Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Nov. 30, 2016 | Dec. 31, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | Rocky Mountain Chocolate Factory, Inc. | |
Entity Central Index Key | 1,616,262 | |
Trading Symbol | rmcf | |
Current Fiscal Year End Date | --02-28 | |
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) | 5,854,372 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Revenues | ||||
Sales | $ 8,250,611 | $ 8,024,803 | $ 21,591,420 | $ 22,480,092 |
Franchise and royalty fees | 1,704,628 | 1,782,510 | 6,341,980 | 6,965,797 |
Total revenues | 9,955,239 | 9,807,313 | 27,933,400 | 29,445,889 |
Costs and Expenses | ||||
Cost of sales | 5,544,155 | 5,300,962 | 14,373,548 | 14,749,058 |
Franchise costs | 520,619 | 657,660 | 1,571,619 | 1,871,113 |
Sales and marketing | 641,976 | 593,793 | 1,959,115 | 1,832,828 |
General and administrative | 880,455 | 1,087,633 | 3,101,662 | 3,550,781 |
Retail operating | 551,168 | 669,961 | 1,876,783 | 2,318,404 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $118,213, $98,009, $324,412 and $300,731, respectively, included in cost of sales | 201,512 | 245,539 | 638,220 | 763,480 |
Restructuring and acquisition-related charges | 60,000 | |||
Total costs and expenses | 8,339,885 | 8,555,548 | 23,580,947 | 25,085,664 |
Income from Operations | 1,615,354 | 1,251,765 | 4,352,453 | 4,360,225 |
Other Income (Expense) | ||||
Interest expense | (40,842) | (52,553) | (132,884) | (167,424) |
Interest income | 9,543 | 13,779 | 32,540 | 40,814 |
Other income (expense), net | (31,299) | (38,774) | (100,344) | (126,610) |
Income Before Income Taxes | 1,584,055 | 1,212,991 | 4,252,109 | 4,233,615 |
Income Tax Provision | 572,256 | 439,355 | 1,533,663 | 1,286,400 |
Consolidated Net Income | 1,011,799 | 773,636 | 2,718,446 | 2,947,215 |
Less: Net income attributable to non-controlling interest | 332,835 | 963,659 | ||
Net Income attributable to RMCF | $ 1,011,799 | $ 440,801 | $ 2,718,446 | $ 1,983,556 |
Basic Earnings per Common Share (in dollars per share) | $ 0.17 | $ 0.08 | $ 0.47 | $ 0.34 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.17 | $ 0.07 | $ 0.45 | $ 0.32 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 5,874,366 | 5,840,407 | 5,839,603 | 5,911,561 |
Dilutive Effect of Stock Options and Restricted Stock Units (in shares) | 133,658 | 181,742 | 159,215 | 209,173 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 6,008,024 | 6,022,149 | 5,998,818 | 6,120,734 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Cost of sales, depreciation and amortization | $ 118,213 | $ 98,009 | $ 324,412 | $ 300,731 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 4,596,453 | $ 6,194,948 |
Accounts receivable, less allowance for doubtful accounts of $612,307 and $595,471, respectively | 4,391,560 | 3,799,691 |
Notes receivable, current portion | 267,917 | 317,248 |
Refundable income taxes | 284,927 | |
Inventories, less reserve for slow moving inventory of $284,767 and $261,346, respectively | 5,454,965 | 4,840,108 |
Other | 325,116 | 286,859 |
Total current assets | 15,320,938 | 15,438,854 |
Property and Equipment, Net | 6,464,991 | 6,010,303 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $34,845 and $75,000, respectively | 414,309 | 530,446 |
Goodwill, net | 1,046,944 | 1,046,944 |
Franchise rights, net | 4,919,545 | 5,153,363 |
Intangible assets, net | 643,354 | 419,042 |
Deferred income taxes | 1,184,524 | 1,421,655 |
Other | 128,043 | 295,118 |
Total other assets | 8,336,719 | 8,866,568 |
Total Assets | 30,122,648 | 30,315,725 |
Current Liabilities | ||
Current maturities of long term debt | 1,290,099 | 1,254,007 |
Accounts payable | 1,734,944 | 1,663,245 |
Accrued salaries and wages | 820,621 | 683,863 |
Gift card liabilities | 2,758,283 | 2,835,943 |
Other accrued expenses | 323,138 | 364,955 |
Dividend payable | 702,525 | 700,728 |
Deferred income | 478,633 | 502,950 |
Total current liabilities | 8,108,243 | 8,005,691 |
Long-term obligations | 2,859,240 | 3,831,126 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Preferred stock, $.001 par value per share; 250,000 authorized; -0- shares issued and outstanding; Series A Junior Participating Preferred Stock, authorized 50,000 shares; undesignated series, authorized 200,000 shares | ||
Common stock, $.001 par value per share, 46,000,000 shares authorized, 5,889,480 and 5,839,396 issued, and 5,854,372 and 5,839,396 outstanding, respectively | 5,889 | 5,839 |
Additional paid-in capital | 5,753,593 | 5,340,190 |
Retained earnings | 13,747,267 | 13,132,879 |
Treasury stock, 35,108 shares and 0 shares, at cost | (351,584) | |
Total stockholders’ equity | 19,155,165 | 18,478,908 |
Total Liabilities and Stockholders’ Equity | $ 30,122,648 | $ 30,315,725 |
Consolidated Balance Sheets (C5
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 |
Accounts receivable, allowance for doubtful accounts | $ 612,307 | $ 595,471 |
Inventories, reserve | 284,767 | 261,346 |
Notes receivable, valuation allowance | $ 34,845 | $ 75,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 250,000 | 250,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 46,000,000 | 46,000,000 |
Common stock, shares issued (in shares) | 5,889,480 | 5,839,396 |
Common stock, shares outstanding (in shares) | 5,854,372 | 5,839,396 |
Treasury stock, shares (in shares) | 35,108 | 0 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Undesignated Series [Member] | ||
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Cash Flows From Operating activities | ||
Net income | $ 2,718,446 | $ 2,947,215 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 962,632 | 1,064,211 |
Provision for slow moving inventory | 61,061 | 68,175 |
Provision for loss on accounts and notes receivable | 109,200 | 129,000 |
Loss on sale or disposal of property and equipment | 18,783 | 90,149 |
Expense recorded for stock compensation | 447,581 | 615,740 |
Deferred income | 14,710 | (430,043) |
Deferred income taxes | 237,131 | 100,108 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (650,708) | 50,028 |
Refundable income taxes | (284,927) | |
Inventories | (771,281) | 121,220 |
Other current assets | (39,008) | (9,182) |
Accounts payable | 156,150 | (321,489) |
Accrued liabilities | 17,281 | 179,878 |
Net cash provided by operating activities | 2,997,051 | 4,605,010 |
Cash Flows From Investing Activities | ||
Addition to notes receivable | (131,243) | (46,489) |
Proceeds received on notes receivable | 255,907 | 259,619 |
Purchase of intangible assets | (307,023) | (54,479) |
Proceeds from sale of assets | 33,845 | 23,692 |
Purchases of property and equipment | (1,048,667) | (625,180) |
Decrease (increase) in other assets | 25,402 | (115,407) |
Net cash used in investing activities | (1,171,779) | (558,244) |
Cash Flows From Financing Activities | ||
Payments on long-term debt | (935,794) | (901,560) |
Repurchase of common stock | (351,584) | (3,030,708) |
Tax (expense) benefit of stock awards | (34,128) | 19,868 |
Dividends paid | (2,102,261) | (2,137,817) |
Net cash used in financing activities | (3,423,767) | (6,050,217) |
Net Decrease in Cash and Cash Equivalents | (1,598,495) | (2,003,451) |
Cash and Cash Equivalents, Beginning of Period | 6,194,948 | 7,157,371 |
Cash and Cash Equivalents, End of Period | $ 4,596,453 | $ 5,153,920 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE 1 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 (“RMCF”), Aspen Leaf Yogurt, LLC, a Colorado limited liability company (“ALY”), U - Swirl International, Inc. (“U - Swirl”) (a Nevada corporation), and its 39% February 29, 2016 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, Effective March 1, 2015, $0.03 one one $0.001 March 2, 2015 In January 2013, two January 2013, 60% 39% November 30, 2016 November 30, 2016, 39% In fiscal year (“FY”) 2014, February 29, 2016 January 16, 2016 15% February 29, 2016 February 29, 2016 February 29, 2016. February 29, 2016, U - Swirl operates self - serve frozen yogurt cafés 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 The following table summarizes the number of stores operated under the Rocky Mountain Chocolate Factory brand and frozen yogurt cafés as of November 30, 2016: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 4 4 Franchise stores – Domestic stores and kiosks 7 191 198 International license stores - 94 94 Cold Stone Creamery – co-branded 4 82 86 U-Swirl (Including all associated brands) Company-owned stores - 2 2 Company-owned stores – co-branded - 3 3 Franchise stores – Domestic stores * 143 143 Franchise stores – Domestic – co-branded * 18 18 International License Stores - 7 7 Total 11 544 555 *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 nine November 30, 2016 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 February 29, 2016. 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. New Accounting Pronouncements In January 2016, 2016 01, 825 10), 2016 01 first 2019, In February 2016, 2016 02, 842), 840 December 15, 2018, In August 2016, 2016 15, 230): 2016 15 eight 2016 15 December 15, 2017, March 1, 2018. In June 2016, 2016 13, 326): 2016 13 2016 13 2016 13 March 1, 2020 2016 13 In March 2016, 2016 09, 718): 2016 09 December 15, 2016, March 1, 2017. may 2016 09 In May 2014, 2014 09, 606). 605, December 15, 2017, December 31, 2016. March 1, 2018. |
Note 2 - Earnings Per Share
Note 2 - Earnings Per Share | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 2 Basic earnings per share is calculated using the weighted - average number of shares of common stock outstanding. Diluted earnings per share reflects the potential dilution that could occur from common stock issuable through stock options and restricted stock units. For the three November 30, 2016, 12,936 three November 30, 2015 nine November 30, 2016, 12,936 nine November 30, 2015 |
Note 3 - Inventories
Note 3 - Inventories | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3 Inventories consist of the following: November 30, 2016 February 29, 2016 Ingredients and supplies $ 2,883,509 $ 2,868,157 Finished candy 2,784,760 2,138,952 U-Swirl food and packaging 71,463 94,345 Reserve for slow moving inventory (284,767 ) (261,346 ) Total inventories $ 5,454,965 $ 4,840,108 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 Property and equipment consists of the following: November 30, 2016 February 29, 2016 Land $ 513,618 $ 513,618 Building 4,787,855 4,784,272 Machinery and equipment 10,375,738 9,987,906 Furniture and fixtures 1,044,004 1,169,475 Leasehold improvements 1,531,112 1,862,603 Transportation equipment 418,402 438,601 Asset Impairment (30,414 ) (568,803 ) 18,640,315 18,187,672 Less accumulated depreciation (12,175,324 ) (12,177,369 ) Property and equipment, net $ 6,464,991 $ 6,010,303 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 5 Cash Dividend The Company paid quarterly cash dividends of $0.12 March 11, 2016, June 17, 2016, September 16, 2016 February 26, 2016, June 7, 2016, September 6, 2016, $0.12 November 15, 2016 December 9, 2016 November 25, 2016. 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 Stock Repurchases On July 15, 2014, $3.0 January 13, 2015, $2,058,000 May 21, 2015, $2,090,000 nine November 30, 2016, 35,108 $10.01 three November 30, 2016. November 30, 2016, $638,121 Stock - Based Compensation At November 30, 2016, The Company recognized $132,453 $447,581 three nine November 30, 2016, $147,354 $615,740 three nine November 30, 2015, The following table summarizes stock option activity during the nine November 30, 2016 2015: Nine Months Ended November 30, 2016 2015 Outstanding stock options as of February 28 or 29: 12,936 12,936 Granted - - Exercised - - Cancelled/forfeited (12,936 ) - Outstanding stock options as of November 30: - 12,936 Weighted average exercise price n/a $ 14.70 Weighted average remaining contractual term (in years) n/a 0.29 The following table summarizes restricted stock unit activity during the nine November 30, 2016 2015: Nine Months Ended November 30, 2016 2015 Outstanding non-vested restricted stock units as of February 28 or 29: 181,742 237,641 Granted - - Vested (48,084 ) (55,899 ) Cancelled/forfeited (10,000 ) - Outstanding non-vested restricted stock units as of November 30: 123,658 181,742 Weighted average grant date fair value $ 12.22 $ 12.22 Weighted average remaining vesting period (in years) 2.47 3.47 During the nine November 30, 2016, 2,000 4,000 nine November 30, 2015. There were no unrestricted shares of common stock granted during the three November 30, 2016 2015. $20,420 $61,040 of stock - based compensation expense during the nine November 30, 2016 2015, During the three nine November 30, 2016, $132,453 $427,161, 17% 20% five six nine November 30, 2016 2015, 48,084 55,899 November 30, 2016 $1,316,804, 2.5 The Company did not recognize any stock - based compensation expense attributable to SWRL during the three nine November 30, 2016, $0 $99,250 three nine November 30, 2015, |
Note 6 - Supplemental Cash Flow
Note 6 - Supplemental Cash Flow Information | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 6 Nine Months Ended November 30, Cash paid for: 2016 2015 Interest $ 100,275 $ 128,881 Income taxes 1,655,774 997,914 Non-Cash Operating Activities Accrued Inventory 202,669 497,190 Non-Cash Financing Activities Dividend Payable 702,525 700,728 Sale of assets and inventory to buyers for notes receivable: Long-lived assets 20,989 127,500 Other assets $ - $ 75,000 |
Note 7 - Operating Segments
Note 7 - Operating Segments | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 7 The Company classifies its business interests into five 1 1 10 February 29, 2016. Three Months Ended November 30, 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,202,655 $ 7,783,888 $ 320,011 $ 1,009,360 $ - $ 10,315,914 Intersegment revenues (1,248 ) (359,427 ) - - - (360,675 ) Revenue from external customers 1,201,407 7,424,461 320,011 1,009,360 - 9,955,239 Segment profit (loss) 328,866 2,049,231 (46,253 ) 102,906 (850,695 ) 1,584,055 Total assets 1,151,783 13,761,091 1,132,268 9,138,026 4,939,480 30,122,648 Capital expenditures 4,414 78,725 13,677 5,246 14,615 116,677 Total depreciation & amortization $ 13,441 $ 122,381 $ 3,357 $ 147,284 $ 33,262 $ 319,725 Three Months Ended November 30, 2015 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,159,250 $ 7,499,619 $ 248,164 $ 1,293,843 $ - $ 10,200,876 Intersegment revenues (1,238 ) (392,325 ) - - - (393,563 ) Revenue from external customers 1,158,012 7,107,294 248,164 1,293,843 - 9,807,313 Segment profit (loss) 277,663 2,029,847 (61,439 ) (158,478 ) (874,602 ) 1,212,991 Total assets 1,162,582 12,540,706 1,087,849 12,721,643 3,505,689 31,018,469 Capital expenditures - 120,302 1,716 12,847 167,943 302,808 Total depreciation & amortization $ 8,717 $ 98,286 $ 3,810 $ 197,717 $ 35,018 $ 343,548 Nine Months Ended November 30, 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,257,842 $ 19,070,069 $ 1,081,103 $ 4,438,630 $ - $ 28,847,644 Intersegment revenues (4,000 ) (910,244 ) - - - (914,244 ) Revenue from external customers 4,253,842 18,159,825 1,081,103 4,438,630 - 27,933,400 Segment profit (loss) 1,680,304 4,511,527 16,743 1,053,529 (3,009,994 ) 4,252,109 Total assets 1,151,783 13,761,091 1,132,268 9,138,026 4,939,480 30,122,648 Capital expenditures 13,540 785,889 16,997 35,722 196,519 1,048,667 Total depreciation & amortization $ 41,266 $ 336,541 $ 10,061 $ 473,730 $ 101,034 $ 962,632 Nine Months Ended November 30, 2015 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,291,383 $ 19,662,432 $ 1,082,279 $ 5,476,052 $ - $ 30,512,146 Intersegment revenues (3,953 ) (1,062,304 ) - - - (1,066,257 ) Revenue from external customers 4,287,430 18,600,128 1,082,279 5,476,052 - 29,445,889 Segment profit (loss) 1,787,646 4,815,854 (89,578 ) 528,166 (2,808,473 ) 4,233,615 Total assets 1,162,582 12,540,706 1,087,849 12,721,643 3,505,689 31,018,469 Capital expenditures 22,709 341,126 2,676 51,319 207,350 625,180 Total depreciation & amortization $ 28,288 $ 302,145 $ 14,406 $ 599,267 $ 120,105 $ 1,064,211 Revenue from one $2.1 7.5 nine November 30, 2016, $3.1 10.5 nine November 30, 2015. |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8 Intangible assets consist of the following: November 30, 2016 February 29, 2016 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 210,778 $ 220,778 $ 209,653 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 - 20 715,339 81,985 459,340 51,423 Franchise Rights 20 5,965,205 1,045,660 5,914,181 760,818 Total 7,453,125 1,890,226 7,146,102 1,573,697 Intangible assets not subject to amortization Franchising segment- Company stores goodwill 1,099,328 267,020 1,099,328 267,020 Franchising goodwill 295,000 197,682 295,000 197,682 Manufacturing segment-Goodwill 295,000 197,682 295,000 197,682 Trademark 20,000 - 20,000 - Total Goodwill 1,709,328 662,384 1,709,328 662,384 Total Intangible Assets $ 9,162,453 $ 2,552,610 $ 8,855,430 $ 2,236,081 Effective March 1, 2002, 350, March 1, 2002. Amortization expense related to intangible assets totaled $316,529 $277,839 nine November 30, 2016 2015, At November 30, 2016, 2017 $ 110,421 2018 444,917 2019 451,348 2020 438,191 2021 426,481 Thereafter 3,691,541 Total $ 5,562,899 |
Note 9 - Related Party Transact
Note 9 - Related Party Transactions | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 9 Our President and Chief Executive Officer has members of his immediate family with ownership interests in retail marketing businesses. These businesses have provided services to the Company and may nine November 30, 2016, $47,222 |
Note 10 - Restructuring and Acq
Note 10 - Restructuring and Acquisition Related Charges | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 10 Restructuring and acquisition charges incurred were comprised of lease settlement costs of $60,000 nine November 30, 2016, The Company did not record any restructuring charges in the three nine November 30, 2015. |
Note 11 - Sale or Distribution
Note 11 - Sale or Distribution of Assets | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Sale or Distribution of Assets [Text Block] | NOTE 11 During the nine November 30, 2016, two nine November 30, 2015, one nine November 30, 2016 2015: 2016 2015 Notes receivable $ 145,585 $ 264,433 |
Note 12 - Note Payable
Note 12 - Note Payable | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 12 The Company’s long - term debt is comprised of a promissory note, the proceeds of which were loaned to SWRL and used to finance SWRL’s business acquisitions. As of November 30, 2016 February 29, 2016, November 30, 2016 February 29, 2016 Promissory note $ 4,149,339 $ 5,085,133 Less: current maturities (1,290,099 ) (1,254,007 ) Long-term obligations $ 2,859,240 $ 3,831,126 The following table summarizes annual maturities of our notes payable as of November 30, 2016: Amount 2017 $ 317,620 2018 1,302,503 2019 1,352,897 2020 1,176,319 Total minimum payments $ 4,149,339 Less: current maturities (1,290,099 ) Long-term obligations $ 2,859,240 |
Note 13 - Contingencies
Note 13 - Contingencies | 9 Months Ended |
Nov. 30, 2016 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | NOTE 13 The Company is party to various legal proceedings arising in the ordinary course of business from time to time. Management believes that the resolution of these matters will not have a significant adverse effect on the Company’s financial position, results of operations or cash flows. In January 2014, 4,000,000 one February 2015. first $0.50 $0.50 February 29, 2016, $1,800,000. November 30, 2016. July August 2015, $205,000 In August 2015, September 2015, third On January 13, 2016, third January 13, 2016, January 13, 2016, April 2016, April 2016, April 8, 2016, May 9, 2016, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 30, 2016 | |
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 nine November 30, 2016 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 February 29, 2016. |
Subsequent Events, Policy [Policy Text Block] | 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements In January 2016, 2016 01, 825 10), 2016 01 first 2019, In February 2016, 2016 02, 842), 840 December 15, 2018, In August 2016, 2016 15, 230): 2016 15 eight 2016 15 December 15, 2017, March 1, 2018. In June 2016, 2016 13, 326): 2016 13 2016 13 2016 13 March 1, 2020 2016 13 In March 2016, 2016 09, 718): 2016 09 December 15, 2016, March 1, 2017. may 2016 09 In May 2014, 2014 09, 606). 605, December 15, 2017, December 31, 2016. March 1, 2018. |
Note 1 - Nature of Operations21
Note 1 - Nature of Operations and Basis of Presentation (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
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 and kiosks 7 191 198 International license stores - 94 94 Cold Stone Creamery – co-branded 4 82 86 U-Swirl (Including all associated brands) Company-owned stores - 2 2 Company-owned stores – co-branded - 3 3 Franchise stores – Domestic stores * 143 143 Franchise stores – Domestic – co-branded * 18 18 International License Stores - 7 7 Total 11 544 555 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | November 30, 2016 February 29, 2016 Ingredients and supplies $ 2,883,509 $ 2,868,157 Finished candy 2,784,760 2,138,952 U-Swirl food and packaging 71,463 94,345 Reserve for slow moving inventory (284,767 ) (261,346 ) Total inventories $ 5,454,965 $ 4,840,108 |
Note 4 - Property and Equipme23
Note 4 - Property and Equipment, Net (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | November 30, 2016 February 29, 2016 Land $ 513,618 $ 513,618 Building 4,787,855 4,784,272 Machinery and equipment 10,375,738 9,987,906 Furniture and fixtures 1,044,004 1,169,475 Leasehold improvements 1,531,112 1,862,603 Transportation equipment 418,402 438,601 Asset Impairment (30,414 ) (568,803 ) 18,640,315 18,187,672 Less accumulated depreciation (12,175,324 ) (12,177,369 ) Property and equipment, net $ 6,464,991 $ 6,010,303 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Nine Months Ended November 30, 2016 2015 Outstanding stock options as of February 28 or 29: 12,936 12,936 Granted - - Exercised - - Cancelled/forfeited (12,936 ) - Outstanding stock options as of November 30: - 12,936 Weighted average exercise price n/a $ 14.70 Weighted average remaining contractual term (in years) n/a 0.29 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Nine Months Ended November 30, 2016 2015 Outstanding non-vested restricted stock units as of February 28 or 29: 181,742 237,641 Granted - - Vested (48,084 ) (55,899 ) Cancelled/forfeited (10,000 ) - Outstanding non-vested restricted stock units as of November 30: 123,658 181,742 Weighted average grant date fair value $ 12.22 $ 12.22 Weighted average remaining vesting period (in years) 2.47 3.47 |
Note 6 - Supplemental Cash Fl25
Note 6 - Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Nine Months Ended November 30, Cash paid for: 2016 2015 Interest $ 100,275 $ 128,881 Income taxes 1,655,774 997,914 Non-Cash Operating Activities Accrued Inventory 202,669 497,190 Non-Cash Financing Activities Dividend Payable 702,525 700,728 Sale of assets and inventory to buyers for notes receivable: Long-lived assets 20,989 127,500 Other assets $ - $ 75,000 |
Note 7 - Operating Segments (Ta
Note 7 - Operating Segments (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended November 30, 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,202,655 $ 7,783,888 $ 320,011 $ 1,009,360 $ - $ 10,315,914 Intersegment revenues (1,248 ) (359,427 ) - - - (360,675 ) Revenue from external customers 1,201,407 7,424,461 320,011 1,009,360 - 9,955,239 Segment profit (loss) 328,866 2,049,231 (46,253 ) 102,906 (850,695 ) 1,584,055 Total assets 1,151,783 13,761,091 1,132,268 9,138,026 4,939,480 30,122,648 Capital expenditures 4,414 78,725 13,677 5,246 14,615 116,677 Total depreciation & amortization $ 13,441 $ 122,381 $ 3,357 $ 147,284 $ 33,262 $ 319,725 Three Months Ended November 30, 2015 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,159,250 $ 7,499,619 $ 248,164 $ 1,293,843 $ - $ 10,200,876 Intersegment revenues (1,238 ) (392,325 ) - - - (393,563 ) Revenue from external customers 1,158,012 7,107,294 248,164 1,293,843 - 9,807,313 Segment profit (loss) 277,663 2,029,847 (61,439 ) (158,478 ) (874,602 ) 1,212,991 Total assets 1,162,582 12,540,706 1,087,849 12,721,643 3,505,689 31,018,469 Capital expenditures - 120,302 1,716 12,847 167,943 302,808 Total depreciation & amortization $ 8,717 $ 98,286 $ 3,810 $ 197,717 $ 35,018 $ 343,548 Nine Months Ended November 30, 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,257,842 $ 19,070,069 $ 1,081,103 $ 4,438,630 $ - $ 28,847,644 Intersegment revenues (4,000 ) (910,244 ) - - - (914,244 ) Revenue from external customers 4,253,842 18,159,825 1,081,103 4,438,630 - 27,933,400 Segment profit (loss) 1,680,304 4,511,527 16,743 1,053,529 (3,009,994 ) 4,252,109 Total assets 1,151,783 13,761,091 1,132,268 9,138,026 4,939,480 30,122,648 Capital expenditures 13,540 785,889 16,997 35,722 196,519 1,048,667 Total depreciation & amortization $ 41,266 $ 336,541 $ 10,061 $ 473,730 $ 101,034 $ 962,632 Nine Months Ended November 30, 2015 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,291,383 $ 19,662,432 $ 1,082,279 $ 5,476,052 $ - $ 30,512,146 Intersegment revenues (3,953 ) (1,062,304 ) - - - (1,066,257 ) Revenue from external customers 4,287,430 18,600,128 1,082,279 5,476,052 - 29,445,889 Segment profit (loss) 1,787,646 4,815,854 (89,578 ) 528,166 (2,808,473 ) 4,233,615 Total assets 1,162,582 12,540,706 1,087,849 12,721,643 3,505,689 31,018,469 Capital expenditures 22,709 341,126 2,676 51,319 207,350 625,180 Total depreciation & amortization $ 28,288 $ 302,145 $ 14,406 $ 599,267 $ 120,105 $ 1,064,211 |
Note 8 - Goodwill and Intangi27
Note 8 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | November 30, 2016 February 29, 2016 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 210,778 $ 220,778 $ 209,653 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 - 20 715,339 81,985 459,340 51,423 Franchise Rights 20 5,965,205 1,045,660 5,914,181 760,818 Total 7,453,125 1,890,226 7,146,102 1,573,697 Intangible assets not subject to amortization Franchising segment- Company stores goodwill 1,099,328 267,020 1,099,328 267,020 Franchising goodwill 295,000 197,682 295,000 197,682 Manufacturing segment-Goodwill 295,000 197,682 295,000 197,682 Trademark 20,000 - 20,000 - Total Goodwill 1,709,328 662,384 1,709,328 662,384 Total Intangible Assets $ 9,162,453 $ 2,552,610 $ 8,855,430 $ 2,236,081 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2017 $ 110,421 2018 444,917 2019 451,348 2020 438,191 2021 426,481 Thereafter 3,691,541 Total $ 5,562,899 |
Note 11 - Sale or Distributio28
Note 11 - Sale or Distribution of Assets (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Notes Tables | |
Schedule of Sale or Distribution of Assets [Table Text Block] | 2016 2015 Notes receivable $ 145,585 $ 264,433 |
Note 12 - Note Payable (Tables)
Note 12 - Note Payable (Tables) | 9 Months Ended |
Nov. 30, 2016 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | November 30, 2016 February 29, 2016 Promissory note $ 4,149,339 $ 5,085,133 Less: current maturities (1,290,099 ) (1,254,007 ) Long-term obligations $ 2,859,240 $ 3,831,126 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Amount 2017 $ 317,620 2018 1,302,503 2019 1,352,897 2020 1,176,319 Total minimum payments $ 4,149,339 Less: current maturities (1,290,099 ) Long-term obligations $ 2,859,240 |
Note 1 - Nature of Operations30
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) - $ / shares | 12 Months Ended | |||
Feb. 29, 2016 | Nov. 30, 2016 | Feb. 28, 2016 | Jan. 31, 2013 | |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.03 | |
USwirl Inc [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 39.00% | |||
Equity Method Investment, Ownership Percentage | 60.00% | |||
Debt Instrument Default Interest Rate | 15.00% |
Note 1 - Nature of Operations31
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | Nov. 30, 2016 | |
Number of stores | 555 | |
Sold Not Yet Open [Member] | ||
Number of stores | 11 | |
Open [Member] | ||
Number of stores | 544 | |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 4 | |
Company Owned Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 2 | |
Company Owned Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 0 | |
Company Owned Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | ||
Company Owned Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 4 | |
Company Owned Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 2 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 198 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 7 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 191 | |
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 94 | |
International License Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 7 | |
International License Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | ||
International License Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | ||
International License Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 94 | |
International License Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 7 | |
Cold Stone Creamery - Co-Branded [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 86 | |
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 4 | |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 82 | |
Company Owned Stores Co-branded [Member] | USwirl Inc [Member] | ||
Number of stores | 3 | |
Company Owned Stores Co-branded [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | ||
Company Owned Stores Co-branded [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 3 | |
Franchise Stores - Domestic Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 143 | [1] |
Franchise Stores - Domestic Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | [1] | |
Franchise Stores - Domestic Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 143 | [1] |
Franchise Stores Co-branded [Member] | USwirl Inc [Member] | ||
Number of stores | 18 | |
Franchise Stores Co-branded [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | [1] | |
Franchise Stores Co-branded [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 18 | |
[1] | U-Swirl cafes 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 cafes within the development areas have been established, but there is no assurance that any individual development area will result in a determinable number of cafe openings. |
Note 2 - Earnings Per Share (De
Note 2 - Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 12,936 | 0 | 12,936 |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 |
Ingredients and supplies | $ 2,883,509 | $ 2,868,157 |
Finished candy | 2,784,760 | 2,138,952 |
U-Swirl food and packaging | 71,463 | 94,345 |
Reserve for slow moving inventory | (284,767) | (261,346) |
Total inventories | $ 5,454,965 | $ 4,840,108 |
Note 4 - Property and Equipme34
Note 4 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Nov. 30, 2016 | Feb. 29, 2016 | |
Property, plant and equipment, gross | $ 18,640,315 | $ 18,187,672 |
Asset Impairment | (30,414) | (568,803) |
Less accumulated depreciation | (12,175,324) | (12,177,369) |
Property and equipment, net | 6,464,991 | 6,010,303 |
Land [Member] | ||
Property, plant and equipment, gross | 513,618 | 513,618 |
Building [Member] | ||
Property, plant and equipment, gross | 4,787,855 | 4,784,272 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 10,375,738 | 9,987,906 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 1,044,004 | 1,169,475 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 1,531,112 | 1,862,603 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 418,402 | $ 438,601 |
Note 5 - Stockholders' Equity35
Note 5 - Stockholders' Equity (Details Textual) - USD ($) | Nov. 15, 2016 | Mar. 11, 2016 | Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | May 21, 2015 | Jan. 13, 2015 | Jul. 15, 2014 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.12 | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.12 | ||||||||
Stock Repurchase Program, Authorized Amount | $ 2,058,000 | $ 3,000,000 | |||||||
Stock Repurchase Program, Additional Authorized Amount | $ 2,090,000 | ||||||||
Treasury Stock, Shares, Acquired | 0 | 35,108 | |||||||
Treasury Stock Acquired, Average Cost Per Share | $ 10.01 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 638,121 | $ 638,121 | |||||||
Allocated Share-based Compensation Expense | $ 132,453 | $ 147,354 | $ 447,581 | $ 615,740 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 48,084 | 55,899 | |||||||
USwirl Inc [Member] | |||||||||
Allocated Share-based Compensation Expense | $ 0 | $ 99,250 | |||||||
Unrestricted Shares of Stock [Member] | |||||||||
Allocated Share-based Compensation Expense | $ 20,420 | $ 61,040 | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 0 | 0 | 2,000 | 4,000 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Allocated Share-based Compensation Expense | $ 132,453 | $ 427,161 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 48,084 | 55,899 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,316,804 | $ 1,316,804 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 182 days | ||||||||
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 |
Note 5 - Stockholders' Equity -
Note 5 - Stockholders' Equity - Stock Option Transaction for Common Stock (Details) - $ / shares | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Outstanding stock options (in shares) | 12,936 | 12,936 |
Granted (in shares) | ||
Exercised (in shares) | ||
Cancelled/forfeited (in shares) | (12,936) | |
Outstanding stock options (in shares) | 12,936 | |
Weighted average exercise price (in dollars per share) | $ 14.70 | |
Weighted average remaining contractual term (in years) (Year) | 105 days |
Note 5 - Stockholders' Equity37
Note 5 - Stockholders' Equity - Non-vested Restricted Stock Unit Transactions for Common Stock (Details) - $ / shares | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Outstanding non-vested restricted stock units (in shares) | 181,742 | 237,641 |
Granted (in shares) | ||
Vested (in shares) | (48,084) | (55,899) |
Cancelled/forfeited (in shares) | (10,000) | |
Outstanding non-vested restricted stock units (in shares) | 123,658 | 181,742 |
Weighted average grant date fair value (in dollars per share) | $ 12.22 | $ 12.22 |
Weighted average remaining vesting period (in years) (Year) | 2 years 171 days | 3 years 171 days |
Note 6 - Supplemental Cash Fl38
Note 6 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Interest | $ 100,275 | $ 128,881 |
Income taxes | 1,655,774 | 997,914 |
Accrued Inventory | 202,669 | 497,190 |
Dividend Payable | 702,525 | 700,728 |
Notes receivable | 145,585 | 264,433 |
Sale of Long Lived Assets [Member] | ||
Notes receivable | 20,989 | 127,500 |
Sale of Other Assets [Member] | ||
Notes receivable | $ 75,000 |
Note 7 - Operating Segments (De
Note 7 - Operating Segments (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2016USD ($) | Nov. 30, 2015USD ($) | Nov. 30, 2016USD ($) | Nov. 30, 2015USD ($) | |
Number of Reportable Segments | 5 | |||
Revenues | $ 9,955,239 | $ 9,807,313 | $ 27,933,400 | $ 29,445,889 |
Manufacturing [Member] | ||||
Revenues | $ 7,424,461 | $ 7,107,294 | $ 18,159,825 | 18,600,128 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | ||||
Number of Major Customers | 1 | |||
Revenues | $ 2,100,000 | $ 3,100,000 | ||
Concentration Risk, Percentage | 7.50% | 10.50% |
Note 7 - Operating Segments - S
Note 7 - Operating Segments - Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2016 | Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | Feb. 29, 2016 | |
Revenues | $ 9,955,239 | $ 9,807,313 | $ 27,933,400 | $ 29,445,889 | |
Segment profit (loss) | 1,584,055 | 1,212,991 | 4,252,109 | 4,233,615 | |
Total assets | 30,122,648 | 31,018,469 | 30,122,648 | 31,018,469 | $ 30,315,725 |
Capital expenditures | 116,677 | 302,808 | 1,048,667 | 625,180 | |
Total depreciation and amortization | 319,725 | 343,548 | 962,632 | 1,064,211 | |
Franchising [Member] | |||||
Revenues | 1,201,407 | 1,158,012 | 4,253,842 | 4,287,430 | |
Segment profit (loss) | 328,866 | 277,663 | 1,680,304 | 1,787,646 | |
Total assets | 1,151,783 | 1,162,582 | 1,151,783 | 1,162,582 | |
Capital expenditures | 4,414 | 13,540 | 22,709 | ||
Total depreciation and amortization | 13,441 | 8,717 | 41,266 | 28,288 | |
Manufacturing [Member] | |||||
Revenues | 7,424,461 | 7,107,294 | 18,159,825 | 18,600,128 | |
Segment profit (loss) | 2,049,231 | 2,029,847 | 4,511,527 | 4,815,854 | |
Total assets | 13,761,091 | 12,540,706 | 13,761,091 | 12,540,706 | |
Capital expenditures | 78,725 | 120,302 | 785,889 | 341,126 | |
Total depreciation and amortization | 122,381 | 98,286 | 336,541 | 302,145 | |
Retail [Member] | |||||
Revenues | 320,011 | 248,164 | 1,081,103 | 1,082,279 | |
Segment profit (loss) | (46,253) | (61,439) | 16,743 | (89,578) | |
Total assets | 1,132,268 | 1,087,849 | 1,132,268 | 1,087,849 | |
Capital expenditures | 13,677 | 1,716 | 16,997 | 2,676 | |
Total depreciation and amortization | 3,357 | 3,810 | 10,061 | 14,406 | |
U-Swirl Segment [Member] | |||||
Revenues | 1,009,360 | 1,293,843 | 4,438,630 | 5,476,052 | |
Segment profit (loss) | 102,906 | (158,478) | 1,053,529 | 528,166 | |
Total assets | 9,138,026 | 12,721,643 | 9,138,026 | 12,721,643 | |
Capital expenditures | 5,246 | 12,847 | 35,722 | 51,319 | |
Total depreciation and amortization | 147,284 | 197,717 | 473,730 | 599,267 | |
Other Segments [Member] | |||||
Revenues | 0 | 0 | |||
Segment profit (loss) | (850,695) | (874,602) | (3,009,994) | (2,808,473) | |
Total assets | 4,939,480 | 3,505,689 | 4,939,480 | 3,505,689 | |
Capital expenditures | 14,615 | 167,943 | 196,519 | 207,350 | |
Total depreciation and amortization | 33,262 | 35,018 | 101,034 | 120,105 | |
Operating Segments [Member] | |||||
Revenues | 10,315,914 | 10,200,876 | 28,847,644 | 30,512,146 | |
Operating Segments [Member] | Franchising [Member] | |||||
Revenues | 1,202,655 | 1,159,250 | 4,257,842 | 4,291,383 | |
Operating Segments [Member] | Manufacturing [Member] | |||||
Revenues | 7,783,888 | 7,499,619 | 19,070,069 | 19,662,432 | |
Operating Segments [Member] | Retail [Member] | |||||
Revenues | 320,011 | 248,164 | 1,081,103 | 1,082,279 | |
Operating Segments [Member] | U-Swirl Segment [Member] | |||||
Revenues | 1,009,360 | 1,293,843 | 4,438,630 | 5,476,052 | |
Operating Segments [Member] | Other Segments [Member] | |||||
Revenues | 0 | 0 | |||
Intersegment Eliminations [Member] | |||||
Revenues | (360,675) | (393,563) | (914,244) | (1,066,257) | |
Intersegment Eliminations [Member] | Franchising [Member] | |||||
Revenues | (1,248) | (1,238) | (4,000) | (3,953) | |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||||
Revenues | (359,427) | (392,325) | (910,244) | (1,062,304) | |
Intersegment Eliminations [Member] | Retail [Member] | |||||
Revenues | 0 | 0 | |||
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||||
Revenues | 0 | 0 | |||
