Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Aug. 31, 2020 | Oct. 10, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | Rocky Mountain Chocolate Factory, Inc. | |
Entity Central Index Key | 0001616262 | |
Trading Symbol | rmcf | |
Current Fiscal Year End Date | --02-28 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 6,070,925 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Aug. 31, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.001 par value per share; Preferred Stock Purchase Rights |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Revenues | ||||
Total revenues | $ 5,327,402 | $ 7,385,270 | $ 8,029,839 | $ 15,811,269 |
Costs and Expenses | ||||
Cost of sales | 3,053,563 | 3,738,435 | 5,936,779 | 8,353,179 |
Sales and marketing | 408,919 | 434,782 | 883,009 | 991,433 |
General and administrative | 788,543 | 830,451 | 3,968,018 | 1,975,182 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $158,203, $147,415, $315,712 and $293,114, respectively, included in cost of sales | 176,650 | 225,417 | 362,255 | 457,372 |
Costs associated with Company-owned store closures | 68,558 | |||
Total costs and expenses | 5,208,045 | 6,140,027 | 12,739,445 | 13,620,023 |
Income (Loss) from Operations | 119,357 | 1,245,243 | (4,709,606) | 2,191,246 |
Other Income (Expense) | ||||
Interest Expense | (23,989) | (3,487) | (47,551) | (15,885) |
Interest Income | 5,365 | 6,007 | 11,165 | 16,186 |
Other income (expense), net | (18,624) | 2,520 | (36,386) | 301 |
Income (Loss) Before Income Taxes | 100,733 | 1,247,763 | (4,745,992) | 2,191,547 |
Income Tax Provision (Benefit) | 24,601 | 329,675 | (1,154,727) | 561,850 |
Consolidated Net Income (Loss) | $ 76,132 | $ 918,088 | $ (3,591,265) | $ 1,629,697 |
Basic Earnings (Loss) per Common Share (in dollars per share) | $ 0.01 | $ 0.15 | $ (0.59) | $ 0.27 |
Diluted Earnings (Loss) per Common Share (in dollars per share) | $ 0.01 | $ 0.15 | $ (0.59) | $ 0.26 |
Weighted Average Common Shares Outstanding - Basic (in shares) | 6,066,034 | 5,977,746 | 6,062,443 | 5,970,012 |
Dilutive Effect of Employee Stock Awards (in shares) | 219,043 | 279,584 | 275,935 | |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 6,285,077 | 6,257,330 | 6,062,443 | 6,245,947 |
Product [Member] | ||||
Revenues | ||||
Total revenues | $ 3,994,152 | $ 5,384,040 | $ 6,316,363 | $ 11,844,651 |
Franchise and Royalty Fees [Member] | ||||
Revenues | ||||
Total revenues | 1,333,250 | 2,001,230 | 1,713,476 | 3,966,618 |
Franchise [Member] | ||||
Costs and Expenses | ||||
Costs | 451,003 | 441,638 | 872,248 | 924,651 |
Retail [Member] | ||||
Costs and Expenses | ||||
Costs | $ 329,367 | $ 469,304 | $ 648,578 | $ 918,206 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Amortization expense included in cost of goods sold | $ 158,203 | $ 147,415 | $ 315,712 | $ 293,114 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Aug. 31, 2020 | Feb. 29, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 5,923,707 | $ 4,822,071 |
Accounts receivable, less allowance for doubtful accounts of $1,812,680 and $638,907, respectively | 2,917,061 | 4,049,959 |
Notes receivable, current portion, less current portion of the valuation allowance of $50,661 and $0, | 111,933 | 160,700 |
Refundable income taxes | 418,390 | 418,319 |
Inventories, net | 5,726,426 | 3,750,978 |
Other | 390,259 | 409,703 |
Total current assets | 15,487,776 | 13,611,730 |
Property and Equipment, Net | 5,533,901 | 5,938,013 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $149,339 and $0, respectively | 99,059 | 289,515 |
Goodwill, net | 729,701 | 1,046,944 |
Franchise rights, net | 2,783,727 | 3,047,688 |
Intangible assets, net | 411,040 | 498,393 |
Deferred income taxes | 1,784,806 | 630,078 |
Lease right of use asset | 2,301,165 | 2,698,765 |
Other | 56,264 | 56,262 |
Total other assets | 8,165,762 | 8,267,645 |
Total Assets | 29,187,439 | 27,817,388 |
Current Liabilities | ||
Current maturities of long term debt | 847,731 | |
Line of credit | 3,448,165 | |
Accounts payable | 3,020,604 | 2,241,506 |
Accrued salaries and wages | 695,695 | 716,860 |
Gift card liabilities | 575,310 | 609,842 |
Other accrued expenses | 442,337 | 316,751 |
Dividend payable | 722,344 | |
Contract liabilities | 187,269 | 195,658 |
Lease liability | 777,123 | 803,861 |
Total current liabilities | 9,994,234 | 5,606,822 |
Lease Liability, Less Current Portion | 1,557,719 | 1,894,904 |
Long-Term Debt, Less Current Portion | 694,575 | |
Contract Liabilities, Less Current Portion | 889,228 | 960,151 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock | ||
Common stock, $.001 par value, 46,000,000 shares authorized, 6,067,461 shares and 6,019,532 shares issued and outstanding, respectively | 6,068 | 6,020 |
Additional paid-in capital | 7,747,320 | 7,459,931 |
Retained earnings | 8,298,295 | 11,889,560 |
Total stockholders' equity | 16,051,683 | 19,355,511 |
Total Liabilities and Stockholders' Equity | 29,187,439 | 27,817,388 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock | ||
Undesignated Series [Member] | ||
Stockholders' Equity | ||
Preferred stock |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Aug. 31, 2020 | Feb. 29, 2020 |
Accounts receivable, allowance for doubtful accounts | $ 1,812,680 | $ 638,907 |
Notes receivable, current portion of the valuation allowance | 50,661 | 0 |
Notes receivable, noncurrent portion of valuation allowance | $ 149,339 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 250,000 | 250,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 46,000,000 | 46,000,000 |
Common stock, shares issued (in shares) | 6,067,461 | 6,019,532 |
Common stock, shares outstanding (in shares) | 6,067,461 | 6,019,532 |
Series A Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 50,000 | 50,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Undesignated Series [Member] | ||
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 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Cash Flows From Operating Activities | ||
Net (loss) Income | $ (3,591,265) | $ 1,629,697 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 677,967 | 750,486 |
Provision for obsolete inventory | 24,729 | 47,945 |
Provision for loss on accounts and notes receivable | 1,468,815 | 108,283 |
Asset impairment and store closure losses | 544,060 | |
Loss on sale or disposal of property and equipment | 7,823 | 5,796 |
Expense recorded for stock compensation | 287,437 | 386,670 |
Deferred income taxes | (1,154,728) | 101,959 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (141,690) | (267,491) |
Refundable income taxes | (71) | 145,475 |
Inventories | (1,808,397) | 212,138 |
Other current assets | 19,445 | (147,750) |
Accounts payable | 580,966 | 213,734 |
Accrued liabilities | 103,564 | (153,885) |
Contract liabilities | (75,135) | (130,378) |
Net cash (used in) provided by operating activities | (3,056,480) | 2,902,679 |
Cash Flows from Investing Activities | ||
Proceeds received on notes receivable | 44,995 | 74,296 |
Purchase of intangible assets | (99,047) | |
Purchases of property and equipment | (50,853) | (480,984) |
(Increase) decrease in other assets | 312 | |
Net cash used in investing activities | (104,905) | (406,376) |
Cash Flows from Financing Activities | ||
Payments on long-term debt | (696,043) | |
Proceeds from long-term debt | 1,537,200 | |
Proceeds from the line of credit | 3,448,165 | |
Dividends paid | (722,344) | (1,431,078) |
Net cash provided by (used in) financing activities | 4,263,021 | (2,127,121) |
Net Increase (Decrease) in Cash and Cash Equivalents | 1,101,636 | 369,182 |
Cash and Cash Equivalents, Beginning of Period | 4,822,071 | 5,384,027 |
Cash and Cash Equivalents, End of Period | $ 5,923,707 | $ 5,753,209 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Feb. 28, 2019 | 5,957,827 | |||
Balance at Feb. 28, 2019 | $ 5,958 | $ 6,650,864 | $ 13,733,010 | $ 20,389,832 |
Consolidated net (loss) income | 1,629,697 | 1,629,697 | ||
Issuance of common stock, vesting of restricted stock units and other (in shares) | 33,335 | |||
Issuance of common stock, vesting of restricted stock units and other | $ 33 | (33) | ||
Equity compensation, restricted stock units | 386,670 | 386,670 | ||
Cash dividends declared | (1,435,498) | (1,435,498) | ||
Consolidated net (loss) income | 1,629,697 | 1,629,697 | ||
Balance (in shares) at Aug. 31, 2019 | 5,991,162 | |||
Balance at Aug. 31, 2019 | $ 5,991 | 7,037,501 | 13,927,209 | 20,970,701 |
Balance (in shares) at May. 31, 2019 | 5,962,327 | |||
Balance at May. 31, 2019 | $ 5,962 | 6,882,114 | 13,728,480 | 20,616,556 |
Consolidated net (loss) income | 918,088 | 918,088 | ||
Issuance of common stock, vesting of restricted stock units and other (in shares) | 28,835 | |||
Issuance of common stock, vesting of restricted stock units and other | $ 29 | (29) | ||
Equity compensation, restricted stock units | 155,416 | 155,416 | ||
Cash dividends declared | (719,359) | (719,359) | ||
Consolidated net (loss) income | 918,088 | 918,088 | ||
Balance (in shares) at Aug. 31, 2019 | 5,991,162 | |||
Balance at Aug. 31, 2019 | $ 5,991 | 7,037,501 | 13,927,209 | 20,970,701 |
Balance (in shares) at Feb. 29, 2020 | 6,019,532 | |||
Balance at Feb. 29, 2020 | $ 6,020 | 7,459,931 | 11,889,560 | 19,355,511 |
Consolidated net (loss) income | (3,591,265) | (3,591,265) | ||
Issuance of common stock, vesting of restricted stock units and other (in shares) | 47,929 | |||
Issuance of common stock, vesting of restricted stock units and other | $ 48 | (48) | ||
Equity compensation, restricted stock units | 287,437 | 287,437 | ||
Cash dividends declared | ||||
Consolidated net (loss) income | (3,591,265) | (3,591,265) | ||
Balance (in shares) at Aug. 31, 2020 | 6,067,461 | |||
Balance at Aug. 31, 2020 | $ 6,068 | 7,747,320 | 8,298,295 | 16,051,683 |
Balance (in shares) at May. 31, 2020 | 6,060,663 | |||
Balance at May. 31, 2020 | $ 6,061 | 7,603,608 | 8,222,163 | 15,831,832 |
Consolidated net (loss) income | 76,132 | 76,132 | ||
Issuance of common stock, vesting of restricted stock units and other (in shares) | 6,798 | |||
Issuance of common stock, vesting of restricted stock units and other | $ 7 | (7) | ||
Equity compensation, restricted stock units | 143,719 | 143,719 | ||
Cash dividends declared | ||||
Consolidated net (loss) income | 76,132 | 76,132 | ||
Balance (in shares) at Aug. 31, 2020 | 6,067,461 | |||
Balance at Aug. 31, 2020 | $ 6,068 | $ 7,747,320 | $ 8,298,295 | $ 16,051,683 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 6 Months Ended |
Aug. 31, 2020 | |
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), Aspen Leaf Yogurt, LLC (“ALY”), and U-Swirl International, Inc. (“U-Swirl”), and its 46% The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, 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 In FY 2020, 1,000 January 2020, The following table summarizes the number of stores operating under the Rocky Mountain Chocolate Factory brand and frozen yogurt cafés as of August 31, 2020: Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 5 162 167 International license stores 1 58 59 Cold Stone Creamery - co-branded 5 98 103 U-Swirl (Including all associated brands) Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores - 69 69 Franchise stores - Domestic - co-branded 1 7 8 International license stores - 2 2 Total 12 401 413 Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and Securities and Exchange Commission (the “SEC”) regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three six August 31, 2020 not These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10 February 29, 2020. The year-end balance sheet data was derived from audited financial statements for the year ended February 29, 2020, not Subsequent Events Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no As discussed in more detail throughout this Quarterly Report on Form 10 three six August 31, 2020 ( 19" 19, not May 2020 August 2020, March 2020 April 2020 19 August 31, 2020 27 not August 31, 2020, 19 19. 19 In addition, as previously announced in May 2020, first 19 During this challenging time, the Company's foremost priority is the safety and well-being of our employees, customers, franchisees and communities. In addition to the already stringent practices for the quality and safety of the Company's confections, the Company is diligently following health and safety guidance issued by the World Health Organization, the Centers for Disease Control and state and local governmental agencies. The COVID- 19 may 19 In these challenging and unprecedented times, management is taking all necessary and appropriate action to maximize liquidity as the Company navigates the current landscape. These actions include significantly reducing operating expenses and production volume to reflect reduced sales volumes as well as the elimination of all non-essential spending and capital expenditures. Further, in an abundance of caution and to maintain ample financial flexibility, the Company drew down the full amount under our line of credit and the Company received loans under the Paycheck Protection Program (the “PPP”). See Note 9 1A 19 May 10 May 29, 2020 Recent Accounting Pronouncements Except for the recent accounting pronouncements described below, other recent accounting pronouncements are not In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2023 2016 13 In January 2017, 2017 04, 350 2017 04 2 2017 04, 1 2 not 2017 04 zero 2 2017 04 March 1, 2020 ( first 2021 2017 04 not In December 2019, 2019 12, 740 December 15, 2020 2019 12 March 1, 2021 not Related Party Transactions As described above, in FY 2020, 2020, six August 31, 2020, $949,000 August 31, 2020 $718,000 |
Note 2 - Supplemental Cash Flow
Note 2 - Supplemental Cash Flow Information | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 2 Six Months Ended August 31, Cash paid for: 2020 2019 Interest $ 46,441 $ 16,677 Income taxes 71 314,417 Non-cash Operating Activities Accrued Inventory 394,697 237,842 Non-cash Financing Activities Dividend payable $ - $ 719,359 |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 3 Effective March 1, 2018, 606, not not 20 10 not Initial Franchise Fees, License Fees, Transfer Fees and Renewal Fees The Company's policy for recognizing initial franchise and renewal fees through February 28, 2018 not March 1, 2018, 10 15 The following table summarizes contract liabilities as of August 31, 2020 August 31, 2019: Six Months Ended August 31: 2020 2019 Contract liabilities at the beginning of the year: $ 1,155,809 $ 1,352,572 Revenue recognized (128,636 ) (188,209 ) Contract fees received 53,500 57,833 Amortized gain on the financed sale of equipment (4,176 ) (6,267 ) Contract liabilities at the end of the period: $ 1,076,497 $ 1,215,929 At August 31, 2020, not FY 21 $ 94,959 FY 22 182,079 FY 23 170,353 FY 24 137,744 FY 25 124,461 Thereafter 366,901 Total $ 1,076,497 Gift Cards The Company's franchisees sell gift cards, which do not not 606 not 606 ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS |
Note 4 - Disaggregation of Reve
Note 4 - Disaggregation of Revenue | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Disaggregation of Revenue [Text Block] | NOTE 4 The following table presents disaggregated revenue by method of recognition and segment: Three Months Ended August 31, 2020 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 49,130 $ - $ - $ 24,490 $ 73,620 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 3,498,752 - - 3,498,752 Retail sales - - 193,702 301,698 495,400 Royalty and marketing fees 991,006 - - 268,624 1,259,630 Total $ 1,040,136 $ 3,498,752 $ 193,702 $ 594,812 $ 5,327,402 Three Months Ended August 31, 2019 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 65,327 $ - $ - $ 16,602 $ 81,929 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 4,482,373 - - 4,482,373 Retail sales - - 265,662 636,005 901,667 Royalty and marketing fees 1,449,157 - - 470,144 1,919,301 Total $ 1,514,484 $ 4,482,373 $ 265,662 $ 1,122,751 $ 7,385,270 Six Months Ended August 31, 2020 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 90,832 $ - $ - $ 37,804 $ 128,636 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 5,633,367 - - 5,633,367 Retail sales - - 253,683 429,313 682,996 Royalty and marketing fees 1,203,098 - - 381,742 1,584,840 Total $ 1,293,930 $ 5,633,367 $ 253,683 $ 848,859 $ 8,029,839 ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS Six Months Ended August 31, 2019 Revenues recognized over time under ASC 606: Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 145,346 $ - $ - $ 42,863 $ 188,209 Revenues recognized at a point in time: Franchising Manufacturing Retail U-Swirl Total Factory sales - 10,088,393 - - 10,088,393 Retail sales - - 498,081 1,258,177 1,756,258 Royalty and marketing fees 2,796,893 - - 981,516 3,778,409 Total $ 2,942,239 $ 10,088,393 $ 498,081 $ 2,282,556 $ 15,811,269 |
Note 5 - Inventories
Note 5 - Inventories | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5 Inventories consist of the following: August 31, 2020 February 29, 2020 Ingredients and supplies $ 2,772,234 $ 2,186,652 Finished candy 3,068,858 1,827,767 U-Swirl food and packaging 41,814 56,708 Reserve for slow moving inventory (156,480 ) (320,149 ) Total inventories $ 5,726,426 $ 3,750,978 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment, Net | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 Property and equipment consists of the following: August 31, 2020 February 29, 2020 Land $ 513,618 $ 513,618 Building 5,031,395 5,031,395 Machinery and equipment 10,037,869 10,664,396 Furniture and fixtures 797,303 852,557 Leasehold improvements 985,407 1,154,396 Transportation equipment 429,789 440,989 17,795,381 18,657,351 Less accumulated depreciation (12,261,480 ) (12,719,338 ) Property and equipment, net $ 5,533,901 $ 5,938,013 Depreciation expense related to property and equipment totaled $192,049 $386,606 three six August 31, 2020 $196,288 $397,398 three six August 31, 2019, ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS |
Note 7 - Goodwill and Intangibl
Note 7 - Goodwill and Intangible Assets | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 Intangible assets consist of the following: August 31, 2020 February 29, 2020 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 394,826 $ 216,403 $ 295,779 $ 215,653 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 - 20 556,339 323,722 715,339 297,072 Franchise rights 20 5,979,637 3,195,910 5,979,637 2,931,949 Total $ 7,482,605 $ 4,287,838 $ 7,542,558 $ 3,996,477 Intangible assets not subject to amortization Franchising segment- Company stores goodwill $ 515,065 $ 832,308 Franchising goodwill 97,318 97,318 Manufacturing segment-goodwill 97,318 97,318 Trademark 20,000 20,000 Total goodwill 729,701 1,046,944 Total Intangible Assets $ 8,212,306 $ 4,287,838 $ 8,589,502 $ 3,996,477 Amortization expense related to intangible assets totaled $142,804 $291,361 three six August 31, 2020 $176,544 $353,088 three six August 31, 2019, At August 31, 2020, 2021 274,705 2022 466,554 2023 391,988 2024 329,267 2025 277,022 Thereafter 1,281,184 Total $ 3,020,720 During FY 2020, $250,000 $174,000 August 31, 2020. |
Note 8 - Impairment of Long-liv
Note 8 - Impairment of Long-lived and Intangible Assets | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | NOTE 8 We assess the potential impairment of our long-lived assets on an annual basis or whenever events or changes in circumstances indicate the carrying value of the assets or asset group may not 19 three May 31, 2020. $545,000 No three August 31, 2020. The assessment of our goodwill, trademark and long-lived asset fair values includes many assumptions that are subject to risk and uncertainties. The primary assumptions, which are all Level 3 ● Expected future cash flows from operation of our Company-owned units. ● Forecasted future royalty revenue, marketing revenue and associated expenses. ● Projected rate of royalty savings on trademarks. ● Our cost of capital. ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS As of August 31, 2020, Company store goodwill impairment $ 317,243 Trademark intangible asset impairment 159,000 Company-owned store impairment of long-lived assets and inventory 68,558 Total $ 544,801 Certain interim tests did not 19 not |
Note 9 - Line of Credit and Lon
Note 9 - Line of Credit and Long-term Debt | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 9 The Company has a $5.0 March 16, 2020, 19 $3.4 $5.0 50% 50% 2.25% 2.4% August 31, 2020). August 31, 2020, not $1.5 twelve August 31, 2020. 19, June 26, 2020 October 5, 2020 October 30, 2015 not 19 no September 2021 19. The Company's long-term debt is comprised of promissory notes pursuant to the PPP, under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA Loans”). The Company received total proceeds of $1.5 April 2022 1.00% may no August 31, 2020, The SBA Loans contain customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. Subject to certain conditions, the SBA Loans may 60 75% No August 31, 2020, $5,855 ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS As of August 31, 2020 February 29, 2020, August 31, 2020 February 29, 2020 Paycheck protection program note payable in monthly installments of principal and interest at 1.0% per annum through April 2022 $ 1,542,306 $ - Less: current maturities (847,731 ) - Long-term obligations $ 694,575 $ - |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 10 Cash Dividend The Company paid a quarterly cash dividend of $0.12 March 15, 2019 March 5, 2019. $0.12 June 14, 2019 June 4, 2019. $0.12 September 13, 2019 September 4, 2019. $0.12 December 6, 2019 November 22, 2019. $0.12 March 13, 2020 February 28, 2020. 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 As previously announced in May 2020, first 19. Stock Repurchases On July 15, 2014, $3.0 January 13, 2015, $2,058,000 May 21, 2015, $2,090,000 not three six August 31, 2020. August 31, 2020, $638,000 Warrants In consideration of Edible entering into the exclusive supplier agreement and the performance of its obligations therein, on December 20, 2019, 960,677 $8.76 five six fifth The Company determined that the grant date fair value of the warrants was de minimis and did not Stock-Based Compensation Under the Company's 2007 “2007 may September 17, 2020, 2007 1 2007 300,000 2 2007 September 17, 2030. 319,324 2007 ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS The Company recognized $143,719 $287,437 three six August 31, 2020, $155,416 $386,670 three six August 31, 2019, The following table summarizes restricted stock unit activity during the six August 31, 2020 2019: Six Months Ended August 31, 2020 2019 Outstanding non-vested restricted stock units as of February 28 or 29: 265,555 25,002 Granted - 270,000 Vested (47,929 ) (28,502 ) Cancelled/forfeited - - Outstanding non-vested restricted stock units as of August 31: 217,626 266,500 Weighted average grant date fair value $ 9.40 $ 9.40 Weighted average remaining vesting period (in years) 4.15 5.14 The Company did not six August 31, 2020 4,833 six August 31, 2019. $0 $45,652 six August 31, 2020 2019, During the three six August 31, 2020, $143,719 $287,437, five six six August 31, 2020 2019, 47,929 28,502 August 31, 2020 $1,850,943, 4.15 The Company has no August 31, 2020. |
Note 11 - Earnings Per Share
Note 11 - Earnings Per Share | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 11 Basic earnings per share is calculated using the weighted-average number of common shares outstanding. Diluted earnings per share reflects the potential dilution that could occur from common shares issuable through the settlement of restricted stock units. Restricted stock units become dilutive within the period granted and remain dilutive until the units vest and are issued as common stock. The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not six August 31, 2020, 960,677 222,634 |
Note 12 - Leasing Arrangements
Note 12 - Leasing Arrangements | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE 12 The Company conducts its retail operations in facilities leased under non-cancelable operating leases of up to ten five ten 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. Currently, there are not 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. ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS The Company also leases trucking equipment and warehouse space in support of its manufacturing operations. Expense associated with trucking and warehouse leases is included in cost of sales on the consolidated statements of operations. ASU 2016 02 not The Company accounts for payments related to lease liabilities on a straight-line basis over the lease term. During the six August 31, 2020 2019, $440,121 $478,707, The amount of the Right of Use Asset and Lease Liability recorded upon the adoption of ASU 2016 02 $3.3 not not not not 3.4% August 31, 2020. $2.6 As of August 31, 2020, FY 21 $ 411,447 FY 22 694,755 FY 23 437,445 FY 24 315,962 FY 25 164,223 Thereafter 552,818 Total $ 2,576,650 Less: imputed interest (241,808 ) Present value of lease liabilities: $ 2,334,842 Weighted average lease term (in years) 6.7 During the three August 31, 2019, $476,611 $532,811. |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 13 Purchase contracts The Company frequently enters into purchase contracts of between six eighteen may may may August 31, 2020, $100,000 not ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS |
Note 14 - FTD Loss Contingency
Note 14 - FTD Loss Contingency | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | NOTE 14 In June 2019, 11 The Company historically conducted business with FTD under a Gourmet Foods Supplier Agreement (the “FTD Supplier Agreement”), that among other provisions, provided assurance that custom inventory purchased by the Company and developed specifically for FTD would be purchased by FTD upon termination of the FTD Supplier Agreement. In September 2019, not As a result of FTD's bankruptcy, the sale of certain assets, and the court's approval to reject and not August 31, 2020 As of August 31, 2020, $226,000 $80,000, $146,000 |
Note 15 - Income Taxes
Note 15 - Income Taxes | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 15 Under the recently enacted CARES Act a net operating loss (“NOL”) arising during the Company's fiscal year 2021 five 2016 2020. five 21% 34%, February 28, 2018. The Company's deferred tax assets are valued at the current federally enacted rate of 21%. 2021 may 21%. As of August 31, 2020, |
Note 16 - Operating Segments
Note 16 - Operating Segments | 6 Months Ended |
Aug. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 16 The Company classifies its business interests into five 1 1 10 February 29, 2020. ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND SUBSIDIARIES NOTES TO INTERIM (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS Three Months Ended August 31, 2020 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,040,863 $ 3,768,416 $ 193,702 $ 594,812 $ - $ 5,597,793 Intersegment revenues (727 ) (269,664 ) - - - (270,391 ) Revenue from external customers 1,040,136 3,498,752 193,702 594,812 - 5,327,402 Segment profit (loss) 366,535 489,668 21,924 11,903 (789,297 ) 100,733 Total assets 1,387,005 12,241,965 618,323 5,526,772 9,413,374 29,187,439 Capital expenditures 150 11,343 72 - 16,799 28,364 Total depreciation & amortization $ 10,095 $ 162,523 $ 1,391 $ 140,823 $ 20,021 $ 334,853 Three Months Ended August 31, 2019 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,515,805 $ 4,714,682 $ 265,662 $ 1,122,751 $ - $ 7,618,900 Intersegment revenues (1,321 ) (232,309 ) - - - (233,630 ) Revenue from external customers 1,514,484 4,482,373 265,662 1,122,751 - 7,385,270 Segment profit (loss) 828,978 955,360 7,979 296,880 (841,434 ) 1,247,763 Total assets 1,445,041 11,838,237 1,005,356 5,620,012 9,377,697 29,286,343 Capital expenditures (2,040 ) 162,127 23,106 1,673 12,570 197,436 Total depreciation & amortization $ 10,353 $ 151,848 $ 2,533 $ 185,208 $ 22,891 $ 372,833 Six Months Ended August 31, 2020 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,295,339 $ 6,061,508 $ 253,683 $ 848,859 $ - $ 8,459,389 Intersegment revenues (1,409 ) (428,141 ) - - - (429,550 ) Revenue from external customers 1,293,930 5,633,367 253,683 848,859 - 8,029,839 Segment profit (loss) (84,784 ) (293,801 ) (455,902 ) (445,815 ) (3,465,690 ) (4,745,992 ) Total assets 1,387,005 12,241,965 618,323 5,526,772 9,413,374 29,187,439 Capital expenditures 150 25,197 72 1,712 23,722 50,853 Total depreciation & amortization $ 20,233 $ 324,353 $ 4,794 $ 287,772 $ 40,815 $ 677,967 Six Months Ended August 31, 2019 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 2,944,846 $ 10,581,154 $ 498,081 $ 2,282,556 $ - $ 16,306,637 Intersegment revenues (2,607 ) (492,761 ) - - - (495,368 ) Revenue from external customers 2,942,239 10,088,393 498,081 2,282,556 - 15,811,269 Segment profit (loss) 1,446,888 2,124,047 (7,033 ) 576,043 (1,948,398 ) 2,191,547 Total assets 1,445,041 11,838,237 1,005,356 5,620,012 9,377,697 29,286,343 Capital expenditures 8,500 385,679 32,624 1,673 52,508 480,984 Total depreciation & amortization $ 21,183 $ 301,980 $ 5,143 $ 375,977 $ 46,203 $ 750,486 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and Securities and Exchange Commission (the “SEC”) regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the three six August 31, 2020 not These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form 10 February 29, 2020. The year-end balance sheet data was derived from audited financial statements for the year ended February 29, 2020, not |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Management evaluated all activity of the Company through the issue date of the financial statements and concluded that no |
COVID-19 Update [Policy Text Block] | As discussed in more detail throughout this Quarterly Report on Form 10 three six August 31, 2020 ( 19" 19, not May 2020 August 2020, March 2020 April 2020 19 August 31, 2020 27 not August 31, 2020, 19 19. 19 In addition, as previously announced in May 2020, first 19 During this challenging time, the Company's foremost priority is the safety and well-being of our employees, customers, franchisees and communities. In addition to the already stringent practices for the quality and safety of the Company's confections, the Company is diligently following health and safety guidance issued by the World Health Organization, the Centers for Disease Control and state and local governmental agencies. The COVID- 19 may 19 In these challenging and unprecedented times, management is taking all necessary and appropriate action to maximize liquidity as the Company navigates the current landscape. These actions include significantly reducing operating expenses and production volume to reflect reduced sales volumes as well as the elimination of all non-essential spending and capital expenditures. Further, in an abundance of caution and to maintain ample financial flexibility, the Company drew down the full amount under our line of credit and the Company received loans under the Paycheck Protection Program (the “PPP”). See Note 9 1A 19 May 10 May 29, 2020 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Except for the recent accounting pronouncements described below, other recent accounting pronouncements are not In June 2016, 2016 13, 326 2016 13 2016 13 2016 13 March 1, 2023 2016 13 In January 2017, 2017 04, 350 2017 04 2 2017 04, 1 2 not 2017 04 zero 2 2017 04 March 1, 2020 ( first 2021 2017 04 not In December 2019, 2019 12, 740 December 15, 2020 2019 12 March 1, 2021 not |
Related Party Transactions, Policy [Policy Text Block] | Related Party Transactions As described above, in FY 2020, 2020, six August 31, 2020, $949,000 August 31, 2020 $718,000 |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations and Basis of Presentation (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Number of Stores [Table Text Block] | Sold, Not Yet Open Open Total Rocky Mountain Chocolate Factory Company-owned stores - 2 2 Franchise stores - Domestic stores and kiosks 5 162 167 International license stores 1 58 59 Cold Stone Creamery - co-branded 5 98 103 U-Swirl (Including all associated brands) Company-owned stores - co-branded - 3 3 Franchise stores - Domestic stores - 69 69 Franchise stores - Domestic - co-branded 1 7 8 International license stores - 2 2 Total 12 401 413 |
Note 2 - Supplemental Cash Fl_2
Note 2 - Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Six Months Ended August 31, Cash paid for: 2020 2019 Interest $ 46,441 $ 16,677 Income taxes 71 314,417 Non-cash Operating Activities Accrued Inventory 394,697 237,842 Non-cash Financing Activities Dividend payable $ - $ 719,359 |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Six Months Ended August 31: 2020 2019 Contract liabilities at the beginning of the year: $ 1,155,809 $ 1,352,572 Revenue recognized (128,636 ) (188,209 ) Contract fees received 53,500 57,833 Amortized gain on the financed sale of equipment (4,176 ) (6,267 ) Contract liabilities at the end of the period: $ 1,076,497 $ 1,215,929 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | FY 21 $ 94,959 FY 22 182,079 FY 23 170,353 FY 24 137,744 FY 25 124,461 Thereafter 366,901 Total $ 1,076,497 |
Note 4 - Disaggregation of Re_2
Note 4 - Disaggregation of Revenue (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 49,130 $ - $ - $ 24,490 $ 73,620 Franchising Manufacturing Retail U-Swirl Total Factory sales - 3,498,752 - - 3,498,752 Retail sales - - 193,702 301,698 495,400 Royalty and marketing fees 991,006 - - 268,624 1,259,630 Total $ 1,040,136 $ 3,498,752 $ 193,702 $ 594,812 $ 5,327,402 Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 65,327 $ - $ - $ 16,602 $ 81,929 Franchising Manufacturing Retail U-Swirl Total Factory sales - 4,482,373 - - 4,482,373 Retail sales - - 265,662 636,005 901,667 Royalty and marketing fees 1,449,157 - - 470,144 1,919,301 Total $ 1,514,484 $ 4,482,373 $ 265,662 $ 1,122,751 $ 7,385,270 Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 90,832 $ - $ - $ 37,804 $ 128,636 Franchising Manufacturing Retail U-Swirl Total Factory sales - 5,633,367 - - 5,633,367 Retail sales - - 253,683 429,313 682,996 Royalty and marketing fees 1,203,098 - - 381,742 1,584,840 Total $ 1,293,930 $ 5,633,367 $ 253,683 $ 848,859 $ 8,029,839 Franchising Manufacturing Retail U-Swirl Total Franchise fees $ 145,346 $ - $ - $ 42,863 $ 188,209 Franchising Manufacturing Retail U-Swirl Total Factory sales - 10,088,393 - - 10,088,393 Retail sales - - 498,081 1,258,177 1,756,258 Royalty and marketing fees 2,796,893 - - 981,516 3,778,409 Total $ 2,942,239 $ 10,088,393 $ 498,081 $ 2,282,556 $ 15,811,269 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | August 31, 2020 February 29, 2020 Ingredients and supplies $ 2,772,234 $ 2,186,652 Finished candy 3,068,858 1,827,767 U-Swirl food and packaging 41,814 56,708 Reserve for slow moving inventory (156,480 ) (320,149 ) Total inventories $ 5,726,426 $ 3,750,978 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment, Net (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | August 31, 2020 February 29, 2020 Land $ 513,618 $ 513,618 Building 5,031,395 5,031,395 Machinery and equipment 10,037,869 10,664,396 Furniture and fixtures 797,303 852,557 Leasehold improvements 985,407 1,154,396 Transportation equipment 429,789 440,989 17,795,381 18,657,351 Less accumulated depreciation (12,261,480 ) (12,719,338 ) Property and equipment, net $ 5,533,901 $ 5,938,013 |
Note 7 - Goodwill and Intangi_2
Note 7 - Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | August 31, 2020 February 29, 2020 Amortization Period (in years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 394,826 $ 216,403 $ 295,779 $ 215,653 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 - 20 556,339 323,722 715,339 297,072 Franchise rights 20 5,979,637 3,195,910 5,979,637 2,931,949 Total $ 7,482,605 $ 4,287,838 $ 7,542,558 $ 3,996,477 Intangible assets not subject to amortization Franchising segment- Company stores goodwill $ 515,065 $ 832,308 Franchising goodwill 97,318 97,318 Manufacturing segment-goodwill 97,318 97,318 Trademark 20,000 20,000 Total goodwill 729,701 1,046,944 Total Intangible Assets $ 8,212,306 $ 4,287,838 $ 8,589,502 $ 3,996,477 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2021 274,705 2022 466,554 2023 391,988 2024 329,267 2025 277,022 Thereafter 1,281,184 Total $ 3,020,720 |
Note 8 - Impairment of Long-l_2
Note 8 - Impairment of Long-lived and Intangible Assets (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Details of Impairment of Long-Lived Assets Held and Used by Asset [Table Text Block] | Company store goodwill impairment $ 317,243 Trademark intangible asset impairment 159,000 Company-owned store impairment of long-lived assets and inventory 68,558 Total $ 544,801 |
Note 9 - Line of Credit and L_2
Note 9 - Line of Credit and Long-term Debt (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | August 31, 2020 February 29, 2020 Paycheck protection program note payable in monthly installments of principal and interest at 1.0% per annum through April 2022 $ 1,542,306 $ - Less: current maturities (847,731 ) - Long-term obligations $ 694,575 $ - |
Note 10 - Stockholders' Equity
Note 10 - Stockholders' Equity (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Six Months Ended August 31, 2020 2019 Outstanding non-vested restricted stock units as of February 28 or 29: 265,555 25,002 Granted - 270,000 Vested (47,929 ) (28,502 ) Cancelled/forfeited - - Outstanding non-vested restricted stock units as of August 31: 217,626 266,500 Weighted average grant date fair value $ 9.40 $ 9.40 Weighted average remaining vesting period (in years) 4.15 5.14 |
Note 12 - Leasing Arrangements
Note 12 - Leasing Arrangements (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | FY 21 $ 411,447 FY 22 694,755 FY 23 437,445 FY 24 315,962 FY 25 164,223 Thereafter 552,818 Total $ 2,576,650 Less: imputed interest (241,808 ) Present value of lease liabilities: $ 2,334,842 Weighted average lease term (in years) 6.7 |
Note 16 - Operating Segments (T
Note 16 - Operating Segments (Tables) | 6 Months Ended |
Aug. 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended August 31, 2020 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,040,863 $ 3,768,416 $ 193,702 $ 594,812 $ - $ 5,597,793 Intersegment revenues (727 ) (269,664 ) - - - (270,391 ) Revenue from external customers 1,040,136 3,498,752 193,702 594,812 - 5,327,402 Segment profit (loss) 366,535 489,668 21,924 11,903 (789,297 ) 100,733 Total assets 1,387,005 12,241,965 618,323 5,526,772 9,413,374 29,187,439 Capital expenditures 150 11,343 72 - 16,799 28,364 Total depreciation & amortization $ 10,095 $ 162,523 $ 1,391 $ 140,823 $ 20,021 $ 334,853 Three Months Ended August 31, 2019 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,515,805 $ 4,714,682 $ 265,662 $ 1,122,751 $ - $ 7,618,900 Intersegment revenues (1,321 ) (232,309 ) - - - (233,630 ) Revenue from external customers 1,514,484 4,482,373 265,662 1,122,751 - 7,385,270 Segment profit (loss) 828,978 955,360 7,979 296,880 (841,434 ) 1,247,763 Total assets 1,445,041 11,838,237 1,005,356 5,620,012 9,377,697 29,286,343 Capital expenditures (2,040 ) 162,127 23,106 1,673 12,570 197,436 Total depreciation & amortization $ 10,353 $ 151,848 $ 2,533 $ 185,208 $ 22,891 $ 372,833 Six Months Ended August 31, 2020 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 1,295,339 $ 6,061,508 $ 253,683 $ 848,859 $ - $ 8,459,389 Intersegment revenues (1,409 ) (428,141 ) - - - (429,550 ) Revenue from external customers 1,293,930 5,633,367 253,683 848,859 - 8,029,839 Segment profit (loss) (84,784 ) (293,801 ) (455,902 ) (445,815 ) (3,465,690 ) (4,745,992 ) Total assets 1,387,005 12,241,965 618,323 5,526,772 9,413,374 29,187,439 Capital expenditures 150 25,197 72 1,712 23,722 50,853 Total depreciation & amortization $ 20,233 $ 324,353 $ 4,794 $ 287,772 $ 40,815 $ 677,967 Six Months Ended August 31, 2019 Franchising Manufacturing Retail U-Swirl Other Total Total revenues $ 2,944,846 $ 10,581,154 $ 498,081 $ 2,282,556 $ - $ 16,306,637 Intersegment revenues (2,607 ) (492,761 ) - - - (495,368 ) Revenue from external customers 2,942,239 10,088,393 498,081 2,282,556 - 15,811,269 Segment profit (loss) 1,446,888 2,124,047 (7,033 ) 576,043 (1,948,398 ) 2,191,547 Total assets 1,445,041 11,838,237 1,005,356 5,620,012 9,377,697 29,286,343 Capital expenditures 8,500 385,679 32,624 1,673 52,508 480,984 Total depreciation & amortization $ 21,183 $ 301,980 $ 5,143 $ 375,977 $ 46,203 $ 750,486 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Basis of Presentation (Details Textual) | 6 Months Ended | |
Aug. 31, 2020USD ($) | May 31, 2020 | |
Edible [Member] | ||
Revenue from Related Parties | $ 949,000 | |
Accounts Receivable, Related Parties, Current | $ 718,000 | |
COVID-19 Pandemic [Member] | ||
Number of Stores Not Reopened | 27 | |
USwirl Inc [Member] | ||
Noncontrolling Interest, Ownership Percentage by Parent | 46.00% |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | Aug. 31, 2020 |
Number of stores | 413 |
Sold Not Yet Open [Member] | |
Number of stores | 12 |
Open [Member] | |
Number of stores | 401 |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [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] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 2 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 167 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 5 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 162 |
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 59 |
International License Stores [Member] | USwirl Inc [Member] | |
Number of stores | 2 |
International License Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
International License Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | |
Number of stores | 0 |
International License Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 58 |
International License Stores [Member] | Open [Member] | USwirl Inc [Member] | |
Number of stores | 2 |
Cold Stone Creamery - Co-Branded [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 103 |
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 5 |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 98 |
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 | 0 |
Company Owned Stores Co-branded [Member] | Open [Member] | USwirl Inc [Member] | |
Number of stores | 3 |
Franchise Stores - Domestic Stores [Member] | USwirl Inc [Member] | |
Number of stores | 69 |
Franchise Stores - Domestic Stores [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | |
Number of stores | |
Franchise Stores - Domestic Stores [Member] | Open [Member] | USwirl Inc [Member] | |
Number of stores | 69 |
Franchise Stores - Domestic Stores - Co-Branded [Member] | USwirl Inc [Member] | |
Number of stores | 8 |
Franchise Stores - Domestic Stores - Co-Branded [Member] | Sold Not Yet Open [Member] | USwirl Inc [Member] | |
Number of stores | 1 |
Franchise Stores - Domestic Stores - Co-Branded [Member] | Open [Member] | USwirl Inc [Member] | |
Number of stores | 7 |
Note 2 - Supplemental Cash Fl_3
Note 2 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 6 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Interest | $ 46,441 | $ 16,677 |
Income taxes | 71 | 314,417 |
Accrued Inventory | 394,697 | 237,842 |
Dividend payable | $ 719,359 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts With Customers (Details Textual) | 6 Months Ended |
Aug. 31, 2020 | |
Customers Contracts, Term (Year) | 10 years |
Maximum [Member] | |
Customers Contracts, Term (Year) | 20 years |
Franchise Agreement, Term (Year) | 15 years |
Minimum [Member] | |
Franchise Agreement, Term (Year) | 10 years |
Note 3 - Revenue From Contrac_4
Note 3 - Revenue From Contracts With Customers - Contract Liabilities (Details) - USD ($) | 6 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Contract liabilities at the beginning of the year: | $ 1,155,809 | $ 1,352,572 |
Revenue recognized | (128,636) | (188,209) |
Contract fees received | 53,500 | 57,833 |
Amortized gain on the financed sale of equipment | (4,176) | (6,267) |
Contract liabilities at the end of the period: | $ 1,076,497 | $ 1,215,929 |
Note 3 - Revenue From Contrac_5
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation (Details) | Aug. 31, 2020USD ($) |
Revenue, remaining performance obligation, amount | $ 1,076,497 |
Note 3 - Revenue From Contrac_6
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation 2 (Details) | Aug. 31, 2020USD ($) |
Revenue, remaining performance obligation, amount | $ 1,076,497 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-01 | |
Revenue, remaining performance obligation, period (Year) | 182 days |
Revenue, remaining performance obligation, amount | $ 94,959 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 182,079 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 170,353 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 137,744 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 124,461 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 366,901 |
Note 4 - Disaggregation of Re_3
Note 4 - Disaggregation of Revenue - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Revenues | $ 5,327,402 | $ 7,385,270 | $ 8,029,839 | $ 15,811,269 |
Franchising [Member] | ||||
Revenues | 1,040,136 | 1,514,484 | 1,293,930 | 2,942,239 |
Manufacturing [Member] | ||||
Revenues | 3,498,752 | 4,482,373 | 5,633,367 | 10,088,393 |
Retail Segment [Member] | ||||
Revenues | 193,702 | 265,662 | 253,683 | 498,081 |
USwirl Inc [Member] | ||||
Revenues | 594,812 | 1,122,751 | 848,859 | 2,282,556 |
Franchise Fees [Member] | Transferred over Time [Member] | ||||
Revenues | 73,620 | 81,929 | 128,636 | 188,209 |
Franchise Fees [Member] | Transferred over Time [Member] | Franchising [Member] | ||||
Revenues | 49,130 | 65,327 | 90,832 | 145,346 |
Franchise Fees [Member] | Transferred over Time [Member] | Manufacturing [Member] | ||||
Revenues | ||||
Franchise Fees [Member] | Transferred over Time [Member] | Retail Segment [Member] | ||||
Revenues | ||||
Franchise Fees [Member] | Transferred over Time [Member] | USwirl Inc [Member] | ||||
Revenues | 24,490 | 16,602 | 37,804 | 42,863 |
Factory Sales [Member] | Transferred at Point in Time [Member] | ||||
Revenues | 3,498,752 | 4,482,373 | 5,633,367 | 10,088,393 |
Factory Sales [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||||
Revenues | ||||
Factory Sales [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||||
Revenues | 3,498,752 | 4,482,373 | 5,633,367 | 10,088,393 |
Factory Sales [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||||
Revenues | ||||
Factory Sales [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||||
Revenues | ||||
Retail [Member] | Transferred at Point in Time [Member] | ||||
Revenues | 495,400 | 901,667 | 682,996 | 1,756,258 |
Retail [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||||
Revenues | ||||
Retail [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||||
Revenues | ||||
Retail [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||||
Revenues | 193,702 | 265,662 | 253,683 | 498,081 |
Retail [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||||
Revenues | 301,698 | 636,005 | 429,313 | 1,258,177 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | ||||
Revenues | 1,259,630 | 1,919,301 | 1,584,840 | 3,778,409 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Franchising [Member] | ||||
Revenues | 991,006 | 1,449,157 | 1,203,098 | 2,796,893 |
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Manufacturing [Member] | ||||
Revenues | ||||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | Retail Segment [Member] | ||||
Revenues | ||||
Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | USwirl Inc [Member] | ||||
Revenues | $ 268,624 | $ 470,144 | $ 381,742 | $ 981,516 |
Note 5 - Inventories - Inventor
Note 5 - Inventories - Inventories (Details) - USD ($) | Aug. 31, 2020 | Feb. 29, 2020 |
Ingredients and supplies | $ 2,772,234 | $ 2,186,652 |
Finished candy | 3,068,858 | 1,827,767 |
U-Swirl food and packaging | 41,814 | 56,708 |
Reserve for slow moving inventory | (156,480) | (320,149) |
Total inventories | $ 5,726,426 | $ 3,750,978 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment, Net (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Depreciation, Total | $ 192,049 | $ 196,288 | $ 386,606 | $ 397,398 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | Aug. 31, 2020 | Feb. 29, 2020 |
Property, plant and equipment, gross | $ 17,795,381 | $ 18,657,351 |
Less accumulated depreciation | (12,261,480) | (12,719,338) |
Property and equipment, net | 5,533,901 | 5,938,013 |
Land [Member] | ||
Property, plant and equipment, gross | 513,618 | 513,618 |
Building [Member] | ||
Property, plant and equipment, gross | 5,031,395 | 5,031,395 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 10,037,869 | 10,664,396 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 797,303 | 852,557 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 985,407 | 1,154,396 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 429,789 | $ 440,989 |
Note 7 - Goodwill and Intangi_3
Note 7 - Goodwill and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 17 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Feb. 29, 2020 | Aug. 31, 2020 | |
Amortization of Intangible Assets, Total | $ 142,804 | $ 176,544 | $ 291,361 | $ 353,088 | ||
Store Design [Member] | ||||||
Intangible Assets, Expected Additions | $ 250,000 | |||||
Finite-Lived Intangible Assets, Period Increase (Decrease), Total | $ 174,000 |
Note 7 - Goodwill and Intangi_4
Note 7 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Aug. 31, 2020 | Feb. 29, 2020 | |
Intangible assets subject to amortization, gross carrying value | $ 7,482,605 | $ 7,542,558 |
Intangible assets subject to amortization, accumulated amortization | 4,287,838 | 3,996,477 |
Intangible assets not subject to amortization, gross carrying value | 729,701 | 1,046,944 |
Total Intangible Assets | 8,212,306 | 8,589,502 |
Intangible assets not subject to amortization, accumulated goodwill impairment | 4,287,838 | 3,996,477 |
Company Stores Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 515,065 | 832,308 |
Franchising Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 97,318 | 97,318 |
Manufacturing Segment Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 97,318 | 97,318 |
Trademarks [Member] | ||
Intangible assets not subject to amortization, gross carrying value | $ 20,000 | 20,000 |
Store Design [Member] | ||
Amortization Period (Year) | 10 years | |
Intangible assets subject to amortization, gross carrying value | $ 394,826 | 295,779 |
Intangible assets subject to amortization, accumulated amortization | 216,403 | 215,653 |
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 | 556,339 | 715,339 |
Intangible assets subject to amortization, accumulated amortization | $ 323,722 | 297,072 |
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 | 5,979,637 |
Intangible assets subject to amortization, accumulated amortization | $ 3,195,910 | $ 2,931,949 |
Note 7 - Goodwill and Intangi_5
Note 7 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Aug. 31, 2020USD ($) |
2021 | $ 274,705 |
2022 | 466,554 |
2023 | 391,988 |
2024 | 329,267 |
2025 | 277,022 |
Thereafter | 1,281,184 |
Total | $ 3,020,720 |
Note 8 - Impairment of Long-l_3
Note 8 - Impairment of Long-lived and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended |
May 31, 2020 | Aug. 31, 2020 | |
Asset Impairment Charges, Total | $ 544,801 | |
General and Administrative Expense [Member] | COVID-19 Pandemic [Member] | ||
Asset Impairment Charges, Total | $ 545,000 |
Note 8 - Impairment of Long-l_4
Note 8 - Impairment of Long-lived and Intangible Assets - Costs Associated with Impairment of Long-lived and Intangible Assets (Details) | 6 Months Ended |
Aug. 31, 2020USD ($) | |
Company store goodwill impairment | $ 317,243 |
Trademark intangible asset impairment | 159,000 |
Company-owned store impairment of long-lived assets and inventory | 68,558 |
Total | $ 544,801 |
Note 9 - Line of Credit and L_3
Note 9 - Line of Credit and Long-term Debt (Details Textual) - USD ($) | Mar. 16, 2020 | Aug. 31, 2020 | Aug. 31, 2019 |
Proceeds from Notes Payable, Total | $ 1,537,200 | ||
SBA Loans [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||
Proceeds from Notes Payable, Total | $ 1,500,000 | ||
Interest Expense, Debt, Total | $ 5,855 | ||
Eligible Accounts Receivable [Member] | |||
Maximum Draws Allowed | 50.00% | ||
Eligible Inventories [Member] | |||
Maximum Draws Allowed | 50.00% | ||
Line of Credit [Member] | Wells Fargo Bank [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | $ 5,000,000 | |
Proceeds from Lines of Credit, Total | $ 3,400,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.40% | ||
Debt Instrument, Covenant, Adjusted EBITDA | $ 1,500,000 | ||
Line of Credit [Member] | Wells Fargo Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
Note 9 - Line of Credit and L_4
Note 9 - Line of Credit and Long-term Debt - Long-term Note Payable (Details) - USD ($) | Aug. 31, 2020 | Feb. 29, 2020 |
Less: current maturities | $ (847,731) | |
Long-term obligations | 694,575 | |
SBA Loans [Member] | ||
Paycheck protection program note payable in monthly installments of principal and interest at 1.0% per annum through April 2022 | $ 1,542,306 |
Note 9 - Line of Credit and L_5
Note 9 - Line of Credit and Long-term Debt - Long-term Note Payable (Details) (Parentheticals) | Aug. 31, 2020 |
SBA Loans [Member] | |
Paycheck protection program note payable interest | 1.00% |
Note 10 - Stockholders' Equit_2
Note 10 - Stockholders' Equity (Details Textual) - USD ($) | Oct. 15, 2020 | Mar. 13, 2020 | Dec. 20, 2019 | Dec. 06, 2019 | Sep. 13, 2019 | Jun. 14, 2019 | Mar. 15, 2019 | Aug. 31, 2020 | May 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | May 21, 2015 | Jan. 13, 2015 | Jul. 15, 2014 |
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share) | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.12 | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 3,000,000 | ||||||||||||||
Stock Repurchase Program, Additional Authorized Amount | $ 2,090,000 | $ 2,058,000 | |||||||||||||
Treasury Stock, Shares, Acquired (in shares) | 0 | 0 | |||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 638,000 | $ 638,000 | |||||||||||||
Share-based Payment Arrangement, Expense | 143,719 | $ 155,416 | $ 287,437 | $ 386,670 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 0 | ||||||||||||||
Restricted Stock [Member] | |||||||||||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture, Total (in shares) | 0 | 4,833 | |||||||||||||
Unrestricted Shares of Stock [Member] | |||||||||||||||
Share-based Payment Arrangement, Expense | $ 0 | $ 45,652 | |||||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||||||
Share-based Payment Arrangement, Expense | $ 143,719 | $ 287,437 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 47,929 | 28,502 | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Grant Date Fair Value, Amount | $ 1,850,943 | ||||||||||||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years 54 days | ||||||||||||||
Subsequent Event [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized (in shares) | 300,000 | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 319,324 | ||||||||||||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 6 years | 6 years | |||||||||||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | ||||||||||||||
Warrant to Purchase Common Stock [Member] | |||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 8.76 | ||||||||||||||
Certain Revenue Thresholds, Cumulative Basis Connection with Performance Basis (Year) | 5 years | ||||||||||||||
Warrants and Rights Outstanding, Term (Month) | 180 days | ||||||||||||||
Warrant to Purchase Common Stock [Member] | Maximum [Member] | |||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 960,677 |
Note 10 - Stockholders' Equit_3
Note 10 - Stockholders' Equity - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 6 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Outstanding non-vested restricted stock units as of February 28 or 29: (in shares) | 265,555 | 25,002 |
Granted (in shares) | 270,000 | |
Vested (in shares) | (47,929) | (28,502) |
Cancelled/forfeited (in shares) | ||
Outstanding non-vested restricted stock units as of August 31: (in shares) | 217,626 | 266,500 |
Weighted average grant date fair value (in dollars per share) | $ 9.40 | $ 9.40 |
Weighted average remaining vesting period (Year) | 4 years 54 days | 5 years 51 days |
Note 11 - Earnings Per Share (D
Note 11 - Earnings Per Share (Details Textual) | 6 Months Ended |
Aug. 31, 2020shares | |
Warrant [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 960,677 |
Restricted Stock Units (RSUs) [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 222,634 |
Note 12 - Leasing Arrangement_2
Note 12 - Leasing Arrangements (Details Textual) - USD ($) | 6 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Mar. 01, 2019 | |
Operating Lease, Expense | $ 440,121 | $ 478,707 | |
Operating Lease, Liability, Total | $ 2,334,842 | ||
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | ||
Lessee, Operating Lease, Liability, to be Paid, Total | $ 2,576,650 | ||
Company-owned Location [Member] | |||
Operating Lease, Liability, Total | 476,611 | ||
Lessee, Operating Lease, Liability, to be Paid, Total | $ 532,811 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating Lease, Liability, Total | $ 3,300,000 | ||
Maximum [Member] | |||
Lessee, Operating Lease, Term of Contract (Year) | 10 years | ||
Lessee, Operating Lease, Renewal Term (Year) | 10 years | ||
Minimum [Member] | |||
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Note 12 - Leasing Arrangement_3
Note 12 - Leasing Arrangements - Maturities of Lease Liabilities for Operating Leases (Details) | Aug. 31, 2020USD ($) |
FY 21 | $ 411,447 |
FY 22 | 694,755 |
FY 23 | 437,445 |
FY 24 | 315,962 |
FY 25 | 164,223 |
Thereafter | 552,818 |
Total | 2,576,650 |
Less: imputed interest | (241,808) |
Operating Lease, Liability, Total | $ 2,334,842 |
Weighted average lease term (in years) (Year) | 6 years 255 days |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Details Textual) | 6 Months Ended |
Aug. 31, 2020USD ($) | |
Contractual Obligation, Total | $ 100,000 |
Minimum [Member] | |
Purchase Contracts, Term (Month) | 180 days |
Maximum [Member] | |
Purchase Contracts, Term (Month) | 1 year 180 days |
Note 14 - FTD Loss Contingency
Note 14 - FTD Loss Contingency (Details Textual) - USD ($) | 6 Months Ended | |
Aug. 31, 2020 | Feb. 29, 2020 | |
Inventory, Net, Total | $ 5,726,426 | $ 3,750,978 |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 2,917,061 | $ 4,049,959 |
FTD's Bankruptcy [Member] | ||
Inventory, Net, Total | 226,000 | |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 80,000 | |
Loss Contingency, Loss in Period | $ 146,000 |
Note 15 - Income Taxes (Details
Note 15 - Income Taxes (Details Textual) | 6 Months Ended |
Aug. 31, 2020 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 16 - Operating Segments (D
Note 16 - Operating Segments (Details Textual) | 6 Months Ended |
Aug. 31, 2020 | |
Number of Reportable Segments | 5 |
Note 16 - Operating Segments -
Note 16 - Operating Segments - Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Feb. 29, 2020 | |
Revenues | $ 5,327,402 | $ 7,385,270 | $ 8,029,839 | $ 15,811,269 | |
Segment profit (loss) | 100,733 | 1,247,763 | (4,745,992) | 2,191,547 | |
Total assets | 29,187,439 | 29,286,343 | 29,187,439 | 29,286,343 | $ 27,817,388 |
Capital expenditures | 28,364 | 197,436 | 50,853 | 480,984 | |
Total depreciation and amortization | 334,853 | 372,833 | 677,967 | 750,486 | |
Capital expenditures | (28,364) | (197,436) | (50,853) | (480,984) | |
Franchising [Member] | |||||
Revenues | 1,040,136 | 1,514,484 | 1,293,930 | 2,942,239 | |
Segment profit (loss) | 366,535 | 828,978 | (84,784) | 1,446,888 | |
Total assets | 1,387,005 | 1,445,041 | 1,387,005 | 1,445,041 | |
Capital expenditures | 150 | 2,040 | 150 | 8,500 | |
Total depreciation and amortization | 10,095 | 10,353 | 20,233 | 21,183 | |
Capital expenditures | (150) | (2,040) | (150) | (8,500) | |
Manufacturing [Member] | |||||
Revenues | 3,498,752 | 4,482,373 | 5,633,367 | 10,088,393 | |
Segment profit (loss) | 489,668 | 955,360 | (293,801) | 2,124,047 | |
Total assets | 12,241,965 | 11,838,237 | 12,241,965 | 11,838,237 | |
Capital expenditures | 11,343 | 162,127 | 25,197 | 385,679 | |
Total depreciation and amortization | 162,523 | 151,848 | 324,353 | 301,980 | |
Capital expenditures | (11,343) | (162,127) | (25,197) | (385,679) | |
Retail Segment [Member] | |||||
Revenues | 193,702 | 265,662 | 253,683 | 498,081 | |
Segment profit (loss) | 21,924 | 7,979 | (455,902) | (7,033) | |
Total assets | 618,323 | 1,005,356 | 618,323 | 1,005,356 | |
Capital expenditures | 72 | 23,106 | 72 | 32,624 | |
Total depreciation and amortization | 1,391 | 2,533 | 4,794 | 5,143 | |
Capital expenditures | (72) | (23,106) | (72) | (32,624) | |
U-Swirl Segment [Member] | |||||
Revenues | 594,812 | 1,122,751 | 848,859 | 2,282,556 | |
Segment profit (loss) | 11,903 | 296,880 | (445,815) | 576,043 | |
Total assets | 5,526,772 | 5,620,012 | 5,526,772 | 5,620,012 | |
Capital expenditures | 1,673 | 1,712 | 1,673 | ||
Total depreciation and amortization | 140,823 | 185,208 | 287,772 | 375,977 | |
Capital expenditures | (1,673) | (1,712) | (1,673) | ||
Other Segments [Member] | |||||
Revenues | 0 | 0 | |||
Segment profit (loss) | (789,297) | (841,434) | (3,465,690) | (1,948,398) | |
Total assets | 9,413,374 | 9,377,697 | 9,413,374 | 9,377,697 | |
Capital expenditures | 16,799 | 12,570 | 23,722 | 52,508 | |
Total depreciation and amortization | 20,021 | 22,891 | 40,815 | 46,203 | |
Capital expenditures | (16,799) | (12,570) | (23,722) | (52,508) | |
Operating Segments [Member] | |||||
Revenues | 5,597,793 | 7,618,900 | 8,459,389 | 16,306,637 | |
Operating Segments [Member] | Franchising [Member] | |||||
Revenues | 1,040,863 | 1,515,805 | 1,295,339 | 2,944,846 | |
Operating Segments [Member] | Manufacturing [Member] | |||||
Revenues | 3,768,416 | 4,714,682 | 6,061,508 | 10,581,154 | |
Operating Segments [Member] | Retail Segment [Member] | |||||
Revenues | 193,702 | 265,662 | 253,683 | 498,081 | |
Operating Segments [Member] | U-Swirl Segment [Member] | |||||
Revenues | 594,812 | 1,122,751 | 848,859 | 2,282,556 | |
Operating Segments [Member] | Other Segments [Member] | |||||
Revenues | 0 | 0 | |||
Intersegment Eliminations [Member] | |||||
Revenues | (270,391) | (233,630) | (429,550) | (495,368) | |
Intersegment Eliminations [Member] | Franchising [Member] | |||||
Revenues | (727) | (1,321) | (1,409) | (2,607) | |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||||
Revenues | (269,664) | (232,309) | (428,141) | (492,761) | |
Intersegment Eliminations [Member] | Retail Segment [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Other Segments [Member] | |||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |