Rocky Mountain Chocolate Factory (RMCF) 10-Q 15 Jul 15 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	May. 31, 2015	Jun. 30, 2015
Entity Registrant Name	Rocky Mountain Chocolate Factory, Inc.
Entity Central Index Key	1,616,262
Current Fiscal Year End Date	--02-29
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)		5,943,351
Document Type	10-Q
Document Period End Date	May 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	May. 31, 2015	May. 31, 2014
Revenues
Sales	$ 7,736,163	$ 7,851,051
Franchise and royalty fees	2,627,859	2,471,155
Total revenues	10,364,022	10,322,206
Costs and Expenses
Cost of sales, exclusive of depreciation and amortization expense of $101,890 and $89,628, respectively	5,163,890	4,833,471
Franchise costs	603,974	545,558
Sales and marketing	635,591	646,067
General and administrative	1,328,880	1,411,433
Retail operating	855,926	1,039,954
Depreciation and amortization	$ 364,850	374,412
Restructuring and acquisition related charges		124,551
Total costs and expenses	$ 8,953,111	8,975,446
Income from Operations	1,410,911	1,346,760
Other Income (Expense)
Interest expense	(58,890)	(61,333)
Interest income	13,638	12,509
Other Income (Expense), net	(45,252)	(48,824)
Income Before Income Taxes	1,365,659	1,297,936
Income Tax Provision	432,300	360,664
Consolidated Net Income	933,359	937,272
Less: Net income attributable to non-controlling interest	170,400	225,938
Net Income attributable to RMCF	$ 762,959	$ 711,334
Basic Earnings per Common Share (in dollars per share)	$ 0.13	$ 0.12
Diluted Earnings per Common Share (in dollars per share)	$ 0.12	$ 0.11
Weighted Average Common Shares Outstanding - Basic (in shares)	5,979,559	6,159,086
Dilutive Effect of Stock Options and Restricted Stock Units (in shares)	235,431	329,192
Weighted Average Common Shares Outstanding - Diluted (in shares)	6,214,990	6,488,278

Consolidated Statements of Inc3

Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($)	3 Months Ended
	May. 31, 2015	May. 31, 2014
Cost of sales, depreciation and amortization	$ 101,890	$ 89,628

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	May. 31, 2015	Feb. 28, 2015
Undesignated Series [Member]
Stockholders’ Equity
Preferred Stock	$ 0	$ 0
Common Stock, before Reorganization [Member]
Stockholders’ Equity
Common stock, $.03 par value, 100,000,000 shares authorized, 0 and 6,012,799 issued and outstanding, respectively		180,384
Common Stock, after Reorganization [Member]
Stockholders’ Equity
Common stock, $.03 par value, 100,000,000 shares authorized, 0 and 6,012,799 issued and outstanding, respectively	6,025
Cash and cash equivalents	8,368,298	7,157,371
Accounts receivable, less allowance for doubtful accounts of $733,028 and $696,798, respectively	3,488,663	4,291,470
Notes receivable, current portion, less current portion of the valuation allowance of $2,262 and $3,762, respectively	312,997	359,493
Refundable income taxes	0	172,945
Inventories, less reserve for obsolete inventory of $210,435 and $197,658, respectively	3,868,711	4,785,376
Deferred income taxes	637,443	572,957
Other	407,148	318,275
Total current assets	17,083,260	17,657,887
Property and Equipment, Net	6,663,152	6,797,536
Notes receivable, less current portion and valuation allowance of $30,000 and $28,500, respectively	625,577	668,302
Goodwill, net	2,977,473	2,977,473
Franchise rights, net	5,362,785	5,439,460
Intangible assets, net	435,151	440,428
Other	144,757	157,127
Total other assets	9,545,743	9,682,790
Total Assets	33,292,155	34,138,213
Current maturities of long term debt	1,218,525	1,208,888
Accounts payable	1,512,058	1,675,746
Accrued salaries and wages	659,962	819,184
Other accrued expenses	3,339,469	2,910,777
Dividend payable	713,838	721,536
Deferred income	820,681	951,241
Total current liabilities	8,264,533	8,287,372
Long-Term Debt, Less Current Maturities	4,774,903	5,083,479
Deferred Income Taxes	$ 998,809	1,029,507
Commitments and Contingencies
Preferred Stock	$ 0	0
Additional paid-in capital	7,607,648	7,163,092
Retained earnings	11,573,830	11,524,708
Non-controlling interest in equity of subsidiary	1,100,766	869,671
Treasury stock, 75,968 shares and 0 shares, at cost	(1,034,359)	0
Total stockholders’ equity	19,253,910	19,737,855
Total Liabilities and Stockholders’ Equity	$ 33,292,155	$ 34,138,213

Consolidated Balance Sheets (C5

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	May. 31, 2015	Feb. 28, 2015
Series A Preferred Stock [Member]
Preferred stock, authorized (in shares)	50,000	50,000
Undesignated Series [Member]
Preferred stock, authorized (in shares)	200,000	200,000
Common Stock, before Reorganization [Member]
Common stock, par value (in dollars per share)		$ 0.03
Common stock, authorized (in shares)		100,000,000
Common stock issued (in shares)		6,012,799
Common stock, outstanding (in shares)		6,012,799
Common Stock, after Reorganization [Member]
Common stock, par value (in dollars per share)	$ 0.001
Common stock, authorized (in shares)	46,000,000
Common stock issued (in shares)	6,024,619
Common stock, outstanding (in shares)	6,024,619
Accounts receivable, allowance for doubtful accounts	$ 733,028	$ 696,798
Current portion of the valuation allowance	2,262	3,762
Inventories, reserve	210,435	197,658
Notes receivable, valuation allowance	$ 30,000	$ 28,500
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	250,000	250,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.03
Treasury stock, shares (in shares)	75,968	0

