Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Nov. 30, 2022 | Jan. 10, 2023 | |
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 | Q3 | |
Document Fiscal Year Focus | 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Nov. 30, 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, $0.001 par value per share | |
Trading Symbol | RMCF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,250,297 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Revenues | ||||
Total revenue | $ 9,475,381 | $ 8,507,634 | $ 24,827,638 | $ 24,027,422 |
Costs and Expenses | ||||
Cost of sales | 5,869,566 | 5,200,749 | 14,672,015 | 13,819,428 |
Sales and marketing | 607,249 | 377,231 | 1,617,135 | 1,195,823 |
General and administrative | 2,111,741 | 3,865,912 | 7,810,601 | 6,575,037 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $160,006, $155,170, $480,479 and $464,767, respectively, included in cost of sales | 127,887 | 143,612 | 382,843 | 440,205 |
Total costs and expenses | 9,690,422 | 10,466,342 | 27,417,032 | 25,082,401 |
Loss from Operations | (215,041) | (1,958,708) | (2,589,394) | (1,054,979) |
Other Income | ||||
Interest Expense | (4,172) | 0 | (4,172) | 0 |
Interest Income | 7,234 | 2,195 | 13,732 | 9,348 |
Gain on insurance recovery | 0 | 0 | 0 | 167,123 |
Other income, net | 3,062 | 2,195 | 9,560 | 176,471 |
Loss Before Income Taxes | (211,979) | (1,956,513) | (2,579,834) | (878,508) |
Income Tax Provision | 0 | (478,867) | 1,388,272 | (177,600) |
Consolidated Net Loss | $ (211,979) | $ (1,477,646) | $ (3,968,106) | $ (700,908) |
Basic Loss per Common Share (in dollars per share) | $ (0.03) | $ (0.24) | $ (0.64) | $ (0.11) |
Diluted Loss per Common Share (in dollars per share) | $ (0.03) | $ (0.24) | $ (0.64) | $ (0.11) |
Weighted Average Common Shares Outstanding - Basic (in shares) | 6,227,002 | 6,141,507 | 6,219,362 | 6,127,884 |
Dilutive Effect of Employee Stock Awards (in shares) | 0 | 0 | 0 | 0 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 6,227,002 | 6,141,507 | 6,219,362 | 6,127,884 |
Product [Member] | ||||
Revenues | ||||
Total revenue | $ 7,963,568 | $ 7,012,429 | $ 19,518,678 | $ 18,786,654 |
Franchise and Royalty Fees [Member] | ||||
Revenues | ||||
Total revenue | 1,511,813 | 1,495,205 | 5,308,960 | 5,240,768 |
Franchise [Member] | ||||
Costs and Expenses | ||||
Costs | 551,549 | 458,518 | 1,569,777 | 1,747,348 |
Retail [Member] | ||||
Costs and Expenses | ||||
Costs | $ 422,430 | $ 420,320 | $ 1,364,661 | $ 1,304,560 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Amortization expense included in cost of goods sold | $ 160,006 | $ 155,170 | $ 480,479 | $ 464,767 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Nov. 30, 2022 | Feb. 28, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 3,216,132 | $ 7,587,374 |
Accounts receivable, less allowance for doubtful accounts of $837,568 and $870,735, respectively | 3,227,617 | 1,967,914 |
Notes receivable, current portion, less current portion of the valuation allowance of $34,704 and $47,228, respectively | 21,133 | 8,680 |
Refundable income taxes | 432,749 | 736,528 |
Inventories | 6,195,929 | 4,354,202 |
Other | 451,929 | 343,268 |
Total current assets | 13,545,489 | 14,997,966 |
Property and Equipment, Net | 5,751,858 | 5,499,890 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $47,247 and $65,059, respectively | 95,686 | 0 |
Goodwill, net | 729,701 | 729,701 |
Franchise rights, net | 1,800,769 | 2,078,066 |
Intangible assets, net | 323,937 | 353,685 |
Deferred income taxes, net | 0 | 1,388,271 |
Lease right of use asset | 2,547,035 | 1,771,034 |
Other | 48,115 | 62,148 |
Total other assets | 5,545,243 | 6,382,905 |
Total Assets | 24,842,590 | 26,880,761 |
Current Liabilities | ||
Accounts payable | 3,501,983 | 1,579,917 |
Accrued salaries and wages | 777,378 | 2,125,430 |
Gift card liabilities | 546,475 | 574,883 |
Other accrued expenses | 339,877 | 239,644 |
Contract liabilities | 198,357 | 195,961 |
Lease liability | 780,256 | 595,897 |
Total current liabilities | 6,144,326 | 5,311,732 |
Lease Liability, Less Current Portion | 1,801,795 | 1,218,256 |
Contract Liabilities, Less Current Portion | 993,119 | 950,847 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock, $.001 par value per share; 250,000 authorized; -0- shares issued and outstanding | 0 | 0 |
Common stock, $.001 par value, 46,000,000 shares authorized, 6,238,776 shares and 6,186,356 shares issued and outstanding, respectively | 6,239 | 6,186 |
Additional paid-in capital | 9,278,407 | 8,806,930 |
Retained earnings | 6,618,704 | 10,586,810 |
Total stockholders' equity | 15,903,350 | 19,399,926 |
Total Liabilities and Stockholders' Equity | $ 24,842,590 | $ 26,880,761 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Nov. 30, 2022 | Feb. 28, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 837,568 | $ 870,735 |
Notes receivable, current portion of the valuation allowance | 34,704 | 47,228 |
Financing Receivable, Allowance for Credit Loss, Noncurrent | $ 47,247 | $ 65,059 |
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) | 6,238,776 | 6,186,356 |
Common stock, shares outstanding (in shares) | 6,238,776 | 6,186,356 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Cash Flows From Operating Activities | ||
Net loss | $ (3,968,106) | $ (700,908) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 863,322 | 904,972 |
Provision for obsolete inventory | 166,255 | 103,422 |
Provision for loss on accounts and notes receivable | (119,000) | 0 |
Gain on sale or disposal of property and equipment | (14,403) | (153,129) |
Expense recorded for stock compensation | 471,530 | 709,210 |
Deferred income taxes | 1,388,271 | (426,041) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,171,146) | (985,887) |
Refundable income taxes | 303,779 | 1,168 |
Inventories | (2,091,099) | (936,483) |
Contract liabilities | 4,500 | 23,048 |
Other current assets | (109,860) | (105,851) |
Accounts payable | 1,976,869 | 1,079,671 |
Accrued liabilities | (1,284,330) | 1,343,856 |
Net cash (used in) provided by operating activities | (3,583,418) | 857,048 |
Addition to notes receivable | (58,635) | 0 |
Proceeds received on notes receivable | 49,254 | 98,918 |
Proceeds from sale or disposal of assets | 22,289 | 1,751 |
Proceeds from insurance recovery | 0 | 206,336 |
Purchases of property and equipment | (810,732) | (704,462) |
Decrease (Increase) in other assets | 10,000 | (10,000) |
Net cash used in investing activities | (787,824) | (407,457) |
Cash Flows from Financing Activities | ||
Dividends paid and redemption of outstanding preferred stock purchase rights | 0 | (61,276) |
Net cash used in financing activities | 0 | (61,276) |
Net (Decrease) Increase in Cash and Cash Equivalents | (4,371,242) | 388,315 |
Cash and Cash Equivalents, Beginning of Period | 7,587,374 | 5,633,279 |
Cash and Cash Equivalents, End of Period | $ 3,216,132 | $ 6,021,594 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Feb. 28, 2021 | 6,074,293 | |||
Balance at Feb. 28, 2021 | $ 6,074 | $ 7,971,712 | $ 10,989,783 | $ 18,967,569 |
Consolidated net (loss) income | (700,908) | (700,908) | ||
Issuance of common stock, vesting of restricted stock units and other (in shares) | 102,404 | |||
Issuance of common stock, vesting of restricted stock units and other | $ 103 | (103) | 0 | |
Equity compensation, restricted stock units | 709,210 | 709,210 | ||
Redemption of outstanding preferred stock purchase rights | (61,276) | (61,276) | ||
Balance (in shares) at Nov. 30, 2021 | 6,176,697 | |||
Balance at Nov. 30, 2021 | $ 6,177 | 8,680,819 | 10,227,599 | 18,914,595 |
Balance (in shares) at Aug. 31, 2021 | 6,124,288 | |||
Balance at Aug. 31, 2021 | $ 6,124 | 8,241,286 | 11,766,521 | 20,013,931 |
Consolidated net (loss) income | (1,477,646) | (1,477,646) | ||
Issuance of common stock, vesting of restricted stock units and other (in shares) | 52,409 | |||
Issuance of common stock, vesting of restricted stock units and other | $ 53 | (53) | 0 | |
Equity compensation, restricted stock units | 439,586 | 439,586 | ||
Redemption of outstanding preferred stock purchase rights | (61,276) | (61,276) | ||
Balance (in shares) at Nov. 30, 2021 | 6,176,697 | |||
Balance at Nov. 30, 2021 | $ 6,177 | 8,680,819 | 10,227,599 | 18,914,595 |
Balance (in shares) at Feb. 28, 2022 | 6,186,356 | |||
Balance at Feb. 28, 2022 | $ 6,186 | 8,806,930 | 10,586,810 | 19,399,926 |
Consolidated net (loss) income | (3,968,106) | (3,968,106) | ||
Issuance of common stock, vesting of restricted stock units and other (in shares) | 52,420 | |||
Issuance of common stock, vesting of restricted stock units and other | $ 53 | (53) | 0 | |
Equity compensation, restricted stock units | 471,530 | 471,530 | ||
Balance (in shares) at Nov. 30, 2022 | 6,238,776 | |||
Balance at Nov. 30, 2022 | $ 6,239 | 9,278,407 | 6,618,704 | 15,903,350 |
Balance (in shares) at Aug. 31, 2022 | 6,223,234 | |||
Balance at Aug. 31, 2022 | $ 6,223 | 9,087,530 | 6,830,683 | 15,924,436 |
Consolidated net (loss) income | (211,979) | (211,979) | ||
Issuance of common stock, vesting of restricted stock units and other (in shares) | 15,542 | |||
Issuance of common stock, vesting of restricted stock units and other | $ 16 | (16) | 0 | |
Equity compensation, restricted stock units | 190,893 | 190,893 | ||
Balance (in shares) at Nov. 30, 2022 | 6,238,776 | |||
Balance at Nov. 30, 2022 | $ 6,239 | $ 9,278,407 | $ 6,618,704 | $ 15,903,350 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | 1 Nature of Operations The accompanying consolidated financial statements include the accounts of Rocky Mountain Chocolate Factory, Inc., a Delaware corporation, its 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”). 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 The following table summarizes the number of stores operating under the Rocky Mountain Chocolate Factory brand and frozen yogurt cafés as of November 30, 2022: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 1 1 Franchise stores - Domestic stores and kiosks 7 158 165 International license stores 1 4 5 Cold Stone Creamery - co-branded 4 101 105 U-Swirl (Including all associated brands) Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores 1 50 51 Franchise stores - Domestic - co-branded - 7 7 International license stores - 1 1 Total 13 325 338 Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and Securities and Exchange Commission (the “SEC”) regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations, and cash flows for the interim periods presented. The results of operations for the nine November 30, 2022, not These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10 February 28, 2022, No. 1 10 June 28, 2022. not Subsequent Events On December 14, 2022 ( one Pursuant to the Settlement Agreement, the Company and ABV-Radoff agreed to a “Standstill Period” commencing on the Effective Date and ending on the date that is forty-five 45 2025 no no The Company also agreed that the Board shall take such action to appoint a female director candidate with at least five three 5605 not 2023 “2023 2023 2024 not not Furthermore, pursuant to the Settlement Agreement, the Parties agreed to mutual releases and discharges of all claims by AB Value, Radoff, Bradley and Berger against the Company and by the Company against AB Value, Radoff, Bradley and Berger, in each case up to the date of the Agreement, except in connection with the claims, counterclaims, causes of action, defenses, or other rights or obligations relating to the demand for books and records pursuant to Section 220 November 9, 2022. September 23, 2021, No. 2021 0819 September 28, 2022, No. 2021 0819 one million seventy-five thousand On December 16, 2022, Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no 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 |
Note 2 - Supplemental Cash Flow
Note 2 - Supplemental Cash Flow Information | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 2 Nine Months Ended November 30, Cash paid (received) for: 2022 2021 Interest $ 25,000 $ 5,202 Income taxes $ (303,777 ) $ 247,273 |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 9 Months Ended |
Nov. 30, 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 November 30, 2022, November 30, 2021: Nine Months Ended November 30: 2022 2021 Contract liabilities at the beginning of the year: $ 1,146,808 $ 1,119,646 Revenue recognized (180,000 ) (164,952 ) Contract fees received 184,500 188,000 Deferred (amortized) gain on the financed sale of equipment 40,168 (21,928 ) Contract liabilities at the end of the period: $ 1,191,476 $ 1,120,766 At November 30, 2022, not FYE 23 $ 51,242 FYE 24 194,622 FYE 25 179,637 FYE 26 167,515 FYE 27 150,824 Thereafter 447,636 Total $ 1,191,476 Gift Cards The Company’s franchisees sell gift cards, which do not 606 606, 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, are recognized at the time the sales occur. |
Note 4 - Disaggregation of Reve
Note 4 - Disaggregation of Revenue | 9 Months Ended |
