Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Nov. 30, 2017 | Feb. 23, 2018 | May 31, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | BAB, INC. | ||
Entity Central Index Key | 1,123,596 | ||
Trading Symbol | babb | ||
Current Fiscal Year End Date | --11-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 7,263,508 | ||
Entity Public Float | $ 3,252,482 | ||
Document Type | 10-K | ||
Document Period End Date | Nov. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Nov. 30, 2017 | Nov. 30, 2016 |
Current Assets | ||
Cash | $ 792,655 | $ 907,116 |
Restricted cash | 693,425 | 598,887 |
Receivables | ||
Trade accounts and notes receivable (net of allowance for doubtful accounts of $19,438 in 2017 and $25,319 in 2016 ) | 56,342 | 50,844 |
Marketing fund contributions receivable from franchisees and stores | 12,635 | 10,238 |
Inventories | 19,761 | 16,130 |
Prepaid expenses and other current assets | 85,770 | 81,021 |
Total Current Assets | 1,660,588 | 1,664,236 |
Property, plant and equipment (net of accumulated depreciation of $154,762 in 2017 and $152,334 in 2016) | 5,515 | 1,226 |
Trademarks | 459,637 | 455,182 |
Goodwill | 1,493,771 | 1,493,771 |
Definite lived intangible assets (net of accumulated amortization of $123,398 in 2017 and $114,290 in 2016) | 9,108 | |
Deferred tax asset | 248,000 | 248,000 |
Total Noncurrent Assets | 2,206,923 | 2,207,287 |
Total Assets | 3,867,511 | 3,871,523 |
Current Liabilities | ||
Accounts payable | 43,741 | 43,383 |
Accrued expenses and other current liabilities | 243,397 | 365,169 |
Unexpended marketing fund contributions | 706,856 | 609,380 |
Deferred franchise fee revenue | 40,000 | |
Deferred licensing revenue | 18,155 | 49,226 |
Total Current Liabilities | 1,012,149 | 1,107,158 |
Total Liabilities | 1,012,149 | 1,107,158 |
Stockholders' Equity | ||
Preferred stock | ||
Common stock -$.001 par value; 15,000,000 shares authorized; 8,466,953 shares issued and 7,263,508 shares outstanding as of November 30, 2017 and November 30, 2016 | 13,508,257 | 13,508,257 |
Additional paid-in capital | 987,034 | 987,034 |
Treasury stock | (222,781) | (222,781) |
Accumulated deficit | (11,417,148) | (11,508,145) |
Total Stockholders' Equity | 2,855,362 | 2,764,365 |
Total Liabilities and Stockholders' Equity | 3,867,511 | 3,871,523 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Nov. 30, 2017 | Nov. 30, 2016 |
Trade accounts and notes receivable, allowance for doubtful accounts | $ 19,438 | $ 25,319 |
Property, plant and equipment, accumulated depreciation | 154,762 | 152,334 |
Definite lived intangible assets, accumulated amortization | $ 123,398 | $ 114,290 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 4,000,000 | 4,000,000 |
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) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 8,466,953 | 8,466,953 |
Common stock, shares outstanding (in shares) | 7,263,508 | 7,263,508 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
REVENUES | ||
Royalty fees from franchised stores | $ 1,726,976 | $ 1,744,640 |
Franchise fees | 50,000 | 113,000 |
Licensing fees and other income | 443,917 | 528,527 |
Total Revenues | 2,220,893 | 2,386,167 |
Selling, general and administrative expenses: | ||
Payroll and payroll-related expenses | 1,017,435 | 1,118,356 |
Occupancy | 177,592 | 174,757 |
Advertising and promotion | 24,065 | 40,650 |
Professional service fees | 130,323 | 143,755 |
Travel | 41,271 | 42,188 |
Employee benefit expense | 158,646 | 156,125 |
Depreciation and amortization | 11,536 | 20,152 |
Other | 200,459 | 230,463 |
Total Operating Expenses | 1,761,327 | 1,926,446 |
Income from operations | 459,566 | 459,721 |
Interest income | 107 | 502 |
Interest expense | (1,323) | |
Income before provision for income taxes | 459,673 | 458,900 |
Provision for income taxes | ||
Current tax expense | 5,500 | 9,500 |
Net Income | $ 454,173 | $ 449,400 |
Earnings per share - Basic and Diluted (in dollars per share) | $ 0.06 | $ 0.06 |
Weighted average shares outstanding - Basic and Diluted (in shares) | 7,263,508 | 7,263,508 |
Cash distributions declared per share (in dollars per share) | $ 0.05 | $ 0.06 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Nov. 30, 2015 | 8,466,953 | 1,203,445 | |||
Balance at Nov. 30, 2015 | $ 13,508,257 | $ 987,034 | $ (222,781) | $ (11,521,735) | $ 2,750,775 |
Dividends Declared | (435,810) | (435,810) | |||
Net Income | 449,400 | 449,400 | |||
Balance (in shares) at Nov. 30, 2016 | 8,466,953 | 1,203,445 | |||
Balance at Nov. 30, 2016 | $ 13,508,257 | 987,034 | $ (222,781) | (11,508,145) | 2,764,365 |
Dividends Declared | (363,176) | (363,176) | |||
