Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
31-May-14 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ROCKY MOUNTAIN CHOCOLATE FACTORY INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--02-28 | ' |
Entity Common Stock, Shares Outstanding | ' | 6,209,056 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000785815 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-May-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Current Period Unaudited) (USD $) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Revenues | ' | ' |
Sales | $7,851,051 | $8,178,689 |
Franchise and royalty fees | 2,471,155 | 1,999,173 |
Total revenues | 10,322,206 | 10,177,862 |
Costs and Expenses | ' | ' |
Cost of sales, exclusive of depreciation and amortization expense of $89,628 and $71,870, respectively | 4,833,471 | 5,027,164 |
Franchise costs | 545,558 | 478,810 |
Sales and marketing | 646,067 | 505,437 |
General and administrative | 1,411,433 | 1,270,704 |
Retail operating | 1,039,954 | 840,962 |
Depreciation and amortization | 374,412 | 235,756 |
Restructuring and acquisition related charges | 124,551 | ' |
Total costs and expenses | 8,975,446 | 8,358,833 |
Income from Operations | 1,346,760 | 1,819,029 |
Other Income (Expense) | ' | ' |
Interest expense | -61,333 | ' |
Interest income | 12,509 | 11,664 |
Other Income (Expense), net | -48,824 | 11,664 |
Income Before Income Taxes | 1,297,936 | 1,830,693 |
Income Tax Provision | 360,664 | 584,154 |
Consolidated Net Income | 937,272 | 1,246,539 |
Less: Net (loss) income attributable to non-controlling interest | 225,938 | 67,232 |
Net Income attributable to RMCF | $711,334 | $1,179,307 |
Basic Earnings per Common Share (in Dollars per share) | $0.12 | $0.19 |
Diluted Earnings per Common Share (in Dollars per share) | $0.11 | $0.19 |
Weighted Average Common Shares Outstanding (in Shares) | 6,159,086 | 6,074,332 |
Dilutive Effect of Stock Options (in Shares) | 329,192 | 237,416 |
Weighted Average Common Shares Outstanding, Assuming Dilution (in Shares) | 6,488,278 | 6,311,748 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Current Period Unaudited) (Parentheticals) (USD $) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Cost of sales, depreciation and amortization | $89,628 | $71,870 |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | 31-May-14 | Feb. 28, 2014 |
Current Assets | ' | ' |
Cash and cash equivalents | $9,794,973 | $5,859,729 |
Accounts receivable, less allowance for doubtful accounts of $587,056 and $543,683, respectively | 3,967,871 | 5,347,752 |
Notes receivable, current portion, less current portion of the valuation allowance of $33,926 and $33,047, respectively | 343,832 | 357,360 |
Refundable income taxes | ' | 160,890 |
Inventories, less reserve for obsolete inventory of $200,129 and $204,068, respectively | 4,217,089 | 4,410,763 |
Deferred income taxes | 614,723 | 538,871 |
Other | 372,797 | 316,378 |
Total current assets | 19,311,285 | 16,991,743 |
Property and Equipment, Net | 8,334,194 | 8,488,198 |
Other Assets | ' | ' |
Notes receivable, less current portion and valuation allowance of $24,200 and $24,200, respectively | 583,597 | 509,784 |
Goodwill, net | 4,216,444 | 4,216,444 |
Franchise rights, net | 6,405,699 | 6,489,248 |
Intangible assets, net | 593,802 | 602,183 |
Other | 153,775 | 167,939 |
Total other assets | 11,953,317 | 11,985,598 |
Total Assets | 39,598,796 | 37,465,539 |
Current Liabilities | ' | ' |
Current maturities of long term debt | 405,938 | 108,023 |
Accounts payable | 2,274,765 | 1,971,530 |
Accrued salaries and wages | 702,378 | 776,567 |
Other accrued expenses | 2,888,171 | 2,627,872 |
Dividend payable | 682,090 | 675,422 |
Deferred income | 1,779,148 | 1,798,781 |
Total current liabilities | 8,732,490 | 7,958,195 |
Long-Term Debt, Less Current Maturities | 5,994,062 | 6,291,977 |
Deferred Income Taxes | 1,056,176 | 1,050,489 |
Commitments and Contingencies | 0 | 0 |
Stockholders’ Equity | ' | ' |
Preferred stock value | 0 | 0 |
Common stock, $.03 par value, 100,000,000 shares authorized, 6,080,290 and 6,068,470 issued and outstanding, respectively | 186,025 | 184,206 |
Additional paid-in capital | 10,625,920 | 9,892,973 |
Retained earnings | 10,374,037 | 10,344,794 |
Non-controlling interest in equity of subsidiary | 2,630,086 | 1,742,905 |
Total stockholders’ equity | 23,816,068 | 22,164,878 |
Total Liabilities and Stockholders’ Equity | 39,598,796 | 37,465,539 |
Series A Preferred Stock [Member] | ' | ' |
Stockholders’ Equity | ' | ' |
Preferred stock value | 0 | 0 |
Undesignated Series [Member] | ' | ' |
Stockholders’ Equity | ' | ' |
Preferred stock value | $0 | $0 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | 31-May-14 | Feb. 28, 2014 |
Accounts receivable, allowance for doubtful accounts (in Dollars) | $587,056 | $543,683 |
Current portion of the valuation allowance (in Dollars) | 33,926 | 33,047 |
Inventories, reserve (in Dollars) | 200,129 | 204,068 |
Notes receivable, valuation allowance (in Dollars) | $24,200 | $24,200 |
Preferred stock ,par value (in Dollars per share) | $0.10 | $0.10 |
Preferred stock,shares authorized | 250,000 | 250,000 |
Preferred stock,shares issued | 0 | 0 |
Preferred stock,shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.03 | $0.03 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 6,080,290 | 6,068,470 |
Common stock, shares outstanding | 6,080,290 | 6,068,470 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock,shares authorized | 50,000 | 50,000 |
Undesignated Series [Member] | ' | ' |
Preferred stock,shares authorized | 200,000 | 200,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Cash Flows From Operating Activities | ' | ' |
Net income | $711,334 | $1,179,307 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 374,412 | 235,756 |
Provision for loss on accounts and notes receivable | 42,600 | 70,709 |
Provision for obsolete inventory | 11,042 | ' |
Gain on sale of property and equipment | -4,902 | -2,600 |
Expense recorded for stock based compensation | 214,323 | 142,808 |
Deferred income taxes | -70,165 | -37,424 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 1,337,281 | 446,607 |
Inventories | 355,877 | 262,391 |
Other current assets | -59,475 | -158,610 |
Accounts payable | 129,990 | -968,459 |
Accrued liabilities | 347,000 | -416,174 |
Deferred income | -19,633 | 57,695 |
Net cash provided by operating activities | 3,369,684 | 812,006 |
Cash Flows From Investing Activities | ' | ' |
Addition to notes receivable | -165,246 | -153,893 |
Proceeds received on notes receivable | 104,961 | 47,704 |
Proceeds from sale or distribution of assets | ' | 2,600 |
Purchases of property and equipment | -119,193 | -57,795 |
Other | 1,240,681 | 47,386 |
Net cash provided by (used in) investing activities | 1,061,203 | -113,998 |
Cash Flows From Financing Activities | ' | ' |
Tax benefit of stock awards | 182,080 | 20,276 |
Dividends paid | -675,423 | -667,532 |
Issuance of common stock, net | -2,300 | ' |
Net cash used in financing activities | -495,643 | -647,256 |
Net Increase in Cash and Cash Equivalents | 3,935,244 | 50,752 |
Cash and Cash Equivalents, Beginning of Period | 5,859,729 | 5,321,696 |
Cash and Cash Equivalents, End of Period | $9,794,973 | $5,372,448 |
Note_1_Nature_of_Operations_an
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | 3 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Business Description and Accounting Policies [Text Block] | ' | ||||||||||||
NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION | |||||||||||||
Nature of Operations | |||||||||||||
The accompanying consolidated financial statements include the accounts of Rocky Mountain Chocolate Factory, Inc. (“RMCF”), its wholly-owned subsidiary, Aspen Leaf Yogurt, LLC (“ALY”) and its 40%-owned subsidiary, U-Swirl, Inc. (“U-Swirl”), of which RMCF has financial control (collectively, the “Company”). All intercompany balances and transactions have been eliminated in consolidation. As of May 31, 2014, RMCF held approximately 40% of U-Swirl’soutstanding common stock. Additionally, RMCF has the right to acquire approximately 27,100,000 shares of U-Swirl’s common stock through the conversion of outstanding debt owed by U-Swirl to RMCF. If RMCF exercised this conversion right, RMCF would hold approximately 75% of U-Swirl’s common stock. Certain directors of RMCF constitute a majority of the directors of U-Swirl. Pursuant to a voting agreement among RMCF, ALY and certain shareholders of U-Swirl, the parties agree to vote their shares such that certain designees of RMCF shall constitute a majority of U-Swirl’s board of directors so long as RMCF or its affiliates own greater than 10% of U-Swirl’s outstanding common stock. | |||||||||||||
RMCF is an international franchisor, confectionery manufacturer and retail operator in the United States, Canada, Japan, South Korea, and the United Arab Emirates. RMCF manufactures an extensive line of premium chocolate candies and other confectionery products. | |||||||||||||
ALY was incorporated in the State of Colorado as Aspen Leaf Yogurt, Inc. on September 30, 2010 and organized through conversion as Aspen Leaf Yogurt, LLC on October 14, 2010. ALY was a franchisor and retail operator of self-serve frozen yogurt retail units until the sale of substantially all assets in January 2013. As of January 2013, the Company ceased to operate any Company-owned Aspen Leaf Yogurt locations, or sell and support franchise locations. | |||||||||||||
On January 14, 2013, Ulysses Asset Acquisition, LLC (“Newco”), a wholly-owned subsidiary of the Company formed in the State of Colorado on January 2, 2013, entered into an agreement to acquire substantially all of the franchise rights of YHI, Inc. and Yogurtini International, LLC (collectively, “Yogurtini”), which are the franchisors of self-serve frozen yogurt retail units branded as “Yogurtini.” In addition, on January 14, 2013, the Company entered into two agreements to sell all of its membership interests in Newco and substantially all of its assets in ALY to U-Swirl, Inc., a publicly traded company (OTCQB: SWRL), in exchange for a 60% controlling equity interest in U-Swirl, Inc. U-Swirl, Inc. is in the business of offering consumers frozen desserts such as yogurt and sorbet. U-Swirl launched a national chain of self-serve frozen yogurt cafés called U-Swirl Frozen Yogurt and are franchising this concept. U-Swirl has built and operates cafés owned and operated by U-Swirl, Inc. (“Company-owned”) and franchises to others the right to own and operate U-Swirl cafés. It also franchises and operates self-serve frozen yogurt cafes under the names “Yogurtini,” “CherryBerry,” “Josie’s Frozen Yogurt,” “Yogli Mogli Frozen Yogurt,” “Fuzzy Peach Frozen Yogurt,” and “Aspen Leaf Yogurt” as a result of the transactions described above. | |||||||||||||
On January 17, 2014, U-Swirl entered into an Asset Purchase Agreement with CherryBerry, which was the franchisor of self-serve frozen yogurt cafés branded as “CherryBerry.” Pursuant to the CherryBerry Purchase Agreement, U-Swirl purchased certain assets of CherryBerry used in its business of franchising frozen yogurt cafés, including all of its franchise rights and one company-owned café. The assets were acquired for approximately $4.25 million in cash and 4 million shares of U-Swirl common stock. U-Swirl also entered into an Asset Purchase Agreement with Yogli Mogli LLC, which was the franchisor of self-serve frozen yogurt cafés branded as “Yogli Mogli”. Pursuant to the Yogli Mogli Purchase Agreement, U-Swirl purchased certain assets of Yogli Mogli used in its business of franchising frozen yogurt cafés, including all of its franchise rights and four company-owned cafés. The assets were acquired for approximately $2.15 million in cash and $200,000 in shares of U-Swirl common stock. The Yogli Mogli Purchase Agreement contains customary representations and warranties, covenants and indemnification obligations. | |||||||||||||
On February 20, 2014 U-Swirl entered into an Asset Purchase Agreement to acquire the business assets of Fuzzy Peach Franchising, LLC. The acquisition of all intellectual property and worldwide franchise and license rights includes the rights associated with 17 Fuzzy Peach Frozen Yogurt stores. U-Swirl purchased the Fuzzy Peach Franchising, LLC assets for $481,000 in cash paid at the time of closing, plus an earn-out that could increase the purchase price by up to another $349,000 based upon royalty income generated by Fuzzy Peach stores over the next twelve months. | |||||||||||||
The Company’s revenues are currently derived from three principal sources: sales to franchisees and others of chocolates and other confectionery products manufactured by the Company; the collection of initial franchise fees, royalty and marketing fees from franchisees’ sales; and sales at Company-owned stores of chocolates, frozen yogurt, and other confectionery products. | |||||||||||||
The following table summarizes the number of stores operating under RMCF and its subsidiaries at May 31, 2014: | |||||||||||||
Sold, Not Yet Open | Open | Total | |||||||||||
Rocky Mountain Chocolate Factory | |||||||||||||
Company-owned stores | - | 6 | 6 | ||||||||||
Franchise stores – Domestic stores | 5 | 206 | 211 | ||||||||||
Franchise stores – Domestic kiosks | - | 6 | 6 | ||||||||||
International License Stores | 1 | 69 | 70 | ||||||||||
Cold Stone Creamery – co-branded | 5 | 65 | 70 | ||||||||||
U-Swirl, Inc. Stores (Including all associated brands) | |||||||||||||
Company-owned stores | - | 11 | 11 | ||||||||||
Company-owned stores – co-branded | - | 2 | 2 | ||||||||||
Franchise stores – Domestic stores | - | 268 | 268 | ||||||||||
Franchise stores – Domestic – co-branded | - | 11 | 11 | ||||||||||
International License Stores | - | 6 | 6 | ||||||||||
Total | 11 | 650 | 661 | ||||||||||
Basis of Presentation | |||||||||||||
The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and Securities and Exchange Commission regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three months ended May 31, 2014 are not necessarily indicative of the results to be expected for the entire fiscal year. | |||||||||||||
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-K for the fiscal year ended February 28, 2014. | |||||||||||||
Subsequent Events | |||||||||||||
In June 2014, the Company entered into a definitive agreement to sell three company-owned cafés. The Company received a deposit of $600,000 from the buyer in May 2014 to secure the rights to acquire the assets through a definitive agreement. These cafés were acquired in January 2014 as part of the Yogli Mogli Acquisition. The Company believes that the sale of these assets will approximate the preliminary value assigned to the assets and that the sale of the assets will not have a material impact on results of operations. | |||||||||||||
Stock-Based Compensation | |||||||||||||
At May 31, 2014, the Company had stock-based compensation plans for employees and non-employee directors that authorized the granting of stock awards, including stock options and restricted stock units. | |||||||||||||
The Company recognized $214,323 of stock-based compensation expense during the three months ended May 31, 2014 compared with $142,808 during the three months ended May 31, 2013. Compensation costs related to stock-based compensation are generally amortized over the vesting period. | |||||||||||||
The following table summarizes stock option transactions for common stock during the three months ended May 31, 2014 and 2013: | |||||||||||||
Three Months Ended | |||||||||||||
May 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Outstanding stock options as of February 28: | 155,880 | 270,945 | |||||||||||
Granted | - | - | |||||||||||
Exercised | (133,240 | ) | - | ||||||||||
Cancelled/forfeited | - | (88,725 | ) | ||||||||||
Outstanding stock options as of May 31: | 22,640 | 182,220 | |||||||||||
Weighted average exercise price | $ | 11.57 | $ | 7.93 | |||||||||
Weighted average remaining contractual term (in years) | 1.06 | 1.17 | |||||||||||
The following table summarizes non-vested restricted stock unit transactions for common stock during the three months ended May 31, 2014 and 2013: | |||||||||||||
Three Months Ended | |||||||||||||
May 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Outstanding non-vested restricted stock units as of February 28: | 295,040 | 57,030 | |||||||||||
Granted | - | 280,900 | |||||||||||
Vested | (7,820 | ) | (7,820 | ) | |||||||||
Cancelled/forfeited | - | - | |||||||||||
Outstanding non-vested restricted stock units as of May 31: | 287,220 | 330,110 | |||||||||||
Weighted average grant date fair value | $ | 12.16 | $ | 11.78 | |||||||||
Weighted average remaining vesting period (in years) | 4.84 | 5.17 | |||||||||||
