Risk factors

Rocky Mountain Chocolate Factory (RMCF) risk factors

Item 1A of every Rocky Mountain Chocolate Factory, Inc. 10-K on file, and what changed from one year to the next. Readings are automated and can be wrong; check the filing for the exact wording.

  • FY2026 10-K risk factors
    78 risks78 new34 dropped

    Financing risk is more prominent, with $1.2 million of insider-affiliated debt at 12% and quarterly covenants.

    Filed May 29, 2026
  • FY2025 10-K risk factors
    34 risks

    Company faces a going concern opinion following a $6.1 million net loss and $6.6 million operating cash burn in fiscal 2025. RMCF breached its $6.0 million credit agreement debt covenant, and the lender can demand immediate repayment. Franchisee reliance is absolute, with risks covering recruitment, third-party product shifts, and limited operational control. Sole manufacturing operations are concentrated in a single facility in Durango, Colorado.

    Filed Jun 20, 2025