Net Income | 454,173 | 454,173 | |||
Balance (in shares) at Nov. 30, 2017 | 8,466,953 | 1,203,445 | |||
Balance at Nov. 30, 2017 | $ 13,508,257 | $ 987,034 | $ (222,781) | $ (11,417,148) | $ 2,855,362 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Operating activities | ||
Net income | $ 454,173 | $ 449,400 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 11,536 | 20,152 |
Provision for uncollectible accounts, net of recoveries | (5,881) | (7,733) |
Changes in: | ||
Trade accounts receivable and notes receivable | 383 | 31,968 |
Restricted cash | (94,538) | (178,148) |
Marketing fund contributions receivable | (2,397) | 10,873 |
Inventories | (3,631) | 10,694 |
Prepaid expenses and other | (4,748) | 2,775 |
Accounts payable | 358 | 30,328 |
Accrued liabilities | (121,772) | 53,253 |
Unexpended marketing fund contributions | 97,476 | 167,275 |
Deferred revenue | (71,071) | (47,857) |
Net Cash Provided by Operating Activities | 259,888 | 542,980 |
Investing activities | ||
Capitalization of trademark renewals | (4,455) | (4,023) |
Purchase of equipment | (6,718) | |
Net Cash Used In Investing Activities | (11,173) | (4,023) |
Financing activities | ||
Repayment of borrowings | (33,413) | |
Cash distributions/dividends | (363,176) | (435,810) |
Net Cash Used In Financing Activities | (363,176) | (469,223) |
Net (Decrease)/Increase in Cash | (114,461) | 69,734 |
Cash, Beginning of Period | 907,116 | 837,382 |
Cash, End of Period | 792,655 | 907,116 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 1,323 | |
Income taxes paid | $ 21,091 | $ 8,171 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | Note 1 BAB , Inc (“the Company”) has three December 2, 1992, 1997 1996 1995, none. 1999, 2009 no The Company was incorporated under the laws of the State of Delaware on July 12, 2000. The Company currently franchises and licenses bagel and muffin retail units under the BAB, MFM and SD trade names. At November 30, 2017, 82 3 23 . There are 2 not |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2 Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition Royalty fees from franchised stores represent a 5% period-end. Estimates are utilized in certain instances where actual numbers have not The Company recognizes franchise fee revenue on the store ’s opening. Direct costs associated with the sale of franchises are deferred until the franchise fee revenue is recognized. These costs include site approval, construction approval, commissions, blueprints and training costs. The Company will recognize revenue upon a signed and completed franchise agreement for a Master Franchise Agreement (“MFA”). The revenue for a MFA is a nonrefundable fee and the amount of the fee is dependent on the area covered by the MFA. In addition there will be ongoing royalty fees as determined by the contract. Big Apple Bagels ®, SweetDuet Frozen Yogurt and Gourmet Muffins® and My Favorite Muffin® operating units, licensed units and unopened stores for which a Franchise Agreement has been executed, are as follows: 20 17 2 016 Operating Units Franchise Owned 82 85 Licensed Units 3 3 85 88 Unopened stores with Franchise Agreements: 2 2 Total operating units and units with Franchise Agreements 87 90 License fees and other income primarily consist of license fees, Sign Shop revenues and defaulted and terminated franchise contract revenues. Revenue is recorded on an accrual basis. Actual amounts are used to record the majority of license fees although at times it is necessary to use estimates. Revenues and expenses recorded for the Sign Shop, as well as defaulted and terminated franchise contract revenue, are actual amounts. Segments Accounting standards have established annual reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. The Company’s operations were a single reportable segment and an international segment. The international segment operations are immaterial. Marketing Fund A Marketing Fund has been established for BAB, MFM and SD. Franchised stores are required to contribute a fixed percentage of their net retail sales to the Marketing Fund. Liabilities for unexpended funds received from franchisees are included as a separate line item in accrued expenses and Marketing Fund cash accounts are included in restricted funds in the accompanying Balance Sheet. The Marketing Fund also derives revenues from rebates paid by certain vendors on the sale of BAB and MFM licensed products to franchisees. Cash As of November 30, 20 17 2016, $693,000 $599,000, The FDIC maximum insurance on all interest and noninterest bearing checking accounts is $250,000 not Accounts