Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
May 31, 2017 | Jun. 30, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | Rocky Mountain Chocolate Factory, Inc. | |
Entity Central Index Key | 1,616,262 | |
Trading Symbol | rmcf | |
Current Fiscal Year End Date | --02-28 | |
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) | 5,859,372 | |
Document Type | 10-Q | |
Document Period End Date | May 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Revenues | ||
Sales | $ 7,206,939 | $ 7,024,334 |
Franchise and royalty fees | 2,139,508 | 2,351,865 |
Total revenues | 9,346,447 | 9,376,199 |
Costs and Expenses | ||
Cost of sales | 5,014,965 | 4,801,929 |
Franchise costs | 514,792 | 547,713 |
Sales and marketing | 626,352 | 654,129 |
General and administrative | 1,128,706 | 1,240,058 |
Retail operating | 572,824 | 666,949 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $125,616 and $102,473, respectively, included in cost of sales | 194,934 | 222,751 |
Restructuring and acquisition related charges | 60,000 | |
Total costs and expenses | 8,052,573 | 8,193,529 |
Income from Operations | 1,293,874 | 1,182,670 |
Other Income (Expense) | ||
Interest expense | (35,189) | (47,779) |
Interest income | 7,218 | 11,697 |
Other Income (Expense), net | (27,971) | (36,082) |
Income Before Income Taxes | 1,265,903 | 1,146,588 |
Income Tax Provision | 452,231 | 414,754 |
Consolidated Net Income | $ 813,672 | $ 731,834 |
Basic Earnings per Common Share (in dollars per share) | $ 0.14 | $ 0.13 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.14 | $ 0.12 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 5,854,372 | 5,835,515 |
Dilutive Effect of Restricted Stock Units (in shares) | 123,366 | 181,742 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 5,977,738 | 6,017,257 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Depreciation and amortization expense | $ 125,616 | $ 102,473 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | May 31, 2017 | Feb. 28, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 7,641,457 | $ 5,779,195 |
Accounts receivable, less allowance for doubtful accounts of $498,132 and $487,446, respectively | 2,737,412 | 3,855,823 |
Notes receivable, current portion, less current portion of the valuation allowance of $6,100 and $22,147, respectively | 212,136 | 235,612 |
Refundable income taxes | 47,863 | |
Inventories, less reserve for obsolete inventory of $249,388 and $249,051, respectively | 4,835,964 | 4,975,779 |
Other | 324,668 | 256,548 |
Total current assets | 15,751,637 | 15,150,820 |
Property and Equipment, Net | 6,353,573 | 6,457,931 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $42,647 and $26,500, respectively | 296,245 | 370,769 |
Goodwill, net | 1,046,944 | 1,046,944 |
Franchise rights, net | 4,735,281 | 4,826,172 |
Intangible assets, net | 621,060 | 632,207 |
Deferred income taxes | 959,514 | 858,874 |
Other | 66,342 | 74,639 |
Total other assets | 7,725,386 | 7,809,605 |
Total Assets | 29,830,596 | 29,418,356 |
Current Liabilities | ||
Current maturities of long term debt | 1,314,613 | 1,302,501 |
Accounts payable | 1,887,040 | 1,820,470 |
Accrued salaries and wages | 792,620 | 608,510 |
Gift card liabilities | 2,957,094 | 2,921,585 |
Other accrued expenses | 392,179 | 253,497 |
Dividend payable | 702,525 | 702,525 |
Deferred income | 514,808 | 451,171 |
Total current liabilities | 8,560,879 | 8,060,259 |
Long-Term Debt, Less Current Maturities | 2,195,297 | 2,529,240 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Preferred stock, $.001 par value; 250,000 authorized; 0 shares issued and outstanding; Series A Junior Participating Preferred Stock, authorized 50,000 shares; Undesignated series, authorized 200,000 shares | ||
Common stock, $.001 par value, 46,000,000 shares authorized, 5,854,372 shares and 5,854,372 shares issued and outstanding, respectively | 5,854 | 5,854 |
Additional paid-in capital | 5,673,772 | 5,539,357 |
Retained earnings | 13,394,794 | 13,283,646 |
Total stockholders’ equity | 19,074,420 | 18,828,857 |
Total Liabilities and Stockholders’ Equity | $ 29,830,596 | $ 29,418,356 |
Consolidated Balance Sheets (C5
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | May 31, 2017 | Feb. 28, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 498,132 | $ 487,446 |
Notes receivable, current portion of valuation allowance | 6,100 | 22,147 |
Inventories, reserve | 249,388 | 249,051 |
Notes receivable, valuation allowance | $ 42,647 | $ 26,500 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Preferred stock, shares authorized (in shares) | 250,000 | 250,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 46,000,000 | 46,000,000 |
Common stock, shares issued (in shares) | 5,854,372 | 5,854,372 |
Common stock, shares outstanding (in shares) | 5,854,372 | 5,854,372 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Undesignated Series [Member] | ||
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Cash Flows From Operating Activities | ||
Net income | $ 813,672 | $ 731,834 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 320,550 | 325,224 |
Provision for loss on accounts and notes receivable | 29,400 | 29,400 |
