Rocky Mountain Chocolate Factory, Inc. Goodwill & Intangibles Disclosure
NOTE 7 – GOODWILL AND INTANGIBLE ASSETS
Goodwill and intangible assets consist of the following at February 28:
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2026 |
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2025 |
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($'s in thousands) |
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Amortization Period (in Years) |
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Gross |
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Accumulated |
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Gross |
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Accumulated |
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Intangible assets subject to amortization |
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Store design |
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10 |
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$ |
954 |
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$ |
(321 |
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$ |
395 |
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$ |
(295 |
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Trademark/Non-competition agreements |
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5 |
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- |
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20 |
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250 |
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(150 |
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259 |
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(149 |
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Total |
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1,204 |
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(471 |
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654 |
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(444 |
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Goodwill and intangible assets not subject to |
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Goodwill |
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Retail |
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$ |
362 |
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$ |
362 |
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Franchising |
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97 |
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97 |
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Manufacturing |
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97 |
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97 |
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Trademark |
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20 |
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20 |
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Total |
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576 |
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576 |
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Total Goodwill and Intangible Assets |
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$ |
1,780 |
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$ |
(471 |
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$ |
1,230 |
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$ |
(444 |
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There was no change to goodwill during the fiscal years ended February 28, 2026 and February 28, 2025.
Amortization expense related to intangible assets totaled $37 thousand, $27 thousand and $28 thousand during the fiscal years ended February 28, 2026, February 28, 2025 and February 29, 2024, respectively.
At February 28, 2026, annual amortization of intangible assets, based upon the Company’s existing intangible assets and current useful lives, is estimated to be the following (amounts in thousands):
2027 |
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$ |
83 |
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2028 |
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83 |
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2029 |
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83 |
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2030 |
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83 |
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2031 |
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79 |
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Thereafter |
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322 |
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Total |
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$ |
733 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 29, 2026 | Showing above |
| 2025 | Jun 20, 2025 | |
| 2024 | Jun 13, 2024 | |
| 2023 | May 30, 2023 | |
| 2022 | May 27, 2022 | |
| 2021 | Jun 1, 2021 | |
| 2020 | May 29, 2020 | |
| 2019 | May 29, 2019 | |
| 2018 | May 15, 2018 | |
| 2017 | May 23, 2017 | |
| 2016 | May 23, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.