BABB — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2026-10-13

• For the three months ended August 31, 2026 and August 31, 2025, the Company reported net income of $227,000 and $168,000, respectively. Total revenue of $908,000 increased $139,000, or 18.1%, for the three months ended August 31, 2026, as compared to total revenue of $769,000 for the three months en…

• Franchise fee revenue was $3,000 for the quarter ended August 31, 2026, unchanged from $3,000 for the quarter ended August 31, 2025. In the third quarter of 2026 and 2025 there were no transfers or store openings, and both years had normal amortization.

• Licensing fee and other income increased to $72,000 for the three months ended August 31, 2026, from $67,000 for the three months ended August 31, 2025, an increase of $5,000, or 7.5%. The increase was driven by an increase in nontraditional revenue of $11,000, offset by a decrease in settlement rev…

• Marketing fund revenues were $302,000 for the three months ended August 31, 2026, compared to $187,000 for the three months ended August 31, 2025, an increase of $115,000, or 61.5%. The increase in marketing fund revenues was offset by a corresponding $115,000 increase in marketing fund expenses.

• Total operating expenses of $607,000 for the quarter ended August 31, 2026 increased $57,000, or 10.4%, from $550,000 for the quarter ended August 31, 2025. The increase in 2026 operating expenses was primarily related to an increase in marketing fund expenses of $115,000 and an increase in professi…

Text removed vs the prior filing · source: 10-Q · 2026-07-13

• Franchise fee revenue was $7,000, for the quarter ended May 31, 2026, increased $3,000, or 75.0%, from $4,000 for May 31, 2025. In the second quarter 2026 and 2025 there was no transfers and then both years had normal annual amortization. In the second quarter 2026, there was one store opening.

• Licensing fee and other income increased to $69,000 for the three months ended May 31, 2026, from $66,000 for the three months ended May 31, 2025, an increase of $3,000, or 4.5%. The increase was driven by an increase in gift card breakage revenue of $18,000, offset by a decrease in sign shop revenu…

• Marketing fund revenues were $207,000 for the three months ended May 31, 2026, compared to $227,000 for the three months ended May 31, 2025, a decrease of $20,000, or 8.8%. The decrease in marketing fund revenues was offset by a corresponding $20,000 decrease in marketing fund expenses.

• Total operating expenses of $556,000 for the quarter ended May 31, 2026 decreased $52,000, or 8.6%, from $608,000 for the quarter ended May 31, 2025. The decrease in 2026 operating expenses was primarily related to a decrease in payroll expenses of $28,000, decrease in marketing fund expenses of $20…

• Earnings per share, as reported for basic and diluted outstanding shares, was $0.03 and $0.02 for the quarters ended May 31, 2026 and 2025, respectively.

Text added vs the prior filing · source: 10-Q · 2026-10-13

• Notes to Unaudited Condensed Consolidated Financial Statements

• For the Three and Nine Months ended August 31, 2026 and 2025

• Other current assets include a minority investment in AHQ Systems, Inc. The shares were issued to BAB, Inc. as compensation for consulting services and were recorded at a value of $2,250, based on fair market value at the time the services were performed. A total of 150,000 shares were issued, repre…

• In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures,” which is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 requires public business entities to disclose, on an annual basis, specific categories in the effectiv…

• The Company operates as a single operating and reportable segment consisting of its franchising and licensing operations. In accordance with ASC 280, Segment Reporting, as amended by ASU 2023-07, Improvements to Reportable Segment Disclosures, the Company’s chief operating decision maker assesses pe…

Text removed vs the prior filing · source: 10-Q · 2026-07-13

• Note 2 Summary of Significant Accounting Policies (Continued)

• Other current assets include a minority investment in AHQ Systems, Inc. The shares were issued to BAB, Inc. as compensation for consulting services and were recorded at a value of $2,250, based on fair market value at the time the services were performed. A total of 150,000 shares were issued, repre…

• In December 2023, the FASB issued ASU 2023-09, “Improvements to Income Tax Disclosures” which is intended to simplify various aspects related to accounting for income taxes. ASU 2023-09 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance …

• Accounting standards have established annual reporting standards for an enterprise’s operating segments and related disclosures about its products, services, geographic areas and major customers. The Company’s operations were a single reportable segment.

• The Company sells gift cards to its customers in its retail stores and through its Corporate office. The Company’s gift cards do not have an expiration date and are not redeemable for cash except where required by law. Revenue from gift cards is recognized upon redemption in exchange for product and…