Provision for obsolete inventory | 16,896 | 21,826 |
Loss (gain) on sale of property and equipment | 15,617 | (3,012) |
Expense recorded for stock based compensation | 134,415 | 167,774 |
Deferred income | 66,770 | (78,660) |
Deferred income taxes | (100,640) | (19,081) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,089,011 | 714,221 |
Inventories | (92,691) | (179,845) |
Other current assets | (68,236) | (69,846) |
Accounts payable | 278,380 | 118,227 |
Accrued liabilities | 406,164 | 137,352 |
Net cash provided by operating activities | 2,909,308 | 1,895,414 |
Cash Flows From Investing Activities | ||
Addition to notes receivable | (36,000) | |
Proceeds received on notes receivable | 66,196 | 80,652 |
(Costs of) proceeds from sale or distribution of assets | (11,950) | 2,000 |
Purchase of intangible assets | (8,508) | (272,956) |
Purchases of property and equipment | (76,726) | (634,426) |
Other | 8,297 | 28,175 |
Net cash used in investing activities | (22,691) | (832,555) |
Cash Flows From Financing Activities | ||
Payments on long-term debt | (321,831) | (309,654) |
Repurchase of common stock | (145,273) | |
Dividends paid | (702,524) | (700,728) |
Net cash used in financing activities | (1,024,355) | (1,155,655) |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,862,262 | (92,796) |
Cash and Cash Equivalents, Beginning of Period | 5,779,195 | 6,194,948 |
Cash and Cash Equivalents, End of Period | $ 7,641,457 | $ 6,102,152 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations The accompanying consolidated financial statements include the accounts of Rocky Mountain Chocolate Factory, Inc., a Delaware corporation, its wholly-owned subsidiaries, Rocky Mountain Chocolate Factory, Inc. (a Colorado corporation), Aspen Leaf Yogurt, LLC (“ALY”) (a Colorado limited liability company), and U-Swirl International, Inc. (“U-Swirl”) (a Nevada corporation), and its 39% February 29, 2016 The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, In January 2013, its wholly-owned subsidiaries, including ALY, the Company entered into two January 2013, 60% 39% May 31, 2017 In fiscal year (“FY”) 2014, elf-serve frozen yogurt concepts under the names “CherryBerry,” “Yogli Mogli Frozen Yogurt” and “Fuzzy Peach Frozen Yogurt.” In connection with these acquisitions, the Company entered into a credit facility with Wells Fargo, N.A. used to finance the acquisitions of SWRL, and in turn, the Company entered into a loan and security agreement with SWRL to cover the purchase price and other costs associated with the acquisitions (the “SWRL Loan Agreement”). Borrowings under the SWRL Loan Agreement were secured by all of the assets of SWRL, including all of the outstanding stock of its wholly-owned subsidiary, U-Swirl International, Inc. Under the SWRL Loan Agreement, SWRL was subject to various financial covenants. SWRL was not February 29, 2016 January 16, 2016 15% February 29, 2016 February 29, 2016, February 29, 2016. February 29, 2016, no U-Swirl operates self-serve frozen yogurt cafés under the names “U-Swirl,” “Yogurtini,” “CherryBerry,” “Yogli Mogli Frozen Yogurt,” “Fuzzy Peach Frozen Yogurt,” “Let’s Yo!” and “Aspen Leaf Yogurt”. The Company ’s revenues are currently derived from three at May 31, 2017: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 4 4 Franchise stores – Domestic stores and kiosks 9 188 197 International License Stores 2 89 91 Cold Stone Creamery – co-branded 8 83 91 U-Swirl Stores (Including all associated brands) Company-owned stores - 2 2 Company-owned stores – co-branded - 3 3 Franchise stores – Domestic stores * 125 125 Franchise stores – Domestic – co-branded * 15 15 International License Stores - 2 2 Total 19 511 530 *U-Swirl cafés and the brands franchised by U-Swirl have historically utilized a development area sales model. The result is that many areas are under development and the rights to open cafés within the development areas have been established, but there is no Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and Securities and Exchange Commission regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three May 31, 2017 not These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10 February 28, 2017. Subsequent Events Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no Recent Accounting Pronouncements In January 2017, ’s carrying amount over its fair value. The option to perform a qualitative assessment first not 2020 2017. no In August 2016, 2016 15, 230 No. 2016 15 eight not No. 2016 15 December 15, 2017, March 1, 2018. not In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2020 the adoption of ASU 2016 13 In March 2016, No. 2016 09, — Stock Compensation, (Topic 718 No. 2016 09 December 15, 2016, March 1, 2017. may first 2018 not In February 2016, 2016 02, 842 840 December 15, 2018, In January 2016, 2016 01, 825 10 2016 01 first 2019, not In May 2014, No. 2014 09, 606 605, December 15, 2017, December 31, 2016. March 1, 2018. not |
Note 2 - Earnings Per Share
Note 2 - Earnings Per Share | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 2 Basic earnings per share is calculated using the weighted -average number of common shares outstanding. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through stock options and restricted stock units. For the three May 31, 2017 2016, no |
Note 3 - Inventories
Note 3 - Inventories | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3 – INVENTORIES The Company held the following inventory at May 31, 2017 February 28, 2017: May 31, 2017 February 28, 2017 Ingredients and supplies $ 2,931,704 $ 3,021,220 Finished candy 2,087,954 2,137,609 U-Swirl food and packaging 65,694 66,001 Reserve for slow moving inventory (249,388 ) (249,051 ) Total inventories $ 4,835,964 $ 4,975,779 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 Property and equipment at May 31, 2017 February 28, 2017 May 31, 2017 February 28, 2017 Land $ 513,618 $ 513,618 Building 4,884,173 4,787,855 Machinery and equipment 10,586,257 10,598,355 Furniture and fixtures 1,049,340 1,047,319 Leasehold improvements 1,534,712 1,531,112 Transportation equipment 434,091 418,402 Asset impairment (47,891 ) (47,891 ) 18,954,300 18,848,770 Less accumulated depreciation (12,600,727 ) (12,390,839 ) Property and equipment , net $ 6,353,573 $ 6,457,931 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 5 ’ EQUITY Cash Dividend The Company paid a quarterly cash dividend of $0.12 March 10, 2017 February 24, 2017. $0.12 May 22, 2017 June 16, 2017 June 6, 2017. Future declaration of dividends will depend on, among other things, the Company's results of operations, capital requirements, financial condition and on such other factors as the Company's Board of Directors may long-term interest of the Company’s stockholders. Stock Repurchases On July 15, 2014, $3.0 On January 13, 2015, $2,058,000 May 21, 2015, $2,090,000 not three May 31, 2017. May 31, 2017, $638,000 Stock-Based Compensation At May 31, 2017, The Company recognized $ 134,415 three May 31, 2017 $167,774 three May 31, 2016. The following table summarizes stock option transactions for common stock during the three May 31, 2017 2016: Three Months Ended May 31, 201 7 2016 Outstanding stock options as of February 28 or 29: - 12,936 Granted - - Exercised - - Cancelled/forfeited - (12,936 ) Outstanding stock options as of May 31: - - Weighted average exercise price n/a n/a Weighted average remaining contractual term (in years) n/a n/a The following table summarizes non-vested restricted stock unit transactions for common stock during the three May 31, 201 7 2016: Three Months Ended May 31, 2017 201 6 Outstanding non-vested restricted stock units as of February 28 or 29: 123,658 181,742 Granted - - Vested - - Cancelled/forfeited (560 ) - Outstanding non-vested restricted stock units as of May 31: 123,098 181,742 Weighted average grant date fair value $ 12.21 $ 12.22 Weighted average remaining vesting period (in years) 1.98 2.97 The Company did not three May 31, 2017 2,000 three May 31, 2016. $0 $20,420 three May 31, 2017 2016, During the three May 31, 2017, $134,415 17% 20% five six May 31, 2017, $1,037,796, 1.98 |
Note 6 - Supplemental Cash Flow
Note 6 - Supplemental Cash Flow Information | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 6 – SUPPLEMENTAL CASH FLOW INFORMATION Three Months Ended May 31 , Cash paid (received) for: 201 7 201 6 Interest , net $ 26,929 $ 35,045 Income taxes 349,250 217,123 Non-Cash Operating Activities Accrued Inventory 315,407 240,031 Non-Cash Financing Activities Dividend payable $ 702,525 $ 699,009 Sale of assets and inventory to buyers for notes receivable: Long-lived assets $ - $ 30,989 |
Note 7 - Operating Segments
Note 7 - Operating Segments | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 7 The Company classifies its business interests into five 1 10 February 28, 2017. Three Months Ended May 31, 201 7 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,606,485 $ 6,498,210 $ 362,027 $ 1,195,310 $ - $ 9,662,032 Intersegment revenues (1,306 ) (314,279 ) - - - (315,585 ) Revenue from external customers 1,605,179 6,183,931 362,027 1,195,310 - 9,346,447 Segment profit (loss) 762,689 1,387,039 (36,431 ) 240,196 (1,087,590 ) 1,265,903 Total assets 1,192,859 11,490,941 1,087,541 9,508,948 6,550,307 29,830,596 Capital expenditures - 49,060 3,600 2,616 21,450 76,726 Total depreciation & amortization 11,392 129,863 3,827 143,090 32,378 $ 320,550 Three Months Ended May 31, 201 6 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,548,035 $ 6,052,743 $ 305,576 $ 1,762,835 $ - $ 9,669,189 Intersegment revenues (1,361 ) (291,629 ) - - - (292,990 ) Revenue from external customers 1,546,674 5,761,114 305,576 1,762,835 - 9,376,199 Segment profit (loss) 670,628 1,233,006 (14,666 ) 467,779 (1,210,159 ) 1,146,588 Total assets 1,355,195 11,504,386 1,008,708 10,673,169 5,637,138 30,178,596 Capital expenditures 9,126 477,121 22 24,344 123,813 634,426 Total depreciation & amortization $ 13,656 $ 106,278 $ 3,348 $ 165,965 $ 35,977 $ 325,224 Revenue from one ’s Manufacturing segment represented approximately $1.9 20.3 three May 31, 2017 $1.4 14.9 three May 31, 2016. |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8 – GOODWILL AND INTANGIBLE ASSETS Intangible assets at May 31, 2017 February 28, 2017 May 31, 20 17 February 2 8, 2017 Amortizatio n Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 211,528 $ 220,778 $ 211,152 Packaging licenses 3 - 5 120,830 120,830 120,830 120,830 Packaging design 10 430,973 430,973 430,973 430,973 Trademark /Non-competition agreements 5 - 20 715,340 103,530 715,339 92,758 Franchise Rights 20 5,979,637 1,244,356 5,971,129 1,144,957 Total $ 7,467,558 $ 2,111,217 $ 7,459,049 $ 2,000,670 Intangible assets not subject to amortization Franchising segment- Company stores goodwill $ 1,099,328 $ 267,020 $ 1,099,328 $ 267,020 Franchising goodwill 295,000 197,682 295,000 197,682 Manufacturing segment-Goodwill 295,000 197,682 295,000 197,682 Trademark 20,000 - 20,000 - Total 1,709,328 662,384 1,709,328 662,384 Total intangible assets $ 9,176,886 $ 2,773,601 $ 9,168,377 $ 2,663,054 Effective March 1, 2002, 350, no not March 1, 2002. Amortization expense related to intangible assets totaled $110,546 $104,683 three May 31, 2017 2016, At May 31, 2017, 2018 335,037 2019 452,069 2020 438,912 202 1 427,203 2022 404,022 Thereafter 3,299,098 Total $ 5,356,341 |
Note 9 - Restructuring and Acqu
Note 9 - Restructuring and Acquisition Related Charges | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 9 The Company did not three May 31, 2017. Restructuring and acquisition charges incurred were comprised of lease settlement costs of $60,000 three May 31, 2016, |
Note 10 - Note Payable
Note 10 - Note Payable | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 10 The Company ’s long-term debt is comprised of a promissory note, the proceeds of which were loaned to SWRL and used to finance SWRL’s business acquisitions (unpaid balance as of May 31, 2017, $3.5 As of May 31, 2017 February 28, 2017, May 31, 2017 February 2 8, 2017 Promissory note $ 3,509,910 $ 3,831,741 Less: current maturities (1,314,613 ) (1,302,501 ) Long-term obligations $ 2,195,297 $ 2,529,240 The following table summarizes annual maturities of our notes payable as of May 31, 2017: Amount 2018 $ 980,646 2019 1,352,894 2020 1,176,370 Total minimum payments 3,509,910 Less: current maturities (1,314,613 ) Long-term obligations $ 2,195,297 |
Note 11 - Contingencies
Note 11 - Contingencies | 3 Months Ended |
May 31, 2017 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | NOTE 11 The Company is party to various legal proceedings arising in the ordinary course of business from time to time. Management believes that the resolution of these matters will not ’s financial position, results of operations or cash flows. In January 2014, SWRL entered into an Asset Purchase Agreement (the “CherryBerry Purchase Agreement”) with CherryBerry Enterprises LLC, CherryBerry Corporate LLC, CherryBerry LLC, and their respective owners (collectively, the “CherryBerry Selling Parties”), pursuant to which SWRL acquired the franchise rights of frozen yogurt stores branded as “CherryBerry” (the “CherryBerry Acquisition”). As a part of the consideration for the CherryBerry Acquisition, SWRL agreed to issue an aggregate of 4,000,000 one February 2015. first $0.50 $0.50 February 28, 2017, $1,800,000. not February 28, 2017. July August 2015, $205,000 In August 2015, ’s common stock to decline and thereafter making an improper demand for the shortfall payment described above, and certain other actions in violation of various provisions of the CherryBerry Purchase Agreement. SWRL sought unspecified damages, attorney’s fees, other costs, and a determination that the shortfall payment arrangement is void. In September 2015, third not On January 13, 2016, third January 13, 2016, January 13, 2016, not not April 2016, ’ motion and administratively closed the case. In addition, in April 2016, April 8, 2016, May 9, 2016, June 6, 2016. September 18, 2017. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
May 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial reporting and Securities and Exchange Commission regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. The reclassifications had no In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three May 31, 2017 not These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10 February 28, 2017. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2017, ’s carrying amount over its fair value. The option to perform a qualitative assessment first not 2020 2017. no In August 2016, 2016 15, 230 No. 2016 15 eight not No. 2016 15 December 15, 2017, March 1, 2018. not In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2020 the adoption of ASU 2016 13 In March 2016, No. 2016 09, — Stock Compensation, (Topic 718 No. 2016 09 December 15, 2016, March 1, 2017. may No. 2016 09 February 28, 2017 February 29, 2016, $34,000 $20,000, In February 2016, 2016 02, 842 840 December 15, 2018, In January 2016, 2016 01, 825 10 2016 01 first 2019, not In May 2014, No. 2014 09, 606 605, December 15, 2017, December 31, 2016. March 1, 2018. not |
Note 1 - Nature of Operations19
Note 1 - Nature of Operations and Basis of Presentation (Tables) | 3 Months Ended |
May 31, 2017 | |
Notes Tables | |
Number of Stores [Table Text Block] | Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 4 4 Franchise stores – Domestic stores and kiosks 9 188 197 International License Stores 2 89 91 Cold Stone Creamery – co-branded 8 83 91 U-Swirl Stores (Including all associated brands) Company-owned stores - 2 2 Company-owned stores – co-branded - 3 3 Franchise stores – Domestic stores * 125 125 Franchise stores – Domestic – co-branded * 15 15 International License Stores - 2 2 Total 19 511 530 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 3 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | May 31, 2017 February 28, 2017 Ingredients and supplies $ 2,931,704 $ 3,021,220 Finished candy 2,087,954 2,137,609 U-Swirl food and packaging 65,694 66,001 Reserve for slow moving inventory (249,388 ) (249,051 ) Total inventories $ 4,835,964 $ 4,975,779 |
Note 4 - Property and Equipme21
Note 4 - Property and Equipment, Net (Tables) | 3 Months Ended |
May 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | May 31, 2017 February 28, 2017 Land $ 513,618 $ 513,618 Building 4,884,173 4,787,855 Machinery and equipment 10,586,257 10,598,355 Furniture and fixtures 1,049,340 1,047,319 Leasehold improvements 1,534,712 1,531,112 Transportation equipment 434,091 418,402 Asset impairment (47,891 ) (47,891 ) 18,954,300 18,848,770 Less accumulated depreciation (12,600,727 ) (12,390,839 ) Property and equipment , net $ 6,353,573 $ 6,457,931 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Tables) | 3 Months Ended |
May 31, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Three Months Ended May 31, 201 7 2016 Outstanding stock options as of February 28 or 29: - 12,936 Granted - - Exercised - - Cancelled/forfeited - (12,936 ) Outstanding stock options as of May 31: - - Weighted average exercise price n/a n/a Weighted average remaining contractual term (in years) n/a n/a |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Three Months Ended May 31, 2017 201 6 Outstanding non-vested restricted stock units as of February 28 or 29: 123,658 181,742 Granted - - Vested - - Cancelled/forfeited (560 ) - Outstanding non-vested restricted stock units as of May 31: 123,098 181,742 Weighted average grant date fair value $ 12.21 $ 12.22 Weighted average remaining vesting period (in years) 1.98 2.97 |
Note 6 - Supplemental Cash Fl23
Note 6 - Supplemental Cash Flow Information (Tables) | 3 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Three Months Ended May 31 , Cash paid (received) for: 201 7 201 6 Interest , net $ 26,929 $ 35,045 Income taxes 349,250 217,123 Non-Cash Operating Activities Accrued Inventory 315,407 240,031 Non-Cash Financing Activities Dividend payable $ 702,525 $ 699,009 Sale of assets and inventory to buyers for notes receivable: Long-lived assets $ - $ 30,989 |
Note 7 - Operating Segments (Ta
Note 7 - Operating Segments (Tables) | 3 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended May 31, 201 7 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,606,485 $ 6,498,210 $ 362,027 $ 1,195,310 $ - $ 9,662,032 Intersegment revenues (1,306 ) (314,279 ) - - - (315,585 ) Revenue from external customers 1,605,179 6,183,931 362,027 1,195,310 - 9,346,447 Segment profit (loss) 762,689 1,387,039 (36,431 ) 240,196 (1,087,590 ) 1,265,903 Total assets 1,192,859 11,490,941 1,087,541 9,508,948 6,550,307 29,830,596 Capital expenditures - 49,060 3,600 2,616 21,450 76,726 Total depreciation & amortization 11,392 129,863 3,827 143,090 32,378 $ 320,550 Three Months Ended May 31, 201 6 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,548,035 $ 6,052,743 $ 305,576 $ 1,762,835 $ - $ 9,669,189 Intersegment revenues (1,361 ) (291,629 ) - - - (292,990 ) Revenue from external customers 1,546,674 5,761,114 305,576 1,762,835 - 9,376,199 Segment profit (loss) 670,628 1,233,006 (14,666 ) 467,779 (1,210,159 ) 1,146,588 Total assets 1,355,195 11,504,386 1,008,708 10,673,169 5,637,138 30,178,596 Capital expenditures 9,126 477,121 22 24,344 123,813 634,426 Total depreciation & amortization $ 13,656 $ 106,278 $ 3,348 $ 165,965 $ 35,977 $ 325,224 |
Note 8 - Goodwill and Intangi25
Note 8 - Goodwill and Intangible Assets (Tables) | 3 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | May 31, 20 17 February 2 8, 2017 Amortizatio n Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 211,528 $ 220,778 $ 211,152 Packaging licenses 3 - 5 120,830 120,830 120,830 120,830 Packaging design 10 430,973 430,973 430,973 430,973 Trademark /Non-competition agreements 5 - 20 715,340 103,530 715,339 92,758 Franchise Rights 20 5,979,637 1,244,356 5,971,129 1,144,957 Total $ 7,467,558 $ 2,111,217 $ 7,459,049 $ 2,000,670 Intangible assets not subject to amortization Franchising segment- Company stores goodwill $ 1,099,328 $ 267,020 $ 1,099,328 $ 267,020 Franchising goodwill 295,000 197,682 295,000 197,682 Manufacturing segment-Goodwill 295,000 197,682 295,000 197,682 Trademark 20,000 - 20,000 - Total 1,709,328 662,384 1,709,328 662,384 Total intangible assets $ 9,176,886 $ 2,773,601 $ 9,168,377 $ 2,663,054 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2018 335,037 2019 452,069 2020 438,912 202 1 427,203 2022 404,022 Thereafter 3,299,098 Total $ 5,356,341 |
Note 10 - Note Payable (Tables)
Note 10 - Note Payable (Tables) | 3 Months Ended |
May 31, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | May 31, 2017 February 2 8, 2017 Promissory note $ 3,509,910 $ 3,831,741 Less: current maturities (1,314,613 ) (1,302,501 ) Long-term obligations $ 2,195,297 $ 2,529,240 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Amount 2018 $ 980,646 2019 1,352,894 2020 1,176,370 Total minimum payments 3,509,910 Less: current maturities (1,314,613 ) Long-term obligations $ 2,195,297 |
Note 1 - Nature of Operations27
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) - USD ($) | May 31, 2017 | Feb. 28, 2017 | May 31, 2016 | Feb. 29, 2016 | Feb. 28, 2014 | Jan. 31, 2013 |
Assets | $ 29,830,596 | $ 29,418,356 | $ 30,178,596 | |||
U-Swirl Loan Agreement [Member] | USwirl Inc [Member] | ||||||
Loan Agreement, Default Rate | 15.00% | |||||
USwirl Inc [Member] | ||||||
Noncontrolling Interest, Ownership Percentage by Parent | 39.00% | |||||
Equity Method Investment, Ownership Percentage | 60.00% | |||||
USwirl Inc [Member] | Operating Assets [Member] | ||||||
Assets | $ 0 |
Note 1 - Nature of Operations28
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | May 31, 2017 | |
Number of stores | 530 | |
Sold Not Yet Open [Member] | ||
Number of stores | 19 | |
Open [Member] | ||
Number of stores | 511 | |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 4 | |
Company Owned Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 2 | |
Company Owned Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 0 | |
Company Owned Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | ||
Company Owned Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 4 | |
Company Owned Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 2 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 197 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 9 | |
Franchise Stores - Domestic Stores and Kiosks [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 188 | |
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 91 | |
International License Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 2 | |
International License Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 2 | |
International License Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | ||
International License Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 89 | |
International License Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 2 | |
Cold Stone Creamery - Co-Branded [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 91 | |
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 8 | |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 83 | |
Company Owned Stores Co-branded [Member] | USwirl Inc [Member] | ||
Number of stores | 3 | |
Company Owned Stores Co-branded [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | ||
Company Owned Stores Co-branded [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 3 | |
Franchise Stores - North American Stores [Member] | USwirl Inc [Member] | ||
Number of stores | 125 | |
Franchise Stores - North American Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | [1] | |
Franchise Stores - North American Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 125 | |
Franchise Stores - North American - Co-branded [Member] | USwirl Inc [Member] | ||
Number of stores | 15 | |
Franchise Stores - North American - Co-branded [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | [1] | |
Franchise Stores - North American - Co-branded [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 15 | |
[1] | U-Swirl cafes and the brands franchised by U-Swirl have historically utilized a development area sales model. The result is that many areas are under development and the rights to open cafes within the development areas have been established, but there is no assurance that any individual development area will result in a determinable number of cafe openings. |
Note 2 - Earnings Per Share (De
Note 2 - Earnings Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | May 31, 2017 | Feb. 28, 2017 |
Ingredients and supplies | $ 2,931,704 | $ 3,021,220 |
Finished candy | 2,087,954 | 2,137,609 |
U-Swirl food and packaging | 65,694 | 66,001 |
Reserve for slow moving inventory | (249,388) | (249,051) |
Total inventories | $ 4,835,964 | $ 4,975,779 |
Note 4 - Property and Equipme31
Note 4 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
May 31, 2017 | Feb. 28, 2017 | |
Asset impairment | $ (47,891) | $ (47,891) |
Property, plant and equipment, gross | 18,954,300 | 18,848,770 |
Less accumulated depreciation | (12,600,727) | (12,390,839) |
Property and equipment, net | 6,353,573 | 6,457,931 |
Land [Member] | ||
Property, plant and equipment, gross | 513,618 | 513,618 |
Building [Member] | ||
Property, plant and equipment, gross | 4,884,173 | 4,787,855 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 10,586,257 | 10,598,355 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 1,049,340 | 1,047,319 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 1,534,712 | 1,531,112 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 434,091 | $ 418,402 |
Note 5 - Stockholders' Equity32
Note 5 - Stockholders' Equity (Details Textual) - USD ($) | May 22, 2017 | Mar. 10, 2017 | May 31, 2017 | May 31, 2016 | May 21, 2015 | Jan. 13, 2015 | Jul. 15, 2014 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.12 | $ 0.12 | |||||
Stock Repurchase Program, Authorized Amount | $ 2,058,000 | $ 3,000,000 | |||||
Stock Repurchase Program, Additional Authorized Amount | $ 2,090,000 | ||||||
Treasury Stock, Shares, Acquired | 0 | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 638,000 | ||||||
Allocated Share-based Compensation Expense | $ 134,415 | $ 167,774 | |||||
Unrestricted Shares of Stock [Member] | |||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 0 | 2,000 | |||||
Allocated Share-based Compensation Expense | $ 0 | $ 20,420 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Allocated Share-based Compensation Expense | 134,415 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,037,796 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 357 days | ||||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 17.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 6 years |
Note 5 - Stockholders' Equity -
Note 5 - Stockholders' Equity - Stock Option Transactions for Common Stock (Details) - shares | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Outstanding stock options (in shares) | 12,936 | |
Granted (in shares) | ||
Exercised (in shares) | ||
Cancelled/forfeited (in shares) | (12,936) | |
Outstanding stock options (in shares) |
Note 5 - Stockholders' Equity34
Note 5 - Stockholders' Equity - Non-vested Restricted Stock Unit Transactions for Common Stock (Details) - $ / shares | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Outstanding non-vested restricted stock units (in shares) | 123,658 | 181,742 |
Granted (in shares) | ||
Vested (in shares) | ||
Cancelled/forfeited (in shares) | (560) | |
Outstanding non-vested restricted stock units (in shares) | 123,098 | 181,742 |
Weighted average grant date fair value (in dollars per share) | $ 12.21 | $ 12.22 |
Weighted average remaining vesting period (in years) (Year) | 1 year 357 days | 2 years 354 days |
Note 6 - Supplemental Cash Fl35
Note 6 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Interest, net | $ 26,929 | $ 35,045 |
Income taxes | 349,250 | 217,123 |
Accrued Inventory | 315,407 | 240,031 |
Dividend payable | 702,525 | 699,009 |
Sale of Long Lived Assets [Member] | ||
Notes receivable | $ 30,989 |
Note 7 - Operating Segments (De
Note 7 - Operating Segments (Details Textual) | 3 Months Ended | |
May 31, 2017USD ($) | May 31, 2016USD ($) | |
Number of Reportable Segments | 5 | |
Revenues | $ 9,346,447 | $ 9,376,199 |
Manufacturing [Member] | ||
Revenues | $ 6,183,931 | 5,761,114 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | ||
Number of Major Customers | 1 | |
Revenues | $ 1,900,000 | $ 1,400,000 |
Concentration Risk, Percentage | 20.30% | 14.90% |
Note 7 - Operating Segments - S
Note 7 - Operating Segments - Segment Information (Details) - USD ($) | 3 Months Ended | ||
May 31, 2017 | May 31, 2016 | Feb. 28, 2017 | |
Revenues | $ 9,346,447 | $ 9,376,199 | |
Segment profit (loss) | 1,265,903 | 1,146,588 | |
Assets | 29,830,596 | 30,178,596 | $ 29,418,356 |
Capital expenditures | 76,726 | 634,426 | |
Total depreciation and amortization | 320,550 | 325,224 | |
Franchising [Member] | |||
Revenues | 1,605,179 | 1,546,674 | |
Segment profit (loss) | 762,689 | 670,628 | |
Assets | 1,192,859 | 1,355,195 | |
Capital expenditures | 9,126 | ||
Total depreciation and amortization | 11,392 | 13,656 | |
Manufacturing [Member] | |||
Revenues | 6,183,931 | 5,761,114 | |
Segment profit (loss) | 1,387,039 | 1,233,006 | |
Assets | 11,490,941 | 11,504,386 | |
Capital expenditures | 49,060 | 477,121 | |
Total depreciation and amortization | 129,863 | 106,278 | |
Retail [Member] | |||
Revenues | 362,027 | 305,576 | |
Segment profit (loss) | (36,431) | (14,666) | |
Assets | 1,087,541 | 1,008,708 | |
Capital expenditures | 3,600 | 22 | |
Total depreciation and amortization | 3,827 | 3,348 | |
U-Swirl Segment [Member] | |||
Revenues | 1,195,310 | 1,762,835 | |
Segment profit (loss) | 240,196 | 467,779 | |
Assets | 9,508,948 | 10,673,169 | |
Capital expenditures | 2,616 | 24,344 | |
Total depreciation and amortization | 143,090 | 165,965 | |
Other Segments [Member] | |||
Revenues | 0 | 0 | |
Segment profit (loss) | (1,087,590) | (1,210,159) | |
Assets | 6,550,307 | 5,637,138 | |
Capital expenditures | 21,450 | 123,813 | |
Total depreciation and amortization | 32,378 | 35,977 | |
Operating Segments [Member] | |||
Revenues | 9,662,032 | 9,669,189 | |
Operating Segments [Member] | Franchising [Member] | |||
Revenues | 1,606,485 | 1,548,035 | |
Operating Segments [Member] | Manufacturing [Member] | |||
Revenues | 6,498,210 | 6,052,743 | |
Operating Segments [Member] | Retail [Member] | |||
Revenues | 362,027 | 305,576 | |
Operating Segments [Member] | U-Swirl Segment [Member] | |||
Revenues | 1,195,310 | 1,762,835 | |
Operating Segments [Member] | Other Segments [Member] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | |||
Revenues | (315,585) | (292,990) | |
Intersegment Eliminations [Member] | Franchising [Member] | |||
Revenues | (1,306) | (1,361) | |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||
Revenues | (314,279) | (291,629) | |
Intersegment Eliminations [Member] | Retail [Member] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | Other Segments [Member] | |||
Revenues | $ 0 | $ 0 |
Note 8 - Goodwill and Intangi38
Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Amortization of Intangible Assets | $ 110,546 | $ 104,683 |
Note 8 - Goodwill and Intangi39
Note 8 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 3 Months Ended | |
May 31, 2017 | Feb. 28, 2017 | |
Intangible assets subject to amortization, gross carrying value | $ 7,467,558 | $ 7,459,049 |
Intangible assets subject to amortization, accumulated amortization | 2,111,217 | 2,000,670 |
Total intangible assets | 2,773,601 | 2,663,054 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 662,384 | 662,384 |
Intangible assets not subject to amortization, gross carrying value | 1,709,328 | 1,709,328 |
Total | 662,384 | 662,384 |
Total intangible assets | 9,176,886 | 9,168,377 |
Company Stores Goodwill [Member] | ||
Intangible assets not subject to amortization, accumulated goodwill impairment | 267,020 | 267,020 |
Intangible assets not subject to amortization, gross carrying value | 1,099,328 | 1,099,328 |
Total | 267,020 | 267,020 |
Franchising Goodwill [Member] | ||
Intangible assets not subject to amortization, accumulated goodwill impairment | 197,682 | 197,682 |
Intangible assets not subject to amortization, gross carrying value | 295,000 | 295,000 |
Total | 197,682 | 197,682 |
Manufacturing Segment Goodwill [Member] | ||
Intangible assets not subject to amortization, accumulated goodwill impairment | 197,682 | 197,682 |
Intangible assets not subject to amortization, gross carrying value | 295,000 | 295,000 |
Total | 197,682 | 197,682 |
Trademarks [Member] | ||
Intangible assets not subject to amortization, accumulated goodwill impairment | ||
Intangible assets not subject to amortization, gross carrying value | 20,000 | 20,000 |
Total | ||
Store Design [Member] | ||
Intangible assets subject to amortization, gross carrying value | 220,778 | 220,778 |
Intangible assets subject to amortization, accumulated amortization | $ 211,528 | 211,152 |
Amortization Period (Year) | 10 years | |
Packaging Licenses [Member] | ||
Intangible assets subject to amortization, gross carrying value | $ 120,830 | 120,830 |
Intangible assets subject to amortization, accumulated amortization | $ 120,830 | 120,830 |
Packaging Licenses [Member] | Minimum [Member] | ||
Amortization Period (Year) | 3 years | |
Packaging Licenses [Member] | Maximum [Member] | ||
Amortization Period (Year) | 5 years | |
Packaging Design [Member] | ||
Intangible assets subject to amortization, gross carrying value | $ 430,973 | 430,973 |
Intangible assets subject to amortization, accumulated amortization | $ 430,973 | 430,973 |
Amortization Period (Year) | 10 years | |
Trademarks and Non Competition Agreement [Member] | ||
Intangible assets subject to amortization, gross carrying value | $ 715,340 | 715,339 |
Intangible assets subject to amortization, accumulated amortization | $ 103,530 | 92,758 |
Trademarks and Non Competition Agreement [Member] | Minimum [Member] | ||
Amortization Period (Year) | 5 years | |
Trademarks and Non Competition Agreement [Member] | Maximum [Member] | ||
Amortization Period (Year) | 20 years | |
Franchise Rights [Member] | ||
Intangible assets subject to amortization, gross carrying value | $ 5,979,637 | 5,971,129 |
Intangible assets subject to amortization, accumulated amortization | $ 1,244,356 | $ 1,144,957 |
Amortization Period (Year) | 20 years |
Note 8 - Goodwill and Intangi40
Note 8 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | May 31, 2017USD ($) |
2,018 | $ 335,037 |
2,019 | 452,069 |
2,020 | 438,912 |
2,021 | 427,203 |
2,022 | 404,022 |
Thereafter | 3,299,098 |
Total | $ 5,356,341 |
Note 9 - Restructuring and Ac41
Note 9 - Restructuring and Acquisition Related Charges (Details Textual) - USD ($) | 3 Months Ended | |
May 31, 2017 | May 31, 2016 | |
Restructuring Charges | $ 0 | |
Lease Settlement Costs [Member] | ||
Restructuring Charges | $ 60,000 |
Note 10 - Note Payable (Details
Note 10 - Note Payable (Details Textual) - USD ($) | May 31, 2017 | Feb. 28, 2017 |
Notes Payable | $ 3,509,910 | $ 3,831,741 |
Note 10 - Note Payable - Long-t
Note 10 - Note Payable - Long-term Note Payable (Details) - USD ($) | May 31, 2017 | Feb. 28, 2017 |
Notes Payable | $ 3,509,910 | $ 3,831,741 |
Less: current maturities | (1,314,613) | (1,302,501) |
Long-term obligations | $ 2,195,297 | $ 2,529,240 |
Note 10 - Note Payable - Annual
Note 10 - Note Payable - Annual Maturities of Notes Payable (Details) - USD ($) | May 31, 2017 | Feb. 28, 2017 |
2,018 | $ 980,646 | |
2,019 | 1,352,894 | |
2,020 | 1,176,370 | |
Total minimum payments | 3,509,910 | |
Less: current maturities | (1,314,613) | $ (1,302,501) |
Long-term obligations | $ 2,195,297 | $ 2,529,240 |
Note 11 - Contingencies (Detail
Note 11 - Contingencies (Details Textual) - USD ($) | 1 Months Ended | 2 Months Ended | |
Feb. 28, 2015 | Aug. 31, 2015 | Feb. 28, 2017 | |
Business Combination Shortfall Payment | $ 1,800,000 | ||
CherryBerry [Member] | USwirl Inc [Member] | |||
Stock Issued During Period, Shares, Acquisitions | 4,000,000 | ||
Lock-up Agreement | 1 year | ||
Business Combination, Contingent Consideration, Sale of Stock, Price Per Share | $ 0.50 | ||
Requested Shortfall Payment | $ 205,000 | ||
Business Combination, Contingent Consideration, Liability | $ 0 |