Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
May 31, 2020 | Jun. 25, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | Rocky Mountain Chocolate Factory, Inc. | |
Entity Central Index Key | 0001616262 | |
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 Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 6,065,138 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.001 par value per share; Preferred Stock Purchase Rights |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Revenues | ||
Total revenues | $ 2,702,437 | $ 8,425,999 |
Costs and Expenses | ||
Cost of sales | 2,883,216 | 4,614,744 |
Sales and marketing | 474,090 | 556,651 |
General and administrative | 3,179,475 | 1,144,731 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $157,510, $145,699, respectively, included in cost of sales | 185,605 | 231,955 |
Costs associated with Company-owned store closures | 68,558 | |
Total costs and expenses | 7,531,400 | 7,479,996 |
(Loss) Income from Operations | (4,828,963) | 946,003 |
Other Income (Expense) | ||
Interest Expense | (23,562) | (12,398) |
Interest Income | 5,800 | 10,179 |
Other income (expense), net | (17,762) | (2,219) |
(Loss) Income Before Income Taxes | (4,846,725) | 943,784 |
Income Tax (Benefit) Provision | (1,179,328) | 232,175 |
Consolidated Net (Loss) Income | $ (3,667,397) | $ 711,609 |
Basic (Loss) Earnings per Common Share (in dollars per share) | $ (0.61) | $ 0.12 |
Diluted (Loss) Earnings per Common Share (in dollars per share) | $ (0.61) | $ 0.11 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 6,058,851 | 5,962,278 |
Dilutive Effect of Employee Stock Awards (in shares) | 272,286 | |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 6,058,851 | 6,234,564 |
Product [Member] | ||
Revenues | ||
Total revenues | $ 2,322,211 | $ 6,460,611 |
Franchise and Royalty Fees [Member] | ||
Revenues | ||
Total revenues | 380,226 | 1,965,388 |
Franchise [Member] | ||
Costs and Expenses | ||
Costs | 421,245 | 483,013 |
Retail [Member] | ||
Costs and Expenses | ||
Costs | $ 319,211 | $ 448,902 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Cost, Depreciation and Amortization, Total | $ 157,510 | $ 145,699 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | May 31, 2020 | Feb. 29, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 7,440,923 | $ 4,822,071 |
Accounts receivable, less allowance for doubtful accounts of $1,908,912 and $638,907, respectively | 2,320,580 | 4,049,959 |
Notes receivable, current portion, less current portion of the valuation allowance of $50,814 and $0, respectively | 110,624 | 160,700 |
Refundable income taxes | 417,979 | 418,319 |
Inventories | 4,140,827 | 3,750,978 |
Other | 397,311 | 409,703 |
Total current assets | 14,828,244 | 13,611,730 |
Property and Equipment, Net | 5,703,584 | 5,938,013 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $149,186 and $0, respectively | 124,912 | 289,515 |
Goodwill, net | 729,701 | 1,046,944 |
Franchise rights, net | 2,915,707 | 3,047,688 |
Intangible assets, net | 421,864 | 498,393 |
Deferred income taxes | 1,809,407 | 630,078 |
Lease right of use asset | 2,518,444 | 2,698,765 |
Other | 56,263 | 56,262 |
Total other assets | 8,576,298 | 8,267,645 |
Total Assets | 29,108,126 | 27,817,388 |
Current Liabilities | ||
Current maturities of long term debt | 590,377 | |
Line of credit | 3,448,165 | |
Accounts payable | 2,965,103 | 2,241,506 |
Accrued salaries and wages | 779,037 | 716,860 |
Gift card liabilities | 605,437 | 609,842 |
Other accrued expenses | 294,434 | 316,751 |
Dividend payable | 722,344 | |
Contract liabilities | 193,492 | 195,658 |
Lease liability | 803,106 | 803,861 |
Total current liabilities | 9,679,151 | 5,606,822 |
Lease Liability, Less Current Portion | 1,715,338 | 1,894,904 |
Long-Term Debt, Less Current Portion | 948,047 | |
Contract Liabilities, Less Current Portion | 933,758 | 960,151 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock | ||
Common stock, $.001 par value, 46,000,000 shares authorized, 6,060,663 shares and 6,019,532 shares issued and outstanding, respectively | 6,061 | 6,020 |
Additional paid-in capital | 7,603,608 | 7,459,931 |
Retained earnings | 8,222,163 | 11,889,560 |
Total stockholders' equity | 15,831,832 | 19,355,511 |
Total Liabilities and Stockholders' Equity | 29,108,126 | 27,817,388 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock | ||
Undesignated Series [Member] | ||
Stockholders' Equity | ||
Preferred stock |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | May 31, 2020 | Feb. 29, 2020 |
Accounts receivable, allowance for doubtful accounts | $ 1,908,912 | $ 638,907 |
Notes receivable, current portion of the valuation allowance | 50,814 | 0 |
Notes receivable, noncurrent portion of valuation allowance | $ 149,186 | $ 0 |
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) | 6,060,663 | 6,019,532 |
Common stock, shares outstanding (in shares) | 6,060,663 | 6,019,532 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Undesignated Series [Member] | ||
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Cash Flows From Operating Activities | ||
Net (loss) income | $ (3,667,397) | $ 711,609 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 343,115 | 377,654 |
Provision for loss on accounts and notes receivable | 1,468,815 | 81,283 |
Asset impairment and store closure losses | 544,060 | |
Loss on sale or disposal of property and equipment | 4,956 | 2,867 |
Expense recorded for stock compensation | 143,718 | 231,254 |
Deferred income taxes | (1,179,329) | 38,028 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 476,533 | (100,089) |
Refundable income taxes | 340 | 185,667 |
Inventories | (433,932) | 367,824 |
Contract Liabilities | (27,515) | (90,248) |
Other current assets | 12,393 | (122,047) |
Accounts payable | 680,748 | 115,667 |
Accrued liabilities | 35,453 | 28,640 |
Net cash (used in) provided by operating activities | (1,598,042) | 1,828,109 |
Cash Flows from Investing Activities | ||
Proceeds received on notes receivable | 17,825 | 28,400 |
Purchase of intangible assets | (41,464) | |
Purchases of property and equipment | (22,488) | (283,548) |
Decrease in other assets | 312 | |
Net cash used in investing activities | (46,127) | (254,836) |
Cash Flows from Financing Activities | ||
Payments on long-term debt | (346,547) | |
Proceeds from long-term debt | 1,537,200 | |
Proceeds from the line of credit | 3,448,165 | |
Dividends paid | (722,344) | (715,179) |
Net cash provided by (used in) financing activities | 4,263,021 | (1,061,726) |
Net Increase in Cash and Cash Equivalents | 2,618,852 | 511,547 |
Cash and Cash Equivalents, Beginning of Period | 4,822,071 | 5,384,027 |
Cash and Cash Equivalents, End of Period | $ 7,440,923 | $ 5,895,574 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Feb. 28, 2019 | $ 5,958 | $ 6,650,864 | $ 13,733,010 | |
Common Stock | ||||
Issuance of common stock | ||||
Equity compensation, restricted stock units | 4 | 231,250 | ||
Balance at May. 31, 2019 | 5,962 | 6,882,114 | 13,728,480 | $ 20,616,556 |
Balance at Feb. 28, 2019 | 5,958 | 6,650,864 | 13,733,010 | |
Additional Paid-in Capital | ||||
Issuance of common stock | ||||
Equity compensation, restricted stock units | 4 | 231,250 | ||
Balance at May. 31, 2019 | 5,962 | 6,882,114 | 13,728,480 | 20,616,556 |
Balance at Feb. 28, 2019 | 5,958 | 6,650,864 | 13,733,010 | |
Retained Earnings | ||||
Consolidated net (loss) income | 711,609 | 711,609 | ||
Cash dividends declared | (716,139) | |||
Balance at May. 31, 2019 | $ 5,962 | 6,882,114 | 13,728,480 | 20,616,556 |
Balance (in shares) at Feb. 28, 2019 | 5,957,827 | |||
Common Shares | ||||
Equity compensation, restricted stock units (in shares) | 4,500 | |||
Balance (in shares) at May. 31, 2019 | 5,962,327 | |||
Balance at Feb. 29, 2020 | $ 6,020 | 7,459,931 | 11,889,560 | 19,355,511 |
Common Stock | ||||
Issuance of common stock | ||||
Equity compensation, restricted stock units | 41 | 143,677 | ||
Balance at May. 31, 2020 | 6,061 | 7,603,608 | 8,222,163 | 15,831,832 |
Balance at Feb. 29, 2020 | 6,020 | 7,459,931 | 11,889,560 | 19,355,511 |
Additional Paid-in Capital | ||||
Issuance of common stock | ||||
Equity compensation, restricted stock units | 41 | 143,677 | ||
Balance at May. 31, 2020 | 6,061 | 7,603,608 | 8,222,163 | 15,831,832 |
Balance at Feb. 29, 2020 | 6,020 | 7,459,931 | 11,889,560 | 19,355,511 |
Retained Earnings | ||||
Consolidated net (loss) income | (3,667,397) | (3,667,397) | ||
Cash dividends declared | ||||
Balance at May. 31, 2020 | $ 6,061 | $ 7,603,608 | $ 8,222,163 | $ 15,831,832 |
Balance (in shares) at Feb. 29, 2020 | 6,019,532 | |||
Common Shares | ||||
Equity compensation, restricted stock units (in shares) | 41,131 | |||
Balance (in shares) at May. 31, 2020 | 6,060,663 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 3 Months Ended |
May 31, 2020 | |
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), Aspen Leaf Yogurt, LLC (“ALY”), and U-Swirl International, Inc. (“U-Swirl”), and its 46% The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, 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 In FY 2020, 1,000 January 2020 The following table summarizes the number of stores operating 1 May 31, 2020: Sold, Not Yet Open Open 1 Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 3 171 174 International license stores 1 61 62 Cold Stone Creamery - co-branded 5 98 103 U-Swirl (Including all associated brands) - Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores - 74 74 Franchise stores - Domestic - co-branded 1 7 8 International license stores - 2 2 Total 10 418 428 1 19. 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 (the “SEC”) 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 three May 31, 2020 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 29, 2020. Subsequent Events Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no COVID- 19 As discussed in more detail throughout this Quarterly Report on Form 10 May 31, 2020 ( 19 19, not May 2020 March 2020 April 2020, 19, 19 In addition, as previously announced on May 11, 2020, first 19 During this challenging time, the Company’s foremost priority is the safety and well-being of our employees, customers, franchisees and communities. In addition to the already stringent practices for the quality and safety of the Company’s confections, the Company is diligently following health and safety guidance issued by the World Health Organization, the Centers for Disease Control and state and local governmental agencies. COVID- 19 may 19 In these challenging and unprecedented times, management is taking all necessary and appropriate action to maximize liquidity as the Company navigates the current landscape. These actions include significantly reducing operating expenses and production volume to reflect reduced sales volumes as well as the elimination of all non-essential spending and capital expenditures. Further, in an abundance of caution and to maintain ample financial flexibility, the Company drew down the full amount under our line of credit and the Company received loans under the Paycheck Protection Program (the “PPP”). At May 31, 2020 $1.54 1A 19 May 10 May 29, 2020 Recent Accounting Pronouncements Except for the recent accounting pronouncements described below, other recent accounting pronouncements are not In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2023 2016 13 In January 2017, 2017 04, 350 2 1 2 not 2017 04 zero 2 December 15, 2019. March 1, 2020 ( first 2021 not In December 2019, 2019 12, 740 December 15, 2020 March 1, 2021 not |
Note 2 - Supplemental Cash Flow
Note 2 - Supplemental Cash Flow Information | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 2 Three Months Ended May 31, 2020 2019 Cash paid (received) for: Interest $ 13,362 $ 9,814 Income taxes (340 ) 8,481 Non-cash Operating Activities Accrued Inventory 158,834 166,649 Non-cash Financing Activities Dividend payable $ - $ 715,899 |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 3 Effective March 1, 2018, 606, not not 20 10 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 The following table summarizes contract liabilities as of May 31, 2020 May 31, 2019: Three Months Ended May 31: 2020 2019 Contract liabilities at the beginning of the year: $ 1,155,809 $ 1,352,572 Revenue recognized (55,016 ) (106,280 ) Contract fees received 27,500 16,032 Amortized gain on the financed sale of equipment (1,043 ) (3,133 ) Contract liabilities at the end of the period: $ 1,127,250 $ 1,259,191 On May 31, 2020, not FYE 21 $ 146,360 FYE 22 183,708 FYE 23 171,978 FYE 24 139,353 FYE 25 126,070 Thereafter 359,781 Total $ 1,127,250 Gift Cards The Company’s franchisees sell gift cards which do not not 606 not 606 |
Note 4 - Disaggregation of Reve
Note 4 - Disaggregation of Revenue | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Disaggregation of Revenue [Text Block] | NOTE 4 The following table presents disaggregated revenue by method of recognition and segment: Three Months Ended May 31, 2020 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 41,702 $ - $ - $ 13,314 $ 55,016 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 2,134,615 - - 2,134,615 Retail sales - - 59,981 127,615 187,596 Royalty and marketing fees 212,092 - - 113,118 325,210 Total $ 253,794 $ 2,134,615 $ 59,981 $ 254,047 $ 2,702,437 Three Months Ended May 31, 2019 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 80,019 $ - $ - $ 26,261 $ 106,280 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 5,606,020 - - 5,606,020 Retail sales - - 232,419 622,172 854,591 Royalty and marketing fees 1,347,736 - - 511,372 1,859,108 Total $ 1,427,755 $ 5,606,020 $ 232,419 $ 1,159,805 $ 8,425,999 |
