Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
May 31, 2018 | Jul. 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 | May 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | May 31, 2018 | Nov. 30, 2017 |
Current Assets | ||
Cash | $ 863,933 | $ 792,655 |
Restricted cash | 600,105 | 693,425 |
Receivables | ||
Trade accounts and notes receivable (net of allowance for doubtful accounts of $17,109 in 2018 and $19,438 in 2017 ) | 59,314 | 56,342 |
Marketing fund contributions receivable from franchisees and stores | 13,060 | 12,635 |
Inventories | 8,738 | 19,761 |
Prepaid expenses and other current assets | 68,084 | 85,770 |
Total Current Assets | 1,613,234 | 1,660,588 |
Property, plant and equipment (net of accumulated depreciation of $154,662 in 2018 and $154,762 in 2017) | 1,504 | 5,515 |
Trademarks | 459,637 | 459,637 |
Goodwill | 1,493,771 | 1,493,771 |
Definite lived intangible assets (net of accumulated amortization of $123,540 in 2018 and $123,398 in 2017) | 4,105 | |
Deferred tax asset | 248,000 | 248,000 |
Total Noncurrent Assets | 2,207,017 | 2,206,923 |
Total Assets | 3,820,251 | 3,867,511 |
Current Liabilities | ||
Accounts payable | 39,024 | 43,741 |
Accrued expenses and other current liabilities | 228,216 | 243,397 |
Unexpended marketing fund contributions | 613,340 | 706,856 |
Deferred franchise fee revenue | ||
Deferred licensing revenue | 23,834 | 18,155 |
Current and Total Liabilities | 904,414 | 1,012,149 |
Stockholders' Equity | ||
Preferred shares | ||
Common stock -$.001 par value; 15,000,000 shares authorized; 8,466,953 shares issued and 7,263,508 shares outstanding as of May 31, 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 | (11,356,673) | (11,417,148) |
Total Stockholders' Equity | 2,915,837 | 2,855,362 |
Total Liabilities and Stockholders' Equity | 3,820,251 | 3,867,511 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred shares |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | May 31, 2018 | Nov. 30, 2017 |
Trade accounts and notes receivable, allowance for doubtful accounts | $ 17,109 | $ 19,438 |
Property, plant and equipment, accumulated depreciation | 154,662 | 154,762 |
Definite lived intangible assets, accumulated amortization | $ 123,540 | $ 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 |
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 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
REVENUES | ||||
Total Revenues | $ 560,471 | $ 607,877 | $ 1,060,938 | $ 1,100,598 |
OPERATING EXPENSES | ||||
Payroll and payroll-related expenses | 230,331 | 261,907 | 437,693 | 508,984 |
Occupancy | 43,052 | 43,934 | 82,891 | 89,795 |
Advertising and promotion | 1,179 | 4,442 | 2,172 | 11,712 |
Professional service fees | 16,210 | 27,253 | 77,519 | 77,574 |
Travel | 8,148 | 10,150 | 17,223 | 18,876 |
Employee benefit expense | 30,555 | 40,874 | 58,026 | 80,253 |
Depreciation and amortization | 288 | 5,170 | 440 | 10,378 |
Other | 53,181 | 78,166 | 91,641 | 114,361 |
Total Operating Expenses | 382,944 | 471,896 | 767,605 | 911,933 |
Income from operations | 177,527 | 135,981 | 293,333 | 188,665 |
Interest income | 23 | 31 | 47 | 63 |
Income before provision for income taxes | 177,550 | 136,012 | 293,380 | 188,728 |
Provision for income taxes | ||||
Current tax | 15,000 | |||
Net Income | $ 177,550 | $ 136,012 | $ 278,380 | $ 188,728 |
Earnings per share - Basic and Diluted (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.04 | $ 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 | $ 0.03 |
Royalty [Member] | ||||
REVENUES | ||||
Total Revenues | $ 425,435 | $ 447,982 | $ 810,486 | $ 848,243 |
Franchise [Member] | ||||
REVENUES | ||||
Total Revenues | 1,500 | 40,000 | 1,500 | 40,000 |
License [Member] | ||||
REVENUES | ||||
Total Revenues | $ 133,536 | $ 119,895 | $ 248,952 | $ 212,355 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Operating activities | ||
