Rocky Mountain Chocolate Factory, Inc. operates a franchised/licensed retail network specializing in premium chocolates and confectionery. The company reported covenant non-compliance on its debt agreements as of November 30, 2025, but received waivers through August 31, 2026, while reducing borrowings post-quarter. It raised approximately $2.7 million via equity issuance in December 2025 to bolster liquidity. Inflationary pressures on raw materials, labor, and freight continue to weigh on margins despite adjusted gross margin improvements. Growth efforts focus on expanding and remodeling franchise stores, enhancing e-commerce and delivery channels, and driving premium product sales. Key risks include supply chain volatility, seasonal demand fluctuations, franchisee execution variability, and financial leverage constraints.