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Significant Accounting Policies (Policies)
6 Months Ended
Aug. 31, 2020
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
 
The accompanying consolidated financial statements have been prepared by the Company, without audit, and reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and Securities and Exchange Commission (the “SEC”) regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Certain amounts previously presented for prior periods have been reclassified to conform to the current presentation. In the opinion of management, the consolidated financial statements reflect all adjustments (of a normal and recurring nature) which are necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. The results of operations for the
three
and
six
months ended
August 31, 2020
are
not
necessarily indicative of the results to be expected for the entire fiscal year, or any other future period.
 
These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's Annual Report on Form
10
-K for the fiscal year ended
February
29,
2020.
 
The year-end balance sheet data was derived from audited financial statements for the year ended
February
29,
2020,
but does
not
include all disclosures required by GAAP.
Subsequent Events, Policy [Policy Text Block]
Subsequent Events
 
Management evaluated all activity of the Company through the issue date of the financial statements and concluded that
no
subsequent events have occurred that would require recognition or disclosure in the financial statements. 
COVID-19 Update [Policy Text Block]
As discussed in more detail throughout this Quarterly Report on Form
10
-Q for the
three
and
six
months ended
August 31, 2020 (
this “Quarterly Report”), we have experienced significant business disruptions resulting from efforts to contain the rapid spread of the novel coronavirus ("COVID-
19"
), including the vast mandated self-quarantines of customers and closures of non-essential business throughout the United States and internationally. Nearly all of the Company-owned and franchise stores were directly and negatively impacted by public health measures taken in response to COVID-
19,
with nearly all locations experiencing reduced operations as a result of, among other things, modified business hours and store and mall closures. As a result, franchisees and licensees are
not
ordering products for their stores in line with historical amounts. This trend has negatively impacted, and is expected to continue to negatively impact, among other things, factory sales, retail sales and royalty and marketing fees. Beginning in
May 2020
and continuing through
August 2020,
most stores previously closed for much of
March 2020
and
April 2020
in response to the COVID-
19
pandemic, began to re-open. As of
August 31, 2020
approximately
27
stores have
not
re-opened and the future of these locations is uncertain.  This is a closure rate significantly higher than historical levels. By
August 31, 2020,
certain stores have met or exceeded pre-COVID-
19
levels, however, many retail environments have continued to be adversely impacted by changes to consumer behavior as a result of COVID-
19.
Most stores re-opened subject to various local health restrictions and with reduced operations. It is unclear when or if store operations will return to pre-COVID-
19
levels.
 
In addition, as previously announced in
May 2020,
the Board of Directors suspended the Company's
first
quarter cash dividend payment to preserve cash and provide additional flexibility in the current environment impacted by the COVID-
19
pandemic. Furthermore, the Board of Directors has suspended future quarterly dividends until the significant uncertainty of the current public health crisis and economic climate has passed, and the Board of Directors determines that resumption of dividend payments is in the best interest of the Company and its stockholders.
 
During this challenging time, the Company's foremost priority is the safety and well-being of our employees, customers, franchisees and communities. In addition to the already stringent practices for the quality and safety of the Company's confections, the Company is diligently following health and safety guidance issued by the World Health Organization, the Centers for Disease Control and state and local governmental agencies. The COVID-
19
pandemic has had an unprecedented impact on the retail industry as containment measures continue to impact the Company's operations and the retail industry. Numerous countries, states and local governments have effected ordinances to protect the public through social distancing, which has caused, and we expect will continue to cause, a significant decrease in, among other things, retail traffic and as a result, factory sales, retail sales and royalty and marketing fees. With that said, Rocky Mountain Chocolate Factory products remain available for sale online. The Company's current focus is on supporting its franchisees and licensees during this challenging time and driving growth in online sales, especially in light of the ecommerce licensing agreement with Edible, as discussed below, while also sensibly managing costs. The number of Company-owned and franchise stores remaining open
may
change frequently and significantly due to the ever-changing nature of the COVID-
19
outbreak.
 
In these challenging and unprecedented times, management is taking all necessary and appropriate action to maximize liquidity as the Company navigates the current landscape. These actions include significantly reducing operating expenses and production volume to reflect reduced sales volumes as well as the elimination of all non-essential spending and capital expenditures. Further, in an abundance of caution and to maintain ample financial flexibility, the Company drew down the full amount under our line of credit and the Company received loans under the Paycheck Protection Program (the “PPP”). See Note
9
for additional information regarding our debt obligations. The receipt of funds under our debt obligations has allowed the Company to temporarily avoid workforce reduction measures amidst a steep decline in revenue and production volume. While the Company believes it has sufficient liquidity with its current cash position, the Company will continue to monitor and evaluate all financing alternatives as necessary as these unprecedented events evolve. For more information, please see Item
1A
“Risk Factors—The Novel Coronavirus (COVID-
19
) Pandemic Has, and
May
Continue to, Materially and Adversely Affect our Sales, Earnings, Financial Condition and Liquidity” in our Annual Report on Form
10
-K as filed on
May 29, 2020
with the United States Securities and Exchange Commission
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements
 
Except for the recent accounting pronouncements described below, other recent accounting pronouncements are
not
expected to have a material impact on our consolidated financial statements.
 
In
June 2016,
the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)
2016
-
13,
Financial Instruments - Credit Losses (Topic
326
): Measurement of Credit Losses on Financial Instruments. ASU
2016
-
13
significantly changes the impairment model for most financial assets and certain other instruments. ASU
2016
-
13
will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. ASU
2016
-
13
is effective for the Company's fiscal year beginning
March 1, 2023
and subsequent interim periods. The Company is currently evaluating the impact the adoption of ASU
2016
-
13
will have on the Company's consolidated financial statements.
 
In
January 2017,
the FASB issued ASU
2017
-
04,
Intangibles—Goodwill and Other (Topic
350
): Simplifying the Test for Goodwill Impairment. ASU
2017
-
04
simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step
2
from the goodwill impairment test. Under the amendments in ASU
2017
-
04,
an entity should (
1
) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (
2
) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, with the understanding that the loss recognized should
not
exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU
2017
-
04
requires any reporting unit with a
zero
or negative carrying amount to perform Step
2
of the goodwill impairment test. We adopted ASU
2017
-
04
effective
March 1, 2020 (
the
first
quarter of our
2021
fiscal year). The adoption of ASU
2017
-
04
did
not
have a material impact on our consolidated financial statements.
 
In
December 2019,
the FASB issued ASU
2019
-
12,
Income Taxes (Topic
740
): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2020
on a prospective basis, with early adoption permitted. We will adopt ASU
2019
-
12
effective
March 1, 2021
and do
not
expect the adoption of this guidance to have a material impact on our consolidated financial statements.
Related Party Transactions, Policy [Policy Text Block]
Related Party Transactions
 
As described above, in FY
2020,
we entered into a long-term strategic alliance whereby we became the exclusive provider of certain branded chocolate products to Edible, its affiliates and its franchisees. Also in FY
2020,
the founder and Chief Executive Officer of Edible was elected to the Company's Board of Directors at the Company's Annual Meeting of Stockholders. During the
six
months ended
August 31, 2020,
the Company recognized approximately
$949,000
of revenue related to purchases from Edible, its affiliates and its franchisees. As of
August 31, 2020
the company recognized approximately
$718,000
of accounts receivable from Edible its affiliates and its franchisees.