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	May. 31, 2015	May. 31, 2014
Cash Flows From Operating Activities
Net income	$ 933,359	$ 937,272
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	364,850	374,412
Provision for loss on accounts and notes receivable	36,000	42,600
Provision for obsolete inventory	10,856	11,042
Loss (gain) on sale of property and equipment	64,521	(4,902)
Expense recorded for stock based compensation	321,033	296,772
Deferred income taxes	(95,184)	(70,165)
Changes in operating assets and liabilities:
Accounts receivable	766,824	1,337,281
Inventories	1,111,144	355,877
Other current assets	(91,868)	(59,475)
Accounts payable	(369,023)	129,990
Accrued liabilities	442,415	347,000
Deferred income	(129,681)	(19,633)
Net cash provided by operating activities	$ 3,365,246	3,678,071
Cash Flows From Investing Activities
Addition to notes receivable		(165,246)
Proceeds received on notes receivable	$ 89,204	$ 104,961
Purchase of intangible assets	(8,204)
Purchases of property and equipment	(192,182)	$ (119,193)
Other	1,838	12,838
Net cash used in` investing activities	(109,344)	$ (166,640)
Cash Flows From Financing Activities
Payments on long-term debt	(298,939)
Repurchase of common stock	(1,034,359)
Tax benefit of stock awards	9,859	$ 182,080
Dividends paid	$ (721,536)	(675,423)
Issuance of common stock, net		(2,300)
Proceeds from issuance of common stock in subsidiary		919,456
Net cash provided by (used in) financing activities	$ (2,044,975)	423,813
Net Increase in Cash and Cash Equivalents	1,210,927	3,935,244
Cash and Cash Equivalents, Beginning of Period	7,157,371	5,859,729
Cash and Cash Equivalents, End of Period	$ 8,368,298	$ 9,794,973

Note 1 - Nature of Operations a

Note 1 - Nature of Operations and Basis of Presentation	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Business Description and Accounting Policies [Text Block]	NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations The accompanying consolidated financial statements include the accounts of Rocky Mountain Chocolate Factory, Inc., a Delaware corporation, its wholly-owned subsidiaries, Rocky Mountain Chocolate Factory, Inc., a Colorado corporation, and Aspen Leaf Yogurt, LLC (“ALY”), and its 39%-owned subsidiary, U-Swirl, Inc. (“U-Swirl”) of which, Rocky Mountain Chocolate Factory, Inc. has financial and operational control (collectively, the “Company”). All intercompany balances and transactions have been eliminated in consolidation. The Company is an international franchisor, confectionery manufacturer and retail operator in the United States, Canada, Japan, South Korea and the United Arab Emirates. Founded in 1981, the Company is headquartered in Durango, Colorado and manufactures an extensive line of premium chocolate candies and other confectionery products. U-Swirl franchises and operates soft-serve frozen yogurt stores. The Company also sells its candy in selected locations outside of its system of retail stores and licenses the use of its brand with certain consumer products. Effective March 1, 2015, the Company was reorganized to create a holding company structure. The operating subsidiary with the same name, Rocky Mountain Chocolate Factory, Inc., a Colorado corporation (“RMCF”), which was previously the public company, became a wholly-owned subsidiary of a newly formed entity, Rocky Mountain Chocolate Factory, Inc., a Delaware corporation (“Newco”), and all of the outstanding shares of common stock of RMCF, par value $0.03 per share, were exchanged on a one-for-one basis for shares of common stock, par value $0.001, of Newco. The new holding company began trading on March 2, 2015 on the NASDAQ Global Market under the symbol “RMCF”, which was the same symbol used by RMCF prior to the holding company reorganization. In January 2013, through the Company’s wholly-owned subsidiaries, including ALY, the Company entered into two agreements to sell all of the assets of its ALY frozen yogurt stores, along with its interest in the self-serve frozen yogurt franchises and retail units branded as “Yogurtini” which the Company also acquired in January 2013, to U-Swirl, a publicly traded company (OTCQB: SWRL), in exchange for a 60% controlling equity interest in U-Swirl. Upon completion of these transactions, RMCF ceased to directly operate any Company-owned ALY locations or sell and support frozen yogurt franchise locations, which is now being supported by U-Swirl. As of May 31, 2015, the Company held approximately 39% of U-Swirl’s outstanding common stock. Additionally, RMCF has the right to acquire approximately 27,146,000 shares of U-Swirl’s common stock through the conversion of outstanding debt owed by U-Swirl to RMCF. If RMCF exercised this conversion right, RMCF would hold approximately 72% of U-Swirl’s common stock. The Company entered into the promissory note used to finance the acquisitions of U-Swirl and entered into a loan and security agreement with U-Swirl. The loan and security agreement between the Company and U-Swirl is subject to various financial and leverage covenants. U-Swirl was not compliant with the covenants at May 31, 2015. The loan covenants required U-Swirl to maintain consolidated adjusted EBITDA of $1,804,000 for the twelve months ended May 31, 2015. At May 31, 2015 U-Swirl had reported $1,532,000 of adjusted EBITDA. In the event of default, we may charge interest on all amounts due under the loan agreement with U-Swirl at the default rate of 15% per annum, accelerate payment of all amounts due under the Loan Agreement, and foreclose on our security interest. At May 31, 2015 we believe that the conversion of the loan into preferred stock as settlement of the obligation would result in 68% more preferred shares issued when compared to the amount issuable if U-Swirl was compliant with the loan covenants. The U-Swirl Board of Directors is composed solely of Board members also serving the Rocky Mountain Chocolate Factory, Inc. Board of Directors. Between fiscal year 2014 and 2016, U-Swirl acquired the franchise rights of frozen yogurt stores branded as “Cherryberry”, “Yogli Mogli” and “Fuzzy Peach”, and U-Swirl operates self-serve frozen yogurt cafes under the names “U-Swirl,” “Yogurtini,” “CherryBerry,” “Josie’s Frozen Yogurt,” “Yogli Mogli Frozen Yogurt,” “Fuzzy Peach Frozen Yogurt,” “Let’s Yo!,” and “Aspen Leaf Yogurt”. The Company’s revenues are currently derived from three principal sources: sales to franchisees and others of chocolates and other confectionery products manufactured by the Company; the collection of initial franchise fees, royalty and marketing fees from franchisees’ sales; and sales at Company-owned stores of chocolates, frozen yogurt, and other confectionery products. The following table summarizes the number of stores operating under the Rocky Mountain Chocolate Factory brand and its subsidiaries at May 31, 2015: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 4 4 Franchise stores – Domestic stores 3 193 196 Franchise stores – Domestic kiosks - 5 5 International License Stores 1 74 75 Cold Stone Creamery – co-branded 7 72 79 U-Swirl Stores (Including all associated brands) Company-owned stores - 6 6 Company-owned stores – co-branded - 3 3 Franchise stores – Domestic stores * 225 225 Franchise stores – Domestic – co-branded * 18 18 International License Stores 2 8 10 Total 13 608 621 *U-Swirl cafés and the brands franchised by U-Swirl have historically utilized a development area sales model. The result is that many areas are under development and the rights to open cafés within the development areas have been established, but there is no assurance that any individual development area will result in a determinable number of café openings. Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and Securities and Exchange Commission regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net income, working capital or equity previously reported. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three months ended May 31, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2015. New Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact that the adoption of ASU 2015-03 may have on our consolidated financial statements or disclosures. In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and is to be applied retrospectively. Early adoption is permitted for years beginning after December 15, 2016. The Company is currently evaluating the new standard.

Note 2 - Earnings Per Share

Note 2 - Earnings Per Share	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Earnings Per Share [Text Block]	NOTE 2 - EARNINGS PER SHARE Basic earnings per share is calculated using the weighted-average number of common shares outstanding. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through stock options and restricted stock units. For the three months ended May 31, 2015 and 2014, 12,936 and 12,936 stock options were excluded, respectively, from the computation of earnings per share because their effect would have been anti-dilutive. Restricted stock units become dilutive within the period granted and remain dilutive until the units vest and are issued as common stock.

Note 3 - Inventories

Note 3 - Inventories	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE 3 – INVENTORIES The Company held the following inventory at May 31, 2015 and February 28, 2015: May 31, 2015 February 28, 2015 Ingredients and supplies $ 2,404,341 $ 2,755,232 Finished candy 1,583,220 2,130,133 U-Swirl food and packaging 91,585 97,669 Reserve for slow moving inventory (210,435 ) (197,658 ) Total inventories $ 3,868,711 $ 4,785,376

Note 4 - Property and Equipment

Note 4 - Property and Equipment, Net	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Property, Plant and Equipment Disclosure [Text Block]	NOTE 4 - PROPERTY AND EQUIPMENT, NET Property and equipment at May 31, 2015 and February 28, 2015 consists of the following: May 31, 2015 February 28, 2015 Land $ 513,618 $ 513,618 Building 4,774,825 4,774,825 Machinery and equipment 10,199,845 10,120,865 Furniture and fixtures 1,231,892 1,224,433 Leasehold improvements 1,971,041 2,056,244 Transportation equipment 439,327 427,727 Asset impairment (290,640 ) (290,640 ) 18,839,908 18,827,072 Less accumulated depreciation (12,176,756 ) (12,029,536 ) Property and equipment, net $ 6,663,152 $ 6,797,536

Note 5 - Stockholders' Equity

Note 5 - Stockholders' Equity	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE 5 - STOCKHOLDERS’ EQUITY Cash Dividend The Company paid a quarterly cash dividend of $0.12 per common share on March 13, 2015 to stockholders of record on February 27, 2015. The Company paid a quarterly cash dividend of $0.12 per share of common stock on June 12, 2015 to stockholders of record on June 2, 2015. Future declaration of dividends will depend on, among other things, the Company's results of operations, capital requirements, financial condition and on such other factors as the Company's Board of Directors may in its discretion consider relevant and in the best long term interest of the Company’s stockholders. Stock Repurchases On July 15, 2014, the Company publicly announced a plan to repurchase up to $3.0 million of its common stock in the open market or in private transactions, whenever deemed appropriate by management. On January 13, 2015, the Company announced a plan to purchase up to an additional $2,058,000 of its common stock under the repurchase plan, and on May 21, 2015, the Company announced a further increase to the repurchase plan by authorizing the purchase of up to an additional $2,090,000 of its common stock under the repurchase plan. During the three months ended May 31, 2015, the Company repurchased 75,968 shares under the repurchase plan at an average price of $13.62 per share. As of May 31, 2015, approximately $2,986,000 remains available under the repurchase plan for further stock repurchases. Stock-Based Compensation At May 31, 2015, the Company had stock-based compensation plans for employees and non-employee directors that authorized the granting of stock awards, including stock options and restricted stock units. The Company recognized $321,033 of stock-based compensation expense during the three months ended May 31, 2015 compared with $296,772 during the three months ended May 31, 2014. Compensation costs related to stock-based compensation are generally amortized over the vesting period. The following table summarizes stock option transactions for common stock during the three months ended May 31, 2015 and 2014: Three Months Ended May 31, 2015 2014 Outstanding stock options as of February 28: 12,936 155,880 Granted - - Exercised - (133,240 ) Cancelled/forfeited - - Outstanding stock options as of May 31: 12,936 22,640 Weighted average exercise price $ 14.70 $ 11.57 Weighted average remaining contractual term (in years) 0.80 1.06 The following table summarizes non-vested restricted stock unit transactions for common stock during the three months ended May 31, 2015 and 2014: Three Months Ended May 31, 2015 2014 Outstanding non-vested restricted stock units as of February 28: 237,641 295,040 Granted - - Vested (7,820 ) (7,820 ) Cancelled/forfeited - - Outstanding non-vested restricted stock units as of May 31: 229,821 287,220 Weighted average grant date fair value $ 12.22 $ 12.16 Weighted average remaining vesting period (in years) 3.96 4.84 The Company issued 4,000 fully vested, unrestricted shares of stock to non-employee directors during the three months ended May 31, 2015 and 2014. In connection with these non-employee director stock issuances, the Company recognized $61,040 and $47,480 of stock-based compensation expense during the three months ended May 31, 2015 and 2014, respectively. During the three months ended May 31, 2015, the Company recognized $160,493 of stock-based compensation expense related to non-vested, non-forfeited restricted stock unit grants. The restricted stock units generally vest between 17% and 20% annually over a period of five to six years. Total unrecognized stock-based compensation expense of non-vested, non-forfeited restricted stock units, as of May 31, 2015, was $2,306,526, which is expected to be recognized over the weighted average period of 4.0 years. The Company recognized $99,500 of stock-based compensation expense attributable to U-Swirl during the three months ended May 31, 2015 compared with $82,449 recognized during the three months ended May 31, 2014.

Note 6 - Supplemental Cash Flow

Note 6 - Supplemental Cash Flow Information	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	NOTE 6 – SUPPLEMENTAL CASH FLOW INFORMATION Three Months Ended May 31, 2015 2014 Cash paid (received) for: Interest, net $ 46,797 $ 47,093 Income taxes 39,745 57,037 Non-Cash Operating Activities Accrued Inventory 205,335 173,245 Non-Cash Financing Activities Dividend payable $ 713,838 $ 682,090

Note 7 - Operating Segments

Note 7 - Operating Segments	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	NOTE 7 - OPERATING SEGMENTS The Company classifies its business interests into five reportable segments: Franchising, Manufacturing, Retail Stores, U-Swirl, Inc. operations and Other. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 to the Company’s financial statements included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2015. The Company evaluates performance and allocates resources based on operating contribution, which excludes unallocated Three Months Ended May 31, 2015 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,550,441 $ 6,622,368 $ 380,658 $ 2,109,797 $ - $ 10,663,264 Intersegment revenues (1,423 ) (297,819 ) - - - (299,242 ) Revenue from external customers 1,549,018 6,324,549 380,658 2,109,797 - 10,364,022 Segment profit (loss) 756,913 1,399,604 (41,030 ) 264,416 (1,014,244 ) 1,365,659 Total assets 1,224,822 10,471,309 1,095,173 12,948,323 7,552,528 33,292,155 Capital expenditures - 146,071 - 16,198 29,913 192,182 Total depreciation & amortization 10,287 102,516 5,896 203,177 42,974 364,850 Three Months Ended May 31, 2014 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,448,264 $ 6,190,662 $ 502,791 $ 2,501,692 $ - $ 10,643,409 Intersegment revenues (613 ) (320,590 ) - - - (321,203 ) Revenue from external customers 1,447,651 5,870,072 502,791 2,501,692 - 10,322,206 Segment profit (loss) 636,183 1,481,664 (67,115 ) 200,360 (953,156 ) 1,297,936 Total assets 1,256,360 11,103,741 1,254,183 17,345,621 8,638,891 39,598,796 Capital expenditures - 61,105 16,088 39,673 2,327 119,193 Total depreciation & amortization 10,049 90,160 9,449 226,100 38,654 374,412 Revenue from one customer of the Company’s Manufacturing segment represented approximately $2.0 million of the Company’s revenues from external customers during the three months ended May 31, 2015 compared to $1.6 million during the three months ended May 31, 2014.

Note 8 - Goodwill and Intangibl

Note 8 - Goodwill and Intangible Assets	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	NOTE 8 – GOODWILL AND INTANGIBLE ASSETS Intangible assets at May 31, 2015 and February 28, 2015 consist of the following: May 31, 2015 February 28, 2015 Amortization Gross Carrying Accumulated Gross Carrying Accumulated Intangible assets subject to amortization Store design 10 $ 220,778 $ 208,528 $ 220,778 $ 208,152 Packaging licenses 3 - 5 120,830 120,830 120,830 120,830 Packaging design 10 430,973 430,973 430,973 430,973 Trademark/Non-competition agreements 5 - 20 459,340 36,439 459,340 31,538 Franchise Rights 20 5,858,496 495,711 5,850,290 410,830 Total 7,090,417 1,292,481 7,082,211 1,202,323 Intangible assets not subject to amortization Franchising segment- Company stores goodwill 1,122,328 267,020 1,122,328 267,020 Franchising goodwill 2,202,529 197,682 2,202,529 197,682 Manufacturing segment-Goodwill 295,000 197,682 295,000 197,682 Trademark 20,000 - 20,000 - Total 3,639,857 662,384 3,639,857 662,384 Total intangible assets $ 10,730,274 $ 1,954,865 $ 10,722,068 $ 1,864,707 Effective March 1, 2002, under Accounting Standards Codification Topic 350, all goodwill with indefinite lives is no longer subject to amortization. Accumulated amortization related to intangible assets not subject to amortization is a result of amortization expense related to indefinite life goodwill incurred prior to March 1, 2002. Amortization expense related to intangible assets totaled $93,150 and $91,930 during the three months ended May 31, 2015 and 2014, respectively. At May 31, 2015, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following: 2016 $ 280,015 2017 402,282 2018 418,382 2019 424,812 2020 411,655 Thereafter 3,860,790 Total $ 5,797,936

Note 9 - Related Party Transact

Note 9 - Related Party Transactions	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE 9 – RELATED PARTY TRANSACTIONS Our President and Chief Executive Officer has members of his immediate family with ownership interests in retail marketing businesses. These businesses have, on occasion, provided services to the Company and may provide services in the future. For the three months ended May 31, 2015, the Company paid $7,581 and no amount was recorded to accounts payable that related to these businesses. Transactions with these businesses have been immaterial to our results of operations.

Note 10 - Restructuring and Acq

Note 10 - Restructuring and Acquisition Related Charges	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	NOTE 10 – RESTRUCTURING AND ACQUISITION RELATED CHARGES On January 17, 2014, U-Swirl entered into an Asset Purchase Agreement with CherryBerry, which was the franchisor of self-serve frozen yogurt retail stores branded as “CherryBerry.” Pursuant to the CherryBerry Purchase Agreement, U-Swirl purchased certain assets of CherryBerry used in its business of franchising frozen yogurt stores, including all of its franchise rights and one company-owned store. On January 17, 2014, U-Swirl also entered into an Asset Purchase Agreement with Yogli Mogli, which was the franchisor of self-serve frozen yogurt retail stores branded as “Yogli Mogli”. Pursuant to the Yogli Mogli Purchase Agreement, U-Swirl purchased certain assets of Yogli Mogli used in its business of franchising frozen yogurt stores, including all of its franchise rights and four company-owned stores. On February 20, 2014, U-Swirl entered into an Asset Purchase Agreement to acquire the business assets of Fuzzy Peach Franchising, LLC. The acquisition of all intellectual property and worldwide franchise and license rights includes the rights associated with 17 Fuzzy Peach Frozen Yogurt stores. Associated with these transactions, the Company recorded net restructuring charges of $124,551 during the three months ended May 31, 2014. Restructuring and acquisition charges incurred were comprised of the following for the three months ended May 31: 2014 Professional fees $ 104,876 Severance/transitional compensation 16,550 Other 3,125 Total $ 124,551 The company did not record any restructuring charges in the three months ended May 31, 2015.

Note 11 - Contingencies

Note 11 - Contingencies	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Contingencies Disclosure [Text Block]	NOTE 11- CONTINGENCIES The CherryBerry selling parties entered into a one-year lock-up agreement with respect to the 4,000,000 shares of the U-Swirl common stock (the “CB Shares”) payable at the closing of the CherryBerry Acquisition. The CB Shares were issued to the selling parties in February 2015. Following expiration of the lock-up period, if any of the CherryBerry selling parties desire to sell their CB Shares, they must first offer such shares to the Company, at a price equal to the average of the market prices at the time of sale. If the proceeds from the sale of any of the CB Shares is less than $0.50 per share and the CherryBerry selling parties comply with other terms of the agreement, the Company has agreed to pay a shortfall payment. If the Company was required to pay the shortfall payment at May 31, 2015, the shortfall payment would approximate $480,000. The Company determined the likelihood of incurring the liability to be less than probable and has not recorded a contingent liability at May 31, 2015.

Note 12 - Subsequent Events

Note 12 - Subsequent Events	3 Months Ended
	May. 31, 2015
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 12 – SUBSEQUENT EVENTS Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no subsequent events have occurred that would require recognition or disclosure in the financial statements.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	May. 31, 2015
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and Securities and Exchange Commission regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no effect on net income, working capital or equity previously reported. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three months ended May 31, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 2015.
New Accounting Pronouncements, Policy [Policy Text Block]	New Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in ASU 2015-03. ASU 2015-03 will be effective for fiscal years beginning after December 15, 2015. We are currently evaluating the impact that the adoption of ASU 2015-03 may have on our consolidated financial statements or disclosures. In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and is to be applied retrospectively. Early adoption is permitted for years beginning after December 15, 2016. The Company is currently evaluating the new standard.

Note 1 - Nature of Operations20

Note 1 - Nature of Operations and Basis of Presentation (Tables)	3 Months Ended
	May. 31, 2015
Notes Tables
Number of Stores [Table Text Block]	Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 4 4 Franchise stores – Domestic stores 3 193 196 Franchise stores – Domestic kiosks - 5 5 International License Stores 1 74 75 Cold Stone Creamery – co-branded 7 72 79 U-Swirl Stores (Including all associated brands) Company-owned stores - 6 6 Company-owned stores – co-branded - 3 3 Franchise stores – Domestic stores * 225 225 Franchise stores – Domestic – co-branded * 18 18 International License Stores 2 8 10 Total 13 608 621

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	3 Months Ended
	May. 31, 2015
Notes Tables
Schedule of Inventory, Current [Table Text Block]	May 31, 2015 February 28, 2015 Ingredients and supplies $ 2,404,341 $ 2,755,232 Finished candy 1,583,220 2,130,133 U-Swirl food and packaging 91,585 97,669 Reserve for slow moving inventory (210,435 ) (197,658 ) Total inventories $ 3,868,711 $ 4,785,376

Note 4 - Property and Equipme22

Note 4 - Property and Equipment, Net (Tables)	3 Months Ended
	May. 31, 2015
Notes Tables
Property, Plant and Equipment [Table Text Block]	May 31, 2015 February 28, 2015 Land $ 513,618 $ 513,618 Building 4,774,825 4,774,825 Machinery and equipment 10,199,845 10,120,865 Furniture and fixtures 1,231,892 1,224,433 Leasehold improvements 1,971,041 2,056,244 Transportation equipment 439,327 427,727 Asset impairment (290,640 ) (290,640 ) 18,839,908 18,827,072 Less accumulated depreciation (12,176,756 ) (12,029,536 ) Property and equipment, net $ 6,663,152 $ 6,797,536

Note 5 - Stockholders' Equity (

Note 5 - Stockholders' Equity (Tables)	3 Months Ended
	May. 31, 2015
Notes Tables
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]	Three Months Ended May 31, 2015 2014 Outstanding stock options as of February 28: 12,936 155,880 Granted - - Exercised - (133,240 ) Cancelled/forfeited - - Outstanding stock options as of May 31: 12,936 22,640 Weighted average exercise price $ 14.70 $ 11.57 Weighted average remaining contractual term (in years) 0.80 1.06
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Three Months Ended May 31, 2015 2014 Outstanding non-vested restricted stock units as of February 28: 237,641 295,040 Granted - - Vested (7,820 ) (7,820 ) Cancelled/forfeited - - Outstanding non-vested restricted stock units as of May 31: 229,821 287,220 Weighted average grant date fair value $ 12.22 $ 12.16 Weighted average remaining vesting period (in years) 3.96 4.84

Note 6 - Supplemental Cash Fl24

Note 6 - Supplemental Cash Flow Information (Tables)	3 Months Ended
	May. 31, 2015
Notes Tables
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	Three Months Ended May 31, 2015 2014 Cash paid (received) for: Interest, net $ 46,797 $ 47,093 Income taxes 39,745 57,037 Non-Cash Operating Activities Accrued Inventory 205,335 173,245 Non-Cash Financing Activities Dividend payable $ 713,838 $ 682,090

Note 7 - Operating Segments (Ta

Note 7 - Operating Segments (Tables)	3 Months Ended
	May. 31, 2015
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended May 31, 2014 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,448,264 $ 6,190,662 $ 502,791 $ 2,501,692 $ - $ 10,643,409 Intersegment revenues (613 ) (320,590 ) - - - (321,203 ) Revenue from external customers 1,447,651 5,870,072 502,791 2,501,692 - 10,322,206 Segment profit (loss) 636,183 1,481,664 (67,115 ) 200,360 (953,156 ) 1,297,936 Total assets 1,256,360 11,103,741 1,254,183 17,345,621 8,638,891 39,598,796 Capital expenditures - 61,105 16,088 39,673 2,327 119,193 Total depreciation & amortization 10,049 90,160 9,449 226,100 38,654 374,412 Three Months Ended May 31, 2015 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,550,441 $ 6,622,368 $ 380,658 $ 2,109,797 $ - $ 10,663,264 Intersegment revenues (1,423 ) (297,819 ) - - - (299,242 ) Revenue from external customers 1,549,018 6,324,549 380,658 2,109,797 - 10,364,022 Segment profit (loss) 756,913 1,399,604 (41,030 ) 264,416 (1,014,244 ) 1,365,659 Total assets 1,224,822 10,471,309 1,095,173 12,948,323 7,552,528 33,292,155 Capital expenditures - 146,071 - 16,198 29,913 192,182 Total depreciation & amortization 10,287 102,516 5,896 203,177 42,974 364,850

Note 8 - Goodwill and Intangi26

Note 8 - Goodwill and Intangible Assets (Tables)	3 Months Ended
	May. 31, 2015
Notes Tables
Schedule of Intangible Assets and Goodwill [Table Text Block]	May 31, 2015 February 28, 2015 Amortization Gross Carrying Accumulated Gross Carrying Accumulated Intangible assets subject to amortization Store design 10 $ 220,778 $ 208,528 $ 220,778 $ 208,152 Packaging licenses 3 - 5 120,830 120,830 120,830 120,830 Packaging design 10 430,973 430,973 430,973 430,973 Trademark/Non-competition agreements 5 - 20 459,340 36,439 459,340 31,538 Franchise Rights 20 5,858,496 495,711 5,850,290 410,830 Total 7,090,417 1,292,481 7,082,211 1,202,323 Intangible assets not subject to amortization Franchising segment- Company stores goodwill 1,122,328 267,020 1,122,328 267,020 Franchising goodwill 2,202,529 197,682 2,202,529 197,682 Manufacturing segment-Goodwill 295,000 197,682 295,000 197,682 Trademark 20,000 - 20,000 - Total 3,639,857 662,384 3,639,857 662,384 Total intangible assets $ 10,730,274 $ 1,954,865 $ 10,722,068 $ 1,864,707
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]	2016 $ 280,015 2017 402,282 2018 418,382 2019 424,812 2020 411,655 Thereafter 3,860,790 Total $ 5,797,936

Note 10 - Restructuring and A27

Note 10 - Restructuring and Acquisition Related Charges (Tables)	3 Months Ended
	May. 31, 2015
Notes Tables
Schedule of Fresh-Start Adjustments [Table Text Block]	2014 Professional fees $ 104,876 Severance/transitional compensation 16,550 Other 3,125 Total $ 124,551

Note 1 - Nature of Operations28

Note 1 - Nature of Operations and Basis of Presentation (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	May. 31, 2015	May. 31, 2015	Feb. 28, 2015	Jan. 14, 2013
USwirl Inc [Member]
Noncontrolling Interest, Ownership Percentage by Parent	39.00%	39.00%
Investment, Right to Acquire Shares				27,146,000
EBITDA Requirement		$ 1,804,000
EBITDA	$ 1,532,000
DebtInstrumentDefaultInterestRate	15.00%
Debt Conversion, Additional Percentage of Preferred Stock Issued	68.00%
USwirl Inc [Member] | Shares Acquired [Member]
Equity Method Investment, Ownership Percentage				72.00%
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001	$ 0.03
Equity Method Investment, Ownership Percentage				60.00%

Note 1 - Nature of Operations29

Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details)		May. 31, 2015
Sold Not Yet Open [Member] | Company Owned Stores [Member] | Parent Company [Member]
Number of stores		0
Sold Not Yet Open [Member] | Company Owned Stores [Member] | USwirl Inc [Member]
Number of stores		0
Sold Not Yet Open [Member] | Franchise Stores - Domestic Stores [Member] | Parent Company [Member]
Number of stores		3
Sold Not Yet Open [Member] | Franchise Stores - Domestic Stores [Member] | USwirl Inc [Member]
Number of stores	[1]	0
Sold Not Yet Open [Member] | Franchise Stores - Domestic Kiosks [Member] | Parent Company [Member]
Number of stores		0
Sold Not Yet Open [Member] | International License Stores [Member] | Parent Company [Member]
Number of stores		1
Sold Not Yet Open [Member] | International License Stores [Member] | USwirl Inc [Member]
Number of stores		2
Sold Not Yet Open [Member] | Cold Stone Creamery - Co-Branded [Member] | Parent Company [Member]
Number of stores		7
Sold Not Yet Open [Member] | Company Owned Stores Co-branded [Member] | USwirl Inc [Member]
Number of stores		0
Sold Not Yet Open [Member] | Franchise Stores Co-branded [Member] | USwirl Inc [Member]
Number of stores	[1]	0
Sold Not Yet Open [Member]
Number of stores		13
Open [Member] | Company Owned Stores [Member] | Parent Company [Member]
Number of stores		4
Open [Member] | Company Owned Stores [Member] | USwirl Inc [Member]
Number of stores		6
Open [Member] | Franchise Stores - Domestic Stores [Member] | Parent Company [Member]
Number of stores		193
Open [Member] | Franchise Stores - Domestic Stores [Member] | USwirl Inc [Member]
Number of stores		225
Open [Member] | Franchise Stores - Domestic Kiosks [Member] | Parent Company [Member]
Number of stores		5
Open [Member] | International License Stores [Member] | Parent Company [Member]
Number of stores		74
Open [Member] | International License Stores [Member] | USwirl Inc [Member]
Number of stores		8
Open [Member] | Cold Stone Creamery - Co-Branded [Member] | Parent Company [Member]
Number of stores		72
Open [Member] | Company Owned Stores Co-branded [Member] | USwirl Inc [Member]
Number of stores		3
Open [Member] | Franchise Stores Co-branded [Member] | USwirl Inc [Member]
Number of stores		18
Open [Member]
Number of stores		608
Company Owned Stores [Member] | Parent Company [Member]
Number of stores		4
Company Owned Stores [Member] | USwirl Inc [Member]
Number of stores		6
Franchise Stores - Domestic Stores [Member] | Parent Company [Member]
Number of stores		196
Franchise Stores - Domestic Stores [Member] | USwirl Inc [Member]
Number of stores		225
Franchise Stores - Domestic Kiosks [Member] | Parent Company [Member]
Number of stores		5
International License Stores [Member] | Parent Company [Member]
Number of stores		75
International License Stores [Member] | USwirl Inc [Member]
Number of stores		10
Cold Stone Creamery - Co-Branded [Member] | Parent Company [Member]
Number of stores		79
Company Owned Stores Co-branded [Member] | USwirl Inc [Member]
Number of stores		3
Franchise Stores Co-branded [Member] | USwirl Inc [Member]
Number of stores		18
Number of stores		621
[1]	U-Swirl cafés and the brands franchised by U-Swirl have historically utilized a development area sales model. The result is that many areas are under development and the rights to open cafés within the development areas have been established, but there is no assurance that any individual development area will result in a determinable number of café openings.

