Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Nov. 30, 2018 | Jan. 10, 2019 | |
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 | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 5,948,660 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
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, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Revenues | ||||
Total revenues | $ 8,949,747 | $ 9,961,572 | $ 25,115,920 | $ 27,574,710 |
Costs and Expenses | ||||
Cost of sales | 5,700,352 | 6,040,004 | 14,249,478 | 14,907,440 |
Sales and marketing | 519,176 | 593,033 | 1,672,638 | 1,785,416 |
General and administrative | 860,916 | 827,215 | 2,588,751 | 2,932,568 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $139,971, $134,350, $414,689 and $387,849, respectively, included in cost of sales | 281,815 | 201,939 | 879,552 | 591,863 |
Restructuring charges | 0 | 0 | 176,981 | 0 |
Total costs and expenses | 8,271,373 | 8,762,111 | 22,613,890 | 23,580,157 |
Income from Operations | 678,374 | 1,199,461 | 2,502,030 | 3,994,553 |
Other Income (Expense) | ||||
Interest Expense | (16,032) | (28,661) | (58,089) | (95,938) |
Interest Income | 4,758 | 6,396 | 13,962 | 19,827 |
Other expense, net | (11,274) | (22,265) | (44,127) | (76,111) |
Income Before Income Taxes | 667,100 | 1,177,196 | 2,457,903 | 3,918,442 |
Income Tax Provision | 141,739 | 426,140 | 604,783 | 1,425,430 |
Consolidated Net Income | $ 525,361 | $ 751,056 | $ 1,853,120 | $ 2,493,012 |
Basic Earnings per Common Share (in dollars per share) | $ 0.09 | $ 0.13 | $ 0.31 | $ 0.42 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.09 | $ 0.13 | $ 0.31 | $ 0.42 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 5,948,660 | 5,903,436 | 5,925,725 | 5,878,086 |
Dilutive Effect of Employee Stock Awards (in shares) | 34,170 | 78,029 | 57,165 | 102,145 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 5,982,830 | 5,981,465 | 5,982,890 | 5,980,231 |
Product [Member] | ||||
Revenues | ||||
Total revenues | $ 7,583,327 | $ 8,351,583 | $ 19,901,695 | $ 21,621,903 |
Franchise and Royalty Fees [Member] | ||||
Revenues | ||||
Total revenues | 1,366,420 | 1,609,989 | 5,214,225 | 5,952,807 |
Franchise [Member] | ||||
Costs and Expenses | ||||
Costs | 463,056 | 515,149 | 1,539,104 | 1,588,348 |
Retail [Member] | ||||
Costs and Expenses | ||||
Costs | $ 446,058 | $ 584,771 | $ 1,507,386 | $ 1,774,522 |
Consolidated Statements of In_2
Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Depreciation and amortization expense | $ 139,971 | $ 134,350 | $ 414,689 | $ 387,849 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 4,211,939 | $ 6,072,984 |
Accounts receivable, less allowance for doubtful accounts of $567,585 and $479,472, respectively | 4,902,276 | 3,897,334 |
Notes receivable, current portion, less current portion of the valuation allowance of $14,400 and $9,000, respectively | 94,101 | 105,540 |
Refundable income taxes | 25,070 | 342,863 |
Inventories, less reserve for slow moving inventory of $320,293 and $357,706, respectively | 5,677,946 | 4,842,474 |
Other | 420,546 | 310,173 |
Total current assets | 15,331,878 | 15,571,368 |
Property and Equipment, Net | 5,886,321 | 6,166,240 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $12,100 and $17,500, respectively | 230,298 | 235,983 |
Goodwill, net | 1,046,944 | 1,046,944 |
Franchise rights, net | 3,867,673 | 4,433,927 |
Intangible assets, net | 519,772 | 587,377 |
Deferred income taxes | 627,697 | 835,463 |
Other | 56,576 | 63,333 |
Total other assets | 6,348,960 | 7,203,027 |
Total Assets | 27,567,159 | 28,940,635 |
Current Liabilities | ||
Current maturities of long-term debt | 1,391,854 | 1,352,893 |
Accounts payable | 1,504,321 | 1,647,991 |
Accrued salaries and wages | 862,074 | 644,005 |
Gift card liabilities | 696,578 | 3,057,131 |
Other accrued expenses | 274,854 | 325,034 |
Dividend payable | 713,839 | 708,652 |
Deferred revenue | 296,868 | 471,910 |
Total current liabilities | 5,740,388 | 8,207,616 |
Long-Term Debt, Less Current Maturities | 127,515 | 1,176,416 |
Deferred Revenue, Less Current Portion | 1,116,280 | |
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 | 6,514,756 | 6,131,147 |
Retained earnings | 14,062,271 | 13,419,553 |
Total stockholders' equity | 20,582,976 | 19,556,603 |
Total Liabilities and Stockholders' Equity | $ 27,567,159 | $ 28,940,635 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Nov. 30, 2018 | Feb. 28, 2018 |
Accounts receivable, allowance for doubtful accounts | $ 567,585 | $ 479,472 |
Notes receivable, current portion of valuation allowance | 14,400 | 9,000 |
Inventories, reserve | 320,293 | 357,706 |
Notes receivable, valuation allowance | $ 12,100 | $ 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 ($) | 9 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Cash Flows From Operating Activities | ||
Net Income | $ 1,853,120 | $ 2,493,012 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,294,241 | 979,712 |
Provision for obsolete inventory | 85,207 | 82,738 |
Provision for loss on accounts and notes receivable | 88,200 | 88,200 |
Asset impairment and store closure losses | 67,822 | |
Loss on sale or disposal of property and equipment | 28,813 | 20,630 |
Expense recorded for stock compensation | 383,655 | 458,275 |
Deferred income taxes | (94,328) | (444,747) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,136,471) | (1,307,149) |
Refundable income taxes | 317,793 | 42,808 |
Inventories | (1,471,361) | (990,398) |
Other current assets | (110,645) | (26,641) |
Accounts payable | 407,012 | (135,269) |
Accrued liabilities | 58,079 | 362,718 |
Deferred income | (72,084) | 23,769 |
Net cash provided by operating activities | 1,699,053 | 1,647,658 |
Cash Flows from Investing Activities | ||
Addition to notes receivable | (14,292) | |
Proceeds received on notes receivable | 73,880 | 194,646 |
Purchase of intangible assets | (8,508) | |
Proceeds from (cost of) sale or distribution of assets | 13,498 | (7,926) |
Purchases of property and equipment | (498,252) | (446,935) |
(Increase) decrease in other assets | (8,140) | 8,963 |
Net cash used in investing activities | (419,014) | (274,052) |
Cash Flows from Financing Activities | ||
Payments on long-term debt | (1,009,940) | (972,421) |
Dividends paid | (2,131,144) | (2,113,462) |
Net cash used in financing activities | (3,141,084) | (3,085,883) |
Net Decrease in Cash and Cash Equivalents | (1,861,045) | (1,712,277) |
Cash and Cash Equivalents, Beginning of Period | 6,072,984 | 5,779,195 |
Cash and Cash Equivalents, End of Period | $ 4,211,939 | $ 4,066,918 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 9 Months Ended |
Nov. 30, 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% November 30, 2018 February 29, 2016, In fiscal year (“FY”) 2014, February 29, 2016 February 29, 2016, February 29, 2016. November 30, 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 November 30, 2018: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 7 182 189 International license stores 1 66 67 Cold Stone Creamery - co-branded 10 91 101 U-Swirl (Including all associated brands) - Company-owned stores - 1 1 Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores* * 90 90 Franchise stores - Domestic - co-branded* * 11 11 International license stores - 1 1 Total 18 447 465 *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 nine November 30, 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 August 2018, No. 33 10532, 10 November 5, 2018. 105.09” 105.09 not first 10 November 30, 2018 May 31, 2019 10 not 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 10% 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 | 9 Months Ended |
Nov. 30, 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 | 9 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3 Inventories consist of the following: November 30, 2018 February 28, 2018 Ingredients and supplies $ 3,090,255 $ 2,764,727 Finished candy 2,846,499 2,371,610 U-Swirl food and packaging 61,485 63,843 Reserve for slow moving inventory (320,293 ) (357,706 ) Total inventories $ 5,677,946 $ 4,842,474 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 9 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 Property and equipment at November 30, 2018 February 28, 2018 November 30, 2018 February 28, 2018 Land $ 513,618 $ 513,618 Building 4,823,225 4,905,103 Machinery and equipment 10,382,898 10,686,631 Furniture and fixtures 878,452 1,067,788 Leasehold improvements 1,131,659 1,568,260 Transportation equipment 422,458 434,091 Asset impairment (30,000 ) (62,891 ) 18,122,310 19,112,600 Less accumulated depreciation (12,235,989 ) (12,946,360 ) Property and equipment, net $ 5,886,321 $ 6,166,240 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 9 Months Ended |
Nov. 30, 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 September 14, 2018 September 4, 2018. $0.12 November 13, 2018, December 7, 2018 November 23, 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 nine November 30, 2018. November 30, 2018, $638,000 Stock-Based Compensation Under the Company’s 2007 “2007 may The Company recognized $102,927 $383,655 three nine November 30, 2018, $133,795 $458,275 three nine November 30, 2017, The following table summarizes restricted stock unit activity during the nine November 30, 2018 2017: Nine Months Ended November 30, 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 ) (1,700 ) Outstanding non-vested restricted stock units as of November 30: 34,170 77,894 Weighted average grant date fair value $ 12.05 $ 12.17 Weighted average remaining vesting period (in years) 0.63 1.52 The Company granted 2,000 nine November 30, 2018 no nine November 30, 2017. $24,480 $0 nine November 30, 2018 2017, During the nine November 30, 2017, 5,000 2007 $59,100 nine November 30, 2017. No no nine November 30, 2018. During the three nine November 30, 2018, $102,927 $359,175, 17% 20% five six nine November 30, 2018 2017, 43,224 44,064 November 30, 2018 $258,978, 0.6 The Company has no November 30, 2018. |
Note 6 - Supplemental Cash Flow
Note 6 - Supplemental Cash Flow Information | 9 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 6 Nine Months Ended November 30, Cash paid for: 2018 2017 Interest, net $ 44,971 $ 76,291 Income taxes 381,318 1,827,369 Non-cash Operating Activities Accrued Inventory 292,435 334,853 Non-cash Financing Activities Dividend payable $ 713,839 $ 708,412 |
Note 7 - Operating Segments
Note 7 - Operating Segments | 9 Months Ended |
Nov. 30, 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 November 30, 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,062,942 $ 7,193,761 $ 282,023 $ 743,647 $ - $ 9,282,373 Intersegment revenues (865 ) (331,761 ) - - - (332,626 ) Revenue from external customers 1,062,077 6,862,000 282,023 743,647 - 8,949,747 Segment profit (loss) 344,945 1,324,220 (13,732 ) (174,089 ) (814,244 ) 667,100 Total assets 1,067,265 14,713,087 1,029,203 5,463,340 5,294,264 27,567,159 Capital expenditures - 243,043 3,796 1,631 3,327 251,797 Total depreciation & amortization $ 11,617 $ 144,436 $ 5,631 $ 235,446 $ 24,656 $ 421,786 Three Months Ended November 30, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,242,855 $ 7,948,925 $ 366,049 $ 842,554 $ - $ 10,400,383 Intersegment revenues (1,228 ) (437,583 ) - - - (438,811 ) Revenue from external customers 1,241,627 7,511,342 366,049 842,554 - 9,961,572 Segment profit (loss) 423,213 1,664,643 (86,741 ) (14,587 ) (809,332 ) 1,177,196 Total assets 1,106,155 14,748,965 1,236,501 8,202,628 4,038,968 29,333,217 Capital expenditures 881 124,312 15,182 4,967 17,605 162,947 Total depreciation & amortization $ 11,644 $ 138,618 $ 10,543 $ 143,304 $ 32,180 $ 336,289 Nine Months Ended November 30, 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 3,846,633 $ 18,097,063 $ 941,817 $ 3,127,806 $ - $ 26,013,319 Intersegment revenues (3,632 ) (893,767 ) - - - (897,399 ) Revenue from external customers 3,843,001 17,203,296 941,817 3,127,806 - 25,115,920 Segment profit (loss) 1,527,599 3,564,168 (117,488 ) 190,884 (2,707,260 ) 2,457,903 Total assets 1,067,265 14,713,087 1,029,203 5,463,340 5,294,264 27,567,159 Capital expenditures 3,535 415,960 7,601 14,935 56,221 498,252 Total depreciation & amortization $ 35,173 $ 428,161 $ 29,485 $ 720,530 $ 80,892 $ 1,294,241 Nine Months Ended November 30, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,342,013 $ 19,659,108 $ 1,213,039 $ 3,446,543 $ - $ 28,660,703 Intersegment revenues (3,643 ) (1,082,350 ) - - - (1,085,993 ) Revenue from external customers 4,338,370 18,576,758 1,213,039 3,446,543 - 27,574,710 Segment profit (loss) 1,853,604 4,361,150 (90,674 ) 639,251 (2,844,889 ) 3,918,442 Total assets 1,106,155 14,748,965 1,236,501 8,202,628 4,038,968 29,333,217 Capital expenditures 6,517 342,910 31,518 10,791 55,199 446,935 Total depreciation & amortization $ 34,590 $ 400,624 $ 18,202 $ 429,582 $ 96,714 $ 979,712 Revenue from one $1.8 7.1 nine November 30, 2018, $2.8 10.3 nine November 30, 2017. |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 9 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8 Intangible assets consist of the following: November 30, 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 $ 213,778 $ 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 - 20 715,339 202,567 715,339 136,087 Franchise rights 20 5,979,637 2,111,964 5,979,637 1,545,710 Total 7,467,557 3,080,112 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 $ 3,742,496 $ 9,176,885 $ 3,108,637 Effective March 1, 2002, 350, no not March 1, 2002. Amortization expense related to intangible assets totaled $634,131 $332,100 nine November 30, 2018 2017, At November 30, 2018, 2019 $ 210,187 2020 706,177 2021 594,229 2022 490,060 2023 411,607 Thereafter 1,975,185 Total $ 4,387,445 |
Note 9 - Restructuring and Acqu
Note 9 - Restructuring and Acquisition Related Charges | 9 Months Ended |
Nov. 30, 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 nine November 30, 2018. $0 $176,981 three nine November 30, 2018, The Company did not three nine November 30, 2017. |
Note 10 - Sale or Distribution
Note 10 - Sale or Distribution of Assets | 9 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Sale or Distribution of Assets [Text Block] | NOTE 10 During the nine November 30, 2017, two one nine November 30, 2018 2017 2018 2017 Notes receivable $ - $ 56,610 |
Note 11 - Note Payable
Note 11 - Note Payable | 9 Months Ended |
Nov. 30, 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 November 30, 2018 February 28, 2018, November 30, 2018 February 28, 2018 Promissory note $ 1,519,369 $ 2,529,309 Less: current maturities (1,391,854 ) (1,352,893 ) Long-term obligations $ 127,515 $ 1,176,416 The following table summarizes annual maturities of our notes payable as of November 30, 2018: Amount 2019 $ 342,905 2020 1,176,464 Total minimum payments 1,519,369 Less: current maturities (1,391,854 ) Long-term obligations $ 127,515 |
Note 12 - Adoption of ASU 2014-
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") | 9 Months Ended |
Nov. 30, 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 November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Franchise Fees contained within the Statement of Income: $ 61,662 $ 150,900 $ 262,335 $ 563,000 Adjustment required to conform revenue to prior period method: (9,162 ) - (19,335 ) - Comparable franchise fees: $ 52,500 $ 150,900 $ 243,000 $ 563,000 On November 30, 2018, not 2019 $ 65,420 2020 256,120 2021 203,398 2022 189,850 2023 175,721 Thereafter 522,639 Total $ 1,413,148 |
Note 13 - Disaggregation of Rev
Note 13 - Disaggregation of Revenue | 9 Months Ended |
Nov. 30, 2018 | |
Notes to Financial Statements | |
Disaggregation of Revenue [Text Block] | NOTE 13 The following table presents disaggregated revenue by the method of recognition and segment: Three Months Ended November 30, 2018 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 44,172 $ - $ - $ 17,490 $ 61,662 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 6,862,000 - - 6,862,000 Retail sales - - 282,023 439,304 721,327 Royalty and marketing fees 1,017,905 - - 286,853 1,304,758 Total $ 1,062,077 $ 6,862,000 $ 282,023 $ 743,647 $ 8,949,747 Nine Months Ended November 30, 2018 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Revenues recognized over time under ASC 606: Franchise fees $ 154,693 $ - $ - $ 107,642 $ 262,335 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 17,203,296 - - 17,203,296 Retail sales - - 941,817 1,756,582 2,698,399 Royalty and marketing fees 3,688,308 - - 1,263,582 4,951,890 Total $ 3,843,001 $ 17,203,296 $ 941,817 $ 3,127,806 $ 25,115,920 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 30, 2018 | |
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. 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, 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 August 2018, No. 33 10532, 10 November 5, 2018. 105.09” 105.09 not first 10 November 30, 2018 May 31, 2019 10 not 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 10% 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) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Number of Stores [Table Text Block] | Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 7 182 189 International license stores 1 66 67 Cold Stone Creamery - co-branded 10 91 101 U-Swirl (Including all associated brands) - Company-owned stores - 1 1 Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores* * 90 90 Franchise stores - Domestic - co-branded* * 11 11 International license stores - 1 1 Total 18 447 465 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | November 30, 2018 February 28, 2018 Ingredients and supplies $ 3,090,255 $ 2,764,727 Finished candy 2,846,499 2,371,610 U-Swirl food and packaging 61,485 63,843 Reserve for slow moving inventory (320,293 ) (357,706 ) Total inventories $ 5,677,946 $ 4,842,474 |
Note 4 - Property and Equipme_2
Note 4 - Property and Equipment, Net (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | November 30, 2018 February 28, 2018 Land $ 513,618 $ 513,618 Building 4,823,225 4,905,103 Machinery and equipment 10,382,898 10,686,631 Furniture and fixtures 878,452 1,067,788 Leasehold improvements 1,131,659 1,568,260 Transportation equipment 422,458 434,091 Asset impairment (30,000 ) (62,891 ) 18,122,310 19,112,600 Less accumulated depreciation (12,235,989 ) (12,946,360 ) Property and equipment, net $ 5,886,321 $ 6,166,240 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Nine Months Ended November 30, 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 ) (1,700 ) Outstanding non-vested restricted stock units as of November 30: 34,170 77,894 Weighted average grant date fair value $ 12.05 $ 12.17 Weighted average remaining vesting period (in years) 0.63 1.52 |
Note 6 - Supplemental Cash Fl_2
Note 6 - Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Nine Months Ended November 30, Cash paid for: 2018 2017 Interest, net $ 44,971 $ 76,291 Income taxes 381,318 1,827,369 Non-cash Operating Activities Accrued Inventory 292,435 334,853 Non-cash Financing Activities Dividend payable $ 713,839 $ 708,412 |
Note 7 - Operating Segments (Ta
Note 7 - Operating Segments (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended November 30, 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,062,942 $ 7,193,761 $ 282,023 $ 743,647 $ - $ 9,282,373 Intersegment revenues (865 ) (331,761 ) - - - (332,626 ) Revenue from external customers 1,062,077 6,862,000 282,023 743,647 - 8,949,747 Segment profit (loss) 344,945 1,324,220 (13,732 ) (174,089 ) (814,244 ) 667,100 Total assets 1,067,265 14,713,087 1,029,203 5,463,340 5,294,264 27,567,159 Capital expenditures - 243,043 3,796 1,631 3,327 251,797 Total depreciation & amortization $ 11,617 $ 144,436 $ 5,631 $ 235,446 $ 24,656 $ 421,786 Three Months Ended November 30, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,242,855 $ 7,948,925 $ 366,049 $ 842,554 $ - $ 10,400,383 Intersegment revenues (1,228 ) (437,583 ) - - - (438,811 ) Revenue from external customers 1,241,627 7,511,342 366,049 842,554 - 9,961,572 Segment profit (loss) 423,213 1,664,643 (86,741 ) (14,587 ) (809,332 ) 1,177,196 Total assets 1,106,155 14,748,965 1,236,501 8,202,628 4,038,968 29,333,217 Capital expenditures 881 124,312 15,182 4,967 17,605 162,947 Total depreciation & amortization $ 11,644 $ 138,618 $ 10,543 $ 143,304 $ 32,180 $ 336,289 Nine Months Ended November 30, 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 3,846,633 $ 18,097,063 $ 941,817 $ 3,127,806 $ - $ 26,013,319 Intersegment revenues (3,632 ) (893,767 ) - - - (897,399 ) Revenue from external customers 3,843,001 17,203,296 941,817 3,127,806 - 25,115,920 Segment profit (loss) 1,527,599 3,564,168 (117,488 ) 190,884 (2,707,260 ) 2,457,903 Total assets 1,067,265 14,713,087 1,029,203 5,463,340 5,294,264 27,567,159 Capital expenditures 3,535 415,960 7,601 14,935 56,221 498,252 Total depreciation & amortization $ 35,173 $ 428,161 $ 29,485 $ 720,530 $ 80,892 $ 1,294,241 Nine Months Ended November 30, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,342,013 $ 19,659,108 $ 1,213,039 $ 3,446,543 $ - $ 28,660,703 Intersegment revenues (3,643 ) (1,082,350 ) - - - (1,085,993 ) Revenue from external customers 4,338,370 18,576,758 1,213,039 3,446,543 - 27,574,710 Segment profit (loss) 1,853,604 4,361,150 (90,674 ) 639,251 (2,844,889 ) 3,918,442 Total assets 1,106,155 14,748,965 1,236,501 8,202,628 4,038,968 29,333,217 Capital expenditures 6,517 342,910 31,518 10,791 55,199 446,935 Total depreciation & amortization $ 34,590 $ 400,624 $ 18,202 $ 429,582 $ 96,714 $ 979,712 |
Note 8 - Goodwill and Intangi_2
Note 8 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | November 30, 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 $ 213,778 $ 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 - 20 715,339 202,567 715,339 136,087 Franchise rights 20 5,979,637 2,111,964 5,979,637 1,545,710 Total 7,467,557 3,080,112 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 $ 3,742,496 $ 9,176,885 $ 3,108,637 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2019 $ 210,187 2020 706,177 2021 594,229 2022 490,060 2023 411,607 Thereafter 1,975,185 Total $ 4,387,445 |
Note 10 - Sale or Distributio_2
Note 10 - Sale or Distribution of Assets (Tables) | 9 Months Ended |
Nov. 30, 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 colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 64%;"> </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 colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 64%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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;">56,610</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 colspan="1" style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 64%;"> </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 colspan="1" style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 64%;"> <div style=" font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;">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;">56,610</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) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | November 30, 2018 February 28, 2018 Promissory note $ 1,519,369 $ 2,529,309 Less: current maturities (1,391,854 ) (1,352,893 ) Long-term obligations $ 127,515 $ 1,176,416 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Amount 2019 $ 342,905 2020 1,176,464 Total minimum payments 1,519,369 Less: current maturities (1,391,854 ) Long-term obligations $ 127,515 |
Note 12 - Adoption of ASU 201_2
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") (Tables) | 9 Months Ended |
Nov. 30, 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 November 30, Nine Months Ended November 30, 2018 2017 2018 2017 Franchise Fees contained within the Statement of Income: $ 61,662 $ 150,900 $ 262,335 $ 563,000 Adjustment required to conform revenue to prior period method: (9,162 ) - (19,335 ) - Comparable franchise fees: $ 52,500 $ 150,900 $ 243,000 $ 563,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 2019 $ 65,420 2020 256,120 2021 203,398 2022 189,850 2023 175,721 Thereafter 522,639 Total $ 1,413,148 |
Note 13 - Disaggregation of R_2
Note 13 - Disaggregation of Revenue (Tables) | 9 Months Ended |
Nov. 30, 2018 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 44,172 $ - $ - $ 17,490 $ 61,662 Franchising Manufacturing Retail U-Swirl Total Factory sales - 6,862,000 - - 6,862,000 Retail sales - - 282,023 439,304 721,327 Royalty and marketing fees 1,017,905 - - 286,853 1,304,758 Total $ 1,062,077 $ 6,862,000 $ 282,023 $ 743,647 $ 8,949,747 Franchising Manufacturing Retail U-Swirl Total Revenues recognized over time under ASC 606: Franchise fees $ 154,693 $ - $ - $ 107,642 $ 262,335 Franchising Manufacturing Retail U-Swirl Total Factory sales - 17,203,296 - - 17,203,296 Retail sales - - 941,817 1,756,582 2,698,399 Royalty and marketing fees 3,688,308 - - 1,263,582 4,951,890 Total $ 3,843,001 $ 17,203,296 $ 941,817 $ 3,127,806 $ 25,115,920 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Basis of Presentation 1 (Details Textual) - USD ($) | Nov. 30, 2018 | Mar. 01, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Jan. 31, 2013 |
Assets, Total | $ 27,567,159 | $ 28,638,541 | $ 28,940,635 | $ 29,333,217 | |
USwirl Inc [Member] | Operating Assets [Member] | |||||
Assets, Total | $ 0 | ||||
USwirl Inc [Member] | |||||
Equity Method Investment, Ownership Percentage | 46.00% | 60.00% | |||
USwirl Inc [Member] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 46.00% |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations and Basis of Presentation 2 (Details Textual) | Nov. 30, 2018 | Mar. 01, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | ||
Minimum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 10 years | |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 15 years |
Note 1 - Nature of Operations_5
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | Nov. 30, 2018 | |
Number of stores | 465 | |
Sold Not Yet Open [Member] | ||
Number of stores | 18 | |
Open [Member] | ||
Number of stores | 447 | |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 2 | |
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 | 0 | |
Company Owned Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 2 | |
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 | 67 | |
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 | 0 | |
International License Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 66 | |
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 | 101 | |
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 10 | |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 91 | |
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 | 0 | |
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 | 90 | |
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 | 90 | |
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 ($) | Nov. 30, 2018 | Mar. 01, 2018 | Feb. 28, 2018 |
Ingredients and supplies | $ 3,090,255 | $ 2,764,727 | |
Finished candy | 2,846,499 | 2,371,610 | |
U-Swirl food and packaging | 61,485 | 63,843 | |
Reserve for slow moving inventory | (320,293) | (357,706) | |
Total inventories | $ 5,677,946 | $ 4,842,474 | $ 4,842,474 |
Note 4 - Property and Equipme_3
Note 4 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Nov. 30, 2018 | Feb. 28, 2018 | Mar. 01, 2018 | |
Property, plant and equipment, gross | $ 18,122,310 | $ 19,112,600 | |
Asset impairment | (30,000) | (62,891) | |
Less accumulated depreciation | (12,235,989) | (12,946,360) | |
Property and equipment, net | 5,886,321 | 6,166,240 | $ 6,166,240 |
Land [Member] | |||
Property, plant and equipment, gross | 513,618 | 513,618 | |
Building [Member] | |||
Property, plant and equipment, gross | 4,823,225 | 4,905,103 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment, gross | 10,382,898 | 10,686,631 | |
Furniture and Fixtures [Member] | |||
Property, plant and equipment, gross | 878,452 | 1,067,788 | |
Leasehold Improvements [Member] | |||
Property, plant and equipment, gross | 1,131,659 | 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 ($) | Nov. 13, 2018 | Sep. 14, 2018 | Jun. 15, 2018 | Mar. 16, 2018 | Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | May 21, 2015 | Jan. 13, 2015 | Jul. 15, 2014 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.12 | $ 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 | $ 102,927 | $ 133,795 | $ 383,655 | $ 458,275 | |||||||
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 | $ 102,927 | $ 359,175 | |||||||||
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 | $ 258,978 | $ 258,978 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 219 days | ||||||||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 17.00% | ||||||||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 years | ||||||||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | Share-based Compensation Award, Tranche One [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% |
Note 5 - Stockholders' Equity -
Note 5 - Stockholders' Equity - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 9 Months Ended | |
Nov. 30, 2018 | Nov. 30, 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) | (1,700) |
Outstanding non-vested restricted stock units as of November 30: (in shares) | 34,170 | 77,894 |
Weighted average grant date fair value (in dollars per share) | $ 12.05 | $ 12.17 |
Weighted average remaining vesting period (Year) | 229 days | 1 year 189 days |
Note 6 - Supplemental Cash Fl_3
Note 6 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Interest, net | $ 44,971 | $ 76,291 |
Income taxes | 381,318 | 1,827,369 |
Accrued Inventory | 292,435 | 334,853 |
Dividend payable | $ 713,839 | $ 708,412 |
Note 7 - Operating Segments (De
Note 7 - Operating Segments (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018USD ($) | Nov. 30, 2017USD ($) | Nov. 30, 2018USD ($) | Nov. 30, 2017USD ($) | |
Number of Reportable Segments | 5 | |||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 8,949,747 | $ 9,961,572 | $ 25,115,920 | $ 27,574,710 |
Manufacturing [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 6,862,000 | $ 7,511,342 | $ 17,203,296 | 18,576,758 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | ||||
Number of Major Customers | 1 | |||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 1,800,000 | $ 2,800,000 | ||
Concentration Risk, Percentage | 7.10% | 10.30% |
Note 7 - Operating Segments - S
Note 7 - Operating Segments - Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | Mar. 01, 2018 | Feb. 28, 2018 | |
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 8,949,747 | $ 9,961,572 | $ 25,115,920 | $ 27,574,710 | ||
Segment profit (loss) | 667,100 | 1,177,196 | 2,457,903 | 3,918,442 | ||
Assets, Total | 27,567,159 | 29,333,217 | 27,567,159 | 29,333,217 | $ 28,638,541 | $ 28,940,635 |
Capital expenditures | 251,797 | 162,947 | 498,252 | 446,935 | ||
Total depreciation and amortization | 421,786 | 336,289 | 1,294,241 | 979,712 | ||
Franchising [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,062,077 | 1,241,627 | 3,843,001 | 4,338,370 | ||
Segment profit (loss) | 344,945 | 423,213 | 1,527,599 | 1,853,604 | ||
Assets, Total | 1,067,265 | 1,106,155 | 1,067,265 | 1,106,155 | ||
Capital expenditures | 881 | 3,535 | 6,517 | |||
Total depreciation and amortization | 11,617 | 11,644 | 35,173 | 34,590 | ||
Manufacturing [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 6,862,000 | 7,511,342 | 17,203,296 | 18,576,758 | ||
Segment profit (loss) | 1,324,220 | 1,664,643 | 3,564,168 | 4,361,150 | ||
Assets, Total | 14,713,087 | 14,748,965 | 14,713,087 | 14,748,965 | ||
Capital expenditures | 243,043 | 124,312 | 415,960 | 342,910 | ||
Total depreciation and amortization | 144,436 | 138,618 | 428,161 | 400,624 | ||
Retail Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 282,023 | 366,049 | 941,817 | 1,213,039 | ||
Segment profit (loss) | (13,732) | (86,741) | (117,488) | (90,674) | ||
Assets, Total | 1,029,203 | 1,236,501 | 1,029,203 | 1,236,501 | ||
Capital expenditures | 3,796 | 15,182 | 7,601 | 31,518 | ||
Total depreciation and amortization | 5,631 | 10,543 | 29,485 | 18,202 | ||
U-Swirl Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 743,647 | 842,554 | 3,127,806 | 3,446,543 | ||
Segment profit (loss) | (174,089) | (14,587) | 190,884 | 639,251 | ||
Assets, Total | 5,463,340 | 8,202,628 | 5,463,340 | 8,202,628 | ||
Capital expenditures | 1,631 | 4,967 | 14,935 | 10,791 | ||
Total depreciation and amortization | 235,446 | 143,304 | 720,530 | 429,582 | ||
Other Segments [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 0 | 0 | 0 | |||
Segment profit (loss) | (814,244) | (809,332) | (2,707,260) | (2,844,889) | ||
Assets, Total | 5,294,264 | 4,038,968 | 5,294,264 | 4,038,968 | ||
Capital expenditures | 3,327 | 17,605 | 56,221 | 55,199 | ||
Total depreciation and amortization | 24,656 | 32,180 | 80,892 | 96,714 | ||
Operating Segments [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 9,282,373 | 10,400,383 | 26,013,319 | 28,660,703 | ||
Operating Segments [Member] | Franchising [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,062,942 | 1,242,855 | 3,846,633 | 4,342,013 | ||
Operating Segments [Member] | Manufacturing [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 7,193,761 | 7,948,925 | 18,097,063 | 19,659,108 | ||
Operating Segments [Member] | Retail Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 282,023 | 366,049 | 941,817 | 1,213,039 | ||
Operating Segments [Member] | U-Swirl Segment [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 743,647 | 842,554 | 3,127,806 | 3,446,543 | ||
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 | (332,626) | (438,811) | (897,399) | (1,085,993) | ||
Intersegment Eliminations [Member] | Franchising [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | (865) | (1,228) | (3,632) | (3,643) | ||
Intersegment Eliminations [Member] | Manufacturing [Member] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | (331,761) | (437,583) | (893,767) | (1,082,350) | ||
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 ($) | 9 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Amortization of Intangible Assets, Total | $ 634,131 | $ 332,100 |
Note 8 - Goodwill and Intangi_4
Note 8 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 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 | 3,080,112 | 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 | 3,742,496 | 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 | 213,778 | 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 | $ 202,567 | 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 | $ 2,111,964 | $ 1,545,710 |
Note 8 - Goodwill and Intangi_5
Note 8 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Nov. 30, 2018USD ($) |
2,019 | $ 210,187 |
2,020 | 706,177 |
2,021 | 594,229 |
2,022 | 490,060 |
2,023 | 411,607 |
Thereafter | 1,975,185 |
Total | $ 4,387,445 |
Note 9 - Restructuring and Ac_2
Note 9 - Restructuring and Acquisition Related Charges (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Restructuring Charges, Total | $ 0 | $ 0 | $ 176,981 | $ 0 |
Note 10 - Sale or Distributio_3
Note 10 - Sale or Distribution of Assets (Details Textual) | 9 Months Ended |
Nov. 30, 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 ($) | 9 Months Ended | |
Nov. 30, 2018 | Nov. 30, 2017 | |
Notes receivable | $ 56,610 |
Note 11 - Note Payable - Long-t
Note 11 - Note Payable - Long-term Note Payable (Details) - USD ($) | Nov. 30, 2018 | Mar. 01, 2018 | Feb. 28, 2018 |
Promissory note | $ 1,519,369 | $ 2,529,309 | |
Less: current maturities | (1,391,854) | $ (1,352,893) | (1,352,893) |
Long-term obligations | $ 127,515 | $ 1,176,416 | $ 1,176,416 |
Note 11 - Note Payable - Annual
Note 11 - Note Payable - Annual Maturities of Notes Payable (Details) - USD ($) | Nov. 30, 2018 | Mar. 01, 2018 | Feb. 28, 2018 |
2,019 | $ 342,905 | ||
2,020 | 1,176,464 | ||
Total minimum payments | 1,519,369 | ||
Less: current maturities | (1,391,854) | $ (1,352,893) | $ (1,352,893) |
Long-term obligations | $ 127,515 | $ 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") 1 (Details Textual) - USD ($) | Nov. 30, 2018 | Mar. 01, 2018 | Feb. 28, 2018 |
Gift Card Liability, Current | $ 696,578 | $ 806,388 | $ 3,057,131 |
Deferred Tax Assets, Net, Noncurrent | $ 627,697 | 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 |
Note 12 - Adoption of ASU 201_4
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") 2 (Details Textual) | Nov. 30, 2018 | Mar. 01, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | ||
Minimum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 10 years | |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 15 years |
Note 12 - Adoption of ASU 201_5
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 | Nov. 30, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Feb. 28, 2017 |
Reduction in gift card liabilities | $ (806,388) | $ (696,578) | $ (3,057,131) | ||
Adjustment to deferred income tax assets | (533,369) | (627,697) | (835,463) | ||
Current Assets | |||||
Cash and cash equivalents | 6,072,984 | 4,211,939 | 6,072,984 | $ 4,066,918 | $ 5,779,195 |
Accounts receivable, net | 3,897,334 | 4,902,276 | 3,897,334 | ||
Notes receivable, current portion, net | 105,540 | 94,101 | 105,540 | ||
Refundable income taxes | 342,863 | 25,070 | 342,863 | ||
Inventories, net | 4,842,474 | 5,677,946 | 4,842,474 | ||
Other | 310,173 | 420,546 | 310,173 | ||
Total current assets | 15,571,368 | 15,331,878 | 15,571,368 | ||
Property and Equipment, Net | 6,166,240 | 5,886,321 | 6,166,240 | ||
Other Assets | |||||
Notes receivable, less current portion, net | 235,983 | 230,298 | 235,983 | ||
Goodwill, net | 1,046,944 | 1,046,944 | 1,046,944 | ||
Franchise rights, net | 4,433,927 | 3,867,673 | 4,433,927 | ||
Intangible assets, net | 587,377 | 519,772 | 587,377 | ||
Deferred income taxes | 533,369 | 627,697 | 835,463 | ||
Other | 63,333 | 56,576 | 63,333 | ||
Total other assets | 6,900,933 | ||||
Total Assets | 28,638,541 | 27,567,159 | 28,940,635 | $ 29,333,217 | |
Current Liabilities | |||||
Current maturities of long-term debt | 1,352,893 | 1,391,854 | 1,352,893 | ||
Accounts payable | 1,647,991 | 1,504,321 | 1,647,991 | ||
Accrued salaries and wages | 644,005 | 862,074 | 644,005 | ||
Gift card liabilities | 806,388 | 696,578 | 3,057,131 | ||
Other accrued expenses | 325,034 | 274,854 | 325,034 | ||
Dividend payable | 708,652 | 713,839 | 708,652 | ||
Deferred revenue | 328,465 | 296,868 | 471,910 | ||
Total current liabilities | 5,813,428 | 5,740,388 | 8,207,616 | ||
Long-Term Debt, Less Current Maturities | 1,176,416 | 127,515 | 1,176,416 | ||
Deferred Revenue, Less Current Portion | 1,166,165 | 1,116,280 | |||
Stockholders' Equity | |||||
Common stock | 5,903 | 5,949 | 5,903 | ||
Additional paid-in capital | 6,131,147 | 6,514,756 | 6,131,147 | ||
Retained earnings | 14,345,482 | 14,062,271 | 13,419,553 | ||
Total stockholders' equity | 20,482,532 | 20,582,976 | 19,556,603 | ||
Total Liabilities and Stockholders' Equity | 28,638,541 | $ 27,567,159 | 28,940,635 | ||
Previously Reported [Member] | |||||
Reduction in gift card liabilities | (3,057,131) | ||||
Adjustment to deferred income tax assets | (835,463) | ||||
Current Assets | |||||
Cash and cash equivalents | 6,072,984 | ||||
Accounts receivable, net | 3,897,334 | ||||
Notes receivable, current portion, net | 105,540 | ||||
Refundable income taxes | 342,863 | ||||
Inventories, net | 4,842,474 | ||||
Other | 310,173 | ||||
Total current assets | 15,571,368 | ||||
Property and Equipment, Net | 6,166,240 | ||||
Other Assets | |||||
Notes receivable, less current portion, net | 235,983 | ||||
Goodwill, net | 1,046,944 | ||||
Franchise rights, net | 4,433,927 | ||||
Intangible assets, net | 587,377 | ||||
Deferred income taxes | 835,463 | ||||
Other | 63,333 | ||||
Total other assets | 7,203,027 | ||||
Total Assets | 28,940,635 | ||||
Current Liabilities | |||||
Current maturities of long-term debt | 1,352,893 | ||||
Accounts payable | 1,647,991 | ||||
Accrued salaries and wages | 644,005 | ||||
Gift card liabilities | 3,057,131 | ||||
Other accrued expenses | 325,034 | ||||
Dividend payable | 708,652 | ||||
Deferred revenue | 471,910 | ||||
Total current liabilities | 8,207,616 | ||||
Long-Term Debt, Less Current Maturities | 1,176,416 | ||||
Deferred Revenue, Less Current Portion | |||||
Stockholders' Equity | |||||
Common stock | 5,903 | ||||
Additional paid-in capital | 6,131,147 | ||||
Retained earnings | 13,419,553 | ||||
Total stockholders' equity | 19,556,603 | ||||
Total Liabilities and Stockholders' Equity | $ 28,940,635 | ||||
Accounting Standards Update 2014-09 [Member] | |||||
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 | ||||
Other Assets | |||||
Deferred income taxes | 302,094 | ||||
Current Liabilities | |||||
Gift card liabilities | (2,250,743) | ||||
Accounting Standards Update 2014-09 [Member] | Restatement Adjustment [Member] | |||||
Reduction in gift card liabilities | 2,250,743 | ||||
Adjustment to deferred income tax assets | 302,094 | ||||
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_6
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 | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Revenue | $ 8,949,747 | $ 9,961,572 | $ 25,115,920 | $ 27,574,710 |
Revenue | (8,949,747) | (9,961,572) | (25,115,920) | (27,574,710) |
Franchise Fees [Member] | ||||
Revenue | 52,500 | 150,900 | 243,000 | 563,000 |
Revenue | (52,500) | (150,900) | (243,000) | (563,000) |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Franchise Fees [Member] | ||||
Revenue | 61,662 | 150,900 | 262,335 | 563,000 |
Revenue | (61,662) | (150,900) | (262,335) | (563,000) |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Franchise Fees [Member] | Accounting Standards Update 2014-09 [Member] | ||||
Revenue | 9,162 | 19,335 | ||
Revenue | $ (9,162) | $ (19,335) |
Note 12 - Adoption of ASU 201_7
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") - Remaining Performance Obligation (Details) | Nov. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 1,413,148 |
Note 12 - Adoption of ASU 201_8
Note 12 - Adoption of ASU 2014-09, "Revenue from Contracts with Customers" ("ASC 606") - Remaining Performance Obligation 2 (Details) | Nov. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Amount | $ 1,413,148 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-03-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 65,420 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 256,120 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-03-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 203,398 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 189,850 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Amount | $ 175,721 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | |
Revenue, Remaining Performance Obligation, Amount | $ 522,639 |
Note 13 - Disaggregation of R_3
Note 13 - Disaggregation of Revenue - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2018 | Nov. 30, 2017 | Nov. 30, 2018 | Nov. 30, 2017 | |
Revenue from Contract with Customer, Excluding Assessed Tax, Total | $ 8,949,747 | $ 9,961,572 | $ 25,115,920 | $ 27,574,710 |
Franchising [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,062,077 | 1,241,627 | 3,843,001 | 4,338,370 |
Manufacturing [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 6,862,000 | 7,511,342 | 17,203,296 | 18,576,758 |
Retail Segment [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 282,023 | 366,049 | 941,817 | 1,213,039 |
USwirl Inc [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 743,647 | 3,127,806 | ||
Franchise Fees [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 52,500 | $ 150,900 | 243,000 | $ 563,000 |
Franchise Fees [Member] | Transferred over Time [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 61,662 | 262,335 | ||
Franchise Fees [Member] | Transferred over Time [Member] | Franchising [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 44,172 | 154,693 | ||
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 | 17,490 | 107,642 | ||
Factory Sales [Member] | Transferred at Point in Time [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 6,862,000 | 17,203,296 | ||
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 | 6,862,000 | 17,203,296 | ||
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 | 721,327 | 2,698,399 | ||
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 | 282,023 | 941,817 | ||
Retail [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 439,304 | 1,756,582 | ||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,304,758 | 4,951,890 | ||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax, Total | 1,017,905 | 3,688,308 | ||
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 | $ 286,853 | $ 1,263,582 |