Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | May 10, 2018 | Aug. 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) | 5,905,436 | ||
Entity Public Float | $ 46,459,484 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 28, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Revenues | |||
Total revenues | $ 38,074,695 | $ 38,296,377 | $ 40,456,895 |
Costs and Expenses | |||
Cost of sales | 21,176,711 | 20,735,739 | 20,866,482 |
Sales & marketing | 2,489,483 | 2,658,421 | 2,466,469 |
General and administrative | 3,904,560 | 4,005,142 | 4,663,914 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $523,034, $447,651 and $404,391, respectively, included in cost of sales | 796,221 | 841,058 | 1,015,910 |
Impairment of long-lived assets and goodwill | 2,326,742 | ||
Restructuring charges | 60,000 | ||
Total costs and expenses | 32,853,826 | 32,771,893 | 36,743,909 |
Operating Income | 5,220,869 | 5,524,484 | 3,712,986 |
Other Income (Expense) | |||
Interest expense | (121,244) | (170,351) | (216,600) |
Interest income | 24,578 | 41,572 | 48,745 |
Other, net | (96,666) | (128,779) | (167,855) |
Income Before Income Taxes | 5,124,203 | 5,395,705 | 3,545,131 |
Income Tax Expense (Benefit) | 2,160,295 | 1,945,589 | (261,401) |
Net Income | 2,963,908 | 3,450,116 | 3,806,531 |
Less: Net loss attributable to non-controlling interest | (619,376) | ||
Net Income attributable to RMCF stockholders | $ 2,963,908 | $ 3,450,116 | $ 4,425,907 |
Basic Earnings per Common Share (in dollars per share) | $ 0.50 | $ 0.59 | $ 0.75 |
Diluted Earnings per Common Share (in dollars per share) | $ 0.50 | $ 0.58 | $ 0.73 |
Weighted Average Common Shares Outstanding (in shares) | 5,884,337 | 5,843,245 | 5,893,618 |
Dilutive Effect of Employee Stock Awards (in shares) | 96,099 | 150,447 | 201,856 |
Weighted Average Common Shares Outstanding, Assuming Dilution (in shares) | 5,980,436 | 5,993,692 | 6,095,474 |
Product [Member] | |||
Revenues | |||
Total revenues | $ 30,167,760 | $ 29,876,507 | $ 31,360,745 |
Franchise and Royalty Fees [Member] | |||
Revenues | |||
Total revenues | 7,906,935 | 8,419,870 | 9,096,150 |
Franchise [Member] | |||
Costs and Expenses | |||
Costs | 2,097,555 | 2,067,530 | 2,452,609 |
Retail [Member] | |||
Costs and Expenses | |||
Costs | $ 2,389,296 | $ 2,404,003 | $ 2,951,783 |
Consolidated Statements of Inc3
Consolidated Statements of Income (Parentheticals) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Depreciation and amortization expense | $ 523,034 | $ 447,651 | $ 404,391 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 6,072,984 | $ 5,779,195 |
Accounts receivable, less allowance for doubtful accounts of $479,472 and $487,446, respectively | 3,897,334 | 3,855,823 |
Notes receivable, current portion, less current portion of the valuation allowance of $9,000 and $22,147, respectively | 105,540 | 235,612 |
Refundable income taxes | 342,863 | 47,863 |
Inventories, less reserve for slow moving inventory of $357,706 and $249,051, respectively | 4,842,474 | 4,975,779 |
Other | 310,173 | 256,548 |
Total current assets | 15,571,368 | 15,150,820 |
Property and Equipment, Net | 6,166,240 | 6,457,931 |
Other Assets | ||
Notes receivable, less current portion and allowance for doubtful accounts of $17,500 and $26,500, respectively | 235,983 | 370,769 |
Goodwill, net | 1,046,944 | 1,046,944 |
Franchise rights, net | 4,433,927 | 4,826,172 |
Intangible assets, net | 587,377 | 632,207 |
Deferred income taxes | 835,463 | 858,874 |
Other | 63,333 | 74,639 |
Total other assets | 7,203,027 | 7,809,605 |
Total Assets | 28,940,635 | 29,418,356 |
Current Liabilities | ||
Current maturities of long term debt | 1,352,893 | 1,302,501 |
Accounts payable | 1,647,991 | 1,820,470 |
Accrued salaries and wages | 644,005 | 608,510 |
Gift card liabilities | 3,057,131 | 2,921,585 |
Other accrued expenses | 325,034 | 253,497 |
Dividend payable | 708,652 | 702,525 |
Deferred income | 471,910 | 451,171 |
Total current liabilities | 8,207,616 | 8,060,259 |
Long-Term Debt, Less Current Maturities | 1,176,416 | 2,529,240 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock, $.001 par value per share; 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 issued, and 5,903,436 and 5,854,372 outstanding, respectively | 5,903 | 5,854 |
Additional paid-in capital | 6,131,147 | 5,539,357 |
Retained earnings | 13,419,553 | 13,283,646 |
Total stockholders’ equity | 19,556,603 | 18,828,857 |
Total Liabilities and Stockholders’ Equity | $ 28,940,635 | $ 29,418,356 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 |
Accounts receivable, allowance for doubtful accounts | $ 479,472 | $ 487,446 |
Notes receivable, current portion of valuation allowance | 9,000 | 22,147 |
Inventories, reserve | 357,706 | 249,051 |
Notes receivable, valuation allowance | $ 17,500 | $ 26,500 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 200,000 | 200,000 |
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 Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | |
Balance at beginning of year at Feb. 28, 2015 | $ 180,384 | $ 7,163,092 | $ 11,524,708 | $ 869,671 | ||
Exchange of $.03 par value per share for $.001 par value per share common stock | (174,371) | |||||
Repurchase and retirement of common stock | (233) | (3,030,475) | ||||
Issuance of common stock | 4 | |||||
Exercise of stock options, vesting of restricted stock units and other | 55 | |||||
Issuance of common stock | 61,036 | |||||
Exercise of stock options, vesting of restricted stock units and other | 602,498 | |||||
Transfers from non-controlling interest | 349,800 | |||||
Tax (expense) benefit from employee stock transactions | 19,868 | |||||
Net income (loss) | $ 4,425,907 | 4,425,907 | (619,376) | |||
Cash dividends declared | (2,817,736) | |||||
Correction of immaterial error | [1] | |||||
Deductions | (310,995) | |||||
Contributions | 60,700 | |||||
Balance at end of year at Feb. 29, 2016 | 18,478,908 | $ 5,839 | 5,340,190 | 13,132,879 | ||
Balance at beginning of year (in shares) at Feb. 28, 2015 | 6,012,799 | |||||
Repurchase and retirement of common stock (in shares) | (233,302) | |||||
Issuance of common stock (in shares) | 4,000 | |||||
Exercise of stock options, vesting of restricted stock units and other (in shares) | 55,899 | |||||
Balance at end of year (in shares) at Feb. 29, 2016 | 5,839,396 | |||||
Exchange of $.03 par value per share for $.001 par value per share common stock | 174,371 | |||||
Exchange of $.03 par value per share for $.001 par value per share common stock | ||||||
Repurchase and retirement of common stock | (35) | (351,548) | ||||
Issuance of common stock | 2 | |||||
Exercise of stock options, vesting of restricted stock units and other | 48 | |||||
Issuance of common stock | 20,418 | |||||
Exercise of stock options, vesting of restricted stock units and other | 564,425 | |||||
Transfers from non-controlling interest | ||||||
Tax (expense) benefit from employee stock transactions | (34,128) | |||||
Net income (loss) | 3,450,116 | 3,450,116 | ||||
Cash dividends declared | (2,806,583) | |||||
Correction of immaterial error | [1] | (492,766) | ||||
Deductions | ||||||
Contributions | ||||||
Balance at end of year at Feb. 28, 2017 | $ 18,828,857 | $ 5,854 | 5,539,357 | 13,283,646 | ||
Repurchase and retirement of common stock (in shares) | (35,108) | |||||
Issuance of common stock (in shares) | 2,000 | |||||
Exercise of stock options, vesting of restricted stock units and other (in shares) | 48,084 | |||||
Balance at end of year (in shares) at Feb. 28, 2017 | 5,854,372 | 5,854,372 | ||||
Exchange of $.03 par value per share for $.001 par value per share common stock | ||||||
Exchange of $.03 par value per share for $.001 par value per share common stock | ||||||
Repurchase and retirement of common stock | ||||||
Issuance of common stock | 5 | |||||
Exercise of stock options, vesting of restricted stock units and other | 44 | |||||
Issuance of common stock | 59,095 | |||||
Exercise of stock options, vesting of restricted stock units and other | 532,695 | |||||
Transfers from non-controlling interest | ||||||
Tax (expense) benefit from employee stock transactions | ||||||
Net income (loss) | $ 2,963,908 | 2,963,908 | ||||
Cash dividends declared | (2,828,001) | |||||
Correction of immaterial error | [1] | |||||
Deductions | ||||||
Contributions | ||||||
Balance at end of year at Feb. 28, 2018 | $ 19,556,603 | $ 5,903 | 6,131,147 | $ 13,419,553 | ||
Repurchase and retirement of common stock (in shares) | ||||||
Issuance of common stock (in shares) | 5,000 | |||||
Exercise of stock options, vesting of restricted stock units and other (in shares) | 44,064 | |||||
Balance at end of year (in shares) at Feb. 28, 2018 | 5,903,436 | 5,903,436 | ||||
Exchange of $.03 par value per share for $.001 par value per share common stock | ||||||
[1] | As revised. Refer to Note 16 for information on immaterial correction of errors in prior period. |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - $ / shares | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | |
Common Stock [Member] | |||
Common stock, par value (in dollars per share) | 0.001 | 0.001 | $ 0.03 |
Additional Paid-in Capital [Member] | |||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.03 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Cash Flows From Operating Activities: | |||
Net income | $ 2,963,908 | $ 3,450,116 | $ 3,806,531 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,319,255 | 1,288,709 | 1,420,301 |
Provision for loss on accounts and notes receivable | 166,868 | 138,125 | 171,000 |
Provision for inventory loss | 225,858 | 100,049 | 76,695 |
Asset impairment and store closure losses | 0 | 2,319,003 | |
Loss on sale of assets | 38,496 | 37,112 | 90,149 |
Expense recorded for stock compensation | 591,839 | 584,893 | 763,094 |
Deferred income taxes | 23,411 | 262,248 | (1,878,205) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (229,948) | (128,404) | 364,767 |
Refundable income taxes | (295,000) | (47,863) | 172,945 |
Inventories | (365,323) | (2,735) | 144,454 |
Other assets | (54,091) | 29,442 | 24,415 |
