Operating Segments

12 Months Ended

Feb. 29, 2024

Segment Reporting [Abstract]

Operating segments

NOTE 15 - OPERATING SEGMENTS

The Company classifies its business interests into three reportable segments: Rocky Mountain Chocolate Factory, Inc. Franchising, Manufacturing, Retail Stores, and Unallocated, which is the basis upon which the Company’s chief operating decision maker, the chief executive officer, 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 to these consolidated financial statements. The Company evaluates performance and allocates resources based on operating contribution, which excludes unallocated corporate general and administrative costs and income tax expense or benefit. The Company’s reportable segments are strategic businesses that utilize common merchandising, distribution, and marketing functions, as well as common information systems and corporate administration. All inter-segment sales prices are market based. Each segment is managed separately because of the differences in required infrastructure and the differences in products and services:

FY 2024	Franchising			Manufacturing			Retail		Unallocated			Total
Total revenues	$	5,928,870		$	21,832,674		$	1,318,901	$	-		$	29,080,445
Intersegment revenues		(493	)		(1,129,265	)		-		-			(1,129,758	)
Revenue from external customers		5,928,377			20,703,409			1,318,901		-			27,950,687
Segment profit (loss)		1,758,953			149,191			144,842		(6,928,703	)		(4,875,717	)
Total assets		1,255,165			11,989,238			510,189		6,822,626			20,577,218
Capital expenditures		134,635			2,297,046			41,801		543,991			3,017,473
Total depreciation & amortization	$	31,618		$	755,502		$	7,684	$	92,495		$	887,299

FY 2023	Franchising			Manufacturing			Retail		Unallocated			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		Unallocated			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