Rocky Mountain Chocolate Factory, Inc.

Our production operations and corporate headquarters are located at 265 Turner Drive, Durango, Colorado 81303, which is a 53,000 square foot manufacturing facility that we own. During FY 2026, our manufacturing operations produced approximately 1.33 million pounds of chocolate products, which was a decrease of approximately 35% from the approximately 2.05 million pounds produced in FY 2025. In July 2024, we sold an unused parcel of land in Durango, Colorado for a purchase price of approximately $0.9 million.

The Company entered into three new leases during the year ended February 28, 2026, including the lease for the Durango retail location for 15 years in November 2025, for the Camarillo retail location for 10 years in August 2025, and the Miami office location for 3.5 years in August 2025 with a total increase in future lease payments of $1.3 million. The Company did not enter into any new leases during the year ended February 28, 2025. During the year ended February 29, 2024, the Company entered into new leases representing a future lease liability of $0.1 million. We do not deem these to be material in relation to our overall operations.

For information as to the amount of our rental obligations under leases on both Company-owned and franchised stores, see Note 10 “Leasing Arrangements” to our consolidated financial statements included in Item 8 of this Annual Report.