Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 31, 2018 | Oct. 01, 2018 | |
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) | 5,948,660 | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Revenues | ||||
Total revenues | $ 7,800,088 | $ 8,266,691 | $ 16,166,173 | $ 17,613,138 |
Costs and Expenses | ||||
Cost of sales | 3,883,884 | 3,852,471 | 8,549,126 | 8,867,436 |
Sales and marketing | 565,212 | 566,031 | 1,153,462 | 1,192,383 |
General and administrative | 813,388 | 976,647 | 1,727,835 | 2,105,353 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $138,212, $127,882, $274,717 and $253,497, respectively, included in cost of sales | 296,737 | 194,990 | 597,737 | 389,924 |
Restructuring and acquisition related charges | 118,793 | 0 | 176,981 | 0 |
Total costs and expenses | 6,759,668 | 6,765,473 | 14,342,517 | 14,818,046 |
Income from Operations | 1,040,420 | 1,501,218 | 1,823,656 | 2,795,092 |
Other Income (Expense) | ||||
Interest Expense | (19,418) | (32,088) | (42,057) | (67,277) |
Interest Income | 4,627 | 6,213 | 9,204 | 13,431 |
Other income (expense), net | (14,791) | (25,875) | (32,853) | (53,846) |
Income Before Income Taxes | 1,025,629 | 1,475,343 | 1,790,803 | 2,741,246 |
Income Tax Provision | 274,814 | 547,059 | 463,044 | 999,290 |
Consolidated Net Income | $ 750,815 | $ 928,284 | $ 1,327,759 | $ 1,741,956 |
Basic Earnings per Common Share (in dollars per share) | $ 0.13 | $ 0.16 | $ 0.22 | $ 0.30 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.13 | $ 0.16 | $ 0.22 | $ 0.29 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 5,923,351 | 5,876,727 | 5,914,383 | 5,865,549 |
Dilutive Effect of Employee Stock Awards (in shares) | 59,479 | 104,776 | 68,536 | 114,071 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 5,982,830 | 5,981,503 | 5,982,919 | 5,979,620 |
Product [Member] | ||||
Revenues | ||||
Total revenues | $ 5,736,319 | $ 6,063,381 | $ 12,318,368 | $ 13,270,320 |
Franchise and Royalty Fees [Member] | ||||
Revenues | ||||
Total revenues | 2,063,769 | 2,203,310 | 3,847,805 | 4,342,818 |
Franchise [Member] | ||||
Costs and Expenses | ||||
Costs | 582,798 | 558,407 | 1,076,048 | 1,073,199 |
Retail [Member] | ||||
Costs and Expenses | ||||
Costs | $ 498,856 | $ 616,927 | $ 1,061,328 | $ 1,189,751 |
Consolidated Statements of In_2
Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Depreciation and amortization expense | $ 138,212 | $ 127,882 | $ 274,717 | $ 253,497 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Aug. 31, 2018 | Feb. 28, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 5,173,235 | $ 6,072,984 |
Accounts receivable, less allowance for doubtful accounts of $520,262 and $479,472, respectively | 3,458,476 | 3,897,334 |
Notes receivable, current portion, less current portion of the valuation allowance of $12,500 and $9,000, respectively | 73,025 | 105,540 |
Refundable income taxes | 85,178 | 342,863 |
Inventories, less reserve for slow moving inventory of $364,248 and $357,706, respectively | 6,009,845 | 4,842,474 |
Other | 464,477 | 310,173 |
Total current assets | 15,264,236 | 15,571,368 |
Property and Equipment, Net | 5,855,990 | 6,166,240 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $14,000 and $17,500, respectively | 199,642 | 235,983 |
Goodwill, net | 1,046,944 | 1,046,944 |
Franchise rights, net | 4,056,424 | 4,433,927 |
Intangible assets, net | 542,307 | 587,377 |
Deferred income taxes | 494,555 | 835,463 |
Other | 70,116 | 63,333 |
Total other assets | 6,409,988 | 7,203,027 |
Total Assets | 27,530,214 | 28,940,635 |
Current Liabilities | ||
Current maturities of long-term debt | 1,378,601 | 1,352,893 |
Accounts payable | 1,351,295 | 1,647,991 |
Accrued salaries and wages | 648,005 | 644,005 |
Gift card liabilities | 688,572 | 3,057,131 |
Other accrued expenses | 184,310 | 325,034 |
Dividend payable | 713,839 | 708,652 |
Deferred revenue | 291,676 | 471,910 |
Total current liabilities | 5,256,298 | 8,207,616 |
Long-Term Debt, Less Current Maturities | 480,372 | 1,176,416 |
Deferred Revenue, Less Current Portion | 1,125,017 | |
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, 46,000,000 shares authorized, 5,948,660 shares and 5,903,436 shares issued and outstanding, respectively | 5,949 | 5,903 |
Additional paid-in capital | 6,411,829 | 6,131,147 |
Retained earnings | 14,250,749 | 13,419,553 |
Total stockholders' equity | 20,668,527 | 19,556,603 |
Total Liabilities and Stockholders' Equity | $ 27,530,214 | $ 28,940,635 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Aug. 31, 2018 | Feb. 28, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 520,262 | $ 479,472 |
Notes receivable, current portion of valuation allowance | 12,500 | 9,000 |
Inventories, reserve | 364,248 | 357,706 |
Notes receivable, valuation allowance | $ 14,000 | $ 17,500 |
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) | 5,948,660 | 5,903,436 |
Common stock, shares outstanding (in shares) | 5,948,660 | 5,903,436 |
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 ($) | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net Income | $ 1,327,759 | $ 1,741,956 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 872,454 | 643,421 |
Provision for obsolete inventory | 57,614 | 43,660 |
Provision for loss on accounts and notes receivable | 40,800 | 58,800 |
Asset impairment and store closure losses | 67,822 | |
Loss on sale or disposal of property and equipment | 26,020 | 17,912 |
Expense recorded for stock compensation | 280,728 | 324,480 |
Deferred income taxes | 38,814 | 61,987 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 421,162 | 756,766 |
Refundable income taxes | 257,685 | (125,447) |
Inventories | (1,579,686) | (1,421,625) |
Other current assets | (154,537) | (131,457) |
Accounts payable | 58,005 | 56,151 |
Accrued liabilities | (254,540) | 76,776 |
Deferred income | (71,671) | 85,270 |
Net cash provided by operating activities | 1,388,429 | 2,188,650 |
Cash Flows from Investing Activities | ||
Addition to notes receivable | (14,292) | |
Proceeds received on notes receivable | 55,612 | 135,733 |
Purchase of intangible assets | (8,508) | |
Proceeds from (cost of) sale or distribution of assets | 4,023 | (9,576) |
Purchases of property and equipment | (246,455) | (283,988) |
(Increase) decrease in other assets | (13,717) | 7,697 |
Net cash used in investing activities | (200,537) | (172,934) |
Cash Flows from Financing Activities | ||
Payments on long-term debt | (670,336) | (645,564) |
Dividends paid | (1,417,305) | (1,405,050) |
Net cash used in financing activities | (2,087,641) | (2,050,614) |
Net Decrease in Cash and Cash Equivalents | (899,749) | (34,898) |
Cash and Cash Equivalents, Beginning of Period | 6,072,984 | 5,779,195 |
Cash and Cash Equivalents, End of Period | $ 5,173,235 | $ 5,744,297 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 6 Months Ended |
Aug. 31, 2018 | |
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., a Nevada corporation (“U-Swirl”), and its 46% February 29, 2016 The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, In January 2013, two January 2013, 60% 46% August 31, 2018 February 29, 2016, In fiscal year (“FY”) 2014, February 29, 2016 February 29, 2016, February 29, 2016. August 31, 2018, no U-Swirl operates self-serve frozen yogurt cafés under the names “U-Swirl,” “Yogurtini,” “CherryBerry,” “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 operating under the Rocky Mountain Chocolate Factory brand and frozen yogurt cafés as of August 31, 2018: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 3 3 Franchise stores - Domestic stores and kiosks 7 182 189 International license stores 1 67 68 Cold Stone Creamery - co-branded 9 89 98 U-Swirl (Including all associated brands) - Company-owned stores - 1 1 Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores* * 95 95 Franchise stores - Domestic - co-branded* * 11 11 International license stores - 1 1 Total 17 452 469 *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 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. 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 six August 31, 2018 not 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 28, 2018. Subsequent Events Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no Recent Accounting Pronouncements In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2020 2016 13 In February 2016, 2016 02, 842 840 December 15, 2018, 2016 02 2016 02 not 2016 02 In May 2014, No. 2014 09, 606” 605, 606 not not February 28, 2018, not March 1, 2018, 10 15 The Company adopted ASC 606 March 1, 2018, not 12 |
Note 2 - Earnings Per Share
Note 2 - Earnings Per Share | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 2 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 the settlement of restricted stock units. 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 | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3 Inventories consist of the following: August 31, 2018 February 28, 2018 Ingredients and supplies $ 2,828,131 $ 2,764,727 Finished candy 3,487,938 2,371,610 U-Swirl, Inc. food and packaging 58,024 63,843 Reserve for slow moving inventory (364,248 ) (357,706 ) Total inventories $ 6,009,845 $ 4,842,474 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 Property and equipment at August 31, 2018 February 28, 2018 August 31, 2018 February 28, 2018 Land $ 513,618 $ 513,618 Building 4,803,445 4,905,103 Machinery and equipment 10,180,006 10,686,631 Furniture and fixtures 890,766 1,067,788 Leasehold improvements 1,187,856 1,568,260 Transportation equipment 422,458 434,091 Asset impairment (77,891 ) (62,891 ) 17,920,258 19,112,600 Less accumulated depreciation (12,064,268 ) (12,946,360 ) Property and equipment, net $ 5,855,990 $ 6,166,240 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 5 Cash Dividend The Company paid a quarterly cash dividend of $0.12 March 16, 2018 March 6, 2018. $0.12 June 15, 2018 June 5, 2018. $0.12 August 16, 2018, September 14, 2018 September 4, 2018. 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 Board of Directors may not Stock Repurchases On July 15, 2014, $3.0 January 13, 2015, $2,058,000 May 21, 2015, $2,090,000 not three six August 31, 2018. August 31, 2018, $638,000 Stock-Based Compensation At August 31, 2018, The Company recognized $124,921 $280,728 three six August 31, 2018, $190,065 $324,480 three six August 31, 2017, The following table summarizes restricted stock unit activity during the six August 31, 2018 2017: Six Months Ended August 31, 2018 2017 Outstanding non-vested restricted stock units as of February 28: 77,594 123,658 Granted - - Vested (43,224 ) (44,064 ) Cancelled/forfeited (200 ) (1,360 ) Outstanding non-vested restricted stock units as of August 31: 34,170 78,234 Weighted average grant date fair value $ 12.05 $ 12.17 Weighted average remaining vesting period (in years) 0.88 1.76 The Company issued 2,000 six August 31, 2018 no six August 31, 2017. $24,480 $0 six August 31, 2018 2017, During the three August 31, 2017, 5,000 $59,100 three August 31, 2017. No no three August 31, 2018. During the three six August 31, 2018, $124,921 $256,248, 17% 20% five six six August 31, 2018 2017, 43,224 44,064 August 31, 2018 $361,905, 0.9 The Company has no August 31, 2018. |
Note 6 - Supplemental Cash Flow
Note 6 - Supplemental Cash Flow Information | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 6 Six Months Ended August 31, 2018 2017 Cash paid for: Interest, net $ 33,006 $ 53,345 Income taxes 166,545 1,062,750 Non-cash Operating Activities Accrued Inventory 96,454 325,922 Non-cash Financing Activities Dividend payable $ 713,839 $ 708,412 |
Note 7 - Operating Segments
Note 7 - Operating Segments | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 7 The Company classifies its business interests into five 1 1 10 February 28, 2018. Three Months Ended August 31, 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,470,486 $ 5,032,787 $ 298,359 $ 1,250,905 $ - $ 8,052,537 Intersegment revenues (1,732 ) (250,717 ) - - - (252,449 ) Revenue from external customers 1,468,754 4,782,070 298,359 1,250,905 - 7,800,088 Segment profit (loss) 693,383 1,070,613 (120,262 ) 229,818 (847,923 ) 1,025,629 Total assets 1,199,536 13,332,652 1,011,649 5,920,971 6,065,406 27,530,214 Capital expenditures 6 61,152 1,734 9,966 43,025 115,883 Total depreciation & amortization $ 11,631 $ 142,697 $ 11,179 $ 241,033 $ 28,409 $ 434,949 Three Months Ended August 31, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,492,673 $ 5,211,974 $ 484,963 $ 1,408,678 $ - $ 8,598,288 Intersegment revenues (1,109 ) (330,488 ) - - - (331,597 ) Revenue from external customers 1,491,564 4,881,486 484,963 1,408,678 - 8,266,691 Segment profit (loss) 667,702 1,309,468 32,498 413,642 (947,967 ) 1,475,343 Total assets 1,236,795 13,014,273 1,166,435 9,055,699 4,981,613 29,454,815 Capital expenditures 5,636 169,538 12,736 3,208 16,144 207,262 Total depreciation & amortization $ 11,554 $ 132,144 $ 3,832 $ 143,188 $ 32,154 $ 322,872 Six Months Ended August 31, 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 2,783,691 $ 10,903,302 $ 659,794 $ 2,384,159 $ - $ 16,730,946 Intersegment revenues (2,767 ) (562,006 ) - - - (564,773 ) Revenue from external customers 2,780,924 10,341,296 659,794 2,384,159 - 16,166,173 Segment profit (loss) 1,182,654 2,239,948 (198,756 ) 364,973 (1,798,016 ) 1,790,803 Total assets 1,199,536 13,332,652 1,011,649 5,920,971 6,065,406 27,530,214 Capital expenditures 3,535 172,917 3,805 13,304 52,894 246,455 Total depreciation & amortization $ 23,556 $ 283,724 $ 23,854 $ 485,084 $ 56,236 $ 872,454 Six Months Ended August 31, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 3,099,159 $ 11,710,184 $ 846,990 $ 2,603,987 $ - $ 18,260,320 Intersegment revenues (2,415 ) (644,767 ) - - - (647,182 ) Revenue from external customers 3,096,744 11,065,417 846,990 2,603,987 - 17,613,138 Segment profit (loss) 1,430,391 2,696,507 (3,933 ) 653,838 (2,035,557 ) 2,741,246 Total assets 1,236,795 13,014,273 1,166,435 9,055,699 4,981,613 29,454,815 Capital expenditures 5,636 218,598 16,336 5,824 37,594 283,988 Total depreciation & amortization $ 22,946 $ 262,006 $ 7,658 $ 286,278 $ 64,533 $ 643,421 Revenue from one $1.4 8.8 six August 31, 2018, $2.2 12.3 six August 31, 2017. |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8 Intangible assets consist of the following: August 31, 2018 February 28, 2018 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 213,403 $ 220,778 $ 212,653 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 - 20 715,339 180,407 715,339 136,087 Franchise rights 20 5,979,637 1,923,213 5,979,637 1,545,710 Total 7,467,557 2,868,826 7,467,557 2,446,253 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 $ 9,176,885 $ 3,531,210 $ 9,176,885 $ 3,108,637 Effective March 1, 2002, 350, no not March 1, 2002. Amortization expense related to intangible assets totaled $422,573 $221,381 six August 31, 2018 2017, At August 31, 2018, 2019 $ 421,474 2020 706,177 2021 594,229 2022 490,060 2023 411,607 Thereafter 1,975,184 Total $ 4,598,731 |
Note 9 - Restructuring and Acqu
Note 9 - Restructuring and Acquisition Related Charges | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 9 Restructuring charges incurred were the result of closing certain underperforming Company-owned locations during the three six August 31, 2018. $118,793 $176,981 three six August 31, 2018, The Company did not three six August 31, 2017. |
Note 10 - Sale or Distribution
Note 10 - Sale or Distribution of Assets | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Sale or Distribution of Assets [Text Block] | NOTE 10 During the three August 31, 2017, two one six August 31, 2018 2017: 2018 2017 Notes receivable $ - $ 62,609 |
Note 11 - Note Payable
Note 11 - Note Payable | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 11 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 August 31, 2018 February 28, 2018, August 31, 2018 February 28, 2018 Promissory note $ 1,858,973 $ 2,529,309 Less: current maturities (1,378,601 ) (1,352,893 ) Long-term obligations $ 480,372 $ 1,176,416 The following table summarizes annual maturities of our notes payable as of August 31, 2018: Amount 2019 $ 682,533 2020 1,176,440 Total minimum payments 1,858,973 Less: current maturities (1,378,601 ) Long-term obligations $ 480,372 |
Note 12 - Adoption of ASU 2014-
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 12 2014 09, 606” As described in Note 1, March 1, 2018, 606. 606 not not Initial Franchise Fees, License Fees, Transfer Fees and Renewal Fees The Company's policy for recognizing initial franchise and renewal fees through February 28, 2018, not March 1, 2018, 10 15 Gift Cards The Company’s franchisees sell gift cards which do not not 606 not 606 Impact to Prior Periods The cumulative adjustment recorded upon adoption of ASC 606 $1,022,720, $2,250,743 $302,094 not 606 March 1, 2018: Amount Increase in deferred revenue $ (1,022,720 ) Reduction in gift card liabilities 2,250,743 Adjustment to deferred income tax assets (302,094 ) Cumulative increase to retained earnings $ 925,929 The Company adopted ASC 606 March 1, 2018, not The adoption of ASC 606 CONSOLIDATED BALANCE SHEET AS OF FEBRUARY 28, 2018 Previously Reported Adjustments Restated Assets Current Assets Cash and cash equivalents $ 6,072,984 $ - $ 6,072,984 Accounts receivable, net 3,897,334 - 3,897,334 Notes receivable, current portion, net 105,540 - 105,540 Refundable income taxes 342,863 - 342,863 Inventories, net 4,842,474 - 4,842,474 Other 310,173 - 310,173 Total current assets 15,571,368 - 15,571,368 Property and Equipment, Net 6,166,240 - 6,166,240 Other Assets Notes receivable, less current portion, net 235,983 - 235,983 Goodwill, net 1,046,944 - 1,046,944 Franchise rights, net 4,433,927 - 4,433,927 Intangible assets, net 587,377 - 587,377 Deferred income taxes 835,463 (302,094 ) 533,369 Other 63,333 - 63,333 Total other assets 7,203,027 (302,094 ) 6,900,933 Total Assets $ 28,940,635 $ (302,094 ) $ 28,638,541 Liabilities and Stockholders' Equity Current Liabilities Current maturities of long-term debt $ 1,352,893 - $ 1,352,893 Accounts payable 1,647,991 - 1,647,991 Accrued salaries and wages 644,005 - 644,005 Gift card liabilities 3,057,131 (2,250,743 ) 806,388 Other accrued expenses 325,034 - 325,034 Dividend payable 708,652 - 708,652 Deferred revenue 471,910 (143,445 ) 328,465 Total current liabilities 8,207,616 (2,394,188 ) 5,813,428 Long-Term Debt, Less Current Maturities 1,176,416 - 1,176,416 Deferred Revenue, Less Current Portion - 1,166,165 1,166,165 Commitments and Contingencies Stockholders' Equity Preferred stock Common stock 5,903 - 5,903 Additional paid-in capital 6,131,147 - 6,131,147 Retained earnings 13,419,553 925,929 14,345,482 Total stockholders' equity 19,556,603 925,929 20,482,532 Total Liabilities and Stockholders' Equity $ 28,940,635 $ (302,094 ) $ 28,638,541 The following table contains a reconciliation of revenue reported for the current period and revenue had the Company reported under the prior method for revenue recognition: Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Franchise Fees contained within the Statement of Income: $ 107,538 $ 163,000 $ 200,673 $ 412,125 Adjustment required to conform revenue to prior period method: (18,538 ) - (10,173 ) - Comparable franchise fees: $ 89,000 $ 163,000 $ 190,500 $ 412,125 At August 31, 2018, not 2019 $ 127,919 2020 246,670 2021 196,548 2022 184,300 2023 170,171 Thereafter 491,084 Total $ 1,416,692 |
Note 13 - Disaggregation of Rev
Note 13 - Disaggregation of Revenue | 6 Months Ended |
Aug. 31, 2018 | |
Notes to Financial Statements | |
Disaggregation of Revenue [Text Block] | NOTE 13 The following table presents disaggregated revenue by method of recognition and segment: Three Months Ended August 31, 2018 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 36,005 $ - $ - $ 71,533 $ 107,538 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 4,782,070 - - 4,782,070 Retail sales - - 298,359 655,890 954,249 Royalty and marketing fees 1,432,749 - - 523,482 1,956,231 Total $ 1,468,754 $ 4,782,070 $ 298,359 $ 1,250,905 $ 7,800,088 Six Months Ended August 31, 2018 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Revenues recognized over time under ASC 606: Franchise fees $ 110,521 $ - $ - $ 90,152 $ 200,673 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 10,341,296 - - 10,341,296 Retail sales - - 659,794 1,317,278 1,977,072 Royalty and marketing fees 2,670,403 - - 976,729 3,647,132 Total $ 2,780,924 $ 10,341,296 $ 659,794 $ 2,384,159 $ 16,166,173 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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., a Nevada corporation (“U-Swirl”), and its 46% February 29, 2016 The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, In January 2013, two January 2013, 60% 46% August 31, 2018 February 29, 2016, In fiscal year (“FY”) 2014, February 29, 2016 February 29, 2016, February 29, 2016. August 31, 2018, no U-Swirl operates self-serve frozen yogurt cafés under the names “U-Swirl,” “Yogurtini,” “CherryBerry,” “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 operating under the Rocky Mountain Chocolate Factory brand and frozen yogurt cafés as of August 31, 2018: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 3 3 Franchise stores - Domestic stores and kiosks 7 182 189 International license stores 1 67 68 Cold Stone Creamery - co-branded 9 89 98 U-Swirl (Including all associated brands) - Company-owned stores - 1 1 Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores* * 95 95 Franchise stores - Domestic - co-branded* * 11 11 International license stores - 1 1 Total 17 452 469 *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 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. 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 six August 31, 2018 not 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 28, 2018. |
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 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2020 2016 13 In February 2016, 2016 02, 842 840 December 15, 2018, 2016 02 2016 02 not 2016 02 In May 2014, No. 2014 09, 606” 605, 606 not not February 28, 2018, not March 1, 2018, 10 15 The Company adopted ASC 606 March 1, 2018, not 12 |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Number of Stores [Table Text Block] | Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 3 3 Franchise stores - Domestic stores and kiosks 7 182 189 International license stores 1 67 68 Cold Stone Creamery - co-branded 9 89 98 U-Swirl (Including all associated brands) - Company-owned stores - 1 1 Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores* * 95 95 Franchise stores - Domestic - co-branded* * 11 11 International license stores - 1 1 Total 17 452 469 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | August 31, 2018 February 28, 2018 Ingredients and supplies $ 2,828,131 $ 2,764,727 Finished candy 3,487,938 2,371,610 U-Swirl, Inc. food and packaging 58,024 63,843 Reserve for slow moving inventory (364,248 ) (357,706 ) Total inventories $ 6,009,845 $ 4,842,474 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment, Net (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | August 31, 2018 February 28, 2018 Land $ 513,618 $ 513,618 Building 4,803,445 4,905,103 Machinery and equipment 10,180,006 10,686,631 Furniture and fixtures 890,766 1,067,788 Leasehold improvements 1,187,856 1,568,260 Transportation equipment 422,458 434,091 Asset impairment (77,891 ) (62,891 ) 17,920,258 19,112,600 Less accumulated depreciation (12,064,268 ) (12,946,360 ) Property and equipment, net $ 5,855,990 $ 6,166,240 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Six Months Ended August 31, 2018 2017 Outstanding non-vested restricted stock units as of February 28: 77,594 123,658 Granted - - Vested (43,224 ) (44,064 ) Cancelled/forfeited (200 ) (1,360 ) Outstanding non-vested restricted stock units as of August 31: 34,170 78,234 Weighted average grant date fair value $ 12.05 $ 12.17 Weighted average remaining vesting period (in years) 0.88 1.76 |
Note 6 - Supplemental Cash Fl_2
Note 6 - Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Six Months Ended August 31, 2018 2017 Cash paid for: Interest, net $ 33,006 $ 53,345 Income taxes 166,545 1,062,750 Non-cash Operating Activities Accrued Inventory 96,454 325,922 Non-cash Financing Activities Dividend payable $ 713,839 $ 708,412 |
Note 7 - Operating Segments (Ta
Note 7 - Operating Segments (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended August 31, 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,470,486 $ 5,032,787 $ 298,359 $ 1,250,905 $ - $ 8,052,537 Intersegment revenues (1,732 ) (250,717 ) - - - (252,449 ) Revenue from external customers 1,468,754 4,782,070 298,359 1,250,905 - 7,800,088 Segment profit (loss) 693,383 1,070,613 (120,262 ) 229,818 (847,923 ) 1,025,629 Total assets 1,199,536 13,332,652 1,011,649 5,920,971 6,065,406 27,530,214 Capital expenditures 6 61,152 1,734 9,966 43,025 115,883 Total depreciation & amortization $ 11,631 $ 142,697 $ 11,179 $ 241,033 $ 28,409 $ 434,949 Three Months Ended August 31, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,492,673 $ 5,211,974 $ 484,963 $ 1,408,678 $ - $ 8,598,288 Intersegment revenues (1,109 ) (330,488 ) - - - (331,597 ) Revenue from external customers 1,491,564 4,881,486 484,963 1,408,678 - 8,266,691 Segment profit (loss) 667,702 1,309,468 32,498 413,642 (947,967 ) 1,475,343 Total assets 1,236,795 13,014,273 1,166,435 9,055,699 4,981,613 29,454,815 Capital expenditures 5,636 169,538 12,736 3,208 16,144 207,262 Total depreciation & amortization $ 11,554 $ 132,144 $ 3,832 $ 143,188 $ 32,154 $ 322,872 Six Months Ended August 31, 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 2,783,691 $ 10,903,302 $ 659,794 $ 2,384,159 $ - $ 16,730,946 Intersegment revenues (2,767 ) (562,006 ) - - - (564,773 ) Revenue from external customers 2,780,924 10,341,296 659,794 2,384,159 - 16,166,173 Segment profit (loss) 1,182,654 2,239,948 (198,756 ) 364,973 (1,798,016 ) 1,790,803 Total assets 1,199,536 13,332,652 1,011,649 5,920,971 6,065,406 27,530,214 Capital expenditures 3,535 172,917 3,805 13,304 52,894 246,455 Total depreciation & amortization $ 23,556 $ 283,724 $ 23,854 $ 485,084 $ 56,236 $ 872,454 Six Months Ended August 31, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 3,099,159 $ 11,710,184 $ 846,990 $ 2,603,987 $ - $ 18,260,320 Intersegment revenues (2,415 ) (644,767 ) - - - (647,182 ) Revenue from external customers 3,096,744 11,065,417 846,990 2,603,987 - 17,613,138 Segment profit (loss) 1,430,391 2,696,507 (3,933 ) 653,838 (2,035,557 ) 2,741,246 Total assets 1,236,795 13,014,273 1,166,435 9,055,699 4,981,613 29,454,815 Capital expenditures 5,636 218,598 16,336 5,824 37,594 283,988 Total depreciation & amortization $ 22,946 $ 262,006 $ 7,658 $ 286,278 $ 64,533 $ 643,421 |
Note 8 - Goodwill and Intangi_2
Note 8 - Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | August 31, 2018 February 28, 2018 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 213,403 $ 220,778 $ 212,653 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 - 20 715,339 180,407 715,339 136,087 Franchise rights 20 5,979,637 1,923,213 5,979,637 1,545,710 Total 7,467,557 2,868,826 7,467,557 2,446,253 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 $ 9,176,885 $ 3,531,210 $ 9,176,885 $ 3,108,637 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2019 $ 421,474 2020 706,177 2021 594,229 2022 490,060 2023 411,607 Thereafter 1,975,184 Total $ 4,598,731 |
Note 10 - Sale or Distributio_2
Note 10 - Sale or Distribution of Assets (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Sale or Distribution of Assets [Table Text Block] | <table border="0" cellpadding="0" cellspacing="0" style="margin-right: 15%; margin-left: 45pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 64%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Notes receivable</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">62,609</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div>" id="sjs-B4"><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="margin-right: 15%; margin-left: 45pt; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2018</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 64%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Notes receivable</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 15%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">62,609</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div> |
Note 11 - Note Payable (Tables)
Note 11 - Note Payable (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | August 31, 2018 February 28, 2018 Promissory note $ 1,858,973 $ 2,529,309 Less: current maturities (1,378,601 ) (1,352,893 ) Long-term obligations $ 480,372 $ 1,176,416 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Amount 2019 $ 682,533 2020 1,176,440 Total minimum payments 1,858,973 Less: current maturities (1,378,601 ) Long-term obligations $ 480,372 |
Note 12 - Adoption of ASU 201_2
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Amount Increase in deferred revenue $ (1,022,720 ) Reduction in gift card liabilities 2,250,743 Adjustment to deferred income tax assets (302,094 ) Cumulative increase to retained earnings $ 925,929 CONSOLIDATED BALANCE SHEET AS OF FEBRUARY 28, 2018 Previously Reported Adjustments Restated Assets Current Assets Cash and cash equivalents $ 6,072,984 $ - $ 6,072,984 Accounts receivable, net 3,897,334 - 3,897,334 Notes receivable, current portion, net 105,540 - 105,540 Refundable income taxes 342,863 - 342,863 Inventories, net 4,842,474 - 4,842,474 Other 310,173 - 310,173 Total current assets 15,571,368 - 15,571,368 Property and Equipment, Net 6,166,240 - 6,166,240 Other Assets Notes receivable, less current portion, net 235,983 - 235,983 Goodwill, net 1,046,944 - 1,046,944 Franchise rights, net 4,433,927 - 4,433,927 Intangible assets, net 587,377 - 587,377 Deferred income taxes 835,463 (302,094 ) 533,369 Other 63,333 - 63,333 Total other assets 7,203,027 (302,094 ) 6,900,933 Total Assets $ 28,940,635 $ (302,094 ) $ 28,638,541 Liabilities and Stockholders' Equity Current Liabilities Current maturities of long-term debt $ 1,352,893 - $ 1,352,893 Accounts payable 1,647,991 - 1,647,991 Accrued salaries and wages 644,005 - 644,005 Gift card liabilities 3,057,131 (2,250,743 ) 806,388 Other accrued expenses 325,034 - 325,034 Dividend payable 708,652 - 708,652 Deferred revenue 471,910 (143,445 ) 328,465 Total current liabilities 8,207,616 (2,394,188 ) 5,813,428 Long-Term Debt, Less Current Maturities 1,176,416 - 1,176,416 Deferred Revenue, Less Current Portion - 1,166,165 1,166,165 Commitments and Contingencies Stockholders' Equity Preferred stock Common stock 5,903 - 5,903 Additional paid-in capital 6,131,147 - 6,131,147 Retained earnings 13,419,553 925,929 14,345,482 Total stockholders' equity 19,556,603 925,929 20,482,532 Total Liabilities and Stockholders' Equity $ 28,940,635 $ (302,094 ) $ 28,638,541 |
Reconciliation of Revenue Reported for Periods Prior to the Adoption of ASC 606 [Table Text Block] | Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Franchise Fees contained within the Statement of Income: $ 107,538 $ 163,000 $ 200,673 $ 412,125 Adjustment required to conform revenue to prior period method: (18,538 ) - (10,173 ) - Comparable franchise fees: $ 89,000 $ 163,000 $ 190,500 $ 412,125 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 2019 $ 127,919 2020 246,670 2021 196,548 2022 184,300 2023 170,171 Thereafter 491,084 Total $ 1,416,692 |
Note 13 - Disaggregation of R_2
Note 13 - Disaggregation of Revenue (Tables) | 6 Months Ended |
Aug. 31, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended August 31, 2018 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 36,005 $ - $ - $ 71,533 $ 107,538 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 4,782,070 - - 4,782,070 Retail sales - - 298,359 655,890 954,249 Royalty and marketing fees 1,432,749 - - 523,482 1,956,231 Total $ 1,468,754 $ 4,782,070 $ 298,359 $ 1,250,905 $ 7,800,088 Six Months Ended August 31, 2018 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Revenues recognized over time under ASC 606: Franchise fees $ 110,521 $ - $ - $ 90,152 $ 200,673 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 10,341,296 - - 10,341,296 Retail sales - - 659,794 1,317,278 1,977,072 Royalty and marketing fees 2,670,403 - - 976,729 3,647,132 Total $ 2,780,924 $ 10,341,296 $ 659,794 $ 2,384,159 $ 16,166,173 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) - USD ($) | Aug. 31, 2018 | Mar. 01, 2018 | Feb. 28, 2018 | Aug. 31, 2017 | Jan. 31, 2013 |
Assets, Total | $ 27,530,214 | $ 28,638,541 | $ 28,940,635 | $ 29,454,815 | |
Minimum [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 10 years | 10 years | |||
Maximum [Member] | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 15 years | 15 years | |||
USwirl Inc [Member] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 46.00% | ||||
Equity Method Investment, Ownership Percentage | 46.00% | 60.00% | |||
USwirl Inc [Member] | Operating Assets [Member] | |||||
Assets, Total | $ 0 |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | Aug. 31, 2018 | |
Number of stores | 469 | |
Sold Not Yet Open [Member] | ||
Number of stores | 17 | |
Open [Member] | ||
Number of stores | 452 | |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 3 | |
Company Owned Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 1 | |
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 | 3 | |
Company Owned Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 1 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 189 | |
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 | 182 | |
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 68 | |
International License Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 1 | |
International License Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 1 | |
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 | 67 | |
International License Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 1 | |
Cold Stone Creamery - Co-Branded [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 98 | |
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 9 | |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 89 | |
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 | 95 | |
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 | 95 | |
Franchise Stores - Domestic Stores - Co-Branded [Member] | USwirl Inc [Member] | ||
Number of stores | 11 | |
Franchise Stores - Domestic Stores - Co-Branded [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | [1] | |
Franchise Stores - Domestic Stores - Co-Branded [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 11 | |
[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 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | Aug. 31, 2018 | Mar. 01, 2018 | Feb. 28, 2018 |
Ingredients and supplies | $ 2,828,131 | $ 2,764,727 | |
Finished candy | 3,487,938 | 2,371,610 | |
U-Swirl, Inc. food and packaging | 58,024 | 63,843 | |
Reserve for slow moving inventory | (364,248) | (357,706) | |
Total inventories | $ 6,009,845 | $ 4,842,474 | $ 4,842,474 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Aug. 31, 2018 | Feb. 28, 2018 | Mar. 01, 2018 | |
Property, plant and equipment, gross | $ 17,920,258 | $ 19,112,600 | |
Asset impairment | (77,891) | (62,891) | |
Less accumulated depreciation | (12,064,268) | (12,946,360) | |
Property and equipment, net | 5,855,990 | 6,166,240 | $ 6,166,240 |
Land [Member] | |||
Property, plant and equipment, gross | 513,618 | 513,618 | |
Building [Member] | |||
Property, plant and equipment, gross | 4,803,445 | 4,905,103 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment, gross | 10,180,006 | 10,686,631 | |
Furniture and Fixtures [Member] | |||
Property, plant and equipment, gross | 890,766 | 1,067,788 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment, gross | 1,187,856 | 1,568,260 | |
Transportation Equipment [Member] | |||
Property, plant and equipment, gross | $ 422,458 | $ 434,091 |
Note 5 - Stockholders' Equity_2
Note 5 - Stockholders' Equity (Details Textual) - USD ($) | Aug. 16, 2018 | Jun. 15, 2018 | Mar. 16, 2018 | Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | May 21, 2015 | Jan. 13, 2015 | Jul. 15, 2014 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.12 | $ 0.12 | $ 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 | 0 | ||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 638,000 | $ 638,000 | ||||||||
Allocated Share-based Compensation Expense, Total | $ 124,921 | $ 190,065 | $ 280,728 | $ 324,480 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 0 | 0 | ||||||||
Independent Contractor [Member] | ||||||||||
Allocated Share-based Compensation Expense, Total | $ 59,100 | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 5,000 | |||||||||
Unrestricted Shares of Stock [Member] | ||||||||||
Allocated Share-based Compensation Expense, Total | $ 24,480 | $ 0 | ||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 2,000 | 0 | ||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Allocated Share-based Compensation Expense, Total | $ 124,921 | $ 256,248 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 43,224 | 44,064 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 361,905 | $ 361,905 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 328 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 - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Outstanding non-vested restricted stock units as of February 28: (in shares) | 77,594 | 123,658 |
Granted (in shares) | ||
Vested (in shares) | (43,224) | (44,064) |
Cancelled/forfeited (in shares) | (200) | (1,360) |
Outstanding non-vested restricted stock units as of August 31: (in shares) | 34,170 | 78,234 |
Weighted average grant date fair value (in dollars per share) | $ 12.05 | $ 12.17 |
Weighted average remaining vesting period (in years) (Year) | 321 days | 1 year 277 days |
Note 6 - Supplemental Cash Fl_3
Note 6 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Interest, net | $ 33,006 | $ 53,345 |
Income taxes | 166,545 | 1,062,750 |
Accrued Inventory | 96,454 | 325,922 |
Dividend payable | $ 713,839 | $ 708,412 |
Note 7 - Operating Segments (De
Note 7 - Operating Segments (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | Aug. 31, 2018USD ($) | Aug. 31, 2017USD ($) | |
Number of Reportable Segments | 5 | |||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 7,800,088 | $ 8,266,691 | $ 16,166,173 | $ 17,613,138 |
Manufacturing [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 4,782,070 | $ 4,881,486 | $ 10,341,296 | 11,065,417 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | ||||
Number of Major Customers | 1 | |||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 1,400,000 | $ 2,200,000 | ||
Concentration Risk, Percentage | 8.80% | 12.30% |
Note 7 - Operating Segments - S
Note 7 - Operating Segments - Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | Mar. 01, 2018 | Feb. 28, 2018 | |
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 7,800,088 | $ 8,266,691 | $ 16,166,173 | $ 17,613,138 | ||
Segment profit (loss) | 1,025,629 | 1,475,343 | 1,790,803 | 2,741,246 | ||
Assets, Total | 27,530,214 | 29,454,815 | 27,530,214 | 29,454,815 | $ 28,638,541 | $ 28,940,635 |
Capital expenditures | 115,883 | 207,262 | 246,455 | 283,988 | ||
Total depreciation and amortization | 434,949 | 322,872 | 872,454 | 643,421 | ||
Franchising [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,468,754 | 1,491,564 | 2,780,924 | 3,096,744 | ||
Segment profit (loss) | 693,383 | 667,702 | 1,182,654 | 1,430,391 | ||
Assets, Total | 1,199,536 | 1,236,795 | 1,199,536 | 1,236,795 | ||
Capital expenditures | 6 | 5,636 | 3,535 | 5,636 | ||
Total depreciation and amortization | 11,631 | 11,554 | 23,556 | 22,946 | ||
Manufacturing [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 4,782,070 | 4,881,486 | 10,341,296 | 11,065,417 | ||
Segment profit (loss) | 1,070,613 | 1,309,468 | 2,239,948 | 2,696,507 | ||
Assets, Total | 13,332,652 | 13,014,273 | 13,332,652 | 13,014,273 | ||
Capital expenditures | 61,152 | 169,538 | 172,917 | 218,598 | ||
Total depreciation and amortization | 142,697 | 132,144 | 283,724 | 262,006 | ||
Retail Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 298,359 | 484,963 | 659,794 | 846,990 | ||
Segment profit (loss) | (120,262) | 32,498 | (198,756) | (3,933) | ||
Assets, Total | 1,011,649 | 1,166,435 | 1,011,649 | 1,166,435 | ||
Capital expenditures | 1,734 | 12,736 | 3,805 | 16,336 | ||
Total depreciation and amortization | 11,179 | 3,832 | 23,854 | 7,658 | ||
U-Swirl Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,250,905 | 1,408,678 | 2,384,159 | 2,603,987 | ||
Segment profit (loss) | 229,818 | 413,642 | 364,973 | 653,838 | ||
