Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | May 16, 2022 | Aug. 31, 2021 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001616262 | ||
Entity Registrant Name | Rocky Mountain Chocolate Factory, Inc. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-28 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 28, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-36865 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-1535633 | ||
Entity Address, Address Line One | 265 Turner Drive | ||
Entity Address, City or Town | Durango | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 81303 | ||
City Area Code | 970 | ||
Local Phone Number | 259-0554 | ||
Title of 12(b) Security | Common Stock, $0.001 Par Value per Share | ||
Trading Symbol | RMCF | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 39,486,332 | ||
Entity Common Stock, Shares Outstanding | 6,207,165 | ||
Auditor Name | Plante & Moran, PLLC | ||
Auditor Location | Boulder, Colorado | ||
Auditor Firm ID | 166 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Revenues | |||
Total revenue | $ 32,342,579 | $ 23,480,705 | $ 31,849,796 |
Costs and Expenses | |||
Cost of sales | 19,167,672 | 16,118,625 | 18,214,896 |
Sales and marketing | 1,610,748 | 1,712,834 | 1,922,650 |
General and administrative | 7,550,973 | 5,258,035 | 5,735,971 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $620,798, $625,526, and $597,430, respectively, included in cost of sales | 586,255 | 710,656 | 895,395 |
Costs associated with Company-owned store closures | 0 | 57,100 | 15,400 |
Total costs and expenses | 32,827,024 | 26,954,592 | 30,458,186 |
Income (Loss) from Operations | (484,445) | (3,473,887) | 1,391,610 |
Other Income (Expense) | |||
Interest expense | 0 | (94,506) | (19,016) |
Interest income | 11,007 | 17,662 | 29,738 |
Gain on insurance recovery | 167,123 | 210,464 | 0 |
Paycheck Protection Program | 0 | 1,548,576 | 0 |
Other income (expense), net | 178,130 | 1,682,196 | 10,722 |
Income (Loss) Before Income Taxes | (306,315) | (1,791,691) | 1,402,332 |
Income Tax Provision | 35,382 | (891,914) | 368,500 |
Consolidated Net Income (Loss) | $ (341,697) | $ (899,777) | $ 1,033,832 |
Basic Earnings per Common Share (in dollars per share) | $ (0.06) | $ (0.15) | $ 0.17 |
Diluted Earnings per Common Share (in dollars per share) | $ (0.06) | $ (0.15) | $ 0.17 |
Weighted Average Common Shares | |||
Outstanding - Basic (in shares) | 6,140,687 | 6,067,461 | 5,986,371 |
Dilutive Effect of Employee | |||
Stock Awards (in shares) | 0 | 0 | 268,972 |
Weighted Average Common Share | |||
Outstanding - Diluted (in shares) | 6,140,687 | 6,067,461 | 6,255,343 |
Product [Member] | |||
Revenues | |||
Total revenue | $ 25,227,495 | $ 19,179,447 | $ 24,718,968 |
Franchise and Royalty Fees [Member] | |||
Revenues | |||
Total revenue | 7,115,084 | 4,301,258 | 7,130,828 |
Franchise [Member] | |||
Costs and Expenses | |||
Costs | 2,183,689 | 1,715,588 | 1,882,185 |
Retail [Member] | |||
Costs and Expenses | |||
Costs | $ 1,727,687 | $ 1,381,754 | $ 1,791,689 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Amortization expense included in cost of goods sold | $ 620,798 | $ 625,526 | $ 597,430 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 28, 2022 | Feb. 28, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 7,587,374 | $ 5,633,279 |
Accounts receivable, less allowance for doubtful accounts of $870,735 and $1,341,853, respectively | 1,967,914 | 2,007,502 |
Notes receivable, current portion, less current portion of the valuation allowance of $47,228 and $32,571, respectively | 8,680 | 84,819 |
Refundable income taxes | 736,528 | 774,527 |
Inventories | 4,354,202 | 4,062,885 |
Other | 343,268 | 213,811 |
Total current assets | 14,997,966 | 12,776,823 |
Property and Equipment, Net | 5,499,890 | 5,152,015 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $65,059 and $79,716, respectively | 0 | 42,525 |
Goodwill, net | 729,701 | 729,701 |
Franchise rights, net | 2,078,066 | 2,519,764 |
Intangible assets, net | 353,685 | 395,946 |
Deferred income taxes | 1,388,271 | 1,144,764 |
Lease right of use asset | 1,771,034 | 1,925,591 |
Other | 62,148 | 264,023 |
Total other assets | 6,382,905 | 7,022,314 |
Total Assets | 26,880,761 | 24,951,152 |
Current Liabilities | ||
Accounts payable | 1,579,917 | 1,297,211 |
Accrued salaries and wages | 2,125,430 | 735,241 |
Gift card liabilities | 574,883 | 617,438 |
Other accrued expenses | 239,644 | 253,345 |
Contract liabilities | 195,961 | 194,737 |
Lease liability | 595,897 | 682,348 |
Total current liabilities | 5,311,732 | 3,780,320 |
Lease Liability, Less Current Portion | 1,218,256 | 1,278,354 |
Contract Liabilities, Less Current Portion | 950,847 | 924,909 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock | 0 | 0 |
Common stock, $.001 par value, 46,000,000 shares authorized, 6,186,356 shares and 6,074,293 shares issued and outstanding, respectively | 6,186 | 6,074 |
Additional paid-in capital | 8,806,930 | 7,971,712 |
Retained earnings | 10,586,810 | 10,989,783 |
Total stockholders' equity | 19,399,926 | 18,967,569 |
Total Liabilities and Stockholders' Equity | $ 26,880,761 | $ 24,951,152 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Feb. 28, 2022 | Feb. 28, 2021 |
Accounts receivable, allowance for doubtful accounts | $ 870,735 | $ 1,341,853 |
Notes receivable, current portion of the valuation allowance | 47,228 | 32,571 |
Notes receivable, noncurrent portion of valuation allowance | $ 65,059 | $ 79,716 |
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) | 6,186,356 | 6,074,293 |
Common stock, shares outstanding (in shares) | 6,186,356 | 6,074,293 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - 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 | |
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld | 23 | 210,951 | ||
Equity compensation, restricted stock units, net of shares withheld | 39 | 598,116 | ||
Balance at Feb. 29, 2020 | $ 6,020 | 7,459,931 | 11,889,560 | $ 19,355,511 |
Net (loss) income attributable to RMCF stockholders | 1,033,832 | 1,033,832 | ||
Cash dividends declared | (2,877,282) | |||
Redemption of outstanding preferred stock purchase rights | 0 | |||
Balance (in shares) at Feb. 28, 2019 | 5,957,827 | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld (in shares) | 22,870 | |||
Equity compensation, restricted stock units, net of shares withheld (in shares) | 38,835 | |||
Balance (in shares) at Feb. 29, 2020 | 6,019,532 | |||
Balance at Feb. 28, 2021 | $ 6,074 | 7,971,712 | 10,989,783 | 18,967,569 |
Net (loss) income attributable to RMCF stockholders | (899,777) | |||
Balance (in shares) at Feb. 28, 2021 | 6,074,293 | |||
Balance at Mar. 30, 2020 | $ 6,020 | 7,459,931 | 11,889,560 | |
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld | 0 | 0 | ||
Equity compensation, restricted stock units, net of shares withheld | 54 | 511,781 | ||
Balance at Feb. 28, 2021 | $ 6,074 | 7,971,712 | 10,989,783 | 18,967,569 |
Net (loss) income attributable to RMCF stockholders | (899,777) | |||
Cash dividends declared | 0 | |||
Redemption of outstanding preferred stock purchase rights | 0 | |||
Balance (in shares) at Mar. 30, 2020 | 6,019,532 | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld (in shares) | 0 | |||
Equity compensation, restricted stock units, net of shares withheld (in shares) | 54,761 | |||
Balance (in shares) at Feb. 28, 2021 | 6,074,293 | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld | $ 9 | 46,601 | ||
Equity compensation, restricted stock units, net of shares withheld | 103 | 788,617 | ||
Balance at Feb. 28, 2022 | $ 6,186 | $ 8,806,930 | 10,586,810 | 19,399,926 |
Net (loss) income attributable to RMCF stockholders | (341,697) | $ (341,697) | ||
Cash dividends declared | 0 | |||
Redemption of outstanding preferred stock purchase rights | $ (61,276) | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld (in shares) | 9,000 | |||
Equity compensation, restricted stock units, net of shares withheld (in shares) | 103,063 | |||
Balance (in shares) at Feb. 28, 2022 | 6,186,356 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Cash Flows From Operating Activities | |||
Net (loss) income | $ (341,697) | $ (899,777) | $ 1,033,832 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 1,207,053 | 1,336,182 | 1,492,825 |
Provision for obsolete inventory | 384,473 | 262,156 | 360,614 |
Provision for loss on accounts and notes receivable | 0 | 1,257,010 | 197,830 |
Asset impairment and store closure losses | 0 | 532,602 | 15,400 |
(Gain) Loss on sale or disposal of property and equipment | (171,476) | (197,037) | 11,174 |
Forgiveness of Paycheck Protection Program | 0 | (1,537,200) | 0 |
Expense recorded for stock compensation | 1,073,115 | 511,835 | 866,177 |
Deferred income taxes | (243,507) | (514,685) | (22,657) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 39,588 | 1,022,975 | (453,816) |
Refundable income taxes | 37,999 | (356,209) | (228,118) |
Inventories | (598,234) | (617,268) | 297,306 |
Other current assets | (129,457) | 195,891 | (91,577) |
Accounts payable | 209,266 | (901,090) | 1,205,891 |
Accrued liabilities | 1,341,941 | (2,318) | (47,783) |
Contract liabilities | 49,090 | (25,721) | (184,232) |
Net cash provided by operating activities | 2,858,154 | 67,346 | 4,452,866 |
Cash Flows from Investing Activities | |||
Proceeds received on notes receivable | 118,663 | 85,345 | 146,455 |
Purchase of intangible assets | 0 | (99,048) | (75,000) |
Proceeds from insurance recovery | 206,336 | 304,962 | 0 |
Proceeds from the sale or distribution of assets | 27,693 | 0 | 763 |
Purchases of property and equipment | (947,690) | (154,492) | (983,941) |
(Increase) decrease in other assets | (10,000) | (207,761) | 314 |
Net cash used in investing activities | (604,998) | (70,994) | (911,409) |
Cash Flows from Financing Activities | |||
Payments on long-term debt | 0 | 0 | (1,176,488) |
Repurchase of common stock through net settlement of restricted stock units | (237,785) | 0 | (57,048) |
Proceeds from Paycheck Protection Program | 0 | 1,537,200 | 0 |
Dividends paid and redemption of outstanding preferred stock purchase rights | (61,276) | (722,344) | (2,869,877) |
Net cash provided by (used in) financing activities | (299,061) | 814,856 | (4,103,413) |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,954,095 | 811,208 | (561,956) |
Cash and Cash Equivalents, Beginning of Period | 5,633,279 | 4,822,071 | 5,384,027 |
Cash and Cash Equivalents, End of Period | $ 7,587,374 | $ 5,633,279 | $ 4,822,071 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 28, 2022 | |