Net Income | $ 278,380 | $ 188,728 |
Adjustments to reconcile net income to cash flows (used in)/provided by operating activities: | ||
Depreciation and amortization | 440 | 10,378 |
Provision for uncollectible accounts, net of recoveries | (2,328) | (3,063) |
Proceeds from sale of property and equipment | 4,516 | |
Changes in: | ||
Trade accounts receivable and notes receivable | (644) | 3,711 |
Restricted cash | 93,320 | (33,496) |
Marketing fund contributions receivable | (425) | 1,878 |
Inventories | 10,219 | (10,611) |
Prepaid expenses and other | 17,686 | 1,777 |
Accounts payable | (4,717) | 10,077 |
Accrued liabilities | (15,181) | (71,641) |
Unexpended marketing fund contributions | (93,516) | 32,123 |
Deferred revenue | 5,679 | (56,786) |
Net Cash Provided by Operating Activities | 293,429 | 73,075 |
Investing activities | ||
Purchase of equipment | (4,915) | |
Capitalization of trademark renewals | (4,246) | (4,455) |
Net Cash Used In Investing Activities | (4,246) | (9,370) |
Financing activities | ||
Cash distributions/dividends | (217,905) | (217,906) |
Net Cash Used In Financing Activities | (217,905) | (217,906) |
Net Increase (Decrease) in Cash | 71,278 | (154,201) |
Cash, Beginning of Period | 792,655 | 907,116 |
Cash, End of Period | 863,933 | 752,915 |
Supplemental disclosure of cash flow information: | ||
Interest paid | ||
Income taxes paid | $ 2,000 | $ 15,801 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 6 Months Ended |
May 31, 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 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, 2018, 80 3 23 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. 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, 2017 February 26, 2018. not |
Note 2 - Units Open and Under D
Note 2 - Units Open and Under Development | 6 Months Ended |
May 31, 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 May 31, 2018 Stores open: Franchisee-owned stores 80 Licensed Units 3 83 Unopened stores with Franchise Agreements 2 Total operating units and units with Franchise Agreements 85 |
Note 3 - Earnings Per Share
Note 3 - Earnings Per Share | 6 Months Ended |
May 31, 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 May 31, For the six months ended May 31, 2018 2017 2018 2017 Numerator: Net income available to common shareholders $ 177,550 $ 136,012 $ 278,380 $ 188,728 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 $ 0.04 $ 0.03 There were no three six May 31, 2018 2017. |
Note 4 - Goodwill and Other Int
Note 4 - Goodwill and Other Intangible Assets | 6 Months Ended |
May 31, 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 May 31, 2018, not |
Note 5 - Recent Accounting Pron
Note 5 - Recent Accounting Pronouncements | 6 Months Ended |
May 31, 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. October 1, 2018. No. 2016 02 $500,000 October 1, 2018. 4% In March 2016, 2016 04, 405 20 not December 15, 2017, not Management does not not May 31, 2018 |
Note 6 - Stockholder's Equity
Note 6 - Stockholder's Equity | 6 Months Ended |
May 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 6 . 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. March 7, 2018, $0.01 March 27, 2018 April 13, 2018. On June 4, 2018 $0.01 June 19, 2018 July 6, 2018 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 7 - Subsequent Event
Note 7 - Subsequent Event | 6 Months Ended |
May 31, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 7. On June 13, 2018 sixty-six 66 October 1, 2018 March 31, 2024. 7,144 5,298 |
Note 2 - Units Open and Under13
Note 2 - Units Open and Under Development (Tables) | 6 Months Ended |
May 31, 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 2 Total operating units and units with Franchise Agreements 85 |
Note 3 - Earnings Per Share (Ta
Note 3 - Earnings Per Share (Tables) | 6 Months Ended |
May 31, 2018 | |
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, 2018 2017 2018 2017 Numerator: Net income available to common shareholders $ 177,550 $ 136,012 $ 278,380 $ 188,728 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 $ 0.04 $ 0.03 |
Note 1 - Nature of Operations (
Note 1 - Nature of Operations (Details Textual) | May 31, 2018 |
Number of Wholly Owned Subsidiaries | 3 |
Number of Stores | 85 |
Number of States in which Entity Operates | 23 |
Franchised Units [Member] | |
Number of Stores | 80 |
Licensed Units [Member] | |
Number of Stores | 3 |
Note 2 - Units Open and Under16
Note 2 - Units Open and Under Development - Operating Units (Details) | May 31, 2018 |
Number of stores | 85 |
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 | 2 |
Note 3 - Earnings Per Share (De
Note 3 - Earnings Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Weighted Average Number Diluted Shares Outstanding Adjustment, Total | 0 | 0 | 0 | 0 |
Note 3 - Earnings Per Share - C
Note 3 - Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 | |
Net income available to common shareholders | $ 177,550 | $ 136,012 | $ 278,380 | $ 188,728 |
Basic and diluted (in shares) | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 |
Earnings per share - Basic and Diluted (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.04 | $ 0.03 |
Note 5 - Recent Accounting Pr19
Note 5 - Recent Accounting Pronouncements (Details Textual) - USD ($) | Oct. 01, 2018 | May 31, 2018 |
Lessee, Operating Lease, Discount Rate | 4.00% | |
Accounting Standards Update 2016-02 [Member] | Scenario, Forecast [Member] | ||
Operating Lease, Right-of-Use Asset | $ 500,000 | |
Operating Lease, Liability, Total | $ 500,000 |
Note 6 - Stockholder's Equity (
Note 6 - Stockholder's Equity (Details Textual) - $ / shares | Jun. 04, 2018 | Apr. 13, 2018 | Mar. 07, 2018 | Jan. 12, 2018 | Dec. 05, 2017 | Oct. 13, 2017 | Sep. 07, 2017 | Jul. 13, 2017 | Jun. 07, 2017 | May 22, 2017 | Apr. 20, 2017 | Mar. 15, 2017 | Aug. 18, 2015 | May 13, 2013 | May 06, 2013 | May 31, 2018 | May 31, 2017 | May 31, 2018 | May 31, 2017 |
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.01 | $ 0.03 | $ 0.03 | |||||||||||||||
Preferred Stock Dividends Number of Rights Declared | 1 | ||||||||||||||||||
Preferred Stock Dividends Number of Rights Issued | 1 | ||||||||||||||||||
Preferred Stock Dividends Number of Rights Minimum Percent of Common Stock that must be Acquired to Make Rights Exercisable | 15.00% | ||||||||||||||||||
Preferred Stock Dividends Number of Rights Minimum Percent of Common Stock that Must be Acquired to Make Rights Exercisable, Institutional Investors | 20.00% | ||||||||||||||||||
Right to Purchase Series A Preferred Stock [Member] | |||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.001 | ||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.90 | ||||||||||||||||||
Class of Warrant or Right, Term | 7 years | 5 years | 3 years | ||||||||||||||||
Quarterly Dividend [Member] | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||||||
Dividends Payable, Date of Record | Mar. 27, 2018 | ||||||||||||||||||
Quarterly Dividend [Member] | Subsequent Event [Member] | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | ||||||||||||||||||
Dividends Payable, Date of Record | Jun. 19, 2018 | ||||||||||||||||||
Dividends Payable, Date to be Paid | Jul. 6, 2018 | ||||||||||||||||||
Special Cash Distribution [Member] | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | ||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 |
Note 7 - Subsequent Event (Deta
Note 7 - Subsequent Event (Details Textual) - Lease Between BAB Systems, Inc. and TR Deerfield Office LLC [Member] - ft² | Oct. 01, 2018 | Jun. 13, 2018 |
Scenario, Forecast [Member] | ||
Area of Real Estate Property | 5,298 | |
Subsequent Event [Member] | ||
Lessee, Operating Lease, Term of Contract | 5 years 180 days | |
Area of Real Estate Property | 7,144 |