Note 5 - Inventories
Note 5 - Inventories | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5 Inventories consist of the following inventory at May 31, 2019 February 28, 2019: May 31, 2020 February 29, 2020 Ingredients and supplies $ 2,355,461 $ 2,186,652 Finished candy 2,034,297 1,827,767 U-Swirl food and packaging 42,086 56,708 Reserve for slow moving inventory (291,017 ) (320,149 ) Total inventories $ 4,140,827 $ 3,750,978 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment, Net | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 Property and equipment at May 31, 2020 February 29, 2020 May 31, 2020 February 29, 2020 Land $ 513,618 $ 513,618 Building 5,031,395 5,031,395 Machinery and equipment 10,470,117 10,664,396 Furniture and fixtures 805,139 852,557 Leasehold improvements 985,407 1,154,396 Transportation equipment 440,989 440,989 18,246,665 18,657,351 Less accumulated depreciation (12,543,081 ) (12,719,338 ) Property and equipment, net $ 5,703,584 $ 5,938,013 Depreciation expense related to property and equipment totaled $194,557 $201,110 three May 31, 2020 2019, |
Note 7 - Goodwill and Intangibl
Note 7 - Goodwill and Intangible Assets | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 Intangible assets at May 31, 2020 February 28, 2020 May 31, 2020 February 29, 2020 Amortization Gross Carrying Accumulated Gross Carrying Accumulated Intangible assets subject to amortization Store design 10 $ 394,826 $ 216,027 $ 295,779 $ 215,653 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 - 20 556,339 313,274 715,339 297,072 Franchise rights 20 5,979,637 3,063,930 5,979,637 2,931,949 Total 7,482,605 4,145,034 7,542,558 3,996,477 Intangible assets not subject to amortization Franchising segment- Company stores goodwill $ 515,065 $ 832,308 Franchising goodwill 97,318 97,318 Manufacturing segment-goodwill 97,318 97,318 Trademark 20,000 20,000 Total goodwill 729,701 1,046,944 Total Intangible Assets $ 8,212,306 $ 4,145,034 $ 8,589,502 $ 3,996,477 Amortization expense related to intangible assets totaled $148,557 $176,544 three May 31, 2020 2019, At May 31, 2020, FYE 21 $ 417,509 FYE 22 466,554 FYE 23 391,988 FYE 24 329,267 FYE 25 277,022 Thereafter 1,281,184 Total $ 3,163,524 During FY 2020, $250,000 $174,000 May 31, 2020. |
Note 8 - Impairment of Long-liv
Note 8 - Impairment of Long-lived and Intangible Assets | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | NOTE 8 We assess the potential impairment of our long-lived assets on an annual basis or whenever events or changes in circumstances indicate the carrying value of the assets or asset group may not 19 three May 31, 2020. $545,000 The assessment of our goodwill, trademark and long lived asset fair values includes many assuptions that are subject to risk and uncertainties. The primary assumptions, which are all Level 3 ● Expected future cash flows from operation of our Company-owned units. ● Forecasted future royalty revenue, marketing revenue and associated expenses. ● Projected rate of royalty savings on trademarks. ● Our cost of capital. As of May 31, 2020 Company store goodwill impairment $ 317,243 Trademark intangible asset impairment 159,000 Company-owned store impairment of long-lived assets and inventory 68,558 Total $ 544,801 Certain interim tests did not 19 not |
Note 9 - Line of Credit and Lon
Note 9 - Line of Credit and Long-term Debt | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 9 The Company has a $5.0 March 16, 2020, 19 $3.4 $5.0 50% 50% 2.25% 2.4% May 31, 2020). May 31, 2020, not $1.5 twelve May 31, 2020. 19, June 26, 2020 October 30, 2015 not 19 no September 2021 19. The Company’s long-term debt is comprised of promissory notes pursuant to the Paycheck Protection Program, under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA Loans”). The Company received total proceeds of $1.5 April 2022 1.00% may no May 31, 2020 The SBA Loans contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. Subject to certain conditions, the SBA Loans may 60 75% No May 31, 2020 $3,200 As of May 31, 2020 February 28, 2020, May 31, 2020 February 29, 2020 Paycheck protection program note payable in monthly installments of principal and interest at 1.0% per annum through April 2022 $ 1,538,424 $ - Less: current maturities (590,377 ) - Long-term obligations $ 948,047 $ - |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 10 Cash Dividend The Company paid a quarterly cash dividend of $0.12 March 15, 2019 March 5, 2019. $0.12 June 14, 2019 June 4, 2019. $0.12 September 13, 2019 September 4, 2019. $0.12 December 6, 2019 November 22, 2019. $0.12 March 13, 2020 February 28, 2020. Future declarations of dividends will depend on, among other things, the Company's results of operations, financial condition, capital requirements, and on such other factors as the Company's Board of Directors may As previously announced on May 11, 2020, first 19. Stock Repurchases On July 15, 2014, $3.0 January 13, 2015, $2,058,000 May 21, 2015, $2,090,000 not three May 31, 2020 2019. May 31, 2020, $638,000 Warrants In consideration of Edible entering into the exclusive supplier agreement and the performance of its obligations therein, on December 20, 2019, 960,677 $8.76 five six fifth The Company determined that the grant date fair value of the warrants was de minimis and did not Stock-Based Compensation Under the Company’s 2007 “2007 may The Company recognized $143,718 three May 31, 2020 $231,254 three May 31, 2019. The following table summarizes non-vested restricted stock unit transactions for common stock during the three May 31, 2020 2019: Three Months Ended May 31, 2020 2019 Outstanding non-vested restricted stock units as of February 28 or 29: 265,555 25,002 Granted - 270,000 Vested (41,131 ) - Cancelled/forfeited - - Outstanding non-vested restricted stock units as of May 31: 224,424 295,002 Weighted average grant date fair value $ 9.39 $ 9.62 Weighted average remaining vesting period (in years) 4.33 4.94 The Company did not three May 31, 2020 4,500 three May 31, 2019. $0 $42,525 three May 31, 2020 2019, During the three May 31, 2020, $143,718 $188,729 three May 31, 2019. five six May 31, 2020, $1,994,662, 4.33 During the three May 31, 2019, 270,000 $2,536,100 $9.39 no three May 31, 2020. five six The Company has no May 31, 2020. |
Note 11 - Earnings Per Share
Note 11 - Earnings Per Share | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 11 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. The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not three May 31, 2020, 960,677 209,960 |
Note 12 - Leasing Arrangements
Note 12 - Leasing Arrangements | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE 12 The Company conducts its retail operations in facilities leased under non-cancelable operating leases of up to ten five ten The Company acts as primary lessee of some franchised store premises, which the Company then subleases to franchisees, but the majority of existing locations are leased by the franchisee directly. Currently, there are not In some instances, the Company has leased space for its Company-owned locations that are now occupied by franchisees. When the Company-owned location was sold or transferred, the store was subleased to the franchisee who is responsible for the monthly rent and other obligations under the lease. The Company also leases trucking equipment and warehouse space in support of its manufacturing operations. Expense associated with trucking and warehouse leases is included in cost of sales on the consolidated statements of operations. ASU 2016 02 not The Company accounts for payments related to lease liabilities on a straight-line basis over the lease term. As of May 31, 2020 2019, $212,063 $238,666, The amount of the Right of Use Asset and Lease Liability recorded upon the adoption of ASU 2016 02 $3.3 not not not not 3.4% May 31, 2020. $2.8 As of May 31, 2020, FYE 21 $ 616,088 FYE 22 694,755 FYE 23 437,445 FYE 24 315,962 FYE 25 164,223 Thereafter 552,817 Total $ 2,781,290 Less: imputed interest (262,846 ) Present value of lease liabilities: $ 2,518,444 Weighted average lease term 6.7 |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 13 Purchase contracts The Company frequently enters into purchase contracts of between six eighteen may may may May 31, 2020, $227,000 not |
Note 14 - FTD Loss Contingency
Note 14 - FTD Loss Contingency | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | NOTE 14 In June 2019, 11 The Company has historically conducted business with FTD under a Gourmet Foods Supplier Agreement (the “Supplier Agreement”), that among other provisions, provided assurance that custom inventory purchased by the Company and developed specifically for FTD would be purchased by FTD upon termination of the Supplier Agreement. On September 23, 2019, not As a result of FTD’s bankruptcy, the sale of certain assets, and the court’s approval to reject and not May 31, 2020 2020, $230,384 not not As of May 31, 2020, May 31, 2020 Ingredients and supplies $ 296,019 Finished candy 20,562 Accounts receivable 79,744 Reserve for estimated losses (198,054 ) Total potential loss, contingent upon the bankruptcy proceedings $ 198,271 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 15 Under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) a net operating loss (“NOL”) arising during the Company’s fiscal year 2021 five 2016 2020. five 21% 34%, February 28, 2018. The Company’s deferred tax assets are valued at the current federally enacted rate of 21%. 2021 may 21%. As of May 31, 2020, no not |
Note 16 - Operating Segments
Note 16 - Operating Segments | 3 Months Ended |
May 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 16 The Company classifies its business interests into five 1 10 February 29, 2020. ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES Three Months Ended May 31, 2020 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 254,477 $ 2,293,093 $ 59,981 $ 254,047 $ - $ 2,861,598 Intersegment revenues (683 ) (158,478 ) - - - (159,161 ) Revenue from external customers 253,794 2,134,615 59,981 254,047 - 2,702,437 Segment profit (loss) (451,319 ) (783,469 ) (477,825 ) (457,718 ) (2,676,394 ) (4,846,725 ) Total assets 1,090,475 10,430,680 604,386 5,565,436 11,417,149 29,108,126 Capital expenditures - 13,854 - 1,712 6,922 22,488 Total depreciation & amortization $ 10,138 $ 161,830 $ 3,403 $ 146,949 $ 20,795 $ 343,115 Three Months Ended May 31, 2019 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,429,041 $ 5,866,472 $ 232,419 $ 1,159,805 $ - $ 8,687,737 Intersegment revenues (1,286 ) (260,452 ) - - - (261,738 ) Revenue from external customers 1,427,755 5,606,020 232,419 1,159,805 - 8,425,999 Segment profit (loss) 617,910 1,168,687 (15,012 ) 279,163 (1,106,964 ) 943,784 Total assets 1,275,471 11,660,148 992,148 6,330,540 9,290,136 29,548,443 Capital expenditures 10,540 223,552 9,518 - 39,938 283,548 Total depreciation & amortization $ 10,830 $ 150,132 $ 2,611 $ 190,769 $ 23,312 $ 377,654 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
May 31, 2020 | |
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 (the “SEC”) 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 three May 31, 2020 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 29, 2020. |
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 |
COVID-19 Update [Policy Text Block] | COVID- 19 As discussed in more detail throughout this Quarterly Report on Form 10 May 31, 2020 ( 19 19, not May 2020 March 2020 April 2020, 19, 19 In addition, as previously announced on May 11, 2020, first 19 During this challenging time, the Company’s foremost priority is the safety and well-being of our employees, customers, franchisees and communities. In addition to the already stringent practices for the quality and safety of the Company’s confections, the Company is diligently following health and safety guidance issued by the World Health Organization, the Centers for Disease Control and state and local governmental agencies. COVID- 19 may 19 In these challenging and unprecedented times, management is taking all necessary and appropriate action to maximize liquidity as the Company navigates the current landscape. These actions include significantly reducing operating expenses and production volume to reflect reduced sales volumes as well as the elimination of all non-essential spending and capital expenditures. Further, in an abundance of caution and to maintain ample financial flexibility, the Company drew down the full amount under our line of credit and the Company received loans under the Paycheck Protection Program (the “PPP”). At May 31, 2020 $1.54 1A 19 May 10 May 29, 2020 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Except for the recent accounting pronouncements described below, other recent accounting pronouncements are not In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2023 2016 13 In January 2017, 2017 04, 350 2 1 2 not 2017 04 zero 2 December 15, 2019. March 1, 2020 ( first 2021 not In December 2019, 2019 12, 740 December 15, 2020 March 1, 2021 not |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations and Basis of Presentation (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Number of Stores [Table Text Block] | Sold, Not Yet Open Open 1 Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 3 171 174 International license stores 1 61 62 Cold Stone Creamery - co-branded 5 98 103 U-Swirl (Including all associated brands) - Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores - 74 74 Franchise stores - Domestic - co-branded 1 7 8 International license stores - 2 2 Total 10 418 428 |
