Customers of Rocky Mountain Chocolate Factory Inc saw their costs of revenue decline by -11.9 % in Q1 compare to a year ago, sequentially costs of revenue were trimmed by -14.75 %, for the same period Rocky Mountain Chocolate Factory Inc revnue deteriorated by -4.08 % year on year, sequentially revenue fell by -9.54 %.

• List of RMCF Customers

Customers Net Income grew in Q1 by	Customers Net margin grew to
55.37 %	10.39 %

Customers Net Income grew in Q1 by 55.37 %

Customers Net margin grew to 10.39 %

We rely primarily on in-store promotion and point-of-purchase materials to promote the sale of our products. The monthly marketing fees collected from franchisees are used by us to develop new packaging and in-store promotion and point-of-purchase materials, and to create and update our local store marketing handbooks.

We focus on local store marketing efforts by providing customizable marketing materials, including advertisements, coupons, flyers and mail order catalogs generated by our in-house Creative Services department. The department works directly with franchisees to implement local store marketing programs.

We have not historically, and do not intend to, engage in national traditional media advertising in the near future. Consistent with our commitment to community support, we aggressively seek opportunities to participate in local and regional events, sponsorships and charitable causes. This support leverages low cost, high return publicity opportunities for mutual gain partnerships. Through programs such as Fudge for Troops, and collaborations with Sylvan Learning Centers and other national/local organizations focused on youth/leadership development and underserved populations in our community we have developed relationships that define our principal platforms, and contribute to charitable causes that provide great benefits at a national level.