Educational Development Corp. Files 10-Q for Period Ended November 30, 2023

TL;DR

<b>Educational Development Corp. filed its quarterly report (10-Q) for the period ending November 30, 2023, detailing its financial status and operations.</b>

AI Summary

EDUCATIONAL DEVELOPMENT CORP (EDUC) filed a Quarterly Report (10-Q) with the SEC on January 11, 2024. Filed a 10-Q report for the quarterly period ended November 30, 2023. The company is registered under the 1934 Act with SEC file number 000-04957. Educational Development Corporation is incorporated in Delaware and has an IRS number of 73-0750007. The principal executive offices are located at 5402 South 122nd East Ave, Tulsa, Oklahoma 74146. The company's common stock, $.20 par value, is traded under the symbol EDUC on NASDAQ.

Why It Matters

For investors and stakeholders tracking EDUCATIONAL DEVELOPMENT CORP, this filing contains several important signals. This filing provides investors with the latest financial performance and operational updates for Educational Development Corp. for the specified quarter. As a smaller reporting company, this 10-Q is crucial for understanding its financial health and compliance with SEC regulations.

Risk Assessment

Risk Level: low — EDUCATIONAL DEVELOPMENT CORP shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant financial shifts or new risks, indicating a routine disclosure for a smaller reporting company.

Analyst Insight

Review the full 10-Q filing for detailed financial statements and management discussion to assess the company's performance and outlook.

Key Numbers

• November 30, 2023 — Quarterly Period End Date (CONFORMED PERIOD OF REPORT)
• January 11, 2024 — Filing Date (FILED AS OF DATE)
• 000-04957 — SEC File Number (Commission file number)
• $.20 — Par Value of Common Stock (Securities registered pursuant to Section 12(b) of the Act)
• EDUC — Trading Symbol (Securities registered pursuant to Section 12(b) of the Act)

Key Players & Entities

• EDUCATIONAL DEVELOPMENT CORP (company) — COMPANY CONFORMED NAME
• 0001185185-24-000066 (other) — ACCESSion NUMBER
• 20231130 (date) — CONFORMED PERIOD OF REPORT
• 20240111 (date) — FILED AS OF DATE
• 000-04957 (other) — Commission file number
• Delaware (location) — State or other jurisdiction of incorporation or organization
• 73-0750007 (other) — I.R.S. Employer Identification No.
• 5402 South 122nd East Ave, Tulsa, Oklahoma 74146 (address) — Address of principal executive offices

FAQ

Risk Factors

• Filing Requirements [low — regulatory]: The company has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months.
• Interactive Data File Submission [low — regulatory]: The registrant has submitted electronically every Interactive Data File required pursuant to Rule 405 of Regulation S-T during the preceding 12 months.
• Filer Status [low — regulatory]: Educational Development Corporation is classified as a Non-accelerated filer and a Smaller reporting company.

Key Financial Figures

• $0.20 — l Development Corporation Common Stock, $0.20 par value outstanding. TABLE OF CONTEN

Filing Documents

• edc20231130_10q.htm (10-Q) — 1116KB
• ex_614256.htm (EX-31.1) — 14KB
• ex_614259.htm (EX-31.2) — 14KB
• ex_614258.htm (EX-32.1) — 6KB
• 0001185185-24-000066.txt (&nbsp;) — 5429KB
• educ-20231130.xsd (EX-101.SCH) — 52KB
• educ-20231130_cal.xml (EX-101.CAL) — 49KB
• educ-20231130_def.xml (EX-101.DEF) — 221KB
• educ-20231130_lab.xml (EX-101.LAB) — 418KB
• educ-20231130_pre.xml (EX-101.PRE) — 231KB
• edc20231130_10q_htm.xml (XML) — 760KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited) 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3. Defaults Upon Senior Securities 34 Item 4. Mine Safety Disclosures 34 Item 5. Other Information 34 Item 6. Exhibits 35

Signatures

Signatures 36 CAUTIONARY REMARKS REGARDING FORWARD-LOOKING STATEMENTS The information discussed in this Quarterly Report on Form 10-Q includes " forward-looking statements. " These forward-looking statements are identified by their use of terms and phrases such as " may, " " expect, " " estimate, " " project, " " plan, " " believe, " " intend, " " achievable, " " anticipate, " " continue, " " potential, " " should, " " could, " and similar terms and phrases. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they do involve certain assumptions, risks and uncertainties and we can give no assurance that such expectations or assumptions will be achieved. Known and unknown risks, uncertainties and other factors may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, our success in recruiting and retaining new brand partners (formerly consultants), our ability to locate and procure desired books, product and supplier concentrations, our relationship with our primary supplier and the related distribution requirements and contractual limitations, adverse publicity associated with our Company or the industry, our ability to ship timely, changes to our primary sales channels, including social media and party plan platforms, changing consumer preferences and demands, legal matters, reliance on information technology infrastructure, restrictions imposed by covenants in the agreements governing our indebtedness, our ability to obtain adequate financing for working capital and capital expenditures, economic and competitive conditions, regulatory changes and other uncertainties, outstanding impacts from the COVID-19 pandemic, as well as those factors discussed below and e

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS EDUCATIONAL DEVELOPMENT CORPORATION CONDENSED BALANCE SHEETS (UNAUDITED) November 30, February 28, ASSETS 2023 2023 CURRENT ASSETS Cash and cash equivalents $ 3,141,000 $ 689,100 Restricted cash 1,100,500 - Accounts receivable, less allowance for doubtful accounts of $ 144,300 (November 30) and $ 211,700 (February 28) 1,845,000 2,906,700 Inventories – net 48,227,600 59,086,500 Prepaid expenses and other assets 711,700 869,300 Assets held for sale 18,281,100 - Total current assets 73,306,900 63,551,600 LONG-TERM INVENTORIES - net 9,701,500 4,719,600 PROPERTY, PLANT AND EQUIPMENT - net 9,267,700 29,656,400 DEFERRED INCOME TAX ASSET 996,300 796,800 OTHER ASSETS 2,226,300 1,212,400 TOTAL ASSETS $ 95,498,700 $ 99,936,800 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 5,135,100 $ 3,863,900 Line of credit 4,998,100 10,634,500 Deferred revenues 2,094,300 602,700 Current maturities of term debt 1,800,000 34,894,900 Accrued salaries and commissions 1,286,100 828,200 Income taxes payable 961,700 - Other current liabilities 3,888,700 3,294,000 Total current liabilities 20,164,000 54,118,200 LONG-TERM DEBT – net 27,079,400 - OTHER LONG-TERM LIABILITIES 1,140,300 586,800 Total liabilities 48,383,700 54,705,000 SHAREHOLDERS' EQUITY Common stock, $ 0.20 par value; Authorized 16,000,000 shares; Issued 12,702,080 (November 30 and February 28) shares; Outstanding 8,571,088 (November 30) and 8,713,289 (February 28) shares 2,540,400 2,540,400 Capital in excess of par value 13,464,100 13,193,400 Retained earnings 44,181,200 42,020,200 Accumulated other comprehensive income 15,400 - 60,201,100 57,754,000 Less treasury stock, at cost ( 13,086,100 ) ( 12,522,200 ) Total shareholders' equity 47,115,000 45,231,800 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

View Full Filing

View this 10-Q filing on SEC EDGAR