and Notes Receivable Receivables are carried at original invoice amount less estimates for doubtful accounts. Management determines the allowance for doubtful accounts by reviewing and identifying troubled accounts and by using historical collection experience. A receivable is considered to be past due if any portion of the receivable balance is outstanding 90 Inventories Inventories are valued at the lower of cost or market under the first first Property, Plant and Equipment Property and equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 3 7 10 Goodwill and Other Intangible Assets Accounting Standard Codification (“ASC”) 350 no The Company tests goodwill that is not The Company has elected to conduct its annual test during the first February 28, 2017, not not February 28, 2017, not Management reviewed the qualitative assessment conducted during the first 2017 not November 30, 2017. The net book value of goodwill and intangible assets with indefinite and definite lives are as follows: Goodwil l Trademark s Definite Lived Intangible s Tota l Net Balance as of November 30, 201 5 $ 1,493,771 $ 455,182 $ 22,987 $ 1,971,940 Addition s - - 4,022 4,022 Amortization expens e - - (17,901 ) (17,901 ) Net Balance as of November 30, 201 6 $ 1,493,771 $ 455,182 $ 9,108 $ 1,958,061 Addition s - 4,455 - 4,455 Amortization expens e - - (9,108 ) (9,108 ) Net Balance as of November 30, 201 7 $ 1,493,771 $ 459,637 $ - $ 1,953,408 Definit e lived intangible assets were fully amortized during fiscal 2017. In January 2017, 2017 04, 350 2 ’s fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this ASU are effective for the annual reporting periods beginning after December 15, 2019, February 28, 2017. Advertising and Promotion Costs The Company expenses advertising and promotion costs as incurred. Advertising and promotion expense was $24,000 $41,000 2017 2016, Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The benefits from net operating losses carried forward may not not The Company files a consolidated U.S. income tax return and tax returns in various state jurisdictions. Review of the Company ’s possible tax uncertainties as of November 30, 2017 not not November 30, 2017 The Company ’s income tax returns for the years ending November 30, 2014, 2015 2016 three 3. Earnings Per Share The Company computes earnings per share (“EPS”) under ASC 260 201 7 201 6 Numerator : Net income available to common shareholder s $ 454,173 $ 449,400 Denominator : Weighted average outstanding share s Basic and dilute d 7,263,508 7,263,508 Earnings per Share - Basic and dilute d $ 0.06 $ 0.06 At November 30, 201 7 2016, no not Stock -Based Compensation T he Company recognizes compensation cost using a fair-value based method for all share-based payments granted after November 30, 2006, November 30, 2006 no 2017 2016. Fair Value of Financial Instruments The carrying amounts of financial instruments including cash, accounts receivable, notes receivable, accounts payable and short-term debt approximate their fair values because of the relatively short maturity of these instruments. The carrying value of long-term debt, including the current portion, approximate fair value based upon market prices for the same or similar instruments. Recent Accounting Pronouncements Revenue from Contracts with Customers, ASU 2014 09 ’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. The standard requires five The standard requires that the transaction price received from customers be allocated to each separate and distinct performance obligation. The transaction price attributable to each separate and distinct performance obligation is then recognized as the performance obligations are satisfied. We are currently evaluating the standards to determine whether the services we provide related to upfront fees we receive from franchisees such as initial or renewal fees contain separate and distinct performance obligations from the franchise right. If we determine these services are not may ten We are currently evaluating whether the standards will have an impact on transactions currently not not 2 The Company will adopt ASU 2014 09 November 30, 2019. On February 25, 2016, No. 2016 02, December 15, 2018. 2016 02 November 30, 20 20 In March 2016, 2016 04, Liabilities – Extinguishments of Liabilities (Subtopic 405 20 not December 15, 2017, not Management does not not November 30, 201 7 |
Note 3 - Income Taxes
Note 3 - Income Taxes | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 3 – Income Taxes The components of the Company ’s current (benefit)/provision for income taxes are as follows: 201 7 201 6 Curren t Federa l $ 4,000 $ 8,000 State 1,500 1,500 Deferre d - - Total $ 5,500 $ 9,500 The effective tax rate used to compute income tax expense and deferred tax assets and liabilities is a federal rate of 34% 5.68%, A reconciliation of the expected income tax expense to the recorded income tax expense is as follows for the years ended November 30: 201 7 201 6 Federal income tax provision computed at federal statutory rat e $ 157,327 $ 157,883 State income taxes, net of federal tax provisio n 22,905 22,986 Other adjustment s 8,504 14,906 Change in valuation allowance and expiration of certain net operating losses (183,236 ) (186,275 ) Income Tax Provision $ 5,500 $ 9,500 The components of the Company ’s deferred tax assets and liabilities for federal and state income taxes consist of the following: 201 7 201 6 Deferred revenu e $ 7,071 $ 34,754 Deferred rent 7,813 15,867 Marketing Fund net contribution s 270,089 233,266 Allowance for doubtful accounts and notes receivabl e 7,569 9,862 Accrued expense s 55,946 57,468 Net operating loss carryforward s 1,009,553 1,186,361 Valuation allowanc e (457,394 ) (641,170 ) Total Deferred Income Tax Asse t $ 900,647 $ 896,408 Depreciation and amortizatio n $ (652,647 ) $ (648,408 ) Total Deferred Income Tax Liabilitie s $ (652,647 ) $ (648,408 ) Total Net Deferred Tax Asse t $ 248,000 $ 248,000 On December 22, 2017 35% 21%. not first 2018. As of November 30, 2017 2018 2029 $2,592,000. $457,000 $641,000 November 30, 2017 2016, not not |
Note 4 - Long-term Debt
Note 4 - Long-term Debt | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | No te 4 On September 6, 2002, $35,000, 4.75% 15 $38 6,000. 1,380,040 October 1, 2016, no November 30, 2017 2016. |
Note 5 - Stockholder's Equity
Note 5 - Stockholder's Equity | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 5 ’ Equity On December 5, 201 7, $0.01 $0.01 January 12, 2018. The Board of Directors declared a $0.01 March 15, June 7 September 7, 2017, April 20, July 13, October 13, 2017, On December 5, 2016, $0.01 $.01 January 9, 2017. The Board of Directors declared a cash distribution/dividend on March 3, June 6 September 6, 2016 $0.01 April 13, July 11, October 12, 2016, On December 3, 2015, $0.01 $.02 January 6, 2016 On May 6, 2013, one May 13, 2013. one one $0.90 one May 6, 2013, The Board adopted the Rights Agreement to protect stockholders from coercive or otherwise unfair takeover tactics. In general terms, it works by imposing a significant penalty upon any person or group that acquires 15% 20% 13G may not Full details about the Rights Plan are contained in a Form 8 May 7, 2013. On June 18, 2014 August 18, 2015 fifth May 22, 2017 seventh |
Note 6 - Stock Options
Note 6 - Stock Options | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 6 In May 2001, “Plan”). The Plan reserved 1,400,000 November 30, 2009. May 25, 2011. Under the Plan, the exercise price of each option equals the market price of the Company’s stock on the date of grant. The options granted vary in vesting from immediate to a vesting period over five 10 one November 28, 2016. no November 30, 2017. During fiscal 20 17 2016 no no November 28, 2016 two November 30 201 7 201 6 Option s Weighted average exercise pric e Option s Weighted average exercise pric e Options outstanding at beginning of yea r - $ - 237,500 $ 1.275 Forfeited or expire d - - (237,500 ) 1.275 Outstanding at end of yea r - $ - - $ - |
Note 7 - Commitments
Note 7 - Commitments | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 7 The Company rents its Corporate office under a lease which requires it to pay base rent, real estate taxes, insurance and general repairs and maintenance. The lease is through September 30, 2018 November 30, 2017 2016 $174,000 $171,000, November 30, 2017, $115,197 November 30, 2018. |
Note 8 - Employee Benefit Plan
Note 8 - Employee Benefit Plan | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 8 – Employee Benefit Plan The Company maintains a qualified 401 2015, 401 January 1, 2015. 4% may 201 7 2016 $37,000 $44,000, no 2017 2016. |
Note 9 - Contingencies