Note 2 - Supplemental Cash Fl_2
Note 2 - Supplemental Cash Flow Information (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended May 31, 2020 2019 Cash paid (received) for: Interest $ 13,362 $ 9,814 Income taxes (340 ) 8,481 Non-cash Operating Activities Accrued Inventory 158,834 166,649 Non-cash Financing Activities Dividend payable $ - $ 715,899 |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Three Months Ended May 31: 2020 2019 Contract liabilities at the beginning of the year: $ 1,155,809 $ 1,352,572 Revenue recognized (55,016 ) (106,280 ) Contract fees received 27,500 16,032 Amortized gain on the financed sale of equipment (1,043 ) (3,133 ) Contract liabilities at the end of the period: $ 1,127,250 $ 1,259,191 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | FYE 21 $ 146,360 FYE 22 183,708 FYE 23 171,978 FYE 24 139,353 FYE 25 126,070 Thereafter 359,781 Total $ 1,127,250 |
Note 4 - Disaggregation of Re_2
Note 4 - Disaggregation of Revenue (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 41,702 $ - $ - $ 13,314 $ 55,016 Franchising Manufacturing Retail U-Swirl Total Factory sales - 2,134,615 - - 2,134,615 Retail sales - - 59,981 127,615 187,596 Royalty and marketing fees 212,092 - - 113,118 325,210 Total $ 253,794 $ 2,134,615 $ 59,981 $ 254,047 $ 2,702,437 Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 80,019 $ - $ - $ 26,261 $ 106,280 Franchising Manufacturing Retail U-Swirl Total Factory sales - 5,606,020 - - 5,606,020 Retail sales - - 232,419 622,172 854,591 Royalty and marketing fees 1,347,736 - - 511,372 1,859,108 Total $ 1,427,755 $ 5,606,020 $ 232,419 $ 1,159,805 $ 8,425,999 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | May 31, 2020 February 29, 2020 Ingredients and supplies $ 2,355,461 $ 2,186,652 Finished candy 2,034,297 1,827,767 U-Swirl food and packaging 42,086 56,708 Reserve for slow moving inventory (291,017 ) (320,149 ) Total inventories $ 4,140,827 $ 3,750,978 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment, Net (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | May 31, 2020 February 29, 2020 Land $ 513,618 $ 513,618 Building 5,031,395 5,031,395 Machinery and equipment 10,470,117 10,664,396 Furniture and fixtures 805,139 852,557 Leasehold improvements 985,407 1,154,396 Transportation equipment 440,989 440,989 18,246,665 18,657,351 Less accumulated depreciation (12,543,081 ) (12,719,338 ) Property and equipment, net $ 5,703,584 $ 5,938,013 |
Note 7 - Goodwill and Intangi_2
Note 7 - Goodwill and Intangible Assets (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | May 31, 2020 February 29, 2020 Amortization Gross Carrying Accumulated Gross Carrying Accumulated Intangible assets subject to amortization Store design 10 $ 394,826 $ 216,027 $ 295,779 $ 215,653 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 - 20 556,339 313,274 715,339 297,072 Franchise rights 20 5,979,637 3,063,930 5,979,637 2,931,949 Total 7,482,605 4,145,034 7,542,558 3,996,477 Intangible assets not subject to amortization Franchising segment- Company stores goodwill $ 515,065 $ 832,308 Franchising goodwill 97,318 97,318 Manufacturing segment-goodwill 97,318 97,318 Trademark 20,000 20,000 Total goodwill 729,701 1,046,944 Total Intangible Assets $ 8,212,306 $ 4,145,034 $ 8,589,502 $ 3,996,477 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | FYE 21 $ 417,509 FYE 22 466,554 FYE 23 391,988 FYE 24 329,267 FYE 25 277,022 Thereafter 1,281,184 Total $ 3,163,524 |
Note 8 - Impairment of Long-l_2
Note 8 - Impairment of Long-lived and Intangible Assets (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Details of Impairment of Long-Lived Assets Held and Used by Asset [Table Text Block] | Company store goodwill impairment $ 317,243 Trademark intangible asset impairment 159,000 Company-owned store impairment of long-lived assets and inventory 68,558 Total $ 544,801 |
Note 9 - Line of Credit and L_2
Note 9 - Line of Credit and Long-term Debt (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | May 31, 2020 February 29, 2020 Paycheck protection program note payable in monthly installments of principal and interest at 1.0% per annum through April 2022 $ 1,538,424 $ - Less: current maturities (590,377 ) - Long-term obligations $ 948,047 $ - |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Three Months Ended May 31, 2020 2019 Outstanding non-vested restricted stock units as of February 28 or 29: 265,555 25,002 Granted - 270,000 Vested (41,131 ) - Cancelled/forfeited - - Outstanding non-vested restricted stock units as of May 31: 224,424 295,002 Weighted average grant date fair value $ 9.39 $ 9.62 Weighted average remaining vesting period (in years) 4.33 4.94 |
Note 12 - Leasing Arrangements
Note 12 - Leasing Arrangements (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | FYE 21 $ 616,088 FYE 22 694,755 FYE 23 437,445 FYE 24 315,962 FYE 25 164,223 Thereafter 552,817 Total $ 2,781,290 Less: imputed interest (262,846 ) Present value of lease liabilities: $ 2,518,444 Weighted average lease term 6.7 |
Note 14 - FTD Loss Contingency
Note 14 - FTD Loss Contingency (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Loss Contingencies by Contingency [Table Text Block] | May 31, 2020 Ingredients and supplies $ 296,019 Finished candy 20,562 Accounts receivable 79,744 Reserve for estimated losses (198,054 ) Total potential loss, contingent upon the bankruptcy proceedings $ 198,271 |
Note 16 - Operating Segments (T
Note 16 - Operating Segments (Tables) | 3 Months Ended |
May 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended May 31, 2020 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 254,477 $ 2,293,093 $ 59,981 $ 254,047 $ - $ 2,861,598 Intersegment revenues (683 ) (158,478 ) - - - (159,161 ) Revenue from external customers 253,794 2,134,615 59,981 254,047 - 2,702,437 Segment profit (loss) (451,319 ) (783,469 ) (477,825 ) (457,718 ) (2,676,394 ) (4,846,725 ) Total assets 1,090,475 10,430,680 604,386 5,565,436 11,417,149 29,108,126 Capital expenditures - 13,854 - 1,712 6,922 22,488 Total depreciation & amortization $ 10,138 $ 161,830 $ 3,403 $ 146,949 $ 20,795 $ 343,115 Three Months Ended May 31, 2019 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,429,041 $ 5,866,472 $ 232,419 $ 1,159,805 $ - $ 8,687,737 Intersegment revenues (1,286 ) (260,452 ) - - - (261,738 ) Revenue from external customers 1,427,755 5,606,020 232,419 1,159,805 - 8,425,999 Segment profit (loss) 617,910 1,168,687 (15,012 ) 279,163 (1,106,964 ) 943,784 Total assets 1,275,471 11,660,148 992,148 6,330,540 9,290,136 29,548,443 Capital expenditures 10,540 223,552 9,518 - 39,938 283,548 Total depreciation & amortization $ 10,830 $ 150,132 $ 2,611 $ 190,769 $ 23,312 $ 377,654 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) - USD ($) | May 31, 2020 | Feb. 29, 2020 |
Notes Payable, Current, Total | $ 590,377 | |
SBA Loans [Member] | ||
Notes Payable, Current, Total | $ 1,540,000 | |
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 - Number of Stores (Details) | May 31, 2020 | |
Number of stores | 428 | |
Sold Not Yet Open [Member] | ||
Number of stores | 10 | |
Open [Member] | ||
Number of stores | 418 | [1] |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 2 | |
Company Owned Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 0 | |
Company Owned Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 2 | [1] |
Franchise Stores - Domestic Stores and Kiosks [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 174 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 3 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 171 | [1] |
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 62 | |
International License Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 2 | |
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 | 61 | [1] |
International License Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 2 | [1] |
Cold Stone Creamery - Co-Branded [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 103 | |
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 5 | |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 98 | [1] |
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 | [1] |
Franchise Stores - Domestic Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 74 | |
Franchise Stores - Domestic Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | ||
Franchise Stores - Domestic Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 74 | [1] |
Franchise Stores - Domestic Stores - Co-Branded [Member] | USwirl Inc [Member] | ||
Number of stores | 8 | |
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 | 7 | [1] |
[1] | Stores open and operating includes stores that have closed temporarily, the result of COVID-19. |
Note 2 - Supplemental Cash Fl_3
Note 2 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Interest | $ 13,362 | $ 9,814 |
Income taxes | (340) | 8,481 |
Accrued Inventory | 158,834 | 166,649 |
Dividend payable | $ 715,899 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts With Customers (Details Textual) | 3 Months Ended |
May 31, 2020 | |
Customers Contracts, Term (Year) | 10 years |
Maximum [Member] | |
Customers Contracts, Term (Year) | 20 years |
Franchise Agreement, Term (Year) | 15 years |
Minimum [Member] | |
Franchise Agreement, Term (Year) | 10 years |
Note 3 - Revenue From Contrac_4
Note 3 - Revenue From Contracts With Customers - Contract Liabilities (Details) - USD ($) | 3 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Contract liabilities at the beginning of the year: | $ 1,155,809 | $ 1,352,572 |
Revenue recognized | (55,016) | (106,280) |
Contract fees received | 27,500 | 16,032 |
Amortized gain on the financed sale of equipment | (1,043) | (3,133) |
Contract liabilities at the end of the period: | $ 1,127,250 | $ 1,259,191 |
Note 3 - Revenue From Contrac_5
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation (Details) | May 31, 2020USD ($) |
Revenue, remaining performance obligation, amount | $ 1,127,250 |
Note 3 - Revenue From Contrac_6
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation 2 (Details) | May 31, 2020USD ($) |
Revenue, remaining performance obligation, amount | $ 1,127,250 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 146,360 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 183,708 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 171,978 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 139,353 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 126,070 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 359,781 |
Note 4 - Disaggregation of Re_3
Note 4 - Disaggregation of Revenue - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Revenues | $ 2,702,437 | $ 8,425,999 |
Franchising [Member] | ||
Revenues | 253,794 | 1,427,755 |
Manufacturing [Member] | ||
Revenues | 2,134,615 | 5,606,020 |
Retail Segment [Member] | ||
Revenues | 59,981 | 232,419 |
USwirl Inc [Member] | ||
Revenues | 254,047 | 1,159,805 |
Franchise Fees [Member] | Transferred over Time [Member] | ||
Revenues | 55,016 | 106,280 |
Franchise Fees [Member] | Transferred over Time [Member] | Franchising [Member] | ||
Revenues | 41,702 | 80,019 |
Franchise Fees [Member] | Transferred over Time [Member] | Manufacturing [Member] | ||
Revenues | ||
Franchise Fees [Member] | Transferred over Time [Member] | Retail Segment [Member] | ||
Revenues | ||
Franchise Fees [Member] | Transferred over Time [Member] | USwirl Inc [Member] | ||
Revenues | 13,314 | 26,261 |
Factory Sales [Member] | Transferred at Point in Time [Member] | ||
Revenues | 2,134,615 | 5,606,020 |
Factory Sales [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||
Revenues | ||
Factory Sales [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||
Revenues | 2,134,615 | 5,606,020 |
Factory Sales [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||
Revenues | ||
Factory Sales [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||
Revenues | ||
Retail [Member] | Transferred at Point in Time [Member] | ||
Revenues | 187,596 | 854,591 |
Retail [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||
Revenues | ||
Retail [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||
Revenues | ||
Retail [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||
Revenues | 59,981 | 232,419 |
Retail [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||
Revenues | 127,615 | 622,172 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | ||
Revenues | 325,210 | 1,859,108 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||
Revenues | 212,092 | 1,347,736 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||
Revenues | ||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||
Revenues | ||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||
Revenues | $ 113,118 | $ 511,372 |
Note 5 - Inventories - Inventor
Note 5 - Inventories - Inventories (Details) - USD ($) | May 31, 2020 | Feb. 29, 2020 |
Ingredients and supplies | $ 2,355,461 | $ 2,186,652 |
Finished candy | 2,034,297 | 1,827,767 |
U-Swirl food and packaging | 42,086 | 56,708 |
Reserve for slow moving inventory | (291,017) | (320,149) |
Total inventories | $ 4,140,827 | $ 3,750,978 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Depreciation, Total | $ 194,557 | $ 201,110 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | May 31, 2020 | Feb. 29, 2020 |
