Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | May 19, 2023 | Aug. 31, 2022 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001616262 | ||
Entity Registrant Name | Rocky Mountain Chocolate Factory, Inc. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-28 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 28, 2023 | ||
Document Transition Report | false | ||
Entity File Number | 001-36865 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 47-1535633 | ||
Entity Address, Address Line One | 265 Turner Drive | ||
Entity Address, City or Town | Durango | ||
Entity Address, State or Province | CO | ||
Entity Address, Postal Zip Code | 81303 | ||
City Area Code | 970 | ||
Local Phone Number | 259-0554 | ||
Title of 12(b) Security | Common Stock, $0.001 par value per share | ||
Trading Symbol | RMCF | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 36,755,278 | ||
Entity Common Stock, Shares Outstanding | 6,283,450 | ||
Auditor Name | Plante & Moran, PLLC | ||
Auditor Location | Cleveland, Ohio | ||
Auditor Firm ID | 166 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenues | |||
Total revenue | $ 30,432,352 | $ 29,488,548 | $ 21,763,181 |
Costs and Expenses | |||
Cost of sales | 20,455,373 | 18,610,739 | 15,798,557 |
Sales and marketing | 2,060,215 | 1,474,807 | 1,623,173 |
General and administrative | 10,325,633 | 7,456,314 | 4,938,095 |
Depreciation and amortization, exclusive of depreciation and amortization expense of $646,394, $620,798, and $625,526, respectively, included in cost of sales | 118,869 | 119,377 | 152,921 |
Costs associated with Company-owned store closures | 0 | 0 | 57,100 |
Total costs and expenses | 35,323,355 | 30,183,070 | 24,492,214 |
Loss from Operations | (4,891,003) | (694,522) | (2,729,033) |
Other Income (Expense) | |||
Interest expense | (10,431) | 0 | (93,897) |
Interest income | 26,921 | 10,870 | 16,982 |
Gain on insurance recovery | 0 | 167,123 | 210,464 |
Paycheck Protection Program | 0 | 0 | 1,440,267 |
Other income (expense), net | 16,490 | 177,993 | 1,573,816 |
Loss Before Income Taxes | (4,874,513) | (516,529) | (1,155,217) |
Income Tax Provision | 613,843 | (16,812) | (745,495) |
Net Loss from Continuing Operations | (5,488,356) | (499,717) | (409,722) |
Earnings (loss) from discontinued operations, net of tax | (192,422) | 158,020 | (490,055) |
Consolidated Net Loss | $ (5,680,778) | $ (341,697) | $ (899,777) |
Basic Loss per Common Share | |||
Loss from continuing operations (in dollars per share) | $ (0.88) | $ (0.08) | $ (0.07) |
Earnings (loss) from discontinued operations (in dollars per share) | (0.03) | 0.02 | (0.08) |
Net Earnings (in dollars per share) | (0.91) | (0.06) | (0.15) |
Diluted Loss per Common Share | |||
Loss from continuing operations (in dollars per share) | (0.88) | (0.08) | (0.07) |
Earnings (loss) from discontinued operations (in dollars per share) | (0.03) | 0.02 | (0.08) |
Net Earnings (in dollars per share) | $ (0.91) | $ (0.06) | $ (0.15) |
Weighted Average Common Shares Outstanding - Basic (in shares) | 6,226,279 | 6,140,687 | 6,067,461 |
Dilutive Effect of Employee Stock Awards (in shares) | 0 | 0 | 0 |
Weighted Average Common Shares Outstanding - Diluted (in shares) | 6,226,279 | 6,140,687 | 6,067,461 |
Product [Member] | |||
Revenues | |||
Total revenue | $ 24,456,910 | $ 23,534,470 | $ 18,217,794 |
Franchise and Royalty Fees [Member] | |||
Revenues | |||
Total revenue | 5,975,442 | 5,954,078 | 3,545,387 |
Franchise [Member] | |||
Costs and Expenses | |||
Costs | 1,825,783 | 1,914,944 | 1,443,807 |
Retail [Member] | |||
Costs and Expenses | |||
Costs | $ 537,482 | $ 606,889 | $ 478,561 |
Consolidated Statements of Op_2
Consolidated Statements of Operations (Parentheticals) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Amortization expense included in cost of goods sold | $ 646,394 | $ 620,798 | $ 625,526 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Feb. 28, 2023 | Feb. 28, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 4,717,068 | $ 7,587,374 |
Accounts receivable, less allowance for doubtful accounts of $666,315 and $804,815, respectively | 2,055,694 | 1,905,836 |
Notes receivable, current portion, less current portion of the valuation allowance of $35,173 and $47,228, respectively | 23,698 | 8,680 |
Refundable income taxes | 344,885 | 736,528 |
Inventories | 3,639,780 | 4,297,883 |
Other | 340,847 | 334,801 |
Current assets held for sale | 83,004 | 126,864 |
Total current assets | 11,204,976 | 14,997,966 |
Property and Equipment, Net | 5,710,739 | 5,451,188 |
Other Assets | ||
Notes receivable, less current portion and valuation allowance of $38,778 and $65,059, respectively | 94,076 | 0 |
Goodwill, net | 575,608 | 729,701 |
Intangible assets, net | 265,927 | 294,832 |
Deferred income taxes | 722,163 | |
Lease right of use asset | 2,355,601 | 1,771,034 |
Other | 14,054 | 28,087 |
Long-term assets held for sale | 1,765,846 | 2,885,790 |
Total other assets | 5,071,112 | 6,431,607 |
Total Assets | 21,986,827 | 26,880,761 |
Current Liabilities | ||
Accounts payable | 2,189,760 | 1,496,008 |
Accrued salaries and wages | 978,606 | 2,076,118 |
Gift card liabilities | 592,932 | 574,883 |
Other accrued expenses | 162,346 | 224,256 |
Contract liabilities | 161,137 | 171,327 |
Lease liability | 746,506 | 595,897 |
Current liabilities held for sale | 178,939 | 173,243 |
Total current liabilities | 5,010,226 | 5,311,732 |
Lease Liability, Less Current Portion | 1,640,017 | 1,218,256 |
Contract Liabilities, Less Current Portion | 782,278 | 791,245 |
Long-term liabilities - held for sale | 184,142 | 159,602 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock, $.001 par value per share; 250,000 authorized; -0- shares issued and outstanding | 0 | 0 |
Common stock, $.001 par value, 46,000,000 shares authorized, 6,257,137 shares and 6,186,356 shares issued and outstanding, respectively | 6,257 | 6,186 |
Additional paid-in capital | 9,457,875 | 8,806,930 |
Retained earnings | 4,906,032 | 10,586,810 |
Total stockholders' equity | 14,370,164 | 19,399,926 |
Total Liabilities and Stockholders' Equity | $ 21,986,827 | $ 26,880,761 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Feb. 28, 2023 | Feb. 28, 2022 |
Accounts receivable, allowance for doubtful accounts | $ 666,315 | $ 804,815 |
Notes receivable, current portion of the valuation allowance | 35,173 | 47,228 |
Financing Receivable, Allowance for Credit Loss, Noncurrent | $ 38,778 | $ 65,059 |
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) | 6,257,137 | 6,186,356 |
Common stock, shares outstanding (in shares) | 6,257,137 | 6,186,356 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance at Feb. 29, 2020 | $ 6,020 | $ 7,459,931 | $ 11,889,560 | |
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld | 0 | 0 | ||
Equity compensation, restricted stock units, net of shares withheld | 54 | 511,781 | ||
Balance at Feb. 28, 2021 | $ 6,074 | 7,971,712 | 10,989,783 | $ 18,967,569 |
Net (loss) income attributable to RMCF stockholders | (899,777) | (899,777) | ||
Cash dividends declared | 0 | |||
Redemption of outstanding preferred stock purchase rights | 0 | |||
Balance (in shares) at Feb. 29, 2020 | 6,019,532 | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld (in shares) | 0 | |||
Equity compensation, restricted stock units, net of shares withheld (in shares) | 54,761 | |||
Balance (in shares) at Feb. 28, 2021 | 6,074,293 | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld | $ 9 | 46,601 | ||
Equity compensation, restricted stock units, net of shares withheld | 103 | 788,617 | ||
Balance at Feb. 28, 2022 | $ 6,186 | 8,806,930 | 10,586,810 | 19,399,926 |
Net (loss) income attributable to RMCF stockholders | (341,697) | (341,697) | ||
Cash dividends declared | 0 | |||
Redemption of outstanding preferred stock purchase rights | (61,276) | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld (in shares) | 9,000 | |||
Equity compensation, restricted stock units, net of shares withheld (in shares) | 103,063 | |||
Balance (in shares) at Feb. 28, 2022 | 6,186,356 | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld | $ 0 | 0 | ||
Equity compensation, restricted stock units, net of shares withheld | 71 | 650,945 | ||
Balance at Feb. 28, 2023 | $ 6,257 | $ 9,457,875 | 4,906,032 | 14,370,164 |
Net (loss) income attributable to RMCF stockholders | (5,680,778) | $ (5,680,778) | ||
Cash dividends declared | 0 | |||
Redemption of outstanding preferred stock purchase rights | $ 0 | |||
Issuance of common stock, vesting of restricted stock units and other, net of shares withheld (in shares) | 0 | |||
Equity compensation, restricted stock units, net of shares withheld (in shares) | 70,781 | |||
Balance (in shares) at Feb. 28, 2023 | 6,257,137 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Cash Flows From Operating Activities | |||
Consolidated Net Loss | $ (5,680,778) | $ (341,697) | $ (899,777) |
Less: Net (Loss) Income from discontinued operations, net of tax | (192,422) | 158,020 | (490,055) |
Net (Loss) Income from continuing operations | (5,488,356) | (499,717) | (409,722) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 765,263 | 740,175 | 778,447 |
Provision for obsolete inventory | 732,499 | 384,473 | 262,156 |
Provision for loss on accounts and notes receivable | (277,000) | 0 | 1,241,762 |
Asset impairment and store closure losses | 84,183 | 0 | 533,343 |
Loss (gain) on sale or disposal of property and equipment | 11,958 | (159,129) | (368,037) |
Forgiveness of Paycheck Protection Program | 0 | 0 | (1,429,500) |
Expense recorded for stock compensation | 651,016 | 1,073,115 | 511,835 |
Deferred income taxes | 722,163 | (267,576) | (496,491) |
Changes in operating assets and liabilities: | |||
Accounts receivable | 82,050 | 46,311 | 954,454 |
Refundable income taxes | 391,643 | 37,999 | (356,208) |
Inventories | (70,069) | (581,433) | (634,458) |
Other current assets | (7,246) | (122,647) | 196,088 |
Accounts payable | 661,111 | 200,557 | (815,094) |
Accrued liabilities | (1,163,216) | 1,332,993 | 24,105 |
Contract liabilities | 5,384 | 26,321 | (19,042) |
Net cash (used in) provided by operating activities of continuing operations | (2,898,617) | 2,211,442 | (26,362) |
Net cash provided by operating activities of discontinued operations | 796,126 | 646,712 | 93,708 |
Net cash (used in) provided by operating activities | (2,102,491) | 2,858,154 | 67,346 |
Addition to notes receivable | (64,621) | 0 | 0 |
Proceeds received on notes receivable | 62,411 | 109,809 | 73,699 |
Purchase of intangible assets | 0 | 0 | (99,048) |
Proceeds from insurance recovery | 0 | 206,336 | 304,962 |
Proceeds from the sale or distribution of assets | 27,289 | 2,693 | 0 |
Purchases of property and equipment | (1,000,015) | (941,327) | (149,517) |
(Increase) decrease in other assets | 10,000 | (10,000) | (207,761) |
Net cash used in by investing activities of continuing operations | (964,936) | (632,489) | (77,665) |
Net cash provided by investing activities of discontinued operations | 197,121 | 27,491 | 6,671 |
Net cash used in investing activities | (767,815) | (604,998) | (70,994) |
Cash Flows from Financing Activities | |||
Repurchase of common stock through net settlement of restricted stock units | 0 | (237,785) | 0 |
Proceeds from Paycheck Protection Program | 0 | 0 | 1,429,500 |
Dividends paid and redemption of outstanding preferred stock purchase rights | 0 | (61,276) | (722,344) |
Net cash (used in) provided by financing activities of continuing operations | 0 | (299,061) | 707,156 |
Net cash provided by financing activities of discontinued operations | 0 | 0 | 107,700 |
Net cash provided by (used in) financing activities | 0 | (299,061) | 814,856 |
Net Increase (Decrease) in Cash and Cash Equivalents | (2,870,306) | 1,954,095 | 811,208 |
Cash and Cash Equivalents, Beginning of Period | 7,587,374 | 5,633,279 | 4,822,071 |
Cash and Cash Equivalents, End of Period | $ 4,717,068 | $ 7,587,374 | $ 5,633,279 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 28, 2023 | |
