Form 8-K
8-K — Rocky Mountain Chocolate Factory, Inc.
Accession: 0001213900-26-110733
Filed: 2026-10-19
Period: 2026-10-16
CIK: 0001616262
SIC: 2060 (SUGAR & CONFECTIONERY PRODUCTS)
Item: Entry into a Material Definitive Agreement
Item: Completion of Acquisition or Disposition of Assets
Item: Results of Operations and Financial Condition
Item: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
Item: Financial Statements and Exhibits
Documents
8-K — ea0309068-8k_rocky.htm (Primary)
EX-10.1 — BUSINESS LOAN AGREEMENT, DATED OCTOBER 16, 2026, BETWEEN ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND ALPINE BANK (ea030906801ex10-1.htm)
EX-10.2 — PROMISSORY NOTE, DATED OCTOBER 16, 2026, ISSUED BY ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. TO ALPINE BANK (ea030906801ex10-2.htm)
EX-10.3 — COMMERCIAL SECURITY AGREEMENT, DATED OCTOBER 16, 2026, BETWEEN ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND ALPINE BANK (ea030906801ex10-3.htm)
EX-99.1 — PRESS RELEASE OF ROCKY MOUNTAIN CHOCOLATE FACTORY, INC., DATED OCTOBER 19, 2026 (ea030906801ex99-1.htm)
GRAPHIC (ea030906801_img1.jpg)
GRAPHIC (ea030906801_ex10-1img1.jpg)
GRAPHIC (ea030906801_ex10-1img2.jpg)
GRAPHIC (ea030906801_ex10-1img3.jpg)
GRAPHIC (ea030906801_ex10-1img4.jpg)
GRAPHIC (ea030906801_ex10-1img5.jpg)
GRAPHIC (ea030906801_ex10-1img6.jpg)
GRAPHIC (ea030906801_ex10-1img7.jpg)
GRAPHIC (ea030906801_ex10-2img1.jpg)
GRAPHIC (ea030906801_ex10-2img2.jpg)
GRAPHIC (ea030906801_ex10-2img3.jpg)
GRAPHIC (ea030906801_ex10-3img1.jpg)
GRAPHIC (ea030906801_ex10-3img2.jpg)
GRAPHIC (ea030906801_ex10-3img3.jpg)
GRAPHIC (ea030906801_ex10-3img4.jpg)
GRAPHIC (ea030906801_ex10-3img5.jpg)
GRAPHIC (ea030906801_ex10-3img6.jpg)
GRAPHIC (ea030906801_ex99-1img1.jpg)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K — CURRENT REPORT
8-K (Primary)
Filename: ea0309068-8k_rocky.htm · Sequence: 1
false
0001616262
0001616262
2026-10-16
2026-10-16
iso4217:USD
xbrli:shares
iso4217:USD
xbrli:shares
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Report (Date of earliest event
reported): October 16, 2026
Rocky Mountain Chocolate Factory, Inc.
(Exact name of registrant as specified in its charter)
Delaware
001-36865
47-1535633
(State or other jurisdiction
of incorporation
(Commission File Number)
(IRS Employer
Identification No.)
265 Turner Drive
Durango, Colorado 81303
(Address of principal executive offices) (Zip Code)
(970) 259-0554
Registrant’s telephone number, including
area code:
N/A
(Former name or former address, if changed since
last report.)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
Securities registered pursuant to Section 12(b)
of the Act:
Title of
each class
Trading Symbol
Name of each
exchange on which registered
Common Stock, $0.001 par value per share
RMCF
Nasdaq Capital Market
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange
Act of 1934 (§240.12b -2 of this chapter).
Emerging growth
company ☐
If
an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01. Entry into a Material Definitive
Agreement.
On October 16, 2026, Rocky Mountain Chocolate
Factory, Inc. (the “Company”) entered into a Business Loan Agreement (the “Loan Agreement”), a Promissory Note
(the “Alpine Note”) and a Commercial Security Agreement (the “Security Agreement” and, together with the Loan
Agreement and the Alpine Note, the “Loan Documents”) with Alpine Bank, a Colorado banking corporation (“Alpine Bank”),
providing for a $2.0 million term loan (the “Alpine Loan”). The full amount of the Alpine Loan was funded on October 16, 2026,
and the Company intends to use the proceeds for working capital.
The Alpine Loan matures on October 16, 2028. The
Company is required to make monthly payments of accrued interest beginning November 16, 2026, with all outstanding principal and accrued
interest due at maturity. The Alpine Loan bears interest at a variable rate equal to the JP Morgan Chase Bank prime rate plus 1.00%, subject
to a floor of 6.00% per annum and a ceiling of the lesser of 24.00% per annum or the maximum rate permitted by law, and the interest rate
increases to 24.00% upon an event of default. The Company may prepay the Alpine Loan at any time without penalty. In connection with the
Alpine Loan, the Company paid a $20,000 loan origination fee and a $30,000 cash collateral fee to the Colorado Housing and Finance Authority
(“CHFA”).
The Company’s obligations under the Alpine
Loan are secured by a security interest in substantially all of the Company’s assets and personal property pursuant to the Security
Agreement, and are further secured by an assignment to Alpine Bank of a deposit account of approximately $1.0 million held by CHFA at
Alpine Bank.
The Loan Agreement contains customary representations,
warranties and affirmative and negative covenants, including restrictions on the Company’s ability, without Alpine Bank’s
consent, to incur additional indebtedness, grant liens, merge or consolidate, sell assets outside the ordinary course of business, and
pay dividends, repurchase shares or make other restricted payments, as well as a requirement that the Company maintain its deposit accounts,
including its primary operating account, with Alpine Bank. The Loan Documents also contain customary events of default, including, among
others, payment defaults, covenant defaults, cross-defaults, insolvency events, a material adverse change in the Company’s financial
condition, and any change in ownership of 25% or more of the Company’s common stock. Upon an event of default, Alpine Bank may declare
all outstanding amounts immediately due and payable and exercise its other remedies under the Loan Documents.
The foregoing description of the Loan Documents
does not purport to be complete and is qualified in its entirety by reference to the full text of the Loan Agreement, the Alpine Note
and the Security Agreement, copies of which are filed as Exhibits 10.1, 10.2 and 10.3, respectively, to this Current Report on Form 8-K
and are incorporated herein by reference.
Item 2.01 Completion of Acquisition or
Disposition of Assets.
As previously disclosed in the Current Report
on Form 8-K filed by the Company on October 6, 2026 (the “Prior 8-K”), the Company entered into a Contract to Buy and Sell
Real Estate (Commercial) (the “Purchase Agreement”) and a Commercial Lease (the “Lease”) with American Heritage
Legacies, LLC (“AHL”), a company controlled by the family of Allen Harper, the Company’s Interim Chief Executive Officer,
providing for the sale-leaseback of the Company’s property at 265 Turner Drive, Durango, Colorado (the “Durango Property”).
On October 16, 2026, the Company completed the sale of the Durango Property to AHL for $6.6 million, and the Lease commenced.
The Company used the net proceeds to repay
in full approximately $6.6 million of principal and accrued interest outstanding under the Notes (as defined in the Prior 8-K), and the
Company has no further obligations under the Notes.
The foregoing description of the Purchase
Agreement and the Lease does not purport to be complete and is qualified in its entirety by reference to the full text of the Purchase
Agreement and the Lease, which were filed as Exhibits 10.1 and 10.2, respectively, to the Prior 8-K and are incorporated herein by reference.
1
Item 2.02. Results of Operations and Financial
Condition.