Nov. 30, 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: Three Months Ended November 30, 2022 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 48,965 $ - $ - $ 9,488 $ 58,453 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 7,284,940 - - 7,284,940 Retail sales - - 301,594 377,034 678,628 Royalty and marketing fees 1,189,594 - - 263,766 1,453,360 Total $ 1,238,559 $ 7,284,940 $ 301,594 $ 650,288 $ 9,475,381 Three Months Ended November 30, 2021 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 53,944 $ - $ - $ 7,755 $ 61,699 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 6,376,367 - - 6,376,367 Retail sales - - 275,530 360,532 636,062 Royalty and marketing fees 1,196,192 - - 237,314 1,433,506 Total $ 1,250,136 $ 6,376,367 $ 275,530 $ 605,601 $ 8,507,634 Nine Months Ended November 30, 2022 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 147,720 $ - $ - $ 32,280 $ 180,000 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 17,250,750 - - 17,250,750 Retail sales - - 815,197 1,452,731 2,267,928 Royalty and marketing fees 4,070,980 - - 1,057,980 5,128,960 Total $ 4,218,700 $ 17,250,750 $ 815,197 $ 2,542,991 $ 24,827,638 Nine Months Ended November 30, 2021 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 136,907 $ - $ - $ 28,045 $ 164,952 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 16,578,535 - - 16,578,535 Retail sales - - 829,542 1,378,577 2,208,119 Royalty and marketing fees 4,147,951 - - 927,865 5,075,816 Total $ 4,284,858 $ 16,578,535 $ 829,542 $ 2,334,487 $ 24,027,422 |
Note 5 - Inventories
Note 5 - Inventories | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5 Inventories consist of the following: November 30, 2022 February 28, 2022 Ingredients and supplies $ 3,600,464 $ 2,753,068 Finished candy 3,302,200 2,168,084 U-Swirl food and packaging 44,950 56,319 Reserve for slow moving inventory (751,685 ) (623,269 ) Total inventories $ 6,195,929 $ 4,354,202 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment, Net | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 Property and equipment consist of the following: November 30, 2022 February 28, 2022 Land $ 513,618 $ 513,618 Building 5,150,355 5,148,854 Machinery and equipment 10,647,391 10,207,182 Furniture and fixtures 766,354 787,921 Leasehold improvements 950,242 985,914 Transportation equipment 445,489 479,701 18,473,449 18,123,190 Less accumulated depreciation (12,721,591 ) (12,623,300 ) Property and equipment, net $ 5,751,858 $ 5,499,890 Depreciation expense related to property and equipment totaled $185,545 and $556,277 during the three nine November 30, 2022, three nine November 30, 2021, |
Note 7 - Goodwill and Intangibl
Note 7 - Goodwill and Intangible Assets | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 Goodwill and intangible assets consist of the following: November 30, 2022 February 28, 2022 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 394,826 $ 254,588 $ 394,826 $ 240,409 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 - 20 556,339 372,640 556,339 357,071 Franchise rights 20 5,979,637 4,178,868 5,979,637 3,901,571 Total 7,482,605 5,357,899 7,482,605 5,050,854 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 $ 5,357,899 $ 8,212,306 $ 5,050,854 Amortization expense related to intangible assets totaled $102,348 and $307,045 during the three nine November 30, 2022, three nine November 30, 2021, At November 30, 2022, FYE 23 $ 102,348 FYE 24 346,672 FYE 25 294,427 FYE 26 251,342 FYE 27 215,382 Thereafter 914,535 Total $ 2,124,706 |
Note 8 - Line of Credit
Note 8 - Line of Credit | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 8 Revolving Credit Line The Company has a $5.0 million credit line (subject to certain borrowing base limitations) for general corporate and working capital purposes, of which $5.0 million was available for borrowing and no amount was outstanding as of November 30, 2022. November 30, 2022). November 30, 2022, |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 9 Warrants In consideration of an Exclusive Supplier Operating Agreement, dated December 20, 2019 ( December 20, 2019, December 20, 2019 ( five six fifth November 30, 2022, no November 1, 2022, no The Company determined that the grant date fair value of the warrants was de minimis and did not Stock-Based Compensation Under the Company’s 2007 “2007 may The following table summarizes restricted stock unit activity during the nine November 30, 2022, 2021: Nine Months Ended November 30, 2022 2021 Outstanding non-vested restricted stock units as of February 28: 105,978 209,450 Granted 94,892 26,058 Vested (52,421 ) (117,470 ) Cancelled/forfeited (1,232 ) (2,400 ) Outstanding non-vested restricted stock units as of November 30: 147,217 115,638 Weighted average grant date fair value $ 5.28 $ 9.23 Weighted average remaining vesting period (in years) 2.05 2.40 The following table summarizes stock option activity during the nine November 30, 2022, 2021: Nine Months Ended November 30, 2022 2021 Outstanding stock options as of February 28: - - Granted 36,144 - Exercised - - Cancelled/forfeited - - Outstanding stock options as of November 30: 36,144 - Weighted average exercise price 6.49 n/a Weighted average remaining contractual term (in years) 9.51 n/a The Company did not three nine November 30, 2022, three November 30, 2021, nine November 30, 2021. three nine November 30, 2022, three November 30, 2021, nine November 30, 2021. During the nine November 30, 2022, one third February 28, 2023, February 28, 2025. February 2025 12.5% 200% The Company recognized $190,893 and $471,530 of stock-based compensation expense during the three nine November 30, 2022, three nine November 30, 2021, Except as noted above, restricted stock units generally vest in equal annual installments over a period of five six nine November 30, 2022, 2021, November 30, 2022, |
Note 10 - Earnings Per Share
Note 10 - Earnings Per Share | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 10 Basic earnings per share is calculated using the weighted-average number of common shares outstanding. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through the settlement of restricted stock units. Restricted stock units become dilutive within the period granted and remain dilutive until the units vest and are issued as common stock. The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not nine November 30, 2022, nine November 30, 2021, |
Note 11 - Leasing Arrangements
Note 11 - Leasing Arrangements | 9 Months Ended |
Nov. 30, 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 the 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 Company also leases trucking equipment and warehouse space in support of its manufacturing operations. The expense associated with trucking and warehouse leases is included in the cost of sales on the consolidated statements of operations. The Company accounts for payments related to lease liabilities on a straight-line basis over the lease term. During the nine November 30, 2022, 2021, The lease liability reflects the present value of the Company’s estimated future minimum lease payments over the life of its leases. This includes known escalations and renewal option periods reasonably assured of being exercised. Typically, renewal options are considered reasonably assured of being exercised if the sales performance of the location remains strong. Therefore, the Right of Use Asset and Lease Liability include an assumption on renewal options that have not not not not November 30, 2022. As of November 30, 2022, FYE 23 $ 216,848 FYE 24 760,952 FYE 25 611,988 FYE 26 514,346 FYE 27 242,558 Thereafter 462,120 Total $ 2,808,812 Less: imputed interest (226,761 ) Present value of lease liabilities: $ 2,582,051 Weighted average lease term 5.6 During the nine November 30, 2022, |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 Contested Solicitation of Proxies During the three nine November 30, 2022, 2022 three nine November 30, 2022, three nine November 30, 2021. three February 28, 2023 ( fourth 2022 December 14, 2023 Employment Agreement Payments upon a Change in Control We have entered into employment agreements with certain of our executives which contain, among other things, "change in control" severance provisions. The employment agreement of Mr. Dudley generally provides 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 the agreement for Mr. Dudley, 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 October 6, 2021. may In connection with Mr. Dudley’s retirement, Mr. Dudley and the Company entered into a Separation Agreement and General Release (the “Separation Agreement”), dated September 30, 2022 ( $70,000; December 31, 2022, As a result of this Separation Agreement the Company incurred the following costs during the nine November 30, 2022: Accrued severance compensation: $ 928,938 Accelerated restricted stock unit compensation expense: 95,156 Consulting Services: 37,500 Total $ 1,061,594 Mr. Sarlls’ employment agreement provides for the following upon “change in control”: If Mr. Sarlls’ employment is involuntarily terminated without cause or if he resigns for good reason on or within 2 15 15 1.409A 3 5 Mr. Arroyo’s employment agreement provides for the following upon “change in control”: If Mr. Arroyo’s employment is involuntarily terminated without cause or if he resigns for good reason on or within 2 9 9 1.409A 3 5 Purchase Contracts The Company frequently enters into purchase contracts of between six eighteen may may may November 30, 2022, not |
Note 13 - Operating Segments
Note 13 - Operating Segments | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 13 The Company classifies its business interests into five reportable segments: Franchising, Manufacturing, Retail Stores, U-Swirl operations, and Other. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 1 10 February 28, 2022, No. 1 10 June 28, 2022. Three Months Ended November 30, 2022 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,239,938 $ 7,629,146 $ 301,594 $ 650,288 $ - $ 9,820,966 Intersegment revenues (1,379 ) (344,206 ) - - - (345,585 ) Revenue from external customers 1,238,559 7,284,940 301,594 650,288 - 9,475,381 Segment profit (loss) 337,225 1,534,725 45,035 (15,822 ) (2,113,142 ) (211,979 ) Total assets 1,010,798 13,639,903 624,705 4,138,398 5,428,786 24,842,590 Capital expenditures 15,925 150,735 4,860 - 52,334 223,854 Total depreciation & amortization $ 8,432 $ 161,515 $ 1,407 $ 98,895 $ 17,643 $ 287,892 Three Months Ended November 30, 2021 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,251,381 $ 6,685,416 $ 275,530 $ 605,601 $ - $ 8,817,928 Intersegment revenues (1,245 ) (309,049 ) - - - (310,294 ) Revenue from external customers 1,250,136 6,376,367 275,530 605,601 - 8,507,634 Segment profit (loss) 578,357 1,339,108 16,706 (56,790 ) (3,833,894 ) (1,956,513 ) Total assets 1,590,914 10,988,056 651,372 4,824,466 9,243,856 27,298,664 Capital expenditures 650 59,095 2,620 12,751 58,485 133,601 Total depreciation & amortization $ 9,060 $ 156,696 $ 1,397 $ 116,648 $ 14,981 $ 298,782 Nine Months Ended November 30, 2022 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,222,694 $ 18,143,863 $ 815,197 $ 2,542,991 $ - $ 25,724,745 Intersegment revenues (3,994 ) (893,113 ) - - - (897,107 ) Revenue from external customers 4,218,700 17,250,750 815,197 2,542,991 - 24,827,638 Segment profit (loss) 1,756,239 3,062,876 27,947 352,922 (7,779,818 ) (2,579,834 ) Total assets 1,010,798 13,639,903 624,705 4,138,398 5,428,786 24,842,590 Capital expenditures 17,106 685,420 5,435 32,547 70,224 810,732 Total depreciation & amortization $ 25,871 $ 484,980 $ 4,231 $ 295,908 $ 52,332 $ 863,322 Nine Months Ended November 30, 2021 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,289,116 $ 17,434,641 $ 829,542 $ 2,334,487 $ - $ 24,887,786 Intersegment revenues (4,258 ) (856,106 ) - - - (860,364 ) Revenue from external customers 4,284,858 16,578,535 829,542 2,334,487 - 24,027,422 Segment profit (loss) 1,866,829 3,254,726 61,029 262,202 (6,323,294 ) (878,508 ) Total assets 1,590,914 10,988,056 651,372 4,824,466 9,243,856 27,298,664 Capital expenditures 1,832 593,043 3,688 14,150 91,749 704,462 Total depreciation & amortization $ 27,732 $ 469,562 $ 4,194 $ 350,047 $ 53,437 $ 904,972 |
Note 14 - Income Taxes
Note 14 - Income Taxes | 9 Months Ended |
Nov. 30, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 14 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. 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. A valuation allowance to reduce the carrying amount of deferred income tax assets is established when it is more likely than not not not . During the three nine November 30, 2022, 2022 no not November 30, 2022, |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations and Basis of Presentation (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Number of Stores [Table Text Block] | Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 1 1 Franchise stores - Domestic stores and kiosks 7 158 165 International license stores 1 4 5 Cold Stone Creamery - co-branded 4 101 105 U-Swirl (Including all associated brands) Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores 1 50 51 Franchise stores - Domestic - co-branded - 7 7 International license stores - 1 1 Total 13 325 338 |
Note 2 - Supplemental Cash Fl_2
Note 2 - Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Nine Months Ended November 30, Cash paid (received) for: 2022 2021 Interest $ 25,000 $ 5,202 Income taxes $ (303,777 ) $ 247,273 |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Nine Months Ended November 30: 2022 2021 Contract liabilities at the beginning of the year: $ 1,146,808 $ 1,119,646 Revenue recognized (180,000 ) (164,952 ) Contract fees received 184,500 188,000 Deferred (amortized) gain on the financed sale of equipment 40,168 (21,928 ) Contract liabilities at the end of the period: $ 1,191,476 $ 1,120,766 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | FYE 23 $ 51,242 FYE 24 194,622 FYE 25 179,637 FYE 26 167,515 FYE 27 150,824 Thereafter 447,636 Total $ 1,191,476 |
Note 4 - Disaggregation of Re_2
Note 4 - Disaggregation of Revenue (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended November 30, 2022 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 48,965 $ - $ - $ 9,488 $ 58,453 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 7,284,940 - - 7,284,940 Retail sales - - 301,594 377,034 678,628 Royalty and marketing fees 1,189,594 - - 263,766 1,453,360 Total $ 1,238,559 $ 7,284,940 $ 301,594 $ 650,288 $ 9,475,381 Three Months Ended November 30, 2021 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 53,944 $ - $ - $ 7,755 $ 61,699 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 6,376,367 - - 6,376,367 Retail sales - - 275,530 360,532 636,062 Royalty and marketing fees 1,196,192 - - 237,314 1,433,506 Total $ 1,250,136 $ 6,376,367 $ 275,530 $ 605,601 $ 8,507,634 Nine Months Ended November 30, 2022 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 147,720 $ - $ - $ 32,280 $ 180,000 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 17,250,750 - - 17,250,750 Retail sales - - 815,197 1,452,731 2,267,928 Royalty and marketing fees 4,070,980 - - 1,057,980 5,128,960 Total $ 4,218,700 $ 17,250,750 $ 815,197 $ 2,542,991 $ 24,827,638 Nine Months Ended November 30, 2021 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 136,907 $ - $ - $ 28,045 $ 164,952 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 16,578,535 - - 16,578,535 Retail sales - - 829,542 1,378,577 2,208,119 Royalty and marketing fees 4,147,951 - - 927,865 5,075,816 Total $ 4,284,858 $ 16,578,535 $ 829,542 $ 2,334,487 $ 24,027,422 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | November 30, 2022 February 28, 2022 Ingredients and supplies $ 3,600,464 $ 2,753,068 Finished candy 3,302,200 2,168,084 U-Swirl food and packaging 44,950 56,319 Reserve for slow moving inventory (751,685 ) (623,269 ) Total inventories $ 6,195,929 $ 4,354,202 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment, Net (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | November 30, 2022 February 28, 2022 Land $ 513,618 $ 513,618 Building 5,150,355 5,148,854 Machinery and equipment 10,647,391 10,207,182 Furniture and fixtures 766,354 787,921 Leasehold improvements 950,242 985,914 Transportation equipment 445,489 479,701 18,473,449 18,123,190 Less accumulated depreciation (12,721,591 ) (12,623,300 ) Property and equipment, net $ 5,751,858 $ 5,499,890 |
Note 7 - Goodwill and Intangi_2
Note 7 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | November 30, 2022 February 28, 2022 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 394,826 $ 254,588 $ 394,826 $ 240,409 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 - 20 556,339 372,640 556,339 357,071 Franchise rights 20 5,979,637 4,178,868 5,979,637 3,901,571 Total 7,482,605 5,357,899 7,482,605 5,050,854 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 $ 5,357,899 $ 8,212,306 $ 5,050,854 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | FYE 23 $ 102,348 FYE 24 346,672 FYE 25 294,427 FYE 26 251,342 FYE 27 215,382 Thereafter 914,535 Total $ 2,124,706 |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Nine Months Ended November 30, 2022 2021 Outstanding non-vested restricted stock units as of February 28: 105,978 209,450 Granted 94,892 26,058 Vested (52,421 ) (117,470 ) Cancelled/forfeited (1,232 ) (2,400 ) Outstanding non-vested restricted stock units as of November 30: 147,217 115,638 Weighted average grant date fair value $ 5.28 $ 9.23 Weighted average remaining vesting period (in years) 2.05 2.40 |
Share-Based Payment Arrangement, Option, Activity [Table Text Block] | Nine Months Ended November 30, 2022 2021 Outstanding stock options as of February 28: - - Granted 36,144 - Exercised - - Cancelled/forfeited - - Outstanding stock options as of November 30: 36,144 - Weighted average exercise price 6.49 n/a Weighted average remaining contractual term (in years) 9.51 n/a |
Note 11 - Leasing Arrangements
Note 11 - Leasing Arrangements (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | FYE 23 $ 216,848 FYE 24 760,952 FYE 25 611,988 FYE 26 514,346 FYE 27 242,558 Thereafter 462,120 Total $ 2,808,812 Less: imputed interest (226,761 ) Present value of lease liabilities: $ 2,582,051 Weighted average lease term 5.6 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Schedule of Deferred Compensation Arrangement with Individual [Table Text Block] | Accrued severance compensation: $ 928,938 Accelerated restricted stock unit compensation expense: 95,156 Consulting Services: 37,500 Total $ 1,061,594 |
Note 13 - Operating Segments (T
Note 13 - Operating Segments (Tables) | 9 Months Ended |
Nov. 30, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended November 30, 2022 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,239,938 $ 7,629,146 $ 301,594 $ 650,288 $ - $ 9,820,966 Intersegment revenues (1,379 ) (344,206 ) - - - (345,585 ) Revenue from external customers 1,238,559 7,284,940 301,594 650,288 - 9,475,381 Segment profit (loss) 337,225 1,534,725 45,035 (15,822 ) (2,113,142 ) (211,979 ) Total assets 1,010,798 13,639,903 624,705 4,138,398 5,428,786 24,842,590 Capital expenditures 15,925 150,735 4,860 - 52,334 223,854 Total depreciation & amortization $ 8,432 $ 161,515 $ 1,407 $ 98,895 $ 17,643 $ 287,892 Three Months Ended November 30, 2021 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,251,381 $ 6,685,416 $ 275,530 $ 605,601 $ - $ 8,817,928 Intersegment revenues (1,245 ) (309,049 ) - - - (310,294 ) Revenue from external customers 1,250,136 6,376,367 275,530 605,601 - 8,507,634 Segment profit (loss) 578,357 1,339,108 16,706 (56,790 ) (3,833,894 ) (1,956,513 ) Total assets 1,590,914 10,988,056 651,372 4,824,466 9,243,856 27,298,664 Capital expenditures 650 59,095 2,620 12,751 58,485 133,601 Total depreciation & amortization $ 9,060 $ 156,696 $ 1,397 $ 116,648 $ 14,981 $ 298,782 Nine Months Ended November 30, 2022 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,222,694 $ 18,143,863 $ 815,197 $ 2,542,991 $ - $ 25,724,745 Intersegment revenues (3,994 ) (893,113 ) - - - (897,107 ) Revenue from external customers 4,218,700 17,250,750 815,197 2,542,991 - 24,827,638 Segment profit (loss) 1,756,239 3,062,876 27,947 352,922 (7,779,818 ) (2,579,834 ) Total assets 1,010,798 13,639,903 624,705 4,138,398 5,428,786 24,842,590 Capital expenditures 17,106 685,420 5,435 32,547 70,224 810,732 Total depreciation & amortization $ 25,871 $ 484,980 $ 4,231 $ 295,908 $ 52,332 $ 863,322 Nine Months Ended November 30, 2021 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,289,116 $ 17,434,641 $ 829,542 $ 2,334,487 $ - $ 24,887,786 Intersegment revenues (4,258 ) (856,106 ) - - - (860,364 ) Revenue from external customers 4,284,858 16,578,535 829,542 2,334,487 - 24,027,422 Segment profit (loss) 1,866,829 3,254,726 61,029 262,202 (6,323,294 ) (878,508 ) Total assets 1,590,914 10,988,056 651,372 4,824,466 9,243,856 27,298,664 Capital expenditures 1,832 593,043 3,688 14,150 91,749 704,462 Total depreciation & amortization $ 27,732 $ 469,562 $ 4,194 $ 350,047 $ 53,437 $ 904,972 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) - Subsequent Event [Member] - Settlement Agreement [Member] | Dec. 14, 2022 USD ($) |