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”), U-Swirl International, Inc. (“U-Swirl”), and U-Swirl, Inc. (“SWRL”) (collectively, the “Company” or “RMCF”). The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, On February 24, 2023 three May 1, 2023, 2023 See Note 20 The Company’s revenues are currently derived from three In FY 2020 2021 1,000 2022 November 1, 2022, December 20, 2019 ( March 16, 2020 ( no December 20, 2019, December 20, 2019, March 16, 2020, 2023, 2022 2021 The following table summarizes the number of stores operating under the Rocky Mountain Chocolate Factory brand at February 28, 2023: Stores Open at 2/28/2022 Opened Closed Sold Stores Open at 2/28/2023 Sold, Not Yet Open Total Rocky Mountain Chocolate Factory Company-owned stores 2 - - (1 ) 1 - 1 Franchise stores - Domestic stores and kiosks 154 5 (7 ) 1 153 6 159 International license stores 5 - (1 ) - 4 1 5 Cold Stone Creamery - co-branded 97 7 (3 ) - 101 - 101 U-Swirl - co-branded 9 2 (1 ) - 10 - 10 Total 267 269 7 276 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. All intercompany balances and transactions have been eliminated in consolidation. Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three February 28, 2023. 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 a 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, 2023, February 28, 2022. December 2027 may March 1 2021, Inventories Inventories are stated at the lower of cost or net realizable value, which is adjusted for obsolete, damaged and excess inventories to the lower of cost or net realizable value based on actual differences. The inventory value is determined through analysis of items held in inventory, and, if the recorded value is higher than the net realizable value, the Company records an expense to reduce inventory to its actual net realizable 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, net realizable 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 ranges 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 basis 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. 382 14. Gift Card Breakage The Company and its franchisees sell gift cards that are redeemable for product in 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 current liabilities in our balance sheets. There are no not may February 28, 2023 February 28, 2022, 2023 2022, Goodwill Goodwill arose primarily from two 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 7 Intangible Assets Intangible assets represent non-physical assets that create future economic value and are primarily composed of packaging design, store design, trademarks and non-competition agreements. Intangible assets are amortized on a straight line bases over a period ranging from 3 years to 20 years based on the expected future economic value of the intangible asset. Intangible assets are recorded at their cost. The Company performs intangible asset impairment testing on an annual basis or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not 7 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 The Company has performance obligations to sell products to franchisees and other customers, and revenue is recognized at a point in time. Control is transferred when the order has been shipped to a customer, utilizing a third 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 The Company recognizes franchise fees over the term of the associated franchise agreement, which is generally a period of 10 years. In addition to the initial franchise fee, the Company also recognizes a marketing and promotion fee of one no ten 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, and 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. Stock-Based Compensation On February 28, 2023, one 2007 The Company recognized $651,016, $1,073,115, and $511,835 related to equity-based compensation expense during the years ended February 28, 2023, 2022 2021, During FY 2023, 2022, no 2023 2022. five six 2023 2022 2021. February 28, 2023 The Company did not February 28, 2023, February 28, 2022 no February 29, 2021. February 28 29, 2023, 2022 2021, During FY 2023, third February 28, 2023, February 28, 2025. February 2025 During FY 2023 2022 March 2025. 1, 12 19 Earnings Per 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 2017, no The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not February 28, 2023, February 28, 2022, February 28, 2021, Advertising and Promotional Expenses The Company expenses advertising costs as incurred. Total advertising expenses for RMCF amounted to $577,984, $210,103, and $265,285 for the fiscal years ended February 28, 2023, 2022 2021, 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. All of the Company’s financial instruments are classified as level 1 2 not 3 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 Subsequent Events Except as described below, management evaluated all activity of the Company through the issue date of the financial statements and concluded that no On May 1, 2023, 2023, three three February 24, 2023. May 1, 2023, See Note 20 8, On May 8, 2023 May 3, 2023 ( December 31, 2023, twenty-six November 2023, ( 18 not |
Note 2 - Supplemental Cash Flow
Note 2 - Supplemental Cash Flow Information | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | NOTE 2 For the three February 28: Cash paid (received) for: 2023 2022 2021 Interest $ 25,000 $ 5,202 $ 76,803 Income taxes (547,763 ) 240,890 (21,021 ) |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | NOTE 3 The Company recognizes revenue from contracts with its customers in accordance with Accounting Standards Codification® (“ASC”) 606, not Initial Franchise Fees, License Fees, Transfer Fees and Renewal Fees The initial franchise services are not The following table summarizes contract liabilities as of February 28, 2023 February 28, 2022: Twelve Months Ended February 28: 2023 2022 Contract liabilities at the beginning of the year: $ 962,572 $ 958,177 Revenue recognized (204,657 ) (179,678 ) Contract fees received 185,500 206,000 Amortized gain on the financed sale of equipment - (21,927 ) Contract liabilities at the end of the year: $ 943,415 $ 962,572 At February 28, 2023, not 2024 $ 161,137 2025 146,194 2026 133,309 2027 119,878 2028 92,340 Thereafter 290,557 Total $ 943,415 Gift Cards The Company’s franchisees sell gift cards, which do not 606 Factory Sales of Confectionary Items, Retail Sales and Royalty and Marketing Fees Confectionary items sold to the Company’s franchisees, others and its Company-owned stores’ sales are recognized at the time of the underlying sale, based on the terms of the sale and when ownership of the inventory is transferred, and are presented net of sales taxes and discounts. Royalties and marketing fees from franchised or licensed locations, which are based on a percent of sales are recognized at the time the sales occur. |
Note 4 - Disaggregation of Reve
Note 4 - Disaggregation of Revenue | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Disaggregation of Revenue [Text Block] | NOTE 4 The following table presents disaggregated revenue by the method of recognition and segment: For the Year Ended February 28, 2023 Revenues recognized over time: Franchising Manufacturing Retail Total Franchise fees $ 204,657 $ - $ - $ 204,657 Revenues recognized at a point in time: Franchising Manufacturing Retail Total Factory sales - 23,372,133 - 23,372,133 Retail sales - - 1,084,777 1,084,777 Royalty and marketing fees 5,770,785 - - 5,770,785 Total $ 5,975,442 $ 23,372,133 $ 1,084,777 $ 30,432,352 For the Year Ended February 28, 2022 Revenues recognized over time: Franchising Manufacturing Retail Total Franchise fees $ 179,678 $ - $ - $ 179,678 Revenues recognized at a point in time: Franchising Manufacturing Retail Total Factory sales - 22,374,175 - 22,374,175 Retail sales - - 1,160,295 1,160,295 Royalty and marketing fees 5,774,400 - - 5,774,400 Total $ 5,954,078 $ 22,374,175 $ 1,160,295 $ 29,488,548 For the Year Ended February 28, 2021 Revenues recognized over time: Franchising Manufacturing Retail Total Franchise fees $ 178,042 $ - $ - $ 178,042 Revenues recognized at a point in time: Franchising Manufacturing Retail Total Factory sales - 17,321,001 - 17,321,001 Retail sales - - 896,793 896,793 Royalty and marketing fees 3,367,345 - - 3,367,345 Total $ 3,545,387 $ 17,321,001 $ 896,793 $ 21,763,181 |
Note 5 - Inventories
Note 5 - Inventories | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 5 Inventories consist of the following at February 28: 2023 2022 Ingredients and supplies $ 2,481,510 $ 2,753,068 Finished candy 1,567,887 2,168,084 Reserve for slow moving inventory (409,617 ) (623,269 ) Total inventories $ 3,639,780 $ 4,297,883 |
Note 6 - Property and Equipment
Note 6 - Property and Equipment, Net | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 Property and equipment consists of the following at February 28: 2023 2022 Land $ 513,618 $ 513,618 Building 5,151,886 5,148,854 Machinery and equipment 10,152,211 9,582,157 Furniture and fixtures 512,172 533,836 Leasehold improvements 134,010 169,683 Transportation equipment 476,376 479,701 16,940,273 16,427,849 Less accumulated depreciation (11,229,534 ) (10,976,661 ) Property and equipment, net $ 5,710,739 $ 5,451,188 Depreciation expense related to property and equipment totaled $736,358, $710,804, and $751,396 during the fiscal years ended February 28, 2023, 2022 2021, |
Note 7 - Goodwill and Intangibl
Note 7 - Goodwill and Intangible Assets | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 7 Goodwill and intangible assets consist of the following at February 28: 2023 2022 Amortization Period (in Years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 394,826 $ 259,314 $ 394,826 $ 240,409 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 - 20 259,339 128,924 259,339 118,924 Total 1,205,968 940,041 1,205,968 911,136 Goodwill and intangible assets not subject to amortization Franchising segment Company stores goodwill $ 360,972 $ 515,065 Franchising goodwill 97,318 97,318 Manufacturing segment-goodwill 97,318 97,318 Trademark 20,000 20,000 Total 575,608 729,701 Total Goodwill and Intangible Assets $ 1,781,576 $ 940,041 $ 1,935,669 $ 911,136 Changes to goodwill during the fiscal year ended February 28, 2023 Retail Segment Balance as of February 28, 2022 Goodwill $ 515,065 Impairment losses (84,183 ) Goodwill written off related to sales of Company-owned stores (69,910 ) Balance as of February 28, 2023 $ 360,972 Amortization expense related to intangible assets totaled $28,905, $29,371, $27,051 February 28, 2023, 2022 2021, At February 28, 2023, 2024 28,030 2025 27,405 2026 27,405 2027 27,405 2028 27,405 Thereafter 128,277 Total $ 265,927 |
Note 8 - Impairment of Long-liv
Note 8 - Impairment of Long-lived and Intangible Assets | 12 Months Ended |
Feb. 28, 2023 | |
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 2023 2021 2021, 19 2023 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 the operation of our Company-owned store. ● Forecasted future royalty revenue, marketing revenue and associated expenses. ● The projected rate of royalty savings on trademarks. ● Our cost of capital. During FY 2023, 2022, 2021, 2023 2022 2021 Company store goodwill impairment $ 84,183 $ 0 $ 317,243 Trademark intangible asset impairment - - 159,000 Company-owned store impairment of long-lived assets - - 57,100 Total $ 84,183 $ 0 $ 533,343 |
Note 9 - Notes Payable and Revo
Note 9 - Notes Payable and Revolving Credit Line | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 9 Paycheck Protection Program During FY 2021 2021, The amount of loan proceeds eligible for forgiveness was based on a formula based on a number of factors, including the amount of loan proceeds used by the Company during the period after the loan origination for certain purposes, including payroll costs, interest on certain mortgage obligations, rent payments on certain leases, and certain qualified utility payments, provided that, among other things, at least 60 75% Revolving Credit Line The Company has a $5.0 million credit line for general corporate and working capital purposes, of which $5.0 million was available for borrowing (subject to certain borrowing base limitations) as of February 28, 2023. February 28, 2023). February 28, 2023, September 2023. |
Note 10 - Stock Compensation Pl
