Rocky Mountain Chocolate Factory, Inc.

Item 1. Legal Proceedings

Other than the matter described under the heading "Litigation" in Note 13, "Commitments and Contingencies," of the Notes to the Condensed Consolidated Financial Statements included in Part I, Item I of this Quarterly Report, we are not aware of any pending legal actions that would, if determined adversely to us, have a material adverse effect on our business and operations.

We may, from time to time, become involved in disputes and proceedings arising in the ordinary course of business. In addition, as a public company, we are also potentially susceptible to litigation, such as asserting violations of securities laws. Any such claims, with or without merit, if not resolved, could be time-consuming and result in costly litigation. There can be no assurance that an adverse result in any future proceeding would not have a potentially material adverse effect on our business, results of operations, and financial condition.