ABV-Radoff [Member] | |
Reimbursement of Fees and Expenses | $ 1,075,000 |
Maximum [Member] | Rocky Mountain Chocolate Factory [Member] | AB Value [Member] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10% |
Maximum [Member] | Rocky Mountain Chocolate Factory [Member] | Radoff [Member] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 12.50% |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | Nov. 30, 2022 |
Number of stores | 338 |
Sold Not Yet Open [Member] | |
Number of stores | 13 |
Open [Member] | |
Number of stores | 325 |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Company Owned Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Company Owned Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 165 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 7 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 158 |
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 5 |
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 | 4 |
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 | 105 |
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 4 |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 101 |
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 | 51 |
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 | 50 |
Franchise Stores - Domestic Stores - Co-Branded [Member] | USwirl Inc [Member] | |
Number of stores | 7 |
Franchise Stores - Domestic Stores - Co-Branded [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | |
Number of stores | 0 |
Franchise Stores - Domestic Stores - Co-Branded [Member] | Open [Member] | USwirl Inc [Member] | |
Number of stores | 7 |
Note 2 - Supplemental Cash Fl_3
Note 2 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Interest | $ 25,000 | $ 5,202 |
Income taxes | $ (303,777) | $ 247,273 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts With Customers (Details Textual) | 9 Months Ended |
Nov. 30, 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 ($) | 9 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Contract liabilities at the beginning of the year: | $ 1,146,808 | $ 1,119,646 |
Revenue recognized | (180,000) | (164,952) |
Contract fees received | 184,500 | 188,000 |
Deferred (amortized) gain on the financed sale of equipment | 40,168 | (21,928) |
Contract liabilities at the end of the period: | $ 1,191,476 | $ 1,120,766 |
Note 3 - Revenue From Contrac_5
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation (Details) | Nov. 30, 2022 USD ($) |
Revenue, remaining performance obligation, amount | $ 1,191,476 |
Note 3 - Revenue From Contrac_6
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation 2 (Details) | Nov. 30, 2022 USD ($) |
Revenue, remaining performance obligation, amount | $ 1,191,476 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-01 | |
Revenue, remaining performance obligation, period (Year) | 3 months |
Revenue, remaining performance obligation, amount | $ 51,242 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 194,622 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 179,637 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 167,515 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 150,824 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-04-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 447,636 |
Note 4 - Disaggregation of Re_3
Note 4 - Disaggregation of Revenue - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | |
Revenues | $ 9,475,381 | $ 8,507,634 | $ 24,827,638 | $ 24,027,422 | |
Transferred at Point in Time [Member] | |||||
Revenues | 9,475,381 | 8,507,634 | 24,827,638 | 24,027,422 | |
Factory Sales [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 7,284,940 | 6,376,367 | 17,250,750 | 16,578,535 | |
Retail [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 678,628 | 636,062 | 2,267,928 | 2,208,119 | |
Franchise Fees [Member] | Transferred over Time [Member] | |||||
Revenues | 58,453 | 61,699 | 180,000 | $ 164,952 | |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 1,453,360 | 1,433,506 | 5,128,960 | 5,075,816 | |
Franchising [Member] | |||||
Revenues | 1,238,559 | 1,250,136 | 4,218,700 | 4,284,858 | |
Franchising [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 1,238,559 | 1,250,136 | 4,218,700 | 4,284,858 | |
Franchising [Member] | Factory Sales [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Franchising [Member] | Retail [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Franchising [Member] | Franchise Fees [Member] | Transferred over Time [Member] | |||||
Revenues | 48,965 | 53,944 | 147,720 | 136,907 | |
Franchising [Member] | Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 1,189,594 | 1,196,192 | 4,070,980 | 4,147,951 | |
Manufacturing [Member] | |||||
Revenues | 7,284,940 | 6,376,367 | 17,250,750 | 16,578,535 | |
Manufacturing [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 7,284,940 | 6,376,367 | 17,250,750 | 16,578,535 | |
Manufacturing [Member] | Factory Sales [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 7,284,940 | 6,376,367 | 17,250,750 | 16,578,535 | |
Manufacturing [Member] | Retail [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Manufacturing [Member] | Franchise Fees [Member] | Transferred over Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Manufacturing [Member] | Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Retail Segment [Member] | |||||
Revenues | 301,594 | 275,530 | 815,197 | 829,542 | |
Retail Segment [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 301,594 | 275,530 | 815,197 | 829,542 | |
Retail Segment [Member] | Factory Sales [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Retail Segment [Member] | Retail [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 301,594 | 275,530 | 815,197 | 829,542 | |
Retail Segment [Member] | Franchise Fees [Member] | Transferred over Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Retail Segment [Member] | Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
USwirl Inc [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 650,288 | 605,601 | 2,542,991 | 2,334,487 | |
