Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Feb. 28, 2021 | Apr. 14, 2021 | |
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 | Feb. 28, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Feb. 28, 2021 | Nov. 30, 2020 |
Current Assets | ||
Cash | $ 1,332,529 | $ 1,236,081 |
Restricted cash | 389,721 | 396,842 |
Receivables | ||
Trade accounts and notes receivable (net of allowance for doubtful accounts of $16,743 in 2021 and $18,152 in 2020 ) | 62,773 | 62,969 |
Marketing fund contributions receivable from franchisees and stores | 18,424 | 17,544 |
Prepaid expenses and other current assets | 87,257 | 96,723 |
Total Current Assets | 1,890,704 | 1,810,159 |
Property, plant and equipment (net of accumulated depreciation of $157,504 in 2021 and $157,118 in 2020) | 1,910 | 2,296 |
Trademarks | 461,445 | 461,445 |
Goodwill | 1,493,771 | 1,493,771 |
Definite lived intangible assets (net of accumulated amortization of $128,301 in 2021 and $127,474 in 2020) | 22,880 | 23,707 |
Operating lease right of use | 282,143 | 303,084 |
Total Noncurrent Assets | 2,262,149 | 2,284,303 |
Total Assets | 4,152,853 | 4,094,462 |
Current Liabilities | ||
Accounts payable | 4,293 | 10,279 |
Accrued expenses and other current liabilities | 322,510 | 288,888 |
Contract with customer, liability, current | 615,804 | 599,965 |
Current portion operating lease liability | 100,937 | 99,149 |
Payroll Protection Program loan | 228,155 | |
Total Current Liabilities | 900,431 | 1,078,616 |
Long-term Liabilities (net of current portion) | ||
Operating lease liability | 234,047 | 260,094 |
Contract with customer, liability, noncurrent | 95,334 | 97,798 |
Deferred tax liability | 105,940 | 84,940 |
Total Long-term Liabilities | 418,799 | 442,832 |
Total Liabilities | 1,319,230 | 1,521,448 |
Stockholders' Equity | ||
Preferred shares | ||
Common stock -$.001 par value; 15,000,000 shares authorized; 8,466,953 shares issued and 7,263,508 shares outstanding as of February 28, 2021 and November 30, 2020 | 13,508,257 | 13,508,257 |
Additional paid-in capital | 987,034 | 987,034 |
Treasury stock | (222,781) | (222,781) |
Accumulated deficit | (11,438,887) | (11,699,496) |
Total Stockholders' Equity | 2,833,623 | 2,573,014 |
Total Liabilities and Stockholders' Equity | 4,152,853 | 4,094,462 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred shares | ||
Marketing Fund [Member] | ||
Current Liabilities | ||
Contract with customer, liability, current | 406,659 | 387,117 |
Franchise [Member] | ||
Current Liabilities | ||
Contract with customer, liability, current | 42,460 | 33,957 |
Long-term Liabilities (net of current portion) | ||
Contract with customer, liability, noncurrent | 75,836 | 93,929 |
License [Member] | ||
Current Liabilities | ||
Contract with customer, liability, current | 23,572 | 31,071 |
Long-term Liabilities (net of current portion) | ||
Contract with customer, liability, noncurrent | $ 2,976 | $ 3,869 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Feb. 28, 2021 | Nov. 30, 2020 |
Trade accounts and notes receivable, allowance for doubtful accounts | $ 16,743 | $ 18,152 |
Property, plant and equipment, accumulated depreciation | 157,504 | 157,118 |
Definite lived intangible assets, accumulated amortization | $ 128,301 | $ 127,474 |
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 | |
Feb. 28, 2021 | Feb. 29, 2020 | |
REVENUES | ||
Revenues | $ 722,905 | $ 695,684 |
OPERATING EXPENSES | ||
Payroll and payroll-related expenses | 209,770 | 230,405 |
Occupancy | 34,706 | 33,678 |
Advertising and promotion | 1,568 | 13,910 |
Professional service fees | 58,037 | 49,117 |
Travel | 1,027 | 7,999 |
Employee benefit expenses | 37,998 | 37,190 |
Depreciation and amortization | 1,214 | 740 |
Marketing fund expenses | 201,476 | 227,521 |
Other | 40,142 | 37,034 |
Total Operating Expenses | 585,938 | 637,594 |
Income from operations | 136,967 | 58,090 |
Interest income | 123 | 104 |
Loan forgiveness | 228,155 | |
Income before provision for income taxes | 365,245 | 58,194 |
Provision for income taxes | ||
Current tax expense | 11,000 | 15,000 |
Deferred tax expense | 21,000 | |
Total Tax Provision | 32,000 | 15,000 |
Net Income | $ 333,245 | $ 43,194 |
Net Income per share - Basic and Diluted (in dollars per share) | $ 0.05 | $ 0.01 |
Weighted average shares outstanding - Basic and diluted (in shares) | 7,263,508 | 7,263,508 |
Cash distributions declared per share (in dollars per share) | $ 0.01 | $ 0.03 |
Royalty [Member] | ||
REVENUES | ||
Revenues | $ 346,660 | $ 387,339 |
Franchise [Member] | ||
REVENUES | ||
Revenues | 16,839 | 3,650 |
Licensing Fees and Other Income [Member] | ||
REVENUES | ||
Revenues | 157,930 | 77,174 |
Marketing Fund [Member] | ||
REVENUES | ||
Revenues | $ 201,476 | $ 227,521 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Operating activities | ||
Net Income | $ 333,245 | $ 43,194 |
Adjustments to reconcile net income to cash flows provided by operating activities: | ||
Depreciation and amortization | 1,213 | 740 |
Deferred tax expense | 21,000 | |
Provision for uncollectible accounts, net of recoveries | (609) | (2,646) |
Noncash lease expense | 24,827 | 35,094 |
Loan forgiveness | (228,155) | |
Changes in: | ||
Trade accounts receivable and notes receivable | 26,588 | (7,511) |
Marketing fund contributions receivable | (880) | (2,613) |
Prepaid expenses and other | 9,466 | 10,740 |
Accounts payable | (5,986) | 1,040 |
Accrued liabilities | 33,621 | (3,189) |
Unexpended marketing fund contributions | (6,241) | (11,458) |
Deferred revenue | (17,981) | 14,465 |
Operating lease liability | (28,145) | (27,483) |
Net Cash Provided by Operating Activities | 161,963 | 50,373 |
Investing activities | ||
Capitalization of trademark renewals | (1,525) | |
Net Cash Used In Investing Activities | (1,525) | |
Financing activities | ||
Cash distributions/dividends | (72,636) | (217,906) |
Net Cash Used In Financing Activities | (72,636) | (217,906) |
Net Increase/(Decrease) in Cash and Restricted Cash | 89,327 | (169,058) |
Cash and Restricted Cash - Beginning of Period | 1,632,923 | 1,495,669 |
Cash and Restricted Cash - End of Period | 1,722,250 | 1,326,611 |
Supplemental disclosure of cash flow information: | ||
Interest paid | ||
Income taxes paid | $ 1,700 |
Note 1 - Nature of Operations
Note 1 - Nature of Operations | 3 Months Ended |
Feb. 28, 2021 | |
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. February 28, 2021, 71 3 21 1 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, 2020 February 26, 2021. not |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 3 Months Ended |
Feb. 28, 2021 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 2. Unaudited Consolidated Financial Statements 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 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, 2023. 2019 13 November 30, 2024 not . In December 2019, 2019 12, Income Taxes (Topic 740 2019 12 740 2019 12 December 15, 2020, 2019 12 November 30, 2022 not . Management does not not February 28, 2021 Statement of Cash Flows The chart below shows the cash and restricted cash within the consolidated statements of cash flows as of February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 Cash and cash equivalents $ 1,332,529 $ 939,402 Restricted cash 389,721 387,209 Total cash and restricted cash $ 1,722,250 $ 1,326,611 |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 3 Months Ended |
Feb. 28, 2021 | |
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. The Company considers certain pre-opening activities and the franchise rights and related ongoing services to represent two two Royalty fees from franchised stores represent a 5% not 10 Royalty revenue is recognized during the respective franchise agreement based on the royalties earned each period as the underlying franchise store sales occur. 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 liability is reduced when the gift cards are redeemed by a franchise. Although there are no 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 franchisee sales. Marketing fees are not not no Disaggregation of Revenue The following table presents disaggregation of revenue from contracts with customers for the three February 28, 2021and February 29, 2020: For three months ended February 28, 2021 For three months ended February 29, 2020 Revenue recognized at a point in time Sign Shop revenue $ 3,002 $ 909 Settlement revenue 95,307 631 Total revenue at a point in time 98,309 1,540 Revenue recognized over time Royalty revenue 346,660 387,339 Franchise fees 16,839 3,650 License fees 6,750 9,041 Gift card revenue 1,561 2,451 Nontraditional revenue 51,310 64,142 Marketing fund revenue 201,476 227,521 Total revenue over time 624,596 694,144 Grand total $ 722,905 $ 695,684 Contract balances The balance of contract liabilities includes franchise fees, license fees and vendor payments that have ongoing contract rights and the fees are being straight lined over the contract life. Contract liabilities also include marketing fund balances and gift card liability balances. For the Three Months Ended February 28, 2021 Fiscal Year to Date November 30, 2020 Liabilities Contract liabilities - current $ 615,804 $ 599,965 Contract liabilities - long-term 95,334 97,798 Total Contract Liabilities $ 711,138 $ 697,763 For the Three Months Ended February 28, 2021 Fiscal Year to Date November 30, 2020 Contract Liabilities at beginning of period $ 697,763 $ 702,834 Revenue Recognized during period (235,660 ) (780,940 ) Additions during period 249,035 775,869 Contract Liabilities at end of period $ 711,138 $ 697,763 Transaction price allocated to remaining performance obligations (franchise agreements and license fee agreement) for the year ended November 30: (a) 2021 $ 45,647 2022 $ 20,281 2023 $ 15,837 2024 $ 13,706 2025 $ 13,540 Thereafter $ 35,833 Total $ 144,844 (a) represents the estimate for the remainder of 2021 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 | 3 Months Ended |
Feb. 28, 2021 | |
Notes to Financial Statements | |
Units Open and Under Development [Text Block] | 4. Units which are open or under development at February 28, 2021 February 28, 2021 February 29, 2020 Stores open: Franchisee-owned stores 71 73 Licensed Units 3 7 74 80 Unopened stores with Franchise Agreements 1 2 Total operating units and units with Franchise Agreements 75 82 |
Note 5 - Earnings Per Share
Note 5 - Earnings Per Share | 3 Months Ended |
Feb. 28, 2021 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 5. The following table sets forth the computation of basic and diluted earnings per share: February 28, 2021 February 29, 2020 Numerator: Net income available to common shareholders $ 333,245 $ 43,194 Denominator: Weighted average outstanding shares Basic and diluted 7,263,508 7,263,508 Earnings per Share - Basic and diluted $ 0.05 $ 0.01 |
Note 6 - Goodwill and Other Int
Note 6 - Goodwill and Other Intangible Assets | 3 Months Ended |
Feb. 28, 2021 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | 6. Accounting Standard Codification (“ASC”) 350 no Following the guidelines contained in ASC 350, not first February 28, 2021 February 29, 2020, not Although the COVID- 19 2020 83.7% 2019 2021 10.5% 2020 2021 first 2021 not February 28, 2021. After reviewing the changes to the Company's operations and overall business environment during the first 2021, not February 28, 2021, not February 28, 2021. |
Note 7 - Lease Commitments
Note 7 - Lease Commitments | 3 Months Ended |
Feb. 28, 2021 | |
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 February 28, 2021 37 5.25% Gross future minimum annual rental commitments as of February 28, 2021 Undiscounted Rent Payments Year Ending November 30: 2021 $ 84,878 2022 115,673 2023 118,322 2024 40,177 Total Undiscounted Rent Payments $ 359,050 Present Value Discount (24,066 ) Present Value $ 334,984 Short-term lease liability $ 100,937 Long-term lease liability 234,047 Total Operating Lease Liability $ 334,984 |
Note 8 - Payroll Protection Pro
Note 8 - Payroll Protection Program Loan | 3 Months Ended |
Feb. 28, 2021 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 8. On May 1, 2020, $228,155 1 March 27, 2020. On December 9, 2020 $228,155 February 28, 2021. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 3 Months Ended |
Feb. 28, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 9. On December 9, 2020 In fiscal 2021, $228,000 21% 7.11%, |
Note 10 - Stockholder's Equity
Note 10 - Stockholder's Equity | 3 Months Ended |
Feb. 28, 2021 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 10. s Equity On March 17, 2021 $0.01 April 1, 2021, April 22, 2021. January 27, 2021 $0.01 February 10, 2021 February 24, 2021. On December 5, 2019, $0.01 $0.02 January 9, 2020. March 4, 2020, $0.01 March 23, 2020 April 08, 2020. 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 March 4, 2021 eleventh |
Note 11 - Uncertainties and Cov
Note 11 - Uncertainties and Covid-19 | 3 Months Ended |
Feb. 28, 2021 | |
Notes to Financial Statements | |
Unusual or Infrequent Items, or Both, Disclosure [Text Block] | 11. 19 The COVID- 19 2020 April May 2020. 2020 first February 28, 2021 While the Coronavirus pandemic has created challenges for restaurants around the country, our franchisees have done what we believe is an excellent job adapting to the changing regulations and government mandates through the last 12 2021 first 2021 10.5% 2020. first 2021 February |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Unaudited Consolidated Financial Statements 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] | Use of Estimates 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, 2023. 2019 13 November 30, 2024 not . In December 2019, 2019 12, Income Taxes (Topic 740 2019 12 740 2019 12 December 15, 2020, 2019 12 November 30, 2022 not . Management does not not February 28, 2021 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Statement of Cash Flows The chart below shows the cash and restricted cash within the consolidated statements of cash flows as of February 28, 2021 February 29, 2020 February 28, 2021 February 29, 2020 Cash and cash equivalents $ 1,332,529 $ 939,402 Restricted cash 389,721 387,209 Total cash and restricted cash $ 1,722,250 $ 1,326,611 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Notes Tables | |
Cash, Cash Equivalents, and Restricted Cash, Cash Flow Statement Reconciliation [Table Text Block] | February 28, 2021 February 29, 2020 Cash and cash equivalents $ 1,332,529 $ 939,402 Restricted cash 389,721 387,209 Total cash and restricted cash $ 1,722,250 $ 1,326,611 |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | For three months ended February 28, 2021 For three months ended February 29, 2020 Revenue recognized at a point in time Sign Shop revenue $ 3,002 $ 909 Settlement revenue 95,307 631 Total revenue at a point in time 98,309 1,540 Revenue recognized over time Royalty revenue 346,660 387,339 Franchise fees 16,839 3,650 License fees 6,750 9,041 Gift card revenue 1,561 2,451 Nontraditional revenue 51,310 64,142 Marketing fund revenue 201,476 227,521 Total revenue over time 624,596 694,144 Grand total $ 722,905 $ 695,684 |
Contract With Customer Asset and Liability, Subject to Change [Table Text Block] | For the Three Months Ended February 28, 2021 Fiscal Year to Date November 30, 2020 Liabilities Contract liabilities - current $ 615,804 $ 599,965 Contract liabilities - long-term 95,334 97,798 Total Contract Liabilities $ 711,138 $ 697,763 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | For the Three Months Ended February 28, 2021 Fiscal Year to Date November 30, 2020 Contract Liabilities at beginning of period $ 697,763 $ 702,834 Revenue Recognized during period (235,660 ) (780,940 ) Additions during period 249,035 775,869 Contract Liabilities at end of period $ 711,138 $ 697,763 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | (a) 2021 $ 45,647 2022 $ 20,281 2023 $ 15,837 2024 $ 13,706 2025 $ 13,540 Thereafter $ 35,833 Total $ 144,844 |
Note 4 - Units Open and Under_2
Note 4 - Units Open and Under Development (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Notes Tables | |
Schedule of Franchisor Disclosure [Table Text Block] | February 28, 2021 February 29, 2020 Stores open: Franchisee-owned stores 71 73 Licensed Units 3 7 74 80 Unopened stores with Franchise Agreements 1 2 Total operating units and units with Franchise Agreements 75 82 |
Note 5 - Earnings Per Share (Ta
Note 5 - Earnings Per Share (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | February 28, 2021 February 29, 2020 Numerator: Net income available to common shareholders $ 333,245 $ 43,194 Denominator: Weighted average outstanding shares Basic and diluted 7,263,508 7,263,508 Earnings per Share - Basic and diluted $ 0.05 $ 0.01 |
Note 7 - Lease Commitments (Tab
Note 7 - Lease Commitments (Tables) | 3 Months Ended |
Feb. 28, 2021 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Undiscounted Rent Payments Year Ending November 30: 2021 $ 84,878 2022 115,673 2023 118,322 2024 40,177 Total Undiscounted Rent Payments $ 359,050 Present Value Discount (24,066 ) Present Value $ 334,984 Short-term lease liability $ 100,937 Long-term lease liability 234,047 Total Operating Lease Liability $ 334,984 |
Note 1 - Nature of Operations (
Note 1 - Nature of Operations (Details Textual) | Feb. 28, 2021 | Feb. 29, 2020 |
Number of Wholly Owned Subsidiaries | 3 | |
Number of Stores | 75 | 82 |
Number of States in which Entity Operates | 21 | |
Franchised Units [Member] | ||
Number of Stores | 71 | 73 |
Licensed Units [Member] | ||
Number of Stores | 3 | 7 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended |
Feb. 28, 2021 | |
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 ($) | Feb. 28, 2021 | Nov. 30, 2020 | Feb. 29, 2020 | Nov. 30, 2019 |
Cash and cash equivalents | $ 1,332,529 | $ 1,236,081 | $ 939,402 | |
Restricted cash | 389,721 | 387,209 | ||
Total cash and restricted cash | $ 1,722,250 | $ 1,632,923 | $ 1,326,611 | $ 1,495,669 |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) | 3 Months Ended |
Feb. 28, 2021 | |
Initial Franchise Term (Year) | 10 years |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Revenues | $ 722,905 | $ 695,684 |
Transferred at Point in Time [Member] | ||
Revenues | 98,309 | 1,540 |
Transferred over Time [Member] | ||
Revenues | 624,596 | 694,144 |
Sign Shop [Member] | Transferred at Point in Time [Member] | ||
Revenues | 3,002 | 909 |
Structured Settlement Annuity [Member] | Transferred at Point in Time [Member] | ||
Revenues | 95,307 | 631 |
Royalty [Member] | ||
Revenues | 346,660 | 387,339 |
Royalty [Member] | Transferred over Time [Member] | ||
Revenues | 346,660 | 387,339 |
Franchise [Member] | ||
Revenues | 16,839 | 3,650 |
Franchise [Member] | Transferred over Time [Member] | ||
Revenues | 16,839 | 3,650 |
License [Member] | Transferred over Time [Member] | ||
Revenues | 6,750 | 9,041 |
Gift Card [Member] | Transferred over Time [Member] | ||
Revenues | 1,561 | 2,451 |
Non-traditional Revenue [Member] | Transferred over Time [Member] | ||
Revenues | 51,310 | 64,142 |
Marketing Fund [Member] | ||
Revenues | 201,476 | 227,521 |
Marketing Fund [Member] | Transferred over Time [Member] | ||
Revenues | $ 201,476 | $ 227,521 |
Note 3 - Revenue Recognition _2
Note 3 - Revenue Recognition - Contract Balances Subject to ASC 606 (Details) - USD ($) | Feb. 28, 2021 | Nov. 30, 2020 |
Contract liabilities - current | $ 615,804 | $ 599,965 |
Contract liabilities - long-term | 95,334 | 97,798 |
Total Contract Liabilities | $ 711,138 | $ 697,763 |
Note 3 - Revenue Recognition _3
Note 3 - Revenue Recognition - Changes in Contract Balances (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Feb. 28, 2021 | Nov. 30, 2020 | |
Contract Liabilities at beginning of period | $ 697,763 | $ 702,834 |
Revenue Recognized during period | (235,660) | (780,940) |
Additions during period | 249,035 | 775,869 |
Contract Liabilities at end of period | $ 711,138 | $ 697,763 |
Note 3 - Revenue Recognition _4
Note 3 - Revenue Recognition - Remaining Performance Obligations (Details) | Feb. 28, 2021USD ($) |
Revenue, remaining performance obligation, amount | $ 144,844 |
Note 3 - Revenue Recognition _5
Note 3 - Revenue Recognition - Remaining Performance Obligations 2 (Details) | Feb. 28, 2021USD ($) | |
Revenue, remaining performance obligation, amount | $ 144,844 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | ||
Revenue, remaining performance obligation, amount | 45,647 | [1] |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-01 | ||
Revenue, remaining performance obligation, amount | 20,281 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-12-01 | ||
Revenue, remaining performance obligation, amount | 15,837 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-01 | ||
Revenue, remaining performance obligation, amount | 13,706 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-01 | ||
Revenue, remaining performance obligation, amount | 13,540 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-01 | ||