Accounts payable | 96,491 | (87,657) | (310,533) |
Accrued liabilities | 242,578 | (293,402) | 154,800 |
Deferred income | 33,270 | (9,619) | (531,331) |
Net cash provided by operating activities | 4,757,612 | 5,321,014 | 6,788,085 |
Cash Flows From Investing Activities: | |||
Additions to notes receivable | (14,293) | (133,202) | (46,489) |
Proceeds received on notes receivable | 230,637 | 318,219 | 368,122 |
(Cost of) proceeds from sale or distribution of assets | (7,926) | 39,045 | 23,692 |
Intangible assets | (8,508) | (312,947) | (83,103) |
Decrease (increase) in other assets | 5,529 | 34,479 | (212,860) |
Purchase of property and equipment | (544,956) | (1,238,472) | (743,251) |
Net cash used in investing activities | (339,517) | (1,292,878) | (693,889) |
Cash Flows From Financing Activities: | |||
Payments on long-term debt | (1,302,432) | (1,253,392) | (1,207,234) |
Repurchase of common stock | (351,583) | (3,030,708) | |
Tax (expense) benefit of stock option exercise | (34,128) | 19,868 | |
Dividends paid | (2,821,874) | (2,804,786) | (2,838,545) |
Net cash used in financing activities | (4,124,306) | (4,443,889) | (7,056,619) |
Net Increase (Decrease) In Cash And Cash Equivalents | 293,789 | (415,753) | (962,423) |
Cash And Cash Equivalents At Beginning Of Year | 5,779,195 | 6,194,948 | 7,157,371 |
Cash And Cash Equivalents At End Of Year | $ 6,072,984 | $ 5,779,195 | $ 6,194,948 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE 1 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) and Aspen Leaf Yogurt, LLC (“ALY”), its 46% February 29, 2016 The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, In January 2013, two January 2013, 60% 46% February 28, 2018). In fiscal year (“FY”) 2014, February 29, 2016 February 29, 2016, February 29, 2016. February 28, 2018, 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 operating under the Rocky Mountain Chocolate Factory brand and its subsidiaries at February 28, 2018: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 5 5 Franchise stores – Domestic stores and kiosks 8 183 191 International License Stores 1 67 68 Cold Stone Creamery – co-branded 6 87 93 U-Swirl cafés (Including all associated brands) Company-owned cafés - 2 2 Company-owned cafés – co-branded - 3 3 Franchise and license stores – North American cafés * 103 103 Franchise stores – North American – co-branded * 12 12 International franchise cafés - 1 1 Total 15 463 478 *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 Consolidation Management accounts for the activities of the Company and its subsidiaries, and the accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. As described above, on January 14, 2013, January 14, 2013, January 14, 2013, February 29, 2016 February 29, 2016 February 29, 2016. February 29, 2016, no Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of six $5.6 February 28, 2018. Accounts and Notes Receivable In the normal course of business, the Company extends credit to customers, primarily franchisees that satisfy pre-defined credit criteria. The Company believes that it has limited concentration of credit risk primarily because its receivables are secured by the assets of the franchisees to which the Company ordinarily extends credit, including, but not may February 28, 2018, $368,023 $26,500 4.5% 6%. September 2022 $349,000 Inventories Inventories are stated at the lower of cost or net realizable value. An inventory reserve is established to reduce the cost of obsolete, damaged and excess inventories to the lower of cost or net realizable value based on actual differences. This inventory reserve is determined through analysis of items held in inventory, and, if the recorded value is higher than the market value, the Company records an expense to reduce inventory to its actual market value. The process by which the Company performs its analysis is conducted on an item by item basis and takes into account, among other relevant factors, market value, sales history and future sales potential. Cost is determined using the first first Property and Equipment and Other Assets Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method based upon the estimated useful life of the asset, which range from five thirty-nine The Company reviews its long-lived assets through analysis of estimated fair value, including identifiable intangible assets, whenever events or changes indicate the carrying amount of such assets may not Income Taxes The Company provides for income taxes pursuant to the liability method. The liability method requires recognition of deferred income taxes based on temporary differences between financial reporting and income tax bases of assets and liabilities, using current enacted income tax rates and regulations. These differences will result in taxable income or deductions in future years when the reported amount of the asset or liability is recovered or settled, respectively. Considerable judgment is required in determining when these events may not. 2016 2016 100%, 2017. 2016. fourth 2017 382 16. 6. Gift C ard B reakage The Company and its franchisees sell gift cards that are redeemable for product in our stores. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their stores. A liability for unredeemed gift cards is included in accounts payable and accrued liabilities in the balance sheets. There are no not may not February 28, 2018 2017. $3,057,131 $2,921,585 February 28, 2018 2017, Goodwill Goodwill arose from three first second The Company performs a goodwill impairment test on an annual basis or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not February 29, 2016 February 29, 2016, $1,930,529 fourth 2016, 13 Franchise Rights Franchise rights arose from the entry into agreements to acquire substantially all of the franchise rights of Yogurtini, CherryBerry, Fuzzy Peach, Let’s Yo! and Yogli Mogli. Franchise rights are amortized over a period of 20 Insurance and Self-Insurance Reserves The Company uses a combination of insurance and self-insurance plans to provide for the potential liabilities for workers’ compensation, general liability, property insurance, director and officers’ liability insurance, vehicle liability and employee health care benefits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other assumptions. While the Company believes that its assumptions are appropriate, the estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. Sales Sales of products to franchisees and other customers are recognized at the time of delivery. Sales of products to franchisees and other customers are made at standard prices, without any bargain sales of equipment or supplies. Sales of products at retail stores are recognized at the time of sale. Rebates Rebates received from purveyors that supply products to the Company’s franchisees are included in franchise royalties and fees. Product rebates are recognized in the period in which they are earned. Rebates related to Company-owned locations are offset against operating costs. Shipping Fees Shipping fees charged to customers by the Company’s trucking department are reported as sales. Shipping costs incurred by the Company for inventory are reported as cost of sales or inventory. Franchise and Royalty Fees Franchise fee revenue is recognized upon opening of the franchise store. In addition to the initial franchise fee, the Company also recognizes a marketing and promotion fee of one 1% third 2004, no ten 10% third 2004 five 5% 2.5% 6% In certain instances, the Company is required to pay a portion of franchise fee revenue, or royalty fees to parties the Company has contracted with to assist in developing and growing a brand. The agreements generally include Development Agents, or commissioned brokers who are paid a portion of the initial franchise fee, a portion of the ongoing royalty fees, or both. When such agreements exist, the Company reports franchise fee and royalty fee revenues net of the amount paid, or due, to the agent/broker. Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, and revenues and expenses during the reporting period. Actual results could differ from those estimates. Vulnerability Due to Certain Concentrations Revenue from one $5.1 13% February 28, 2018. may Stock-Based Compensation At February 28, 2018, 2007 The Company recognized $591,839, $584,893, $763,094 February 28 29, 2018, 2017 2016, Beginning March 1, 2017, No. 2019 09, March 1, 2017 February 28 29, 2017 2016 34,128 $19,868, During FY 2018 2017, no no 2018 2017. 17 20% five six $532,739 2018 $564,473 2017. February 28, 2018 $620,753, 1.3 The Company did not February 28, 2018 2,000 February 28, 2017. $0 $20,420 February 28, 2018 2017, During the year ended February 28, 2018, 5,000 $59,100 February 28, 2018. Earnings P er Share Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through stock options and restricted stock units. Following the expiration of all outstanding options, during FY 2018 2017, no 2016, 12,936 Advertising and Promotional Expenses The Company expenses advertising costs as incurred. Total advertising expense for RMCF amounted to $355,678, $279,698, $215,314 February 28 29, 2018, 2017 2016, $222,093, $335,771, $460,034 February 28 29, 2018, 2017 2016, Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, trade receivables, payables, notes payable and notes receivable. The fair value of all instruments approximates the carrying value, because of the relatively short maturity of these instruments. Recent Accounting Pronouncements 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 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 606 no not 15% No |
Note 2 - Inventories
Note 2 - Inventories | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 2 Inventories consist of the following at February 28: 2018 2017 Ingredients and supplies $ 2,764,727 $ 3,021,220 Finished candy 2,371,610 2,137,609 U-Swirl food and packaging 63,843 66,001 Reserve for slow moving inventory (357,706 ) (249,051 ) Total inventories $ 4,842,474 $ 4,975,779 |
Note 3 - Property and Equipment
Note 3 - Property and Equipment, Net | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3 Property and equipment consists of the following at February 28: 2018 2017 Land $ 513,618 $ 513,618 Building 4,905,103 4,787,855 Machinery and equipment 10,686,631 10,598,355 Furniture and fixtures 1,067,788 1,047,319 Leasehold improvements 1,568,260 1,531,112 Transportation equipment 434,091 418,402 Asset impairment (62,891 ) (47,891 ) 19,112,600 18,848,770 Less accumulated depreciation 12,946,360 12,390,839 Property and equipment, net $ 6,166,240 $ 6,457,931 |
Note 4 - Line of Credit and Lon
Note 4 - Line of Credit and Long-term Debt | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 4 Line of Credit At February 28, 2018, $5 may 50% 50% 2.25% 3.9% February 28, 2018). February 28, 2018, $5 February 28, 2018, September 2019 Effective January 16, 2014, $7.0 first $6.4 January 16, 2014 first February 28, 2014. 3.75% January 15, 2020. may Long-term debt consists of the following at February 28: 2018 2017 Note payable in monthly installments of principal and interest at 3.75% per annum through December 2019 collateralized by substantially all business assets. $ 2,529,309 $ 3,831,741 Less current maturities 1,352,893 1,302,501 Long-term obligations $ 1,176,416 $ 2,529,240 The following is a schedule by year of maturities of long-term debt for the years ending February 28 29: 2019 $ 1,352,893 2020 1,176,416 Total $ 2,529,309 |
Note 5 - Commitments and Contin
Note 5 - Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | NOTE 5 Operating Leases The Company conducts its retail operations in facilities leased under non-cancelable operating leases of up to ten five ten The following is a schedule by year of future minimum rental payments required under such leases for the years ending February 28 29: 2019 $ 572,000 2020 272,000 2021 49,000 2022 49,000 2023 49,000 Thereafter 145,000 Total $ 1,136,000 The Company acts as primary lessee of some franchised store premises, which the Company then subleases to franchisees, but the majority of existing locations are leased by the franchisee directly. The Company’s current policy is not March 31, 2018, three 297 1 In some instances, the Company has leased space for its Company-owned locations that are now occupied by franchisees. When the Company-owned location was sold or transferred, the store was subleased to the franchisee who is responsible for the monthly rent and other obligations under the lease. The Company's liability as primary lessee on sublet franchise outlets, all of which is fully offset by sublease rentals, is as follows for the years ending February 28 29: 2019 $ 90,000 2020 81,000 2021 83,000 2022 29,000 Total $ 283,000 The following is a schedule of lease expense for all retail operating leases for the three February 28 29: 2018 2017 2016 Minimum rentals $ 1,270,240 $ 944,938 $ 1,187,003 Less sublease rentals (603,000 ) (318,000 ) (479,000 ) Contingent rentals 26,100 25,200 22,200 $ 693,340 $ 652,138 $ 730,203 In FY 2018, February 28 29: 2019 $ 117,000 2020 121,000 2021 125,000 2022 129,000 2023 134,000 Thereafter 34,000 Total $ 660,000 The Company also leases trucking equipment under operating leases. The following is a schedule by year of future minimum rental payments required under such leases for the years ending February 28 29: 2019 $ 310,000 2020 288,000 2021 288,000 2022 223,000 Total $ 1,109,000 The following is a schedule of lease expense for trucking equipment operating leases for the three February 28 29: 2018 2017 2016 225,992 220,791 182,006 Purchase contracts The Company frequently enters into purchase contracts of between six eighteen may may may February 28, 2018, $529,000 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 6 Income tax expense (benefit) is comprised of the following for the years ended February 28 29: 2018 2017 2016 Current Federal $ 1,916,720 $ 1,411,126 $ 1,420,811 State 220,164 272,214 195,993 Total Current 2,136,884 1,683,340 1,616,804 Deferred Federal 55,658 240,233 (1,725,919 ) State (32,247 ) 22,015 (152,286 ) Total Deferred 23,411 262,248 (1,878,205 ) Total $ 2,160,295 $ 1,945,588 $ (261,401 ) A reconciliation of the statutory federal income tax rate and the effective rate as a percentage of pretax income is as follows for the years ended February 28 29: 2018 2017 2016 Statutory rate 31.9 % 34.0 % 34.0 % State income taxes, net of federal benefit 2.4 % 3.6 % 0.8 % Domestic production deduction (0.9% ) (1.1% ) (3.0% ) Work opportunity tax credits (0.2% ) (0.4% ) - Statutory rate change - - (1.6% ) Other 0.8 % 0.0 % 0.5 % U-Swirl loss carryforward recognized - - (1.8% ) Valuation allowance, U-Swirl Consolidated loss - - (36.3% ) Impact of Tax Reform 8.2 % - - Effective rate – provision (benefit) 42.2 % 36.1 % (7.4% ) The components of deferred income taxes at February 28 Deferred Tax Assets 2018 2017 Allowance for doubtful accounts and notes $ 124,469 $ 198,354 Inventories 86,938 90,027 Accrued compensation 130,049 188,002 Loss provisions and deferred income 817,945 1,175,351 Self-insurance accrual 38,868 37,000 Amortization 520,379 782,683 Restructuring charges 98,728 148,494 U-Swirl accumulated net loss 258,173 164,035 Valuation allowance (98,728 ) (148,494 ) Net deferred tax assets 1,976,821 2,635,452 Deferred Tax Liabilities Depreciation and amortization (1,066,113 ) (1,683,778 ) Prepaid expenses (75,245 ) (92,800 ) Deferred tax liabilities $ (1,141,358 ) $ (1,776,578 ) Net deferred tax assets $ 835,463 $ 858,874 The following table summarizes deferred income tax valuation allowances as of February 28: 2018 2017 Valuation allowance at beginning of period $ 148,494 $ 148,494 Tax expense (benefits) realized by valuation allowance - - Tax benefits released from valuation allowance - - Impact of Tax Reform (49,766 ) - Valuation allowance at end of period $ 98,728 $ 148,494 Income tax expense for the year ended February 28, 2018 February 28, 2017, 21% $421,000 February 29, 2016 2016 $2,149,000 80% 2017. For the year ended February 29, 2016 two 39% March 1, 2016, The Company files income tax returns in the U.S. federal and various state taxing jurisdictions. With few exceptions, the Company is no 2013. February 28, 2015 2014 not Realization of the Company's deferred tax assets is dependent upon the Company generating sufficient taxable income, in the appropriate tax jurisdictions, in future years to obtain benefit from the reversal of net deductible temporary differences. The amount of deferred tax assets considered realizable is subject to adjustment in future periods if estimates of future taxable income are changed. Management believes that, with the exception of the deferred tax asset related to restructuring charges, it is more likely than not February 28, 2018. The Company accounts for uncertainty in income taxes by recognizing the tax benefit from an uncertain tax position only if it is more likely than not 50% may not February 28, 2018 2017. not not twelve February 28, 2018 2017. As of February 29, 2016, February 28, 2015, February 29, 2016, not In accordance with Section 382 may January 2013 February 2016 2017 The Company estimates that the potential future tax deductions of U-Swirl’s Federal net operating losses, limited by section 382, $1,050,000 $258,173. 2026. |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7 Cash Dividend The Company paid a quarterly cash dividend of $0.12 March 10, 2017 February 24, 2017. $0.12 June 16, 2017 June 6, 2017. $0.12 September 15, 2017 September 5, 2017. $0.12 December 8, 2017 November 24, 2017. $0.12 February 15, 2018, March 16, 2018 March 6, 2018. Future declarations of dividends will depend on, among other things, the Company's results of operations, financial condition, capital requirements, and on such other factors as the Company's Board of Directors may Stock Repurchases On July 15, 2014, $3.0 January 13, 2015, $2,058,000 May 21, 2015, $2,090,000 FY 2017 , 35,108 $10.01 not twelve February 28, 2018. February 28, 2018, $638,000 |
Note 8 - Stock Compensation Pla
Note 8 - Stock Compensation Plans | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 8 In FY 2014, 2007 “2007 2007 2007 February 28, 2018: Original share authorization: 300,000 Prior plan shares authorized and incorporated in the 2007 Plan: 85,340 Additional shares authorized through 2007 Plan amendment: 300,000 Available for award: 685,340 Cancelled/forfeited: 196,325 Shares awarded as unrestricted shares, stock options or restricted stock units: (552,076 ) Shares available for award: 329,589 Information with respect to stock option awards outstanding under the 2007 February 28, 2018, three Twelve Months Ended February 28 or 29: 2018 2017 2016 Outstanding stock options at beginning of year: - 12,936 12,936 Granted - - - Exercised - - - Cancelled/forfeited - (12,936 ) - Outstanding stock options as of February 28 or 29: - - 12,936 Weighted average exercise price n/a n/a $ 12.94 Weighted average remaining contractual term (in years) n/a n/a 0.04 Information with respect to restricted stock unit awards outstanding under the 2007 February 28, 2018, three Twelve Months Ended February 28 or 29: 2018 2017 2016 Outstanding non-vested restricted stock units at beginning of year: 123,658 181,742 237,641 Granted - - - Vested (44,064 ) (48,084 ) (55,899 ) Cancelled/forfeited (2,000 ) (10,000 ) - Outstanding non-vested restricted stock units as of February 28 or 29: 77,594 123,658 181,742 Weighted average grant date fair value $ 12.16 $ 12.21 $ 12.22 Weighted average remaining vesting period (in years) 1.27 2.23 3.22 |
Note 9 - Operating Segments
Note 9 - Operating Segments | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 9 The Company classifies its business interests into five 1 FY 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 6,004,897 $ 27,491,089 $ 1,876,021 $ 4,142,085 $ - $ 39,514,092 Intersegment revenues (4,882 ) (1,434,515 ) - - - (1,439,397 ) Revenue from external customers 6,000,015 26,056,574 1,876,021 4,142,085 - 38,074,695 Segment profit (loss) 2,623,081 5,791,980 (37,102 ) 542,073 (3,795,829 ) 5,124,203 Total assets 1,157,158 12,729,659 1,134,876 8,125,171 5,793,771 28,940,635 Capital expenditures 15,429 429,545 33,056 11,899 55,027 544,956 Total depreciation & amortization $ 46,087 $ 540,033 $ 32,567 $ 576,162 $ 124,406 $ 1,319,255 FY 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 5,951,055 $ 26,678,514 $ 1,710,734 $ 5,216,076 $ - $ 39,556,379 Intersegment revenues (5,332 ) (1,254,670 ) - - - (1,260,002 ) Revenue from external customers 5,945,723 25,423,844 1,710,734 5,216,076 - 38,296,377 Segment profit (loss) 2,495,709 5,609,957 128,024 1,017,395 (3,855,380 ) 5,395,705 Total assets 1,216,241 12,900,070 1,101,461 9,124,822 5,075,762 29,418,356 Capital expenditures 15,480 966,619 17,047 40,924 198,402 1,238,472 Total depreciation & amortization $ 54,053 $ 463,996 $ 14,755 $ 622,654 $ 133,251 $ 1,288,709 FY 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 5,947,769 $ 27,726,443 $ 1,622,906 $ 6,535,646 $ - $ 41,832,764 Intersegment revenues (5,185 ) (1,370,684 ) - - - (1,375,869 ) Revenue from external customers 5,942,584 26,355,759 1,622,906 6,535,646 - 40,456,895 Segment profit (loss) 2,608,351 6,731,221 (2,591 ) (2,128,649 ) (3,663,201 ) 3,545,131 Total assets 1,205,616 11,980,933 1,008,783 10,126,209 5,994,184 30,315,725 Capital expenditures 76,762 432,473 3,306 66,476 164,234 743,251 Total depreciation & amortization $ 36,908 $ 406,082 $ 18,236 $ 802,953 $ 156,122 $ 1,420,301 Revenue from one $5.1 13.4 February 28, 2018, $4.1 10.6 February 28, 2017. |
Note 10 - Supplemental Cash Flo
Note 10 - Supplemental Cash Flow Information | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 10 For the three February 28 29: Cash paid for: 2018 2017 2016 Income taxes paid $ 2,431,884 $ 1,997,751 $ 1,383,805 Interest, net 102,640 129,927 170,709 Accrued Inventory 258,247 531,017 298,032 Non-Cash Financing Activities: Dividend payable 708,652 702,525 700,728 Non-Cash Investing Activities: Sale or distribution of assets in exchange for notes receivable Long-lived assets - 20,989 127,500 Other assets $ - $ - $ 75,000 |
Note 11 - Employee Benefit Plan
Note 11 - Employee Benefit Plan | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 11 The Company has a 401 401 3 25% 1.5% February 28 29, 2018, 2017 2016, $68,000, $66,000, $62,000, |
Note 12 - Summarized Quarterly
Note 12 - Summarized Quarterly Data (Unaudited) | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | NOTE 12 Following is a summary of the quarterly results of operations for the fiscal years ended February 28, 2018 2017: Fiscal Quarter First Second Third Fourth Total 2018 Total revenue $ 9,346,447 $ 8,266,691 $ 9,961,572 $ 10,499,985 $ 38,074,695 Gross margin 2,191,974 2,210,910 2,311,579 2,276,586 8,991,049 Net income 813,672 928,284 751,056 470,896 2,963,908 Basic earnings per share 0.14 0.16 0.13 0.08 0.50 Dilute earnings per share $ 0.14 $ 0.16 $ 0.13 $ 0.08 $ 0.50 Fiscal Quarter First Second Third Fourth Total 2017 Total revenue $ 9,376,199 $ 8,601,962 $ 9,955,239 $ 10,362,977 $ 38,296,377 Gross margin 2,222,405 2,289,011 2,706,456 1,922,896 9,140,768 Net income 731,834 974,813 1,011,799 731,670 3,450,116 Basic earnings per share 0.13 0.17 0.17 0.13 0.59 Diluted earnings per share $ 0.12 $ 0.16 $ 0.17 $ 0.12 $ 0.58 |
Note 13 - Goodwill and Intangib
Note 13 - Goodwill and Intangible Assets | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 13 Intangible assets consist of the following at February 28: 2018 2017 Amortization Period Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 212,653 $ 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 - 20 715,339 136,087 715,339 92,758 Franchise Rights 20 5,979,637 1,545,710 5,971,129 1,144,957 Total 7,467,557 2,446,253 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-indefinite life 20,000 - 20,000 - Total 1,709,328 662,384 1,709,328 662,384 Total intangible assets $ 9,176,885 $ 3,108,637 $ 9,168,377 $ 2,663,054 Effective March 1, 2002, 350, no not March 1, 2002. On February 29, 2016, 1, February 29, 2016, $1,930,529 $1,930,529 The following are events that have indicated that it is more likely than not ● 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 International, Inc. as of February 29, 2016 ● The loan covenant for SWRL required that SWRL maintain adjusted EBITDA of $1,804,000 twelve $1,532,000 $1,284,000. ● SWRL franchise stores in operation has declined from a peak of 287 August 31, 2014 210 February 28, 2016. ● During the three six August 31, 2015, Amortization expense related to intangible assets totaled $446,050, $427,840, $378,373 February 28 29, 2018, 2017 2016, At February 28, 2018, 2019 $ 452,069 2020 438,912 2021 427,203 2022 404,022 2023 389,119 Thereafter 2,909,979 Total $ 5,021,304 |
Note 14 - Impairment of Long-li
Note 14 - Impairment of Long-lived Retail Assets And Restructuring Charges | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | NOTE 14 Restructuring and acquisition charges consisted of lease settlement costs of $60,000 2017 $2,326,742 2016. no 2018. |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 15 On May 10, 2018, first FY2019 $0.12 June 15, 2018 June 5, 2018. |
Note 16 - Immaterial Revision o
Note 16 - Immaterial Revision of Previously Reported Income Taxes and Deferred Tax Liabilities | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
Accounting Changes and Error Corrections [Text Block] | NOTE 16 In the fourth 2017, The Company determined that this error was not not February 28, 2017 10 492,766 $192,233 300,533 February 28, 2017. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Feb. 28, 2018 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II - Valuation and Qualifying Accounts Balance at Beginning of Period Additions Charged to Costs & Exp. Deductions Balance at End of Period Year Ended February 28, 2018 Valuation Allowance for Accounts and Notes Receivable 536,093 166,868 196,989 505,972 Year Ended February 29, 2017 Valuation Allowance for Accounts and Notes Receivable 670,471 138,125 272,503 536,093 Year Ended February 28, 2016 Valuation Allowance for Accounts and Notes Receivable 729,060 171,000 229,589 670,471 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 28, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | 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) and Aspen Leaf Yogurt, LLC (“ALY”), its 46% February 29, 2016 The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, In January 2013, two January 2013, 60% 46% February 28, 2018). In fiscal year (“FY”) 2014, February 29, 2016 February 29, 2016, February 29, 2016. February 28, 2018, 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 operating under the Rocky Mountain Chocolate Factory brand and its subsidiaries at February 28, 2018: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 5 5 Franchise stores – Domestic stores and kiosks 8 183 191 International License Stores 1 67 68 Cold Stone Creamery – co-branded 6 87 93 U-Swirl cafés (Including all associated brands) Company-owned cafés - 2 2 Company-owned cafés – co-branded - 3 3 Franchise and license stores – North American cafés * 103 103 Franchise stores – North American – co-branded * 12 12 International franchise cafés - 1 1 Total 15 463 478 *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 |
Consolidation, Policy [Policy Text Block] | Consolidation Management accounts for the activities of the Company and its subsidiaries, and the accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. As described above, on January 14, 2013, January 14, 2013, January 14, 2013, February 29, 2016 February 29, 2016 February 29, 2016. February 29, 2016, no |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of six $5.6 February 28, 2018. |
Receivables, Policy [Policy Text Block] | Accounts and Notes Receivable In the normal course of business, the Company extends credit to customers, primarily franchisees that satisfy pre-defined credit criteria. The Company believes that it has limited concentration of credit risk primarily because its receivables are secured by the assets of the franchisees to which the Company ordinarily extends credit, including, but not may February 28, 2018, $368,023 $26,500 4.5% 6%. September 2022 $349,000 |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or net realizable value. An inventory reserve is established to reduce the cost of obsolete, damaged and excess inventories to the lower of cost or net realizable value based on actual differences. This inventory reserve is determined through analysis of items held in inventory, and, if the recorded value is higher than the market value, the Company records an expense to reduce inventory to its actual market value. The process by which the Company performs its analysis is conducted on an item by item basis and takes into account, among other relevant factors, market value, sales history and future sales potential. Cost is determined using the first first |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment and Other Assets Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method based upon the estimated useful life of the asset, which range from five thirty-nine The Company reviews its long-lived assets through analysis of estimated fair value, including identifiable intangible assets, whenever events or changes indicate the carrying amount of such assets may not |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company provides for income taxes pursuant to the liability method. The liability method requires recognition of deferred income taxes based on temporary differences between financial reporting and income tax bases of assets and liabilities, using current enacted income tax rates and regulations. These differences will result in taxable income or deductions in future years when the reported amount of the asset or liability is recovered or settled, respectively. Considerable judgment is required in determining when these events may not. 2016 2016 100%, 2017. 2016. fourth 2017 382 16. 6. |
Gift Card Breakage, Policy [Policy Text Block] | Gift C ard B reakage The Company and its franchisees sell gift cards that are redeemable for product in our stores. The Company manages the gift card program, and therefore collects all funds from the activation of gift cards and reimburses franchisees for the redemption of gift cards in their stores. A liability for unredeemed gift cards is included in accounts payable and accrued liabilities in the balance sheets. There are no not may not February 28, 2018 2017. $3,057,131 $2,921,585 February 28, 2018 2017, |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill arose from three first second The Company performs a goodwill impairment test on an annual basis or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not February 29, 2016 February 29, 2016, $1,930,529 fourth 2016, 13 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Franchise Rights Franchise rights arose from the entry into agreements to acquire substantially all of the franchise rights of Yogurtini, CherryBerry, Fuzzy Peach, Let’s Yo! and Yogli Mogli. Franchise rights are amortized over a period of 20 |
Insurance and Self-Insurance Reserves [Policy Text Block] | Insurance and Self-Insurance Reserves The Company uses a combination of insurance and self-insurance plans to provide for the potential liabilities for workers’ compensation, general liability, property insurance, director and officers’ liability insurance, vehicle liability and employee health care benefits. Liabilities associated with the risks that are retained by the Company are estimated, in part, by considering historical claims experience, demographic factors, severity factors and other assumptions. While the Company believes that its assumptions are appropriate, the estimated accruals for these liabilities could be significantly affected if future occurrences and claims differ from these assumptions and historical trends. |
Revenue Recognition, Policy [Policy Text Block] | Sales Sales of products to franchisees and other customers are recognized at the time of delivery. Sales of products to franchisees and other customers are made at standard prices, without any bargain sales of equipment or supplies. Sales of products at retail stores are recognized at the time of sale. Rebates Rebates received from purveyors that supply products to the Company’s franchisees are included in franchise royalties and fees. Product rebates are recognized in the period in which they are earned. Rebates related to Company-owned locations are offset against operating costs. Shipping Fees Shipping fees charged to customers by the Company’s trucking department are reported as sales. Shipping costs incurred by the Company for inventory are reported as cost of sales or inventory. Franchise and Royalty Fees Franchise fee revenue is recognized upon opening of the franchise store. In addition to the initial franchise fee, the Company also recognizes a marketing and promotion fee of one 1% third 2004, no ten 10% third 2004 five 5% 2.5% 6% In certain instances, the Company is required to pay a portion of franchise fee revenue, or royalty fees to parties the Company has contracted with to assist in developing and growing a brand. The agreements generally include Development Agents, or commissioned brokers who are paid a portion of the initial franchise fee, a portion of the ongoing royalty fees, or both. When such agreements exist, the Company reports franchise fee and royalty fee revenues net of the amount paid, or due, to the agent/broker. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, and revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Vulnerability Due to Certain Concentrations Revenue from one $5.1 13% February 28, 2018. may |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation At February 28, 2018, 2007 The Company recognized $591,839, $584,893, $763,094 February 28 29, 2018, 2017 2016, Beginning March 1, 2017, No. 2019 09, March 1, 2017 February 28 29, 2017 2016 34,128 $19,868, During FY 2018 2017, no no 2018 2017. 17 20% five six $532,739 2018 $564,473 2017. February 28, 2018 $620,753, 1.3 The Company did not February 28, 2018 2,000 February 28, 2017. $0 $20,420 February 28, 2018 2017, During the year ended February 28, 2018, 5,000 $59,100 February 28, 2018. |
Earnings Per Share, Policy [Policy Text Block] | Earnings P er Share Basic earnings per share is computed as net earnings divided by the weighted average number of common shares outstanding during each year. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through stock options and restricted stock units. Following the expiration of all outstanding options, during FY 2018 2017, no 2016, 12,936 |
Advertising Costs, Policy [Policy Text Block] | Advertising and Promotional Expenses The Company expenses advertising costs as incurred. Total advertising expense for RMCF amounted to $355,678, $279,698, $215,314 February 28 29, 2018, 2017 2016, $222,093, $335,771, $460,034 February 28 29, 2018, 2017 2016, |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, trade receivables, payables, notes payable and notes receivable. The fair value of all instruments approximates the carrying value, because of the relatively short maturity of these instruments. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements 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 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 606 no not 15% No |
Note 1 - Nature of Operations27
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
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 8 183 191 International License Stores 1 67 68 Cold Stone Creamery – co-branded 6 87 93 U-Swirl cafés (Including all associated brands) Company-owned cafés - 2 2 Company-owned cafés – co-branded - 3 3 Franchise and license stores – North American cafés * 103 103 Franchise stores – North American – co-branded * 12 12 International franchise cafés - 1 1 Total 15 463 478 |
Note 2 - Inventories (Tables)
Note 2 - Inventories (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2018 2017 Ingredients and supplies $ 2,764,727 $ 3,021,220 Finished candy 2,371,610 2,137,609 U-Swirl food and packaging 63,843 66,001 Reserve for slow moving inventory (357,706 ) (249,051 ) Total inventories $ 4,842,474 $ 4,975,779 |
Note 3 - Property and Equipme29
Note 3 - Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2018 2017 Land $ 513,618 $ 513,618 Building 4,905,103 4,787,855 Machinery and equipment 10,686,631 10,598,355 Furniture and fixtures 1,067,788 1,047,319 Leasehold improvements 1,568,260 1,531,112 Transportation equipment 434,091 418,402 Asset impairment (62,891 ) (47,891 ) 19,112,600 18,848,770 Less accumulated depreciation 12,946,360 12,390,839 Property and equipment, net $ 6,166,240 $ 6,457,931 |
Note 4 - Line of Credit and L30
Note 4 - Line of Credit and Long-term Debt (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | 2018 2017 Note payable in monthly installments of principal and interest at 3.75% per annum through December 2019 collateralized by substantially all business assets. $ 2,529,309 $ 3,831,741 Less current maturities 1,352,893 1,302,501 Long-term obligations $ 1,176,416 $ 2,529,240 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2019 $ 1,352,893 2020 1,176,416 Total $ 2,529,309 |
Note 5 - Commitments and Cont31
Note 5 - Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 2019 $ 572,000 2020 272,000 2021 49,000 2022 49,000 2023 49,000 Thereafter 145,000 Total $ 1,136,000 2019 $ 117,000 2020 121,000 2021 125,000 2022 129,000 2023 134,000 Thereafter 34,000 Total $ 660,000 2019 $ 310,000 2020 288,000 2021 288,000 2022 223,000 Total $ 1,109,000 |
Schedule of Future Sublease Rental Payments [Table Text Block] | 2019 $ 90,000 2020 81,000 2021 83,000 2022 29,000 Total $ 283,000 |
Schedule of Rent Expense [Table Text Block] | 2018 2017 2016 Minimum rentals $ 1,270,240 $ 944,938 $ 1,187,003 Less sublease rentals (603,000 ) (318,000 ) (479,000 ) Contingent rentals 26,100 25,200 22,200 $ 693,340 $ 652,138 $ 730,203 2018 2017 2016 225,992 220,791 182,006 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2018 2017 2016 Current Federal $ 1,916,720 $ 1,411,126 $ 1,420,811 State 220,164 272,214 195,993 Total Current 2,136,884 1,683,340 1,616,804 Deferred Federal 55,658 240,233 (1,725,919 ) State (32,247 ) 22,015 (152,286 ) Total Deferred 23,411 262,248 (1,878,205 ) Total $ 2,160,295 $ 1,945,588 $ (261,401 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2018 2017 2016 Statutory rate 31.9 % 34.0 % 34.0 % State income taxes, net of federal benefit 2.4 % 3.6 % 0.8 % Domestic production deduction (0.9% ) (1.1% ) (3.0% ) Work opportunity tax credits (0.2% ) (0.4% ) - Statutory rate change - - (1.6% ) Other 0.8 % 0.0 % 0.5 % U-Swirl loss carryforward recognized - - (1.8% ) Valuation allowance, U-Swirl Consolidated loss - - (36.3% ) Impact of Tax Reform 8.2 % - - Effective rate – provision (benefit) 42.2 % 36.1 % (7.4% ) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred Tax Assets 2018 2017 Allowance for doubtful accounts and notes $ 124,469 $ 198,354 Inventories 86,938 90,027 Accrued compensation 130,049 188,002 Loss provisions and deferred income 817,945 1,175,351 Self-insurance accrual 38,868 37,000 Amortization 520,379 782,683 Restructuring charges 98,728 148,494 U-Swirl accumulated net loss 258,173 164,035 Valuation allowance (98,728 ) (148,494 ) Net deferred tax assets 1,976,821 2,635,452 Deferred Tax Liabilities Depreciation and amortization (1,066,113 ) (1,683,778 ) Prepaid expenses (75,245 ) (92,800 ) Deferred tax liabilities $ (1,141,358 ) $ (1,776,578 ) Net deferred tax assets $ 835,463 $ 858,874 |
Summary of Valuation Allowance [Table Text Block] | 2018 2017 Valuation allowance at beginning of period $ 148,494 $ 148,494 Tax expense (benefits) realized by valuation allowance - - Tax benefits released from valuation allowance - - Impact of Tax Reform (49,766 ) - Valuation allowance at end of period $ 98,728 $ 148,494 |
Note 8 - Stock Compensation P33
Note 8 - Stock Compensation Plans (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Original share authorization: 300,000 Prior plan shares authorized and incorporated in the 2007 Plan: 85,340 Additional shares authorized through 2007 Plan amendment: 300,000 Available for award: 685,340 Cancelled/forfeited: 196,325 Shares awarded as unrestricted shares, stock options or restricted stock units: (552,076 ) Shares available for award: 329,589 |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Twelve Months Ended February 28 or 29: 2018 2017 2016 Outstanding stock options at beginning of year: - 12,936 12,936 Granted - - - Exercised - - - Cancelled/forfeited - (12,936 ) - Outstanding stock options as of February 28 or 29: - - 12,936 Weighted average exercise price n/a n/a $ 12.94 Weighted average remaining contractual term (in years) n/a n/a 0.04 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Twelve Months Ended February 28 or 29: 2018 2017 2016 Outstanding non-vested restricted stock units at beginning of year: 123,658 181,742 237,641 Granted - - - Vested (44,064 ) (48,084 ) (55,899 ) Cancelled/forfeited (2,000 ) (10,000 ) - Outstanding non-vested restricted stock units as of February 28 or 29: 77,594 123,658 181,742 Weighted average grant date fair value $ 12.16 $ 12.21 $ 12.22 Weighted average remaining vesting period (in years) 1.27 2.23 3.22 |
Note 9 - Operating Segments (Ta
Note 9 - Operating Segments (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | FY 2018 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 6,004,897 $ 27,491,089 $ 1,876,021 $ 4,142,085 $ - $ 39,514,092 Intersegment revenues (4,882 ) (1,434,515 ) - - - (1,439,397 ) Revenue from external customers 6,000,015 26,056,574 1,876,021 4,142,085 - 38,074,695 Segment profit (loss) 2,623,081 5,791,980 (37,102 ) 542,073 (3,795,829 ) 5,124,203 Total assets 1,157,158 12,729,659 1,134,876 8,125,171 5,793,771 28,940,635 Capital expenditures 15,429 429,545 33,056 11,899 55,027 544,956 Total depreciation & amortization $ 46,087 $ 540,033 $ 32,567 $ 576,162 $ 124,406 $ 1,319,255 FY 2017 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 5,951,055 $ 26,678,514 $ 1,710,734 $ 5,216,076 $ - $ 39,556,379 Intersegment revenues (5,332 ) (1,254,670 ) - - - (1,260,002 ) Revenue from external customers 5,945,723 25,423,844 1,710,734 5,216,076 - 38,296,377 Segment profit (loss) 2,495,709 5,609,957 128,024 1,017,395 (3,855,380 ) 5,395,705 Total assets 1,216,241 12,900,070 1,101,461 9,124,822 5,075,762 29,418,356 Capital expenditures 15,480 966,619 17,047 40,924 198,402 1,238,472 Total depreciation & amortization $ 54,053 $ 463,996 $ 14,755 $ 622,654 $ 133,251 $ 1,288,709 FY 2016 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 5,947,769 $ 27,726,443 $ 1,622,906 $ 6,535,646 $ - $ 41,832,764 Intersegment revenues (5,185 ) (1,370,684 ) - - - (1,375,869 ) Revenue from external customers 5,942,584 26,355,759 1,622,906 6,535,646 - 40,456,895 Segment profit (loss) 2,608,351 6,731,221 (2,591 ) (2,128,649 ) (3,663,201 ) 3,545,131 Total assets 1,205,616 11,980,933 1,008,783 10,126,209 5,994,184 30,315,725 Capital expenditures 76,762 432,473 3,306 66,476 164,234 743,251 Total depreciation & amortization $ 36,908 $ 406,082 $ 18,236 $ 802,953 $ 156,122 $ 1,420,301 |
Note 10 - Supplemental Cash F35
Note 10 - Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Cash paid for: 2018 2017 2016 Income taxes paid $ 2,431,884 $ 1,997,751 $ 1,383,805 Interest, net 102,640 129,927 170,709 Accrued Inventory 258,247 531,017 298,032 Non-Cash Financing Activities: Dividend payable 708,652 702,525 700,728 Non-Cash Investing Activities: Sale or distribution of assets in exchange for notes receivable Long-lived assets - 20,989 127,500 Other assets $ - $ - $ 75,000 |
Note 12 - Summarized Quarterl36
Note 12 - Summarized Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | First Second Third Fourth Total 2018 Total revenue $ 9,346,447 $ 8,266,691 $ 9,961,572 $ 10,499,985 $ 38,074,695 Gross margin 2,191,974 2,210,910 2,311,579 2,276,586 8,991,049 Net income 813,672 928,284 751,056 470,896 2,963,908 Basic earnings per share 0.14 0.16 0.13 0.08 0.50 Dilute earnings per share $ 0.14 $ 0.16 $ 0.13 $ 0.08 $ 0.50 First Second Third Fourth Total 2017 Total revenue $ 9,376,199 $ 8,601,962 $ 9,955,239 $ 10,362,977 $ 38,296,377 Gross margin 2,222,405 2,289,011 2,706,456 1,922,896 9,140,768 Net income 731,834 974,813 1,011,799 731,670 3,450,116 Basic earnings per share 0.13 0.17 0.17 0.13 0.59 Diluted earnings per share $ 0.12 $ 0.16 $ 0.17 $ 0.12 $ 0.58 |
Note 13 - Goodwill and Intang37
Note 13 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | 2018 2017 Amortization Period Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 220,778 $ 212,653 $ 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 - 20 715,339 136,087 715,339 92,758 Franchise Rights 20 5,979,637 1,545,710 5,971,129 1,144,957 Total 7,467,557 2,446,253 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-indefinite life 20,000 - 20,000 - Total 1,709,328 662,384 1,709,328 662,384 Total intangible assets $ 9,176,885 $ 3,108,637 $ 9,168,377 $ 2,663,054 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2019 $ 452,069 2020 438,912 2021 427,203 2022 404,022 2023 389,119 Thereafter 2,909,979 Total $ 5,021,304 |
Schedule II - Valuation and Q38
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Feb. 28, 2018 | |
Notes Tables | |
Valuation and Qualifying Accounts Disclosure [Table Text Block] | Balance at Beginning of Period Additions Charged to Costs & Exp. Deductions Balance at End of Period Year Ended February 28, 2018 Valuation Allowance for Accounts and Notes Receivable 536,093 166,868 196,989 505,972 Year Ended February 29, 2017 Valuation Allowance for Accounts and Notes Receivable 670,471 138,125 272,503 536,093 Year Ended February 28, 2016 Valuation Allowance for Accounts and Notes Receivable 729,060 171,000 229,589 670,471 |
Note 1 - Nature of Operations39
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||
Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2016 | Jan. 31, 2013 | |
Assets, Total | $ 28,940,635 | $ 29,418,356 | $ 28,940,635 | $ 29,418,356 | $ 30,315,725 | ||||||||
Cash, Uninsured Amount | 5,600,000 | 5,600,000 | |||||||||||
Financing Receivable, Gross | 368,023 | 368,023 | |||||||||||
Financing Receivable, Allowance for Credit Losses, Ending Balance | 26,500 | 26,500 | |||||||||||
Gift Card Liability, Current | 3,057,131 | 2,921,585 | 3,057,131 | 2,921,585 | |||||||||
Revenues, Total | $ 10,499,985 | $ 9,961,572 | $ 8,266,691 | $ 9,346,447 | $ 10,362,977 | $ 9,955,239 | $ 8,601,962 | $ 9,376,199 | 38,074,695 | 38,296,377 | |||
Allocated Share-based Compensation Expense, Total | $ 591,839 | 584,893 | 763,094 | ||||||||||
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 34,128 | $ 19,868 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |||||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||||
Contract with Customer, Liabilities, Cumulative Adjustment, Percentage | 15.00% | 15.00% | |||||||||||
Employee Stock Option [Member] | |||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 12,936 | ||||||||||
Independent Contractor [Member] | |||||||||||||
Allocated Share-based Compensation Expense, Total | $ 59,100 | ||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 5,000 | ||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||
Allocated Share-based Compensation Expense, Total | $ 532,739 | $ 564,473 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total | $ 620,753 | $ 620,753 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 109 days | ||||||||||||
Unrestricted Shares of Stock [Member] | |||||||||||||
Allocated Share-based Compensation Expense, Total | $ 0 | $ 20,420 | |||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 0 | 2,000 | |||||||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||||||||||
Number of Major Customers | 1 | ||||||||||||
Revenues, Total | $ 5,100,000 | ||||||||||||
Concentration Risk, Percentage | 13.00% | ||||||||||||
Marketing and Promotion Fee [Member] | |||||||||||||
Franchise Fee Rate | 1.00% | ||||||||||||
Products Sold [Member] | |||||||||||||
Franchise Fee Rate | 10.00% | ||||||||||||
Gross Retail Sales In Stores Opened Prior To July 2004 [Member] | |||||||||||||
Franchise Fee Rate | 5.00% | ||||||||||||
Franchise Rights [Member] | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||||||||||||
U-Swirl International, Inc. [Member] | |||||||||||||
Goodwill, Impairment Loss | $ 1,930,529 | ||||||||||||
Secured by Assets Financed [Member] | |||||||||||||
Financing Receivable, Gross | $ 349,000 | $ 349,000 | |||||||||||
Minimum [Member] | |||||||||||||
Financing Receivable Interest Rate | 4.50% | 4.50% | |||||||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||||||||
Percent of Retail Sales | 2.50% | 2.50% | |||||||||||
Minimum [Member] | Restricted Stock Units (RSUs) [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 | ||||||||||||
Maximum [Member] | |||||||||||||
Financing Receivable Interest Rate | 6.00% | 6.00% | |||||||||||
Property, Plant and Equipment, Useful Life | 39 years | ||||||||||||
Percent of Retail Sales | 6.00% | 6.00% | |||||||||||
Maximum [Member] | Restricted Stock Units (RSUs) [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 | ||||||||||||
USwirl Inc [Member] | |||||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 46.00% | 46.00% | 39.00% | ||||||||||
Equity Method Investment, Ownership Percentage | 60.00% | ||||||||||||
Assets, Total | 0 | ||||||||||||
Advertising Expense | $ 222,093 | $ 335,771 | 460,034 | ||||||||||
USwirl Inc [Member] | Operating Assets [Member] | |||||||||||||
Assets, Total | $ 0 | 0 | |||||||||||
Rocky Mountain Chocolate Factory [Member] | |||||||||||||
Advertising Expense | $ 355,678 | $ 279,698 | $ 215,314 |
Note 1 - Nature of Operations40
Note 1 - Nature of Operations and Summary of Significant Accounting Policies - Number of Stores (Details) | Feb. 28, 2018 | Feb. 28, 2016 | |
Number of stores | 478 | ||
USwirl Inc [Member] | |||
Number of stores | 210 | ||
Sold Not Yet Open [Member] | |||
Number of stores | 15 | ||
Open [Member] | |||
Number of stores | 463 | ||
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 | 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 | 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 | 191 | ||
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |||
Number of stores | 8 | ||
Franchise Stores - Domestic Stores and Kiosks [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |||
Number of stores | 183 | ||
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | |||
Number of stores | 68 | ||
International License Stores [Member] | USwirl Inc [Member] | |||
Number of stores | 1 | ||
International License Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |||
Number of stores | 1 | ||
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 | 67 | ||
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 | 93 | ||
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |||
Number of stores | 6 | ||
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |||
Number of stores | 87 | ||
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 | 103 | ||
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 | 103 | ||
Franchise Stores - North American - Co-branded [Member] | USwirl Inc [Member] | |||
Number of stores | 12 | ||
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 | 12 | ||
[1] | U-Swirl cafe 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 - Inventories - Inventor
Note 2 - Inventories - Inventories (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 |
Ingredients and supplies | $ 2,764,727 | $ 3,021,220 |
Finished candy | 2,371,610 | 2,137,609 |
U-Swirl food and packaging | 63,843 | 66,001 |
Reserve for slow moving inventory | (357,706) | (249,051) |
Total inventories | $ 4,842,474 | $ 4,975,779 |
Note 3 - Property and Equipme42
Note 3 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Property, plant and equipment, gross | $ 19,112,600 | $ 18,848,770 |
Asset impairment | (62,891) | (47,891) |
Less accumulated depreciation | 12,946,360 | 12,390,839 |
Property and equipment, net | 6,166,240 | 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 | 10,686,631 | 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 | 1,568,260 | 1,531,112 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 434,091 | $ 418,402 |
Note 4 - Line of Credit and L43
Note 4 - Line of Credit and Long-term Debt (Details Textual) - USD ($) $ in Millions | Jan. 16, 2014 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2014 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | 3.75% | |
Wells Fargo Bank [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 7 | |||
Proceeds from Lines of Credit, Total | $ 6.4 | |||
Line of Credit [Member] | Wells Fargo Bank [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.90% | |||
Line of Credit Facility, Remaining Borrowing Capacity | $ 5 | |||
Line of Credit [Member] | Wells Fargo Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||
Eligible Inventories [Member] | ||||
Maximum Draws Allowed | 50.00% |
Note 4 - Line of Credit and L44
Note 4 - Line of Credit and Long-term Debt - Long-term Note Payable (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 |
Note payable in monthly installments of principal and interest at 3.75% per annum through December 2019 collateralized by substantially all business assets. | $ 2,529,309 | $ 3,831,741 |
Less current maturities | 1,352,893 | 1,302,501 |
Long-term obligations | $ 1,176,416 | $ 2,529,240 |
Note 4 - Line of Credit and L45
Note 4 - Line of Credit and Long-term Debt - Long-term Note Payable (Details) (Parentheticals) | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 28, 2014 |
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | 3.75% |
Note 4 - Line of Credit and L46
Note 4 - Line of Credit and Long-term Debt - Annual Maturities of Notes Payable (Details) | Feb. 28, 2018USD ($) |
2,019 | $ 1,352,893 |
2,020 | 1,176,416 |
Total | $ 2,529,309 |
Note 5 - Commitments and Cont47
Note 5 - Commitments and Contingencies (Details Textual) | 12 Months Ended |
Feb. 28, 2018USD ($) | |
Number of Stores | 478 |
Contractual Obligation, Total | $ 529,000 |
Primary Lessee [Member] | |
Number of Stores | 297 |
Franchised Stores [Member] | Primary Lessee [Member] | |
Number of Stores | 3 |
Former Office Space [Member] | Primary Lessee [Member] | |
Number of Stores | 1 |
Maximum [Member] | |
Purchase Contracts, Term | 1 year 180 days |
Maximum [Member] | Retail Operations Facilities [Member] | |
Lessee, Operating Lease, Term of Contract | 10 years |
Lessee, Operating Lease, Renewal Term | 10 years |
Minimum [Member] | |
Purchase Contracts, Term | 180 days |
Minimum [Member] | Retail Operations Facilities [Member] | |
Lessee, Operating Lease, Renewal Term | 5 years |
Note 5 - Commitments and Cont48
Note 5 - Commitments and Contingencies - Future Minimum Rental Payments Under Operating Leases (Details) | Feb. 28, 2018USD ($) |
Retail Operations Facilities [Member] | |
2,019 | $ 572,000 |
2,020 | 272,000 |
2,021 | 49,000 |
2,022 | 49,000 |
2,023 | 49,000 |
Thereafter | 145,000 |
Total | 1,136,000 |
Warehouse Space [Member] | |
2,019 | 117,000 |
2,020 | 121,000 |
2,021 | 125,000 |
2,022 | 129,000 |
2,023 | 134,000 |
Thereafter | 34,000 |
Total | 660,000 |
Trucking Equipment [Member] | |
2,019 | 310,000 |
2,020 | 288,000 |
2,021 | 288,000 |
2,022 | 223,000 |
Total | $ 1,109,000 |
Note 5 - Commitments and Cont49
Note 5 - Commitments and Contingencies - Sublease Rental Income (Details) | Feb. 28, 2018USD ($) |
2,019 | $ 90,000 |
2,020 | 81,000 |
2,021 | 83,000 |
2,022 | 29,000 |
Total | $ 283,000 |
Note 5 - Commitments and Cont50
Note 5 - Commitments and Contingencies - Net Lease Expense for Operating Leases (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Minimum rentals | $ 1,270,240 | $ 944,938 | $ 1,187,003 |
Less sublease rentals | (603,000) | (318,000) | (479,000) |
Contingent rentals | 26,100 | 25,200 | 22,200 |
Retail operating lease expense | 693,340 | 652,138 | 730,203 |
Trucking Equipment [Member] | |||
Lease and rental expense | $ 225,992 | $ 220,791 | $ 182,006 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | Feb. 28, 2016 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 421,000 | |||
Income Tax Expense (Benefit), Total | 2,160,295 | $ 1,945,589 | $ (261,401) | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 258,173 | $ 164,035 | ||
USwirl Inc [Member] | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 46.00% | 39.00% | ||
U-Swirl Segment [Member] | ||||
Income Tax Expense (Benefit), Total | $ (2,149,000) | |||
Operating Loss Carryforwards, Total | $ 1,050,000 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 258,173 |
Note 6 - Income Taxes - Income
Note 6 - Income Taxes - Income Tax Expense (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Federal | $ 1,916,720 | $ 1,411,126 | $ 1,420,811 |
State | 220,164 | 272,214 | 195,993 |
Total Current | 2,136,884 | 1,683,340 | 1,616,804 |
Federal | 55,658 | 240,233 | (1,725,919) |
State | (32,247) | 22,015 | (152,286) |
Total Deferred | 23,411 | 262,248 | (1,878,205) |
Total | $ 2,160,295 | $ 1,945,589 | $ (261,401) |
Note 6 - Income Taxes - Reconci
Note 6 - Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate and the Effective Rate (Details) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Statutory rate | 31.90% | 34.00% | 34.00% |
State income taxes, net of federal benefit | 2.40% | 3.60% | 0.80% |
Domestic production deduction | (0.90%) | (1.10%) | (3.00%) |
Work opportunity tax credits | (0.20%) | (0.40%) | |
Statutory rate change | (1.60%) | ||
Other | 0.80% | 0.00% | 0.50% |
U-Swirl loss carryforward recognized | (1.80%) | ||
Valuation allowance, U-Swirl Consolidated loss | (36.30%) | ||
Impact of Tax Reform | 8.20% | ||
Effective rate – provision (benefit) | 42.20% | 36.10% | (7.40%) |
Note 6 - Income Taxes - Compone
Note 6 - Income Taxes - Components of Deferred Income Taxes (Details) - USD ($) | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 |
Allowance for doubtful accounts and notes | $ 124,469 | $ 198,354 | |
Inventories | 86,938 | 90,027 | |
Accrued compensation | 130,049 | 188,002 | |
Loss provisions and deferred income | 817,945 | 1,175,351 | |
Self-insurance accrual | 38,868 | 37,000 | |
Amortization | 520,379 | 782,683 | |
Restructuring charges | 98,728 | 148,494 | |
U-Swirl accumulated net loss | 258,173 | 164,035 | |
Valuation allowance | (98,728) | (148,494) | $ (148,494) |
Net deferred tax assets | 1,976,821 | 2,635,452 | |
Depreciation and amortization | (1,066,113) | (1,683,778) | |
Prepaid expenses | (75,245) | (92,800) | |
Deferred tax liabilities | (1,141,358) | (1,776,578) | |
Net deferred tax assets | $ 835,463 | $ 858,874 |
Note 6 - Income Taxes - Summary
Note 6 - Income Taxes - Summary of Deferred Income Tax Valuation Allowances (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Valuation allowance at beginning of period | $ 148,494 | $ 148,494 |
Tax expense (benefits) realized by valuation allowance | ||
Tax benefits released from valuation allowance | ||
Impact of Tax Reform | (49,766) | |
Valuation allowance at end of period | $ 98,728 | $ 148,494 |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Details Textual) - USD ($) | Feb. 15, 2018 | Dec. 08, 2017 | Sep. 15, 2017 | Jun. 16, 2017 | Mar. 10, 2017 | Nov. 30, 2016 | Feb. 28, 2018 | May 21, 2015 | Jan. 13, 2015 | Jul. 15, 2014 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.12 | $ 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 | 35,108 | 0 | ||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 10.01 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 638,000 |
Note 8 - Stock Compensation P57
Note 8 - Stock Compensation Plans - Summarizes Stock Awards (Details) - 2007 Equity Incentive Plan [Member | 12 Months Ended |
Feb. 28, 2018shares | |
Original share authorization: (in shares) | 300,000 |
Prior plan shares authorized and incorporated in the 2007 Plan: (in shares) | 85,340 |
Additional shares authorized through 2007 Plan amendment: (in shares) | 300,000 |
Available for award: (in shares) | 685,340 |
Cancelled/forfeited: (in shares) | 196,325 |
Shares awarded as unrestricted shares, stock options or restricted stock units: (in shares) | (552,076) |
Shares available for award: (in shares) | 329,589 |
Note 8 - Stock Compensation P58
Note 8 - Stock Compensation Plans - Stock Option Awards Outstanding Under the Plans (Details) - $ / shares | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Outstanding stock options at beginning of year: (in shares) | 12,936 | 12,936 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | |
Exercised (in shares) | |||
Cancelled/forfeited (in shares) | (12,936) | ||
Outstanding stock options as of February 28 or 29: (in shares) | 12,936 | ||
Weighted average exercise price (in dollars per share) | $ 12.94 | ||
Weighted average remaining contractual term (Year) | 14 days |
Note 8 - Stock Compensation P59
Note 8 - Stock Compensation Plans - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Outstanding non-vested restricted stock units at beginning of year: (in shares) | 123,658 | 181,742 | 237,641 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | |
Vested (in shares) | (44,064) | (48,084) | (55,899) |
Cancelled/forfeited (in shares) | (2,000) | (10,000) | |
Outstanding non-vested restricted stock units as of February 28 or 29: (in shares) | 77,594 | 123,658 | 181,742 |
Weighted average grant date fair value (in dollars per share) | $ 12.16 | $ 12.21 | $ 12.22 |
Weighted average remaining vesting period (Year) | 1 year 98 days | 2 years 83 days | 3 years 80 days |
Note 9 - Operating Segments (De
Note 9 - Operating Segments (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | |
Number of Reportable Segments | 5 | |||||||||
Revenues, Total | $ 10,499,985 | $ 9,961,572 | $ 8,266,691 | $ 9,346,447 | $ 10,362,977 | $ 9,955,239 | $ 8,601,962 | $ 9,376,199 | $ 38,074,695 | $ 38,296,377 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||||||||
Revenues, Total | $ 5,100,000 | |||||||||
Concentration Risk, Percentage | 13.00% | |||||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | ||||||||||
Revenues, Total | $ 5,100,000 | $ 4,100,000 | ||||||||
Concentration Risk, Percentage | 13.40% | 10.60% |
Note 9 - Operating Segments - S
Note 9 - Operating Segments - Segment Information (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Revenues | $ 38,074,695 | $ 38,296,377 | $ 40,456,895 |
Segment profit (loss) | 5,124,203 | 5,395,705 | 3,545,131 |
Assets, Total | 28,940,635 | 29,418,356 | 30,315,725 |
Capital expenditures | 544,956 | 1,238,472 | 743,251 |
Total depreciation and amortization | 1,319,255 | 1,288,709 | 1,420,301 |
Franchising [Member] | |||
Revenues | 6,000,015 | 5,945,723 | 5,942,584 |
Segment profit (loss) | 2,623,081 | 2,495,709 | 2,608,351 |
Assets, Total | 1,157,158 | 1,216,241 | 1,205,616 |
Capital expenditures | 15,429 | 15,480 | 76,762 |
Total depreciation and amortization | 46,087 | 54,053 | 36,908 |
Manufacturing [Member] | |||
Revenues | 26,056,574 | 25,423,844 | 26,355,759 |
Segment profit (loss) | 5,791,980 | 5,609,957 | 6,731,221 |
Assets, Total | 12,729,659 | 12,900,070 | 11,980,933 |
Capital expenditures | 429,545 | 966,619 | 432,473 |
Total depreciation and amortization | 540,033 | 463,996 | 406,082 |
Retail Segment [Member] | |||
Revenues | 1,876,021 | 1,710,734 | 1,622,906 |
Segment profit (loss) | (37,102) | 128,024 | (2,591) |
Assets, Total | 1,134,876 | 1,101,461 | 1,008,783 |
Capital expenditures | 33,056 | 17,047 | 3,306 |
Total depreciation and amortization | 32,567 | 14,755 | 18,236 |
U-Swirl Segment [Member] | |||
Revenues | 4,142,085 | 5,216,076 | 6,535,646 |
Segment profit (loss) | 542,073 | 1,017,395 | (2,128,649) |
Assets, Total | 8,125,171 | 9,124,822 | 10,126,209 |
Capital expenditures | 11,899 | 40,924 | 66,476 |
Total depreciation and amortization | 576,162 | 622,654 | 802,953 |
Other Segments [Member] | |||
Revenues | 0 | 0 | |
Segment profit (loss) | (3,795,829) | (3,855,380) | (3,663,201) |
Assets, Total | 5,793,771 | 5,075,762 | 5,994,184 |
Capital expenditures | 55,027 | 198,402 | 164,234 |
Total depreciation and amortization | 124,406 | 133,251 | 156,122 |
Operating Segments [Member] | |||
Revenues | 39,514,092 | 39,556,379 | 41,832,764 |
Operating Segments [Member] | Franchising [Member] | |||
Revenues | 6,004,897 | 5,951,055 | 5,947,769 |
Operating Segments [Member] | Manufacturing [Member] | |||
Revenues | 27,491,089 | 26,678,514 | 27,726,443 |
Operating Segments [Member] | Retail Segment [Member] | |||
Revenues | 1,876,021 | 1,710,734 | 1,622,906 |
Operating Segments [Member] | U-Swirl Segment [Member] | |||
Revenues | 4,142,085 | 5,216,076 | 6,535,646 |
Operating Segments [Member] | Other Segments [Member] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | |||
Revenues | (1,439,397) | (1,260,002) | (1,375,869) |
Intersegment Eliminations [Member] | Franchising [Member] | |||
Revenues | (4,882) | (5,332) | (5,185) |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||
Revenues | (1,434,515) | (1,254,670) | (1,370,684) |
Intersegment Eliminations [Member] | Retail Segment [Member] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||
Revenues | 0 | 0 | |
Intersegment Eliminations [Member] | Other Segments [Member] | |||
Revenues | $ 0 | $ 0 |
Note 10 - Supplemental Cash F62
Note 10 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Income taxes paid | $ 2,431,884 | $ 1,997,751 | $ 1,383,805 |
Interest, net | 102,640 | 129,927 | 170,709 |
Accrued Inventory | 258,247 | 531,017 | 298,032 |
Dividend payable | 708,652 | 702,525 | 700,728 |
Sale of Long Lived Assets [Member] | |||
Notes receiavable | 20,989 | 127,500 | |
Sale of Other Assets [Member] | |||
Notes receiavable | $ 75,000 |
Note 11 - Employee Benefit Pl63
Note 11 - Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Defined Contribution Plan Employers Matching Contribution Vesting Period | 3 years | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 25.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 1.50% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 68,000 | $ 66,000 | $ 62,000 |
Note 12 - Summarized Quarterl64
Note 12 - Summarized Quarterly Data (Unaudited) - Quarterly Results of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2017 | Feb. 28, 2017 | Nov. 30, 2016 | Aug. 31, 2016 | May 31, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Revenues, Total | $ 10,499,985 | $ 9,961,572 | $ 8,266,691 | $ 9,346,447 | $ 10,362,977 | $ 9,955,239 | $ 8,601,962 | $ 9,376,199 | $ 38,074,695 | $ 38,296,377 | |
Gross margin | 2,276,586 | 2,311,579 | 2,210,910 | 2,191,974 | 1,922,896 | 2,706,456 | 2,289,011 | 2,222,405 | 8,991,049 | 9,140,768 | |
Net income | $ 470,896 | $ 751,056 | $ 928,284 | $ 813,672 | $ 731,670 | $ 1,011,799 | $ 974,813 | $ 731,834 | $ 2,963,908 | $ 3,450,116 | $ 4,425,907 |
Basic earnings per share (in dollars per share) | $ 0.08 | $ 0.13 | $ 0.16 | $ 0.14 | $ 0.13 | $ 0.17 | $ 0.17 | $ 0.13 | $ 0.50 | $ 0.59 | $ 0.75 |
Diluted earnings per share (in dollars per share) | $ 0.08 | $ 0.13 | $ 0.16 | $ 0.14 | $ 0.12 | $ 0.17 | $ 0.16 | $ 0.12 | $ 0.50 | $ 0.58 | $ 0.73 |
Note 13 - Goodwill and Intang65
Note 13 - Goodwill and Intangible Assets (Details Textual) | 12 Months Ended | |||
Feb. 28, 2018USD ($) | Feb. 28, 2017USD ($) | Feb. 29, 2016USD ($) | Feb. 28, 2016 | |
Number of Stores | 478 | |||
Amortization of Intangible Assets, Total | $ 446,050 | $ 427,840 | $ 378,373 | |
USwirl Inc [Member] | ||||
EBITDA Requirement | 1,804,000 | |||
Number of Stores | 210 | |||
USwirl Inc [Member] | Minimum [Member] | ||||
Ajusted EBITDA | 1,532,000 | |||
USwirl Inc [Member] | Maximum [Member] | ||||
Ajusted EBITDA | 1,284,000 | |||
U-Swirl International, Inc. [Member] | ||||
Goodwill, Impairment Loss | $ 1,930,529 |
Note 13 - Goodwill and Intang66
Note 13 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2018 | Feb. 28, 2017 | |
Intangible assets subject to amortization, gross carrying value | $ 7,467,557 | $ 7,459,049 |
Intangible assets subject to amortization, accumulated amortization | 2,446,253 | 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 |
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 | 3,108,637 | 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 |
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 |
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 |
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 | ||
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 | 212,653 | 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 | $ 136,087 | 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 | $ 1,545,710 | $ 1,144,957 |
Note 13 - Goodwill and Intang67
Note 13 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Feb. 28, 2018USD ($) |
2,019 | $ 452,069 |
2,020 | 438,912 |
2,021 | 427,203 |
2,022 | 404,022 |
2,023 | 389,119 |
Thereafter | 2,909,979 |
Total | $ 5,021,304 |
Note 14 - Impairment of Long-68
Note 14 - Impairment of Long-lived Retail Assets And Restructuring Charges (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Restructuring Costs, Total | $ 0 | $ 60,000 | |
Asset Impairment Charges, Including Accrued Impairment Charges | $ 2,326,742 | ||
Asset Impairment Charges, Total | $ 0 | $ 2,319,003 |
Note 15 - Subsequent Events (De
Note 15 - Subsequent Events (Details Textual) | May 22, 2018$ / shares |
Subsequent Event [Member] | |
Common Stock, Dividends, Per Share, Declared | $ 0.12 |
Note 16 - Immaterial Revision70
Note 16 - Immaterial Revision of Previously Reported Income Taxes and Deferred Tax Liabilities (Details Textual) | 12 Months Ended |
Feb. 28, 2017USD ($) | |
Correction to Retained Earnings [Member] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ (492,766) |
Correction to Accrued Liabilities [Member] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | 192,233 |
Correction to Deferred Tax Assets [Member] | |
Quantifying Misstatement in Current Year Financial Statements, Amount | $ (300,533) |
Schedule II - Valuation and Q71
Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2018 | Feb. 28, 2017 | Feb. 29, 2016 | |
Valuation Allowance for Accounts and Notes Receivable Beginning Balance | $ 536,093 | $ 670,471 | $ 729,060 |
Valuation Allowance and Reserves Charged to Cost and Expense | 166,868 | 138,125 | 171,000 |
Valuation Allowances and Reserves Deductions | 196,989 | 272,503 | 229,589 |
Valuation Allowance for Accounts and Notes Receivable Ending Balance | $ 505,972 | $ 536,093 | $ 670,471 |