Note 7 - Goodwill and Intangible Assets
9 Months Ended
Nov. 30, 2021
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7 – GOODWILL AND INTANGIBLE ASSETS

 

Goodwill and intangible assets consist of the following:

 

       

November 30, 2021

  

February 28, 2021

 
  

Amortization

Period (in years)

  

Gross Carrying

Value

  

Accumulated Amortization

  

Gross Carrying

Value

  

Accumulated Amortization

 

Intangible assets subject to amortization

                     
Store design  10   $394,826  $235,683  $394,826  $221,504 
Packaging licenses 3-5   120,830   120,830   120,830   120,830 
Packaging design  10    430,973   430,972   430,973   430,973 
Trademark/Non-competition agreements 5-20   556,339   351,349   556,339   333,715 
Franchise rights  20    5,979,637   3,791,146   5,979,637   3,459,873 

Total

  $7,482,605  $4,929,980  $7,482,605  $4,566,895 

Goodwill and intangible assets not subject to amortization

                 
Franchising segment                     
Company stores goodwill      $515,065      $515,065     
Franchising goodwill       97,318       97,318     
Manufacturing segment-goodwill       97,318       97,318     
Trademark       20,000       20,000     

Total

   729,701       729,701     
                      

Total Goodwill and Intangible Assets

  $8,212,306  $4,929,980  $8,212,306  $4,566,895 

 

Amortization expense related to intangible assets totaled $120,873 and $363,085 during the three and nine months ended November 30, 2021 compared to $137,050 and $428,411 during the three and nine months ended November 30, 2020, respectively.

 

At November 30, 2021, annual amortization of intangible assets, based upon the Company’s existing intangible assets and current useful lives, is estimated to be the following:

 

2022

  120,873 

2023

  409,393 

2024

  346,672 

2025

  294,427 

2026

  251,342 

Thereafter

  1,129,918 

Total

 $2,552,625