USwirl Inc [Member] | Factory Sales [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
USwirl Inc [Member] | Retail [Member] | Transferred at Point in Time [Member] | |||||
Revenues | 377,034 | 360,532 | 1,452,731 | 1,378,577 | |
USwirl Inc [Member] | Franchise Fees [Member] | Transferred over Time [Member] | |||||
Revenues | 9,488 | 7,755 | 32,280 | $ 28,045 | |
USwirl Inc [Member] | Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||||
Revenues | $ 263,766 | $ 237,314 | $ 1,057,980 | $ 927,865 |
Note 5 - Inventories - Inventor
Note 5 - Inventories - Inventories (Details) - USD ($) | Nov. 30, 2022 | Feb. 28, 2022 |
Ingredients and supplies | $ 3,600,464 | $ 2,753,068 |
Finished candy | 3,302,200 | 2,168,084 |
U-Swirl food and packaging | 44,950 | 56,319 |
Reserve for slow moving inventory | (751,685) | (623,269) |
Total inventories | $ 6,195,929 | $ 4,354,202 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Depreciation, Total | $ 185,545 | $ 177,909 | $ 556,277 | $ 541,887 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | Nov. 30, 2022 | Feb. 28, 2022 |
Property, plant and equipment, gross | $ 18,473,449 | $ 18,123,190 |
Less accumulated depreciation | (12,721,591) | (12,623,300) |
Property and equipment, net | 5,751,858 | 5,499,890 |
Land [Member] | ||
Property, plant and equipment, gross | 513,618 | 513,618 |
Building [Member] | ||
Property, plant and equipment, gross | 5,150,355 | 5,148,854 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 10,647,391 | 10,207,182 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 766,354 | 787,921 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 950,242 | 985,914 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 445,489 | $ 479,701 |
Note 7 - Goodwill and Intangi_3
Note 7 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Amortization of Intangible Assets | $ 102,348 | $ 120,873 | $ 307,045 | $ 363,085 |
Note 7 - Goodwill and Intangi_4
Note 7 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2022 | Feb. 28, 2022 | |
Intangible assets subject to amortization, gross carrying value | $ 7,482,605 | $ 7,482,605 |
Intangible assets subject to amortization, accumulated amortization | 5,357,899 | 5,050,854 |
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 | 5,357,899 | 5,050,854 |
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 |
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 | 254,588 | 240,409 |
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 | $ 372,640 | 357,071 |
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 | $ 4,178,868 | $ 3,901,571 |
Note 7 - Goodwill and Intangi_5
Note 7 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Nov. 30, 2022 USD ($) |
FYE 23 | $ 102,348 |
FYE 24 | 346,672 |
FYE 25 | 294,427 |
FYE 26 | 251,342 |
FYE 27 | 215,382 |
Thereafter | 914,535 |
Total | $ 2,124,706 |
Note 8 - Line of Credit (Detail
Note 8 - Line of Credit (Details Textual) $ in Thousands | 9 Months Ended |
Nov. 30, 2022 USD ($) | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 |
Wells Fargo Bank [Member] | Line of Credit [Member] | |
Long-term Line of Credit, Total | 5,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 5,000 |
Wells Fargo Bank [Member] | Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 2.37% |
Debt Instrument, Interest Rate, Stated Percentage | 6.19% |
Note 9 - Stockholders' Equity_2
Note 9 - Stockholders' Equity (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 20, 2019 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 36,144 | ||||
Restricted Stock Units and Stock Options [Member] | |||||
Share-Based Payment Arrangement, Expense | $ 190,893 | $ 621,997 | $ 471,530 | $ 845,011 | |
Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 5.28 | $ 9.23 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 94,892 | 26,058 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 52,421 | 117,470 | |||
Chief Executive Officer [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 36,144 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Aggregate Grant Date Fair Value | $ 77,267 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 2.14 | ||||
Chief Executive Officer [Member] | Performance Shares [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Aggregate Grant Date Fair Value | $ 298,582 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 6.29 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 47,446 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Shares, Targert Number, Percentage | 12.50% | ||||
Chief Executive Officer [Member] | Performance Shares [Member] | Vesting on Last Day of Current Fiscal Year Ending [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||||
Chief Executive Officer [Member] | Performance Shares [Member] | Vesting on Last Day of Each Quarter Thereafter [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 33.33% | ||||
Share-Based Payment Arrangement, Nonemployee [Member] | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture, Total (in shares) | 0 | 26,058 | 0 | 9,000 | |
Share-Based Payment Arrangement, Expense | $ 0 | $ 55,373 | $ 110,747 | $ 101,983 | |
Share-Based Payment Arrangement, Employee [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 52,421 | 117,470 | |||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 665,709 | $ 665,709 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 18 days | ||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 6 years | ||||
Maximum [Member] | Chief Executive Officer [Member] | Performance Shares [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 94,892 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Shares, Targert Number, Percentage | 200% | ||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 5 years | ||||
Minimum [Member] | Chief Executive Officer [Member] | Performance Shares [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Shares, Targert Number, Percentage | 0% | ||||
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 9 - Stockholders' Equity -
Note 9 - Stockholders' Equity - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 9 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Outstanding non-vested restricted stock units as of February 28: (in shares) | 105,978 | 209,450 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 94,892 | 26,058 |
Vested (in shares) | (52,421) | (117,470) |
Cancelled/forfeited (in shares) | (1,232) | (2,400) |
Outstanding non-vested restricted stock units as of November 30: (in shares) | 147,217 | 115,638 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 5.28 | $ 9.23 |
Weighted average remaining vesting period (Year) | 2 years 18 days | 2 years 4 months 24 days |
Note 9 - Stockholders' Equity_3