Note 9 - Contingencies | 12 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | Note 9 – Contingencies We are subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business. While the outcome of such proceedings or claims cannot be predicted with certainty, management does not We know of no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Royalty fees from franchised stores represent a 5% period-end. Estimates are utilized in certain instances where actual numbers have not The Company recognizes franchise fee revenue on the store ’s opening. Direct costs associated with the sale of franchises are deferred until the franchise fee revenue is recognized. These costs include site approval, construction approval, commissions, blueprints and training costs. The Company will recognize revenue upon a signed and completed franchise agreement for a Master Franchise Agreement (“MFA”). The revenue for a MFA is a nonrefundable fee and the amount of the fee is dependent on the area covered by the MFA. In addition there will be ongoing royalty fees as determined by the contract. Big Apple Bagels ®, SweetDuet Frozen Yogurt and Gourmet Muffins® and My Favorite Muffin® operating units, licensed units and unopened stores for which a Franchise Agreement has been executed, are as follows: 20 17 2 016 Operating Units Franchise Owned 82 85 Licensed Units 3 3 85 88 Unopened stores with Franchise Agreements: 2 2 Total operating units and units with Franchise Agreements 87 90 License fees and other income primarily consist of license fees, Sign Shop revenues and defaulted and terminated franchise contract revenues. Revenue is recorded on an accrual basis. Actual amounts are used to record the majority of license fees although at times it is necessary to use estimates. Revenues and expenses recorded for the Sign Shop, as well as defaulted and terminated franchise contract revenue, are actual amounts. |
Segment Reporting, Policy [Policy Text Block] | Segments Accounting standards have established annual reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. The Company’s operations were a single reportable segment and an international segment. The international segment operations are immaterial. |
Cooperative Advertising Policy [Policy Text Block] | Marketing Fund A Marketing Fund has been established for BAB, MFM and SD. Franchised stores are required to contribute a fixed percentage of their net retail sales to the Marketing Fund. Liabilities for unexpended funds received from franchisees are included as a separate line item in accrued expenses and Marketing Fund cash accounts are included in restricted funds in the accompanying Balance Sheet. The Marketing Fund also derives revenues from rebates paid by certain vendors on the sale of BAB and MFM licensed products to franchisees. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash As of November 30, 20 17 2016, $693,000 $599,000, The FDIC maximum insurance on all interest and noninterest bearing checking accounts is $250,000 not |
Receivables, Policy [Policy Text Block] | Accounts and Notes Receivable Receivables are carried at original invoice amount less estimates for doubtful accounts. Management determines the allowance for doubtful accounts by reviewing and identifying troubled accounts and by using historical collection experience. A receivable is considered to be past due if any portion of the receivable balance is outstanding 90 |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or market under the first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property and equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Estimated useful lives are 3 7 10 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets Accounting Standard Codification (“ASC”) 350 no The Company tests goodwill that is not The Company has elected to conduct its annual test during the first February 28, 2017, not not February 28, 2017, not Management reviewed the qualitative assessment conducted during the first 2017 not November 30, 2017. The net book value of goodwill and intangible assets with indefinite and definite lives are as follows: Goodwil l Trademark s Definite Lived Intangible s Tota l Net Balance as of November 30, 201 5 $ 1,493,771 $ 455,182 $ 22,987 $ 1,971,940 Addition s - - 4,022 4,022 Amortization expens e - - (17,901 ) (17,901 ) Net Balance as of November 30, 201 6 $ 1,493,771 $ 455,182 $ 9,108 $ 1,958,061 Addition s - 4,455 - 4,455 Amortization expens e - - (9,108 ) (9,108 ) Net Balance as of November 30, 201 7 $ 1,493,771 $ 459,637 $ - $ 1,953,408 Definit e lived intangible assets were fully amortized during fiscal 2017. In January 2017, 2017 04, 350 2 ’s fair value. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The amendments in this ASU are effective for the annual reporting periods beginning after December 15, 2019, February 28, 2017. |