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”), U-Swirl International, Inc. (“U-Swirl”), and U-Swirl, Inc. (“SWRL”) (collectively, the “Company” or "RMCF"). 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 2021 1,000 no 2022 not 2022 FY2021 no The following table summarizes the number of stores operating under the Rocky Mountain Chocolate Factory brand and its subsidiaries at February 28, 2022: Sold, Not Yet Open Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 6 154 160 International license stores 1 5 6 Cold Stone Creamery - co-branded 5 97 102 U-Swirl (Including all associated brands) Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores 1 55 56 Franchise stores - Domestic - co-branded 1 6 6 International license stores - 1 1 Total 14 323 337 Consolidation Management accounts for the activities of the Company and its subsidiaries, and the accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three February 28, 2022. Accounts and Notes Receivable In the normal course of business, the Company extends credit to customers, primarily franchisees that satisfy pre-defined credit criteria. The Company believes that it has limited concentration of credit risk primarily because its receivables are secured by the assets of the franchisees to which the Company ordinarily extends credit, including, but not may February 28, 2022, February 28, 2021. May 2023 may 19. March 1, 2021 2020 Inventories Inventories are stated at the lower of cost or net realizable value, which is adjusted for obsolete, damaged and excess inventories to the lower of cost or net realizable value based on actual differences. The inventory value is determined through analysis of items held in inventory, and, if the recorded value is higher than the market value, the Company records an expense to reduce inventory to its actual market value. The process by which the Company performs its analysis is conducted on an item by item basis and takes into account, among other relevant factors, market value, sales history and future sales potential. Cost is determined using the first first Property and Equipment and Other Assets Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method based upon the estimated useful life of the asset, which range from five thirty-nine The Company reviews its long-lived assets through analysis of estimated fair value, including identifiable intangible assets, whenever events or changes indicate the carrying amount of such assets may not Income Taxes The Company provides for income taxes pursuant to the liability method. The liability method requires recognition of deferred income taxes based on temporary differences between financial reporting and income tax basis of assets and liabilities, using current enacted income tax rates and regulations. These differences will result in taxable income or deductions in future years when the reported amount of the asset or liability is recovered or settled, respectively. Considerable judgment is required in determining when these events may not. 382 14. Gift Card Breakage The Company and its franchisees sell gift cards that are redeemable for product in stores. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their stores. A liability for unredeemed gift cards is included current liabilities in the balance sheets. There are no not may February 28, 2022 February 28, 2021, 2022 2021, Goodwill Goodwill arose primarily from two first second The Company performs a goodwill impairment test on an annual basis or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not 2021, 19 three May 31, 2020 ( first 7 Intangible Assets Intangible assets represent non-physical assets that create future economic value and are primarily composed of packaging design, store design, trademarks and non-competition agreements. Intangible assets are amortized on a straight line bases over a period ranging from 3 years to 20 years based on the expected future economic value of the intangible asset. Intangible assets are recorded at their cost. The Company performs intangible asset impairment testing on an annual basis or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not 7 Franchise Rights Franchise rights arose from the entry into agreements to acquire substantially all of the franchise rights of Yogurtini, CherryBerry, Fuzzy Peach, Let’s Yo! and Yogli Mogli. Franchise rights are amortized over a period of 20 years. Insurance and Self-Insurance Reserves The Company uses a combination of insurance and self-insurance plans to provide for the potential liabilities for workers’ compensation, general liability, property insurance, director and officers’ liability insurance, vehicle liability and employee health care benefits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other assumptions. While the Company believes that its assumptions are appropriate, the estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. Sales The Company has performance obligations to sell products to franchisees and other customers, and revenue is recognized at a point in time. Control is transferred when the order has been shipped to a customer, utilizing a third Rebates Rebates received from purveyors that supply products to the Company’s franchisees are included in franchise royalties and fees. Product rebates are recognized in the period in which they are earned. Rebates related to Company-owned locations are offset against operating costs. Shipping Fees Shipping fees charged to customers by the Company’s trucking department are reported as sales. Shipping costs incurred by the Company for inventory are reported as cost of sales or inventory. Franchise and Royalty Fees The Company recognizes franchise fees over the term of the associated franchise agreement, which is generally a period of 10 to 15 years. In addition to the initial franchise fee, the Company also recognizes a marketing and promotion fee of one no ten Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, and revenues and expenses during the reporting period. Actual results could differ from those estimates. Vulnerability Due to Certain Concentrations As described above, In FY 2020, 2020, January 2021. 2020 2022 2022. February 28, 2022, February 28, 2021. 2022, not no Stock-Based Compensation At February 28, 2022, one 2007 The Company recognized $1,073,115, $511,835, and $866,177 related to equity-based compensation expense during the years ended February 28 29, 2022, 2021 2020, During FY 2022, 2021, not no 2022 2021. five six 2022 2021 2020. February 28, 2022 The Company issued 9,000 unrestricted shares of stock to non-employee directors during the year ended February 28, 2022 no February 28, 2021 February 29, 2020. February 28 29, 2022, 2021 2020, During FY 2022 March 2025. 1, 12 19 February 29, 2020 February 29, 2020. Earnings Per Share Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through stock options and restricted stock units. Following the expiration of all outstanding options during FY 2017, no The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not February 28, 2022, February 28, 2021, Advertising and Promotional Expenses The Company expenses advertising costs as incurred. Total advertising expense for RMCF amounted to $210,103, $265,285, and $276,602 for the fiscal years ended February 28 29, 2022, 2021 2020, February 28 29, 2022, 2021 2020, Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, trade receivables, payables, notes payable and notes receivable. The fair value of all instruments approximates the carrying value, because of the relatively short maturity of these instruments. 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 December 2019, 2019 12, 740 December 15, 2020 March 1, 2021 ( first 2022 not Related Party Transactions As described above, in FY 2020 2021, 2020 January 2021. February 28, 2022, 2021 2020, Subsequent Events Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no |
Note 2 - Supplemental Cash Flow
Note 2 - Supplemental Cash Flow Information | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 2 For the three February 28 29: Cash paid (received) for: 2022 2021 2020 Interest $ 5,202 $ 76,803 $ 20,610 Income taxes 240,890 (21,021 ) 619,276 Non-cash Financing Activities Dividend payable $ - $ - $ 722,344 |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 3 The Company recognizes revenue from contracts with its customers in accordance with Accounting Standards Codification® (“ASC”) 606, not Initial Franchise Fees, License Fees, Transfer Fees and Renewal Fees The initial franchise services are not The following table summarizes contract liabilities as of February 28, 2022 February 28, 2021: Twelve Months Ended February 29 or 28: 2022 2021 Contract liabilities at the beginning of the year: $ 1,119,646 $ 1,155,809 Revenue recognized (213,911 ) (226,720 ) Contract fees received 263,000 201,000 Amortized gain on the financed sale of equipment (21,927 ) (10,443 ) Contract liabilities at the end of the year: $ 1,146,808 $ 1,119,646 At February 28, 2022, not 2023 $ 195,961 2024 172,991 2025 158,006 2026 145,884 2027 129,193 Thereafter 344,773 Total $ 1,146,808 Gift Cards The Company’s franchisees sell gift cards, which do not 606 Factory Sales of Confectionary Items, Retail Sales and Royalty and Marketing Fees Confectionary items sold to the Company’s franchisees, others and its Company-owned stores sales are recognized at the time of the underlying sale, based on the terms of the sale and when ownership of the inventory is transferred, and are presented net of sales taxes and discounts. Royalties and marketing fees from franchised or licensed locations, which are based on a percent of sales and recognized at the time the sales occur. |
Note 4 - Disaggregation of Reve
Note 4 - Disaggregation of Revenue | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Disaggregation of Revenue [Text Block] | NOTE 4 The following table presents disaggregated revenue by the method of recognition and segment: For the Year Ended February 28, 2022 Revenues recognized over time: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 179,678 $ - $ - $ 34,233 $ 213,911 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 22,374,175 - - 22,374,175 Retail sales - - 1,160,295 1,693,025 2,853,320 Royalty and marketing fees 5,774,400 - - 1,126,773 6,901,173 Total $ 5,954,078 $ 22,374,175 $ 1,160,295 $ 2,854,031 $ 32,342,579 For the Year Ended February 28, 2021 Revenues recognized over time: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 178,042 $ - $ - $ 48,678 $ 226,720 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 17,321,001 - - 17,321,001 Retail sales - - 896,793 961,653 1,858,446 Royalty and marketing fees 3,367,345 - - 707,193 4,074,538 Total $ 3,545,387 $ 17,321,001 $ 896,793 $ 1,717,524 $ 23,480,705 For the Year Ended February 29, 2020 Revenues recognized over time: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 230,543 $ - $ - $ 94,439 $ 324,982 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 21,516,530 - - 21,516,530 Retail sales - - 1,104,171 2,098,267 3,202,438 Royalty and marketing fees 5,300,089 - - 1,505,757 6,805,846 Total $ 5,530,632 $ 21,516,530 $ 1,104,171 $ 3,698,463 $ 31,849,796 |