Revenue, remaining performance obligation, amount | $ 35,833 | |
[1] | represents the estimate for the remainder of 2021 |
Note 3 - Revenue Recognition _6
Note 3 - Revenue Recognition - Remaining Performance Obligations (Details) (Parentheticals) | Feb. 28, 2021 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-12-01 | |
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, period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-12-01 | |
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, period (Year) | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-12-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Note 4 - Units Open and Under_3
Note 4 - Units Open and Under Development - Operating Units (Details) | Feb. 28, 2021 | Feb. 29, 2020 |
Operating Units and Units with Franchise Agreements | 75 | 82 |
Franchised Units [Member] | ||
Operating Units and Units with Franchise Agreements | 71 | 73 |
Licensed Units [Member] | ||
Operating Units and Units with Franchise Agreements | 3 | 7 |
Total Franchised Owned and Licensed Units [Member] | ||
Operating Units and Units with Franchise Agreements | 74 | 80 |
Unopened Store [Member] | ||
Operating Units and Units with Franchise Agreements | 1 | 2 |
Note 5 - Earnings Per Share - C
Note 5 - Earnings Per Share - Computation of Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Net income available to common shareholders | $ 333,245 | $ 43,194 |
Weighted average shares outstanding - Basic and diluted (in shares) | 7,263,508 | 7,263,508 |
Net Income per share - Basic and Diluted (in dollars per share) | $ 0.05 | $ 0.01 |
Note 6 - Goodwill and Other I_2
Note 6 - Goodwill and Other Intangible Assets (Details Textual) | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Percentage of Royalty Revenues to Previous Fiscal Year | 83.70% | |
Royalty Revenue, Increase (Decrease), Percentage | (10.50%) |
Note 7 - Lease Commitments (Det
Note 7 - Lease Commitments (Details Textual) - USD ($) | Oct. 01, 2018 | Feb. 28, 2021 |
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, Remaining Lease Term (Month) | 3 years 30 days | |
Lessee, Operating Lease, Discount Rate | 5.25% |
Note 7 - Lease Commitments - Gr
Note 7 - Lease Commitments - Gross Future Minimum Annual Rental Commitments (Details) - USD ($) | Feb. 28, 2021 | Nov. 30, 2020 |
2021 | $ 84,878 | |
2022 | 115,673 | |
2023 | 118,322 | |
2024 | 40,177 | |
Total Undiscounted Rent Payments | 359,050 | |
Present Value Discount | (24,066) | |
Present Value | 334,984 | |
Short-term lease liability | 100,937 | $ 99,149 |
Operating lease liability | 234,047 | $ 260,094 |
Total Operating Lease Liability | $ 334,984 |
Note 8 - Payroll Protection P_2
Note 8 - Payroll Protection Program Loan (Details Textual) - USD ($) | May 01, 2020 | Feb. 28, 2021 | Feb. 29, 2020 |
Gain (Loss) on Extinguishment of Debt, Total | $ 228,155 | ||
Paycheck Protection Program CARES Act [Member] | |||
Proceeds from Issuance of Long-term Debt, Total | $ 228,155 | ||
Gain (Loss) on Extinguishment of Debt, Total | $ 228,155 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | |
Feb. 28, 2021 | Feb. 29, 2020 | |
Gain (Loss) on Extinguishment of Debt, Total | $ 228,155 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 7.11% | |
Paycheck Protection Program CARES Act [Member] | ||
Gain (Loss) on Extinguishment of Debt, Total | $ 228,155 |
Note 10 - Stockholder's Equity
Note 10 - Stockholder's Equity (Details Textual) - $ / shares | Mar. 17, 2021 | Jan. 27, 2021 | Mar. 04, 2020 | Dec. 05, 2019 | Feb. 22, 2019 | May 22, 2017 | Aug. 18, 2015 | May 06, 2013 | Feb. 28, 2021 | Feb. 29, 2020 |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.01 | $ 0.03 | ||||||||
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 | ||||||||
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.01 | |||||||||
Quarterly Dividend [Member] | Subsequent Event [Member] | ||||||||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.01 | |||||||||
Special Cash Distribution [Member] | ||||||||||
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.02 |
Note 11 - Uncertainties and C_2
Note 11 - Uncertainties and Covid-19 (Details Textual) | 3 Months Ended |
Feb. 28, 2021 | |
Royalty Revenue, Increase (Decrease), Percentage | (10.50%) |