . Contingenc ies We are subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of such proceedings or claims cannot be predicted with certainty, management does not no

Note 2 - Units Open and Under14

Note 2 - Units Open and Under Development (Tables)	3 Months Ended
	Feb. 28, 2018
Notes Tables
Schedule of Franchisor Disclosure [Table Text Block]	Stores open: Franchisee-owned stores 80 Licensed Units 3 83 Unopened stores with Franchise Agreements 3 Total operating units and units with Franchise Agreements 86

Note 3 - Earnings Per Share (Ta

Note 3 - Earnings Per Share (Tables)	3 Months Ended
	Feb. 28, 2018
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	For the three months ended: February 28, 2018 February 28, 2017 Numerator: Net income available to common shareholders $ 100,830 $ 52,716 Denominator: Weighted average outstanding shares Basic and diluted common stock 7,263,508 7,263,508 Earnings per Share - Basic $ 0.01 $ 0.01

Note 1 - Nature of Operations (

Note 1 - Nature of Operations (Details Textual)	Feb. 28, 2018
Number of Wholly Owned Subsidiaries	3
Number of Stores	86
Number of States in which Entity Operates	23
Franchised Units [Member]
Number of Stores	80
Licensed Units [Member]
Number of Stores	3
Units Under Development [Member]
Number of Stores	3

Note 2 - Units Open and Under17

Note 2 - Units Open and Under Development - Operating Units (Details)	Feb. 28, 2018
Number of stores	86
Franchised Units [Member]
Number of stores	80
Licensed Units [Member]
Number of stores	3
Total Franchised Owned and Licensed Units [Member]
Number of stores	83
Unopened Store [Member]
Number of stores	3

Note 3 - Earnings Per Share - C

Note 3 - Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($)	3 Months Ended
	Feb. 28, 2018	Feb. 28, 2017
Net income available to common shareholders	$ 100,830	$ 52,716
Basic and diluted common stock (in shares)	7,263,508	7,263,508
Net Income per share - Basic and Diluted (in dollars per share)	$ 0.01	$ 0.01

Note 6 - Income Taxes (Details

Note 6 - Income Taxes (Details Textual) - USD ($)	Dec. 22, 2017	Feb. 28, 2018	Nov. 30, 2018
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		$ (193,000)
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%

Note 7 - Stockholder's Equity (

Note 7 - Stockholder's Equity (Details Textual) - $ / shares	Mar. 07, 2018	Jan. 12, 2018	Dec. 05, 2017	Oct. 13, 2017	Sep. 07, 2017	Jul. 13, 2017	Jun. 07, 2017	Apr. 20, 2017	Mar. 15, 2017	Feb. 28, 2018	Feb. 28, 2017
Common Stock, Dividends, Per Share, Declared										$ 0.02	$ 0.02
Quarterly Dividend [Member]
Common Stock, Dividends, Per Share, Declared			$ 0.01		$ 0.01		$ 0.01		$ 0.01
Common Stock, Dividends, Per Share, Cash Paid		$ 0.01		$ 0.01		$ 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, Declared			$ 0.01
Common Stock, Dividends, Per Share, Cash Paid		$ 0.01