During the three months ended May 31, 2014, the Company issued 4,000 fully vested, unrestricted shares of stock to non-employee directors compared with 4,000 fully vested, unrestricted shares of stock to non-employee directors in the three months ended May 31, 2013. In connection with these non-employee director stock issuances, the Company recognized $47,480 and $48,400 of stock-based compensation expense during the three-month period ended May 31, 2014 and 2013, respectively. | |||||||||||||
During the three months ended May 31, 2014, the Company recognized $166,843 of stock-based compensation expense related to non-vested, non-forfeited restricted stock unit grants. The restricted stock units generally vest between 17% and 20% annually over a period of five to six years. Total unrecognized compensation expense of non-vested, non-forfeited restricted stock units, as of May 31, 2014, was $2,981,018, which is expected to be recognized over the weighted average period of 4.8 years. | |||||||||||||
No restricted stock units were granted during the three months ended May 31, 2014. During the three month period ended May 31, 2013, the Company granted 280,900 shares of restricted stock units with a grant date fair value of $3,437,950 or $12.24 per share. The restricted stock unit grants vest between 17% and 20% annually over a period of five to six years. There were no stock options awarded during the three months ended May 31, 2014 or 2013. | |||||||||||||
The Company recognized $82,449 of U-Swirl, Inc. stock-based compensation expense during the three months ended May 31, 2014 compared with $28,223 recognized during the three months ended May 31, 2013. |
Note_2_Earnings_Per_Share
Note 2 - Earnings Per Share | 3 Months Ended |
31-May-14 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share [Text Block] | ' |
NOTE 2 - EARNINGS PER SHARE | |
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 stock options and restricted stock units. For the three months ended May 31, 2014 and 2013, 12,936 and 101,661 stock options were excluded, respectively, from the computation of earnings per share because their effect would have been anti-dilutive. Restricted stock units become dilutive within the period granted and remain dilutive until the units vest and are issued as common stock. |
Note_3_Inventories
Note 3 - Inventories | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
NOTE 3 – INVENTORIES | |||||||||
The Company held the following inventory at May 31, 2014 and February 28, 2014: | |||||||||
31-May-14 | 28-Feb-14 | ||||||||
Ingredients and supplies | $ | 2,651,648 | $ | 2,531,413 | |||||
Finished candy | 1,406,257 | 1,761,131 | |||||||
U-Swirl, Inc. food and packaging | 159,184 | 118,219 | |||||||
Total inventories | $ | 4,217,089 | $ | 4,410,763 | |||||
Note_4_Property_and_Equipment_
Note 4 - Property and Equipment, Net | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
NOTE 4 - PROPERTY AND EQUIPMENT, NET | |||||||||
Property and equipment at May 31, 2013 and February 28, 2013 consists of the following: | |||||||||
31-May-14 | 28-Feb-14 | ||||||||
Land | $ | 513,618 | $ | 513,618 | |||||
Building | 4,775,466 | 4,775,466 | |||||||
Machinery and equipment | 10,578,325 | 9,518,832 | |||||||
Furniture and fixtures | 1,293,647 | 1,324,846 | |||||||
Leasehold improvements | 2,478,086 | 2,489,782 | |||||||
Transportation equipment | 415,235 | 394,508 | |||||||
Capital work in progress | - | 967,937 | |||||||
20,054,377 | 19,984,989 | ||||||||
Less accumulated depreciation | 11,720,183 | 11,496,791 | |||||||
Property and equipment, net | $ | 8,334,194 | $ | 8,488,198 | |||||
Note_5_Stockholders_Equity
Note 5 - Stockholders' Equity | 3 Months Ended |
31-May-14 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
NOTE 5 - STOCKHOLDERS’ EQUITY | |
Cash Dividend | |
The Company paid a quarterly cash dividend of $0.11 per share of common stock on March 14, 2014 to shareholders of record on February 28, 2014. The Company paid a quarterly cash dividend of $0.11 per share of common stock on June 13, 2014 to shareholders of record on June 3, 2014. | |
Future declaration of dividends will depend on, among other things, the Company's results of operations, capital requirements, financial condition and on such other factors as the Company's Board of Directors may in its discretion consider relevant and in the best long term interest of the shareholders. |
Note_6_Supplemental_Cash_Flow_
Note 6 - Supplemental Cash Flow Information | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Cash Flow, Supplemental Disclosures [Text Block] | ' | ||||||||
NOTE 6 – SUPPLEMENTAL CASH FLOW INFORMATION | |||||||||
Three Months Ended | |||||||||
May 31, | |||||||||
Cash paid (received) for: | 2014 | 2013 | |||||||
Interest, net | $ | 47,093 | $ | (8,606 | ) | ||||
Income taxes | 57,037 | 594,336 | |||||||
Non-Cash Operating Activities Accrued Inventory | 173,245 | 215,703 | |||||||
Non-Cash Financing Activities Dividend payable | $ | 682,090 | $ | 668,832 | |||||
Note_7_Operating_Segments
Note 7 - Operating Segments | 3 Months Ended | ||||||||||||||||||||||||
31-May-14 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||||||||||
NOTE 7 - OPERATING SEGMENTS | |||||||||||||||||||||||||
The Company classifies its business interests into five reportable segments: Franchising, Manufacturing, Retail Stores, U-Swirl, Inc. 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 to these consolidated financial statements and Note 1 to the Company’s financial statements included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2013. The Company evaluates performance and allocates resources based on operating contribution, which excludes unallocated corporate general and administrative costs and income tax expense or benefit. The Company’s reportable segments are strategic businesses that utilize common merchandising, distribution, and marketing functions, as well as common information systems and corporate administration. All inter-segment sales prices are market based. Each segment is managed separately because of the differences in required infrastructure and the difference in products and services: | |||||||||||||||||||||||||
Three Months Ended | Franchising | Manufacturing | Retail | U-Swirl, Inc. | Other | Total | |||||||||||||||||||
31-May-14 | |||||||||||||||||||||||||
Total revenues | $ | 1,448,264 | $ | 6,190,662 | $ | 502,791 | $ | 2,501,692 | $ | - | $ | 10,643,409 | |||||||||||||
Intersegment revenues | (613 | ) | (320,590 | ) | - | - | - | (321,203 | ) | ||||||||||||||||
Revenue from external | 1,447,651 | 5,870,072 | 502,791 | 2,501,692 | - | 10,322,206 | |||||||||||||||||||
customers | |||||||||||||||||||||||||
Segment profit (loss) | 636,183 | 1,481,664 | (67,115 | ) | 200,360 | (953,156 | ) | 1,297,936 | |||||||||||||||||
Total assets | 1,256,360 | 11,103,741 | 1,254,183 | 17,345,621 | 8,638,891 | 39,598,796 | |||||||||||||||||||
Capital expenditures | - | 61,105 | 16,088 | 39,673 | 2,327 | 119,193 | |||||||||||||||||||
Total depreciation & | 10,049 | 90,160 | 9,449 | 226,100 | 38,654 | 374,412 | |||||||||||||||||||
amortization | |||||||||||||||||||||||||
Three Months Ended | Franchising | Manufacturing | Retail | U-Swirl, Inc. | Other | Total | |||||||||||||||||||
31-May-13 | |||||||||||||||||||||||||
Total revenues | $ | 1,660,016 | $ | 6,726,056 | $ | 515,138 | $ | 1,717,406 | $ | - | $ | 10,618,616 | |||||||||||||
Intersegment revenues | - | (440,754 | ) | - | - | - | (440,754 | ) | |||||||||||||||||
Revenue from external customers | 1,660,016 | 6,285,302 | 515,138 | 1,717,406 | - | 10,177,862 | |||||||||||||||||||
Segment profit (loss) | 848,444 | 1,748,467 | (44,859 | ) | 168,079 | (889,438 | ) | 1,830,693 | |||||||||||||||||
Total assets | 1,334,534 | 10,035,858 | 1,277,606 | 3,357,523 | 7,465,193 | 23,470,714 | |||||||||||||||||||
Capital expenditures | 8,451 | 31,481 | 5,611 | - | 12,252 | 57,795 | |||||||||||||||||||
Total depreciation & amortization | 8,593 | 72,373 | 14,740 | 105,578 | 34,472 | 235,756 | |||||||||||||||||||
Revenue from one customer of the Company’s Manufacturing segment represented approximately $1.6 million of the Company’s revenues from external customers during the three months ended May 31, 2014 compared to $1.8 million during the three months ended May 31, 2013. |
Note_8_Goodwill_and_Intangible
Note 8 - Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||||||
31-May-14 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||||||||||
NOTE 8 – GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||||
Intangible assets at May 31, 2014 and February 28, 2014 consist of the following: | |||||||||||||||||||||
31-May-14 | 28-Feb-14 | ||||||||||||||||||||
Amortization | Gross Carrying | Accumulated Amortization | Gross Carrying | Accumulated Amortization | |||||||||||||||||
Period (years) | Value | Value | |||||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||||||
Store design | 10 | $ | 220,778 | $ | 207,027 | $ | 220,778 | $ | 206,652 | ||||||||||||
Packaging licenses | 5-Mar | 120,830 | 120,830 | 120,830 | 120,830 | ||||||||||||||||
Packaging design | 10 | 430,973 | 430,973 | 430,973 | 430,973 | ||||||||||||||||
Trademark/Non competition agreements | 20-May | 593,340 | 13,289 | 593,340 | 5,283 | ||||||||||||||||
Total | 1,365,921 | 772,119 | 1,365,921 | 763,738 | |||||||||||||||||
Intangible assets not subject to amortization | |||||||||||||||||||||
Franchising segment- | |||||||||||||||||||||
Company stores goodwill | 1,099,328 | 267,020 | 1,099,328 | 267,020 | |||||||||||||||||
Franchising goodwill | 3,464,500 | 197,682 | 3,464,500 | 197,682 | |||||||||||||||||
Manufacturing segment-Goodwill | 295,000 | 197,682 | 295,000 | 197,682 | |||||||||||||||||
Trademark | 20,000 | - | 20,000 | - | |||||||||||||||||
Total Goodwill | 4,878,828 | 662,384 | 4,878,828 | 662,384 | |||||||||||||||||
Franchise Rights | 20 | 6,580,034 | 174,335 | 6,580,034 | 90,786 | ||||||||||||||||
Total intangible assets | $ | 12,824,783 | $ | 1,608,838 | $ | 12,824,783 | $ | 1,516,908 | |||||||||||||
Amortization expense related to intangible assets totaled $91,930 and $159 during the three months ended May 31, 2014 and 2013, respectively. | |||||||||||||||||||||
At May 31, 2014, annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following: | |||||||||||||||||||||
2015 | $ | 282,057 | |||||||||||||||||||
2016 | 413,645 | ||||||||||||||||||||
2017 | 459,218 | ||||||||||||||||||||
2018 | 481,977 | ||||||||||||||||||||
2019 | 494,614 | ||||||||||||||||||||
Thereafter | 4,867,990 | ||||||||||||||||||||
Total | $ | 6,999,501 | |||||||||||||||||||
Note_9_Related_Party_Transacti
Note 9 - Related Party Transactions | 3 Months Ended |
31-May-14 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 9 – RELATED PARTY TRANSACTIONS | |
The Company has entered into Franchise Agreements and a Development Agreement with a member of the Company’s Board of Directors. The Director operates two ALY locations under the Franchise Agreements and the Development Agreement. As of May 31, 2014, the Company had receivables of approximately $1,100 due from the Director associated with the director’s ownership and operation of the two current ALY locations. | |
U-Swirl, Inc. was owed $13,628 and $11,989 as of May 31, 2014 and February 28, 2014, respectively, from a U-Swirl franchise that is owned and operated by the grandchildren of the Company’s Chief Marketing Officer. The corporate secretary and treasurer of the franchise is also the Company’s corporate secretary. | |
As of May 31, 2014 and February 28, 2014, U-Swirl, Inc. had deferred revenue of $30,000 and $30,000, respectively, from an area developer in which the Company’s Chief Executive Officer and Chief Operating Officer have a minority interest. |
Note_10_Restructuring_and_Acqu
Note 10 - Restructuring and Acquisition Related Charges | 3 Months Ended | ||||
31-May-14 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Restructuring and Related Activities Disclosure [Text Block] | ' | ||||
NOTE 10 – RESTRUCTURING AND ACQUISITION RELATED CHARGES | |||||
On January 17, 2014, U-Swirl entered into an Asset Purchase Agreement with CherryBerry, which was the franchisor of self-serve frozen yogurt retail stores branded as “CherryBerry.” Pursuant to the CherryBerry Purchase Agreement, U-Swirl purchased certain assets of CherryBerry used in its business of franchising frozen yogurt stores, including all of its franchise rights and one company-owned store. On January 17, 2014 U-Swirl also entered into an Asset Purchase Agreement with Yogli Mogli, which was the franchisor of self-serve frozen yogurt retail stores branded as “Yogli Mogli”. Pursuant to the Yogli Mogli Purchase Agreement, U-Swirl purchased certain assets of Yogli Mogli used in its business of franchising frozen yogurt stores, including all of its franchise rights and four company-owned stores. On February 20, 2014 U-Swirl entered into an Asset Purchase Agreement to acquire the business assets of Fuzzy Peach Franchising, LLC. The acquisition of all intellectual property and worldwide franchise and license rights includes the rights associated with 17 Fuzzy Peach Frozen Yogurt stores. Associated with these transactions, the Company recorded net restructuring charges of $124,551 during the three months ended May 31, 2014. | |||||
Restructuring and acquisition charges incurred were comprised of the following for the three months ended May 31: | |||||
2014 | |||||
Professional fees | $ | 104,876 | |||
Severance/transitional compensation | 16,550 | ||||
Other | 3,125 | ||||
Total | $ | 124,551 | |||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||
Business Description and Basis of Presentation [Text Block] | ' | ||||||||||||
Nature of Operations | |||||||||||||
The accompanying consolidated financial statements include the accounts of Rocky Mountain Chocolate Factory, Inc. (“RMCF”), its wholly-owned subsidiary, Aspen Leaf Yogurt, LLC (“ALY”) and its 40%-owned subsidiary, U-Swirl, Inc. (“U-Swirl”), of which RMCF has financial control (collectively, the “Company”). All intercompany balances and transactions have been eliminated in consolidation. As of May 31, 2014, RMCF held approximately 40% of U-Swirl’soutstanding common stock. Additionally, RMCF has the right to acquire approximately 27,100,000 shares of U-Swirl’s common stock through the conversion of outstanding debt owed by U-Swirl to RMCF. If RMCF exercised this conversion right, RMCF would hold approximately 75% of U-Swirl’s common stock. Certain directors of RMCF constitute a majority of the directors of U-Swirl. Pursuant to a voting agreement among RMCF, ALY and certain shareholders of U-Swirl, the parties agree to vote their shares such that certain designees of RMCF shall constitute a majority of U-Swirl’s board of directors so long as RMCF or its affiliates own greater than 10% of U-Swirl’s outstanding common stock. | |||||||||||||
RMCF is an international franchisor, confectionery manufacturer and retail operator in the United States, Canada, Japan, South Korea, and the United Arab Emirates. RMCF manufactures an extensive line of premium chocolate candies and other confectionery products. | |||||||||||||
ALY was incorporated in the State of Colorado as Aspen Leaf Yogurt, Inc. on September 30, 2010 and organized through conversion as Aspen Leaf Yogurt, LLC on October 14, 2010. ALY was a franchisor and retail operator of self-serve frozen yogurt retail units until the sale of substantially all assets in January 2013. As of January 2013, the Company ceased to operate any Company-owned Aspen Leaf Yogurt locations, or sell and support franchise locations. | |||||||||||||
On January 14, 2013, Ulysses Asset Acquisition, LLC (“Newco”), a wholly-owned subsidiary of the Company formed in the State of Colorado on January 2, 2013, entered into an agreement to acquire substantially all of the franchise rights of YHI, Inc. and Yogurtini International, LLC (collectively, “Yogurtini”), which are the franchisors of self-serve frozen yogurt retail units branded as “Yogurtini.” In addition, on January 14, 2013, the Company entered into two agreements to sell all of its membership interests in Newco and substantially all of its assets in ALY to U-Swirl, Inc., a publicly traded company (OTCQB: SWRL), in exchange for a 60% controlling equity interest in U-Swirl, Inc. U-Swirl, Inc. is in the business of offering consumers frozen desserts such as yogurt and sorbet. U-Swirl launched a national chain of self-serve frozen yogurt cafés called U-Swirl Frozen Yogurt and are franchising this concept. U-Swirl has built and operates cafés owned and operated by U-Swirl, Inc. (“Company-owned”) and franchises to others the right to own and operate U-Swirl cafés. It also franchises and operates self-serve frozen yogurt cafes under the names “Yogurtini,” “CherryBerry,” “Josie’s Frozen Yogurt,” “Yogli Mogli Frozen Yogurt,” “Fuzzy Peach Frozen Yogurt,” and “Aspen Leaf Yogurt” as a result of the transactions described above. | |||||||||||||
On January 17, 2014, U-Swirl entered into an Asset Purchase Agreement with CherryBerry, which was the franchisor of self-serve frozen yogurt cafés branded as “CherryBerry.” Pursuant to the CherryBerry Purchase Agreement, U-Swirl purchased certain assets of CherryBerry used in its business of franchising frozen yogurt cafés, including all of its franchise rights and one company-owned café. The assets were acquired for approximately $4.25 million in cash and 4 million shares of U-Swirl common stock. U-Swirl also entered into an Asset Purchase Agreement with Yogli Mogli LLC, which was the franchisor of self-serve frozen yogurt cafés branded as “Yogli Mogli”. Pursuant to the Yogli Mogli Purchase Agreement, U-Swirl purchased certain assets of Yogli Mogli used in its business of franchising frozen yogurt cafés, including all of its franchise rights and four company-owned cafés. The assets were acquired for approximately $2.15 million in cash and $200,000 in shares of U-Swirl common stock. The Yogli Mogli Purchase Agreement contains customary representations and warranties, covenants and indemnification obligations. | |||||||||||||
On February 20, 2014 U-Swirl entered into an Asset Purchase Agreement to acquire the business assets of Fuzzy Peach Franchising, LLC. The acquisition of all intellectual property and worldwide franchise and license rights includes the rights associated with 17 Fuzzy Peach Frozen Yogurt stores. U-Swirl purchased the Fuzzy Peach Franchising, LLC assets for $481,000 in cash paid at the time of closing, plus an earn-out that could increase the purchase price by up to another $349,000 based upon royalty income generated by Fuzzy Peach stores over the next twelve months. | |||||||||||||
The Company’s revenues are currently derived from three principal sources: sales to franchisees and others of chocolates and other confectionery products manufactured by the Company; the collection of initial franchise fees, royalty and marketing fees from franchisees’ sales; and sales at Company-owned stores of chocolates, frozen yogurt, and other confectionery products. | |||||||||||||
The following table summarizes the number of stores operating under RMCF and its subsidiaries at May 31, 2014: | |||||||||||||
Sold, Not Yet Open | Open | Total | |||||||||||
Rocky Mountain Chocolate Factory | |||||||||||||
Company-owned stores | - | 6 | 6 | ||||||||||
Franchise stores – Domestic stores | 5 | 206 | 211 | ||||||||||
Franchise stores – Domestic kiosks | - | 6 | 6 | ||||||||||
International License Stores | 1 | 69 | 70 | ||||||||||
Cold Stone Creamery – co-branded | 5 | 65 | 70 | ||||||||||
U-Swirl, Inc. Stores (Including all associated brands) | |||||||||||||
Company-owned stores | - | 11 | 11 | ||||||||||
Company-owned stores – co-branded | - | 2 | 2 | ||||||||||
Franchise stores – Domestic stores | - | 268 | 268 | ||||||||||
Franchise stores – Domestic – co-branded | - | 11 | 11 | ||||||||||
International License Stores | - | 6 | 6 | ||||||||||
Total | 11 | 650 | 661 | ||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ||||||||||||
Basis of Presentation | |||||||||||||
The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and Securities and Exchange Commission regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three months ended May 31, 2014 are not necessarily indicative of the results to be expected for the entire fiscal year. | |||||||||||||
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-K for the fiscal year ended February 28, 2014. | |||||||||||||
Subsequent Events, Policy [Policy Text Block] | ' | ||||||||||||
Subsequent Events | |||||||||||||
In June 2014, the Company entered into a definitive agreement to sell three company-owned cafés. The Company received a deposit of $600,000 from the buyer in May 2014 to secure the rights to acquire the assets through a definitive agreement. These cafés were acquired in January 2014 as part of the Yogli Mogli Acquisition. The Company believes that the sale of these assets will approximate the preliminary value assigned to the assets and that the sale of the assets will not have a material impact on results of operations. | |||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||||||
Stock-Based Compensation | |||||||||||||
At May 31, 2014, the Company had stock-based compensation plans for employees and non-employee directors that authorized the granting of stock awards, including stock options and restricted stock units. | |||||||||||||
The Company recognized $214,323 of stock-based compensation expense during the three months ended May 31, 2014 compared with $142,808 during the three months ended May 31, 2013. Compensation costs related to stock-based compensation are generally amortized over the vesting period. | |||||||||||||
The following table summarizes stock option transactions for common stock during the three months ended May 31, 2014 and 2013: | |||||||||||||
Three Months Ended | |||||||||||||
May 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Outstanding stock options as of February 28: | 155,880 | 270,945 | |||||||||||
Granted | - | - | |||||||||||
Exercised | (133,240 | ) | - | ||||||||||
Cancelled/forfeited | - | (88,725 | ) | ||||||||||
Outstanding stock options as of May 31: | 22,640 | 182,220 | |||||||||||
Weighted average exercise price | $ | 11.57 | $ | 7.93 | |||||||||
Weighted average remaining contractual term (in years) | 1.06 | 1.17 | |||||||||||
The following table summarizes non-vested restricted stock unit transactions for common stock during the three months ended May 31, 2014 and 2013: | |||||||||||||
Three Months Ended | |||||||||||||
May 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Outstanding non-vested restricted stock units as of February 28: | 295,040 | 57,030 | |||||||||||
Granted | - | 280,900 | |||||||||||
Vested | (7,820 | ) | (7,820 | ) | |||||||||
Cancelled/forfeited | - | - | |||||||||||
Outstanding non-vested restricted stock units as of May 31: | 287,220 | 330,110 | |||||||||||
Weighted average grant date fair value | $ | 12.16 | $ | 11.78 | |||||||||
Weighted average remaining vesting period (in years) | 4.84 | 5.17 | |||||||||||
During the three months ended May 31, 2014, the Company issued 4,000 fully vested, unrestricted shares of stock to non-employee directors compared with 4,000 fully vested, unrestricted shares of stock to non-employee directors in the three months ended May 31, 2013. In connection with these non-employee director stock issuances, the Company recognized $47,480 and $48,400 of stock-based compensation expense during the three-month period ended May 31, 2014 and 2013, respectively. | |||||||||||||
During the three months ended May 31, 2014, the Company recognized $166,843 of stock-based compensation expense related to non-vested, non-forfeited restricted stock unit grants. The restricted stock units generally vest between 17% and 20% annually over a period of five to six years. Total unrecognized compensation expense of non-vested, non-forfeited restricted stock units, as of May 31, 2014, was $2,981,018, which is expected to be recognized over the weighted average period of 4.8 years. | |||||||||||||
No restricted stock units were granted during the three months ended May 31, 2014. During the three month period ended May 31, 2013, the Company granted 280,900 shares of restricted stock units with a grant date fair value of $3,437,950 or $12.24 per share. The restricted stock unit grants vest between 17% and 20% annually over a period of five to six years. There were no stock options awarded during the three months ended May 31, 2014 or 2013. | |||||||||||||
The Company recognized $82,449 of U-Swirl, Inc. stock-based compensation expense during the three months ended May 31, 2014 compared with $28,223 recognized during the three months ended May 31, 2013 |
Note_1_Nature_of_Operations_an1
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Tables) | 3 Months Ended | ||||||||||||
31-May-14 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Number Of Stores [Table Text Block] | ' | ||||||||||||
Sold, Not Yet Open | Open | Total | |||||||||||
Rocky Mountain Chocolate Factory | |||||||||||||
Company-owned stores | - | 6 | 6 | ||||||||||
Franchise stores – Domestic stores | 5 | 206 | 211 | ||||||||||
Franchise stores – Domestic kiosks | - | 6 | 6 | ||||||||||
International License Stores | 1 | 69 | 70 | ||||||||||
Cold Stone Creamery – co-branded | 5 | 65 | 70 | ||||||||||
U-Swirl, Inc. Stores (Including all associated brands) | |||||||||||||
Company-owned stores | - | 11 | 11 | ||||||||||
Company-owned stores – co-branded | - | 2 | 2 | ||||||||||
