Note 14 - Operating Segments

6 Months Ended

Aug. 31, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 14 – OPERATING SEGMENTS

The Company classifies its business interests into five reportable segments: Franchising, Manufacturing, Retail Stores, U-Swirl operations and Other. 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 and Note 1 to the Company’s consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 28, 2021, as amended by Amendment No. 1 on Form 10-K/A filed on June 28, 2021. 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 difference in products and services:

Three Months Ended August 31, 2021	Franchising			Manufacturing			Retail		U-Swirl		Other			Total
Total revenues	$	1,602,369		$	5,464,121		$	271,034	$	892,603	$	-		$	8,230,127
Intersegment revenues		(1,374	)		(302,676	)		-		-		-			(304,050	)
Revenue from external customers		1,600,995			5,161,445			271,034		892,603		-			7,926,077
Segment profit (loss)		643,606			1,247,593			26,058		173,450		(1,830,300	)		260,407
Total assets		1,486,476			10,763,803			625,179		4,922,875		9,619,259			27,417,592
Capital expenditures		-			101,537			-		-		11,890			113,427
Total depreciation & amortization	$	9,174		$	159,246		$	1,397	$	116,669	$	19,790		$	306,276

Three Months Ended August 31, 2020	Franchising			Manufacturing			Retail		U-Swirl		Other			Total
Total revenues	$	1,040,863		$	3,768,416		$	193,702	$	594,812	$	-		$	5,597,793
Intersegment revenues		(727	)		(269,664	)		-		-		-			(270,391	)
Revenue from external customers		1,040,136			3,498,752			193,702		594,812		-			5,327,402
Segment profit (loss)		366,535			489,668			21,924		11,903		(789,297	)		100,733
Total assets		1,387,005			12,241,965			618,323		5,526,772		9,413,374			29,187,439
Capital expenditures		150			11,343			72		-		16,799			28,364
Total depreciation & amortization	$	10,095		$	162,523		$	1,391	$	140,823	$	20,021		$	334,853

Six Months Ended August 31, 2021	Franchising			Manufacturing			Retail		U-Swirl		Other			Total
Total revenues	$	3,037,735		$	10,749,226		$	554,012	$	1,728,886	$	-		$	16,069,859
Intersegment revenues		(3,013	)		(547,058	)		-		-		-			(550,071	)
Revenue from external customers		3,034,722			10,202,168			554,012		1,728,886		-			15,519,788
Segment profit (loss)		1,288,472			1,915,618			44,324		318,992		(2,489,401	)		1,078,005
Total assets		1,486,476			10,763,803			625,179		4,922,875		9,619,259			27,417,592
Capital expenditures		1,182			533,948			1,068		1,399		33,265			570,862
Total depreciation & amortization	$	18,672		$	312,866		$	2,798	$	233,399	$	38,455		$	606,190

Six Months Ended August 31, 2020	Franchising			Manufacturing			Retail			U-Swirl			Other			Total
Total revenues	$	1,295,339		$	6,061,508		$	253,683		$	848,859		$	-		$	8,459,389
Intersegment revenues		(1,409	)		(428,141	)		-			-			-			(429,550	)
Revenue from external customers		1,293,930			5,633,367			253,683			848,859			-			8,029,839
Segment profit (loss)		(84,784	)		(293,801	)		(455,902	)		(445,815	)		(3,465,690	)		(4,745,992	)
Total assets		1,387,005			12,241,965			618,323			5,526,772			9,413,374			29,187,439
Capital expenditures		150			25,197			72			1,712			23,722			50,853
Total depreciation & amortization	$	20,233		$	324,353		$	4,794		$	287,772		$	40,815		$	677,967