Advertising Costs, Policy [Policy Text Block] | Advertising and Promotion Costs The Company expenses advertising and promotion costs as incurred. Advertising and promotion expense was $24,000 $41,000 2017 2016, |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The benefits from net operating losses carried forward may not not The Company files a consolidated U.S. income tax return and tax returns in various state jurisdictions. Review of the Company ’s possible tax uncertainties as of November 30, 2017 not not November 30, 2017 The Company ’s income tax returns for the years ending November 30, 2014, 2015 2016 three 3. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share The Company computes earnings per share (“EPS”) under ASC 260 201 7 201 6 Numerator : Net income available to common shareholder s $ 454,173 $ 449,400 Denominator : Weighted average outstanding share s Basic and dilute d 7,263,508 7,263,508 Earnings per Share - Basic and dilute d $ 0.06 $ 0.06 At November 30, 201 7 2016, no not |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock -Based Compensation T he Company recognizes compensation cost using a fair-value based method for all share-based payments granted after November 30, 2006, November 30, 2006 no 2017 2016. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The carrying amounts of financial instruments including cash, accounts receivable, notes receivable, accounts payable and short-term debt approximate their fair values because of the relatively short maturity of these instruments. The carrying value of long-term debt, including the current portion, approximate fair value based upon market prices for the same or similar instruments. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Revenue from Contracts with Customers, ASU 2014 09 ’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. The standard requires five The standard requires that the transaction price received from customers be allocated to each separate and distinct performance obligation. The transaction price attributable to each separate and distinct performance obligation is then recognized as the performance obligations are satisfied. We are currently evaluating the standards to determine whether the services we provide related to upfront fees we receive from franchisees such as initial or renewal fees contain separate and distinct performance obligations from the franchise right. If we determine these services are not may ten We are currently evaluating whether the standards will have an impact on transactions currently not not 2 The Company will adopt ASU 2014 09 November 30, 2019. On February 25, 2016, No. 2016 02, December 15, 2018. 2016 02 November 30, 20 20 In March 2016, 2016 04, Liabilities – Extinguishments of Liabilities (Subtopic 405 20 not December 15, 2017, not Management does not not November 30, 201 7 |
Note 2 - Summary of Significa17
Note 2 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Franchisor Disclosure [Table Text Block] | 20 17 2 016 Operating Units Franchise Owned 82 85 Licensed Units 3 3 85 88 Unopened stores with Franchise Agreements: 2 2 Total operating units and units with Franchise Agreements 87 90 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Goodwil l Trademark s Definite Lived Intangible s Tota l Net Balance as of November 30, 201 5 $ 1,493,771 $ 455,182 $ 22,987 $ 1,971,940 Addition s - - 4,022 4,022 Amortization expens e - - (17,901 ) (17,901 ) Net Balance as of November 30, 201 6 $ 1,493,771 $ 455,182 $ 9,108 $ 1,958,061 Addition s - 4,455 - 4,455 Amortization expens e - - (9,108 ) (9,108 ) Net Balance as of November 30, 201 7 $ 1,493,771 $ 459,637 $ - $ 1,953,408 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 201 7 201 6 Numerator : Net income available to common shareholder s $ 454,173 $ 449,400 Denominator : Weighted average outstanding share s Basic and dilute d 7,263,508 7,263,508 Earnings per Share - Basic and dilute d $ 0.06 $ 0.06 |
Note 3 - Income Taxes (Tables)
Note 3 - Income Taxes (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 201 7 201 6 Curren t Federa l $ 4,000 $ 8,000 State 1,500 1,500 Deferre d - - Total $ 5,500 $ 9,500 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 201 7 201 6 Federal income tax provision computed at federal statutory rat e $ 157,327 $ 157,883 State income taxes, net of federal tax provisio n 22,905 22,986 Other adjustment s 8,504 14,906 Change in valuation allowance and expiration of certain net operating losses (183,236 ) (186,275 ) Income Tax Provision $ 5,500 $ 9,500 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 201 7 201 6 Deferred revenu e $ 7,071 $ 34,754 Deferred rent 7,813 15,867 Marketing Fund net contribution s 270,089 233,266 Allowance for doubtful accounts and notes receivabl e 7,569 9,862 Accrued expense s 55,946 57,468 Net operating loss carryforward s 1,009,553 1,186,361 Valuation allowanc e (457,394 ) (641,170 ) Total Deferred Income Tax Asse t $ 900,647 $ 896,408 Depreciation and amortizatio n $ (652,647 ) $ (648,408 ) Total Deferred Income Tax Liabilitie s $ (652,647 ) $ (648,408 ) Total Net Deferred Tax Asse t $ 248,000 $ 248,000 |
Note 6 - Stock Options (Tables)
Note 6 - Stock Options (Tables) | 12 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | 201 7 201 6 Option s Weighted average exercise pric e Option s Weighted average exercise pric e Options outstanding at beginning of yea r - $ - 237,500 $ 1.275 Forfeited or expire d - - (237,500 ) 1.275 Outstanding at end of yea r - $ - - $ - |
Note 1 - Nature of Operations (
Note 1 - Nature of Operations (Details Textual) | Nov. 30, 2017 | Nov. 30, 2016 |
Number of Wholly Owned Subsidiaries | 3 | |
Number of Stores | 87 | 90 |
Number of Countries in which Entity Operates | 23 | |
Franchised Units [Member] | ||
Number of Stores | 82 | 85 |
Licensed Units [Member] | ||
Number of Stores | 3 | 3 |
Units Under Development [Member] | ||
Number of Stores | 2 |
Note 2 - Summary of Significa21
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) shares in Thousands | Nov. 30, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 |
Royalty Fees From Franchises Percentage | 5.00% | ||||
Restricted Cash and Cash Equivalents | $ 693,000 | $ 599,000 | $ 693,000 | $ 599,000 | |
Cash, FDIC Insured Amount | 250,000 | 250,000 | |||
Goodwill, Impairment Loss | $ 0 | $ 0 | |||
Advertising Expense | 24,000 | 41,000 | |||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | |||
Allocated Share-based Compensation Expense | $ 0 | $ 0 | |||
Leasehold Improvements [Member] | |||||
Property, Plant and Equipment, Useful Life | 10 years | ||||
Minimum [Member] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Maximum [Member] | |||||
Property, Plant and Equipment, Useful Life | 7 years |
Note 2 - Summary of Significa22
Note 2 - Summary of Significant Accounting Policies - Operating Units (Details) | Nov. 30, 2017 | Nov. 30, 2016 |
Operating Units | ||
Operating Units and Units with Franchise Agreements | 87 | 90 |
Franchised Units [Member] | ||
Operating Units | ||
Operating Units and Units with Franchise Agreements | 82 | 85 |
Licensed Units [Member] | ||
Operating Units | ||
Operating Units and Units with Franchise Agreements | 3 | 3 |
Total Franchised Owned and Licensed Units [Member] | ||
Operating Units | ||
Operating Units and Units with Franchise Agreements | 85 | 88 |
Unopened Store [Member] | ||
Operating Units | ||
Operating Units and Units with Franchise Agreements | 2 | 2 |
Note 2 - Summary of Significa23
Note 2 - Summary of Significant Accounting Policies - Net Book Value of Goodwill and Intangible Assets With Indefinite and Definite Lives (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Net Balance | $ 1,958,061 | $ 1,971,940 |
Additions | 4,455 | 4,023 |
Amortization expense | (9,108) | (17,901) |
Net Balance | 1,953,408 | 1,958,061 |
Definite Lived Intangible Assets [Member] | ||
Net Balance | 9,108 | 22,987 |
Additions | 4,022 | |
Amortization expense | (9,108) | (17,901) |
Net Balance | 9,108 | |
Trademarks [Member] | ||
Net Balance | 455,182 | 455,182 |
Additions | 4,455 | |
Amortization expense | ||
Net Balance | 459,637 | 455,182 |
Goodwill [Member] | ||
Net Balance | 1,493,771 | 1,493,771 |
Additions | ||
Amortization expense | ||
Net Balance | $ 1,493,771 | $ 1,493,771 |
Note 2 - Summary of Significa24
Note 2 - Summary of Significant Accounting Policies - Computation of Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Net income available to common shareholders | $ 454,173 | $ 449,400 |
Weighted average outstanding shares | ||
Weighted average shares outstanding - Basic and Diluted (in shares) | 7,263,508 | 7,263,508 |
Earnings per share - Basic and Diluted (in dollars per share) | $ 0.06 | $ 0.06 |
Note 3 - Income Taxes (Details
Note 3 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Effective Income Tax Rate Reconciliation, Percent | 34.00% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 5.68% | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 2,592,000 | |
Deferred Tax Assets, Valuation Allowance | $ 457,394 | $ 641,170 |
Note 3 - Income Taxes - Compone
Note 3 - Income Taxes - Components of the Current Provision (Benefit) for Income Taxes (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Current | ||
Federal | $ 4,000 | $ 8,000 |
State | 1,500 | 1,500 |
Deferred | 0 | 0 |
Total | $ 5,500 | $ 9,500 |
Note 3 - Income Taxes - Reconci
Note 3 - Income Taxes - Reconciliation of the Expected Income Tax Expense (Benefit) to the Recorded Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Federal income tax provision computed at federal statutory rate | $ 157,327 | $ 157,883 |
State income taxes, net of federal tax provision | 22,905 | 22,986 |
Other adjustments | 8,504 | 14,906 |
Change in valuation allowance and expiration of certain net operating losses | (183,236) | (186,275) |
Total | $ 5,500 | $ 9,500 |
Note 3 - Income Taxes - The Com
Note 3 - Income Taxes - The Components of the Deferred Tax Assets and Liabilities for Federal and State Income Taxes (Details) - USD ($) | Nov. 30, 2017 | Nov. 30, 2016 |
Deferred revenue | $ 7,071 | $ 34,754 |
Deferred rent | 7,813 | 15,867 |
Marketing Fund net contributions | 270,089 | 233,266 |
Allowance for doubtful accounts and notes receivable | 7,569 | 9,862 |
Accrued expenses | 55,946 | 57,468 |
Net operating loss carryforwards | 1,009,553 | 1,186,361 |
Valuation allowance | (457,394) | (641,170) |
Total Deferred Income Tax Asset | 900,647 | 896,408 |
Depreciation and amortization | (652,647) | (648,408) |
Total Deferred Income Tax Liabilities | (652,647) | (648,408) |
Total Net Deferred Tax Asset | $ 248,000 | $ 248,000 |
Note 4 - Long-term Debt (Detail
Note 4 - Long-term Debt (Details Textual) - USD ($) | Sep. 06, 2002 | Nov. 30, 2017 | Nov. 30, 2016 |
Debt Instrument, Periodic Payment | $ 35,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||
Debt Instrument, Term | 15 years | ||
Debt Instrument, Face Amount | $ 386,000 | ||
Stock Repurchased and Retired During Period, Shares | 1,380,040 | ||
Notes Payable, Noncurrent | $ 0 | $ 0 |
Note 5 - Stockholder's Equity (
Note 5 - Stockholder's Equity (Details Textual) - $ / shares | Jan. 12, 2018 | Dec. 05, 2017 | Oct. 13, 2017 | Sep. 07, 2017 | Jul. 13, 2017 | Jun. 07, 2017 | Apr. 20, 2017 | Mar. 15, 2017 | Jan. 09, 2017 | Dec. 05, 2016 | Oct. 12, 2016 | Sep. 06, 2016 | Jul. 11, 2016 | Jun. 06, 2016 | Apr. 13, 2016 | Mar. 03, 2016 | Jan. 06, 2016 | Dec. 03, 2015 | May 06, 2013 | Nov. 30, 2017 | Nov. 30, 2016 |
Common Stock, Dividends, Per Share, Declared | $ 0.05 | $ 0.06 | |||||||||||||||||||
Preferred Stock Dividends Number of Rights Declared | 1 | ||||||||||||||||||||
Preferred Stock Dividends Number of Rights Minimum Percent of Common Stock that must be Acquired to Make Rights Exercisable | 15.00% | ||||||||||||||||||||
Preferred Stock Dividends Number of Rights Minimum Percent of Common Stock that Must be Acquired to Make Rights Exercisable Institutional Investors | 20.00% | ||||||||||||||||||||
Right to Purchase Series A Preferred Stock [Member] | |||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.001 | ||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.90 | ||||||||||||||||||||
Quarterly Dividend [Member] | |||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Special Cash Distribution [Member] | |||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | $ 0.02 | |||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 | $ 0.02 | |||||||||||||||||||
Subsequent Event [Member] | Quarterly Dividend [Member] | |||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | ||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 | ||||||||||||||||||||
Subsequent Event [Member] | Special Cash Distribution [Member] | |||||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.01 | ||||||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.01 |
Note 6 - Stock Options (Details
Note 6 - Stock Options (Details Textual) - USD ($) | 12 Months Ended | |||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2015 | May 31, 2001 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,400,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | 237,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | ||
Allocated Share-based Compensation Expense | $ 0 | $ 0 |
Note 6 - Stock Options - Stock
Note 6 - Stock Options - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Options outstanding at beginning of year (in shares) | 0 | 237,500 |
Options outstanding at beginning of year (in dollars per share) | $ 1.275 | |
Forfeited or expired (in shares) | 0 | (237,500) |
Forfeited or expired (in dollars per share) | $ 1.275 | |
Outstanding at end of year (in shares) | 0 | 0 |
Outstanding at end of year (in dollars per share) |
Note 7 - Commitments (Details T
Note 7 - Commitments (Details Textual) - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Operating Leases, Rent Expense, Net | $ 174,000 | $ 171,000 |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 115,197 |
Note 8 - Employee Benefit Plan
Note 8 - Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% | |
Defined Contribution Plan, Cost | $ 37,000 | $ 44,000 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |