GlobeNewswire Inc | Feb 12, 2021 04:25PM EST

February 12, 2021

DEERFIELD, Ill., Feb. 12, 2021 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB) announced its financial results for its fiscal year-ended November 30, 2020, reporting a loss of $66,000, or $0.01 per share. For the year-ended November 30, 2020, BAB, Inc. had revenues of $2,372,000 and a loss of $66,000, or $0.01 per share, versus revenues of $3,070,000 and net income of $449,000, or $0.06 per share, for the same period in 2019.

Income from operations for fiscal 2020 is $233,000 compared to $473,000 in 2019. In fiscal 2020 a deferred tax asset was reversed in the amount of $200,000 and a deferred tax liability was recorded in the amount of $85,000 creating a noncash deferred tax expense of $285,000 which reduced the operating income from $233,000 to a net loss of $66,000. The tax adjustments that affected net income were due to Federal net operating losses (NOLs) that were unused and expired in 2020. All NOLs did not expire in 2020.

Total operating expenses for the year ended November 30, 2019, were $2,138,000 versus $2,596,000 for the year ended November 30, 2019.

During fiscal 2020 BAB Systems, Inc., a wholly owned subsidiary of BAB, Inc. received a Payroll Protection Program loan (PPP) in the amount of $228,000 which was forgiven in full on December 8, 2020.

BAB, Inc. franchises and licenses Big Apple Bagels, My Favorite Muffin, SweetDuet and Brewsters Coffee. The Companys stock is traded on the OTCQB under the symbol BABB and its web site can be visited at www.babcorp.com.

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Contact: BAB, Inc. Michael K. Murtaugh (847) 948-7520 Fax: (847) 405-8140 www.babcorp.com

BAB, INC. CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS Fiscal Year Ended 2020 2019 % Change REVENUES Royalty fees from franchised $ 1,379,153 $ 1,645,639 -16.2 % storesFranchise and area 21,955 33,817 -35.1 % development fee revenueLicensing fees and other 298,766 402,293 -25.7 % incomeMarketing Fund revenue 671,659 987,943 -32.0 % Total Revenue 2,371,533 3,069,692 -22.7 % OPERATING COSTS AND EXPENSES Selling, general and 1,462,921 1,606,211 -8.9 % administrativeDepreciation and 3,562 2,057 73.2 % amortizationMarketing Fund expenses 671,659 987,943 -32.0 % Total Operating Expense 2,138,142 2,596,211 -17.6 % Income before interest, 233,391 473,481 -50.7 % other and taxesInterest and other income 378 612 Income before provision for 233,769 474,093 -50.7 % income taxes Current tax expense (15,000 ) (25,000 ) -40.0 % Deferred tax expense (284,940 ) - NA Total Tax Provision (299,940 ) (25,000 ) Net (Loss)/Income $ (66,171 ) $ 449,093 -114.7 % (Loss)/Earnings per share - (0.01 ) 0.06 basic and dilutedAverage number of shares 7,263,508 7,263,508 outstanding