On October 19, 2026,
the Company issued a press release (the “Release”) reporting its results of operations for the three months ended August 31,
2026. A copy of the Release is attached hereto as Exhibit 99.1.
The information contained
in this Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, is furnished and shall not be deemed “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to
the liabilities of that Section, and shall not be deemed incorporated by reference into any other filing made by the Company under the
Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language included in such filing, except
as expressly set forth by specific reference in such filing.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The disclosures set forth in Item 1.01 of this Current Report on Form
8-K are incorporated into this Item 2.03 by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number
Description
10.1
Business Loan Agreement, dated October 16, 2026, between Rocky Mountain Chocolate Factory, Inc. and Alpine Bank.
10.2
Promissory Note, dated October 16, 2026, issued by Rocky Mountain Chocolate Factory, Inc. to Alpine Bank.*
10.3
Commercial Security Agreement, dated October 16, 2026, between Rocky Mountain Chocolate Factory, Inc. and Alpine Bank.
10.4
Contract to Buy and Sell Real Estate (Commercial), effective September 30, 2026, between Rocky Mountain Chocolate Factory, Inc. and American Heritage Legacies, LLC (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 6, 2026).
10.5
Commercial Lease, dated October 1, 2026, between American Heritage Legacies, LLC and Rocky Mountain Chocolate Factory, Inc. (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed on October 6, 2026).
99.1
Press release of Rocky Mountain Chocolate Factory, Inc., dated October 19, 2026.
104
Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Portions of this exhibit (indicated by [***]) have been omitted
pursuant to Item 601(b)(10)(iv) of Regulation S-K.
2
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date: October 19, 2026
ROCKY MOUNTAIN CHOCOLATE FACTORY, INC.
By:
/s/ Carrie Cass
Carrie Cass
Chief Financial Officer
3
EX-10.1 — BUSINESS LOAN AGREEMENT, DATED OCTOBER 16, 2026, BETWEEN ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND ALPINE BANK
EX-10.1
Filename: ea030906801ex10-1.htm · Sequence: 2
Exhibit
10.1
EX-10.2 — PROMISSORY NOTE, DATED OCTOBER 16, 2026, ISSUED BY ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. TO ALPINE BANK
EX-10.2
Filename: ea030906801ex10-2.htm · Sequence: 3
Exhibit
10.2
EX-10.3 — COMMERCIAL SECURITY AGREEMENT, DATED OCTOBER 16, 2026, BETWEEN ROCKY MOUNTAIN CHOCOLATE FACTORY, INC. AND ALPINE BANK
EX-10.3
Filename: ea030906801ex10-3.htm · Sequence: 4
Exhibit 10.3
EX-99.1 — PRESS RELEASE OF ROCKY MOUNTAIN CHOCOLATE FACTORY, INC., DATED OCTOBER 19, 2026
EX-99.1
Filename: ea030906801ex99-1.htm · Sequence: 5
Exhibit 99.1
Rocky
Mountain Chocolate Factory Reports Fiscal Second Quarter 2027 Financial Results
Management
to Host Conference Call Monday at 5:00 p.m. ET
DURANGO, Colo.,
October 19, 2026 (GLOBE NEWSWIRE) -- Rocky Mountain
Chocolate Factory, Inc. (Nasdaq: RMCF) (the “Company” or “RMCF”), America’s Chocolatier®
since 1981, is reporting financial and operating results for its second quarter of fiscal 2027, which ended August 31, 2026.
“Since stepping into the Interim CEO role,
I have been encouraged by the way our leadership team has come together around a shared set of priorities for the business,” said
Allen Harper, Interim CEO. “With COO David Denker leading our day-to-day operations, our teams are increasingly aligned across the
business. That alignment is strengthening accountability and decision-making as we build a stronger organization and position Rocky Mountain
Chocolate Factory for sustainable growth and long-term shareholder value.”
