Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Aug. 31, 2020 | Oct. 14, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | BAB, INC. | |
Entity Central Index Key | 0001123596 | |
Trading Symbol | babb | |
Current Fiscal Year End Date | --11-30 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 7,263,508 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
Current Assets | ||
Cash | $ 1,076,612 | $ 1,095,235 |
Restricted cash | 297,469 | 400,434 |
Receivables | ||
Trade accounts and notes receivable (net of allowance for doubtful accounts of $18,132 in 2020 and $24,792 in 2019 ) | 82,546 | 66,870 |
Marketing fund contributions receivable from franchisees and stores | 21,218 | 17,219 |
Prepaid expenses and other current assets | 105,374 | 94,145 |
Total Current Assets | 1,583,219 | 1,673,903 |
Property, plant and equipment (net of accumulated depreciation of $156,762 in 2020 and $155,752 in 2019) | 2,652 | 3,662 |
Trademarks | 461,445 | 461,445 |
Goodwill | 1,493,771 | 1,493,771 |
Definite lived intangible assets (net of accumulated amortization of $126,710 in 2020 and $125,278 in 2019) | 21,690 | 12,625 |
Operating lease right of use | 323,753 | 384,159 |
Deferred tax asset | 200,000 | 200,000 |
Total Noncurrent Assets | 2,503,311 | 2,555,662 |
Total Assets | 4,086,530 | 4,229,565 |
Current Liabilities | ||
Accounts payable | 10,100 | 4,195 |
Accrued expenses and other current liabilities | 285,147 | 287,414 |
Contract with customer, liability, current | 547,493 | |
Current portion operating lease liability | 97,375 | 92,139 |
Current portion Payroll Protecttion Program loan | 85,558 | |
Total Current Liabilities | 847,768 | 860,488 |
Long-term Liabilities (net of current portion) | ||
Operating lease liability | 285,634 | 359,242 |
Contract with customer, liability, noncurrent | 96,100 | |
Long-term portion Payroll Protection Program loan | 142,597 | |
Total Long-term Liabilities | 524,331 | 439,352 |
Total Liabilities | 1,372,099 | 1,299,840 |
Stockholders' Equity | ||
Preferred shares | ||
Common stock -$.001 par value; 15,000,000 shares authorized; 8,466,953 shares issued and 7,263,508 shares outstanding as of August 31, 2020 and November 30, 2019 | 13,508,257 | 13,508,257 |
Additional paid-in capital | 987,034 | 987,034 |
Treasury stock | (222,781) | (222,781) |
Accumulated deficit | (11,558,079) | (11,342,785) |
Total Stockholders' Equity | 2,714,431 | 2,929,725 |
Total Liabilities and Stockholders' Equity | 4,086,530 | 4,229,565 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred shares | ||
Marketing Fund [Member] | ||
Current Liabilities | ||
Contract with customer, liability, current | 316,493 | 416,305 |
Franchise [Member] | ||
Current Liabilities | ||
Contract with customer, liability, current | 44,524 | 29,363 |
Long-term Liabilities (net of current portion) | ||
Contract with customer, liability, noncurrent | 91,338 | 72,670 |
License [Member] | ||
Current Liabilities | ||
Contract with customer, liability, current | 8,571 | 31,072 |
Long-term Liabilities (net of current portion) | ||
Contract with customer, liability, noncurrent | $ 4,762 | $ 7,440 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
Trade accounts and notes receivable, allowance for doubtful accounts | $ 18,132 | $ 24,792 |
Property, plant and equipment, accumulated depreciation | 156,762 | 155,752 |
Definite lived intangible assets, accumulated amortization | $ 126,710 | $ 125,278 |
Preferred shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred shares, authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, issued (in shares) | 8,466,953 | 8,466,953 |
Common stock, outstanding (in shares) | 7,263,508 | 7,263,508 |
Series A Preferred Stock [Member] | ||
Preferred shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred shares, authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred shares, outstanding (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 | |
REVENUES | ||||
Revenues | $ 624,420 | $ 793,239 | $ 1,671,924 | $ 2,279,753 |
OPERATING EXPENSES | ||||
Payroll and payroll-related expenses | 217,136 | 228,437 | 666,653 | 679,069 |
Occupancy | 35,992 | 35,130 | 104,344 | 85,677 |
Advertising and promotion | 2,610 | 19,916 | 24,254 | 42,579 |
Professional service fees | 22,935 | 30,072 | 102,464 | 111,936 |
Travel | 239 | 10,007 | 9,748 | 27,742 |
Employee benefit expenses | 35,973 | 32,672 | 110,170 | 106,595 |
Depreciation and amortization | 928 | 486 | 2,442 | 1,286 |
Marketing fund expenses | 172,723 | 253,003 | 447,275 | 737,623 |
Other | 32,364 | 29,158 | 114,621 | 98,275 |
Total Operating Expenses | 520,900 | 638,881 | 1,581,971 | 1,890,782 |
Income from operations | 103,520 | 154,358 | 89,953 | 388,971 |
Interest income | 91 | 118 | 293 | 502 |
Income before provision for income taxes | 103,611 | 154,476 | 90,246 | 389,473 |
Provision for income taxes | ||||
Current tax expense | 5,000 | 15,000 | 15,000 | |
Net Income | $ 103,611 | $ 149,476 | $ 75,246 | $ 374,473 |
Net Income per share - Basic and Diluted (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.01 | $ 0.05 |
Weighted average shares outstanding - Basic and diluted (in shares) | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 |
Cash distributions declared per share (in dollars per share) | $ 0.01 | $ 0.04 | $ 0.05 | |
Royalty [Member] | ||||
REVENUES | ||||
Revenues | $ 375,282 | $ 435,616 | $ 1,001,112 | $ 1,228,471 |
Franchise [Member] | ||||
REVENUES | ||||
Revenues | 4,874 | 3,455 | 12,398 | 20,281 |
Licensing Fees and Other Income [Member] | ||||
REVENUES | ||||
Revenues | 71,541 | 101,165 | 211,139 | 293,378 |
Marketing Fund [Member] | ||||
REVENUES | ||||
Revenues | $ 172,723 | $ 253,003 | $ 447,275 | $ 737,623 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Operating activities | ||
Net Income | $ 75,246 | $ 374,473 |
Adjustments to reconcile net income to cash | ||
Depreciation and amortization | 2,442 | 1,286 |
Deferred tax expense | 48,000 | |
Provision for uncollectible accounts, net of recoveries | (7,540) | (15,372) |
Noncash lease expense | 74,484 | 52,398 |
Changes in: | ||
Trade accounts receivable and notes receivable | (8,136) | 6,606 |
Marketing fund contributions receivable | (3,999) | (4,470) |
Prepaid expenses and other | (11,229) | (23,709) |
Accounts payable | 5,905 | (17,403) |
Accrued liabilities | (84,717) | (59,740) |
Unexpended marketing fund contributions | (99,812) | (54,844) |
Deferred revenue | 8,650 | (29,979) |
Net Cash (Used In)/ Provided by Operating Activities | (48,706) | 277,246 |
Investing activities | ||
Capitalization of trademark renewals | (10,497) | (5,920) |
Net Cash Used In Investing Activities | (10,497) | (5,920) |
Financing activities | ||
Loan proceeds | 228,155 | |
Cash distributions/dividends | (290,540) | (363,176) |
Net Cash Used In Financing Activities | (62,385) | (363,176) |
Net Decrease in Cash, Cash Equivalents and Restricted Cash | (121,588) | (91,850) |
Cash, Cash Equivalents and Restricted Cash - Beginning of Period | 1,495,669 | 1,509,227 |
Cash, Cash Equivalents and Restricted Cash - End of Period | 1,374,081 | 1,417,377 |
Supplemental disclosure of cash flow information: | ||
Interest paid | ||
Income taxes paid | $ 36,012 | $ 2,800 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 9 Months Ended |
Aug. 31, 2020 | |
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. August 31, 2020, 72 7 22 3 The BAB franchised brand consists of units operating as “Big Apple Bagels®,” featuring daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches and other related products. BAB units are primarily concentrated in the Midwest and Western United States. The MFM brand consists of units operating as “My Favorite Muffin Gourmet Muffin Bakery™” (“MFM Bakery”), featuring a large variety of freshly baked muffins and coffees and units operating as “My Favorite Muffin Your All Day Bakery Café®” (“MFM Cafe”) featuring these products as well as a variety of specialty bagel sandwiches and related products. The SweetDuet® is a branded self-serve frozen yogurt that can be added as an additional brand in a BAB location. Although the Company doesn't actively market Brewster's stand-alone franchises, Brewster's coffee products are sold in most franchised units. The Company is leveraging on the natural synergy of distributing muffin products in existing BAB units and, alternatively, bagel products and Brewster's Coffee in existing MFM units. The Company expects to continue to realize efficiencies in servicing the combined base of BAB and MFM franchisees. The accompanying condensed consolidated financial statements are unaudited. These financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been omitted pursuant to such SEC rules and regulations; nevertheless, the Company believes that the disclosures are adequate to make the information presented not 10 November 30, 2019 February 24, 2020. not |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Summary of S ignificant A ccounting P olicies Unaudited C onsolidated F inancial S tatements The accompanying unaudited Condensed Consolidated Financial Statements of BAB, Inc. have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10 Uses of E stimates The preparation of the financial statements and accompanying notes are 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, liabilities, revenue and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. 