Franchise stores – Domestic stores | - | 268 | 268 | ||||||||||
Franchise stores – Domestic – co-branded | - | 11 | 11 | ||||||||||
International License Stores | - | 6 | 6 | ||||||||||
Total | 11 | 650 | 661 | ||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
Three Months Ended | |||||||||||||
May 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Outstanding stock options as of February 28: | 155,880 | 270,945 | |||||||||||
Granted | - | - | |||||||||||
Exercised | (133,240 | ) | - | ||||||||||
Cancelled/forfeited | - | (88,725 | ) | ||||||||||
Outstanding stock options as of May 31: | 22,640 | 182,220 | |||||||||||
Weighted average exercise price | $ | 11.57 | $ | 7.93 | |||||||||
Weighted average remaining contractual term (in years) | 1.06 | 1.17 | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||
Three Months Ended | |||||||||||||
May 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Outstanding non-vested restricted stock units as of February 28: | 295,040 | 57,030 | |||||||||||
Granted | - | 280,900 | |||||||||||
Vested | (7,820 | ) | (7,820 | ) | |||||||||
Cancelled/forfeited | - | - | |||||||||||
Outstanding non-vested restricted stock units as of May 31: | 287,220 | 330,110 | |||||||||||
Weighted average grant date fair value | $ | 12.16 | $ | 11.78 | |||||||||
Weighted average remaining vesting period (in years) | 4.84 | 5.17 |
Note_3_Inventories_Tables
Note 3 - Inventories (Tables) | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
31-May-14 | 28-Feb-14 | ||||||||
Ingredients and supplies | $ | 2,651,648 | $ | 2,531,413 | |||||
Finished candy | 1,406,257 | 1,761,131 | |||||||
U-Swirl, Inc. food and packaging | 159,184 | 118,219 | |||||||
Total inventories | $ | 4,217,089 | $ | 4,410,763 |
Note_4_Property_and_Equipment_1
Note 4 - Property and Equipment, Net (Tables) | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
31-May-14 | 28-Feb-14 | ||||||||
Land | $ | 513,618 | $ | 513,618 | |||||
Building | 4,775,466 | 4,775,466 | |||||||
Machinery and equipment | 10,578,325 | 9,518,832 | |||||||
Furniture and fixtures | 1,293,647 | 1,324,846 | |||||||
Leasehold improvements | 2,478,086 | 2,489,782 | |||||||
Transportation equipment | 415,235 | 394,508 | |||||||
Capital work in progress | - | 967,937 | |||||||
20,054,377 | 19,984,989 | ||||||||
Less accumulated depreciation | 11,720,183 | 11,496,791 | |||||||
Property and equipment, net | $ | 8,334,194 | $ | 8,488,198 |
Note_6_Supplemental_Cash_Flow_1
Note 6 - Supplemental Cash Flow Information (Tables) | 3 Months Ended | ||||||||
31-May-14 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
May 31, | |||||||||
Cash paid (received) for: | 2014 | 2013 | |||||||
Interest, net | $ | 47,093 | $ | (8,606 | ) | ||||
Income taxes | 57,037 | 594,336 | |||||||
Non-Cash Operating Activities Accrued Inventory | 173,245 | 215,703 | |||||||
Non-Cash Financing Activities Dividend payable | $ | 682,090 | $ | 668,832 |
Note_7_Operating_Segments_Tabl
Note 7 - Operating Segments (Tables) | 3 Months Ended | ||||||||||||||||||||||||
31-May-14 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | ||||||||||||||||||||||||
Three Months Ended | Franchising | Manufacturing | Retail | U-Swirl, Inc. | Other | Total | |||||||||||||||||||
31-May-14 | |||||||||||||||||||||||||
Total revenues | $ | 1,448,264 | $ | 6,190,662 | $ | 502,791 | $ | 2,501,692 | $ | - | $ | 10,643,409 | |||||||||||||
Intersegment revenues | (613 | ) | (320,590 | ) | - | - | - | (321,203 | ) | ||||||||||||||||
Revenue from external | 1,447,651 | 5,870,072 | 502,791 | 2,501,692 | - | 10,322,206 | |||||||||||||||||||
customers | |||||||||||||||||||||||||
Segment profit (loss) | 636,183 | 1,481,664 | (67,115 | ) | 200,360 | (953,156 | ) | 1,297,936 | |||||||||||||||||
Total assets | 1,256,360 | 11,103,741 | 1,254,183 | 17,345,621 | 8,638,891 | 39,598,796 | |||||||||||||||||||
Capital expenditures | - | 61,105 | 16,088 | 39,673 | 2,327 | 119,193 | |||||||||||||||||||
Total depreciation & | 10,049 | 90,160 | 9,449 | 226,100 | 38,654 | 374,412 | |||||||||||||||||||
amortization | |||||||||||||||||||||||||
Three Months Ended | Franchising | Manufacturing | Retail | U-Swirl, Inc. | Other | Total | |||||||||||||||||||
31-May-13 | |||||||||||||||||||||||||
Total revenues | $ | 1,660,016 | $ | 6,726,056 | $ | 515,138 | $ | 1,717,406 | $ | - | $ | 10,618,616 | |||||||||||||
Intersegment revenues | - | (440,754 | ) | - | - | - | (440,754 | ) | |||||||||||||||||
Revenue from external customers | 1,660,016 | 6,285,302 | 515,138 | 1,717,406 | - | 10,177,862 | |||||||||||||||||||
Segment profit (loss) | 848,444 | 1,748,467 | (44,859 | ) | 168,079 | (889,438 | ) | 1,830,693 | |||||||||||||||||
Total assets | 1,334,534 | 10,035,858 | 1,277,606 | 3,357,523 | 7,465,193 | 23,470,714 | |||||||||||||||||||
Capital expenditures | 8,451 | 31,481 | 5,611 | - | 12,252 | 57,795 | |||||||||||||||||||
Total depreciation & amortization | 8,593 | 72,373 | 14,740 | 105,578 | 34,472 | 235,756 |
Note_8_Goodwill_and_Intangible1
Note 8 - Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||
31-May-14 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | ||||||||||||||||||||
31-May-14 | 28-Feb-14 | ||||||||||||||||||||
Amortization | Gross Carrying | Accumulated Amortization | Gross Carrying | Accumulated Amortization | |||||||||||||||||
Period (years) | Value | Value | |||||||||||||||||||
Intangible assets subject to amortization | |||||||||||||||||||||
Store design | 10 | $ | 220,778 | $ | 207,027 | $ | 220,778 | $ | 206,652 | ||||||||||||
Packaging licenses | 5-Mar | 120,830 | 120,830 | 120,830 | 120,830 | ||||||||||||||||
Packaging design | 10 | 430,973 | 430,973 | 430,973 | 430,973 | ||||||||||||||||
Trademark/Non competition agreements | 20-May | 593,340 | 13,289 | 593,340 | 5,283 | ||||||||||||||||
Total | 1,365,921 | 772,119 | 1,365,921 | 763,738 | |||||||||||||||||
Intangible assets not subject to amortization | |||||||||||||||||||||
Franchising segment- | |||||||||||||||||||||
Company stores goodwill | 1,099,328 | 267,020 | 1,099,328 | 267,020 | |||||||||||||||||
Franchising goodwill | 3,464,500 | 197,682 | 3,464,500 | 197,682 | |||||||||||||||||
Manufacturing segment-Goodwill | 295,000 | 197,682 | 295,000 | 197,682 | |||||||||||||||||
Trademark | 20,000 | - | 20,000 | - | |||||||||||||||||
Total Goodwill | 4,878,828 | 662,384 | 4,878,828 | 662,384 | |||||||||||||||||
Franchise Rights | 20 | 6,580,034 | 174,335 | 6,580,034 | 90,786 | ||||||||||||||||
Total intangible assets | $ | 12,824,783 | $ | 1,608,838 | $ | 12,824,783 | $ | 1,516,908 | |||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||||||||||
2015 | $ | 282,057 | |||||||||||||||||||
2016 | 413,645 | ||||||||||||||||||||
2017 | 459,218 | ||||||||||||||||||||
2018 | 481,977 | ||||||||||||||||||||
2019 | 494,614 | ||||||||||||||||||||
Thereafter | 4,867,990 | ||||||||||||||||||||
Total | $ | 6,999,501 |
Note_10_Restructuring_and_Acqu1
Note 10 - Restructuring and Acquisition Related Charges (Tables) | 3 Months Ended | ||||
31-May-14 | |||||
Restructuring and Related Activities [Abstract] | ' | ||||
Schedule of Fresh-Start Adjustments [Table Text Block] | ' | ||||
2014 | |||||
Professional fees | $ | 104,876 | |||
Severance/transitional compensation | 16,550 | ||||
Other | 3,125 | ||||
Total | $ | 124,551 |
Note_1_Nature_of_Operations_an2
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||
31-May-14 | 31-May-13 | Jan. 14, 2013 | Jan. 17, 2014 | Jan. 17, 2014 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-13 | 31-May-14 | 31-May-14 | 31-May-14 | 31-May-14 | Feb. 20, 2014 | 31-May-14 | 31-May-13 | Feb. 28, 2013 | |
U-Swirl, Inc. [Member] | Yogli Mogli [Member] | Unrestricted Shares Of Stock [Member] | Unrestricted Shares Of Stock [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Restricted Stock Units (RSUs) [Member] | Subsequent Event [Member] | After Debt Conversion [Member] | Fuzzy Peach [Member] | U-Swirl, Inc. [Member] | U-Swirl, Inc. [Member] | U-Swirl, Inc. [Member] | ||||
Minimum [Member] | Maximum [Member] | Definitive Agreement to Sell Three Company Owned Cafe [Member] | U-Swirl, Inc. [Member] | ||||||||||||||
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | 40.00% |
Debt Instrument, Convertible, Number of Equity Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,100,000 | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Restaurants | ' | ' | ' | 1 | 4 | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | $4,250,000 | $2,150,000 | ' | ' | ' | ' | ' | ' | ' | ' | $481,000 | ' | ' | ' |
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued (in Shares) | ' | ' | ' | 4,000,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 349,000 | ' | ' | ' |
Proceeds from Other Deposits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | 214,323 | 142,808 | ' | ' | ' | 47,480 | 48,400 | 166,843 | ' | ' | ' | ' | ' | ' | 82,449 | 28,223 | ' |
Stock Issued During Period, Shares, Share-based Compensation, Gross (in Shares) | ' | ' | ' | ' | ' | 4,000 | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17.00% | 20.00% | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '6 years | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | ' | ' | ' | 2,981,018 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | ' | ' | ' | ' | '4 years 292 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | ' | ' | ' | ' | ' | ' | ' | 0 | 280,900 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Share-based Compensation, Gross | ' | ' | ' | ' | ' | ' | ' | ' | $3,437,950 | ' | ' | ' | ' | ' | ' | ' | ' |
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) | ' | ' | ' | ' | ' | ' | ' | ' | $12.24 | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_1_Nature_of_Operations_an3
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores | 31-May-14 |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 661 |
Company-Owned Stores [Member] | Open [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 6 |
Company-Owned Stores [Member] | Open [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 11 |
Company-Owned Stores [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 6 |
Company-Owned Stores [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 11 |
Franchise Stores - Domestic Stores [Member] | Sold, Not Yet Open [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 5 |
Franchise Stores - Domestic Stores [Member] | Open [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 206 |
Franchise Stores - Domestic Stores [Member] | Open [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 268 |
Franchise Stores - Domestic Stores [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 211 |
Franchise Stores - Domestic Stores [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 268 |
Franchise Stores - Domestic Kiosks [Member] | Open [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 6 |
Franchise Stores - Domestic Kiosks [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 6 |
International License Stores (Member) | Sold, Not Yet Open [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 1 |
International License Stores (Member) | Open [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 69 |
International License Stores (Member) | Open [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 6 |
International License Stores (Member) | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 70 |
International License Stores (Member) | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 6 |
Cold Stone Creamery - Co-Branded [Member] | Sold, Not Yet Open [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 5 |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 65 |
Cold Stone Creamery - Co-Branded [Member] | Parent Company [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 70 |
Company-Owned Stores - Co-Branded [Member] | Open [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 2 |
Company-Owned Stores - Co-Branded [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 2 |
Franchise Stores - Co-branded [Member] | Open [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 11 |
Franchise Stores - Co-branded [Member] | U-Swirl, Inc. [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 11 |
Sold, Not Yet Open [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 11 |
Open [Member] | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Number of Stores [Line Items] | ' |
Company-owned stores | 650 |
Note_1_Nature_of_Operations_an4
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Summary of Stock Option Transactions for Common Stock (USD $) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Summary of Stock Option Transactions for Common Stock [Abstract] | ' | ' |
Outstanding stock options as of February 28: | 155,880 | 270,945 |
Outstanding stock options as of May 31: | 22,640 | 182,220 |
Weighted average exercise price (in Dollars per share) | $11.57 | $7.93 |
Weighted average remaining contractual term (in years) | '1 year 21 days | '1 year 62 days |
Exercised | -133,240 | ' |
Cancelled/forfeited | ' | -88,725 |
Note_1_Nature_of_Operations_an5
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Summary of Non-Vested Restricted Stock Unit Transactions for Common Stock (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Restricted Stock Units (RSUs) [Member] | ' | ' |
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details) - Summary of Non-Vested Restricted Stock Unit Transactions for Common Stock [Line Items] | ' | ' |
Outstanding non-vested restricted stock units as of February 28: | 295,040 | 57,030 |
Outstanding non-vested restricted stock units as of May 31: | 287,220 | 330,110 |
Weighted average grant date fair value (in Dollars per share) | $12.16 | $11.78 |
Weighted average remaining vesting period (in years) | '4 years 306 days | '5 years 62 days |
Granted | 0 | 280,900 |
Vested | -7,820 | -7,820 |
Note_2_Earnings_Per_Share_Deta
Note 2 - Earnings Per Share (Details) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Earnings Per Share [Abstract] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 12,936 | 101,661 |
Note_3_Inventories_Details_Inv
Note 3 - Inventories (Details) - Inventories (USD $) | 31-May-14 | Feb. 28, 2014 |
Inventories [Abstract] | ' | ' |
Ingredients and supplies | $2,651,648 | $2,531,413 |
Finished candy | 1,406,257 | 1,761,131 |
U-Swirl, Inc. food and packaging | 159,184 | 118,219 |
Total inventories | $4,217,089 | $4,410,763 |
Note_4_Property_and_Equipment_2
Note 4 - Property and Equipment, Net (Details) - Property and Equipment (USD $) | 31-May-14 | Feb. 28, 2014 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, and equpment | $20,054,377 | $19,984,989 |
Less accumulated depreciation | 11,720,183 | 11,496,791 |
Property and equipment, net | 8,334,194 | 8,488,198 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, and equpment | 513,618 | 513,618 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, and equpment | 4,775,466 | 4,775,466 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, and equpment | 10,578,325 | 9,518,832 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, and equpment | 1,293,647 | 1,324,846 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, and equpment | 2,478,086 | 2,489,782 |
Transportation Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, and equpment | 415,235 | 394,508 |
Asset under Construction [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant, and equpment | ' | $967,937 |
Note_5_Stockholders_Equity_Det
Note 5 - Stockholders' Equity (Details) (USD $) | 0 Months Ended | |
Mar. 14, 2014 | Jun. 13, 2014 | |
Subsequent Event [Member] | ||
Note 5 - Stockholders' Equity (Details) [Line Items] | ' | ' |
Common Stock, Dividends, Per Share, Cash Paid | $0.11 | $0.11 |
Note_6_Supplemental_Cash_Flow_2
Note 6 - Supplemental Cash Flow Information (Details) - Supplemental Cash Flow Information (USD $) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Interest, net | $47,093 | ($8,606) |
Income taxes | 57,037 | 594,336 |
Non-Cash Operating Activities Accrued Inventory | 173,245 | 215,703 |
Non-Cash Financing Activities Dividend payable | $682,090 | $668,832 |
Note_7_Operating_Segments_Deta
Note 7 - Operating Segments (Details) (USD $) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Note 7 - Operating Segments (Details) [Line Items] | ' | ' |
Number of Reportable Segments | 5 | ' |
Numbers Of Major Customers | 1 | ' |
Revenues | $10,322,206 | $10,177,862 |
Major Customer (Member) | ' | ' |
Note 7 - Operating Segments (Details) [Line Items] | ' | ' |
Revenues | $1,600,000 | $1,800,000 |
Note_7_Operating_Segments_Deta1
Note 7 - Operating Segments (Details) - Segment Information (USD $) | 3 Months Ended | ||
31-May-14 | 31-May-13 | Feb. 28, 2014 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | $10,322,206 | $10,177,862 | ' |
Total assets | 39,598,796 | ' | 37,465,539 |
Total depreciation & amortization | 374,412 | 235,756 | ' |
Interesegment Revenue (Member) | Franchising [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | ' | -613 | ' |
Interesegment Revenue (Member) | Manufacturing [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | -440,754 | -320,590 | ' |
Interesegment Revenue (Member) | Total (Member) | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | -440,754 | -321,203 | ' |
External Customers (Member) | Franchising [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 1,660,016 | 1,447,651 | ' |
External Customers (Member) | Manufacturing [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 6,285,302 | 5,870,072 | ' |
External Customers (Member) | Retail [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 515,138 | 502,791 | ' |
External Customers (Member) | U-Swirl, Inc. [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 1,717,406 | 2,501,692 | ' |
External Customers (Member) | Total (Member) | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 10,177,862 | 10,322,206 | ' |
Operating Segments [Member] | Franchising [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total depreciation & amortization | 8,593 | 10,049 | ' |
Operating Segments [Member] | Manufacturing [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total depreciation & amortization | 72,373 | 90,160 | ' |
Operating Segments [Member] | Retail [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total depreciation & amortization | 14,740 | 9,449 | ' |
Operating Segments [Member] | U-Swirl, Inc. [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total depreciation & amortization | 105,578 | 226,100 | ' |
Operating Segments [Member] | Other Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total depreciation & amortization | 34,472 | 38,654 | ' |
Operating Segments [Member] | Total (Member) | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Total depreciation & amortization | 235,756 | 374,412 | ' |
Franchising [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 1,660,016 | 1,448,264 | ' |
Segment profit (loss) | 848,444 | 636,183 | ' |
Total assets | 1,334,534 | 1,256,360 | ' |
Capital expenditures | 8,451 | ' | ' |
Manufacturing [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 6,726,056 | 6,190,662 | ' |
Segment profit (loss) | 1,748,467 | 1,481,664 | ' |
Total assets | 10,035,858 | 11,103,741 | ' |
Capital expenditures | 31,481 | 61,105 | ' |
Retail [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 515,138 | 502,791 | ' |
Segment profit (loss) | -44,859 | -67,115 | ' |
Total assets | 1,277,606 | 1,254,183 | ' |
Capital expenditures | 5,611 | 16,088 | ' |
U-Swirl, Inc. [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 1,717,406 | 2,501,692 | ' |
Segment profit (loss) | 168,079 | 200,360 | ' |
Total assets | 3,357,523 | 17,345,621 | ' |
Capital expenditures | ' | 39,673 | ' |
Other Segments [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Segment profit (loss) | -889,438 | -953,156 | ' |
Total assets | 7,465,193 | 8,638,891 | ' |
Capital expenditures | 12,252 | 2,327 | ' |
Total (Member) | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenues | 10,618,616 | 10,643,409 | ' |
Segment profit (loss) | 1,830,693 | 1,297,936 | ' |
Total assets | 23,470,714 | 39,598,796 | ' |
Capital expenditures | $57,795 | $119,193 | ' |
Note_8_Goodwill_and_Intangible2
Note 8 - Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | |
31-May-14 | 31-May-13 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' |
Amortization | $91,930 | $159 |
Note_8_Goodwill_and_Intangible3
Note 8 - Goodwill and Intangible Assets (Details) - Intangible Assets (Under Review) (USD $) | 31-May-14 | Feb. 28, 2014 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | 31-May-14 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | 31-May-14 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | 31-May-14 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | 31-May-14 | 31-May-14 | Feb. 28, 2014 | 31-May-14 | 31-May-14 |
Company Stores Goodwill [Member] | Company Stores Goodwill [Member] | Franchising Goodwill [Member] | Franchising Goodwill [Member] | Manufacturing Segment-Goodwill [Member] | Manufacturing Segment-Goodwill [Member] | Trademarks [Member] | Trademarks [Member] | Franchise Rights [Member] | Franchise Rights [Member] | Franchise Rights [Member] | Franchise Rights [Member] | Store Design [Member] | Store Design [Member] | Store Design [Member] | Store Design [Member] | Packaging Licenses [Member] | Packaging Licenses [Member] | Packaging Licenses [Member] | Packaging Licenses [Member] | Packaging Design [Member] | Packaging Design [Member] | Packaging Design [Member] | Packaging Design [Member] | Trademarks and Non-Competition Agreement [Member] | Trademarks and Non-Competition Agreement [Member] | Trademarks and Non-Competition Agreement [Member] | Trademarks and Non-Competition Agreement [Member] | |||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||||||||
Intangible assets subject to amortization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets subject to amortization, Amortization Period (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '10 years | ' | ' | '3 years | '5 years | ' | ' | '10 years | '10 years | ' | ' | '5 years | '20 years |
Intangible assets subject to amortization, Gross Carrying Value | $1,365,921 | $1,365,921 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $220,778 | $220,778 | ' | ' | $120,830 | $120,830 | ' | ' | $430,973 | $430,973 | ' | ' | $593,340 | $593,340 | ' | ' |
Intangible assets subject to amortization, Accumulated Amortization | 772,119 | 763,738 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207,027 | 206,652 | ' | ' | 120,830 | 120,830 | ' | ' | 430,973 | 430,973 | ' | ' | 13,289 | 5,283 | ' | ' |
Franchising segment- | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets not subject to amortization, Gross Carrying Value | 4,878,828 | 4,878,828 | 1,099,328 | 1,099,328 | 3,464,500 | 3,464,500 | 295,000 | 295,000 | 20,000 | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets subject to amortization, Accumulated Amortization | 662,384 | 662,384 | 267,020 | 267,020 | 197,682 | 197,682 | 197,682 | 197,682 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Franchise Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,580,034 | 6,580,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Franchise Rights | 6,405,699 | 6,489,248 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Franchise Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 174,335 | 90,786 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intangible assets | 12,824,783 | 12,824,783 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total intangible assets | $1,608,838 | $1,516,908 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_8_Goodwill_and_Intangible4
Note 8 - Goodwill and Intangible Assets (Details) - Estimated Future Amortization Expense (USD $) | 31-May-14 |
Estimated Future Amortization Expense [Abstract] | ' |
2015 | $282,057 |
2016 | 413,645 |
2017 | 459,218 |
2018 | 481,977 |
2019 | 494,614 |
Thereafter | 4,867,990 |
Total | $6,999,501 |
Note_9_Related_Party_Transacti1
Note 9 - Related Party Transactions (Details) (USD $) | 31-May-14 | Feb. 28, 2014 |
Note 9 - Related Party Transactions (Details) [Line Items] | ' | ' |
Accounts Receivable, Related Parties | ' | $1,100 |
U-Swirl, Inc. [Member] | ' | ' |
Note 9 - Related Party Transactions (Details) [Line Items] | ' | ' |
Due from Related Parties | 13,628 | 11,989 |
Deferred Revenue | $30,000 | $30,000 |
Note_10_Restructuring_and_Acqu2
Note 10 - Restructuring and Acquisition Related Charges (Details) (USD $) | 3 Months Ended | |||
31-May-14 | Jan. 17, 2014 | Jan. 17, 2014 | Feb. 20, 2014 | |
U-Swirl, Inc. [Member] | Yogli Mogli [Member] | Fuzzy Peach [Member] | ||
Note 10 - Restructuring and Acquisition Related Charges (Details) [Line Items] | ' | ' | ' | ' |
Number of Restaurants | ' | 1 | 4 | 17 |
Restructuring Charges (in Dollars) | $124,551 | ' | ' | ' |
Note_10_Restructuring_and_Acqu3
Note 10 - Restructuring and Acquisition Related Charges (Details) - Restructuring Charges Incurred (USD $) | 3 Months Ended |
31-May-14 | |
Fresh-Start Adjustment [Line Items] | ' |
Restructuring Charges | $124,551 |
Restructuring: Professional Fees (Member) | ' |
Fresh-Start Adjustment [Line Items] | ' |
Restructuring Charges | 104,876 |
Employee Severance [Member] | ' |
Fresh-Start Adjustment [Line Items] | ' |
Restructuring Charges | 16,550 |
Other Restructuring [Member] | ' |
Fresh-Start Adjustment [Line Items] | ' |
Restructuring Charges | $3,125 |