Note 13 - Operating Segments

9 Months Ended

Nov. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE 13 – OPERATING SEGMENTS

The Company classifies its business interests into three reportable segments: Franchising, Production, Retail Stores. 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 Chief Operating Decision Maker 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:

Three Months Ended November 30, 2023	Franchising		Production			Retail		Unallocated			Total
Total revenues	$	1,275,700	$	6,394,694		$	363,584	$	-		$	8,033,978
Intersegment revenues		-		(336,577	)		-		-			(336,577	)
Revenue from external customers		1,275,700		6,058,117			363,584		-			7,697,401
Segment profit (loss)		299,677		286,858			30,374		(1,373,627	)		(756,718	)
Total assets		1,154,926		12,713,718			493,498		6,918,241			21,280,383
Capital expenditures		20,751		1,134,371			249		128,152			1,283,523
Total depreciation & amortization	$	7,217	$	188,708		$	2,445	$	25,107		$	223,477

Three Months Ended November 30, 2022	Franchising			Production			Retail		Unallocated			Total
Total revenues	$	1,239,938		$	7,629,146		$	301,594	$	-		$	9,170,678
Intersegment revenues		(1,379	)		(344,206	)		-		-			(345,585	)
Revenue from external customers		1,238,559			7,284,940			301,594		-			8,825,093
Segment profit (loss)		337,225			1,534,725			45,035		(2,113,142	)		(196,157	)
Total assets		1,010,798			13,639,903			624,705		5,428,786			20,704,192
Capital expenditures		15,925			150,735			4,860		-			171,520
Total depreciation & amortization	$	8,432		$	161,515		$	1,407	$	17,643		$	188,997

Nine Months Ended November 30, 2023	Franchising			Production			Retail		Unallocated			Total
Total revenues	$	4,238,017		$	16,385,975		$	864,400	$	-		$	21,488,392
Intersegment revenues		(493	)		(796,634	)		-		-			(797,127	)
Revenue from external customers		4,237,524			15,589,341			864,400		-			20,691,265
Segment profit (loss)		1,266,668			421,613			60,216		(5,031,779	)		(3,283,282	)
Total assets		1,154,926			12,713,718			493,498		6,918,241			21,280,383
Capital expenditures		52,848			2,166,138			19,761		378,279			2,617,026
Total depreciation & amortization	$	22,793		$	544,691		$	5,430	$	67,018		$	639,932

Nine Months Ended November 30, 2022	Franchising			Production			Retail		Unallocated			Total
Total revenues	$	4,222,694		$	18,143,863		$	815,197	$	-		$	23,181,754
Intersegment revenues		(3,994	)		(893,113	)		-		-			(897,107	)
Revenue from external customers		4,218,700			17,250,750			815,197		-			22,284,647
Segment profit (loss)		1,756,239			3,062,876			27,947		(7,779,818	)		(2,932,756	)
Total assets		1,010,798			13,639,903			624,705		5,428,786			20,704,192
Capital expenditures		17,106			685,420			5,435		70,224			778,185
Total depreciation & amortization	$	25,871		$	484,980		$	4,231	$	52,332		$	567,414