Note 10 - Stock Compensation Plans | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE 10 In FY 2021, 2007 “2007 2007 The following table summarizes stock awards under the 2007 February 28, 2023: Original share authorization: 300,000 Prior plan shares authorized and incorporated in the 2007 Plan: 85,340 Additional shares authorized through 2007 Plan amendments: 600,000 Available for award: 985,340 Cancelled/forfeited: 244,647 Shares awarded as unrestricted shares, stock options or restricted stock units: (1,066,781 ) Shares available for award: 163,206 Information with respect to restricted stock unit awards outstanding under the 2007 February 28, 2023, three Twelve Months Ended February 28: 2023 2022 2021 Outstanding non-vested restricted stock units at beginning of year: 105,978 209,450 265,555 Granted 129,092 26,058 - Vested (70,782 ) (127,130 ) (54,761 ) Cancelled/forfeited (10,157 ) (2,400 ) (1,344 ) Outstanding non-vested restricted stock units as of February 28: 154,131 105,978 209,450 Weighted average grant date fair value $ 5.23 $ 9.33 $ 9.40 Weighted average remaining vesting period (in years) 1.73 2.26 3.68 Information with respect to stock option awards outstanding under the 2007 February 28, 2023, three Twelve Months Ended February 28: 2023 2022 2021 Outstanding stock options at beginning of year: - - - Granted 36,144 - - Exercised - - - Cancelled/forfeited - - - Outstanding stock options as of February 28 or 29: 36,144 - - Weighted average exercise price 6.49 n/a n/a Weighted average remaining contractual term (in years) 9.26 n/a n/a |
Note 11 - Leasing Arrangements
Note 11 - Leasing Arrangements | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE 11 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 franchised locations are leased by the franchisee directly. 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 following is a schedule of lease expense for all retail operating leases for the three February 28: 2023 2022 2021 Minimum rentals $ 106,203 $ 136,125 $ 189,696 Less sublease rentals (39,186 ) (60,254 ) (113,515 ) Contingent rentals 30,600 22,800 10,800 $ 97,617 $ 98,671 $ 86,981 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. The following is a schedule of lease expense for trucking equipment operating leases for the three February 28: 2023 2022 2021 351,738 270,767 340,731 As of February 28, 2023 2022 nine ASU 2016 02 842 not The amount of the ‘Right of Use Asset’ and ‘Lease Liability’ recorded in the Consolidated Balance Sheets upon the adoption of ASU 2016 02 not not not not February 28, 2023, 2022 2021, As of February 28, 2023, FYE 24 $ 760,952 FYE 25 611,988 FYE 26 514,346 FYE 27 242,558 FYE 28 71,671 Thereafter 390,450 Total $ 2,591,965 Less: Imputed interest (205,442 ) Present value of lease liabilities: $ 2,386,523 The weighted average lease term at February 28, 2023, 2022, 2021 The following is a schedule of cash paid for lease liabilities for the three February 28: 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities 572,079 563,264 530,137 During the years ended February 28, 2023, 2022, 2021 The Company did not February 28, 2023 February 28, 2022. |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12 Employment Agreement Payments upon a Change in Control We have entered into employment agreements with certain of our former executives which contain, among other things, "change in control" severance provisions. The employment agreement of Mr. Dudley generally provides that, if the Company or the executive terminates the executive's employment under circumstances constituting a "triggering termination," the executive will be entitled to receive, among other benefits, 2.99 two 25% 18 A “change in control,” as used in the agreement for Mr. Dudley, generally means a change in the control of the Company following any number of events, but specifically, a proxy contest in which our Board of Directors prior to the transaction constitutes less than a majority of our Board of Directors after the transaction or the members of our Board of Directors during any consecutive two October 6, 2021. may In connection with Mr. Dudley’s retirement, Mr. Dudley and the Company entered into a Separation Agreement and General Release (the “Separation Agreement”), dated September 30, 2022 ( $70,000; December 31, 2022, Mr. Sarlls’ employment agreement provides for the following upon “change in control”: If Mr. Sarlls’ employment is involuntarily terminated without cause or if he resigns for good reason on or within 2 15 15 1.409A 3 5 Mr. Arroyo’s employment agreement provides for the following upon “change in control”: If Mr. Arroyo’s employment is involuntarily terminated without cause or if he resigns for good reason on or within 2 9 9 1.409A 3 5 Purchase contracts The Company frequently enters into purchase contracts of between six eighteen may may may February 28, 2023, not Litigation From time to time, the Company is involved in litigation relating to claims arising out of its operations. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. At February 28, 2023, not |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Equity [Text Block] | NOTE 13 Redemption of Preferred Stock Purchase Rights On October 2, 2021, March 1, 2015, October 2021 Warrants In consideration of Edible entering into the exclusive supplier agreement and the performance of its obligations therein, on December 20, 2019, five six fifth February 28, 2023, no November 1, 2022, no The Company determined that the grant date fair value of the warrants was de minimis and did not |
Note 14 - Income Taxes
Note 14 - Income Taxes | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 14 Income tax expense (benefit) is comprised of the following for the years ended February 28: 2023 2022 2021 Current Federal $ (116,792 ) $ 204,058 $ (294,368 ) State 8,472 46,704 44,643 Total Current (108,320 ) 250,762 (249,725 ) Deferred Federal 621,841 (231,430 ) (425,580 ) State 100,322 (36,144 ) (70,190 ) Total Deferred 722,163 (267,574 ) (495,770 ) Total $ 613,843 $ (16,812 ) $ (745,495 ) 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: 2023 2022 2021 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.9 % 3.8 % 4.3 % Paycheck Protection Program debt forgiveness 0.0 % 0.0 % 28.7 % Work opportunity tax credits 0.0 % (1.2 )% 0.3 % Equity compensation tax expense (0.7 )% (8.2 )% (2.5 )% Compensation and benefits permanent differences (3.2 )% (1.9 )% 0.0 % Other 0.7 % 0.1 % 0.6 % Valuation allowance (33.3 )% 0.0 % 0.0 % Impact of CARES act 0.0 % (10.3 )% 12.1 % Effective tax rate (12.6 )% 3.3 % 64.5 % During FY 2023 2023 no not February 28, 2023, During FY 2022 2021 The effective income tax rate for the year ended February 28, 2021 no 2021 The components of deferred income taxes at February 28 2023 2022 Deferred Tax Assets Allowance for doubtful accounts and notes $ 182,031 $ 225,515 Inventories 100,725 153,262 Accrued compensation 158,652 429,076 Loss provisions and deferred income 340,652 379,069 Self-insurance accrual 24,098 27,049 Amortization - - Restructuring charges 98,693 98,693 Accumulated net losses 1,669,288 445,560 Valuation allowance (1,721,306 ) (98,693 ) Net deferred tax assets $ 852,833 $ 1,659,531 Deferred Tax Liabilities Depreciation and amortization (771,593 ) (860,318 ) Prepaid expenses (81,240 ) (77,050 ) Deferred Tax Liabilities (852,833 ) (937,368 ) Net deferred tax assets $ - $ 722,163 The following table summarizes deferred income tax valuation allowances as of February 28: 2023 2022 Valuation allowance at beginning of period $ 98,693 $ 98,693 Tax expense realized by valuation allowance 1,622,613 - Valuation allowance at end of period $ 1,721,306 $ 98,693 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. 2022 2021 February 28, 2022. The Company’s deferred tax assets are valued at the current federally enacted rate of 21%. The loss carryback provisions of the CARES Act will enable the Company to offset taxable income from prior years when federally enacted tax rates were higher than 21%. 2021. In December 2020 2021 may 2021 no The Company files income tax returns in the U.S. federal and various state taxing jurisdictions. With few exceptions, the Company is no 2018. 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. A valuation allowance to reduce the carrying amount of deferred income tax assets is established when it is more likely than not not not . During FY 2023, 2022, 2021, 2022 2021 no not February 28, 2023, 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, 2023 2022. not not twelve February 28, 2023 2022. The Company’s subsidiaries, SWRL, along with U-Swirl had a history of net operating losses prior to the company’s acquisition of them and thus the Company has a related net operating loss carry forward. In accordance with Section 382 may 2017 The Company estimates that the potential future tax deductions of U-Swirl’s Federal net operating losses, limited by section 382, 2026. Income tax provision (benefit) allocated to continuing operations and discontinued operations for the years ended February 28, 2023, 2022 2021 2023 2022 2021 Continuing operations $ 613,843 $ (16,812 ) $ (745,495 ) Discontinued operations 618,308 52,194 (146,419 ) Total tax provision (benefit) $ 1,232,151 $ 35,382 $ (891,914 ) |
Note 15 - Employee Benefit Plan
Note 15 - Employee Benefit Plan | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 15 The Company has a 401 401 February 28, 2023, 2022 2021, |
Note 16 - Operating Segments
Note 16 - Operating Segments | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 16 The Company classifies its business interests into four reportable segments: Rocky Mountain Chocolate Factory, Inc. Franchising, Manufacturing, Retail Stores, and Other, which is the basis upon which the Company’s chief operating decision maker evaluates the Company’s performance. The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 FY 2023 Franchising Manufacturing Retail Other Total Total revenues $ 5,980,945 $ 24,628,317 $ 1,084,777 $ - $ 31,694,039 Intersegment revenues (5,503 ) (1,256,184 ) - - (1,261,687 ) Revenue from external customers 5,975,442 23,372,133 1,084,777 - 30,432,352 Segment profit (loss) 2,601,485 2,832,307 130,880 (10,439,185 ) (4,874,513 ) Total assets 1,245,331 9,792,491 442,977 10,506,028 21,986,827 Capital expenditures 17,129 899,219 5,413 78,254 1,000,015 Total depreciation & amortization $ 34,301 $ 652,405 $ 5,845 $ 72,712 $ 765,263 FY 2022 Franchising Manufacturing Retail Other Total Total revenues $ 5,959,624 $ 23,442,371 $ 1,160,295 $ - $ 30,562,290 Intersegment revenues (5,546 ) (1,068,196 ) - - (1,073,742 ) Revenue from external customers 5,954,078 22,374,175 1,160,295 - 29,488,548 Segment profit (loss) 2,862,263 3,863,460 75,962 (7,318,214 ) (516,529 ) Total assets 1,160,343 10,023,716 625,850 15,070,852 26,880,761 Capital expenditures 1,832 797,178 3,688 138,629 941,327 Total depreciation & amortization $ 36,625 $ 627,071 $ 5,635 $ 70,844 $ 740,175 FY 2021 Franchising Manufacturing Retail Other Total Total revenues $ 3,549,055 $ 18,316,165 $ 896,793 $ - $ 22,762,013 Intersegment revenues (3,668 ) (995,164 ) - - (998,832 ) Revenue from external customers 3,545,387 17,321,001 896,793 - 21,763,181 Segment profit (loss) 846,039 1,422,491 (309,799 ) (3,113,948 ) (1,155,217 ) Total assets 1,338,990 9,330,194 634,124 13,647,844 24,951,152 Capital expenditures 150 103,003 4,505 41,859 149,517 Total depreciation & amortization $ 42,579 $ 642,806 $ 14,150 $ 78,912 $ 778,447 |
Note 17 - Summarized Quarterly
Note 17 - Summarized Quarterly Data (Unaudited) | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | NOTE 17 Following is a summary of the quarterly results of operations for the fiscal years ended February 28, 2023 2022: Fiscal Quarter 2023 First Second Third Fourth Total Total revenue $ 6,902,198 $ 6,557,356 $ 8,825,093 $ 8,147,705 $ 30,432,352 Gross margin 881,699 1,181,806 1,859,186 78,846 4,001,537 Net (loss) income from continuing operations (285,767 ) (3,152,491 ) (196,157 ) (1,853,941 ) (5,488,356 ) Net (loss) income from discontinued operations 170,826 (488,695) (15,822 ) 141,269 (192,422 ) Net (loss) income $ (114,941 ) $ (3,641,186 ) $ (211,979 ) $ (1,712,672 ) $ (5,680,778 ) Basic earnings (loss) per share Earnings (loss) from continuing operations $ (0.05 ) $ (0.51 ) $ (0.03 ) $ (0.29 ) $ (0.88 ) Earnings (loss) from discontinued operations 0.03 (.08 ) - 0.02 (.03 ) Net Earnings $ (0.02 ) $ (0.59 ) $ (0.03 ) $ (0.27 ) $ (0.91 ) Diluted earnings (loss) per share Earnings (loss) from continuing operations $ (0.05 ) $ (0.51 ) $ (0.03 ) $ (0.29 ) $ (0.88 ) Earnings (loss) from discontinued operations 0.03 (.08 ) - 0.02 (.03 ) Net Earnings $ (0.02 ) $ (0.59 ) $ (0.03 ) $ (0.27 ) $ (0.91 ) Fiscal Quarter 2022 First Second Third Fourth Total Total revenue $ 6,757,428 $ 7,033,474 $ 7,902,033 $ 7,795,613 $ 29,488,548 Gross margin 925,141 1,519,680 1,580,543 898,367 4,923,731 Net (loss) income from continuing operations 447,820 84,272 (1,413,010 ) 381,201 (499,717 ) Net (loss) income from discontinued operations 131,985 112661 (64,636 ) (21,990 ) 158,020 Net (loss) income $ 579,805 $ 196,933 $ (1,477,646 ) $ 359,211 $ (341,697 ) Basic earnings (loss) per share Earnings (loss) from continuing operations $ 0.07 $ 0.01 $ (0.23 ) $ 0.06 $ (0.08 ) Earnings (loss) from discontinued operations 0.02 0.02 (0.01 ) - 0.02 Net Earnings $ 0.09 $ 0.03 $ (0.24 ) $ 0.06 $ (0.06 ) Diluted earnings (loss) per share Earnings (loss) from continuing operations $ 0.07 $ 0.01 $ (0.23 ) $ 0.06 $ (0.08 ) Earnings (loss) from discontinued operations 0.02 0.02 (0.01 ) - 0.02 Net Earnings $ 0.09 $ 0.03 $ (0.24 ) $ 0.06 $ (0.06 ) |
Note 18 - Costs Associated With
Note 18 - Costs Associated With Company-owned Store Closures | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | NOTE 18 Costs associated with Company-owned store asset disposals at February 28, 2023, 2022 2021 2023 2022 2021 Loss on distribution of assets $ - $ - $ 57,100 Total $ - $ - $ 57,100 |
Note 19 - Contested Solicitatio
Note 19 - Contested Solicitation Of Proxies and Change In Control Payments | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Contested Solicitation Of Proxies and Change In Control Payments [Text Block] | NOTE 19 Contested Solicitation of Proxies During FY 2023 2022, 2022 2021 2023, 2022 2021. Employment Agreement Payments upon a Change in Control As described above in Note 12, In connection with Mr. Dudley’s retirement in FY 2023, September 30, 2022 ( $70,000; December 31, 2022, February 28, 2023 During FY 2022 May 5, 2022 May 9, 2022. In connection therewith, the Company and Mr. Merryman entered into a letter agreement dated November 8, 2021 ( November 3, 2021 ( February 26, 2019, November 3, 2021, November 3, 2021 ( July 7, 2022 As a result of these Agreements the Company incurred the following costs during FY 2023 2022: 2023 2022 Severance compensation: $ 928,938 $ 1,344,813 Accelerated restricted stock unit compensation expense: 95,156 525,000 Consulting Services: 56,250 - Total $ 1,080,344 $ 1,869,813 These costs are recognized as general and administrative expense in the Consolidated Statement of Operations. |
Note 20 - Discontinued Operatio
Note 20 - Discontinued Operations | 12 Months Ended |
Feb. 28, 2023 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 20 On February 24, 2023 May 1, 2023 1 three 2 The following table discloses the results of operations of the businesses reported as discontinued operations for the years ended February 28, 2023, 2022 2021, FOR THE YEARS ENDED FEBRUARY 28, 2023 2022 2021 Total Revenue $ 3,128,368 $ 2,854,031 $ 1,717,524 Cost of sales 654,353 556,933 320,068 Operating Expenses 2,048,129 2,087,021 2,142,310 Other income (expense), net - (137 ) (108,380 ) Earnings (loss) from discontinued operations before income taxes 425,886 210,214 (636,474 ) Income tax provision (benefit) 618,308 52,194 (146,419 ) Earnings (loss) from discontinued operations, net of tax $ (192,422 ) $ 158,020 $ (490,055 ) The following table reflects the summary of assets and liabilities held for sale for U-Swirl as of February 28, 2023 2022, AS OF FEBRUARY 28, 2023 2022 Accounts and notes receivable, net $ 75,914 $ 62,078 Inventory, net 6,067 56,319 Other 1,023 8,467 Current assets held for sale 83,004 126,864 Property and equipment, net - 48,702 Franchise rights, net 1,708,336 2,078,066 Intangible assets, net 48,095 58,853 Deferred income taxes - 666,108 Other 9,415 34,061 Long-term assets held for sale 1,765,846 2,885,790 Total Assets Held for Sale 1,848,850 3,012,654 Accounts payable 125,802 83,909 Accrued compensation 11,205 49,312 Accrued liabilities 11,981 15,388 Contract liabilities 29,951 24,634 Current liabilities held for sale 178,939 173,243 Contract liabilities, less current portion 184,142 159,602 Long term liabilities held for sale 184,142 159,602 Total Liabilities Held for Sale $ 363,081 $ 332,845 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 28, 2023 | |
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), Aspen Leaf Yogurt, LLC (“ALY”), U-Swirl International, Inc. (“U-Swirl”), and U-Swirl, Inc. (“SWRL”) (collectively, the “Company” or “RMCF”). The Company is an international franchisor, confectionery manufacturer and retail operator. Founded in 1981, On February 24, 2023 three May 1, 2023, 2023 See Note 20 The Company’s revenues are currently derived from three In FY 2020 2021 1,000 2022 November 1, 2022, December 20, 2019 ( March 16, 2020 ( no December 20, 2019, December 20, 2019, March 16, 2020, 2023, 2022 2021 The following table summarizes the number of stores operating under the Rocky Mountain Chocolate Factory brand at February 28, 2023: Stores Open at 2/28/2022 Opened Closed Sold Stores Open at 2/28/2023 Sold, Not Yet Open Total Rocky Mountain Chocolate Factory Company-owned stores 2 - - (1 ) 1 - 1 Franchise stores - Domestic stores and kiosks 154 5 (7 ) 1 153 6 159 International license stores 5 - (1 ) - 4 1 5 Cold Stone Creamery - co-branded 97 7 (3 ) - 101 - 101 U-Swirl - co-branded 9 2 (1 ) - 10 - 10 Total 267 269 7 276 |
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. All intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three February 28, 2023. |
Receivable [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 a 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, 2023, February 28, 2022. December 2027 may March 1 2021, |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or net realizable value, which is adjusted for obsolete, damaged and excess inventories to the lower of cost or net realizable value based on actual differences. The inventory value is determined through analysis of items held in inventory, and, if the recorded value is higher than the net realizable value, the Company records an expense to reduce inventory to its actual net realizable 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, net realizable 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 ranges 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 basis 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. 382 14. |
Gift Card Breakage, Policy [Policy Text Block] | Gift Card Breakage The Company and its franchisees sell gift cards that are redeemable for product in 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 current liabilities in our balance sheets. There are no not may February 28, 2023 February 28, 2022, 2023 2022, |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill arose primarily from two 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 7 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets Intangible assets represent non-physical assets that create future economic value and are primarily composed of packaging design, store design, trademarks and non-competition agreements. Intangible assets are amortized on a straight line bases over a period ranging from 3 years to 20 years based on the expected future economic value of the intangible asset. Intangible assets are recorded at their cost. The Company performs intangible asset impairment testing on an annual basis or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not 7 |
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 [Policy Text Block] | Sales The Company has performance obligations to sell products to franchisees and other customers, and revenue is recognized at a point in time. Control is transferred when the order has been shipped to a customer, utilizing a third 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 The Company recognizes franchise fees over the term of the associated franchise agreement, which is generally a period of 10 years. In addition to the initial franchise fee, the Company also recognizes a marketing and promotion fee of one no ten |
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, and 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. |
Share-Based Payment Arrangement [Policy Text Block] | Stock-Based Compensation On February 28, 2023, one 2007 The Company recognized $651,016, $1,073,115, and $511,835 related to equity-based compensation expense during the years ended February 28, 2023, 2022 2021, During FY 2023, 2022, no 2023 2022. five six 2023 2022 2021. February 28, 2023 The Company did not February 28, 2023, February 28, 2022 no February 29, 2021. February 28 29, 2023, 2022 2021, During FY 2023, third February 28, 2023, February 28, 2025. February 2025 During FY 2023 2022 March 2025. 1, 12 19 |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per 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 2017, no The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not February 28, 2023, February 28, 2022, February 28, 2021, |
Advertising Cost [Policy Text Block] | Advertising and Promotional Expenses The Company expenses advertising costs as incurred. Total advertising expenses for RMCF amounted to $577,984, $210,103, and $265,285 for the fiscal years ended February 28, 2023, 2022 2021, |
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. All of the Company’s financial instruments are classified as level 1 2 not 3 |
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 |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Except as described below, management evaluated all activity of the Company through the issue date of the financial statements and concluded that no On May 1, 2023, 2023, three three February 24, 2023. May 1, 2023, See Note 20 8, On May 8, 2023 May 3, 2023 ( December 31, 2023, twenty-six November 2023, ( 18 not |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Number of Stores [Table Text Block] | Stores Open at 2/28/2022 Opened Closed Sold Stores Open at 2/28/2023 Sold, Not Yet Open Total Rocky Mountain Chocolate Factory Company-owned stores 2 - - (1 ) 1 - 1 Franchise stores - Domestic stores and kiosks 154 5 (7 ) 1 153 6 159 International license stores 5 - (1 ) - 4 1 5 Cold Stone Creamery - co-branded 97 7 (3 ) - 101 - 101 U-Swirl - co-branded 9 2 (1 ) - 10 - 10 Total 267 269 7 276 |
Note 2 - Supplemental Cash Fl_2
Note 2 - Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Cash paid (received) for: 2023 2022 2021 Interest $ 25,000 $ 5,202 $ 76,803 Income taxes (547,763 ) 240,890 (21,021 ) |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | Twelve Months Ended February 28: 2023 2022 Contract liabilities at the beginning of the year: $ 962,572 $ 958,177 Revenue recognized (204,657 ) (179,678 ) Contract fees received 185,500 206,000 Amortized gain on the financed sale of equipment - (21,927 ) Contract liabilities at the end of the year: $ 943,415 $ 962,572 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | 2024 $ 161,137 2025 146,194 2026 133,309 2027 119,878 2028 92,340 Thereafter 290,557 Total $ 943,415 |
Note 4 - Disaggregation of Re_2
Note 4 - Disaggregation of Revenue (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | For the Year Ended February 28, 2023 Revenues recognized over time: Franchising Manufacturing Retail Total Franchise fees $ 204,657 $ - $ - $ 204,657 Revenues recognized at a point in time: Franchising Manufacturing Retail Total Factory sales - 23,372,133 - 23,372,133 Retail sales - - 1,084,777 1,084,777 Royalty and marketing fees 5,770,785 - - 5,770,785 Total $ 5,975,442 $ 23,372,133 $ 1,084,777 $ 30,432,352 For the Year Ended February 28, 2022 Revenues recognized over time: Franchising Manufacturing Retail Total Franchise fees $ 179,678 $ - $ - $ 179,678 Revenues recognized at a point in time: Franchising Manufacturing Retail Total Factory sales - 22,374,175 - 22,374,175 Retail sales - - 1,160,295 1,160,295 Royalty and marketing fees 5,774,400 - - 5,774,400 Total $ 5,954,078 $ 22,374,175 $ 1,160,295 $ 29,488,548 For the Year Ended February 28, 2021 Revenues recognized over time: Franchising Manufacturing Retail Total Franchise fees $ 178,042 $ - $ - $ 178,042 Revenues recognized at a point in time: Franchising Manufacturing Retail Total Factory sales - 17,321,001 - 17,321,001 Retail sales - - 896,793 896,793 Royalty and marketing fees 3,367,345 - - 3,367,345 Total $ 3,545,387 $ 17,321,001 $ 896,793 $ 21,763,181 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2023 2022 Ingredients and supplies $ 2,481,510 $ 2,753,068 Finished candy 1,567,887 2,168,084 Reserve for slow moving inventory (409,617 ) (623,269 ) Total inventories $ 3,639,780 $ 4,297,883 |
Note 6 - Property and Equipme_2
Note 6 - Property and Equipment, Net (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2023 2022 Land $ 513,618 $ 513,618 Building 5,151,886 5,148,854 Machinery and equipment 10,152,211 9,582,157 Furniture and fixtures 512,172 533,836 Leasehold improvements 134,010 169,683 Transportation equipment 476,376 479,701 16,940,273 16,427,849 Less accumulated depreciation (11,229,534 ) (10,976,661 ) Property and equipment, net $ 5,710,739 $ 5,451,188 |
Note 7 - Goodwill and Intangi_2
Note 7 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | 2023 2022 Amortization Period (in Years) Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Intangible assets subject to amortization Store design 10 $ 394,826 $ 259,314 $ 394,826 $ 240,409 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 - 20 259,339 128,924 259,339 118,924 Total 1,205,968 940,041 1,205,968 911,136 Goodwill and intangible assets not subject to amortization Franchising segment Company stores goodwill $ 360,972 $ 515,065 Franchising goodwill 97,318 97,318 Manufacturing segment-goodwill 97,318 97,318 Trademark 20,000 20,000 Total 575,608 729,701 Total Goodwill and Intangible Assets $ 1,781,576 $ 940,041 $ 1,935,669 $ 911,136 |
Schedule of Goodwill [Table Text Block] | Retail Segment Balance as of February 28, 2022 Goodwill $ 515,065 Impairment losses (84,183 ) Goodwill written off related to sales of Company-owned stores (69,910 ) Balance as of February 28, 2023 $ 360,972 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 2024 28,030 2025 27,405 2026 27,405 2027 27,405 2028 27,405 Thereafter 128,277 Total $ 265,927 |
Note 8 - Impairment of Long-l_2
Note 8 - Impairment of Long-lived and Intangible Assets (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Details of Impairment of Long-Lived Assets Held and Used by Asset [Table Text Block] | 2023 2022 2021 Company store goodwill impairment $ 84,183 $ 0 $ 317,243 Trademark intangible asset impairment - - 159,000 Company-owned store impairment of long-lived assets - - 57,100 Total $ 84,183 $ 0 $ 533,343 |
Note 10 - Stock Compensation _2
Note 10 - Stock Compensation Plans (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
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 amendments: 600,000 Available for award: 985,340 Cancelled/forfeited: 244,647 Shares awarded as unrestricted shares, stock options or restricted stock units: (1,066,781 ) Shares available for award: 163,206 |
Share-Based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | Twelve Months Ended February 28: 2023 2022 2021 Outstanding non-vested restricted stock units at beginning of year: 105,978 209,450 265,555 Granted 129,092 26,058 - Vested (70,782 ) (127,130 ) (54,761 ) Cancelled/forfeited (10,157 ) (2,400 ) (1,344 ) Outstanding non-vested restricted stock units as of February 28: 154,131 105,978 209,450 Weighted average grant date fair value $ 5.23 $ 9.33 $ 9.40 Weighted average remaining vesting period (in years) 1.73 2.26 3.68 Twelve Months Ended February 28: 2023 2022 2021 Outstanding stock options at beginning of year: - - - Granted 36,144 - - Exercised - - - Cancelled/forfeited - - - Outstanding stock options as of February 28 or 29: 36,144 - - Weighted average exercise price 6.49 n/a n/a Weighted average remaining contractual term (in years) 9.26 n/a n/a |
Note 11 - Leasing Arrangements
Note 11 - Leasing Arrangements (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | 2023 2022 2021 Minimum rentals $ 106,203 $ 136,125 $ 189,696 Less sublease rentals (39,186 ) (60,254 ) (113,515 ) Contingent rentals 30,600 22,800 10,800 $ 97,617 $ 98,671 $ 86,981 2023 2022 2021 351,738 270,767 340,731 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities 572,079 563,264 530,137 |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | FYE 24 $ 760,952 FYE 25 611,988 FYE 26 514,346 FYE 27 242,558 FYE 28 71,671 Thereafter 390,450 Total $ 2,591,965 Less: Imputed interest (205,442 ) Present value of lease liabilities: $ 2,386,523 |
Note 14 - Income Taxes (Tables)
Note 14 - Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2023 2022 2021 Current Federal $ (116,792 ) $ 204,058 $ (294,368 ) State 8,472 46,704 44,643 Total Current (108,320 ) 250,762 (249,725 ) Deferred Federal 621,841 (231,430 ) (425,580 ) State 100,322 (36,144 ) (70,190 ) Total Deferred 722,163 (267,574 ) (495,770 ) Total $ 613,843 $ (16,812 ) $ (745,495 ) 2023 2022 2021 Continuing operations $ 613,843 $ (16,812 ) $ (745,495 ) Discontinued operations 618,308 52,194 (146,419 ) Total tax provision (benefit) $ 1,232,151 $ 35,382 $ (891,914 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2023 2022 2021 Statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.9 % 3.8 % 4.3 % Paycheck Protection Program debt forgiveness 0.0 % 0.0 % 28.7 % Work opportunity tax credits 0.0 % (1.2 )% 0.3 % Equity compensation tax expense (0.7 )% (8.2 )% (2.5 )% Compensation and benefits permanent differences (3.2 )% (1.9 )% 0.0 % Other 0.7 % 0.1 % 0.6 % Valuation allowance (33.3 )% 0.0 % 0.0 % Impact of CARES act 0.0 % (10.3 )% 12.1 % Effective tax rate (12.6 )% 3.3 % 64.5 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2023 2022 Deferred Tax Assets Allowance for doubtful accounts and notes $ 182,031 $ 225,515 Inventories 100,725 153,262 Accrued compensation 158,652 429,076 Loss provisions and deferred income 340,652 379,069 Self-insurance accrual 24,098 27,049 Amortization - - Restructuring charges 98,693 98,693 Accumulated net losses 1,669,288 445,560 Valuation allowance (1,721,306 ) (98,693 ) Net deferred tax assets $ 852,833 $ 1,659,531 Deferred Tax Liabilities Depreciation and amortization (771,593 ) (860,318 ) Prepaid expenses (81,240 ) (77,050 ) Deferred Tax Liabilities (852,833 ) (937,368 ) Net deferred tax assets $ - $ 722,163 |
Summary of Valuation Allowance [Table Text Block] | 2023 2022 Valuation allowance at beginning of period $ 98,693 $ 98,693 Tax expense realized by valuation allowance 1,622,613 - Valuation allowance at end of period $ 1,721,306 $ 98,693 |
Note 16 - Operating Segments (T
Note 16 - Operating Segments (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | FY 2023 Franchising Manufacturing Retail Other Total Total revenues $ 5,980,945 $ 24,628,317 $ 1,084,777 $ - $ 31,694,039 Intersegment revenues (5,503 ) (1,256,184 ) - - (1,261,687 ) Revenue from external customers 5,975,442 23,372,133 1,084,777 - 30,432,352 Segment profit (loss) 2,601,485 2,832,307 130,880 (10,439,185 ) (4,874,513 ) Total assets 1,245,331 9,792,491 442,977 10,506,028 21,986,827 Capital expenditures 17,129 899,219 5,413 78,254 1,000,015 Total depreciation & amortization $ 34,301 $ 652,405 $ 5,845 $ 72,712 $ 765,263 FY 2022 Franchising Manufacturing Retail Other Total Total revenues $ 5,959,624 $ 23,442,371 $ 1,160,295 $ - $ 30,562,290 Intersegment revenues (5,546 ) (1,068,196 ) - - (1,073,742 ) Revenue from external customers 5,954,078 22,374,175 1,160,295 - 29,488,548 Segment profit (loss) 2,862,263 3,863,460 75,962 (7,318,214 ) (516,529 ) Total assets 1,160,343 10,023,716 625,850 15,070,852 26,880,761 Capital expenditures 1,832 797,178 3,688 138,629 941,327 Total depreciation & amortization $ 36,625 $ 627,071 $ 5,635 $ 70,844 $ 740,175 FY 2021 Franchising Manufacturing Retail Other Total Total revenues $ 3,549,055 $ 18,316,165 $ 896,793 $ - $ 22,762,013 Intersegment revenues (3,668 ) (995,164 ) - - (998,832 ) Revenue from external customers 3,545,387 17,321,001 896,793 - 21,763,181 Segment profit (loss) 846,039 1,422,491 (309,799 ) (3,113,948 ) (1,155,217 ) Total assets 1,338,990 9,330,194 634,124 13,647,844 24,951,152 Capital expenditures 150 103,003 4,505 41,859 149,517 Total depreciation & amortization $ 42,579 $ 642,806 $ 14,150 $ 78,912 $ 778,447 |
Note 17 - Summarized Quarterl_2
Note 17 - Summarized Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | Fiscal Quarter 2023 First Second Third Fourth Total Total revenue $ 6,902,198 $ 6,557,356 $ 8,825,093 $ 8,147,705 $ 30,432,352 Gross margin 881,699 1,181,806 1,859,186 78,846 4,001,537 Net (loss) income from continuing operations (285,767 ) (3,152,491 ) (196,157 ) (1,853,941 ) (5,488,356 ) Net (loss) income from discontinued operations 170,826 (488,695) (15,822 ) 141,269 (192,422 ) Net (loss) income $ (114,941 ) $ (3,641,186 ) $ (211,979 ) $ (1,712,672 ) $ (5,680,778 ) Basic earnings (loss) per share Earnings (loss) from continuing operations $ (0.05 ) $ (0.51 ) $ (0.03 ) $ (0.29 ) $ (0.88 ) Earnings (loss) from discontinued operations 0.03 (.08 ) - 0.02 (.03 ) Net Earnings $ (0.02 ) $ (0.59 ) $ (0.03 ) $ (0.27 ) $ (0.91 ) Diluted earnings (loss) per share Earnings (loss) from continuing operations $ (0.05 ) $ (0.51 ) $ (0.03 ) $ (0.29 ) $ (0.88 ) Earnings (loss) from discontinued operations 0.03 (.08 ) - 0.02 (.03 ) Net Earnings $ (0.02 ) $ (0.59 ) $ (0.03 ) $ (0.27 ) $ (0.91 ) Fiscal Quarter 2022 First Second Third Fourth Total Total revenue $ 6,757,428 $ 7,033,474 $ 7,902,033 $ 7,795,613 $ 29,488,548 Gross margin 925,141 1,519,680 1,580,543 898,367 4,923,731 Net (loss) income from continuing operations 447,820 84,272 (1,413,010 ) 381,201 (499,717 ) Net (loss) income from discontinued operations 131,985 112661 (64,636 ) (21,990 ) 158,020 Net (loss) income $ 579,805 $ 196,933 $ (1,477,646 ) $ 359,211 $ (341,697 ) Basic earnings (loss) per share Earnings (loss) from continuing operations $ 0.07 $ 0.01 $ (0.23 ) $ 0.06 $ (0.08 ) Earnings (loss) from discontinued operations 0.02 0.02 (0.01 ) - 0.02 Net Earnings $ 0.09 $ 0.03 $ (0.24 ) $ 0.06 $ (0.06 ) Diluted earnings (loss) per share Earnings (loss) from continuing operations $ 0.07 $ 0.01 $ (0.23 ) $ 0.06 $ (0.08 ) Earnings (loss) from discontinued operations 0.02 0.02 (0.01 ) - 0.02 Net Earnings $ 0.09 $ 0.03 $ (0.24 ) $ 0.06 $ (0.06 ) |
Note 18 - Costs Associated Wi_2
Note 18 - Costs Associated With Company-owned Store Closures (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | 2023 2022 2021 Loss on distribution of assets $ - $ - $ 57,100 Total $ - $ - $ 57,100 |
Note 19 - Contested Solicitat_2
Note 19 - Contested Solicitation Of Proxies and Change In Control Payments (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Schedule of Deferred Compensation Arrangement with Individual [Table Text Block] | 2023 2022 Severance compensation: $ 928,938 $ 1,344,813 Accelerated restricted stock unit compensation expense: 95,156 525,000 Consulting Services: 56,250 - Total $ 1,080,344 $ 1,869,813 |
Note 20 - Discontinued Operat_2
Note 20 - Discontinued Operations (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | FOR THE YEARS ENDED FEBRUARY 28, 2023 2022 2021 Total Revenue $ 3,128,368 $ 2,854,031 $ 1,717,524 Cost of sales 654,353 556,933 320,068 Operating Expenses 2,048,129 2,087,021 2,142,310 Other income (expense), net - (137 ) (108,380 ) Earnings (loss) from discontinued operations before income taxes 425,886 210,214 (636,474 ) Income tax provision (benefit) 618,308 52,194 (146,419 ) Earnings (loss) from discontinued operations, net of tax $ (192,422 ) $ 158,020 $ (490,055 ) AS OF FEBRUARY 28, 2023 2022 Accounts and notes receivable, net $ 75,914 $ 62,078 Inventory, net 6,067 56,319 Other 1,023 8,467 Current assets held for sale 83,004 126,864 Property and equipment, net - 48,702 Franchise rights, net 1,708,336 2,078,066 Intangible assets, net 48,095 58,853 Deferred income taxes - 666,108 Other 9,415 34,061 Long-term assets held for sale 1,765,846 2,885,790 Total Assets Held for Sale 1,848,850 3,012,654 Accounts payable 125,802 83,909 Accrued compensation 11,205 49,312 Accrued liabilities 11,981 15,388 Contract liabilities 29,951 24,634 Current liabilities held for sale 178,939 173,243 Contract liabilities, less current portion 184,142 159,602 Long term liabilities held for sale 184,142 159,602 Total Liabilities Held for Sale $ 363,081 $ 332,845 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations and Summary of Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |||||
May 08, 2023 | May 01, 2023 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | Mar. 28, 2022 | |
Cash, Uninsured Amount | $ 4.2 | |||||
Financing Receivable, before Allowance for Credit Loss | 191,725 | $ 120,967 | ||||
Financing Receivable, Allowance for Credit Loss | 73,951 | 112,287 | ||||
Accounts Receivable, after Allowance for Credit Loss, Current | 2,055,694 | 1,905,836 | $ 1,952,147 | |||
Gift Card, Liability, Current | 592,932 | 574,883 | ||||
Gift Card Liability, Breakage | 59,754 | 89,525 | ||||
Share-Based Payment Arrangement, Expense | $ 651,016 | $ 1,073,115 | $ 511,835 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 36,144 | 0 | 0 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 6.49 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 12,499 | 66,667 | ||||
Share-Based Payment Arrangement, Accelerated Cost | $ 95,156 | $ 525,000 | ||||
Subsequent Event [Member] | ||||||
Consulting Services Cost | $ 22,000 | |||||
Payment for Other Postretirement Benefits | $ 12,500 | |||||
USwirl Inc [Member] | Subsequent Event [Member] | ||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 2,750,000 | |||||
Proceeds from Sales of Business, Affiliate and Productive Assets | 1,750,000 | |||||
Notes Receivable, Fair Value Disclosure | $ 1,000,000 | |||||
Rocky Mountain Chocolate Factory [Member] | ||||||
Advertising Expense | $ 577,984 | $ 210,103 | $ 265,285 | |||
Warrant [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 960,677 | 960,677 | 960,677 | |||
Unvested Restricted Stock Units [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 137,294 | 147,422 | 217,103 | |||
Chief Executive Officer [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 36,144 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Aggregate Grant Date Fair Value | $ 77,267 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 2.14 | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Payment Arrangement, Expense | $ 651,016 | $ 1,026,505 | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 129,092 | 26,058 | 0 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 511,835 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 5.23 | $ 9.33 | $ 9.40 | |||
Restricted Stock Units (RSUs) [Member] | Subsequent Event [Member] | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | 8,332 | |||||
Restricted Stock Units (RSUs) [Member] | Annual Vesting [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Per Quarter | 5% | |||||
Performance Shares [Member] | Chief Executive Officer [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Aggregate Grant Date Fair Value | $ 298,582 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 47,446 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 6.29 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Shares, Targert Number, Percentage | 12.50% | |||||
Performance Shares [Member] | Vesting on Last Day of Current Fiscal Year Ending [Member] | Chief Executive Officer [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Rights, Percentage | 1% | |||||
Share-Based Payment Arrangement, Nonemployee [Member] | ||||||
Share-Based Payment Arrangement, Expense | $ 0 | $ 46,610 | $ 0 | |||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares) | 0 | 9,000 | ||||
Share-Based Payment Arrangement, Nonemployee [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares) | 34,200 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Aggregate Grant Date Fair Value | $ 194,940 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 26,058 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Grant Date Fair Value, Amount | $ 221,496 | |||||
Share-Based Payment Arrangement, Employee [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 628,966 | |||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 8 months 12 days | |||||
Minimum [Member] | ||||||
Financing Receivable Interest Rate | 4.50% | |||||
Property, Plant and Equipment, Useful Life (Year) | 5 years | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 3 years | |||||
Franchise Fee Rate | 1% | |||||
Minimum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 5 years | |||||
Minimum [Member] | Restricted Stock [Member] | Annual Vesting [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Per Quarter | 17% | |||||
Minimum [Member] | Performance Shares [Member] | Chief Executive Officer [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Shares, Targert Number, Percentage | 0% | |||||
Minimum [Member] | Franchise Rights [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||
Maximum [Member] | ||||||
Financing Receivable Interest Rate | 7% | |||||
Property, Plant and Equipment, Useful Life (Year) | 39 years | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 20 years | |||||
Franchise Fee Rate | 10% | |||||
Maximum [Member] | Subsequent Event [Member] | ||||||
Legal Fees | $ 7,500 | |||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year) | 6 years | |||||
Maximum [Member] | Restricted Stock Units (RSUs) [Member] | Annual Vesting [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage, Per Quarter | 20% | |||||
Maximum [Member] | Performance Shares [Member] | Chief Executive Officer [Member] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares) | 94,892 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Performance Shares, Targert Number, Percentage | 200% | |||||
Edible [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 557,000 | $ 1,700,000 | $ 3,500,000 | |||
Percentage of Revenue | 1.80% | 5.80% | 16.10% |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations and Basis of Presentation - Number of Stores (Details) | Feb. 28, 2023 |
Number of stores | 276 |
Number of stores | (276) |
Stores Opened at 2/28/2022 [Member] | |
Number of stores | 267 |
Number of stores | (267) |
Open [Member] | |
Number of stores | |
Number of stores | |
Closed [Member] | |
Number of stores | |
Number of stores | |
Sold [Member] | |
Number of stores | |
Number of stores | |
Stores Opened at 2/28/23 [Member] | |
Number of stores | 269 |
Number of stores | (269) |
Sold Not Yet Open [Member] | |
Number of stores | 7 |
Number of stores | (7) |
Company Owned Stores [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Number of stores | (1) |
Company Owned Stores [Member] | Stores Opened at 2/28/2022 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 2 |
Number of stores | (2) |
Company Owned Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
Company Owned Stores [Member] | Closed [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
Company Owned Stores [Member] | Sold [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Number of stores | (1) |
Company Owned Stores [Member] | Stores Opened at 2/28/23 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Number of stores | (1) |
Company Owned Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
Franchise Stores - Domestic Stores and Kiosks [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 159 |
Number of stores | (159) |
Franchise Stores - Domestic Stores and Kiosks [Member] | Stores Opened at 2/28/2022 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 154 |
Number of stores | (154) |
Franchise Stores - Domestic Stores and Kiosks [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 5 |
Number of stores | (5) |
Franchise Stores - Domestic Stores and Kiosks [Member] | Closed [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 7 |
Number of stores | (7) |
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Number of stores | (1) |
Franchise Stores - Domestic Stores and Kiosks [Member] | Stores Opened at 2/28/23 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 153 |
Number of stores | (153) |
Franchise Stores - Domestic Stores and Kiosks [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 6 |
Number of stores | (6) |
International License Stores [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 5 |
Number of stores | (5) |
International License Stores [Member] | Stores Opened at 2/28/2022 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 5 |
Number of stores | (5) |
International License Stores [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
International License Stores [Member] | Closed [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Number of stores | (1) |
International License Stores [Member] | Sold [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
International License Stores [Member] | Stores Opened at 2/28/23 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 4 |
Number of stores | (4) |
International License Stores [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Number of stores | (1) |
Cold Stone Creamery - Co-Branded [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 101 |
Number of stores | (101) |
Cold Stone Creamery - Co-Branded [Member] | Stores Opened at 2/28/2022 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 97 |
Number of stores | (97) |
Cold Stone Creamery - Co-Branded [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 7 |
Number of stores | (7) |
Cold Stone Creamery - Co-Branded [Member] | Closed [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 3 |
Number of stores | (3) |
Cold Stone Creamery - Co-Branded [Member] | Sold [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
Cold Stone Creamery - Co-Branded [Member] | Stores Opened at 2/28/23 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 101 |
Number of stores | (101) |
Cold Stone Creamery - Co-Branded [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
USwirl Inc [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 10 |
Number of stores | (10) |
USwirl Inc [Member] | Stores Opened at 2/28/2022 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 9 |
Number of stores | (9) |
USwirl Inc [Member] | Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 2 |
Number of stores | (2) |
USwirl Inc [Member] | Closed [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 1 |
Number of stores | (1) |
USwirl Inc [Member] | Sold [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
USwirl Inc [Member] | Stores Opened at 2/28/23 [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 10 |
Number of stores | (10) |
USwirl Inc [Member] | Sold Not Yet Open [Member] | Rocky Mountain Chocolate Factory [Member] | |
Number of stores | 0 |
Number of stores | 0 |
Note 2 - Supplemental Cash Fl_3
Note 2 - Supplemental Cash Flow Information - Supplemental Cash Flow Information (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Interest | $ 25,000 | $ 5,202 | $ 76,803 |
Income taxes | $ (547,763) | $ 240,890 | $ (21,021) |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts With Customers (Details Textual) | 12 Months Ended |
Feb. 28, 2023 | |
Customers Contracts, Term (Year) | 10 years |
Maximum [Member] | |
Customers Contracts, Term (Year) | 20 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 ($) | 12 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Contract liabilities at the beginning of the year: | $ 962,572 | $ 958,177 |
Revenue recognized | (204,657) | (179,678) |
Contract fees received | 185,500 | 206,000 |
Amortized gain on the financed sale of equipment | 0 | (21,927) |
Contract liabilities at the end of the year: | $ 943,415 | $ 962,572 |
Note 3 - Revenue From Contrac_5
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation (Details) | Feb. 28, 2023 USD ($) |
Revenue, remaining performance obligation, amount | $ 943,415 |
Note 3 - Revenue From Contrac_6
Note 3 - Revenue From Contracts With Customers - Remaining Performance Obligation 2 (Details) | Feb. 28, 2023 USD ($) |
Revenue, remaining performance obligation, amount | $ 943,415 |
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 | $ 161,137 |
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 | $ 146,194 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 133,309 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 119,878 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 92,340 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-03-01 | |
Revenue, remaining performance obligation, period (Year) | 1 year |
Revenue, remaining performance obligation, amount | $ 290,557 |
Note 4 - Disaggregation of Re_3
Note 4 - Disaggregation of Revenue - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenues | $ 30,432,352 | $ 29,488,548 | $ 21,763,181 |
Franchising [Member] | |||
Revenues | 5,975,442 | 5,954,078 | 3,545,387 |
Franchising [Member] | Transferred at Point in Time [Member] | |||
Revenues | 5,975,442 | 5,954,078 | 3,545,387 |
Franchising [Member] | Factory Sales [Member] | Transferred at Point in Time [Member] | |||
Revenues | 0 | 0 | 0 |
Franchising [Member] | Retail [Member] | Transferred at Point in Time [Member] | |||
Revenues | 0 | 0 | 0 |
Franchising [Member] | Franchise Fees [Member] | Transferred over Time [Member] | |||
Revenues | 204,657 | 179,678 | 178,042 |
Franchising [Member] | Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||
Revenues | 5,770,785 | 5,774,400 | 3,367,345 |
Manufacturing [Member] | |||
Revenues | 23,372,133 | 22,374,175 | 17,321,001 |
Manufacturing [Member] | Transferred at Point in Time [Member] | |||
Revenues | 23,372,133 | 22,374,175 | 17,321,001 |
Manufacturing [Member] | Factory Sales [Member] | Transferred at Point in Time [Member] | |||
Revenues | 23,372,133 | 22,374,175 | 17,321,001 |
Manufacturing [Member] | Retail [Member] | Transferred at Point in Time [Member] | |||
Revenues | 0 | 0 | 0 |
Manufacturing [Member] | Franchise Fees [Member] | Transferred over Time [Member] | |||
Revenues | 0 | 0 | 0 |
Manufacturing [Member] | Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||
Revenues | 0 | 0 | 0 |
Retail Segment [Member] | |||
Revenues | 1,084,777 | 1,160,295 | 896,793 |
Retail Segment [Member] | Transferred at Point in Time [Member] | |||
Revenues | 1,084,777 | 1,160,295 | 896,793 |
Retail Segment [Member] | Factory Sales [Member] | Transferred at Point in Time [Member] | |||
Revenues | 0 | 0 | 0 |
Retail Segment [Member] | Retail [Member] | Transferred at Point in Time [Member] | |||
Revenues | 1,084,777 | 1,160,295 | 896,793 |
Retail Segment [Member] | Franchise Fees [Member] | Transferred over Time [Member] | |||
Revenues | 0 | 0 | 0 |
Retail Segment [Member] | Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||
Revenues | 0 | 0 | 0 |
USwirl Inc [Member] | Transferred at Point in Time [Member] | |||
Revenues | 30,432,352 | 29,488,548 | 21,763,181 |
USwirl Inc [Member] | Factory Sales [Member] | Transferred at Point in Time [Member] | |||
Revenues | 23,372,133 | 22,374,175 | 17,321,001 |
USwirl Inc [Member] | Retail [Member] | Transferred at Point in Time [Member] | |||
Revenues | 1,084,777 | 1,160,295 | 896,793 |
USwirl Inc [Member] | Franchise Fees [Member] | Transferred over Time [Member] | |||
Revenues | 204,657 | 179,678 | 178,042 |
USwirl Inc [Member] | Royalty and Marketing Fees [Member] | Transferred at Point in Time [Member] | |||
Revenues | $ 5,770,785 | $ 5,774,400 | $ 3,367,345 |
Note 5 - Inventories - Inventor
Note 5 - Inventories - Inventories (Details) - USD ($) | Feb. 28, 2023 | Feb. 28, 2022 |
Ingredients and supplies | $ 2,481,510 | $ 2,753,068 |
Finished candy | 1,567,887 | 2,168,084 |
Reserve for slow moving inventory | (409,617) | (623,269) |
Total inventories | $ 3,639,780 | $ 4,297,883 |
Note 6 - Property and Equipme_3
Note 6 - Property and Equipment, Net (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Depreciation | $ 736,358 | $ 710,804 | $ 751,396 |
Note 6 - Property and Equipme_4
Note 6 - Property and Equipment, Net - Property and Equipment (Details) - USD ($) | Feb. 28, 2023 | Feb. 28, 2022 |
Property, plant and equipment, gross | $ 16,940,273 | $ 16,427,849 |
Less accumulated depreciation | (11,229,534) | (10,976,661) |
Property and equipment, net | 5,710,739 | 5,451,188 |
Land [Member] | ||
Property, plant and equipment, gross | 513,618 | 513,618 |
Building [Member] | ||
Property, plant and equipment, gross | 5,151,886 | 5,148,854 |
Machinery and Equipment [Member] | ||
Property, plant and equipment, gross | 10,152,211 | 9,582,157 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 512,172 | 533,836 |
Leasehold Improvements [Member] | ||
Property, plant and equipment, gross | 134,010 | 169,683 |
Transportation Equipment [Member] | ||
Property, plant and equipment, gross | $ 476,376 | $ 479,701 |
Note 7 - Goodwill and Intangi_3
Note 7 - Goodwill and Intangible Assets - Indefinite-lived Intangible Assets (Details) - USD ($) | Feb. 28, 2023 | Feb. 28, 2022 |
Intangible assets subject to amortization, gross carrying value | $ 1,205,968 | $ 1,205,968 |
Intangible assets subject to amortization, accumulated amortization | 940,041 | 911,136 |
Intangible assets not subject to amortization, gross carrying value | 575,608 | 729,701 |
Total Goodwill and Intangible Assets | 1,781,576 | 1,935,669 |
Total Goodwill and Intangible Assets | 940,041 | 911,136 |
Company Stores Goodwill [Member] | ||
Intangible assets not subject to amortization, gross carrying value | 360,972 | 515,065 |
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 |
Minimum [Member] | ||
Amortization Period (Year) | 3 years | |
Maximum [Member] | ||
Amortization Period (Year) | 20 years | |
Store Design [Member] | ||
Amortization Period (Year) | 10 years | |
Intangible assets subject to amortization, gross carrying value | $ 394,826 | 394,826 |
Intangible assets subject to amortization, accumulated amortization | 259,314 | 240,409 |
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 | 259,339 | 259,339 |
Intangible assets subject to amortization, accumulated amortization | $ 128,924 | $ 118,924 |
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 |
Note 7 - Goodwill and Intangi_4
Note 7 - Goodwill and Intangible Assets - Changes to Goodwill (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Goodwill | $ 729,701 | ||
Impairment losses | (84,183) | $ 0 | $ (317,243) |
Goodwill | 575,608 | 729,701 | |
Company Stores Goodwill [Member] | |||
Goodwill | 515,065 | ||
Impairment losses | (84,183) | ||
Goodwill written off related to sales of Company-owned stores | (69,910) | ||
Goodwill | $ 360,972 | $ 515,065 |
Note 7 - Goodwill and Intangi_5
Note 7 - Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) | Feb. 28, 2023 USD ($) |
2024 | $ 28,030 |
2025 | 27,405 |
2026 | 27,405 |
2027 | 27,405 |
2028 | 27,405 |
Thereafter | 128,277 |
Total | $ 265,927 |
Note 8 - Impairment of Long-l_3
Note 8 - Impairment of Long-lived and Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
May 31, 2020 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Asset Impairment Charges | $ 84,183 | $ 0 | $ 533,343 | |
General and Administrative Expense [Member] | COVID-19 Pandemic [Member] | ||||
Asset Impairment Charges | $ 533,000 | $ 84,000 |
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) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Company store goodwill impairment | $ 84,183 | $ 0 | $ 317,243 |
Trademark intangible asset impairment | 0 | 0 | 159,000 |
Company-owned store impairment of long-lived assets | 0 | 0 | 57,100 |
Total | $ 84,183 | $ 0 | $ 533,343 |
Note 9 - Notes Payable and Re_2
Note 9 - Notes Payable and Revolving Credit Line (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Proceeds from Notes Payable | $ 0 | $ 0 | $ 1,429,500 |
Line of Credit [Member] | Wells Fargo Bank [Member] | |||
Proceeds from Notes Payable | 1,400,000 | ||
Forgiveness of Indebtedness | 1,400,000 | ||
Long-term Line of Credit, Total | 5,000,000 | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 5,000,000 | ||
Line of Credit [Member] | Wells Fargo Bank [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.37% | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.92% |
Note 10 - Stock Compensation _3
Note 10 - Stock Compensation Plans - Summarizes Stock Awards (Details) | 12 Months Ended |
Feb. 28, 2023 shares | |
Additional shares authorized through 2007 Plan amendments: (in shares) | 600,000 |
2007 Equity Incentive Plan [Member | |
Original share authorization: (in shares) | 300,000 |
Prior plan shares authorized and incorporated in the 2007 Plan: (in shares) | 85,340 |
Available for award: (in shares) | 985,340 |
Cancelled/forfeited: (in shares) | 244,647 |
Shares awarded as unrestricted shares, stock options or restricted stock units: (in shares) | (1,066,781) |
Shares available for award: (in shares) | 163,206 |
Note 10 - Stock Compensation _4
Note 10 - Stock Compensation Plans - Restricted Stock Unit Awards Outstanding Under the Plans (Details) - $ / shares | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Outstanding non-vested restricted stock units at beginning of year: (in shares) | 0 | 0 | 0 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 36,144 | 0 | 0 |
Vested (in shares) | 0 | 0 | 0 |
Cancelled/forfeited (in shares) | 0 | 0 | 0 |
Outstanding non-vested restricted stock units as of February 28: (in shares) | 36,144 | 0 | 0 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 6.49 | ||
Exercised (in shares) | 0 | 0 | 0 |
Weighted average remaining contractual term (in years) (in shares) | 9.26 | ||
Restricted Stock Units (RSUs) [Member] | |||
Outstanding non-vested restricted stock units at beginning of year: (in shares) | 105,978 | 209,450 | 265,555 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 129,092 | 26,058 | 0 |
Vested (in shares) | (70,782) | (127,130) | (54,761) |
Cancelled/forfeited (in shares) | (10,157) | (2,400) | (1,344) |
Outstanding non-vested restricted stock units as of February 28: (in shares) | 154,131 | 105,978 | 209,450 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share) | $ 5.23 | $ 9.33 | $ 9.40 |
Weighted average remaining vesting period (Year) | 1 year 8 months 23 days | 2 years 3 months 3 days | 3 years 8 months 4 days |
Exercised (in shares) | 70,782 | 127,130 | 54,761 |
Note 11 - Leasing Arrangement_2
Note 11 - Leasing Arrangements (Details Textual) - USD ($) | Feb. 28, 2023 | Nov. 30, 2022 | Feb. 28, 2022 | Feb. 28, 2021 | Mar. 01, 2019 |
Operating Lease, Liability | $ 2,386,523 | ||||
Operating Lease, Weighted Average Discount Rate, Percent | 3.40% | 3.10% | 3.40% | ||
Lessee, Operating Lease, Liability, to be Paid | $ 2,591,965 | ||||
Operating Lease, Weighted Average Remaining Lease Term (Year) | 5 years 6 months | 6 years 8 months 12 days | 6 years 10 months 24 days | ||
Leases for Equipment [Member] | |||||
Lessee, Operating Lease, Liability, to be Paid | $ 2.6 | ||||
Warehouse Space [Member] | |||||
Lessee, Operating Lease, Liability, to be Paid | $ 1,472,667 | $ 588,475 | $ 0 | ||
Accounting Standards Update 2016-02 [Member] | |||||
Operating Lease, Liability | $ 3.3 | ||||
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 11 - Leasing Arrangement_3
Note 11 - Leasing Arrangements - Lease Expense (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Retail operating lease expense | $ 351,738 | $ 270,767 | $ 340,731 |
Cash paid for amounts included in the measurement of lease liabilities | 572,079 | 563,264 | 530,137 |
Retail Leases [Member] | |||
Minimum rentals | 106,203 | 136,125 | 189,696 |
Less sublease rentals | (39,186) | (60,254) | (113,515) |
Contingent rentals | 30,600 | 22,800 | 10,800 |
Retail operating lease expense | $ 97,617 | $ 98,671 | $ 86,981 |
Note 11 - Leasing Arrangement_4
Note 11 - Leasing Arrangements - Maturities of Lease Liabilities for Operating Leases (Details) | Feb. 28, 2023 USD ($) |
FYE 24 | $ 760,952 |
FYE 25 | 611,988 |
FYE 26 | 514,346 |
FYE 27 | 242,558 |
FYE 28 | 71,671 |
Thereafter | 390,450 |
Total | 2,591,965 |
Less: Imputed interest | (205,442) |
Operating Lease, Liability | $ 2,386,523 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Nov. 30, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Executive Salary, Bonus | $ 18,000 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 12,499 | 66,667 | ||
Contractual Obligation | $ 384,000 | |||
Minimum [Member] | ||||
Purchase Contracts, Term (Month) | 6 months | |||
Maximum [Member] | ||||
Purchase Contracts, Term (Month) | 18 months | |||
Former Senior Vice President, Sales and Marketing [Member] | ||||
Payments for Postemployment Benefits | $ 70,000 | |||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 56,250 | |||
Restricted Stock Units (RSUs) [Member] | Former Senior Vice President, Sales and Marketing [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 12,499 |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity (Details Textual) - USD ($) | 12 Months Ended | |||
Oct. 02, 2021 | Dec. 20, 2019 | Feb. 28, 2023 | Feb. 28, 2022 | |
Preferred Stock, Redemption Price Per Share (in dollars per share) | $ 0.01 | |||
Payments for Repurchase of Redeemable Preferred Stock | $ 61,276 | |||
Share-Based Payment Arrangement, Nonemployee [Member] | ||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture (in shares) | 0 | 9,000 | ||
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) | 6 months | |||
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 14 - Income Taxes (Details
Note 14 - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Deferred Tax Assets, Operating Loss Carryforwards | $ 1,600,000 | ||
Operating Loss Carryforwards | $ 317,000 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | 21% |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 148,000 | ||
Gain (Loss) on Extinguishment of Debt | $ 0 | 0 | $ 1,440,267 |
Deferred Tax Assets, Gross | 1,600,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 1,669,288 | 445,560 | |
U-Swirl Segment [Member] | |||
Operating Loss Carryforwards | 1,811,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 445,000 |
Note 14 - Income Taxes - Income
Note 14 - Income Taxes - Income Tax Expense (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Federal | $ (116,792) | $ 204,058 | $ (294,368) |
State | 8,472 | 46,704 | 44,643 |
Total Current | (108,320) | 250,762 | (249,725) |
Federal | 621,841 | (231,430) | (425,580) |
State | 100,322 | (36,144) | (70,190) |
Total Deferred | 722,163 | (267,574) | (495,770) |
Total | 613,843 | (16,812) | (745,495) |
Income Tax Provision | 613,843 | (16,812) | (745,495) |
Discontinued operations | 618,308 | 52,194 | (146,419) |
Total tax provision (benefit) | $ 1,232,151 | $ 35,382 | $ (891,914) |
Note 14 - Income Taxes - Reconc
Note 14 - Income Taxes - Reconciliation of the Statutory Federal Income Tax Rate and the Effective Rate (Details) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Statutory rate | 21% | 21% | 21% |
State income taxes, net of federal benefit | 2.90% | 3.80% | 4.30% |
Paycheck Protection Program debt forgiveness | 0% | 0% | 28.70% |
Work opportunity tax credits | (0.00%) | 1.20% | (0.30%) |
Equity compensation tax expense | (0.70%) | (8.20%) | (2.50%) |
Compensation and benefits permanent differences | (3.20%) | (1.90%) | 0% |
Other | 0.70% | 0.10% | 0.60% |
Valuation allowance | (33.30%) | 0% | 0% |
Impact of CARES act | 0% | (10.30%) | 12.10% |
Effective tax rate | (12.60%) | 3.30% | 64.50% |
Note 14 - Income Taxes - Compon
Note 14 - Income Taxes - Components of Deferred Income Taxes (Details) - USD ($) | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 |
Allowance for doubtful accounts and notes | $ 182,031 | $ 225,515 | |
Inventories | 100,725 | 153,262 | |
Accrued compensation | 158,652 | 429,076 | |
Loss provisions and deferred income | 340,652 | 379,069 | |
Self-insurance accrual | 24,098 | 27,049 | |
Amortization | 0 | 0 | |
Restructuring charges | 98,693 | 98,693 | |
Accumulated net losses | 1,669,288 | 445,560 | |
Valuation allowance | (1,721,306) | (98,693) | $ (98,693) |
Net deferred tax assets | 852,833 | 1,659,531 | |
Depreciation and amortization | (771,593) | (860,318) | |
Prepaid expenses | (81,240) | (77,050) | |
Deferred Tax Liabilities | (852,833) | (937,368) | |
Net deferred tax assets | $ 0 | $ 722,163 |
Note 14 - Income Taxes - Summar
Note 14 - Income Taxes - Summary of Deferred Income Tax Valuation Allowances (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Valuation allowance at beginning of period | $ 98,693 | $ 98,693 |
Tax expense realized by valuation allowance | 1,622,613 | 0 |
Valuation allowance at end of period | $ 1,721,306 | $ 98,693 |
Note 15 - Employee Benefit Pl_2
Note 15 - Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Defined Contribution Plan Employers Matching Contribution Vesting Period (Year) | 3 years | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 25% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 1.50% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 68,000 | $ 67,000 | $ 62,000 |
Note 16 - Operating Segments (D
Note 16 - Operating Segments (Details Textual) | 12 Months Ended |
Feb. 28, 2023 | |
Number of Reportable Segments | 4 |
Note 16 - Operating Segments -
Note 16 - Operating Segments - Segment Information (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenues | $ 30,432,352 | $ 29,488,548 | $ 21,763,181 |
Segment profit (loss) | (4,874,513) | (516,529) | (1,155,217) |
Total assets | 21,986,827 | 26,880,761 | |
Capital expenditures | 1,000,015 | 941,327 | 149,517 |
Total depreciation and amortization | 765,263 | 740,175 | 778,447 |
Franchising [Member] | |||
Revenues | 5,975,442 | 5,954,078 | 3,545,387 |
Segment profit (loss) | 2,601,485 | 2,862,263 | 846,039 |
Total assets | 1,245,331 | 1,160,343 | 1,338,990 |
Capital expenditures | 17,129 | 1,832 | 150 |
Total depreciation and amortization | 34,301 | 36,625 | 42,579 |
Manufacturing [Member] | |||
Revenues | 23,372,133 | 22,374,175 | 17,321,001 |
Segment profit (loss) | 2,832,307 | 3,863,460 | 1,422,491 |
Total assets | 9,792,491 | 10,023,716 | 9,330,194 |
Capital expenditures | 899,219 | 797,178 | 103,003 |
Total depreciation and amortization | 652,405 | 627,071 | 642,806 |
Retail Segment [Member] | |||
Revenues | 1,084,777 | 1,160,295 | 896,793 |
Segment profit (loss) | 130,880 | 75,962 | (309,799) |
Total assets | 442,977 | 625,850 | 634,124 |
Capital expenditures | 5,413 | 3,688 | 4,505 |
Total depreciation and amortization | 5,845 | 5,635 | 14,150 |
U-Swirl Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Segment profit (loss) | (10,439,185) | (7,318,214) | (3,113,948) |
Total assets | 10,506,028 | 15,070,852 | 13,647,844 |
Capital expenditures | 78,254 | 138,629 | 41,859 |
Total depreciation and amortization | 72,712 | 70,844 | 78,912 |
Other Segments [Member] | |||
Revenues | 30,432,352 | 29,488,548 | 21,763,181 |
Segment profit (loss) | (4,874,513) | (516,529) | (1,155,217) |
Total assets | 21,986,827 | 26,880,761 | 24,951,152 |
Capital expenditures | 1,000,015 | 941,327 | 149,517 |
Total depreciation and amortization | 765,263 | 740,175 | 778,447 |
Operating Segments [Member] | Franchising [Member] | |||
Revenues | 5,980,945 | 5,959,624 | 3,549,055 |
Operating Segments [Member] | Manufacturing [Member] | |||
Revenues | 24,628,317 | 23,442,371 | 18,316,165 |
Operating Segments [Member] | Retail Segment [Member] | |||
Revenues | 1,084,777 | 1,160,295 | 896,793 |
Operating Segments [Member] | U-Swirl Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Operating Segments [Member] | Other Segments [Member] | |||
Revenues | 31,694,039 | 30,562,290 | 22,762,013 |
Intersegment Eliminations [Member] | Franchising [Member] | |||
Revenues | (5,503) | (5,546) | (3,668) |
Intersegment Eliminations [Member] | Manufacturing [Member] | |||
Revenues | (1,256,184) | (1,068,196) | (995,164) |
Intersegment Eliminations [Member] | Retail Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations [Member] | U-Swirl Segment [Member] | |||
Revenues | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Other Segments [Member] | |||
Revenues | $ (1,261,687) | $ (1,073,742) | $ (998,832) |
Note 17 - Summarized Quarterl_3
Note 17 - Summarized Quarterly Data (Unaudited) - Quarterly Results of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2023 | Nov. 30, 2022 | Aug. 31, 2022 | May 31, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Aug. 31, 2021 | May 31, 2021 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Total revenue | $ 8,147,705 | $ 8,825,093 | $ 6,557,356 | $ 6,902,198 | $ 7,795,613 | $ 7,902,033 | $ 7,033,474 | $ 6,757,428 | $ 30,432,352 | $ 29,488,548 | |
Gross margin | 78,846 | 1,859,186 | 1,181,806 | 881,699 | 898,367 | 1,580,543 | 1,519,680 | 925,141 | 4,001,537 | 4,923,731 | |
Net (Loss) Income from continuing operations | (1,853,941) | (196,157) | (3,152,491) | (285,767) | 381,201 | (1,413,010) | 84,272 | 447,820 | (5,488,356) | (499,717) | $ (409,722) |
Net (loss) income from discontinued operations | 141,269 | (15,822) | (488,695) | 170,826 | (21,990) | (64,636) | 112,661 | 131,985 | (192,422) | 158,020 | (490,055) |
Net (loss) income | $ (1,712,672) | $ (211,979) | $ (3,641,186) | $ (114,941) | $ 359,211 | $ (1,477,646) | $ 196,933 | $ 579,805 | $ (5,680,778) | $ (341,697) | $ (899,777) |
Basic Loss per Common Share | |||||||||||
Earnings (loss) from continuing operations (in dollars per share) | $ (0.29) | $ (0.03) | $ (0.51) | $ (0.05) | $ 0.06 | $ (0.23) | $ 0.01 | $ 0.07 | $ (0.88) | $ (0.08) | $ (0.07) |
Earnings (loss) from discontinued operations (in dollars per share) | 0.02 | 0 | (0.08) | 0.03 | 0 | (0.01) | 0.02 | 0.02 | (0.03) | 0.02 | |
Net Earnings (in dollars per share) | (0.27) | (0.03) | (0.59) | (0.02) | 0.06 | (0.24) | 0.03 | 0.09 | (0.91) | (0.06) | (0.15) |
Diluted Loss per Common Share | |||||||||||
Loss from continuing operations (in dollars per share) | (0.29) | (0.03) | (0.51) | (0.05) | 0.06 | (0.23) | 0.01 | 0.07 | (0.88) | (0.08) | (0.07) |
Earnings (loss) from discontinued operations (in dollars per share) | 0.02 | 0 | (0.08) | 0.03 | 0 | (0.01) | 0.02 | 0.02 | (0.03) | 0.02 | (0.08) |
Net Earnings (in dollars per share) | $ (0.27) | $ (0.03) | $ (0.59) | $ (0.02) | $ 0.06 | $ (0.24) | $ 0.03 | $ 0.09 | $ (0.91) | $ (0.06) | $ (0.15) |
Total revenue | $ 8,147,705 | $ 8,825,093 | $ 6,557,356 | $ 6,902,198 | $ 7,795,613 | $ 7,902,033 | $ 7,033,474 | $ 6,757,428 | $ 30,432,352 | $ 29,488,548 | |
Gross margin | 78,846 | 1,859,186 | 1,181,806 | 881,699 | 898,367 | 1,580,543 | 1,519,680 | 925,141 | 4,001,537 | 4,923,731 | |
Net (Loss) Income from continuing operations | (1,853,941) | (196,157) | (3,152,491) | (285,767) | 381,201 | (1,413,010) | 84,272 | 447,820 | (5,488,356) | (499,717) | $ (409,722) |
Net (loss) income from discontinued operations | 141,269 | (15,822) | (488,695) | 170,826 | (21,990) | (64,636) | 112,661 | 131,985 | (192,422) | 158,020 | (490,055) |
Net (loss) income | $ (1,712,672) | $ (211,979) | $ (3,641,186) | $ (114,941) | $ 359,211 | $ (1,477,646) | $ 196,933 | $ 579,805 | $ (5,680,778) | $ (341,697) | $ (899,777) |
Note 18 - Costs Associated Wi_3
Note 18 - Costs Associated With Company-owned Store Closures - Costs Associated With Closures (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Costs associated with Company-owned store closures | $ 0 | $ 0 | $ 57,100 |
Loss on Distribution of Assets [Member] | |||
Costs associated with Company-owned store closures | $ 0 | $ 0 | $ 57,100 |
Note 19 - Contested Solicitat_3
Note 19 - Contested Solicitation Of Proxies and Change In Control Payments (Details Textual) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2022 | Nov. 03, 2021 | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 12,499 | 66,667 | |||
Former Senior Vice President, Sales and Marketing [Member] | |||||
Payments for Postemployment Benefits | $ 70,000 | ||||
Deferred Compensation Arrangement with Individual, Cash Award Granted, Amount | $ 56,250 | ||||
Restricted Stock Units (RSUs) [Member] | President and Chief Executive Officer [Member] | Letter Agreement [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 66,667 | 12,499 | |||
Restricted Stock Units (RSUs) [Member] | Former Senior Vice President, Sales and Marketing [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Accelerated Vesting, Number (in shares) | 12,499 | ||||
Contested Solicitation of Proxies [Member] | |||||
Litigation Settlement, Expense | $ 4,100,000 | $ 1,700,000 | $ 0 |
Note 19 - Contested Solicitat_4
Note 19 - Contested Solicitation Of Proxies and Change In Control Payments - Letter Agreement Incurred (Details) - USD ($) | 12 Months Ended | |
Feb. 28, 2023 | Feb. 28, 2022 | |
Accelerated restricted stock unit compensation expense: | $ 95,156 | $ 525,000 |
Letter Agreement [Member] | President and Chief Executive Officer [Member] | ||
Severance compensation: | 928,938 | 1,344,813 |
Consulting Services: | 56,250 | 0 |
Total | 1,080,344 | 1,869,813 |
Letter Agreement [Member] | President and Chief Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | ||
Accelerated restricted stock unit compensation expense: | $ 95,156 | $ 525,000 |
Note 20 - Discontinued Operat_3
Note 20 - Discontinued Operations - Discontinued Operations (Details) - USD ($) | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Income tax provision (benefit) | $ 618,308 | $ 52,194 | $ (146,419) |
Less: Net (Loss) Income from discontinued operations, net of tax | (192,422) | 158,020 | (490,055) |
Current assets held for sale | 83,004 | 126,864 | |
Long-term assets held for sale | 1,765,846 | 2,885,790 | |
Current liabilities held for sale | 178,939 | 173,243 | |
Long term liabilities held for sale | 184,142 | 159,602 | |
USwirl Inc [Member] | |||
Total Revenue | 3,128,368 | 2,854,031 | 1,717,524 |
Cost of sales | 654,353 | 556,933 | 320,068 |
Operating Expenses | 2,048,129 | 2,087,021 | 2,142,310 |
Other income (expense), net | 0 | (137) | (108,380) |
Earnings (loss) from discontinued operations before income taxes | 425,886 | 210,214 | (636,474) |
Income tax provision (benefit) | 618,308 | 52,194 | (146,419) |
Less: Net (Loss) Income from discontinued operations, net of tax | (192,422) | 158,020 | $ (490,055) |
Accounts and notes receivable, net | 75,914 | 62,078 | |
Inventory, net | 6,067 | 56,319 | |
Other | 1,023 | 8,467 | |
Current assets held for sale | 83,004 | 126,864 | |
Property and equipment, net | 0 | 48,702 | |
Franchise rights, net | 1,708,336 | 2,078,066 | |
Intangible assets, net | 48,095 | 58,853 | |
Deferred income taxes | 0 | 666,108 | |
Other | 9,415 | 34,061 | |
Long-term assets held for sale | 1,765,846 | 2,885,790 | |
Total Assets Held for Sale | 1,848,850 | 3,012,654 | |
Accounts payable | 125,802 | 83,909 | |
Accrued compensation | 11,205 | 49,312 | |
Accrued liabilities | 11,981 | 15,388 | |
Contract liabilities | 29,951 | 24,634 | |
Current liabilities held for sale | 178,939 | 173,243 | |
Contract liabilities, less current portion | 184,142 | 159,602 | |
Long term liabilities held for sale | 184,142 | 159,602 | |
Total Liabilities Held for Sale | $ 363,081 | $ 332,845 |