Rocky Mountain Chocolate Factory, Inc. Segments Disclosure
NOTE 15 – OPERATING SEGMENTS
The Company classifies its business interests into three reportable segments: Rocky Mountain Chocolate Factory, Inc. Franchising, Manufacturing, Retail Stores, and Unallocated, which is the basis upon which the Company’s Chief Operating Decision Maker (CODM), the interim , evaluates the Company’s performance. The CODM uses the segment information in the annual planning process and considers actual versus plan variances in evaluating the performance of the segments. 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 Company evaluates performance and allocates resources based on the segment operating profit or loss, 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 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:
FY 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
($'s in thousands) |
|
Franchising |
|
|
Manufacturing |
|
|
Retail |
|
|
Unallocated |
|
|
Total |
|
|||||
Total revenues |
|
$ |
6,135 |
|
|
$ |
20,026 |
|
|
$ |
1,974 |
|
|
$ |
- |
|
|
$ |
28,135 |
|
Intersegment revenues |
|
|
- |
|
|
|
(638 |
) |
|
|
- |
|
|
|
- |
|
|
|
(638 |
) |
Revenue from external customers |
|
|
6,135 |
|
|
|
19,388 |
|
|
|
1,974 |
|
|
|
- |
|
|
|
27,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of Sales |
|
|
- |
|
|
|
20,048 |
|
|
|
595 |
|
|
|
- |
|
|
|
20,643 |
|
Labor costs |
|
|
2,081 |
|
|
|
- |
|
|
|
488 |
|
|
|
1,810 |
|
|
|
4,379 |
|
Operating expenses |
|
|
627 |
|
|
|
- |
|
|
|
630 |
|
|
|
499 |
|
|
|
1,756 |
|
Professional fees |
|
|
176 |
|
|
|
- |
|
|
|
- |
|
|
|
1,685 |
|
|
|
1,861 |
|
Other general & administrative expenses |
|
|
520 |
|
|
|
- |
|
|
|
- |
|
|
|
1,441 |
|
|
|
1,961 |
|
|
|
|
3,404 |
|
|
|
20,048 |
|
|
|
1,713 |
|
|
|
5,435 |
|
|
|
30,600 |
|
Depreciation and amortization, exclusive of depreciation and amortization expense of $921 included in cost of sales (manufacturing segment) |
|
|
51 |
|
|
|
- |
|
|
|
29 |
|
|
|
403 |
|
|
|
484 |
|
Total costs and expenses |
|
|
3,455 |
|
|
|
20,048 |
|
|
|
1,742 |
|
|
|
5,838 |
|
|
|
31,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Segment profit (loss) |
|
|
2,680 |
|
|
|
(660 |
) |
|
|
232 |
|
|
|
(5,838 |
) |
|
|
(3,587 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(840 |
) |
|
|
(840 |
) |
Interest income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
54 |
|
|
|
54 |
|
Other income (expense), net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(786 |
) |
|
|
(786 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss before income taxes |
|
|
2,680 |
|
|
|
(660 |
) |
|
|
232 |
|
|
|
(6,624 |
) |
|
|
(4,373 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax provision |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
187 |
|
|
|
187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) from continuing operations |
|
|
2,680 |
|
|
|
(660 |
) |
|
|
232 |
|
|
|
(6,811 |
) |
|
|
(4,560 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) from discontinued operations, net of tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loss |
|
|
2,680 |
|
|
|
(660 |
) |
|
|
232 |
|
|
|
(6,811 |
) |
|
|
(4,560 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Segment Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
|
1,698 |
|
|
|
14,394 |
|
|
|
1,792 |
|
|
|
2,328 |
|
|
|
20,212 |
|
Capital expenditures |
|
|
- |
|
|
|
195 |
|
|
|
281 |
|
|
|
258 |
|
|
|
734 |
|
FY 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
($'s in thousands) |
|
Franchising |
|
|
Manufacturing |
|
|
Retail |
|
|
Unallocated |
|
|
Total |
|
|||||
Total revenues |
|
$ |
5,564 |
|
|
$ |
23,572 |
|
|
$ |
1,466 |
|
|
$ |
- |
|
|
$ |
30,602 |
|
Intersegment revenues |
|
|
- |
|
|
|
(1,023 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,023 |
) |
Revenue from external customers |
|
|
5,564 |
|
|
|
22,549 |
|
|
|
1,466 |
|
|
|
- |
|
|
|
29,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of Sales |
|
|
- |
|
|
|
23,463 |
|
|
|
453 |
|
|
|
- |
|
|
|
23,916 |
|
Labor costs |
|
|
2,483 |
|
|
|
- |
|
|
|
433 |
|
|
|
2,250 |
|
|
|
5,166 |
|
Operating expenses |
|
|
1,338 |
|
|
|
- |
|
|
|
283 |
|
|
|
545 |
|
|
|
2,166 |
|
Professional fees |
|
|
403 |
|
|
|
- |
|
|
|
- |
|
|
|
2,335 |
|
|
|
2,738 |
|
Other general & administrative expenses |
|
|
185 |
|
|
|
- |
|
|
|
- |
|
|
|
1,175 |
|
|
|
1,360 |
|
|
|
|
4,409 |
|
|
|
23,463 |
|
|
|
1,169 |
|
|
|
6,305 |
|
|
|
35,346 |
|
Depreciation and amortization, exclusive of depreciation and amortization expense of $775 included in cost of sales (manufacturing segment) |
|
|
50 |
|
|
|
- |
|
|
|
13 |
|
|
|
112 |
|
|
|
175 |
|
Total costs and expenses |
|
|
4,459 |
|
|
|
23,463 |
|
|
|
1,182 |
|
|
|
6,417 |
|
|
|
35,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Segment profit (loss) |
|
|
1,105 |
|
|
|
(914 |
) |
|
|
284 |
|
|
|
(6,417 |
) |
|
|
(5,942 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(454 |
) |
|
|
(454 |
) |
Interest income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
27 |
|
|
|
27 |
|
Gain on sale of assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
247 |
|
|
|
247 |
|
Other income (expense), net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(180 |
) |
|
|
(180 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss before income taxes |
|
|
1,105 |
|
|
|
(914 |
) |
|
|
284 |
|
|
|
(6,597 |
) |
|
|
(6,122 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax provision |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) from continuing operations |
|
|
1,105 |
|
|
|
(914 |
) |
|
|
284 |
|
|
|
(6,597 |
) |
|
|
(6,122 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) from discontinued operations, net of tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loss |
|
|
1,105 |
|
|
|
(914 |
) |
|
|
284 |
|
|
|
(6,597 |
) |
|
|
(6,122 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Segment Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
|
2,213 |
|
|
|
14,867 |
|
|
|
803 |
|
|
|
3,292 |
|
|
|
21,175 |
|
Capital expenditures |
|
|
16 |
|
|
|
2,543 |
|
|
|
7 |
|
|
|
1,196 |
|
|
|
3,762 |
|
FY 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
($'s in thousands) |
|
Franchising |
|
|
Manufacturing |
|
|
Retail |
|
|
Unallocated |
|
|
Total |
|
|||||
Total revenues |
|
$ |
5,928 |
|
|
$ |
21,833 |
|
|
$ |
1,319 |
|
|
$ |
- |
|
|
$ |
29,080 |
|
Intersegment revenues |
|
|
- |
|
|
|
(1,129 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,129 |
) |
Revenue from external customers |
|
|
5,928 |
|
|
|
20,704 |
|
|
|
1,319 |
|
|
|
- |
|
|
|
27,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of Sales |
|
|
- |
|
|
|
20,200 |
|
|
|
456 |
|
|
|
- |
|
|
|
20,656 |
|
Labor costs |
|
|
1,947 |
|
|
|
- |
|
|
|
337 |
|
|
|
3,373 |
|
|
|
5,657 |
|
Operating expenses |
|
|
1,732 |
|
|
|
- |
|
|
|
335 |
|
|
|
599 |
|
|
|
2,666 |
|
Professional fees |
|
|
714 |
|
|
|
- |
|
|
|
- |
|
|
|
1,675 |
|
|
|
2,389 |
|
Other general & administrative expenses |
|
|
321 |
|
|
|
- |
|
|
|
- |
|
|
|
1,026 |
|
|
|
1,347 |
|
|
|
|
4,714 |
|
|
|
20,200 |
|
|
|
1,128 |
|
|
|
6,673 |
|
|
|
32,715 |
|
Depreciation and amortization, exclusive of depreciation and amortization expense of $750 included in cost of sales (manufacturing segment) |
|
|
32 |
|
|
|
6 |
|
|
|
8 |
|
|
|
92 |
|
|
|
138 |
|
Total costs and expenses |
|
|
4,746 |
|
|
|
20,206 |
|
|
|
1,136 |
|
|
|
6,765 |
|
|
|
32,853 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Segment profit (loss) |
|
|
1,182 |
|
|
|
498 |
|
|
|
183 |
|
|
|
(6,765 |
) |
|
|
(4,902 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(53 |
) |
|
|
(53 |
) |
Interest income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
79 |
|
|
|
79 |
|
Other income (expense), net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
26 |
|
|
|
26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss before income taxes |
|
|
1,182 |
|
|
|
498 |
|
|
|
183 |
|
|
|
(6,739 |
) |
|
|
(4,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Income tax provision |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings (loss) from continuing operations |
|
|
1,182 |
|
|
|
498 |
|
|
|
183 |
|
|
|
(6,739 |
) |
|
|
(4,876 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Earnings from discontinued operations, net of tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
704 |
|
|
|
704 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loss |
|
|
1,182 |
|
|
|
498 |
|
|
|
183 |
|
|
|
(6,035 |
) |
|
|
(4,172 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Segment Disclosures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
|
1,255 |
|
|
|
11,989 |
|
|
|
510 |
|
|
|
6,823 |
|
|
|
20,577 |
|
Capital expenditures |
|
|
135 |
|
|
|
2,297 |
|
|
|
42 |
|
|
|
543 |
|
|
|
3,017 |
|
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.