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 Property, Plant and Equipment Property, 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 Advertising and Promotion Costs The Company expenses advertising and promotion costs as incurred. All advertising and promotion costs were related to the Company's franchise operations. Leases The company accounts for leases under ASC 842. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not may Recent Accounting Pronouncements In June 2016, 2016 13, Financial Instruments—Credit Losses (Topic 326 2016 13 December 15, 2019. December 15, 2018, 2019 12 November 30, 2021. In December 2019, 2019 12, “Income Taxes (Topic 740 2019 12 740 The amendments in ASU 2019 12 December 15, 2020, If an entity early adopts these amendments in an interim period, it should reflect any adjustments as of the beginning of the annual period that includes that interim period. In addition, an entity that elects to early adopt the standard is required to adopt all of the amendments in the same period (i.e., an entity cannot select which amendments to early adopt). The Company is still evaluating the specific effect of this change. The Company will adopt ASU 2019 12 November 30, 2021. Management does not not Statement of Cash Flows The chart below shows the cash and restricted cash within the consolidated statements of cash flows as of August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Cash and cash equivalents $ 1,076,612 $ 1,031,722 Restricted cash 297,469 385,655 Total cash, cash equivalents and restricted cash $ 1,374,081 $ 1,417,377 |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. Franchise and related revenue The Company sells individual franchises. The franchise agreements typically require the franchisee to pay an initial, non-refundable fee prior to opening the respective location(s), and continuing royalty fees on a weekly basis based upon a percentage of franchisee net sales. The initial term of franchise agreements are typically 10 may may no Under the terms of our franchise agreements, the Company typically promises to provide franchise rights, pre-opening services such as blueprints, operational materials, planning and functional training courses, and ongoing services, such as management of the marketing fund. Upon adoption of Topic 606, two two Royalty income is recognized during the respective franchise agreement based on the royalties earned each period as the underlying franchise store sales occur. Adoption of ASC 606 not not There are two one Gift Card Breakage Revenue The Company sells gift cards to its customers in its retail stores and through its Corporate office. The Company's gift cards do not not The Company recognizes gift card breakage proportional to actual gift card redemptions as required under ASC 606 Nontraditional and rebate revenue As part of the Company's franchise agreements, the franchisee purchases products and supplies from designated vendors. The Company may may not Marketing Fund Franchise agreements require the franchisee to pay continuing marketing fees on a weekly basis, based on a percentage of franchisees sales. Marketing fees are not not Contract balances Information about contract balances is as follows: August 31, 2020 December 1, 2019 Assets Accounts receivable $ 69,744 $ 58,853 Total Assets 69,744 58,853 Liabilities Contract liabilities - current 547,493 622,724 Contract liabilities - long-term 96,100 80,110 Total Contract Liabilities $ 643,593 $ 702,834 Accounts receivable represent weekly royalty payments and monthly vendor rebate payments that represent billed and unbilled receivables due as of August 31, 2020 December 1, 2019. Accounts Contract Balance at December 1, 2019 $ 58,853 $ 702,834 Revenue Recognized 422,420 (587,260 ) Amounts (collected) or invoiced, net (411,529 ) 528,019 Balance at August 31, 2020 $ 69,744 $ 643,593 Transaction price from franchise fees and licensing revenue allocated to remaining performance obligations as of August 31, 2020: (a) 2020 $ 22,944 2021 $ 35,610 2022 $ 20,039 2023 $ 15,345 2024 $ 14,964 Thereafter $ 40,293 Total $ 149,195 (a) represents the estimate for the remainder of 2020 The Company has elected to apply certain practical expedients as defined in ASC 606 10 50 14 606 10 50 14A, one not |
Note 4 - Units Open and Under D
Note 4 - Units Open and Under Development | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Units Open and Under Development [Text Block] | 4. Units which are open or under development at August 31, 2020 Stores open: Franchisee-owned stores 72 Licensed Units 7 79 Unopened stores with Franchise Agreements 3 Total operating units and units with Franchise Agreements 82 |
Note 5 - Earnings Per Share
Note 5 - Earnings Per Share | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 5. The following table sets forth the computation of basic and diluted earnings per share: For the three months ended: For the nine months ended: August 31, August 31, August 31, August 31, Numerator: Net income available to common shareholders $ 103,611 $ 149,476 $ 75,246 $ 374,473 Denominator: Weighted average outstanding shares Basic and diluted common stock 7,263,508 7,263,508 7,263,508 7,263,508 Earnings per Share - Basic $ 0.01 $ 0.02 $ 0.01 $ 0.05 |
Note 6 - Goodwill and Other Int
Note 6 - Goodwill and Other Intangible Assets | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6 . Goodwill and Other Intangible Assets Accounting Standard Codification (“ASC”) 350 no Following the guidelines contained in ASC 350, not first February 28, 2020, not first 2020, not August 31, 2020, not August 31, 2020. Due to the impact of the COVID- 19 April May 2020. third fourth June May 2020, no third 2020 third |
Note 7 - Lease Commitments
Note 7 - Lease Commitments | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | 7. The Company rents its office under an operating lease which requires it to pay base rent, real estate taxes, insurance and general repairs and maintenance. A lease was signed in June 2018, October 1, 2018, March 31, 2024 5 six $21,300. not Monthly rent expense is recognized on a straight-line basis over the term of the lease. At August 31, 2020 43 5.25% Gross future minimum annual rental commitments as of August 31, 2020 Undiscounted Rent Payments Year Ending November 30: 2020 $ 27,926 2021 113,024 2022 115,673 2023 118,322 Thereafter 40,176 Total Undiscounted Rent Payments 415,121 Present Value Discount (32,112 ) Present Value $ 383,009 Short-term lease liability $ 97,375 Long-term lease liability 285,634 Total Operating Lease Liability $ 383,009 |
Note 8 - Payroll Protection Pro
Note 8 - Payroll Protection Program Loan | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 8. On May 1, 2020, $228,155 1 March 27, 2020. The PPP Loan, which was in the form of a Note dated April 30, 2020 two 1% nine may no Under the terms of the CARES Act, PPP Loan participants can apply for and be granted forgiveness for all or a portion of loans granted under the PPP. Under the terms of the PPP, PPP loans and accrued interest are forgivable between eight twenty-four eight no Loan amortization if not forgiven: Year Ending November 30: 2021 $ 104,571 2022 $ 114,078 2023 $ 9,506 Payroll Protection Program ("PPP") loan $ 228,155 Short-term PPP loan liability $ 85,558 Long-term PPP loan liability 142,597 Total PPP loan liability $ 228,155 |
Note 9 - Stockholder's Equity
Note 9 - Stockholder's Equity | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. On December 5, 2019, $.01 $0.02 January 8, 2020. March 4, 2020, $0.01 March 23, 2020 April 08, 2020. On March 13, 2019 June 5, 2019 $0.01 March 29, 2019 June 21, 2019 April 18, 2019 July 10, 2019, On September 5, 2019, $0.01 September 20, 2019 October 08, 2019. 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 February 22, 2019 ninth |
Note 10 - Uncertainties and Cov
