Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Nov. 30, 2017 | Dec. 31, 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) | 5,903,436 | |
Document Type | 10-Q | |
Document Period End Date | Nov. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Revenues | ||||
Sales | $ 8,351,583 | $ 8,250,611 | $ 21,621,903 | $ 21,591,420 |
Franchise and royalty fees | 1,609,989 | 1,704,628 | 5,952,807 | 6,341,980 |
Total revenues | 9,961,572 | 9,955,239 | 27,574,710 | 27,933,400 |
Costs and Expenses | ||||
Cost of sales | 6,040,004 | 5,544,155 | 14,907,440 | 14,373,548 |
Franchise costs | 515,149 | 520,619 | 1,588,348 | 1,571,619 |
Sales and marketing | 593,033 | 641,976 | 1,785,416 | 1,959,115 |
General and administrative | 827,215 | 880,455 | 2,932,568 | 3,101,662 |
Retail operating | 584,771 | 551,168 | 1,774,522 | 1,876,783 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $134,350, $118,213, $387,849 and $324,412, respectively, included in cost of sales | 201,939 | 201,512 | 591,863 | 638,220 |
Restructuring and acquisition-related charges | 60,000 | |||
Total costs and expenses | 8,762,111 | 8,339,885 | 23,580,157 | 23,580,947 |
Income from Operations | 1,199,461 | 1,615,354 | 3,994,553 | 4,352,453 |
Other Income (Expense) | ||||
Interest expense | (28,661) | (40,842) | (95,938) | (132,884) |
Interest income | 6,396 | 9,543 | 19,827 | 32,540 |
Other income (expense), net | (22,265) | (31,299) | (76,111) | (100,344) |
Income Before Income Taxes | 1,177,196 | 1,584,055 | 3,918,442 | 4,252,109 |
Income Tax Provision | 426,140 | 572,256 | 1,425,430 | 1,533,663 |
Consolidated Net Income | $ 751,056 | $ 1,011,799 | $ 2,493,012 | $ 2,718,446 |
Basic Earnings per Common Share (in dollars per share) | $ 0.13 | $ 0.17 | $ 0.42 | $ 0.47 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.13 | $ 0.17 | $ 0.42 | $ 0.45 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 5,903,436 | 5,874,366 | 5,878,086 | 5,839,603 |
Dilutive Effect of Restricted Stock Units (in shares) | 78,029 | 133,658 | 102,145 | 159,215 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 5,981,465 | 6,008,024 | 5,980,231 | 5,998,818 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Depreciation and amortization expense | $ 134,350 | $ 118,213 | $ 387,849 | $ 324,412 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Nov. 30, 2017 | Feb. 28, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 4,066,918 | $ 5,779,195 |
Accounts receivable, less allowance for doubtful accounts of $565,339 and $487,446, respectively | 4,991,026 | 3,855,823 |
Notes receivable, current portion, less current portion of the valuation allowance of $6,100 and $22,147, respectively | 133,642 | 235,612 |
Refundable income taxes | 5,055 | 47,863 |
Inventories, less reserve for slow moving inventory of $261,377 and $249,051, respectively | 5,687,275 | 4,975,779 |
Other | 282,840 | 256,548 |
Total current assets | 15,166,756 | 15,150,820 |
Property and Equipment, Net | 6,314,812 | 6,457,931 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $42,647 and $26,500, respectively | 301,097 | 370,769 |
Goodwill, net | 1,046,944 | 1,046,944 |
Franchise rights, net | 4,536,370 | 4,826,172 |
Intangible assets, net | 598,768 | 632,207 |
Deferred income taxes | 1,303,621 | 858,874 |
Other | 64,849 | 74,639 |
Total other assets | 7,851,649 | 7,809,605 |
Total Assets | 29,333,217 | 29,418,356 |
Current Liabilities | ||
Current maturities of long term debt | 1,340,010 | 1,302,501 |
Accounts payable | 1,492,837 | 1,820,470 |
Accrued salaries and wages | 870,328 | 608,510 |
Gift card liabilities | 2,938,588 | 2,921,585 |
Other accrued expenses | 337,394 | 253,497 |
Dividend payable | 708,412 | 702,525 |
Deferred income | 465,543 | 451,171 |
Total current liabilities | 8,153,112 | 8,060,259 |
Long-Term Debt, Less Current Maturities | 1,519,310 | 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 per share, 46,000,000 shares authorized, 5,903,436 and 5,854,372 shares issued and outstanding, respectively | 5,903 | 5,854 |
Additional paid-in capital | 5,997,583 | 5,539,357 |
Retained earnings | 13,657,309 | 13,283,646 |
Total stockholders’ equity | 19,660,795 | 18,828,857 |
Total Liabilities and Stockholders’ Equity | $ 29,333,217 | $ 29,418,356 |
Consolidated Balance Sheets (C5
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Nov. 30, 2017 | Feb. 28, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 565,339 | $ 487,446 |
Notes receivable, current portion of valuation allowance | 6,100 | 22,147 |
Inventories, reserve | 261,377 | 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 authorized (in shares) | 250,000 | 250,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 46,000,000 | 46,000,000 |
Common stock, shares issued (in shares) | 5,903,436 | 5,854,372 |
Common stock, shares outstanding (in shares) | 5,903,436 | 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 ($) | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Cash Flows From Operating activities | ||
Net income | $ 2,493,012 | $ 2,718,446 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 979,712 | 962,632 |
Provision for slow moving inventory | 82,738 | 61,061 |
Provision for loss on accounts and notes receivable | 88,200 | 109,200 |
Loss on sale or disposal of property and equipment | 20,630 | 18,783 |
Expense recorded for stock compensation | 458,275 | 447,581 |
Deferred income | 23,769 | 14,710 |
Deferred income taxes | (444,747) | 237,131 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,307,149) | (650,708) |
Refundable income taxes | 42,808 | (284,927) |
Inventories | (990,398) | (771,281) |
Other current assets | (26,641) | (39,008) |
Accounts payable | (135,269) | 156,150 |
Accrued liabilities | 362,718 | 17,281 |
Net cash provided by operating activities | 1,647,658 | 2,997,051 |
Cash Flows From Investing Activities | ||
Addition to notes receivable | (14,292) | (131,243) |
Proceeds received on notes receivable | 194,646 | 255,907 |
Purchase of intangible assets | (8,508) | (307,023) |
(Cost of) proceeds from sale or distribution of assets | (7,926) | 33,845 |
Purchases of property and equipment | (446,935) | (1,048,667) |
Decrease in other assets | 8,963 | 25,402 |
Net cash used in investing activities | (274,052) | (1,171,779) |
Cash Flows From Financing Activities | ||
Payments on long-term debt | (972,421) | (935,794) |
Repurchase of common stock | (351,584) | |
Tax (expense) benefit of stock awards | (34,128) | |
Dividends paid | (2,113,462) | (2,102,261) |
Net cash used in financing activities | (3,085,883) | (3,423,767) |
Net Decrease in Cash and Cash Equivalents | (1,712,277) | (1,598,495) |
Cash and Cash Equivalents, Beginning of Period | 5,779,195 | 6,194,948 |
Cash and Cash Equivalents, End of Period | $ 4,066,918 | $ 4,596,453 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 9 Months Ended |
Nov. 30, 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 (“RMCF”), Aspen Leaf Yogurt, LLC, a Colorado limited liability company (“ALY”), U-Swirl International, Inc. (“U-Swirl”), a Nevada corporation, and its 46% February 29, 2016 The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, self-serve frozen yogurt cafés. The Company also sells its candy in selected locations outside of its system of retail stores and licenses the use of its brand with certain consumer products. In January 2013, our wholly-owned subsidiaries, including ALY, the Company entered into two January 2013, 60% 46% November 30, 2017). In fiscal year (“FY”) 2014, by 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. As a result of certain defaults under the SWRL Loan Agreement, the Company issued a demand for payment of all obligations under the SWRL Loan Agreement. SWRL was unable to repay the obligations under the SWRL Loan Agreement, and as a result, the Company foreclosed on all of the outstanding stock of U-Swirl on February 29, 2016 February 29, 2016 February 29, 2016. February 29, 2016 November 30, 2017, 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 The following table summarizes the number of stores operated under the Rocky Mountain Chocolate Factory brand and frozen yogurt cafés as of November 30, 2017: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 5 5 Franchise stores – Domestic stores and kiosks 9 188 197 International license stores - 84 84 Cold Stone Creamery – co-branded 5 86 91 U-Swirl (Including all associated brands) Company-owned stores - 2 2 Company-owned stores – co-branded - 3 3 Franchise stores – Domestic stores * 104 104 Franchise stores – Domestic – co-branded * 15 15 International License Stores 1 1 2 Total 15 488 503 *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. 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 nine November 30, 2017 not These unaudited 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 On December 22, 2017, H.R.1 2018, ’s fiscal year 2018 one Recent Accounting Pronouncements In January 2017, Financial Accounting Standards Board (the “FASB”) issued ASU 2017 04, Intangibles – Goodwill and Other (Topic 350 . ASU 2017 04 requires only a single-step quantitative test to identify and measure impairment and record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The option to perform a qualitative assessment first not 2020 2017. no In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2020 2016 13 In February 2016, 2016 02, 842 840 December 15, 2018, 2016 02 2016 02 not ’s cash flows. The Company is currently evaluating the impact of ASU 2016 02 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 The Company anticipates that contract fulfillment costs under ASC Topic 606 no not 15% No |
Note 2 - Earnings Per Share
Note 2 - Earnings Per Share | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 2 Basic earnings per share is calculated using the weighted-average number of shares of common stock outstanding. Diluted earnings per share reflects the potential dilution that could occur from common stock issuable through stock options and restricted stock units. For the three November 30, 2017 2016, no nine November 30, 2017 2016, no |
Note 3 - Inventories
Note 3 - Inventories | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3 – INVENTORIES Inventories consist of the following: November 30, 2017 February 2 8, 2017 Ingredients and supplies $ 2,998,169 $ 3,021,220 Finished candy 2,880,531 2,137,609 U-Swirl food and packaging 69,952 66,001 Reserve for slow moving inventory (261,377 ) (249,051 ) Total inventories $ 5,687,275 $ 4,975,779 |
Note 4 - Property and Equipment
Note 4 - Property and Equipment, Net | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 4 Property and equipment consists of the following: November 30, 2017 February 2 8, 2017 Land $ 513,618 $ 513,618 Building 4,905,103 4,787,855 Machinery and equipment 10,594,111 10,598,355 Furniture and fixtures 1,067,788 1,047,319 Leasehold improvements 1,568,759 1,531,112 Transportation equipment 434,091 418,402 Asset Impairment (47,891 ) (47,891 ) 19,035,579 18,848,770 Less accumulated depreciation (12,720,767 ) (12,390,839 ) Property and equipment, net $ 6,314,812 $ 6,457,931 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 9 Months Ended |
Nov. 30, 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 per share of per share of common stock on March 10, 2017 February 24, 2017. $0.12 June 16, 2017 June 6, 2017. $0.12 September 15, 2017 September 5, 2017. $0.12 November 14, 2017, December 8, 2017 November 24, 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 ’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 nine November 30, 2017. November 30, 2017, $638,000 Stock-Based Compensation At November 30, 2017, The Company recognized $133,795 $458,275 three nine November 30, 2017, $132,453 $447,581 three nine November 30, 2016, As of November 30, 2017, not The following table summarizes stock option activity during the nine November 30, 2017 2016: Nine Months Ended November 30 , 2017 2016 Outstanding stock options as of February 28 or 29: - 12,936 Granted - - Exercised - - Cancelled/forfeited - (12,936 ) Outstanding stock options as of November 30: - - Weighted average exercise price n/a n/a Weighted average remaining contractual term (in years) n/a n/a The following table summarizes restricted stock unit activity during the nine November 30, 2017 2016: Nine Months Ended November 30, 2017 2016 Outstanding non-vested restricted stock units as of February 28 or 29: 123,658 181,742 Granted - - Vested (44,064 ) (48,084 ) Cancelled/forfeited (1,700 ) (10,000 ) Outstanding non-vested restricted stock units as of November 30: 77,894 123,658 Weighted average grant date fair value $ 12.17 $ 12.22 Weighted average remaining vesting period (in years) 1.52 2.47 The Company did not nine November 30, 2017 2,000 nine November 30, 2016. $0 $20,420 nine November 30, 2017 2016, During the nine November 30, 2017, 5,000 ’s equity incentive plan to an independent contractor providing information technology consulting services to the Company. These shares were issued as a part of the compensation for services rendered to the Company by the contractor. Associated with this unrestricted stock award, the Company recognized $59,100 nine November 30, 2017. During the three nine November 30, 2017, $133,795 $399,175, 17% 20% five six nine November 30, 2017 2016, 44,064 48,084 November 30, 2017 $758,217, 1.5 |
Note 6 - Supplemental Cash Flow
Note 6 - Supplemental Cash Flow Information | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 6 – SUPPLEMENTAL CASH FLOW INFORMATION Nine Months Ended November 30, 2017 2016 Cash paid for: Interest, net $ 76,291 $ 100,275 Income taxes 1,827,369 1,655,774 Non-Cash Operating Activities Accrued Inventory 334,853 202,669 Non-Cash Financing Activities Dividend Payable 708,412 702,525 Sale of assets and inventory to buyers for notes receivable: Long-lived assets $ - $ 20,989 |
Note 7 - Operating Segments
Note 7 - Operating Segments | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 7 The Company classifies its business interests into five operations and Other. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 1 10 February 28, 2017. Three Months Ended November 30, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,242,855 $ 7,948,925 $ 366,049 $ 842,554 $ - $ 10,400,383 Intersegment revenues (1,228 ) (437,583 ) - - - (438,811 ) Revenue from external customers 1,241,627 7,511,342 366,049 842,554 - 9,961,572 Segment profit (loss) 423,213 1,664,643 (86,741 ) (14,587 ) (809,332 ) 1,177,196 Total assets 1,106,155 14,748,965 1,236,501 8,202,628 4,038,968 29,333,217 Capital expenditures 881 124,312 15,182 4,967 17,605 162,947 Total depreciation & amortization $ 11,644 $ 138,618 $ 10,543 $ 143,304 $ 32,180 $ 336,289 Three Months Ended November 30, 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,202,655 $ 7,783,888 $ 320,011 $ 1,009,360 $ - $ 10,315,914 Intersegment revenues (1,248 ) (359,427 ) - - - (360,675 ) Revenue from external customers 1,201,407 7,424,461 320,011 1,009,360 - 9,955,239 Segment profit (loss) 328,866 2,049,231 (46,253 ) 102,906 (850,695 ) 1,584,055 Total assets 1,151,783 13,761,091 1,132,268 9,138,026 4,939,480 30,122,648 Capital expenditures 4,414 78,725 13,677 5,246 14,615 116,677 Total depreciation & amortization $ 13,441 $ 122,381 $ 3,357 $ 147,284 $ 33,262 $ 319,725 Nine Months Ended November 30, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,342,013 $ 19,659,108 $ 1,213,039 $ 3,446,543 $ - $ 28,660,703 Intersegment revenues (3,643 ) (1,082,350 ) - - - (1,085,993 ) Revenue from external customers 4,338,370 18,576,758 1,213,039 3,446,543 - 27,574,710 Segment profit (loss) 1,853,604 4,361,150 (90,674 ) 639,251 (2,844,889 ) 3,918,442 Total assets 1,106,155 14,748,965 1,236,501 8,202,628 4,038,968 29,333,217 Capital expenditures 6,517 342,910 31,518 10,791 55,199 446,935 Total depreciation & amortization $ 34,590 $ 400,624 $ 18,202 $ 429,582 $ 96,714 $ 979,712 Nine Months Ended November 30, 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,257,842 $ 19,070,069 $ 1,081,103 $ 4,438,630 $ - $ 28,847,644 Intersegment revenues (4,000 ) (910,244 ) - - - (914,244 ) Revenue from external customers 4,253,842 18,159,825 1,081,103 4,438,630 - 27,933,400 Segment profit (loss) 1,680,304 4,511,527 16,743 1,053,529 (3,009,994 ) 4,252,109 Total assets 1,151,783 13,761,091 1,132,268 9,138,026 4,939,480 30,122,648 Capital expenditures 13,540 785,889 16,997 35,722 196,519 1,048,667 Total depreciation & amortization $ 41,266 $ 336,541 $ 10,061 $ 473,730 $ 101,034 $ 962,632 Revenue from one ’s Manufacturing segment represented approximately $2.8 10.3 nine November 30, 2017, $2.1 7.5 nine November 30, 2016. |
Note 8 - Goodwill and Intangibl
Note 8 - Goodwill and Intangible Assets | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8 – GOODWILL AND INTANGIBLE ASSETS Intangible assets consist of the following: November 30, 2017 February 2 8, 2017 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 212,277 $ 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 - 20 715,339 125,072 715,339 92,758 Franchise Rights 20 5,979,637 1,443,267 5,971,129 1,144,957 Total 7,467,557 2,332,419 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 Goodwill 1,709,328 662,384 1,709,328 662,384 Total Intangible Assets $ 9,176,885 $ 2,994,803 $ 9,168,377 $ 2,663,054 Effective March 1, 2002, 350, no not March 1, 2002. Amortization expense related to intangible assets totaled $332,100 $316,529 nine November 30, 2017 2016, At November 30, 2017, 2018 $ 113,833 2019 452,069 2020 438,912 202 1 427,203 2022 404,022 Thereafter 3,299,099 Total $ 5,135,138 |
Note 9 - Restructuring and Acqu
Note 9 - Restructuring and Acquisition Related Charges | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 9 Restructuring and acquisition charges consisted of lease settlement costs of $60,000 nine November 30, 2016, The Company did not three nine November 30, 2017. |
Note 10 - Sale or Distribution
Note 10 - Sale or Distribution of Assets | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Sale or Distribution of Assets [Text Block] | NOTE 10 During the nine November 30, 2017, two one nine November 30, 2016, two nine November 30, 2017 2016: 2017 2016 Notes receivable $ 56,610 $ 145,585 |
Note 11 - Note Payable
Note 11 - Note Payable | 9 Months Ended |
Nov. 30, 2017 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 11 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. As of November 30, 2017 February 28, 2017, November 30, 2017 February 2 8, 2017 Promissory note $ 2,859,320 $ 3,831,741 Less: current maturities (1,340,010 ) (1,302,501 ) Long-term obligations $ 1,519,310 $ 2,529,240 The following table summarizes annual maturities of our notes payable as of November 30, 2017: Amount 201 8 330,023 201 9 1,352,893 20 20 1,176,404 Total minimum payments $ 2,859,320 Less: current maturities (1,340,010 ) Long-term obligations $ 1,519,310 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Nov. 30, 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. 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 nine November 30, 2017 not These unaudited 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 On December 22, 2017, H.R.1 2018, ’s fiscal year 2018 one |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2017, Financial Accounting Standards Board (the “FASB”) issued ASU 2017 04, Intangibles – Goodwill and Other (Topic 350 . ASU 2017 04 requires only a single-step quantitative test to identify and measure impairment and record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The option to perform a qualitative assessment first not 2020 2017. no In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2020 2016 13 In February 2016, 2016 02, 842 840 December 15, 2018, 2016 02 2016 02 not ’s cash flows. The Company is currently evaluating the impact of ASU 2016 02 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 The Company anticipates that contract fulfillment costs under ASC Topic 606 no not 15% No |
Note 1 - Nature of Operations19