Intersegment Eliminations [Member] | Other Segments [Member] | |||||
Revenues | $ 0 | $ 0 |
Note 8 - Goodwill and Intangi41
Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Amortization of Intangible Assets | $ 316,529 | $ 277,839 |
Note 8 - Goodwill and Intangi42
Note 8 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2016 | Feb. 29, 2016 | |
Intangible assets subject to amortization, gross carrying value | $ 7,453,125 | $ 7,146,102 |
Intangible assets subject to amortization, accumulated amortization | 1,890,226 | 1,573,697 |
Intangible assets not subject to amortization, gross carrying value | 1,709,328 | 1,709,328 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 662,384 | 662,384 |
Total Intangible Assets | 9,162,453 | 8,855,430 |
Total Intangible Assets | 2,552,610 | 2,236,081 |
Company Stores Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 1,099,328 | 1,099,328 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 267,020 | 267,020 |
Franchising Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 295,000 | 295,000 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 197,682 | 197,682 |
Manufacturing Segment Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 295,000 | 295,000 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 197,682 | 197,682 |
Trademarks [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 20,000 | 20,000 |
Intangible assets not subject to amortization, accumulated goodwill impairment | ||
Store Design [Member] | ||
Amortization Period (Year) | 10 years | |
Intangible assets subject to amortization, gross carrying value | $ 220,778 | 220,778 |
Intangible assets subject to amortization, accumulated amortization | 210,778 | 209,653 |
Packaging Licenses [Member] | ||
Intangible assets subject to amortization, gross carrying value | 120,830 | 120,830 |
Intangible assets subject to amortization, accumulated amortization | $ 120,830 | 120,830 |
Packaging Licenses [Member] | Minimum [Member] | ||
Amortization Period (Year) | 3 years | |
Packaging Licenses [Member] | Maximum [Member] | ||
Amortization Period (Year) | 5 years | |
Packaging Design [Member] | ||
Amortization Period (Year) | 10 years | |
Intangible assets subject to amortization, gross carrying value | $ 430,973 | 430,973 |
Intangible assets subject to amortization, accumulated amortization | 430,973 | 430,973 |
Trademarks and Non Competition Agreement [Member] | ||
Intangible assets subject to amortization, gross carrying value | 715,339 | 459,340 |
Intangible assets subject to amortization, accumulated amortization | $ 81,985 | 51,423 |
Trademarks and Non Competition Agreement [Member] | Minimum [Member] | ||
Amortization Period (Year) | 5 years | |
Trademarks and Non Competition Agreement [Member] | Maximum [Member] | ||
Amortization Period (Year) | 20 years | |
Franchise Rights [Member] | ||
Amortization Period (Year) | 20 years | |
Intangible assets subject to amortization, gross carrying value | $ 5,965,205 | 5,914,181 |
Intangible assets subject to amortization, accumulated amortization | $ 1,045,660 | $ 760,818 |
Note 8 - Goodwill and Intangi43
Note 8 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Nov. 30, 2016USD ($) |
2,017 | $ 110,421 |
2,018 | 444,917 |
2,019 | 451,348 |
2,020 | 438,191 |
2,021 | 426,481 |
Thereafter | 3,691,541 |
Total | $ 5,562,899 |
Note 9 - Related Party Transa44
Note 9 - Related Party Transactions (Details Textual) - Immediate Family Member of Management or Principal Owner [Member] | 9 Months Ended |
Nov. 30, 2016USD ($) | |
Related Party Transaction, Expenses from Transactions with Related Party | $ 47,222 |
Increase (Decrease) in Accounts Payable, Related Parties | $ 0 |
Note 10 - Restructuring and A45
Note 10 - Restructuring and Acquisition Related Charges (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Nov. 30, 2015 | Nov. 30, 2016 | Nov. 30, 2015 | |
Restructuring Charges | $ 0 | $ 0 | |
Lease Settlement Costs [Member] | |||
Restructuring Charges | $ 60,000 |
Note 11 - Sale or Distributio46
Note 11 - Sale or Distribution of Assets (Details Textual) | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Number of Restaurants Sold | 2 | 1 |
Note 11 - Sale or Distributio47
Note 11 - Sale or Distribution of Assets - Asset Disposal Activity (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2016 | Nov. 30, 2015 | |
Notes receivable | $ 145,585 | $ 264,433 |
Note 12 - Note Payable - Long-t
Note 12 - Note Payable - Long-term Note Payable (Details) - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 |
Total minimum payments | $ 4,149,339 | $ 5,085,133 |
Less: current maturities | (1,290,099) | (1,254,007) |
Long-term obligations | $ 2,859,240 | $ 3,831,126 |
Note 12 - Note Payable - Annual
Note 12 - Note Payable - Annual Maturities of Notes Payable (Details) - USD ($) | Nov. 30, 2016 | Feb. 29, 2016 |
2,017 | $ 317,620 | |
2,018 | 1,302,503 | |
2,019 | 1,352,897 | |
2,020 | 1,176,319 | |
Total minimum payments | 4,149,339 | $ 5,085,133 |
Less: current maturities | (1,290,099) | (1,254,007) |
Long-term obligations | $ 2,859,240 | $ 3,831,126 |
Note 13 - Contingencies (Detail
Note 13 - Contingencies (Details Textual) - USD ($) | 1 Months Ended | 2 Months Ended | |
Feb. 28, 2015 | Aug. 31, 2015 | Feb. 29, 2016 | |
Business Combination Shortfall Payment | $ 1,800,000 | ||
CherryBerry [Member] | USwirl Inc [Member] | |||
Stock Issued During Period, Shares, Acquisitions | 4,000,000 | ||
Lock-up Agreement | 1 year | ||
Business Combination, Contingent Consideration, Sale of Stock, Price Per Share | $ 0.50 | ||
Requested Shortfall Payment | $ 205,000 |