Property, plant and equipment, gross | $ 18,246,665 | $ 18,657,351 |
Less accumulated depreciation | (12,543,081) | (12,719,338) |
Property and equipment, net | 5,703,584 | 5,938,013 |
Land [Member] | ||
Property, plant and equipment, gross | 513,618 | 513,618 |
Building [Member] | ||
Property, plant and equipment, gross | 5,031,395 | 5,031,395 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 10,470,117 | 10,664,396 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 805,139 | 852,557 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 985,407 | 1,154,396 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 440,989 | $ 440,989 |
Note 7 - Goodwill and Intangi_3
Note 7 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | 14 Months Ended | |
May 31, 2020 | May 31, 2019 | Feb. 29, 2020 | May 31, 2020 | |
Amortization of Intangible Assets, Total | $ 148,557 | $ 176,544 | ||
Store Design [Member] | ||||
Intangible Assets, Expected to Add During Period | $ 250,000 | |||
Finite-Lived Intangible Assets, Period Increase (Decrease), Total | $ 174,000 |
Note 7 - Goodwill and Intangi_4
Note 7 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 3 Months Ended | |
May 31, 2020 | Feb. 29, 2020 | |
Intangible assets subject to amortization, gross carrying value | $ 7,482,605 | $ 7,542,558 |
Intangible assets subject to amortization, accumulated amortization | 4,145,034 | 3,996,477 |
Intangible assets not subject to amortization, gross carrying value | 729,701 | 1,046,944 |
Total Intangible Assets | 8,212,306 | 8,589,502 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 4,145,034 | 3,996,477 |
Company Stores Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 515,065 | 832,308 |
Franchising Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 97,318 | 97,318 |
Manufacturing Segment Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 97,318 | 97,318 |
Trademarks [Member] | ||
Intangible assets not subject to amortization, gross carrying value | $ 20,000 | 20,000 |
Store Design [Member] | ||
Amortization Period (Year) | 10 years | |
Intangible assets subject to amortization, gross carrying value | $ 394,826 | 295,779 |
Intangible assets subject to amortization, accumulated amortization | 216,027 | 215,653 |
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 | 556,339 | 715,339 |
Intangible assets subject to amortization, accumulated amortization | $ 313,274 | 297,072 |
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 | $ 3,063,930 | $ 2,931,949 |
Note 7 - Goodwill and Intangi_5
Note 7 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | May 31, 2020USD ($) |
FYE 21 | $ 417,509 |
FYE 22 | 466,554 |
FYE 23 | 391,988 |
FYE 24 | 329,267 |
FYE 25 | 277,022 |
Thereafter | 1,281,184 |
Total | $ 3,163,524 |
Note 8 - Impairment of Long-l_3
Note 8 - Impairment of Long-lived and Intangible Assets (Details Textual) | 3 Months Ended |
May 31, 2020USD ($) | |
Asset Impairment Charges, Total | $ 544,801 |
General and Administrative Expense [Member] | COVID-19 Pandemic [Member] | |
Asset Impairment Charges, Total | $ 545,000 |
Note 8 - Impairment of Long-l_4
Note 8 - Impairment of Long-lived and Intangible Assets - Costs Associated with Impairment of Long-lived and Intangible Assets (Details) | 3 Months Ended |
May 31, 2020USD ($) | |
Company store goodwill impairment | $ 317,243 |
Trademark intangible asset impairment | 159,000 |
Company-owned store impairment of long-lived assets and inventory | 68,558 |
Total | $ 544,801 |
Note 9 - Line of Credit and L_3
Note 9 - Line of Credit and Long-term Debt (Details Textual) - USD ($) | Mar. 16, 2020 | May 31, 2020 | May 31, 2019 |
Proceeds from Notes Payable, Total | $ 1,537,200 | ||
SBA Loans [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||
Proceeds from Notes Payable, Total | $ 1,500,000 | ||
Interest Expense, Debt, Total | $ 3,200 | ||
Eligible Accounts Receivable [Member] | |||
Maximum Draws Allowed | 50.00% | ||
Eligible Inventories [Member] | |||
Maximum Draws Allowed | 50.00% | ||
Line of Credit [Member] | Wells Fargo Bank [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | $ 5,000,000 | |
Proceeds from Lines of Credit, Total | $ 3,400,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.40% | ||
Debt Instrument, Covenant, Adjusted EBITDA | $ 1,500,000 | ||
Line of Credit [Member] | Wells Fargo Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Note 9 - Line of Credit and L_4
Note 9 - Line of Credit and Long-term Debt - Long-term Note Payable (Details) - USD ($) | May 31, 2020 | Feb. 29, 2020 |
Less: current maturities | $ (590,377) | |
Long-term obligations | 948,047 | |
SBA Loans [Member] | ||
Paycheck protection program note payable in monthly installments of principal and interest at 1.0% per annum through April 2022 | 1,538,424 | |
Less: current maturities | $ (1,540,000) |
Note 9 - Line of Credit and L_5
Note 9 - Line of Credit and Long-term Debt - Long-term Note Payable (Details) (Parentheticals) | May 31, 2020 |
SBA Loans [Member] | |
Paycheck protection program note payable interest | 1.00% |
Note 10 - Stockholders' Equit_2
Note 10 - Stockholders' Equity (Details Textual) - USD ($) | Mar. 13, 2020 | Dec. 20, 2019 | Dec. 06, 2019 | Sep. 13, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | May 31, 2020 | May 31, 2019 | May 21, 2015 | Jan. 13, 2015 | Jul. 15, 2014 |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | ||||||
Stock Repurchase Program, Authorized Amount | $ 3,000,000 | ||||||||||
Stock Repurchase Program, Additional Authorized Amount | $ 2,090,000 | $ 2,058,000 | |||||||||
Treasury Stock, Shares, Acquired (in shares) | 0 | 0 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 638,000 | ||||||||||
Share-based Payment Arrangement, Expense | $ 143,718 | $ 231,254 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 0 | ||||||||||
Restricted Stock [Member] | |||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total (in shares) | 0 | ||||||||||
Unrestricted Shares of Stock [Member] | |||||||||||
Share-based Payment Arrangement, Expense | $ 0 | $ 42,525 | |||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total (in shares) | 4,500 | ||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||
Share-based Payment Arrangement, Expense | 143,718 | $ 188,729 | |||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,994,662 | ||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years 120 days | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | 270,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Grant Date Fair Value, Amount | $ 2,536,100 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 9.39 | $ 9.39 | |||||||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 6 years | 6 years | |||||||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | 5 years | |||||||||