Note 1 - Nature of Operations and Basis of Presentation (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Number of Stores [Table Text Block] | Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 5 5 Franchise stores – Domestic stores and kiosks 9 188 197 International license stores - 84 84 Cold Stone Creamery – co-branded 5 86 91 U-Swirl (Including all associated brands) Company-owned stores - 2 2 Company-owned stores – co-branded - 3 3 Franchise stores – Domestic stores * 104 104 Franchise stores – Domestic – co-branded * 15 15 International License Stores 1 1 2 Total 15 488 503 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | November 30, 2017 February 2 8, 2017 Ingredients and supplies $ 2,998,169 $ 3,021,220 Finished candy 2,880,531 2,137,609 U-Swirl food and packaging 69,952 66,001 Reserve for slow moving inventory (261,377 ) (249,051 ) Total inventories $ 5,687,275 $ 4,975,779 |
Note 4 - Property and Equipme21
Note 4 - Property and Equipment, Net (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | November 30, 2017 February 2 8, 2017 Land $ 513,618 $ 513,618 Building 4,905,103 4,787,855 Machinery and equipment 10,594,111 10,598,355 Furniture and fixtures 1,067,788 1,047,319 Leasehold improvements 1,568,759 1,531,112 Transportation equipment 434,091 418,402 Asset Impairment (47,891 ) (47,891 ) 19,035,579 18,848,770 Less accumulated depreciation (12,720,767 ) (12,390,839 ) Property and equipment, net $ 6,314,812 $ 6,457,931 |
Note 5 - Stockholders' Equity (
Note 5 - Stockholders' Equity (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Nine Months Ended November 30 , 2017 2016 Outstanding stock options as of February 28 or 29: - 12,936 Granted - - Exercised - - Cancelled/forfeited - (12,936 ) Outstanding stock options as of November 30: - - 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] | Nine Months Ended November 30, 2017 2016 Outstanding non-vested restricted stock units as of February 28 or 29: 123,658 181,742 Granted - - Vested (44,064 ) (48,084 ) Cancelled/forfeited (1,700 ) (10,000 ) Outstanding non-vested restricted stock units as of November 30: 77,894 123,658 Weighted average grant date fair value $ 12.17 $ 12.22 Weighted average remaining vesting period (in years) 1.52 2.47 |
Note 6 - Supplemental Cash Fl23
Note 6 - Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Nine Months Ended November 30, 2017 2016 Cash paid for: Interest, net $ 76,291 $ 100,275 Income taxes 1,827,369 1,655,774 Non-Cash Operating Activities Accrued Inventory 334,853 202,669 Non-Cash Financing Activities Dividend Payable 708,412 702,525 Sale of assets and inventory to buyers for notes receivable: Long-lived assets $ - $ 20,989 |
Note 7 - Operating Segments (Ta
Note 7 - Operating Segments (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended November 30, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,242,855 $ 7,948,925 $ 366,049 $ 842,554 $ - $ 10,400,383 Intersegment revenues (1,228 ) (437,583 ) - - - (438,811 ) Revenue from external customers 1,241,627 7,511,342 366,049 842,554 - 9,961,572 Segment profit (loss) 423,213 1,664,643 (86,741 ) (14,587 ) (809,332 ) 1,177,196 Total assets 1,106,155 14,748,965 1,236,501 8,202,628 4,038,968 29,333,217 Capital expenditures 881 124,312 15,182 4,967 17,605 162,947 Total depreciation & amortization $ 11,644 $ 138,618 $ 10,543 $ 143,304 $ 32,180 $ 336,289 Three Months Ended November 30, 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,202,655 $ 7,783,888 $ 320,011 $ 1,009,360 $ - $ 10,315,914 Intersegment revenues (1,248 ) (359,427 ) - - - (360,675 ) Revenue from external customers 1,201,407 7,424,461 320,011 1,009,360 - 9,955,239 Segment profit (loss) 328,866 2,049,231 (46,253 ) 102,906 (850,695 ) 1,584,055 Total assets 1,151,783 13,761,091 1,132,268 9,138,026 4,939,480 30,122,648 Capital expenditures 4,414 78,725 13,677 5,246 14,615 116,677 Total depreciation & amortization $ 13,441 $ 122,381 $ 3,357 $ 147,284 $ 33,262 $ 319,725 Nine Months Ended November 30, 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,342,013 $ 19,659,108 $ 1,213,039 $ 3,446,543 $ - $ 28,660,703 Intersegment revenues (3,643 ) (1,082,350 ) - - - (1,085,993 ) Revenue from external customers 4,338,370 18,576,758 1,213,039 3,446,543 - 27,574,710 Segment profit (loss) 1,853,604 4,361,150 (90,674 ) 639,251 (2,844,889 ) 3,918,442 Total assets 1,106,155 14,748,965 1,236,501 8,202,628 4,038,968 29,333,217 Capital expenditures 6,517 342,910 31,518 10,791 55,199 446,935 Total depreciation & amortization $ 34,590 $ 400,624 $ 18,202 $ 429,582 $ 96,714 $ 979,712 Nine Months Ended November 30, 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 4,257,842 $ 19,070,069 $ 1,081,103 $ 4,438,630 $ - $ 28,847,644 Intersegment revenues (4,000 ) (910,244 ) - - - (914,244 ) Revenue from external customers 4,253,842 18,159,825 1,081,103 4,438,630 - 27,933,400 Segment profit (loss) 1,680,304 4,511,527 16,743 1,053,529 (3,009,994 ) 4,252,109 Total assets 1,151,783 13,761,091 1,132,268 9,138,026 4,939,480 30,122,648 Capital expenditures 13,540 785,889 16,997 35,722 196,519 1,048,667 Total depreciation & amortization $ 41,266 $ 336,541 $ 10,061 $ 473,730 $ 101,034 $ 962,632 |
Note 8 - Goodwill and Intangi25
Note 8 - Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | November 30, 2017 February 2 8, 2017 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 212,277 $ 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 - 20 715,339 125,072 715,339 92,758 Franchise Rights 20 5,979,637 1,443,267 5,971,129 1,144,957 Total 7,467,557 2,332,419 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 Goodwill 1,709,328 662,384 1,709,328 662,384 Total Intangible Assets $ 9,176,885 $ 2,994,803 $ 9,168,377 $ 2,663,054 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2018 $ 113,833 2019 452,069 2020 438,912 202 1 427,203 2022 404,022 Thereafter 3,299,099 Total $ 5,135,138 |
Note 10 - Sale or Distributio26
Note 10 - Sale or Distribution of Assets (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Sale or Distribution of Assets [Table Text Block] | 2017 2016 Notes receivable $ 56,610 $ 145,585 |
Note 11 - Note Payable (Tables)
Note 11 - Note Payable (Tables) | 9 Months Ended |
Nov. 30, 2017 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | November 30, 2017 February 2 8, 2017 Promissory note $ 2,859,320 $ 3,831,741 Less: current maturities (1,340,010 ) (1,302,501 ) Long-term obligations $ 1,519,310 $ 2,529,240 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Amount 201 8 330,023 201 9 1,352,893 20 20 1,176,404 Total minimum payments $ 2,859,320 Less: current maturities (1,340,010 ) Long-term obligations $ 1,519,310 |
Note 1 - Nature of Operations28
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) - USD ($) | Nov. 30, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Feb. 29, 2016 | Jan. 31, 2013 |
Assets | $ 29,333,217 | $ 29,418,356 | $ 30,122,648 | ||
USwirl Inc [Member] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 46.00% | ||||
Equity Method Investment, Ownership Percentage | 60.00% | ||||
USwirl Inc [Member] | Operating Assets [Member] | |||||
Assets | $ 0 | $ 0 |
Note 1 - Nature of Operations29
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | Nov. 30, 2017 | |
Number of stores | 503 | |
Sold Not Yet Open [Member] | ||
Number of stores | 15 | |
Open [Member] | ||
Number of stores | 488 | |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 5 | |
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 | ||
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 | 5 | |
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 | 84 | |
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 | ||
International License Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | ||
Number of stores | 1 | |
International License Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 84 | |
International License Stores [Member] | Open [Member] | USwirl Inc [Member] | ||
Number of stores | 1 | |
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 | 5 | |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | ||
Number of stores | 86 | |
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 | 104 | |
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 | 104 | |
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 | 9 Months Ended | ||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 0 | 0 |
Note 3 - Inventories - Inventor
Note 3 - Inventories - Inventories (Details) - USD ($) | Nov. 30, 2017 | Feb. 28, 2017 |
Ingredients and supplies | $ 2,998,169 | $ 3,021,220 |
Finished candy | 2,880,531 | 2,137,609 |
U-Swirl food and packaging | 69,952 | 66,001 |
Reserve for slow moving inventory | (261,377) | (249,051) |
Total inventories | $ 5,687,275 | $ 4,975,779 |
Note 4 - Property and Equipme32
Note 4 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Nov. 30, 2017 | Feb. 28, 2017 | |
Property, plant and equipment, gross | $ 19,035,579 | $ 18,848,770 |
Asset Impairment | (47,891) | (47,891) |
Less accumulated depreciation | (12,720,767) | (12,390,839) |
Property and equipment, net | 6,314,812 | 6,457,931 |
Land [Member] | ||
Property, plant and equipment, gross | 513,618 | 513,618 |
Building [Member] | ||
Property, plant and equipment, gross | 4,905,103 | 4,787,855 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 10,594,111 | 10,598,355 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 1,067,788 | 1,047,319 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 1,568,759 | 1,531,112 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 434,091 | $ 418,402 |
Note 5 - Stockholders' Equity33
Note 5 - Stockholders' Equity (Details Textual) - USD ($) | Nov. 14, 2017 | Sep. 15, 2017 | Jun. 16, 2017 | Mar. 10, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | Feb. 28, 2017 | Feb. 29, 2016 | May 21, 2015 | Jan. 13, 2015 | Jul. 15, 2014 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.12 | $ 0.12 | $ 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 | 0 | |||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 638,000 | $ 638,000 | |||||||||||
Allocated Share-based Compensation Expense | $ 133,795 | $ 132,453 | $ 458,275 | $ 447,581 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | 12,936 | ||||||||||
Independent Contractor [Member] | |||||||||||||
Allocated Share-based Compensation Expense | $ 59,100 | ||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 5,000 | ||||||||||||
Unrestricted Shares of Stock [Member] | |||||||||||||
Allocated Share-based Compensation Expense | $ 0 | $ 20,420 | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 0 | 2,000 | |||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||
Allocated Share-based Compensation Expense | $ 133,795 | $ 399,175 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 44,064 | 48,084 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 758,217 | $ 758,217 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 182 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 | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 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) | 0 | |
Weighted average exercise price (in dollars per share) | ||
Weighted average remaining contractual term (in years) (Year) |
Note 5 - Stockholders' Equity35
Note 5 - Stockholders' Equity - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Outstanding non-vested restricted stock units (in shares) | 123,658 | 181,742 |
Granted (in shares) | ||
Vested (in shares) | (44,064) | (48,084) |
Cancelled/forfeited (in shares) | (1,700) | (10,000) |
Outstanding non-vested restricted stock units (in shares) | 77,894 | 123,658 |
Weighted average grant date fair value (in dollars per share) | $ 12.17 | $ 12.22 |
Weighted average remaining vesting period (in years) (Year) | 1 year 189 days | 2 years 171 days |
Note 6 - Supplemental Cash Fl36
Note 6 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Interest, net | $ 76,291 | $ 100,275 |
Income taxes | 1,827,369 | 1,655,774 |
Accrued Inventory | 334,853 | 202,669 |
Dividend Payable | 708,412 | 702,525 |
Notes receivable | 56,610 | 145,585 |
Sale of Long Lived Assets [Member] | ||
Notes receivable | $ 20,989 |
Note 7 - Operating Segments (De
Note 7 - Operating Segments (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | Nov. 30, 2017USD ($) | Nov. 30, 2016USD ($) | |
Number of Reportable Segments | 5 | |||
Revenues | $ 9,961,572 | $ 9,955,239 | $ 27,574,710 | $ 27,933,400 |
Manufacturing [Member] | ||||
Revenues | $ 7,511,342 | $ 7,424,461 | $ 18,576,758 | 18,159,825 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | ||||
Number of Major Customers | 1 | |||
Revenues | $ 2,800,000 | $ 2,100,000 | ||
Concentration Risk, Percentage | 10.30% | 7.50% |
Note 7 - Operating Segments - S
Note 7 - Operating Segments - Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Nov. 30, 2017 | Nov. 30, 2016 | Nov. 30, 2017 | Nov. 30, 2016 | Feb. 28, 2017 | |
Revenues | $ 9,961,572 | $ 9,955,239 | $ 27,574,710 | $ 27,933,400 | |
Segment profit (loss) | 1,177,196 | 1,584,055 | 3,918,442 | 4,252,109 | |
Assets | 29,333,217 | 30,122,648 | 29,333,217 | 30,122,648 | $ 29,418,356 |
Capital expenditures | 162,947 | 116,677 | 446,935 | 1,048,667 | |
Total depreciation and amortization | 336,289 | 319,725 | 979,712 | 962,632 | |
Franchising [Member] | |||||
Revenues | 1,241,627 | 1,201,407 | 4,338,370 | 4,253,842 | |
Segment profit (loss) | 423,213 | 328,866 | 1,853,604 | 1,680,304 | |
Assets | 1,106,155 | 1,151,783 | 1,106,155 | 1,151,783 | |
Capital expenditures | 881 | 4,414 | 6,517 | 13,540 | |
Total depreciation and amortization | 11,644 | 13,441 | 34,590 | 41,266 | |
Manufacturing [Member] | |||||
Revenues | 7,511,342 | 7,424,461 | 18,576,758 | 18,159,825 | |
Segment profit (loss) | 1,664,643 | 2,049,231 | 4,361,150 | 4,511,527 | |
Assets | 14,748,965 | 13,761,091 | 14,748,965 | 13,761,091 | |
Capital expenditures | 124,312 | 78,725 | 342,910 | 785,889 | |
Total depreciation and amortization | 138,618 | 122,381 | 400,624 | 336,541 | |
Retail [Member] | |||||
Revenues | 366,049 | 320,011 | 1,213,039 | 1,081,103 | |
Segment profit (loss) | (86,741) | (46,253) | (90,674) | 16,743 | |
Assets | 1,236,501 | 1,132,268 | 1,236,501 | 1,132,268 | |
Capital expenditures | 15,182 | 13,677 | 31,518 | 16,997 | |
Total depreciation and amortization | 10,543 | 3,357 | 18,202 | 10,061 | |
U-Swirl Segment [Member] | |||||
Revenues | 842,554 | 1,009,360 | 3,446,543 | 4,438,630 | |
Segment profit (loss) | (14,587) | 102,906 | 639,251 | 1,053,529 | |
Assets | 8,202,628 | 9,138,026 | 8,202,628 | 9,138,026 | |
Capital expenditures | 4,967 | 5,246 | 10,791 | 35,722 | |
Total depreciation and amortization | 143,304 | 147,284 | 429,582 | 473,730 | |
Other Segments [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Segment profit (loss) | (809,332) | (850,695) | (2,844,889) | (3,009,994) | |
Assets | 4,038,968 | 4,939,480 | 4,038,968 | 4,939,480 | |
Capital expenditures | 17,605 | 14,615 | 55,199 | 196,519 | |
Total depreciation and amortization | 32,180 | 33,262 | 96,714 | 101,034 | |
Operating Segments [Member] | |||||
Revenues | 10,400,383 | 10,315,914 | 28,660,703 | 28,847,644 | |
Operating Segments [Member] | Franchising [Member] | |||||
Revenues | 1,242,855 | 1,202,655 | 4,342,013 | 4,257,842 | |
Operating Segments [Member] | Manufacturing [Member] | |||||
Revenues | 7,948,925 | 7,783,888 | 19,659,108 | 19,070,069 | |
Operating Segments [Member] | Retail [Member] | |||||
Revenues | 366,049 | 320,011 | 1,213,039 | 1,081,103 | |
Operating Segments [Member] | U-Swirl Segment [Member] | |||||
Revenues | 842,554 | 1,009,360 | 3,446,543 | 4,438,630 | |
Operating Segments [Member] | Other Segments [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | |||||
Revenues | (438,811) | (360,675) | (1,085,993) | (914,244) | |
Intersegment Eliminations [Member] | Franchising [Member] | |||||
Revenues | (1,228) | (1,248) | (3,643) | (4,000) | |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||||
Revenues | (437,583) | (359,427) | (1,082,350) | (910,244) | |
Intersegment Eliminations [Member] | Retail [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Other Segments [Member] | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Note 8 - Goodwill and Intangi39
Note 8 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Amortization of Intangible Assets | $ 332,100 | $ 316,529 |
Note 8 - Goodwill and Intangi40
Note 8 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2017 | Feb. 28, 2017 | |
Intangible assets subject to amortization, gross carrying value | $ 7,467,557 | $ 7,459,049 |
Intangible assets subject to amortization, accumulated amortization | 2,332,419 | 2,000,670 |
Intangible assets not subject to amortization, gross carrying value | 1,709,328 | 1,709,328 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 662,384 | 662,384 |
Total Intangible Assets | 9,176,885 | 9,168,377 |
Total Intangible Assets | 2,994,803 | 2,663,054 |
Company Stores Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 1,099,328 | 1,099,328 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 267,020 | 267,020 |
Franchising Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 295,000 | 295,000 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 197,682 | 197,682 |
Manufacturing Segment Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 295,000 | 295,000 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 197,682 | 197,682 |
Trademarks [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 20,000 | 20,000 |
Intangible assets not subject to amortization, accumulated goodwill impairment | ||
Store Design [Member] | ||
Amortization Period (Year) | 10 years | |
Intangible assets subject to amortization, gross carrying value | $ 220,778 | 220,778 |
Intangible assets subject to amortization, accumulated amortization | 212,277 | 211,152 |
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] | ||
Amortization Period (Year) | 10 years | |
Intangible assets subject to amortization, gross carrying value | $ 430,973 | 430,973 |
Intangible assets subject to amortization, accumulated amortization | 430,973 | 430,973 |
Trademarks and Non Competition Agreement [Member] | ||
Intangible assets subject to amortization, gross carrying value | 715,339 | 715,339 |
Intangible assets subject to amortization, accumulated amortization | $ 125,072 | 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] | ||
Amortization Period (Year) | 20 years | |
Intangible assets subject to amortization, gross carrying value | $ 5,979,637 | 5,971,129 |
Intangible assets subject to amortization, accumulated amortization | $ 1,443,267 | $ 1,144,957 |
Note 8 - Goodwill and Intangi41
Note 8 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Nov. 30, 2017USD ($) |
2,018 | $ 113,833 |
2,019 | 452,069 |
2,020 | 438,912 |
2,021 | 427,203 |
2,022 | 404,022 |
Thereafter | 3,299,099 |
Total | $ 5,135,138 |
Note 9 - Restructuring and Ac42
Note 9 - Restructuring and Acquisition Related Charges (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2017 | Nov. 30, 2016 | |
Restructuring Charges | $ 0 | $ 0 | |
Lease Settlement Costs [Member] | |||
Restructuring Charges | $ 60,000 |
Note 10 - Sale or Distributio43
Note 10 - Sale or Distribution of Assets (Details Textual) | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Number of Restaurants Acquired | 2 | |
Number of Restaurants Sold | 1 | 2 |
Note 10 - Sale or Distributio44
Note 10 - Sale or Distribution of Assets - Asset Disposal Activity (Details) - USD ($) | 9 Months Ended | |
Nov. 30, 2017 | Nov. 30, 2016 | |
Notes receivable | $ 56,610 | $ 145,585 |
Note 11 - Note Payable - Long-t
Note 11 - Note Payable - Long-term Note Payable (Details) - USD ($) | Nov. 30, 2017 | Feb. 28, 2017 |
Promissory note | $ 2,859,320 | $ 3,831,741 |
Less: current maturities | (1,340,010) | (1,302,501) |
Long-term obligations | $ 1,519,310 | $ 2,529,240 |
Note 11 - Note Payable - Annual
Note 11 - Note Payable - Annual Maturities of Notes Payable (Details) - USD ($) | Nov. 30, 2017 | Feb. 28, 2017 |
2,018 | $ 330,023 | |
2,019 | 1,352,893 | |
2,020 | 1,176,404 | |
Total minimum payments | 2,859,320 | |
Less: current maturities | (1,340,010) | $ (1,302,501) |
Long-term obligations | $ 1,519,310 | $ 2,529,240 |