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 |