Assets, Total | 5,920,971 | 9,055,699 | 5,920,971 | 9,055,699 | ||
Capital expenditures | 9,966 | 3,208 | 13,304 | 5,824 | ||
Total depreciation and amortization | 241,033 | 143,188 | 485,084 | 286,278 | ||
Other Segments [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 0 | 0 | 0 | |||
Segment profit (loss) | (847,923) | (947,967) | (1,798,016) | (2,035,557) | ||
Assets, Total | 6,065,406 | 4,981,613 | 6,065,406 | 4,981,613 | ||
Capital expenditures | 43,025 | 16,144 | 52,894 | 37,594 | ||
Total depreciation and amortization | 28,409 | 32,154 | 56,236 | 64,533 | ||
Operating Segments [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 8,052,537 | 8,598,288 | 16,730,946 | 18,260,320 | ||
Operating Segments [Member] | Franchising [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,470,486 | 1,492,673 | 2,783,691 | 3,099,159 | ||
Operating Segments [Member] | Manufacturing [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 5,032,787 | 5,211,974 | 10,903,302 | 11,710,184 | ||
Operating Segments [Member] | Retail Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 298,359 | 484,963 | 659,794 | 846,990 | ||
Operating Segments [Member] | U-Swirl Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,250,905 | 1,408,678 | 2,384,159 | 2,603,987 | ||
Operating Segments [Member] | Other Segments [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 0 | 0 | 0 | |||
Intersegment Eliminations [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | (252,449) | (331,597) | (564,773) | (647,182) | ||
Intersegment Eliminations [Member] | Franchising [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | (1,732) | (1,109) | (2,767) | (2,415) | ||
Intersegment Eliminations [Member] | Manufacturing [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | (250,717) | (330,488) | (562,006) | (644,767) | ||
Intersegment Eliminations [Member] | Retail Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 0 | 0 | 0 | 0 | ||
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 0 | 0 | 0 | 0 | ||
Intersegment Eliminations [Member] | Other Segments [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 0 | $ 0 | $ 0 | $ 0 |
Note 8 - Goodwill and Intangi_3
Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Amortization of Intangible Assets, Total | $ 422,573 | $ 221,381 |
Note 8 - Goodwill and Intangi_4
Note 8 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Aug. 31, 2018 | Feb. 28, 2018 | |
Intangible assets subject to amortization, gross carrying value | $ 7,467,557 | $ 7,467,557 |
Intangible assets subject to amortization, accumulated amortization | 2,868,826 | 2,446,253 |
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 | 9,176,885 | 9,176,885 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 3,531,210 | 3,108,637 |
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 | 213,403 | 212,653 |
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 | 715,339 |
Intangible assets subject to amortization, accumulated amortization | $ 180,407 | 136,087 |
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 | $ 5,979,637 | 5,979,637 |
Intangible assets subject to amortization, accumulated amortization | $ 1,923,213 | $ 1,545,710 |
Note 8 - Goodwill and Intangi_5
Note 8 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Aug. 31, 2018USD ($) |
2,019 | $ 421,474 |
2,020 | 706,177 |
2,021 | 594,229 |
2,022 | 490,060 |
2,023 | 411,607 |
Thereafter | 1,975,184 |
Total | $ 4,598,731 |
Note 9 - Restructuring and Ac_2
Note 9 - Restructuring and Acquisition Related Charges (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Restructuring Charges, Total | $ 118,793 | $ 0 | $ 176,981 | $ 0 |
Note 10 - Sale or Distributio_3
Note 10 - Sale or Distribution of Assets (Details Textual) | 3 Months Ended |
Aug. 31, 2017 | |
Number of Restaurants Acquired | 2 |
Number of Restaurants Sold | 1 |
Note 10 - Sale or Distributio_4
Note 10 - Sale or Distribution of Assets - Asset Disposal Activity (Details) - USD ($) | 6 Months Ended | |
Aug. 31, 2018 | Aug. 31, 2017 | |
Notes receivable | $ 62,609 |
Note 11 - Note Payable - Long-t
Note 11 - Note Payable - Long-term Note Payable (Details) - USD ($) | Aug. 31, 2018 | Mar. 01, 2018 | Feb. 28, 2018 |
Promissory note | $ 1,858,973 | $ 2,529,309 | |
Less: current maturities | (1,378,601) | $ (1,352,893) | (1,352,893) |
Long-term obligations | $ 480,372 | $ 1,176,416 | $ 1,176,416 |
Note 11 - Note Payable - Annual
Note 11 - Note Payable - Annual Maturities of Notes Payable (Details) - USD ($) | Aug. 31, 2018 | Mar. 01, 2018 | Feb. 28, 2018 |
2,019 | $ 682,533 | ||
2,020 | 1,176,440 | ||
Total minimum payments | 1,858,973 | ||
Less: current maturities | (1,378,601) | $ (1,352,893) | $ (1,352,893) |
Long-term obligations | $ 480,372 | $ 1,176,416 | $ 1,176,416 |
Note 12 - Adoption of ASU 201_3
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") (Details Textual) - USD ($) | Aug. 31, 2018 | Mar. 01, 2018 | Feb. 28, 2018 |
Gift Card Liability, Current | $ 688,572 | $ 806,388 | $ 3,057,131 |
Deferred Tax Assets, Net, Noncurrent | $ 494,555 | 533,369 | $ 835,463 |
Contract with Customer, Asset, Net, Total | 0 | ||
Accounting Standards Update 2014-09 [Member] | |||
Contract with Customer, Liability, Net | 1,022,720 | ||
Gift Card Liability, Current | (2,250,743) | ||
Deferred Tax Assets, Net, Noncurrent | $ 302,094 | ||
Minimum [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 10 years | 10 years | |
Maximum [Member] | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 15 years | 15 years |
Note 12 - Adoption of ASU 201_4
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") - Adjustments to the Consolidated Financial Statements Upon Adoption of ASC 606 (Details) - USD ($) | Mar. 01, 2018 | Aug. 31, 2018 | Feb. 28, 2018 | Aug. 31, 2017 | Feb. 28, 2017 |
Gift Card Liability, Current | $ 806,388 | $ 688,572 | $ 3,057,131 | ||
Adjustment to deferred income tax assets | 533,369 | 494,555 | 835,463 | ||
Current Assets | |||||
Cash and cash equivalents | 6,072,984 | 5,173,235 | 6,072,984 | $ 5,744,297 | $ 5,779,195 |
Accounts receivable, net | 3,897,334 | 3,458,476 | 3,897,334 | ||
Notes receivable, current portion, net | 105,540 | 73,025 | 105,540 | ||
Refundable income taxes | 342,863 | 85,178 | 342,863 | ||
Inventories, net | 4,842,474 | 6,009,845 | 4,842,474 | ||
Other | 310,173 | 464,477 | 310,173 | ||
Total current assets | 15,571,368 | 15,264,236 | 15,571,368 | ||
Property and Equipment, Net | 6,166,240 | 5,855,990 | 6,166,240 | ||
Other Assets | |||||
Notes receivable, less current portion, net | 235,983 | 199,642 | 235,983 | ||
Goodwill, net | 1,046,944 | 1,046,944 | 1,046,944 | ||
Franchise rights, net | 4,433,927 | 4,056,424 | 4,433,927 | ||
Intangible assets, net | 587,377 | 542,307 | 587,377 | ||
Deferred income taxes | 533,369 | 494,555 | 835,463 | ||
Other | 63,333 | 70,116 | 63,333 | ||
Total other assets | 6,900,933 | 6,409,988 | 7,203,027 | ||
Total Assets | 28,638,541 | 27,530,214 | 28,940,635 | $ 29,454,815 | |
Current Liabilities | |||||
Current maturities of long-term debt | 1,352,893 | 1,378,601 | 1,352,893 | ||
Accounts payable | 1,647,991 | 1,351,295 | 1,647,991 | ||
Accrued salaries and wages | 644,005 | 648,005 | 644,005 | ||
Gift card liabilities | 806,388 | 688,572 | 3,057,131 | ||
Other accrued expenses | 325,034 | 184,310 | 325,034 | ||
Dividend payable | 708,652 | 713,839 | 708,652 | ||
Deferred revenue | 328,465 | 291,676 | 471,910 | ||
Total current liabilities | 5,813,428 | 5,256,298 | 8,207,616 | ||
Long-Term Debt, Less Current Maturities | 1,176,416 | 480,372 | 1,176,416 | ||
Deferred Revenue, Less Current Portion | 1,166,165 | 1,125,017 | |||
Stockholders' Equity | |||||
Common stock | 5,903 | 5,949 | 5,903 | ||
Additional paid-in capital | 6,131,147 | 6,411,829 | 6,131,147 | ||
Retained earnings | 14,345,482 | 14,250,749 | 13,419,553 | ||
Total stockholders' equity | 20,482,532 | 20,668,527 | 19,556,603 | ||
Total Liabilities and Stockholders' Equity | 28,638,541 | $ 27,530,214 | $ 28,940,635 | ||
Accounting Standards Update 2014-09 [Member] | |||||
Increase in deferred revenue | (1,022,720) | ||||
Gift Card Liability, Current | (2,250,743) | ||||
Adjustment to deferred income tax assets | 302,094 | ||||
Cumulative increase to retained earnings | 925,929 | ||||
Current Assets | |||||
Cash and cash equivalents | |||||
Accounts receivable, net | |||||
Notes receivable, current portion, net | |||||
Refundable income taxes | |||||
Inventories, net | |||||
Other | |||||
Total current assets | |||||
Property and Equipment, Net | |||||
Other Assets | |||||
Notes receivable, less current portion, net | |||||
Goodwill, net | |||||
Franchise rights, net | |||||
Intangible assets, net | |||||
Deferred income taxes | 302,094 | ||||
Other | |||||
Total other assets | (302,094) | ||||
Total Assets | (302,094) | ||||
Current Liabilities | |||||
Current maturities of long-term debt | |||||
Accounts payable | |||||
Accrued salaries and wages | |||||
Gift card liabilities | (2,250,743) | ||||
Other accrued expenses | |||||
Dividend payable | |||||
Deferred revenue | (143,445) | ||||
Total current liabilities | (2,394,188) | ||||
Long-Term Debt, Less Current Maturities | |||||
Deferred Revenue, Less Current Portion | 1,166,165 | ||||
Stockholders' Equity | |||||
Common stock | |||||
Additional paid-in capital | |||||
Retained earnings | 925,929 | ||||
Total stockholders' equity | 925,929 | ||||
Total Liabilities and Stockholders' Equity | $ (302,094) |
Note 12 - Adoption of ASU 201_5
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") - Reconciliation of Revenue Reported for Period Prior to Adoption of ASC 606 (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 7,800,088 | $ 8,266,691 | $ 16,166,173 | $ 17,613,138 |
Franchise Fees [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 89,000 | 163,000 | 190,500 | 412,125 |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Franchise Fees [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 107,538 | 163,000 | 200,673 | 412,125 |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Franchise Fees [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ (18,538) | $ (10,173) |
Note 12 - Adoption of ASU 201_6
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") - Remaining Performance Obligation (Details) | Aug. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-01 | |
Remaining performance obligation | $ 127,919 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-01 | |
Remaining performance obligation | 246,670 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-01 | |
Remaining performance obligation | 196,548 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | |
Remaining performance obligation | 184,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-01 | |
Remaining performance obligation | 170,171 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-01 | |
Remaining performance obligation | 491,084 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Remaining performance obligation | $ 1,416,692 |
Note 13 - Disaggregation of R_3
Note 13 - Disaggregation of Revenue - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2018 | Aug. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2017 | |
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 7,800,088 | $ 8,266,691 | $ 16,166,173 | $ 17,613,138 |
Franchising [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,468,754 | 1,491,564 | 2,780,924 | 3,096,744 |
Manufacturing [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 4,782,070 | 4,881,486 | 10,341,296 | 11,065,417 |
Retail Segment [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 298,359 | 484,963 | 659,794 | 846,990 |
USwirl Inc [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,250,905 | 2,384,159 | ||
Factory Sales [Member] | Transferred at Point in Time [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 4,782,070 | 10,341,296 | ||
Factory Sales [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Factory Sales [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 4,782,070 | 10,341,296 | ||
Factory Sales [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Factory Sales [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Retail [Member] | Transferred at Point in Time [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 954,249 | 1,977,072 | ||
Retail [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Retail [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Retail [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 298,359 | 659,794 | ||
Retail [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 655,890 | 1,317,278 | ||
Franchise Fees [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 89,000 | $ 163,000 | 190,500 | $ 412,125 |
Franchise Fees [Member] | Transferred over Time [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 107,538 | 200,673 | ||
Franchise Fees [Member] | Transferred over Time [Member] | Franchising [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 36,005 | 110,521 | ||
Franchise Fees [Member] | Transferred over Time [Member] | Manufacturing [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Franchise Fees [Member] | Transferred over Time [Member] | Retail Segment [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Franchise Fees [Member] | Transferred over Time [Member] | USwirl Inc [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 71,533 | 90,152 | ||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,956,231 | 3,647,132 | ||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,432,749 | 2,670,403 | ||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | ||||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 523,482 | $ 976,729 |