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Item 1. Business

2026-05-19 compared with 2025-05-19 · 81 added, 76 removed, 5 unchanged (97% of the section changed)

General Description of Business

are the owner and exclusive publisher of Kane Miller children’s books;

( a) General Description of Business

We are the owner and exclusive

publisher of Kane Miller children’s books;

Learning Wrap-Ups, maker of educational manipulatives;

SmartLab Toys, maker of STEAM-based toys and games.

We are also the exclusive United States Multi-Level Marketing (“MLM”)

distributor of Usborne Publishing Limited (“Usborne”) children’s books.

We are a corporation incorporated under the

laws of the State of Delaware on August 23, 1965.

and SmartLab Toys, maker of STEAM-based

toys and games.

We are also the exclusive United States Multi-Level Marketing (“MLM”) distributor of Usborne Publishing Limited

(“Usborne”) children’s books.

We are a corporation incorporated under the laws of the State of Delaware on August 23,

Our fiscal year ends on February 28 (29).

Company vision statement reflects “We believe that education is the catalyst for wonderment, kindness, and connection.

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.”

Company mission statement reflects “We are creating the story of tomorrow through people, products, and purpose.”

Financial Information about Our Segments

sell children’s books, educational toys and games and other related products (collectively referred to as “products”

or “books”) through two business segments described below, which we refer to as “divisions” or “sales channels:”

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 schools and public libraries and through other

Our Company vision statement

reflects “We believe that education is the catalyst for wonderment, kindness, and connection.

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.”

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 described below, which we refer to as “divisions” or “sales channels:”

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 schools and public libraries and through other events.

This division had approximately 4,300 active Brand Partners as of February 28, 2026.

Division (“EDC Publishing” or “Publishing”) – This is our trade division which markets our Kane

Miller, SmartLab Toys, and Learning Wrap-Ups products through commissioned trade representatives who call on retail book, toy and specialty

stores along with other retail outlets.

This division also has in-house representatives marketing by telephone and email to other customers

and potential customers.

Publishing Division (“EDC Publishing” or “Publishing”) – This is our trade division which markets our Kane Miller, SmartLab Toys, and Learning Wrap-Ups products through commissioned trade representatives who call on retail book, toy and specialty stores along with other retail outlets.

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

In accordance with our distribution agreement with Usborne Publishing, the Company does not have the rights to distribute Usborne’s

products to retail customers.

The distribution of Usborne’s products to retail customers was discontinued in early fiscal 2024,

when Usborne moved to a new retail distribution vendor.

of Net Revenues by Division

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.

In accordance with our distribution agreement with Usborne Publishing, the Company does not have the rights to distribute Usborne’s products to retail customers.

Percent of Net Revenues by Division

Total net revenues

financial information relating to the Company’s reportable segments is included in Note 16, “Business Segments”, of the

Notes to Financial Statements in Item 15, “Exhibits and Financial Statement Schedules,” which is included herein.

Narrative Description of Business

current catalog contains approximately 2,000 titles, with new additions added periodically across all lines of our products.

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.

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.

We also have a broad line of ‘internet-linked’

books which allow readers to expand their educational experience by referring them to relevant non-Company websites.

Our books also include

science and math titles, as well as chapter books and novels.

Many of our Kane Miller books were originally published in other countries,

in their native languages, and we translate them to common American English and have exclusive rights to publish the titles in the United

Certain Kane Miller agreements include North American rights, and these titles are also sold into Canada.

Our SmartLab Toys and

Learning Wrap-Ups imprints are owned product lines that are sold domestically and internationally, including the sale of foreign distribution

rights to specific customers.

for both divisions are greatest during the fall due to the holiday season.

Additionally, there is a seasonal increase in spring associated

with Easter holiday season.

we have the exclusive rights to sell Kane Miller books, Learning Wrap-Ups, and SmartLab Toys and are the exclusive United States Multi-Level

Marketing (“MLM”) distributor of Usborne books, we face competition from other publishers selling on the internet and directly

to our customer base.

Our PaperPie division competes in recruiting and retaining Brand Partners, whom continuously receive opportunities

to work for other direct selling companies, as well as other non-traditional employment opportunities, especially in the gig marketplace

that provides multiple opportunities for part-time supplemental income.

We also compete with other publishers in the school and library

book fair market, of which Scholastic Corporation is the largest.

Publishing division faces competition from U.S.

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.

of February 28, 2025, 83 full-time employees worked at our Tulsa, OK, San Diego, CA, and Ogden, UT facilities.

Of these employees, approximately

49% work in our distribution warehouse in Tulsa, OK.

to Section 13 or 15 of the Exchange Act, as soon as reasonably practicable after filing electronically or otherwise furnishing it to

the Securities and Exchange Commission (“SEC”), we make available, free of charge, on our website (www.edcpub.com) copies

of our Annual Reports, Quarterly Reports and Definitive Proxy Statements.

Our website also includes an internet link to the federal SEC

website that contains additional public reports, including Current Reports on Form 8-K, amendments to those reports filed or furnished

to the SEC and reports of holdings of our securities filed by our officers and directors under Section 16 of the Exchange Act.

reports can also be provided electronically, free of charge, upon request.

are a smaller reporting company and are not required to provide this information.

Additional financial information relating to the

Company’s reportable segments is included in Note 16, “Business Segments”, of the Notes to Financial Statements in Item

15, “Exhibits and Financial Statement Schedules,” which is included herein.

EDC’s current

catalog contains approximately 2,000 titles, with new additions added periodically across all lines of our products.

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.

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.

We also have a broad line of ‘internet-linked’ books which allow readers to expand their educational experience by

referring them to relevant non-Company websites.

Our books also include science and math titles, as well as chapter books and

Many of our Kane Miller books were originally published in other countries, in their native languages, and we translate them

to common American English and have exclusive rights to publish the titles in the United States.

Certain Kane Miller agreements

include North American rights, and these titles are also sold into Canada.

Our SmartLab Toys and Learning Wrap-Ups imprints are

product lines that are sold domestically and internationally, including the sale of foreign distribution rights to specific

Sales for both divisions are

greatest during the fall due to the holiday season.

Additionally, there is a seasonal increase in spring associated with our annual PaperPie

day as well as the Easter holiday season.

While we have the exclusive

rights to sell Kane Miller books, Learning Wrap-Ups, and SmartLab Toys and are the exclusive United States Multi-Level Marketing (“MLM”)

distributor of Usborne books, we face competition from other publishers selling on the internet and directly to our customer base.

PaperPie division competes in recruiting and retaining Brand Partners, who continuously receive opportunities to work for other direct

selling companies, as well as other non-traditional employment opportunities, especially in the gig marketplace that provides multiple

opportunities for part-time supplemental income.

We also compete with other publishers in the school and library book-fair market, of

which Scholastic Corporation is the largest.

Our Publishing division faces

competition from U.S.

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.

As of February 28, 2026, 64

full-time employees worked at our Tulsa, OK, San Diego, CA, and Ogden, UT facilities.

Of these employees, approximately 41% work in our

distribution warehouse in Tulsa, OK.

Company Reports

Pursuant to Section 13 or

15 of the Exchange Act, as soon as reasonably practicable after filing electronically or otherwise furnishing it to the Securities and

Exchange Commission (“SEC”), we make available, free of charge, on our website (www.edcpub.com) copies of our Annual Reports,

Quarterly Reports and Definitive Proxy Statements.

Our website also includes an internet link to the federal SEC website that contains

additional public reports, including Current Reports on Form 8-K, amendments to those reports filed or furnished to the SEC and reports

of holdings of our securities filed by our officers and directors under Section 16 of the Exchange Act.

These reports can also be provided

electronically, free of charge, upon request.

We are a smaller reporting company and are not

required to provide this information.

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.

What changed 10-K

Item 1. Business