David Denker, Chief Operating Officer, added,
“During the second quarter, we made progress improving production and execution across the business. August was our highest production
and shipping month of the calendar year. Increasing production volume from our Durango facility remains a key priority as we prepare for
the holiday season. Enhancements to our reporting platform, combined with our ERP capabilities, are providing our teams with greater visibility
into demand, inventory and production requirements. These operational improvements, together with our continued focus on production efficiency
and execution, contributed to the recovery in gross margin during the quarter. We believe there is additional opportunity to build on
this progress as we move through the holiday season.”
Mr. Denker continued, “The acquisition of
Chino Hills in July 2026 expanded our company-owned store base to five locations, while new franchised stores opened in Folsom, California,
and Tinton Falls, New Jersey. As we grow our footprint and continue to enhance operations, we remain focused on consistent execution,
supporting our franchisees and preserving the product quality and longstanding recipes that distinguish Rocky Mountain Chocolate Factory.”
Fiscal Second Quarter 2027 Financial Results
vs. Fiscal Second Quarter 2026
● Total revenue was $6.7 million for the second
quarter of fiscal 2027 compared to $6.8 million in the second quarter of fiscal 2026. Primarily due to lower Durango product sales and
royalty and marketing fees which offset the increase in retail sales, driven by the larger company-owned store base and price increases.
● Total product and retail gross profit increased
to $0.4 million in the second quarter of fiscal 2027 compared to a gross loss of less than $0.1 million in the second quarter of fiscal
2026. Gross margin improved to 8.0% from (0.6)%, reflecting pricing actions and production efficiencies.
● Total costs and expenses were $7.7 million in
the second quarter of fiscal 2027, up from $7.3 million in the second quarter of fiscal 2026. The increase primarily reflects the larger
company-owned store base and higher franchise and general and administrative costs. These increases were partially offset by lower cost
of sales and sales and marketing expenses.
● Net loss was $1.3 million or $(0.14) per share
for the second quarter of fiscal 2027, compared to a net loss of $0.7 million or $(0.09) per share in the second quarter of fiscal 2026.
● EBITDA loss was $0.7 million in the second quarter
of fiscal 2027 compared to a loss of $0.1 million in the second quarter of fiscal 2026.
In the fiscal second quarter, the Board formed
a strategic committee, which with the assistance of its advisors, is exploring strategic alternatives that may be available to the Company.
Alternatives may include, among other things, a possible sale, merger, or other business combination, or a going-private transaction.
In connection with this process, the Company has received expressions of interest from third parties. There can be no assurance that this
review of strategic alternatives will result in any transaction or other strategic change.
Subsequent Events
Subsequent to quarter end, the Company completed
a $6.6 million sale-leaseback transaction with American Heritage Legacies, LLC for its manufacturing facility located in Durango, Colorado.
The sale was completed and the lease commenced on October 16, 2026. Net proceeds from the sale of the property have been used to repay
$6.6 million in debt, which bears interest at 12% per annum. In connection with the repayment, the Company incurred prepayment penalties
and related costs of $0.3 million.
On October 16, 2026, the Company entered into
a loan agreement with Alpine Bank, where the Company received an advance of $2.0 million for working capital purposes. The loan matures
on October 16, 2028, and bears interest at the prime rate plus 1%. Additional information is included in the Company’s Quarterly
Report on Form 10-Q for the quarter ended August 31, 2026.
Conference Call Information
The Company will conduct a conference call to
discuss its financial results. There will be no question-and-answer session. The conference call details are as follows:
Date: Monday, October 19, 2026
Time: 5:00 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here
Please dial into the conference call 5-10 minutes
prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference
call, please contact the Company’s investor relations team at RMCF@elevate-ir.com.
The conference call will also be broadcast live
and available for replay in the investor relations section of the Company’s website at https://ir.rmcf.com/.
About Rocky Mountain Chocolate Factory, Inc.
Rocky Mountain Chocolate Factory, Inc. is a leading
franchisor, manufacturer and retailer of premium chocolates and other confectionery products. As America’s Chocolatier®
since 1981, the Company produces an extensive assortment of premium chocolates, gourmet caramel apples and other handcrafted confections.
