Educational Development Corp Files Q1 2024 10-Q

TL;DR

EDC filed its 10-Q for Q1 2024. All financials are in there.

AI Summary

Educational Development Corporation filed its 10-Q for the quarterly period ended May 31, 2024. The company, incorporated in Delaware, operates in the wholesale-miscellaneous nondurable goods sector. Its principal business address is in Tulsa, Oklahoma.

Why It Matters

This filing provides investors with the latest financial performance and operational details for Educational Development Corporation for the specified quarter.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Numbers

• 000-04957 — Commission File Number (Identifies the company's filing with the SEC.)
• 73-0750007 — IRS Number (Company's Employer Identification Number.)

Key Players & Entities

• EDUCATIONAL DEVELOPMENT CORP (company) — Registrant
• May 31, 2024 (date) — Quarterly period end date
• 000-04957 (other) — Commission file number
• 73-0750007 (other) — IRS Number
• Delaware (other) — State of incorporation

FAQ

Key Financial Figures

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

Filing Documents

• edc20240531_10q.htm (10-Q) — 887KB
• ex_697732.htm (EX-31.1) — 13KB
• ex_697733.htm (EX-31.2) — 14KB
• ex_697734.htm (EX-32.1) — 6KB
• 0001185185-24-000695.txt ( ) — 4862KB
• educ-20240531.xsd (EX-101.SCH) — 48KB
• educ-20240531_cal.xml (EX-101.CAL) — 45KB
• educ-20240531_def.xml (EX-101.DEF) — 216KB
• educ-20240531_lab.xml (EX-101.LAB) — 374KB
• educ-20240531_pre.xml (EX-101.PRE) — 213KB
• edc20240531_10q_htm.xml (XML) — 544KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 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 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 29 Item 4. Mine Safety Disclosures 29 Item 5. Other Information 29 Item 6. Exhibits 30

Signatures

Signatures 31 Table of Contents 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, cybersecurity threats and incidents; 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

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS EDUCATIONAL DEVELOPMENT CORPORATION CONDENSED BALANCE SHEETS (UNAUDITED) May 31, February 29, ASSETS 2024 2024 CURRENT ASSETS: Cash and cash equivalents $ 1,141,200 $ 844,500 Restricted cash 888,200 432,900 Accounts receivable, less allowance for credit losses of $ 135,900 (May 31) and $ 129,000 (February 29) 2,314,500 1,936,900 Inventories - net 38,977,200 43,913,200 Prepaid expenses and other assets 651,500 630,800 Assets held for sale 18,281,100 18,281,100 Total current assets 62,253,700 66,039,400 INVENTORIES - net 13,751,600 11,677,000 PROPERTY, PLANT AND EQUIPMENT - net 8,575,500 8,939,600 DEFERRED INCOME TAX ASSET 1,545,300 1,406,500 OPERATING LEASE RIGHT-OF-USE ASSETS 1,447,900 1,614,900 OTHER ASSETS 436,800 427,600 TOTAL ASSETS $ 88,010,800 $ 90,105,000 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 3,693,000 $ 3,910,200 Line of credit 5,598,100 5,498,100 Deferred revenues 450,800 583,500 Operating lease liabilities, current 688,100 726,900 Current maturities of long-term debt 1,800,000 1,800,000 Accrued salaries and commissions 804,400 384,400 Income taxes payable 1,109,000 773,400 Other current liabilities 2,490,700 3,338,100 Total current liabilities 16,634,100 17,014,600 LONG-TERM DEBT - net 26,201,900 26,640,700 OPERATING LEASE LIABILITIES, non-current 759,800 888,000 OTHER LONG-TERM LIABILITIES 111,000 111,000 Total liabilities 43,706,800 44,654,300 SHAREHOLDERS' EQUITY: Common stock, $ 0.20 par value; Authorized 16,000,000 shares; Issued 12,702,080 shares; Outstanding 8,579,088 (May 31) and 8,575,088 (February 29) shares 2,540,400 2,540,400 Capital in excess of par value 13,502,100 13,405,400 Retained earnings 41,287,600 42,566,600 Accumulated other comprehensive income 47,300 24,400 57,377,400 58,536,800 Less t

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View this 10-Q filing on SEC EDGAR