Warrant to Purchase Common Stock [Member] | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 8.76 | ||||||||||
Certain Revenue Thresholds, Cumulative Basis Connection with Performance Basis (Year) | 5 years | ||||||||||
Warrants and Rights Outstanding, Term (Month) | 180 days | ||||||||||
Warrant to Purchase Common Stock [Member] | Maximum [Member] | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 960,677 |
Note 10 - Stockholders' Equit_3
Note 10 - Stockholders' Equity - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 3 Months Ended | |
May 31, 2020 | May 31, 2019 | |
Outstanding non-vested restricted stock units as of February 28 or 29: (in shares) | 265,555 | 25,002 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 0 | 270,000 |
Vested (in shares) | (41,131) | |
Cancelled/forfeited (in shares) | ||
Outstanding non-vested restricted stock units as of May 31: (in shares) | 224,424 | 295,002 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 9.39 | $ 9.39 |
Weighted average remaining vesting period (Year) | 4 years 120 days | 4 years 343 days |
Note 11 - Earnings Per Share (D
Note 11 - Earnings Per Share (Details Textual) | 3 Months Ended |
May 31, 2020shares | |
Warrant [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 960,677 |
Restricted Stock Units (RSUs) [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 209,960 |
Note 12 - Leasing Arrangement_2
Note 12 - Leasing Arrangements (Details Textual) - USD ($) | 3 Months Ended | |||
May 31, 2020 | May 31, 2019 | Feb. 29, 2020 | Mar. 01, 2019 | |
Operating Lease, Expense | $ 212,063 | $ 238,666 | ||
Operating Lease, Liability, Total | 2,518,444 | |||
Operating Lease, Right-of-Use Asset | $ 2,518,444 | $ 2,698,765 | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | |||
Lessee, Operating Lease, Liability, to be Paid, Total | $ 2,781,290 | |||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Liability, Total | $ 3,300,000 | |||
Operating Lease, Right-of-Use Asset | $ 3,300,000 | |||
Maximum [Member] | ||||
Lessee, Operating Lease, Term of Contract (Year) | 10 years | |||
Lessee, Operating Lease, Renewal Term (Year) | 10 years | |||
Minimum [Member] | ||||
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Note 12 - Leasing Arrangement_3
Note 12 - Leasing Arrangements - Maturities of Lease Liabilities for Operating Leases (Details) | May 31, 2020USD ($) |
FYE 21 | $ 616,088 |
FYE 22 | 694,755 |
FYE 23 | 437,445 |
FYE 24 | 315,962 |
FYE 25 | 164,223 |
Thereafter | 552,817 |
Total | 2,781,290 |
Less: imputed interest | (262,846) |
Operating Lease, Liability, Total | $ 2,518,444 |
Weighted average lease term (Year) | 6 years 255 days |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Details Textual) | 3 Months Ended |
May 31, 2020USD ($) | |
Contractual Obligation, Total | $ 227,000 |
Minimum [Member] | |
Purchase Contracts, Term (Month) | 180 days |
Maximum [Member] | |
Purchase Contracts, Term (Month) | 1 year 180 days |
Note 14 - FTD Loss Contingenc_2
Note 14 - FTD Loss Contingency (Details Textual) | 12 Months Ended |
Feb. 29, 2020USD ($) | |
FTD's Bankruptcy [Member] | |
Loss Contingency, Estimate Loss of Inventory | $ 230,384 |
Note 14 - FTD Loss Contingenc_3
Note 14 - FTD Loss Contingency - Balances (Details) - FTD's Bankruptcy [Member] | May 31, 2020USD ($) |
Possible loss, contingent upon the bankruptcy proceedings | $ 198,271 |
Reserve for estimated losses | (198,054) |
Accounts Receivable [Member] | |
Possible loss, contingent upon the bankruptcy proceedings | 79,744 |
Ingredients and Supplies [Member] | Inventories [Member] | |
Possible loss, contingent upon the bankruptcy proceedings | 296,019 |
Finished Candy [Member] | Inventories [Member] | |
Possible loss, contingent upon the bankruptcy proceedings | $ 20,562 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) $ in Thousands | 3 Months Ended |
May 31, 2020USD ($) | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
COVID-19 Pandemic [Member] | |
Tax Adjustments, Settlements, and Unusual Provisions | $ 0 |
Note 16 - Operating Segments (D
Note 16 - Operating Segments (Details Textual) | 3 Months Ended |
May 31, 2020 | |
Number of Reportable Segments | 5 |
Note 16 - Operating Segments -
Note 16 - Operating Segments - Segment Information (Details) - USD ($) | 3 Months Ended | ||
May 31, 2020 | May 31, 2019 | Feb. 29, 2020 | |
Revenues | $ 2,702,437 | $ 8,425,999 | |
Segment profit (loss) | (4,846,725) | 943,784 | |
Total assets | 29,108,126 | 29,548,443 | $ 27,817,388 |
Capital expenditures | 22,488 | 283,548 | |
Total depreciation and amortization | 343,115 | 377,654 | |
Franchising [Member] | |||
Revenues | 253,794 | 1,427,755 | |
Segment profit (loss) | (451,319) | 617,910 | |
Total assets | 1,090,475 | 1,275,471 | |
Capital expenditures | 10,540 | ||
Total depreciation and amortization | 10,138 | 10,830 | |
Manufacturing [Member] | |||
Revenues | 2,134,615 | 5,606,020 | |
Segment profit (loss) | (783,469) | 1,168,687 | |
Total assets | 10,430,680 | 11,660,148 | |
Capital expenditures | 13,854 | 223,552 | |
Total depreciation and amortization | 161,830 | 150,132 | |
Retail Segment [Member] | |||
Revenues | 59,981 | 232,419 | |
Segment profit (loss) | (477,825) | (15,012) | |
Total assets | 604,386 | 992,148 | |
Capital expenditures | 9,518 | ||
Total depreciation and amortization | 3,403 | 2,611 | |
U-Swirl Segment [Member] | |||
Revenues | 254,047 | 1,159,805 | |
Segment profit (loss) | (457,718) | 279,163 | |
Total assets | 5,565,436 | 6,330,540 | |
Capital expenditures | 1,712 | ||
Total depreciation and amortization | 146,949 | 190,769 | |
Other Segments [Member] | |||
Revenues | 0 | ||
Segment profit (loss) | (2,676,394) | (1,106,964) | |
Total assets | 11,417,149 | 9,290,136 | |
Capital expenditures | 6,922 | 39,938 | |
Total depreciation and amortization | 20,795 | 23,312 | |
Operating Segments [Member] | |||
Revenues | 2,861,598 | 8,687,737 | |
Operating Segments [Member] | Franchising [Member] | |||
Revenues | 254,477 | 1,429,041 | |
Operating Segments [Member] | Manufacturing [Member] | |||
Revenues | 2,293,093 | 5,866,472 | |
Operating Segments [Member] | Retail Segment [Member] | |||
Revenues | 59,981 | 232,419 | |
Operating Segments [Member] | U-Swirl Segment [Member] | |||
Revenues | 254,047 | 1,159,805 | |
Operating Segments [Member] | Other Segments [Member] | |||
Revenues | 0 | ||
Intersegment Eliminations [Member] | |||
Revenues | (159,161) | (261,738) | |
Intersegment Eliminations [Member] | Franchising [Member] | |||
Revenues | (683) | (1,286) | |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||
Revenues | (158,478) | (260,452) | |
Intersegment Eliminations [Member] | Retail Segment [Member] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | Other Segments [Member] | |||
Revenues | $ 0 | $ 0 |