NOTE

– GOODWILL AND INTANGIBLE ASSETS

Intangible assets consist of the following:

					August 31, 2018				February 28, 2018
	Amortization Period (in years)				Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Intangible assets subject to amortization
Store design			10		$	220,778	$	213,403	$	220,778	$	212,653
Packaging licenses		3	-	5		120,830		120,830		120,830		120,830
Packaging design			10			430,973		430,973		430,973		430,973
Trademark/Non-competition agreements		5	-	20		715,339		180,407		715,339		136,087
Franchise rights			20			5,979,637		1,923,213		5,979,637		1,545,710
Total						7,467,557		2,868,826		7,467,557		2,446,253
Intangible assets not subject to amortization
Franchising segment-
Company stores goodwill					$	1,099,328	$	267,020	$	1,099,328	$	267,020
Franchising goodwill						295,000		197,682		295,000		197,682
Manufacturing segment-goodwill						295,000		197,682		295,000		197,682
Trademark						20,000		-		20,000		-
Total goodwill						1,709,328		662,384		1,709,328		662,384

Total Intangible Assets					$	9,176,885	$	3,531,210	$	9,176,885	$	3,108,637

Effective

March 1, 2002,

under Accounting Standards Codification Topic

350,

all goodwill with indefinite lives is

longer subject to amortization. Accumulated amortization related to intangible assets

not

subject to amortization is a result of amortization expense related to indefinite life goodwill incurred prior to

March 1, 2002.

Amortization expense related to intangible assets totaled

$422,573

and

$221,381

during the

six

months ended

August 31, 2018

and

2017,

respectively.

August 31, 2018,

annual amortization of intangible assets, based upon our existing intangible assets and current useful lives, is estimated to be the following: