6 unchanged sentences
Our fiscal year ends on February 28 (29).
−Removed: Our Company mission statement reflects “The future of our world depends on the education of our children.
−Removed: EDC delivers educational excellence one book at a time.
−Removed: We provide economic opportunity while fostering strong family values.
−Removed: We touch the lives of children for a lifetime.”
+Added: Our Company vision statement reflects “We believe that education is the catalyst for wonderment, kindness, and connection.
+Added: Our vision is to empower the world by sparking a child’s natural curiosity and lifelong love of learning through products and experiences that meet at the intersection of education and play.”
+Added: Our Company mission statement reflects “We are creating the story of tomorrow through people, products, and purpose.”
(b) Financial Information about Our Segments
We sell children’s books, educational toys and games and other related products (collectively referred to as “products” or “books”) through two business segments, which we refer to as “divisions” or “sales channels”:
−Removed: Direct Sales Division (“PaperPie”) – This division sells our books and products through independent brand partners direct to the customer.
+Added: Direct Sales Division (“PaperPie”) – This division sells our books and products through independent sales representatives (“Brand Partners”) direct to the customer.
Our Brand Partners sell our products in various ways, including hosting home parties, through social media collaboration platforms on the internet, hosting book fairs with school and public libraries and through other events.
1 unchanged sentence
Publishing Division (“EDC Publishing” or “Publishing”) – This is our trade division which markets through commissioned trade representatives who call on retail book, toy and specialty stores along with other retail outlets.
−Removed: This division also has in-house representatives marketing by telephone and email to these customers and potential customers.
+Added: This division also has in-house representatives marketing by telephone and email to other customers and potential customers.
This division markets to approximately 4,000 retail outlets.
In addition to exhibiting at national trade and regional bookselling shows, our products are featured in agency showrooms in AmericasMart Atlanta, Dallas Market Center, and Minneapolis Mart.
−Removed: Under the contracted terms in our new distribution agreement, the Company no longer had the rights to distribute Usborne’s products to retail customers effective November 15, 2022, at which date Usborne planned to engage a different distributor to supply their products to retail accounts.
−Removed: The November 15, 2022 transition date, at Usborne’s request, was extended until their new supplier can start distribution during 2023.
+Added: In accordance with our new distribution agreement, the Company no longer has the rights to distribute Usborne’s products to retail customers.
+Added: The distribution of Usborne’s products to retail customers was discontinued in early fiscal 2024, when Usborne moved to a new retail distribution vendor.
Percent of Net Revenues by Division
1 unchanged sentence
(c) Narrative Description of Business
−Removed: EDC’s current catalog contains approximately 2,000 titles, with new additions added four times per year across all lines of our products.
−Removed: Additionally, throughout the year, a similar number of titles that do not have sufficient sales are identified as “out of print” and these titles are no longer re-printed or included in future catalogs.
−Removed: The Company sells through the remaining quantities of these out of print titles through their normal sales channels at normal pricing and has not historically participated in the publishing industry’s “remainder” market.
+Added: EDC’s current catalog contains approximately 2,000 titles, with new additions added throughout the year across all lines of our products.
+Added: Additionally, a similar number of titles that do not have sufficient sales are identified as “out of print” and these titles are no longer re-printed or included in future catalogs.
+Added: The Company sells the remaining quantities of these out-of-print titles through their normal sales channels at normal pricing and has not historically participated in the publishing industry’s “remainder” market.
Many of our products are interactive in nature, including our touchy-feely board books, activity books and flashcards, adventure and search books, art books, sticker books, foreign language books, learning manipulatives and toys.
9 unchanged sentences
Our Publishing division faces competition from U.S.
−Removed: and international publishing companies that sell online and through the same retail bookstores, toy stores, and gift and novelty stores that offer a variety of non-book products.
−Removed: As of April 26, 2023, 138 full-time employees worked at our Tulsa, OK, San Diego, CA, Layton, UT and Seattle, WA facilities.
+Added: and international publishing companies that sell online and through the same retail bookstores, toy stores, and gift and novelty stores that also offer a variety of non-book products.
+Added: As of February 23, 2024, 101 full-time employees worked at our Tulsa, OK, San Diego, CA, and Layton, UT facilities.
Of these employees, approximately 50% work in our distribution warehouse in Tulsa, OK.
3 unchanged sentences
These reports will be provided electronically, free of charge, upon request.
−Removed: Employee Retention Credit
−Removed: In response to the COVID-19 pandemic, the U.S.
−Removed: government enacted the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which, among other things, included a provision related to the Employee Retention Credit.
−Removed: The Company applied the provisions of the CARES Act as applicable.
−Removed: In fiscal 2024, the Company applied for employee retention credits for Q1, Q2 and Q3 wages paid in calendar year 2021.
−Removed: In connection with the CARES Act, the Company adopted a policy to recognize the employee retention credit when realized under Accounting Standards Codification (“ASC”) 450-30, Gain Contingencies .
−Removed: Accordingly, the total requested credits of $3.6 million are not recorded in the Company’s financial statements until the credits are received, as the Company is not certain the credits will be issued.
We are a smaller reporting company and are not required to provide this information.
−Removed: UNRESOLVED STAFF COMMENTS
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.