Headquartered in Durango, Colorado, Rocky Mountain Chocolate Factory is ranked among Entrepreneur’s Franchise 500®
for 2026. Together with its franchisees and licensees, the Company operates approximately 250 Rocky Mountain Chocolate Factory locations
across the United States and internationally. The Company’s common stock is listed on the Nasdaq Capital Market under the symbol
“RMCF.”
2
Forward-Looking Statements
This press release includes statements of our
expectations, intentions, plans and beliefs that constitute “forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come
within the safe harbor protection provided by those sections. These forward-looking statements involve various risks and uncertainties.
The statements, other than statements of historical fact, included in this press release are forward-looking statements. Many of the forward-looking
statements contained in this document may be identified by the use of forward-looking words such as “will,” “intend,”
“believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “potential,”
or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking.
All statements that address operating performance, events or developments that we expect or anticipate will occur in the future - including
statements regarding future financial and operating results and anticipated outcomes of our business strategy and plan, our liquidity
and ability to continue as a going concern, our strategic review and any resulting transaction, the anticipated benefits of the sale-leaseback
of our Durango facility and our credit facility with Alpine Bank, our efforts to improve production, fulfillment and distribution and
pursuit of higher-margin product opportunities are forward-looking statements. Management of the Company believes that these forward-looking
statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements
because such statements speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition,
forward-looking statements are subject to certain risks and uncertainties that could cause our Company’s actual results to differ
materially from historical experience and our present expectations or projections. These risks and uncertainties include, but are not
limited to: inflationary impacts, changes in the confectionery business environment, seasonality, consumer interest in our products, receptiveness
of our products internationally, consumer and retail trends, costs and availability of raw materials, competition, the success of our
co-branding strategy, the success of international expansion efforts and the effect of government regulations. For a detailed discussion
of the risks and uncertainties that may cause our actual results to differ from the forward-looking statements contained herein, please
see the section entitled “Risk Factors” contained in our periodic reports, each filed with the Securities and Exchange Commission.
Investor Contact
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
RMCF@elevate-ir.com
Media Contact
Raymond Barrett
Director of Marketing
(305) 801-5641
rbarrett@rmcf.net
3
Rocky Mountain Chocolate Factory, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
Six Months Ended
August 31,
August 31,
2026
2025
2026
2025
Revenues
Sales
$ 5,310
$ 5,183
$ 10,191
$ 9,900
Franchise and royalty fees
1,342
1,640
2,574
3,296
Total revenue
6,652
6,823
12,765
13,196
Costs and Expenses
Cost of sales
4,887
5,216
9,589
9,608
Franchise costs
784
552
1,275
1,147
Sales and marketing
162
223
352
429
General and administrative
1,328
976
2,608
1,977
Retail operating
435
227
752
433
Depreciation and amortization, exclusive of depreciation and amortization expense of $232, $238, $459 and $465, respectively, included in cost of sales
141
108
280
226
Total costs and expenses
7,737
7,302
14,856
13,820
Loss from Operations
(1,085 )
(479 )
(2,091 )
(624 )
Other Income (Expense)
Interest expense
(211 )
(190 )
(419 )
(378 )
Interest income
15
7
61
16
Other (expense) income, net
(196 )
(183 )
(358 )
(362 )
Loss Before Income Taxes
(1,281 )
(662 )
(2,449 )
(986 )
Income Tax Provision (Benefit)
-
-
-
-
Net Loss
$ (1,281 )
$ (662 )
$ (2,449 )
$ (986 )
Basic Loss per Common Share
$ (0.14 )
$ (0.09 )
$ (0.26 )
$ (0.13 )
Diluted Loss per Common Share
$ (0.14 )
$ (0.09 )
$ (0.26 )
$ (0.13 )
Weighted Average Common Shares Outstanding - Basic
9,447,259
7,786,384
9,418,824
7,764,351
Dilutive Effect of Employee Stock Awards
-
-
-
-
Weighted Average Common Shares Outstanding - Diluted
9,447,259
7,786,384
9,418,824
7,764,351
4
Rocky Mountain Chocolate Factory, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
August 31,
2026
(unaudited)
February 28,
2026
Assets
Current Assets
Cash and cash equivalents
$ 416
$ 1,218
Accounts receivable, less allowance for credit losses of $128 and $128, respectively
2,951
2,545
Notes receivable, current portion, less current portion of the allowance for credit losses of $28 and $28, respectively
63
59
Refundable income taxes
56
58
Inventories
2,588
4,057
Prepaid expenses
1,003
831
Total current assets
7,077
8,768
Property and Equipment, Net
8,724
8,775
Other Assets
Notes receivable
6
36
Goodwill
576
576
Intangible assets, net
691
733
Lease right of use asset
1,706
1,310
Other
14
14
Total other assets
2,993
2,669
Total Assets
$ 18,794
$ 20,212
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable
$ 4,922
$ 5,088
Accrued salaries and wages
441
406
Notes payable
6,780
-
Gift card liabilities
654
654
Other accrued expenses
286
64
Contract liabilities
106
105
Lease liability
416
282
Total current liabilities
13,605
6,599
Notes payable, less current portion
114
6,568
Lease liability, less current portion
1,324
1,054
Contract liabilities, less current portion
538
575
Deferred income taxes
187
187
Total Liabilities
15,768
14,983
Commitments and Contingencies
Stockholders’ Equity
Preferred stock, $0.001 par value per share; 250,000 shares authorized; 0 shares issued and outstanding
-
-
Common stock, $0.001 par value, 46,000,000 shares authorized, 9,518,636 shares and 9,354,620 shares issued and outstanding, respectively
10
9
Additional paid-in capital
15,413
15,168
Accumulated deficit
(12,397 )
(9,948 )
Total stockholders’ equity
3,026
5,229
Total Liabilities and Stockholders’ Equity
$ 18,794
$ 20,212
5
Rocky Mountain Chocolate Factory, Inc. and Subsidiaries
Condensed Consolidated Computation of Adjusted
Gross Margin
(In Thousands)
(Unaudited)
Three Months Ended
August 31,
Six Months Ended
August 31,
2026
2025
2026
2025
Total gross margin
$ 423
$ (33 )
$ 602
$ 292
Plus: depreciation and amortization
232
238
459
465
Total Adjusted Gross Margin (non-GAAP measure)
$ 655
$ 205
$ 1,061
$ 757
Total Adjusted Gross Margin (non-GAAP measure)
12.3 %
4.0 %
20.0 %
14.6 %
Rocky Mountain Chocolate Factory, Inc. and Subsidiaries
Condensed Consolidated Computation of EBITDA
(In Thousands)
(Unaudited)
Three Months Ended
August 31,
Six Months Ended
August 31,
2026
2025
2026
2025
Net loss
$ (1,281 )
$ (662 )
$ (2,449 )
$ (986 )
Plus: depreciation and amortization
373
346
739
691
Plus: interest
196
183
358
362
Total
$ (712 )
$ (133 )
$ (1,352 )
$ 67
Non-GAAP Financial Measures
This press release includes non-GAAP financial
measures, EBITDA loss and Adjusted Gross Margin. The Company defines EBITDA loss as net earnings before interest, taxes on income, and
depreciation and amortization. The Company defines Adjusted Gross Margin as gross margin plus depreciation and amortization included in
the cost of sales. Reconciliations of EBITDA loss and Adjusted Gross Margin with their most directly comparable GAAP measure is included
in this press release.