Note 9 - Stockholders' Equity - Stock Option Activity (Details) | 9 Months Ended |
Nov. 30, 2022 $ / shares shares | |
Outstanding stock options as of February 28: (in shares) | 0 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 36,144 |
Exercised (in shares) | 0 |
Cancelled/forfeited (in shares) | 0 |
Outstanding stock options as of November 30: (in shares) | 36,144 |
Weighted average exercise price (in dollars per share) | $ / shares | $ 6.49 |
Weighted average remaining contractual term (in years) (Year) | 9 years 6 months 3 days |
Note 10 - Earnings Per Share (D
Note 10 - Earnings Per Share (Details Textual) - shares | 9 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 130,367 | 160,951 |
Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 960,677 |
Note 11 - Leasing Arrangement_2
Note 11 - Leasing Arrangements (Details Textual) - USD ($) | 9 Months Ended | |
Nov. 30, 2022 | Nov. 30, 2021 | |
Operating Lease, Expense | $ 636,202 | $ 582,344 |
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | |
Lessee, Operating Lease, Liability, to be Paid, Total | $ 2,808,812 | |
Leases for Equipment [Member] | ||
Lessee, Operating Lease, Liability, to be Paid, Total | $ 1,400,000 | |
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 - Maturities of Lease Liabilities for Operating Leases (Details) | Nov. 30, 2022 USD ($) |
FYE 23 | $ 216,848 |
FYE 24 | 760,952 |
FYE 25 | 611,988 |
FYE 26 | 514,346 |
FYE 27 | 242,558 |
Thereafter | 462,120 |
Total | 2,808,812 |
Less: imputed interest | (226,761) |
Present value of lease liabilities: | $ 2,582,051 |
Weighted average lease term (Year) | 5 years 7 months 6 days |
Note 12 - Commitments and Con_3
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | |
Executive Salary, Bonus | $ 18,000 | ||||
Contractual Obligation, Total | $ 36,000 | $ 36,000 | |||
Minimum [Member] | |||||
Purchase Contracts, Term (Month) | 6 months | ||||
Maximum [Member] | |||||
Purchase Contracts, Term (Month) | 18 months | ||||
Former Senior Vice President, Sales and Marketing [Member] | |||||
Payments for Postemployment Benefits | $ 70,000 | ||||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 56,250 | ||||
Restricted Stock Units (RSUs) [Member] | Former Senior Vice President, Sales and Marketing [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 12,499 | ||||
Contested Solicitation of Proxies [Member] | |||||
Litigation Settlement, Expense | $ 764,000 | $ 800,000 | $ 2,900,000 | $ 1,700,000 |
Note 12 - Commitments and Con_4
Note 12 - Commitments and Contingencies - Separation Agreement (Details) - Separation Agreement [Member] - Former Senior Vice President, Sales and Marketing [Member] | 9 Months Ended |
Nov. 30, 2022 USD ($) | |
Accrued severance compensation: | $ 928,938 |
Consulting Services: | 37,500 |
Total | 1,061,594 |
Restricted Stock Units (RSUs) [Member] | |
Accelerated restricted stock unit compensation expense: | $ 95,156 |
Note 13 - Operating Segments (D
Note 13 - Operating Segments (Details Textual) | 9 Months Ended |
Nov. 30, 2022 | |
Number of Reportable Segments | 5 |
Note 13 - Operating Segments -
Note 13 - Operating Segments - Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2022 | Nov. 30, 2021 | Nov. 30, 2022 | Nov. 30, 2021 | Feb. 28, 2022 | |
Revenues | $ 9,475,381 | $ 8,507,634 | $ 24,827,638 | $ 24,027,422 | |
Segment profit (loss) | (211,979) | (1,956,513) | (2,579,834) | (878,508) | |
Total assets | 24,842,590 | 27,298,664 | 24,842,590 | 27,298,664 | $ 26,880,761 |
Capital expenditures | 223,854 | 133,601 | 810,732 | 704,462 | |
Total depreciation and amortization | 287,892 | 298,782 | 863,322 | 904,972 | |
Franchising [Member] | |||||
Revenues | 1,238,559 | 1,250,136 | 4,218,700 | 4,284,858 | |
Segment profit (loss) | 337,225 | 578,357 | 1,756,239 | 1,866,829 | |
Total assets | 1,010,798 | 1,590,914 | 1,010,798 | 1,590,914 | |
Capital expenditures | 15,925 | 650 | 17,106 | 1,832 | |
Total depreciation and amortization | 8,432 | 9,060 | 25,871 | 27,732 | |
Manufacturing [Member] | |||||
Revenues | 7,284,940 | 6,376,367 | 17,250,750 | 16,578,535 | |
Segment profit (loss) | 1,534,725 | 1,339,108 | 3,062,876 | 3,254,726 | |
Total assets | 13,639,903 | 10,988,056 | 13,639,903 | 10,988,056 | |
Capital expenditures | 150,735 | 59,095 | 685,420 | 593,043 | |
Total depreciation and amortization | 161,515 | 156,696 | 484,980 | 469,562 | |
Retail Segment [Member] | |||||
Revenues | 301,594 | 275,530 | 815,197 | 829,542 | |
Segment profit (loss) | 45,035 | 16,706 | 27,947 | 61,029 | |
Total assets | 624,705 | 651,372 | 624,705 | 651,372 | |
Capital expenditures | 4,860 | 2,620 | 5,435 | 3,688 | |
Total depreciation and amortization | 1,407 | 1,397 | 4,231 | 4,194 | |
U-Swirl Segment [Member] | |||||
Revenues | 650,288 | 605,601 | 2,542,991 | 2,334,487 | |
Segment profit (loss) | (15,822) | (56,790) | 352,922 | 262,202 | |
Total assets | 4,138,398 | 4,824,466 | 4,138,398 | 4,824,466 | |
Capital expenditures | 0 | 12,751 | 32,547 | 14,150 | |
Total depreciation and amortization | 98,895 | 116,648 | 295,908 | 350,047 | |
Other Segments [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Segment profit (loss) | (2,113,142) | (3,833,894) | (7,779,818) | (6,323,294) | |
Total assets | 5,428,786 | 9,243,856 | 5,428,786 | 9,243,856 | |
Capital expenditures | 52,334 | 58,485 | 70,224 | 91,749 | |
Total depreciation and amortization | 17,643 | 14,981 | 52,332 | 53,437 | |
Operating Segments [Member] | |||||
Revenues | 9,820,966 | 8,817,928 | 25,724,745 | 24,887,786 | |
Operating Segments [Member] | Franchising [Member] | |||||
Revenues | 1,239,938 | 1,251,381 | 4,222,694 | 4,289,116 | |
Operating Segments [Member] | Manufacturing [Member] | |||||
Revenues | 7,629,146 | 6,685,416 | 18,143,863 | 17,434,641 | |
Operating Segments [Member] | Retail Segment [Member] | |||||
Revenues | 301,594 | 275,530 | 815,197 | 829,542 | |
Operating Segments [Member] | U-Swirl Segment [Member] | |||||
Revenues | 650,288 | 605,601 | 2,542,991 | 2,334,487 | |
Operating Segments [Member] | Other Segments [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | |||||
Revenues | (345,585) | (310,294) | (897,107) | (860,364) | |
Intersegment Eliminations [Member] | Franchising [Member] | |||||
Revenues | (1,379) | (1,245) | (3,994) | (4,258) | |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||||
Revenues | (344,206) | (309,049) | (893,113) | (856,106) | |
Intersegment Eliminations [Member] | Retail Segment [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Other Segments [Member] | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Note 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) $ in Millions | Nov. 30, 2022 USD ($) |
Deferred Tax Assets, Gross, Total | $ 2 |