Note 5 - Inventories
Note 5 - Inventories | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5 Inventories consist of the following at February 28: 2022 2021 Ingredients and supplies $ 2,753,068 $ 2,464,123 Finished candy 2,168,084 1,888,818 U-Swirl food and packaging 56,319 39,518 Reserve for slow moving inventory (623,269 ) (329,574 ) Total inventories $ 4,354,202 $ 4,062,885 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment, Net | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 Property and equipment consists of the following at February 28: 2022 2021 Land $ 513,618 $ 513,618 Building 5,148,854 4,827,807 Machinery and equipment 10,207,182 10,129,508 Furniture and fixtures 787,921 797,303 Leasehold improvements 985,914 985,407 Transportation equipment 479,701 429,789 18,123,190 17,683,432 Less accumulated depreciation (12,623,300 ) (12,531,417 ) Property and equipment, net $ 5,499,890 $ 5,152,015 Depreciation expense related to property and equipment totaled $723,094, $765,764, and $786,648 during the fiscal years ended February 28 29, 2022, 2021 2020, |
Note 7 - Goodwill and Intangibl
Note 7 - Goodwill and Intangible Assets | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 Goodwill and intangible assets consist of the following at February 28: 2022 2021 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 394,826 $ 240,409 $ 394,826 $ 221,504 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 - 20 556,339 357,071 556,339 333,715 Franchise rights 20 5,979,637 3,901,571 5,979,637 3,459,873 Total 7,482,605 5,050,854 7,482,605 4,566,895 Goodwill and intangible assets not subject to amortization Franchising segment Company stores goodwill $ 515,065 $ 515,065 Franchising goodwill 97,318 97,318 Manufacturing segment-goodwill 97,318 97,318 Trademark 20,000 20,000 Total 729,701 729,701 Total Goodwill and Intangible Assets $ 8,212,306 $ 5,050,854 $ 8,212,306 $ 4,566,895 Amortization expense related to intangible assets totaled $483,959, $570,418, and $706,177 during the fiscal years ended February 28 29, 2022, 2021 2020, At February 28, 2022, 2023 409,393 2024 346,672 2025 294,427 2026 251,342 2027 215,382 Thereafter 914,535 Total $ 2,431,751 |
Note 8 - Impairment of Long-liv
Note 8 - Impairment of Long-lived and Intangible Assets | 12 Months Ended |
Feb. 28, 2022 | |
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. Certain interim tests conducted during the three May 31, 2020 not 19 not The assessment of our goodwill, trademark and long-lived asset fair values includes many assumptions 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. During FY 2021, Company store goodwill impairment $ 317,243 Trademark intangible asset impairment 159,000 Company-owned store impairment of long-lived assets 57,100 Total $ 533,343 During FY 2022 2020 |
Note 9 - Notes Payable and Revo
Note 9 - Notes Payable and Revolving Credit Line | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 9 Paycheck Protection Program During FY 2021 2021, The amount of loan proceeds eligible for forgiveness was based on a formula based on a number of factors, including the amount of loan proceeds used by the Company during the period after the loan origination for certain purposes, including payroll costs, interest on certain mortgage obligations, rent payments on certain leases, and certain qualified utility payments, provided that, among other things, at least 60 75% Revolving Credit Line The Company has a $5.0 million credit line for general corporate and working capital purposes, of which $5.0 million was available for borrowing (subject to certain borrowing base limitations) as of February 28, 2022. February 28, 2022). February 28, 2022, September 2022. |
Note 10 - Stock Compensation Pl
Note 10 - Stock Compensation Plans | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE 10 In FY 2021, 2007 “2007 2007 The following table summarizes stock awards under the 2007 February 28, 2022: Original share authorization: 300,000 Prior plan shares authorized and incorporated in the 2007 Plan: 85,340 Additional shares authorized through 2007 Plan amendments: 600,000 Available for award: 985,340 Cancelled/forfeited: 234,490 Shares awarded as unrestricted shares, stock options or restricted stock units: (901,545 ) Shares available for award: 318,285 Information with respect to restricted stock unit awards outstanding under the 2007 February 28, 2022, three Twelve Months Ended February 28 or 29: 2022 2021 2020 Outstanding non-vested restricted stock units at beginning of year: 209,450 265,555 25,002 Granted 26,058 - 280,000 Vested (127,130 ) (54,761 ) (38,835 ) Cancelled/forfeited (2,400 ) (1,344 ) (612 ) Outstanding non-vested restricted stock units as of February 28: 105,978 209,450 265,555 Weighted average grant date fair value $ 9.33 $ 9.40 $ 9.39 Weighted average remaining vesting period (in years) 2.26 3.68 4.56 The Company has no outstanding stock options as of February 28, 2022, February 28, 2021, February 29, 2020. |
Note 11 - Leasing Arrangements
Note 11 - Leasing Arrangements | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE 11 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 franchised locations are leased by the franchisee directly. 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 following is a schedule of lease expense for all retail operating leases for the three February 28 29: 2022 2021 2020 Minimum rentals $ 406,529 $ 428,421 $ 733,190 Less sublease rentals (60,254 ) (113,515 ) (318,000 ) Contingent rentals 22,800 27,803 21,600 $ 369,075 $ 342,708 $ 436,790 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. The following is a schedule of lease expense for trucking equipment operating leases for the three February 28 29: 2022 2021 2020 270,767 340,731 342,297 ASU 2016 02 842 not The amount of the ‘Right of Use Asset’ and ‘Lease Liability’ recorded in the Consolidated Balance Sheets upon the adoption of ASU 2016 02 not not not not February 28, 2022. As of February 28, 2022, FYE 23 $ 606,320 FYE 24 417,930 FYE 25 268,966 FYE 26 171,324 FYE 27 81,369 Thereafter 439,770 Total $ 1,985,679 Less: Imputed interest (171,526 ) Present value of lease liabilities: $ 1,814,153 Weighted average lease term 6.7 The Company did not February 28, 2022 February 28, 2021. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 Employment Agreement Payments upon a Change in Control The Company has entered into employment agreements with certain of its executives which contain, among other things, "change in control" severance provisions. The employment agreements generally provide that, if the Company or the executive terminates the executive's employment under circumstances constituting a "triggering termination," the executive will be entitled to receive, among other benefits, 2.99 two 25% 18 A “change in control,” as used in these employment agreements, generally means a change in the control of the Company following any number of events, but specifically a proxy contest in which our Board of Directors prior to the transaction constitutes less than a majority of our Board of Directors after the transaction or the members of our Board of Directors during any consecutive two two may As a result of the changes in the Company’s Board of Directors, the Company may February 28, 2022 may may Purchase contracts The Company frequently enters into purchase contracts of between six eighteen may may may February 28, 2022, not Litigation From time to time, the Company is involved in litigation relating to claims arising out of its operations. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. At February 28, 2022, not |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 13 Cash Dividend The Company paid a quarterly cash dividend of $0.12 per common share on March 13, 2020 February 28, 2020. May 2020, first 19. 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 On October 2, 2021, March 1, 2015, October 2021 Warrants In consideration of Edible entering into the exclusive supplier agreement and the performance of its obligations therein, on December 20, 2019, five six fifth The Company determined that the grant date fair value of the warrants was de minimis and did not |
Note 14 - Income Taxes
Note 14 - Income Taxes | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 14 Income tax expense (benefit) is comprised of the following for the years ended February 28 29: 2022 2021 2020 Current Federal $ 226,985 $ (398,303 ) $ 306,000 State 51,904 21,074 85,157 Total Current 278,889 (377,229 ) 391,157 Deferred Federal (210,876 ) (441,734 ) (19,350 ) State (32,631 ) (72,951 ) (3,307 ) Total Deferred (243,507 ) (514,685 ) (22,657 ) Total $ 35,382 $ (891,914 ) $ 368,500 A reconciliation of the statutory federal income tax rate and the effective rate as a percentage of pretax income is as follows for the years ended February 28 29: 2022 2021 2020 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 3.9 % 4.0 % 4.6 % Paycheck Protection Program debt forgiveness 0.0 % 18.0 % 0.0 % Work opportunity tax credits (2.0 )% 0.2 % (1.1 )% Equity compensation tax expense (13.8 )% (1.7 )% 1.4 % Compensation and benefits permanent differences (3.1 )% 0.0 % 0.0 % Other (0.2 )% 0.1 % 0.4 % Impact of CARES act (17.4 )% 8.2 % 0.0 % Effective tax rate (11.6 )% 49.8 % 26.3 % During FY 2022 2022 2021 2020. The effective income tax rate for the year ended February 28, 2021 February 28, 2020, no 2021 The components of deferred income taxes at February 28 29 2022 2021 Deferred Tax Assets Allowance for doubtful accounts and notes $ 241,725 $ 357,573 Inventories 153,262 81,042 Accrued compensation 432,772 140,702 Loss provisions and deferred income 424,373 389,858 Self-insurance accrual 27,787 31,721 Amortization 357,254 396,195 Restructuring charges 98,693 98,693 Accumulated net losses 445,560 445,414 Valuation allowance (98,693 ) (98,693 ) Net deferred tax assets $ 2,082,733 $ 1,842,505 Deferred Tax Liabilities Depreciation and amortization (624,766 ) (653,798 ) Prepaid expenses (69,696 ) (43,943 ) Deferred Tax Liabilities (694,462 ) (697,741 ) Net deferred tax assets $ 1,388,271 $ 1,144,764 The following table summarizes deferred income tax valuation allowances as of February 28: 2022 2021 Valuation allowance at beginning of period $ 98,693 $ 98,693 Tax expense (benefits) realized by valuation allowance - - Tax benefits released from valuation allowance - - Impact of tax reform - - Valuation allowance at end of period $ 98,693 $ 98,693 Under the recently enacted CARES Act a net operating loss (“NOL”) arising during the Company’s fiscal year 2021 five 2016 2020. five 21% 34%, February 28, 2018. 2022 2021 February 28, 2022. The Company’s deferred tax assets are valued at the current federally enacted rate of 21%. The loss carryback provisions of the CARES Act will enable the Company to offset taxable income from prior years when federally enacted tax rates were higher than 21%. 2021. In December 2020 2021 may 2021 no The Company files income tax returns in the U.S. federal and various state taxing jurisdictions. With few exceptions, the Company is no 2017. February 28 29, 2017, 2016, 2015 2014 not Realization of the Company's deferred tax assets is dependent upon the Company generating sufficient taxable income, in the appropriate tax jurisdictions, in future years, to obtain benefit from the reversal of net deductible temporary differences. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are changed. Management believes that, with the exception of the deferred tax asset related to restructuring charges, it is more likely than not February 28, 2022. The Company accounts for uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if it is more likely than not 50% may not February 28, 2022 2021. not not twelve February 28, 2022 2021. The Company’s subsidiaries, SWRL, along with U-Swirl had a history of net operating losses prior to the company’s acquisition of them and thus the Company has a related net operating loss carry forward. In accordance with Section 382 may 2017 The Company estimates that the potential future tax deductions of U-Swirl’s Federal net operating losses, limited by section 382, 2026. |