Note 2 - Earnings Per Share (De

Note 2 - Earnings Per Share (Details Textual) - shares	3 Months Ended
	May. 31, 2015	May. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	12,936	12,936

Note 3 - Inventories - Inventor

Note 3 - Inventories - Inventories (Details) - USD ($)	May. 31, 2015	Feb. 28, 2015
Ingredients and supplies	$ 2,404,341	$ 2,755,232
Finished candy	1,583,220	2,130,133
U-Swirl food and packaging	91,585	97,669
Reserve for slow moving inventory	(210,435)	(197,658)
Total inventories	$ 3,868,711	$ 4,785,376

Note 4 - Property and Equipme32

Note 4 - Property and Equipment, Net - Property and Equipment (Details) - USD ($)	3 Months Ended	12 Months Ended
	May. 31, 2015	Feb. 28, 2015
Land [Member]
Property, plant and equipment, gross	$ 513,618	$ 513,618
Building [Member]
Property, plant and equipment, gross	4,774,825	4,774,825
Machinery and Equipment [Member]
Property, plant and equipment, gross	10,199,845	10,120,865
Furniture and Fixtures [Member]
Property, plant and equipment, gross	1,231,892	1,224,433
Leasehold Improvements [Member]
Property, plant and equipment, gross	1,971,041	2,056,244
Transportation Equipment [Member]
Property, plant and equipment, gross	439,327	427,727
Property, plant and equipment, gross	18,839,908	18,827,072
Asset impairment	(290,640)	(290,640)
Less accumulated depreciation	(12,176,756)	(12,029,536)
Property and equipment	$ 6,663,152	$ 6,797,536

Note 5 - Stockholders' Equity33

Note 5 - Stockholders' Equity (Details Textual) - USD ($)	Jun. 12, 2015	Mar. 13, 2015	May. 31, 2015	May. 31, 2015	May. 31, 2014	May. 21, 2015	Jan. 13, 2015	Jul. 15, 2014
Unrestricted Shares of Stock [Member]
Stock Issued During Period, Shares, Share-based Compensation, Gross				4,000	4,000
Allocated Share-based Compensation Expense				$ 61,040	$ 47,480
Restricted Stock Units (RSUs) [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				17.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				5 years
Restricted Stock Units (RSUs) [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage				20.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period				6 years
Restricted Stock Units (RSUs) [Member]
Allocated Share-based Compensation Expense				$ 160,493
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized			$ 2,306,526	$ 2,306,526
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				4 years
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Cash Paid	$ 0.12
USwirl Inc [Member]
Allocated Share-based Compensation Expense				$ 99,500	82,449
Common Stock, Dividends, Per Share, Cash Paid		$ 0.12
Stock Repurchase Program, Authorized Amount						$ 2,090,000	$ 2,058,000	$ 3,000,000
Stock Repurchased and Retired During Period, Shares			75,968
Treasury Stock Acquired, Average Cost Per Share			$ 13.62
Stock Repurchase Program, Remaining Authorized Repurchase Amount			$ 2,986,000	2,986,000
Allocated Share-based Compensation Expense				$ 321,033	$ 296,772

Note 5 - Non-vested Restricted

Note 5 - Non-vested Restricted Stock Unit Transactions for Common Stock (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares	3 Months Ended
	May. 31, 2015	May. 31, 2014
Outstanding non-vested restricted stock units as of February 28: (in shares)	237,641	295,040
Granted (in shares)	0	0
Vested (in shares)	(7,820)	(7,820)
Cancelled/forfeited (in shares)	0	0
Outstanding non-vested restricted stock units as of May 31: (in shares)	229,821	287,220
Weighted average grant date fair value (in dollars per share)	$ 12.22	$ 12.16
Weighted average remaining vesting period (in years)	3 years 350 days	4 years 306 days

Note 5 - Stock Option Transacti

Note 5 - Stock Option Transaction for Common Stock (Details) - $ / shares	3 Months Ended
	May. 31, 2015	May. 31, 2014
Outstanding stock options as of February 28: (in shares)	12,936	155,880
Granted (in shares)	0	0
Exercised (in shares)	0	(133,240)
Cancelled/forfeited (in shares)	0	0
Outstanding stock options as of May 31: (in shares)	12,936	22,640
Weighted average exercise price (in dollars per share)	$ 14.70	$ 11.57
Weighted average remaining contractual term (in years)	292 days	1 year 21 days

Note 6 - Supplemental Cash Fl36

Note 6 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($)	3 Months Ended
	May. 31, 2015	May. 31, 2014
Interest, net	$ 46,797	$ 47,093
Income taxes	39,745	57,037
Accrued Inventory	205,335	173,245
Dividend payable	$ 713,838	$ 682,090

Note 7 - Operating Segments (De

Note 7 - Operating Segments (Details Textual)	3 Months Ended
	May. 31, 2015USD ($)	May. 31, 2014USD ($)
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Manufacturing [Member]
Number of Major Customers	1
Revenues	$ 2,000,000	$ 1,600,000
Manufacturing [Member]
Revenues	$ 6,324,549	5,870,072
Number of Reportable Segments	5
Revenues	$ 10,364,022	$ 10,322,206

Note 7 - Operating Segments - S

Note 7 - Operating Segments - Segment Information (Details) - USD ($)	3 Months Ended
	May. 31, 2015	May. 31, 2014
Franchising [Member] | Revenue Before Intersegment Eliminations [Member]
Total revenues	$ 1,550,441	$ 1,448,264
Franchising [Member] | Intersegment Eliminations [Member]
Total revenues	(1,423)	(613)
Franchising [Member]
Total revenues	1,549,018	1,447,651
Segment profit (loss)	756,913	636,183
Total assets	1,224,822	1,256,360
Capital expenditures	0	0
Total depreciation & amortization	10,287	10,049
Manufacturing [Member] | Revenue Before Intersegment Eliminations [Member]
Total revenues	6,622,368	6,190,662
Manufacturing [Member] | Intersegment Eliminations [Member]
Total revenues	(297,819)	(320,590)
Manufacturing [Member]
Total revenues	6,324,549	5,870,072
Segment profit (loss)	1,399,604	1,481,664
Total assets	10,471,309	11,103,741
Capital expenditures	146,071	61,105
Total depreciation & amortization	102,516	90,160
Retail [Member] | Revenue Before Intersegment Eliminations [Member]
Total revenues	380,658	502,791
Retail [Member] | Intersegment Eliminations [Member]
Total revenues	0	0
Retail [Member]
Total revenues	380,658	502,791
Segment profit (loss)	(41,030)	(67,115)
Total assets	$ 1,095,173	1,254,183
Capital expenditures		16,088
Total depreciation & amortization	$ 5,896	9,449
USwirl Inc [Member] | Revenue Before Intersegment Eliminations [Member]
Total revenues	2,109,797	2,501,692
USwirl Inc [Member] | Intersegment Eliminations [Member]
Total revenues	0	0
USwirl Inc [Member]
Total revenues	2,109,797	2,501,692
Segment profit (loss)	264,416	200,360
Total assets	12,948,323	17,345,621
Capital expenditures	16,198	39,673
Total depreciation & amortization	203,177	226,100
Other Segments [Member] | Revenue Before Intersegment Eliminations [Member]
Total revenues	0	0
Other Segments [Member] | Intersegment Eliminations [Member]
Total revenues	0	0
Other Segments [Member]
Total revenues	0	0
Segment profit (loss)	(1,014,244)	(953,156)
Total assets	7,552,528	8,638,891
Capital expenditures	29,913	2,327
Total depreciation & amortization	42,974	38,654
Revenue Before Intersegment Eliminations [Member]
Total revenues	10,663,264	10,643,409
Intersegment Eliminations [Member]
Total revenues	(299,242)	(321,203)
Total revenues	10,364,022	10,322,206
Segment profit (loss)	1,365,659	1,297,936
Total assets	33,292,155	39,598,796
Capital expenditures	192,182	119,193
Total depreciation & amortization	$ 364,850	$ 374,412

Note 8 - Goodwill and Intangi39

Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($)	3 Months Ended
	May. 31, 2015	May. 31, 2014
Amortization of Intangible Assets	$ 93,150	$ 91,930

Note 8 - Goodwill and Intangi40

Note 8 - Goodwill and Intangible Assets - Indefinite-Lived Intangible Assets (Details) - USD ($)	3 Months Ended
	May. 31, 2015	Feb. 28, 2015
Store Design [Member]
Intangible assets subject to amortization
Amortization Period	10 years
Gross Carrying Value	$ 220,778	$ 220,778
Accumulated Amortization	$ 208,528	208,152
Packaging Licenses [Member] | Minimum [Member]
Intangible assets subject to amortization
Amortization Period	3 years
Packaging Licenses [Member] | Maximum [Member]
Intangible assets subject to amortization
Amortization Period	5 years
Packaging Licenses [Member]
Intangible assets subject to amortization
Gross Carrying Value	$ 120,830	120,830
Accumulated Amortization	$ 120,830	120,830
Packaging Design [Member]
Intangible assets subject to amortization
Amortization Period	10 years
Gross Carrying Value	$ 430,973	430,973
Accumulated Amortization	$ 430,973	430,973
Trademarks and Non Competition Agreement [Member] | Minimum [Member]
Intangible assets subject to amortization
Amortization Period	5 years
Trademarks and Non Competition Agreement [Member] | Maximum [Member]
Intangible assets subject to amortization
Amortization Period	20 years
Trademarks and Non Competition Agreement [Member]
Intangible assets subject to amortization
Gross Carrying Value	$ 459,340	459,340
Accumulated Amortization	$ 36,439	31,538
Franchise Rights [Member]
Intangible assets subject to amortization
Amortization Period	20 years
Gross Carrying Value	$ 5,858,496	5,850,290
Accumulated Amortization	495,711	410,830
Company Stores Goodwill [Member]
Intangible assets not subject to amortization
Gross Goodwill	1,122,328	1,122,328
Accumulated Goodwill Amortization	267,020	267,020
Franchising Goodwill [Member]
Intangible assets not subject to amortization
Gross Goodwill	2,202,529	2,202,529
Accumulated Goodwill Amortization	197,682	197,682
Manufacturing Segment Goodwill [Member]
Intangible assets not subject to amortization
Gross Goodwill	295,000	295,000
Accumulated Goodwill Amortization	197,682	197,682
Trademarks [Member]
Intangible assets not subject to amortization
Gross Goodwill	$ 20,000	$ 20,000
Accumulated Goodwill Amortization
Gross Carrying Value	$ 7,090,417	$ 7,082,211
Accumulated Amortization	1,292,481	1,202,323
Gross Goodwill	3,639,857	3,639,857
Accumulated Goodwill Amortization	662,384	662,384
Total intangible assets	10,730,274	10,722,068
Total intangible assets	$ 1,954,865	$ 1,864,707

Note 8 - Goodwill and Intangi41

Note 8 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details)	May. 31, 2015USD ($)
2,016	$ 280,015
2,017	402,282
2,018	418,382
2,019	424,812
2,020	411,655
Thereafter	3,860,790
Total	$ 5,797,936

Note 9 - Related Party Transa42

Note 9 - Related Party Transactions (Details Textual) - Immediate Family Member of Management or Principal Owner [Member]	3 Months Ended
	May. 31, 2015USD ($)
Accounts Payable and Accrued Liabilities [Member]
Related Party Transaction, Expenses from Transactions with Related Party	$ 0
Related Party Transaction, Expenses from Transactions with Related Party	$ 7,581

Note 10 - Restructuring and A43

Note 10 - Restructuring and Acquisition Related Charges (Details Textual)	3 Months Ended
	May. 31, 2015USD ($)	May. 31, 2014USD ($)	Feb. 20, 2014	Jan. 17, 2014
USwirl Inc [Member] | CherryBerry [Member]
Number of Restaurants				1
USwirl Inc [Member] | Yogli Mogli LLC [Member]
Number of Restaurants				4
USwirl Inc [Member] | Fuzzy Peach Franchising, LLC [Member]
Number of Restaurants			17
CherryBerry, Yogli Mogli LLC, and Fuzzy Peach Franchising, LLC[Member]
Restructuring Charges		$ 124,551
Restructuring Charges	$ 124,551

Note 10 - Restructuring and A44

Note 10 - Restructuring and Acquisition Related Charges - Restructuring Charges Incurred (Details)	3 Months Ended
	May. 31, 2015USD ($)
Professional Fees [Member]
Restructuring Charges	$ 104,876
Employee Severance [Member]
Restructuring Charges	16,550
Other Restructuring [Member]
Restructuring Charges	3,125
Restructuring Charges	$ 124,551

Note 11 - Contingencies (Detail

Note 11 - Contingencies (Details Textual) - CherryBerry [Member] - USD ($)	1 Months Ended
	Feb. 28, 2015	May. 31, 2015
USwirl Inc [Member]
Stock Issued During Period, Shares, Acquisitions	4,000,000
Business Combination, Contingent Consideration, Sale of Stock, Price Per Share		$ 0.50
Business Combination Shortfall Payment		$ 480,000