Note 10 - Uncertainties and Covid-19 | 9 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Unusual or Infrequent Items, or Both, Disclosure [Text Block] | 10. Uncertainties and COVID- 19 The COVID- 19 April May. August 2020, In order to support our franchisees during this difficult time, the Company waived the 3% March 16, 2020 May 31, 2020, June July 2020. 8 May 5, 2020 While the Coronavirus pandemic has created challenges for restaurants around the country, we are proud of the work our franchisees have put in to adapt to changing regulations and government mandates. As states begin to open up and ease restrictions we have seen franchise locations total system-wide sales rebound from down approximately 66.8% 20 9.5% 45. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Unaudited C onsolidated F inancial S tatements The accompanying unaudited Condensed Consolidated Financial Statements of BAB, Inc. have been prepared pursuant to generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for Form 10 |
Use of Estimates, Policy [Policy Text Block] | Uses of E stimates The preparation of the financial statements and accompanying notes are 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, liabilities, revenue and expenses and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods. Actual results could differ from those estimates. |
Receivable [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 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, 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 |
Advertising Cost [Policy Text Block] | Advertising and Promotion Costs The Company expenses advertising and promotion costs as incurred. All advertising and promotion costs were related to the Company's franchise operations. |
Lessee, Leases [Policy Text Block] | Leases The company accounts for leases under ASC 842. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most leases do not may |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, 2016 13, Financial Instruments—Credit Losses (Topic 326 2016 13 December 15, 2019. December 15, 2018, 2019 12 November 30, 2021. In December 2019, 2019 12, “Income Taxes (Topic 740 2019 12 740 The amendments in ASU 2019 12 December 15, 2020, If an entity early adopts these amendments in an interim period, it should reflect any adjustments as of the beginning of the annual period that includes that interim period. In addition, an entity that elects to early adopt the standard is required to adopt all of the amendments in the same period (i.e., an entity cannot select which amendments to early adopt). The Company is still evaluating the specific effect of this change. The Company will adopt ASU 2019 12 November 30, 2021. Management does not not Statement of Cash Flows The chart below shows the cash and restricted cash within the consolidated statements of cash flows as of August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Cash and cash equivalents $ 1,076,612 $ 1,031,722 Restricted cash 297,469 385,655 Total cash, cash equivalents and restricted cash $ 1,374,081 $ 1,417,377 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Cash, Cash Equivalents, and Restricted Cash, Cash Flow Statement Reconciliation [Table Text Block] | August 31, 2020 August 31, 2019 Cash and cash equivalents $ 1,076,612 $ 1,031,722 Restricted cash 297,469 385,655 Total cash, cash equivalents and restricted cash $ 1,374,081 $ 1,417,377 |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Contract With Customer Asset and Liability, Subject to Change [Table Text Block] | August 31, 2020 December 1, 2019 Assets Accounts receivable $ 69,744 $ 58,853 Total Assets 69,744 58,853 Liabilities Contract liabilities - current 547,493 622,724 Contract liabilities - long-term 96,100 80,110 Total Contract Liabilities $ 643,593 $ 702,834 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Accounts Contract Balance at December 1, 2019 $ 58,853 $ 702,834 Revenue Recognized 422,420 (587,260 ) Amounts (collected) or invoiced, net (411,529 ) 528,019 Balance at August 31, 2020 $ 69,744 $ 643,593 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | (a) 2020 $ 22,944 2021 $ 35,610 2022 $ 20,039 2023 $ 15,345 2024 $ 14,964 Thereafter $ 40,293 Total $ 149,195 |
Note 4 - Units Open and Under_2
Note 4 - Units Open and Under Development (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Schedule of Franchisor Disclosure [Table Text Block] | Stores open: Franchisee-owned stores 72 Licensed Units 7 79 Unopened stores with Franchise Agreements 3 Total operating units and units with Franchise Agreements 82 |
Note 5 - Earnings Per Share (Ta
Note 5 - Earnings Per Share (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the three months ended: For the nine months ended: August 31, August 31, August 31, August 31, Numerator: Net income available to common shareholders $ 103,611 $ 149,476 $ 75,246 $ 374,473 Denominator: Weighted average outstanding shares Basic and diluted common stock 7,263,508 7,263,508 7,263,508 7,263,508 Earnings per Share - Basic $ 0.01 $ 0.02 $ 0.01 $ 0.05 |
Note 7 - Lease Commitments (Tab
Note 7 - Lease Commitments (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Undiscounted Rent Payments Year Ending November 30: 2020 $ 27,926 2021 113,024 2022 115,673 2023 118,322 Thereafter 40,176 Total Undiscounted Rent Payments 415,121 Present Value Discount (32,112 ) Present Value $ 383,009 Short-term lease liability $ 97,375 Long-term lease liability 285,634 Total Operating Lease Liability $ 383,009 |
Note 8 - Payroll Protection P_2
Note 8 - Payroll Protection Program Loan (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Loan amortization if not forgiven: Year Ending November 30: 2021 $ 104,571 2022 $ 114,078 2023 $ 9,506 Payroll Protection Program ("PPP") loan $ 228,155 Short-term PPP loan liability $ 85,558 Long-term PPP loan liability 142,597 Total PPP loan liability $ 228,155 |
Note 1 - Nature of Operations (
Note 1 - Nature of Operations (Details Textual) | Aug. 31, 2020 | May 31, 2020 |
Number of Wholly Owned Subsidiaries | 3 | |
Number of Stores | 82 | |
Number of States in which Entity Operates | 22 | |
Franchised Units [Member] | ||
Number of Stores | 72 | |
Licensed Units [Member] | ||
Number of Stores | 7 | |
Units Under Development [Member] | ||
Number of Stores | 3 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 9 Months Ended |
Aug. 31, 2020 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 7 years |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Summary of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) | Aug. 31, 2020 | May 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 |
Cash and cash equivalents | $ 1,076,612 | $ 1,095,235 | $ 1,031,722 | ||
Restricted cash | 297,469 | 385,655 | |||
Total cash, cash equivalents and restricted cash | $ 1,374,081 | $ 1,495,669 | $ 1,417,377 | $ 1,509,227 |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) | 9 Months Ended |
Aug. 31, 2020 | |
Initial Franchise Term (Year) | 10 years |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Contract Balances Subject to ASC 606 (Details) - USD ($) | Aug. 31, 2020 | Dec. 01, 2019 | Nov. 30, 2019 |
Accounts receivable | $ 69,744 | $ 58,853 | |
Total Assets | 69,744 | 58,853 | $ 58,853 |
Contract liabilities - current | 547,493 | 622,724 | |
Contract liabilities - long-term | 96,100 | 80,110 | |
Total Contract Liabilities | $ 643,593 | $ 702,834 | $ 702,834 |
Note 3 - Revenue Recognition _2
Note 3 - Revenue Recognition - Changes in Contract Balances (Details) | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Balance, accounts receivable | $ 58,853 |
Balance, contract liabilities | 702,834 |
Revenue Recognized, accounts receivable | 422,420 |
Revenue Recognized, contract liabilities | (587,260) |
Amounts (collected) or invoiced, net, accounts receivable | (411,529) |
Amounts (collected) or invoiced, net, contract liabilities | 528,019 |
Balance, accounts receivable | 69,744 |
Balance, contract liabilities | $ 643,593 |
Note 3 - Revenue Recognition _3
Note 3 - Revenue Recognition - Remaining Performance Obligations (Details) | Aug. 31, 2020USD ($) |
Revenue, remaining performance obligation, amount | $ 149,195 |
Note 3 - Revenue Recognition _4
Note 3 - Revenue Recognition - Remaining Performance Obligations 2 (Details) | Aug. 31, 2020USD ($) | |
Revenue, remaining performance obligation, amount | $ 149,195 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-01 | ||
Revenue, remaining performance obligation, amount | $ 22,944 | [1] |
Revenue, remaining performance obligation, period (Year) | 182 days | [1] |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-01 | ||
Revenue, remaining performance obligation, amount | $ 35,610 | |
Revenue, remaining performance obligation, period (Year) | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-01 | ||
Revenue, remaining performance obligation, amount | $ 20,039 | |
Revenue, remaining performance obligation, period (Year) | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-01 | ||
Revenue, remaining performance obligation, amount | $ 15,345 | |
Revenue, remaining performance obligation, period (Year) | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-01 | ||
Revenue, remaining performance obligation, amount | $ 14,964 | |
Revenue, remaining performance obligation, period (Year) | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-01 | ||
Revenue, remaining performance obligation, amount | $ 40,293 | |
Revenue, remaining performance obligation, period (Year) | 1 year | |
[1] | represents the estimate for the remainder of 2020 |
Note 4 - Units Open and Under_3
Note 4 - Units Open and Under Development - Operating Units (Details) | Aug. 31, 2020 |
Operating Units and Units with Franchise Agreements | 82 |
Franchised Units [Member] | |
Operating Units and Units with Franchise Agreements | 72 |
Licensed Units [Member] | |
Operating Units and Units with Franchise Agreements | 7 |
Total Franchised Owned and Licensed Units [Member] | |
Operating Units and Units with Franchise Agreements | 79 |
Unopened Store [Member] | |
Operating Units and Units with Franchise Agreements | 3 |
Note 5 - Earnings Per Share - C
Note 5 - Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Aug. 31, 2020 | May 31, 2020 | Aug. 31, 2019 | May 31, 2019 | May 31, 2020 | May 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Net income available to common shareholders | $ 103,611 | $ 149,476 | $ 75,246 | $ 374,473 | ||||
Weighted average shares outstanding - Basic and diluted (in shares) | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 |
Net Income per share - Basic and Diluted (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.02 | $ 0.02 | $ 0.01 | $ 0.05 | $ 0.01 | $ 0.05 |
Note 6 - Goodwill and Other I_2
Note 6 - Goodwill and Other Intangible Assets (Details Textual) $ in Thousands | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Goodwill, Impairment Loss | $ 0 |
Note 7 - Lease Commitments (Det
Note 7 - Lease Commitments (Details Textual) - USD ($) | Oct. 01, 2018 | Aug. 31, 2020 |
Lessee, Operating Lease, Renewal Term (Year) | 5 years | |
Lessee, Operating Lease, Rent Abatement and Tenant Allowance Period (Month) | 180 days | |
Operating Lease, Expense | $ 21,300 | |
Lessee, Operating Lease, Discount Rate | 5.25% |
Note 7 - Lease Commitments - Gr
Note 7 - Lease Commitments - Gross Future Minimum Annual Rental Commitments (Details) - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
2020 | $ 27,926 | |
2021 | 113,024 | |
2022 | 115,673 | |
2023 | 118,322 | |
Thereafter | 40,176 | |
Total Undiscounted Rent Payments | 415,121 | |
Present Value Discount | (32,112) | |
Present Value | 383,009 | |
Short-term lease liability | 97,375 | $ 92,139 |
Long-term lease liability | 285,634 | $ 359,242 |
Total Operating Lease Liability | $ 383,009 |
Note 8 - Payroll Protection P_3
Note 8 - Payroll Protection Program Loan (Details Textual) | May 01, 2020USD ($) |
Paycheck Protection Program CARES Act [Member] | |
Proceeds from Issuance of Long-term Debt, Total | $ 228,155 |
Note 8 - Payroll Protection P_4
Note 8 - Payroll Protection Program Loan - Loan Amortization (Details) - USD ($) | Aug. 31, 2020 | Nov. 30, 2019 |
Short-term PPP loan liability | $ 85,558 | |
Long-term PPP loan liability | 142,597 | |
Paycheck Protection Program CARES Act [Member] | ||
2021 | 104,571 | |
2022 | 114,078 | |
2023 | 9,506 | |
Payroll Protection Program ("PPP") loan | 228,155 | |
Short-term PPP loan liability | 85,558 | |
Long-term PPP loan liability | $ 142,597 |
Note 9 - Stockholder's Equity (
Note 9 - Stockholder's Equity (Details Textual) - $ / shares | Apr. 08, 2020 | Mar. 04, 2020 | Jan. 08, 2020 | Dec. 05, 2019 | Oct. 08, 2019 | Sep. 05, 2019 | Jul. 10, 2019 | Jun. 05, 2019 | Apr. 18, 2019 | Mar. 13, 2019 | Feb. 22, 2019 | May 22, 2017 | Aug. 18, 2015 | May 06, 2013 | May 31, 2020 | May 31, 2019 | May 31, 2020 | May 31, 2019 |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.01 | $ 0.04 | $ 0.05 | |||||||||||||||
Preferred Stock Dividends Number of Rights Declared (in shares) | 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 (in shares) | 0.001 | |||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.90 | |||||||||||||||||
Class of Warrant or Right, Term (Year) | 9 years | 7 years | 5 years | |||||||||||||||
Quarterly Dividend [Member] | ||||||||||||||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | |||||||||||||
Special Cash Distribution [Member] | ||||||||||||||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.02 | |||||||||||||||||
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.02 |
Note 10 - Uncertainties and C_2
Note 10 - Uncertainties and Covid-19 (Details Textual) | 3 Months Ended |
May 31, 2020 | |
Marketing Fees, Percent | 3.00% |