Note 15 - Employee Benefit Plan
Note 15 - Employee Benefit Plan | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 15 The Company has a 401 401 February 28 29, 2022, 2021 2020, |
Note 16 - Operating Segments
Note 16 - Operating Segments | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 16 The Company classifies its business interests into five 1 FY 2022 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 5,959,624 $ 23,442,371 $ 1,160,295 $ 2,854,031 $ - $ 33,416,321 Intersegment revenues (5,546 ) (1,068,196 ) - - - (1,073,742 ) Revenue from external customers 5,954,078 22,374,175 1,160,295 2,854,031 - 32,342,579 Segment profit (loss) 2,862,263 3,863,460 75,962 210,214 (7,318,214 ) (306,315 ) Total assets 1,160,343 10,023,716 625,850 4,770,161 10,300,691 26,880,761 Capital expenditures 1,832 797,178 3,688 6,363 138,629 947,690 Total depreciation & amortization $ 36,625 $ 627,071 $ 5,635 $ 466,878 $ 70,844 $ 1,207,053 FY 2021 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 3,549,055 $ 18,316,165 $ 896,793 $ 1,717,524 $ - $ 24,479,537 Intersegment revenues (3,668 ) (995,164 ) - - - (998,832 ) Revenue from external customers 3,545,387 17,321,001 896,793 1,717,524 - 23,480,705 Segment profit (loss) 846,039 1,422,491 (309,799 ) (636,474 ) (3,113,948 ) (1,791,691 ) Total assets 1,338,990 9,330,194 634,124 4,907,029 8,740,815 24,951,152 Capital expenditures 150 103,003 4,505 4,975 41,859 154,492 Total depreciation & amortization $ 42,579 $ 642,806 $ 14,150 $ 557,735 $ 78,912 $ 1,336,182 FY 2020 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 5,535,564 $ 22,570,723 $ 1,104,171 $ 3,698,463 $ - $ 32,908,921 Intersegment revenues (4,932 ) (1,054,193 ) - - - (1,059,125 ) Revenue from external customers 5,530,632 21,516,530 1,104,171 3,698,463 - 31,849,796 Segment profit (loss) 2,530,449 4,009,282 42,433 485,185 (5,665,017 ) 1,402,332 Total assets 1,221,975 11,796,822 1,006,320 6,026,394 7,765,877 27,817,388 Capital expenditures 24,422 840,459 28,443 3,997 86,620 983,941 Total depreciation & amortization $ 44,166 $ 615,162 $ 12,983 $ 726,615 $ 93,899 $ 1,492,825 |
Note 17 - Summarized Quarterly
Note 17 - Summarized Quarterly Data (Unaudited) | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | NOTE 17 Following is a summary of the quarterly results of operations for the fiscal years ended February 28, 2022 2021: Fiscal Quarter 2022 First Second Third Fourth Total Total revenue $ 7,593,711 $ 7,926,077 $ 8,507,634 $ 8,315,157 $ 32,342,579 Gross margin 1,283,601 1,871,945 1,811,680 1,092,597 6,059,823 Net (loss) income 579,805 196,933 (1,477,646 ) 359,211 (341,697 ) Basic earnings (loss) per share 0.09 0.03 (0.24 ) 0.06 (0.06 ) Diluted earnings (loss) per share $ 0.09 $ 0.03 $ (0.24 ) $ 0.06 (0.06 ) Fiscal Quarter 2021 First Second Third Fourth Total Total revenue $ 2,702,437 $ 5,327,402 $ 7,228,867 $ 8,221,999 $ 23,480,705 Gross margin (561,005 ) 940,589 1,413,765 1,267,473 3,060,822 Net (loss) income (3,667,397 ) 76,132 523,695 2,167,793 (899,777 ) Basic earnings (loss) per share (0.61 ) 0.01 0.09 0.36 (0.15 ) Diluted earnings (loss) per share $ (0.61 ) $ 0.01 $ 0.08 $ 0.35 (0.15 ) |
Note 18 - Costs Associated With
Note 18 - Costs Associated With Company-owned Store Closures | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | NOTE 18 Costs associated with Company-owned store closures at February 28 29, 2022, 2021 2020 2022 2021 2020 Loss on distribution of assets $ - $ 57,100 $ 15,400 Total $ - $ 57,100 $ 15,400 |
Note 19 - Contested Solicitatio
Note 19 - Contested Solicitation Of Proxies and Change In Control Payments | 12 Months Ended |
Feb. 28, 2022 | |
Notes to Financial Statements | |
Contested Solicitation Of Proxies and Change In Control Payments [Text Block] | NOTE 19 Contested Solicitation of Proxies During FY 2022, 2021 2022, 2021 2020. Employment Agreement Payments upon a Change in Control As described above in Note 12, As previously announced, Bryan J. Merryman agreed to voluntarily step down as President and Chief Executive Officer (“CEO”) of the Company upon the hiring of a new President and CEO for the Company. On May 5, 2022 May 9, 2022. In connection therewith, the Company and Mr. Merryman entered into a letter agreement dated November 8, 2021 ( November 3, 2021 ( February 26, 2019, November 3, 2021, November 3, 2021 ( As a result of this Letter Agreement the Company incurred the following costs during FY 2022: Accrued severance compensation $ 1,344,813 Accelerated restricted stock unit compensation expense: 525,000 Total $ 1,869,813 These costs are recognized as general and administrative expense in the Consolidated Statement of Operations. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Nature of Operations The accompanying consolidated financial statements include the accounts of Rocky Mountain Chocolate Factory, Inc., a Delaware corporation, its wholly-owned subsidiaries, Rocky Mountain Chocolate Factory, Inc. (a Colorado corporation), Aspen Leaf Yogurt, LLC (“ALY”), U-Swirl International, Inc. (“U-Swirl”), and U-Swirl, Inc. (“SWRL”) (collectively, the “Company” or "RMCF"). 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 2021 1,000 no 2022 not 2022 FY2021 no The following table summarizes the number of stores operating under the Rocky Mountain Chocolate Factory brand and its subsidiaries at February 28, 2022: Sold, Not Yet Open Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 6 154 160 International license stores 1 5 6 Cold Stone Creamery - co-branded 5 97 102 U-Swirl (Including all associated brands) Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores 1 55 56 Franchise stores - Domestic - co-branded 1 6 6 International license stores - 1 1 Total 14 323 337 |
Consolidation, Policy [Policy Text Block] | Consolidation Management accounts for the activities of the Company and its subsidiaries, and the accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three February 28, 2022. |
Receivable [Policy Text Block] | Accounts and Notes Receivable In the normal course of business, the Company extends credit to customers, primarily franchisees that satisfy pre-defined credit criteria. The Company believes that it has limited concentration of credit risk primarily because its receivables are secured by the assets of the franchisees to which the Company ordinarily extends credit, including, but not may February 28, 2022, February 28, 2021. May 2023 may 19. March 1, 2021 2020 |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or net realizable value, which is adjusted for obsolete, damaged and excess inventories to the lower of cost or net realizable value based on actual differences. The inventory value is determined through analysis of items held in inventory, and, if the recorded value is higher than the market value, the Company records an expense to reduce inventory to its actual market value. The process by which the Company performs its analysis is conducted on an item by item basis and takes into account, among other relevant factors, market value, sales history and future sales potential. Cost is determined using the first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment and Other Assets Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method based upon the estimated useful life of the asset, which range from five thirty-nine The Company reviews its long-lived assets through analysis of estimated fair value, including identifiable intangible assets, whenever events or changes indicate the carrying amount of such assets may not |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company provides for income taxes pursuant to the liability method. The liability method requires recognition of deferred income taxes based on temporary differences between financial reporting and income tax basis of assets and liabilities, using current enacted income tax rates and regulations. These differences will result in taxable income or deductions in future years when the reported amount of the asset or liability is recovered or settled, respectively. Considerable judgment is required in determining when these events may not. 382 14. |
Gift Card Breakage, Policy [Policy Text Block] | Gift Card Breakage The Company and its franchisees sell gift cards that are redeemable for product in stores. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their stores. A liability for unredeemed gift cards is included current liabilities in the balance sheets. There are no not may February 28, 2022 February 28, 2021, 2022 2021, |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill arose primarily from two first second The Company performs a goodwill impairment test on an annual basis or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not 2021, 19 three May 31, 2020 ( first 7 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets represent non-physical assets that create future economic value and are primarily composed of packaging design, store design, trademarks and non-competition agreements. Intangible assets are amortized on a straight line bases over a period ranging from 3 years to 20 years based on the expected future economic value of the intangible asset. Intangible assets are recorded at their cost. The Company performs intangible asset impairment testing on an annual basis or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not 7 Franchise Rights Franchise rights arose from the entry into agreements to acquire substantially all of the franchise rights of Yogurtini, CherryBerry, Fuzzy Peach, Let’s Yo! and Yogli Mogli. Franchise rights are amortized over a period of 20 years. |
Insurance and Self-Insurance Reserves [Policy Text Block] | Insurance and Self-Insurance Reserves The Company uses a combination of insurance and self-insurance plans to provide for the potential liabilities for workers’ compensation, general liability, property insurance, director and officers’ liability insurance, vehicle liability and employee health care benefits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other assumptions. While the Company believes that its assumptions are appropriate, the estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. |
Revenue [Policy Text Block] | Sales The Company has performance obligations to sell products to franchisees and other customers, and revenue is recognized at a point in time. Control is transferred when the order has been shipped to a customer, utilizing a third Rebates Rebates received from purveyors that supply products to the Company’s franchisees are included in franchise royalties and fees. Product rebates are recognized in the period in which they are earned. Rebates related to Company-owned locations are offset against operating costs. Shipping Fees Shipping fees charged to customers by the Company’s trucking department are reported as sales. Shipping costs incurred by the Company for inventory are reported as cost of sales or inventory. Franchise and Royalty Fees The Company recognizes franchise fees over the term of the associated franchise agreement, which is generally a period of 10 to 15 years. In addition to the initial franchise fee, the Company also recognizes a marketing and promotion fee of one no ten |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, and revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Vulnerability Due to Certain Concentrations As described above, In FY 2020, 2020, January 2021. 2020 2022 2022. February 28, 2022, February 28, 2021. 2022, not no |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation At February 28, 2022, one 2007 The Company recognized $1,073,115, $511,835, and $866,177 related to equity-based compensation expense during the years ended February 28 29, 2022, 2021 2020, During FY 2022, 2021, not no 2022 2021. five six 2022 2021 2020. February 28, 2022 The Company issued 9,000 unrestricted shares of stock to non-employee directors during the year ended February 28, 2022 no February 28, 2021 February 29, 2020. February 28 29, 2022, 2021 2020, During FY 2022 March 2025. 1, 12 19 February 29, 2020 February 29, 2020. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through stock options and restricted stock units. Following the expiration of all outstanding options during FY 2017, no The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not February 28, 2022, February 28, 2021, |
Advertising Cost [Policy Text Block] | Advertising and Promotional Expenses The Company expenses advertising costs as incurred. Total advertising expense for RMCF amounted to $210,103, $265,285, and $276,602 for the fiscal years ended February 28 29, 2022, 2021 2020, February 28 29, 2022, 2021 2020, |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, trade receivables, payables, notes payable and notes receivable. The fair value of all instruments approximates the carrying value, because of the relatively short maturity of these instruments. |
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 December 2019, 2019 12, 740 December 15, 2020 March 1, 2021 ( first 2022 not |
Related Party Transactions, Policy [Policy Text Block] | Related Party Transactions As described above, in FY 2020 2021, 2020 January 2021. February 28, 2022, 2021 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 |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Number of Stores [Table Text Block] | Sold, Not Yet Open Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 6 154 160 International license stores 1 5 6 Cold Stone Creamery - co-branded 5 97 102 U-Swirl (Including all associated brands) Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores 1 55 56 Franchise stores - Domestic - co-branded 1 6 6 International license stores - 1 1 Total 14 323 337 |
Note 2 - Supplemental Cash Fl_2
Note 2 - Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Cash paid (received) for: 2022 2021 2020 Interest $ 5,202 $ 76,803 $ 20,610 Income taxes 240,890 (21,021 ) 619,276 Non-cash Financing Activities Dividend payable $ - $ - $ 722,344 |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Twelve Months Ended February 29 or 28: 2022 2021 Contract liabilities at the beginning of the year: $ 1,119,646 $ 1,155,809 Revenue recognized (213,911 ) (226,720 ) Contract fees received 263,000 201,000 Amortized gain on the financed sale of equipment (21,927 ) (10,443 ) Contract liabilities at the end of the year: $ 1,146,808 $ 1,119,646 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 2023 $ 195,961 2024 172,991 2025 158,006 2026 145,884 2027 129,193 Thereafter 344,773 Total $ 1,146,808 |
Note 4 - Disaggregation of Re_2
Note 4 - Disaggregation of Revenue (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Revenues recognized over time: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 179,678 $ - $ - $ 34,233 $ 213,911 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 22,374,175 - - 22,374,175 Retail sales - - 1,160,295 1,693,025 2,853,320 Royalty and marketing fees 5,774,400 - - 1,126,773 6,901,173 Total $ 5,954,078 $ 22,374,175 $ 1,160,295 $ 2,854,031 $ 32,342,579 For the Year Ended February 28, 2021 Revenues recognized over time: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 178,042 $ - $ - $ 48,678 $ 226,720 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 17,321,001 - - 17,321,001 Retail sales - - 896,793 961,653 1,858,446 Royalty and marketing fees 3,367,345 - - 707,193 4,074,538 Total $ 3,545,387 $ 17,321,001 $ 896,793 $ 1,717,524 $ 23,480,705 For the Year Ended February 29, 2020 Revenues recognized over time: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 230,543 $ - $ - $ 94,439 $ 324,982 Franchising Manufacturing Retail U-Swirl Total Factory sales - 21,516,530 - - 21,516,530 Retail sales - - 1,104,171 2,098,267 3,202,438 Royalty and marketing fees 5,300,089 - - 1,505,757 6,805,846 Total $ 5,530,632 $ 21,516,530 $ 1,104,171 $ 3,698,463 $ 31,849,796 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2022 2021 Ingredients and supplies $ 2,753,068 $ 2,464,123 Finished candy 2,168,084 1,888,818 U-Swirl food and packaging 56,319 39,518 Reserve for slow moving inventory (623,269 ) (329,574 ) Total inventories $ 4,354,202 $ 4,062,885 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2022 2021 Land $ 513,618 $ 513,618 Building 5,148,854 4,827,807 Machinery and equipment 10,207,182 10,129,508 Furniture and fixtures 787,921 797,303 Leasehold improvements 985,914 985,407 Transportation equipment 479,701 429,789 18,123,190 17,683,432 Less accumulated depreciation (12,623,300 ) (12,531,417 ) Property and equipment, net $ 5,499,890 $ 5,152,015 |
Note 7 - Goodwill and Intangi_2
Note 7 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | 2022 2021 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 394,826 $ 240,409 $ 394,826 $ 221,504 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 - 20 556,339 357,071 556,339 333,715 Franchise rights 20 5,979,637 3,901,571 5,979,637 3,459,873 Total 7,482,605 5,050,854 7,482,605 4,566,895 Goodwill and intangible assets not subject to amortization Franchising segment Company stores goodwill $ 515,065 $ 515,065 Franchising goodwill 97,318 97,318 Manufacturing segment-goodwill 97,318 97,318 Trademark 20,000 20,000 Total 729,701 729,701 Total Goodwill and Intangible Assets $ 8,212,306 $ 5,050,854 $ 8,212,306 $ 4,566,895 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2023 409,393 2024 346,672 2025 294,427 2026 251,342 2027 215,382 Thereafter 914,535 Total $ 2,431,751 |
Note 8 - Impairment of Long-l_2
Note 8 - Impairment of Long-lived and Intangible Assets (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
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 57,100 Total $ 533,343 |
Note 10 - Stock Compensation _2
Note 10 - Stock Compensation Plans (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award [Table Text Block] | Original share authorization: 300,000 Prior plan shares authorized and incorporated in the 2007 Plan: 85,340 Additional shares authorized through 2007 Plan amendments: 600,000 Available for award: 985,340 Cancelled/forfeited: 234,490 Shares awarded as unrestricted shares, stock options or restricted stock units: (901,545 ) Shares available for award: 318,285 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Twelve Months Ended February 28 or 29: 2022 2021 2020 Outstanding non-vested restricted stock units at beginning of year: 209,450 265,555 25,002 Granted 26,058 - 280,000 Vested (127,130 ) (54,761 ) (38,835 ) Cancelled/forfeited (2,400 ) (1,344 ) (612 ) Outstanding non-vested restricted stock units as of February 28: 105,978 209,450 265,555 Weighted average grant date fair value $ 9.33 $ 9.40 $ 9.39 Weighted average remaining vesting period (in years) 2.26 3.68 4.56 |
Note 11 - Leasing Arrangements
Note 11 - Leasing Arrangements (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Lease, Cost [Table Text Block] | 2022 2021 2020 Minimum rentals $ 406,529 $ 428,421 $ 733,190 Less sublease rentals (60,254 ) (113,515 ) (318,000 ) Contingent rentals 22,800 27,803 21,600 $ 369,075 $ 342,708 $ 436,790 2022 2021 2020 270,767 340,731 342,297 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | FYE 23 $ 606,320 FYE 24 417,930 FYE 25 268,966 FYE 26 171,324 FYE 27 81,369 Thereafter 439,770 Total $ 1,985,679 Less: Imputed interest (171,526 ) Present value of lease liabilities: $ 1,814,153 Weighted average lease term 6.7 |
Note 14 - Income Taxes (Tables)
Note 14 - Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2022 2021 2020 Current Federal $ 226,985 $ (398,303 ) $ 306,000 State 51,904 21,074 85,157 Total Current 278,889 (377,229 ) 391,157 Deferred Federal (210,876 ) (441,734 ) (19,350 ) State (32,631 ) (72,951 ) (3,307 ) Total Deferred (243,507 ) (514,685 ) (22,657 ) Total $ 35,382 $ (891,914 ) $ 368,500 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2022 2021 2020 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 3.9 % 4.0 % 4.6 % Paycheck Protection Program debt forgiveness 0.0 % 18.0 % 0.0 % Work opportunity tax credits (2.0 )% 0.2 % (1.1 )% Equity compensation tax expense (13.8 )% (1.7 )% 1.4 % Compensation and benefits permanent differences (3.1 )% 0.0 % 0.0 % Other (0.2 )% 0.1 % 0.4 % Impact of CARES act (17.4 )% 8.2 % 0.0 % Effective tax rate (11.6 )% 49.8 % 26.3 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2022 2021 Deferred Tax Assets Allowance for doubtful accounts and notes $ 241,725 $ 357,573 Inventories 153,262 81,042 Accrued compensation 432,772 140,702 Loss provisions and deferred income 424,373 389,858 Self-insurance accrual 27,787 31,721 Amortization 357,254 396,195 Restructuring charges 98,693 98,693 Accumulated net losses 445,560 445,414 Valuation allowance (98,693 ) (98,693 ) Net deferred tax assets $ 2,082,733 $ 1,842,505 Deferred Tax Liabilities Depreciation and amortization (624,766 ) (653,798 ) Prepaid expenses (69,696 ) (43,943 ) Deferred Tax Liabilities (694,462 ) (697,741 ) Net deferred tax assets $ 1,388,271 $ 1,144,764 |
Summary of Valuation Allowance [Table Text Block] | 2022 2021 Valuation allowance at beginning of period $ 98,693 $ 98,693 Tax expense (benefits) realized by valuation allowance - - Tax benefits released from valuation allowance - - Impact of tax reform - - Valuation allowance at end of period $ 98,693 $ 98,693 |
Note 16 - Operating Segments (T
Note 16 - Operating Segments (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | FY 2022 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 5,959,624 $ 23,442,371 $ 1,160,295 $ 2,854,031 $ - $ 33,416,321 Intersegment revenues (5,546 ) (1,068,196 ) - - - (1,073,742 ) Revenue from external customers 5,954,078 22,374,175 1,160,295 2,854,031 - 32,342,579 Segment profit (loss) 2,862,263 3,863,460 75,962 210,214 (7,318,214 ) (306,315 ) Total assets 1,160,343 10,023,716 625,850 4,770,161 10,300,691 26,880,761 Capital expenditures 1,832 797,178 3,688 6,363 138,629 947,690 Total depreciation & amortization $ 36,625 $ 627,071 $ 5,635 $ 466,878 $ 70,844 $ 1,207,053 FY 2021 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 3,549,055 $ 18,316,165 $ 896,793 $ 1,717,524 $ - $ 24,479,537 Intersegment revenues (3,668 ) (995,164 ) - - - (998,832 ) Revenue from external customers 3,545,387 17,321,001 896,793 1,717,524 - 23,480,705 Segment profit (loss) 846,039 1,422,491 (309,799 ) (636,474 ) (3,113,948 ) (1,791,691 ) Total assets 1,338,990 9,330,194 634,124 4,907,029 8,740,815 24,951,152 Capital expenditures 150 103,003 4,505 4,975 41,859 154,492 Total depreciation & amortization $ 42,579 $ 642,806 $ 14,150 $ 557,735 $ 78,912 $ 1,336,182 FY 2020 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 5,535,564 $ 22,570,723 $ 1,104,171 $ 3,698,463 $ - $ 32,908,921 Intersegment revenues (4,932 ) (1,054,193 ) - - - (1,059,125 ) Revenue from external customers 5,530,632 21,516,530 1,104,171 3,698,463 - 31,849,796 Segment profit (loss) 2,530,449 4,009,282 42,433 485,185 (5,665,017 ) 1,402,332 Total assets 1,221,975 11,796,822 1,006,320 6,026,394 7,765,877 27,817,388 Capital expenditures 24,422 840,459 28,443 3,997 86,620 983,941 Total depreciation & amortization $ 44,166 $ 615,162 $ 12,983 $ 726,615 $ 93,899 $ 1,492,825 |
Note 17 - Summarized Quarterl_2
Note 17 - Summarized Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | 2022 First Second Third Fourth Total Total revenue $ 7,593,711 $ 7,926,077 $ 8,507,634 $ 8,315,157 $ 32,342,579 Gross margin 1,283,601 1,871,945 1,811,680 1,092,597 6,059,823 Net (loss) income 579,805 196,933 (1,477,646 ) 359,211 (341,697 ) Basic earnings (loss) per share 0.09 0.03 (0.24 ) 0.06 (0.06 ) Diluted earnings (loss) per share $ 0.09 $ 0.03 $ (0.24 ) $ 0.06 (0.06 ) 2021 First Second Third Fourth Total Total revenue $ 2,702,437 $ 5,327,402 $ 7,228,867 $ 8,221,999 $ 23,480,705 Gross margin (561,005 ) 940,589 1,413,765 1,267,473 3,060,822 Net (loss) income (3,667,397 ) 76,132 523,695 2,167,793 (899,777 ) Basic earnings (loss) per share (0.61 ) 0.01 0.09 0.36 (0.15 ) Diluted earnings (loss) per share $ (0.61 ) $ 0.01 $ 0.08 $ 0.35 (0.15 ) |
Note 18 - Costs Associated Wi_2
Note 18 - Costs Associated With Company-owned Store Closures (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | 2022 2021 2020 Loss on distribution of assets $ - $ 57,100 $ 15,400 Total $ - $ 57,100 $ 15,400 |
Note 19 - Contested Solicitat_2
Note 19 - Contested Solicitation Of Proxies and Change In Control Payments (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Notes Tables | |
Schedule of Deferred Compensation Arrangement with Individual [Table Text Block] | Accrued severance compensation $ 1,344,813 Accelerated restricted stock unit compensation expense: 525,000 Total $ 1,869,813 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | 13 Months Ended | |||||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Mar. 28, 2022 | Mar. 29, 2020 | Mar. 01, 2021 | Mar. 01, 2020 | |
Cash, Uninsured Amount | $ 7,100,000 | ||||||
Financing Receivable, before Allowance for Credit Loss, Total | 120,967 | $ 239,631 | |||||
Financing Receivable, Allowance for Credit Loss, Ending Balance | 112,287 | 112,287 | |||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 1,967,914 | 2,007,502 | $ 2,007,502 | $ 4,049,959 | |||
Gift Card, Liability, Current | 574,883 | 617,438 | $ 574,883 | ||||
Gift Card Liability, Breakage | 89,525 | 53,160 | |||||
Share-Based Payment Arrangement, Expense | 1,073,115 | 511,835 | $ 866,177 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 786,796 | ||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 3 months 18 days | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 66,667 | ||||||
Share-Based Payment Arrangement, Accelerated Cost | $ 525,000 | ||||||
Rocky Mountain Chocolate Factory [Member] | |||||||
Advertising Expense | 210,103 | 265,285 | 276,602 | ||||
USwirl Inc [Member] | |||||||
Advertising Expense | 140,146 | 95,215 | 203,004 | ||||
Immaculate Confections [Member] | CANADA | |||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,700,000 | $ 3,500,000 | $ 320,000 | ||||
Warrant [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 960,677 | 960,677 | |||||
Unvested Restricted Stock Units [Member] | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 147,422 | 217,103 | |||||
Share-Based Payment Arrangement, Nonemployee [Member] | |||||||
Share-Based Payment Arrangement, Expense | $ 46,610 | $ 0 | $ 130,172 | ||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture, Total (in shares) | 9,000 | 14,078 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-Based Payment Arrangement, Expense | $ 1,026,505 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 26,058 | 0 | 280,000 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 511,835 | $ 598,155 | |||||
Restricted Stock Units (RSUs) [Member] | Annual Vesting [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Per Quarter | 5.00% | ||||||
Restricted Stock Units (RSUs) [Member] | Share-Based Payment Arrangement, Nonemployee [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 26,058 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Grant Date Fair Value, Amount | $ 221,496 | ||||||
Unrestricted Shares of Stock [Member] | Chief Executive Officer [Member] | |||||||
Share-Based Payment Arrangement, Expense | $ 137,850 | ||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture, Total (in shares) | 15,000 | ||||||
Franchise Rights [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years | ||||||
Secured by Assets Financed [Member] | |||||||
Financing Receivable, before Allowance for Credit Loss, Total | $ 98,000 | ||||||
Minimum [Member] | |||||||
Financing Receivable Interest Rate | 4.50% | ||||||
Property, Plant and Equipment, Useful Life (Year) | 5 years | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | ||||||
Franchise Fee Rate | 1.00% | ||||||
Percent of Retail Sales | 2.50% | ||||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 5 years | ||||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | Annual Vesting [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Per Quarter | 17.00% | ||||||
Minimum [Member] | Franchise Rights [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | ||||||
Maximum [Member] | |||||||
Financing Receivable Interest Rate | 5.50% | ||||||
Property, Plant and Equipment, Useful Life (Year) | 39 years | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years | ||||||
Franchise Fee Rate | 10.00% | ||||||
Percent of Retail Sales | 6.00% | ||||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 6 years | ||||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | Annual Vesting [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Per Quarter | 20.00% | ||||||
Maximum [Member] | Franchise Rights [Member] | |||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 15 years | ||||||
Edible [Member] | |||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,700,000 | $ 3,500,000 | |||||
Percentage of Revenue | 5.30% | 15.10% |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | Feb. 28, 2022 |
Number of stores | 337 |
Sold Not Yet Open [Member] | |
Number of stores | 14 |
Open [Member] | |
Number of stores | 323 |
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 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 160 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 6 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 154 |
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 6 |
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 | 5 |
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 | 102 |
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 | 97 |
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 | 56 |
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 | 55 |
Franchise Stores - Domestic Stores - Co-Branded [Member] | USwirl Inc [Member] | |
Number of stores | 6 |
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 | 6 |
Note 2 - Supplemental Cash Fl_3
Note 2 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Interest | $ 5,202 | $ 76,803 | $ 20,610 |
Income taxes | 240,890 | (21,021) | 619,276 |
Dividend payable | $ 0 | $ 0 | $ 722,344 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts With Customers (Details Textual) | 12 Months Ended |
Feb. 28, 2022 | |
Customers Contracts, Term (Year) | 10 years |
Maximum [Member] | |
Customers Contracts, Term (Year) | 20 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 ($) | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Contract liabilities at the beginning of the year: | $ 1,119,646 | $ 1,155,809 |
Revenue recognized | (213,911) | (226,720) |
Contract fees received | 263,000 | 201,000 |
Amortized gain on the financed sale of equipment | (21,927) | (10,443) |
Contract liabilities at the end of the year: | $ 1,146,808 | $ 1,119,646 |
Note 3 - Revenue From Contrac_5
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation (Details) | Feb. 28, 2022USD ($) |
Revenue, remaining performance obligation, amount | $ 1,146,808 |
Note 3 - Revenue From Contrac_6
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation 2 (Details) | Feb. 28, 2022USD ($) |
Revenue, remaining performance obligation, amount | $ 1,146,808 |
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 | $ 195,961 |
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 | $ 172,991 |
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 | $ 158,006 |
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 | $ 145,884 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 129,193 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 344,773 |
Note 4 - Disaggregation of Re_3
Note 4 - Disaggregation of Revenue - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Revenues | $ 32,342,579 | $ 23,480,705 | $ 31,849,796 |
Total revenue | 32,342,579 | 23,480,705 | 31,849,796 |
Franchising [Member] | |||
Revenues | 5,954,078 | 3,545,387 | 5,530,632 |
Total revenue | 5,954,078 | 3,545,387 | 5,530,632 |
Manufacturing [Member] | |||
Revenues | 22,374,175 | 17,321,001 | 21,516,530 |
Total revenue | 22,374,175 | 17,321,001 | 21,516,530 |
Retail Segment [Member] | |||
Revenues | 1,160,295 | 896,793 | 1,104,171 |
Total revenue | 1,160,295 | 896,793 | 1,104,171 |
Transferred at Point in Time [Member] | |||
Revenues | 32,342,579 | 23,480,705 | 31,849,796 |
Total revenue | 32,342,579 | 23,480,705 | 31,849,796 |
Transferred at Point in Time [Member] | Franchising [Member] | |||
Revenues | 5,954,078 | 3,545,387 | 5,530,632 |
Total revenue | 5,954,078 | 3,545,387 | 5,530,632 |
Transferred at Point in Time [Member] | Manufacturing [Member] | |||
Revenues | 22,374,175 | 17,321,001 | 21,516,530 |
Total revenue | 22,374,175 | 17,321,001 | 21,516,530 |
Transferred at Point in Time [Member] | Retail Segment [Member] | |||
Revenues | 1,160,295 | 896,793 | 1,104,171 |
Total revenue | 1,160,295 | 896,793 | 1,104,171 |
Transferred at Point in Time [Member] | USwirl Inc [Member] | |||
Revenues | 2,854,031 | 1,717,524 | 3,698,463 |
Total revenue | 2,854,031 | 1,717,524 | 3,698,463 |
Franchise Fees [Member] | Transferred over Time [Member] | |||
Revenues | 213,911 | 226,720 | 324,982 |
Total revenue | 213,911 | 226,720 | 324,982 |
Franchise Fees [Member] | Transferred over Time [Member] | Franchising [Member] | |||
Revenues | 179,678 | 178,042 | 230,543 |
Total revenue | 179,678 | 178,042 | 230,543 |
Franchise Fees [Member] | Transferred over Time [Member] | Manufacturing [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Franchise Fees [Member] | Transferred over Time [Member] | Retail Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Franchise Fees [Member] | Transferred over Time [Member] | USwirl Inc [Member] | |||
Revenues | 34,233 | 48,678 | 94,439 |
Total revenue | 34,233 | 48,678 | 94,439 |
Franchise Fees [Member] | Transferred at Point in Time [Member] | Franchising [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Factory Sales [Member] | Transferred at Point in Time [Member] | |||
Revenues | 22,374,175 | 17,321,001 | 21,516,530 |
Total revenue | 22,374,175 | 17,321,001 | 21,516,530 |
Factory Sales [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | |||
Revenues | 22,374,175 | 17,321,001 | 21,516,530 |
Total revenue | 22,374,175 | 17,321,001 | 21,516,530 |
Factory Sales [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Factory Sales [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Retail [Member] | Transferred at Point in Time [Member] | |||
Revenues | 2,853,320 | 1,858,446 | 3,202,438 |
Total revenue | 2,853,320 | 1,858,446 | 3,202,438 |
Retail [Member] | Transferred at Point in Time [Member] | Franchising [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Retail [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Retail [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | |||
Revenues | 1,160,295 | 896,793 | 1,104,171 |
Total revenue | 1,160,295 | 896,793 | 1,104,171 |
Retail [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | |||
Revenues | 1,693,025 | 961,653 | 2,098,267 |
Total revenue | 1,693,025 | 961,653 | 2,098,267 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||
Revenues | 6,901,173 | 4,074,538 | 6,805,846 |
Total revenue | 6,901,173 | 4,074,538 | 6,805,846 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Franchising [Member] | |||
Revenues | 5,774,400 | 3,367,345 | 5,300,089 |
Total revenue | 5,774,400 | 3,367,345 | 5,300,089 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | |||
Revenues | 1,126,773 | 707,193 | 1,505,757 |
Total revenue | $ 1,126,773 | $ 707,193 | $ 1,505,757 |
Note 5 - Inventories - Inventor
Note 5 - Inventories - Inventories (Details) - USD ($) | Feb. 28, 2022 | Feb. 28, 2021 |
Ingredients and supplies | $ 2,753,068 | $ 2,464,123 |
Finished candy | 2,168,084 | 1,888,818 |
U-Swirl food and packaging | 56,319 | 39,518 |
Reserve for slow moving inventory | (623,269) | (329,574) |
Total inventories | $ 4,354,202 | $ 4,062,885 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Depreciation, Total | $ 723,094 | $ 765,764 | $ 786,648 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | Feb. 28, 2022 | Feb. 28, 2021 |
Property, plant and equipment, gross | $ 18,123,190 | $ 17,683,432 |
Less accumulated depreciation | (12,623,300) | (12,531,417) |
Property and equipment, net | 5,499,890 | 5,152,015 |
Land [Member] | ||
Property, plant and equipment, gross | 513,618 | 513,618 |
Building [Member] | ||
Property, plant and equipment, gross | 5,148,854 | 4,827,807 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 10,207,182 | 10,129,508 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 787,921 | 797,303 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 985,914 | 985,407 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 479,701 | $ 429,789 |
Note 7 - Goodwill and Intangi_3
Note 7 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Amortization of Intangible Assets | $ 483,959 | $ 570,418 | $ 706,177 |
Note 7 - Goodwill and Intangi_4
Note 7 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Intangible assets subject to amortization, gross carrying value | $ 7,482,605 | $ 7,482,605 |
Intangible assets subject to amortization, accumulated amortization | 5,050,854 | 4,566,895 |
Intangible assets not subject to amortization, gross carrying value | 729,701 | 729,701 |
Total Goodwill and Intangible Assets | 8,212,306 | 8,212,306 |
Total Goodwill and Intangible Assets | 5,050,854 | 4,566,895 |
Company Stores Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 515,065 | 515,065 |
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 |
Minimum [Member] | ||
Amortization Period (Year) | 3 years | |
Maximum [Member] | ||
Amortization Period (Year) | 20 years | |
Store Design [Member] | ||
Amortization Period (Year) | 10 years | |
Intangible assets subject to amortization, gross carrying value | $ 394,826 | 394,826 |
Intangible assets subject to amortization, accumulated amortization | 240,409 | 221,504 |
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 | 556,339 |
Intangible assets subject to amortization, accumulated amortization | $ 357,071 | 333,715 |
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 | $ 3,901,571 | $ 3,459,873 |
Franchise Rights [Member] | Minimum [Member] | ||
Amortization Period (Year) | 10 years | |
Franchise Rights [Member] | Maximum [Member] | ||
Amortization Period (Year) | 15 years |
Note 7 - Goodwill and Intangi_5
Note 7 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Feb. 28, 2022USD ($) |
2023 | $ 409,393 |
2024 | 346,672 |
2025 | 294,427 |
2026 | 251,342 |
2027 | 215,382 |
Thereafter | 914,535 |
Total | $ 2,431,751 |
Note 8 - Impairment of Long-l_3
Note 8 - Impairment of Long-lived and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||
May 31, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Feb. 28, 2020 | |
Asset Impairment Charges, Total | $ 533,343 | ||||
Restructuring Costs and Asset Impairment Charges, Total | $ 0 | $ 532,602 | $ 15,400 | $ 15,400 | |
General and Administrative Expense [Member] | COVID-19 Pandemic [Member] | |||||
Asset Impairment Charges, Total | $ 533,000 |
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) | 12 Months Ended |
Feb. 28, 2021USD ($) | |
Company store goodwill impairment | $ 317,243 |
Trademark intangible asset impairment | 159,000 |
Company-owned store impairment of long-lived assets | 57,100 |
Total | $ 533,343 |
Note 9 - Notes Payable and Re_2
Note 9 - Notes Payable and Revolving Credit Line (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Proceeds from Notes Payable, Total | $ 0 | $ 1,537,200 | $ 0 |
Line of Credit [Member] | Wells Fargo Bank [Member] | |||
Proceeds from Notes Payable, Total | 1,500,000 | ||
Forgiveness of Indebtedness | $ 1,500,000 | ||
Long-term Line of Credit, Total | 5,000,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 5,000,000 | ||
Line of Credit [Member] | Wells Fargo Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.37% | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.42% |
Note 10 - Stock Compensation _3
Note 10 - Stock Compensation Plans (Details Textual) - shares shares in Thousands | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 0 | 0 | 0 |
Note 10 - Stock Compensation _4
Note 10 - Stock Compensation Plans - Summarizes Stock Awards (Details) | 12 Months Ended |
Feb. 28, 2022shares | |
Additional shares authorized through 2007 Plan amendments: (in shares) | 600,000 |
2007 Equity Incentive Plan [Member | |
Original share authorization: (in shares) | 300,000 |
Prior plan shares authorized and incorporated in the 2007 Plan: (in shares) | 85,340 |
Available for award: (in shares) | 985,340 |
Cancelled/forfeited: (in shares) | 234,490 |
Shares awarded as unrestricted shares, stock options or restricted stock units: (in shares) | (901,545) |
Shares available for award: (in shares) | 318,285 |
Note 10 - Stock Compensation _5
Note 10 - Stock Compensation Plans - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Outstanding non-vested restricted stock units at beginning of year: (in shares) | 209,450 | 265,555 | 25,002 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 26,058 | 0 | 280,000 |
Vested (in shares) | (127,130) | (54,761) | (38,835) |
Cancelled/forfeited (in shares) | (2,400) | (1,344) | (612) |
Outstanding non-vested restricted stock units as of February 28: (in shares) | 105,978 | 209,450 | 265,555 |
Weighted average grant date fair value (in dollars per share) | $ 9.33 | $ 9.40 | $ 9.39 |
Weighted average remaining vesting period (Year) | 2 years 3 months 3 days | 3 years 8 months 4 days | 4 years 6 months 21 days |
Note 11 - Leasing Arrangement_2
Note 11 - Leasing Arrangements (Details Textual) - USD ($) | Feb. 28, 2022 | Mar. 01, 2019 |
Operating Lease, Liability, Total | $ 1,814,153 | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.10% | |
Lessee, Operating Lease, Liability, to be Paid, Total | $ 1,985,679 | |
Accounting Standards Update 2016-02 [Member] | ||
Operating Lease, Liability, Total | $ 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 11 - Leasing Arrangement_3
Note 11 - Leasing Arrangements - Lease Expense (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Retail operating lease expense | $ 270,767 | $ 340,731 | $ 342,297 |
Retail Leases [Member] | |||
Minimum rentals | 406,529 | 428,421 | 733,190 |
Less sublease rentals | (60,254) | (113,515) | (318,000) |
Contingent rentals | 22,800 | 27,803 | 21,600 |
Retail operating lease expense | $ 369,075 | $ 342,708 | $ 436,790 |
Note 11 - Leasing Arrangement_4
Note 11 - Leasing Arrangements - Maturities of Lease Liabilities for Operating Leases (Details) | Feb. 28, 2022USD ($) |
FYE 23 | $ 606,320 |
FYE 24 | 417,930 |
FYE 25 | 268,966 |
FYE 26 | 171,324 |
FYE 27 | 81,369 |
Thereafter | 439,770 |
Total | 1,985,679 |
Less: Imputed interest | (171,526) |
Operating Lease, Liability, Total | $ 1,814,153 |
Weighted average lease term (Year) | 6 years 8 months 12 days |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) | 12 Months Ended |
Feb. 28, 2022USD ($) | |
Executive Salary, Bonus | $ 18,000 |
Share-based Payment Arrangement, Potential Severance Payments and Benefits From Termination | 859,000 |
Share-based Payment Arrangement, Potential Accelerated Cost from Termination | 118,125 |
Contractual Obligation, Total | $ 45,000 |
Minimum [Member] | |
Purchase Contracts, Term (Month) | 6 months |
Maximum [Member] | |
Purchase Contracts, Term (Month) | 18 months |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity (Details Textual) - USD ($) | Oct. 02, 2021 | Mar. 13, 2020 | Dec. 20, 2019 |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.12 | ||
Preferred Stock, Redemption Price Per Share (in dollars per share) | $ 0.01 | ||
Payments for Repurchase of Redeemable Preferred Stock | $ 61,276 | ||
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) | 6 months | ||
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 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | |
Operating Loss Carryforwards | $ 317,000 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 148,000 | |||
Gain (Loss) on Extinguishment of Debt, Total | 0 | $ 1,548,576 | $ 1,500,000 | $ 0 |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 445,560 | $ 445,414 | ||
U-Swirl Segment [Member] | ||||
Operating Loss Carryforwards | 1,811,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 445,000 |
Note 14 - Income Taxes - Income
Note 14 - Income Taxes - Income Tax Expense (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Federal | $ 226,985 | $ (398,303) | $ 306,000 |
State | 51,904 | 21,074 | 85,157 |
Total Current | 278,889 | (377,229) | 391,157 |
Federal | (210,876) | (441,734) | (19,350) |
State | (32,631) | (72,951) | (3,307) |
Total Deferred | (243,507) | (514,685) | (22,657) |
Total | $ 35,382 | $ (891,914) | $ 368,500 |
Note 14 - Income Taxes - Reconc
Note 14 - Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate and the Effective Rate (Details) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 3.90% | 4.00% | 4.60% |
Paycheck Protection Program debt forgiveness | 0.00% | 18.00% | 0.00% |
Work opportunity tax credits | 2.00% | (0.20%) | 1.10% |
Equity compensation tax expense | (13.80%) | (1.70%) | 1.40% |
Compensation and benefits permanent differences | (3.10%) | 0.00% | 0.00% |
Other | (0.20%) | 0.10% | 0.40% |
Impact of CARES act | (17.40%) | 8.20% | 0.00% |
Effective tax rate | (11.60%) | 49.80% | 26.30% |
Note 14 - Income Taxes - Compon
Note 14 - Income Taxes - Components of Deferred Income Taxes (Details) - USD ($) | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 |
Allowance for doubtful accounts and notes | $ 241,725 | $ 357,573 | |
Inventories | 153,262 | 81,042 | |
Accrued compensation | 432,772 | 140,702 | |
Loss provisions and deferred income | 424,373 | 389,858 | |
Self-insurance accrual | 27,787 | 31,721 | |
Amortization | 357,254 | 396,195 | |
Restructuring charges | 98,693 | 98,693 | |
Accumulated net losses | 445,560 | 445,414 | |
Valuation allowance | (98,693) | (98,693) | $ (98,693) |
Net deferred tax assets | 2,082,733 | 1,842,505 | |
Depreciation and amortization | (624,766) | (653,798) | |
Prepaid expenses | (69,696) | (43,943) | |
Deferred Tax Liabilities | (694,462) | (697,741) | |
Net deferred tax assets | $ 1,388,271 | $ 1,144,764 |
Note 14 - Income Taxes - Summar
Note 14 - Income Taxes - Summary of Deferred Income Tax Valuation Allowances (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Valuation allowance at beginning of period | $ 98,693 | $ 98,693 |
Tax expense (benefits) realized by valuation allowance | 0 | 0 |
Tax benefits released from valuation allowance | 0 | 0 |
Impact of tax reform | 0 | 0 |
Valuation allowance at end of period | $ 98,693 | $ 98,693 |
Note 15 - Employee Benefit Pl_2
Note 15 - Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Defined Contribution Plan Employers Matching Contribution Vesting Period (Year) | 3 years | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 25.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 1.50% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 67,000 | $ 62,000 | $ 61,000 |
Note 16 - Operating Segments (D
Note 16 - Operating Segments (Details Textual) | 12 Months Ended |
Feb. 28, 2022 | |
Number of Reportable Segments | 5 |
Note 16 - Operating Segments -
Note 16 - Operating Segments - Segment Information (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Revenues | $ 32,342,579 | $ 23,480,705 | $ 31,849,796 |
Segment profit (loss) | (306,315) | (1,791,691) | 1,402,332 |
Total assets | 26,880,761 | 24,951,152 | 27,817,388 |
Capital expenditures | 947,690 | 154,492 | 983,941 |
Total depreciation and amortization | 1,207,053 | 1,336,182 | 1,492,825 |
Franchising [Member] | |||
Revenues | 5,954,078 | 3,545,387 | 5,530,632 |
Segment profit (loss) | 2,862,263 | 846,039 | 2,530,449 |
Total assets | 1,160,343 | 1,338,990 | 1,221,975 |
Capital expenditures | 1,832 | 150 | 24,422 |
Total depreciation and amortization | 36,625 | 42,579 | 44,166 |
Manufacturing [Member] | |||
Revenues | 22,374,175 | 17,321,001 | 21,516,530 |
Segment profit (loss) | 3,863,460 | 1,422,491 | 4,009,282 |
Total assets | 10,023,716 | 9,330,194 | 11,796,822 |
Capital expenditures | 797,178 | 103,003 | 840,459 |
Total depreciation and amortization | 627,071 | 642,806 | 615,162 |
Retail Segment [Member] | |||
Revenues | 1,160,295 | 896,793 | 1,104,171 |
Segment profit (loss) | 75,962 | (309,799) | 42,433 |
Total assets | 625,850 | 634,124 | 1,006,320 |
Capital expenditures | 3,688 | 4,505 | 28,443 |
Total depreciation and amortization | 5,635 | 14,150 | 12,983 |
U-Swirl Segment [Member] | |||
Revenues | 2,854,031 | 1,717,524 | 3,698,463 |
Segment profit (loss) | 210,214 | (636,474) | 485,185 |
Total assets | 4,770,161 | 4,907,029 | 6,026,394 |
Capital expenditures | 6,363 | 4,975 | 3,997 |
Total depreciation and amortization | 466,878 | 557,735 | 726,615 |
Other Segments [Member] | |||
Revenues | 0 | 0 | 0 |
Segment profit (loss) | (7,318,214) | (3,113,948) | (5,665,017) |
Total assets | 10,300,691 | 8,740,815 | 7,765,877 |
Capital expenditures | 138,629 | 41,859 | 86,620 |
Total depreciation and amortization | 70,844 | 78,912 | 93,899 |
Operating Segments [Member] | |||
Revenues | 33,416,321 | 24,479,537 | 32,908,921 |
Operating Segments [Member] | Franchising [Member] | |||
Revenues | 5,959,624 | 3,549,055 | 5,535,564 |
Operating Segments [Member] | Manufacturing [Member] | |||
Revenues | 23,442,371 | 18,316,165 | 22,570,723 |
Operating Segments [Member] | Retail Segment [Member] | |||
Revenues | 1,160,295 | 896,793 | 1,104,171 |
Operating Segments [Member] | U-Swirl Segment [Member] | |||
Revenues | 2,854,031 | 1,717,524 | 3,698,463 |
Operating Segments [Member] | Other Segments [Member] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations [Member] | |||
Revenues | (1,073,742) | (998,832) | (1,059,125) |
Intersegment Eliminations [Member] | Franchising [Member] | |||
Revenues | (5,546) | (3,668) | (4,932) |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||
Revenues | (1,068,196) | (995,164) | (1,054,193) |
Intersegment Eliminations [Member] | Retail Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Other Segments [Member] | |||
Revenues | $ 0 | $ 0 | $ 0 |
Note 17 - Summarized Quarterl_3
Note 17 - Summarized Quarterly Data (Unaudited) - Quarterly Results of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Feb. 28, 2021 | Nov. 30, 2020 | Aug. 31, 2020 | May 31, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Total revenue | $ 8,315,157 | $ 8,507,634 | $ 7,926,077 | $ 7,593,711 | $ 8,221,999 | $ 7,228,867 | $ 5,327,402 | $ 2,702,437 | $ 32,342,579 | $ 23,480,705 | |
Gross margin | 1,092,597 | 1,811,680 | 1,871,945 | 1,283,601 | 1,267,473 | 1,413,765 | 940,589 | (561,005) | 6,059,823 | 3,060,822 | |
Net (loss) income | $ 359,211 | $ (1,477,646) | $ 196,933 | $ 579,805 | $ 2,167,793 | $ 523,695 | $ 76,132 | $ (3,667,397) | $ (341,697) | $ (899,777) | $ 1,033,832 |
Basic earnings (loss) per share (in dollars per share) | $ 0.06 | $ (0.24) | $ 0.03 | $ 0.09 | $ 0.36 | $ 0.09 | $ 0.01 | $ (0.61) | $ (0.06) | $ (0.15) | $ 0.17 |
Diluted earnings (loss) per share (in dollars per share) | $ 0.06 | $ (0.24) | $ 0.03 | $ 0.09 | $ 0.35 | $ 0.08 | $ 0.01 | $ (0.61) | $ (0.06) | $ (0.15) | $ 0.17 |
Note 18 - Costs Associated Wi_3
Note 18 - Costs Associated With Company-owned Store Closures - Costs Associated With Closures (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | |
Costs associated with Company-owned store closures | $ 0 | $ 57,100 | $ 15,400 |
Loss on Distribution of Assets [Member] | |||
Costs associated with Company-owned store closures | $ 0 | $ 57,100 | $ 15,400 |
Note 19 - Contested Solicitat_3
Note 19 - Contested Solicitation Of Proxies and Change In Control Payments (Details Textual) - USD ($) $ in Thousands | Nov. 03, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 66,667 | |||
Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member] | Letter Agreement [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 66,667 | |||
Contested Solicitation of Proxies [Member] | ||||
Litigation Settlement, Expense | $ 1,700 | $ 0 | $ 1,500 |
Note 19 - Contested Solicitat_4
Note 19 - Contested Solicitation Of Proxies and Change In Control Payments - Letter Agreement Incurred (Details) | 12 Months Ended |
Feb. 28, 2022USD ($) | |
Accelerated restricted stock unit compensation expense: | $ 525,000 |
Letter Agreement [Member] | President and Chief Executive Officer [Member] | |
Accrued severance compensation | 1,344,813 |
Total | 1,869,813 |
Letter Agreement [Member] | President and Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | |
Accelerated restricted stock unit compensation expense: | $ 525,000 |