These are supplemental measures of performance
that are not required by, or presented in accordance with, GAAP. The Company believes Adjusted Gross Margin is useful to investors, as
a supplement to gross margin and other performance measures calculated in accordance with GAAP, because it provides a measure of operating
performance that is unaffected by non-cash depreciation and amortization. Management also uses Adjusted Gross Margin, rather than gross
margin, to make incremental pricing decisions. The Company believes EBITDA (loss) is useful to investors because it helps them evaluate
the Company’s core operating performance without the effects of financing decisions, income taxes and non-cash depreciation and amortization,
and management uses EBITDA (loss) to evaluate the Company’s operating performance from period to period.
EBITDA (loss) and Adjusted Gross Margin have limitations
as analytical tools because they exclude the impact of depreciation and amortization expense and, in the case of EBITDA (loss), interest
and income taxes. They should not be considered in isolation or as a substitute for any measure reported under GAAP. The Company’s use
of capital assets makes depreciation and amortization expense a necessary element of its costs and its ability to generate income. Because
of these limitations, the Company uses EBITDA (loss) and Adjusted Gross Margin only in conjunction with GAAP measures of performance,
such as net loss and gross margin. In addition, other companies may calculate similarly titled measures differently, so the Company’s
non-GAAP financial measures may not be comparable to those of other companies.
6
GRAPHIC
GRAPHIC
Filename: ea030906801_img1.jpg · Sequence: 6
Binary file (2065 bytes)
Download ea030906801_img1.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-1img1.jpg · Sequence: 7
Binary file (828444 bytes)
Download ea030906801_ex10-1img1.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-1img2.jpg · Sequence: 8
Binary file (917218 bytes)
Download ea030906801_ex10-1img2.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-1img3.jpg · Sequence: 9
Binary file (941336 bytes)
Download ea030906801_ex10-1img3.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-1img4.jpg · Sequence: 10
Binary file (877972 bytes)
Download ea030906801_ex10-1img4.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-1img5.jpg · Sequence: 11
Binary file (940840 bytes)
Download ea030906801_ex10-1img5.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-1img6.jpg · Sequence: 12
Binary file (823091 bytes)
Download ea030906801_ex10-1img6.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-1img7.jpg · Sequence: 13
Binary file (125641 bytes)
Download ea030906801_ex10-1img7.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-2img1.jpg · Sequence: 14
Binary file (906338 bytes)
Download ea030906801_ex10-2img1.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-2img2.jpg · Sequence: 15
Binary file (854078 bytes)
Download ea030906801_ex10-2img2.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-2img3.jpg · Sequence: 16
Binary file (1209694 bytes)
Download ea030906801_ex10-2img3.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-3img1.jpg · Sequence: 17
Binary file (813126 bytes)
Download ea030906801_ex10-3img1.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-3img2.jpg · Sequence: 18
Binary file (961390 bytes)
Download ea030906801_ex10-3img2.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-3img3.jpg · Sequence: 19
Binary file (950383 bytes)
Download ea030906801_ex10-3img3.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-3img4.jpg · Sequence: 20
Binary file (911033 bytes)
Download ea030906801_ex10-3img4.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-3img5.jpg · Sequence: 21
Binary file (884066 bytes)
Download ea030906801_ex10-3img5.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex10-3img6.jpg · Sequence: 22
Binary file (425617 bytes)
Download ea030906801_ex10-3img6.jpg
GRAPHIC
GRAPHIC
Filename: ea030906801_ex99-1img1.jpg · Sequence: 23
Binary file (2809 bytes)
Download ea030906801_ex99-1img1.jpg
XML — IDEA: XBRL DOCUMENT
XML
Filename: R1.htm · Sequence: 28
v3.26.3
Cover
Oct. 16, 2026
Cover [Abstract]
Document Type
8-K
Amendment Flag
false
Document Period End Date
Oct. 16, 2026
Entity File Number
001-36865
Entity Registrant Name
Rocky Mountain Chocolate Factory, Inc.
Entity Central Index Key
0001616262
Entity Tax Identification Number
47-1535633
Entity Incorporation, State or Country Code
DE
Entity Address, Address Line One
265 Turner Drive
Entity Address, City or Town
Durango
Entity Address, State or Province
CO
Entity Address, Postal Zip Code
81303
City Area Code
970
Local Phone Number
259-0554
Written Communications
false
Soliciting Material
false
Pre-commencement Tender Offer
false
Pre-commencement Issuer Tender Offer
false
Title of 12(b) Security
Common Stock, $0.001 par value per share
Trading Symbol
RMCF
Security Exchange Name
NASDAQ
Entity Emerging Growth Company
false
X
- Definition
Boolean flag that is true when the XBRL content amends previously-filed or accepted submission.
+ References
No definition available.
+ Details
Name:
dei_AmendmentFlag
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Area code of city
+ References
No definition available.
+ Details
Name:
dei_CityAreaCode
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Cover page.
+ References
No definition available.
+ Details
Name:
dei_CoverAbstract
Namespace Prefix:
dei_
Data Type:
xbrli:stringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
+ References
No definition available.
+ Details
Name:
dei_DocumentPeriodEndDate
Namespace Prefix:
dei_
Data Type:
xbrli:dateItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
+ References
No definition available.
+ Details
Name:
dei_DocumentType
Namespace Prefix:
dei_
Data Type:
dei:submissionTypeItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Address Line 1 such as Attn, Building Name, Street Name
+ References
No definition available.
+ Details
Name:
dei_EntityAddressAddressLine1
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Name of the City or Town
+ References
No definition available.
+ Details
Name:
dei_EntityAddressCityOrTown
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Code for the postal or zip code
+ References
No definition available.
+ Details
Name:
dei_EntityAddressPostalZipCode
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Name of the state or province.
+ References
No definition available.
+ Details
Name:
dei_EntityAddressStateOrProvince
Namespace Prefix:
dei_
Data Type:
dei:stateOrProvinceItemType
Balance Type:
na
Period Type:
duration
X
- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityCentralIndexKey
Namespace Prefix:
dei_
Data Type:
dei:centralIndexKeyItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Indicate if registrant meets the emerging growth company criteria.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityEmergingGrowthCompany
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
+ References
No definition available.
+ Details
Name:
dei_EntityFileNumber
Namespace Prefix:
dei_
Data Type:
dei:fileNumberItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Two-character EDGAR code representing the state or country of incorporation.
+ References
No definition available.
+ Details
Name:
dei_EntityIncorporationStateCountryCode
Namespace Prefix:
dei_
Data Type:
dei:edgarStateCountryItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityRegistrantName
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
+ Details
Name:
dei_EntityTaxIdentificationNumber
Namespace Prefix:
dei_
Data Type:
dei:employerIdItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Local phone number for entity.
+ References
No definition available.
+ Details
Name:
dei_LocalPhoneNumber
Namespace Prefix:
dei_
Data Type:
xbrli:normalizedStringItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
+ Details
Name:
dei_PreCommencementIssuerTenderOffer
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
+ Details
Name:
dei_PreCommencementTenderOffer
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Title of a 12(b) registered security.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
+ Details
Name:
dei_Security12bTitle
Namespace Prefix:
dei_
Data Type:
dei:securityTitleItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Name of the Exchange on which a security is registered.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection d1-1
+ Details
Name:
dei_SecurityExchangeName
Namespace Prefix:
dei_
Data Type:
dei:edgarExchangeCodeItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14a
-Subsection 12
+ Details
Name:
dei_SolicitingMaterial
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Trading symbol of an instrument as listed on an exchange.
+ References
No definition available.
+ Details
Name:
dei_TradingSymbol
Namespace Prefix:
dei_
Data Type:
dei:tradingSymbolItemType
Balance Type:
na
Period Type:
duration
X
- Definition
Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.
+ References
Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
+ Details
Name:
dei_WrittenCommunications
Namespace Prefix:
dei_
Data Type:
xbrli:booleanItemType
Balance Type:
na
Period Type:
duration