Item 2. Properties
Item 2. PROPERTIES
Our headquarters office and
distribution warehouse are located at 5402 South 122nd East Ave, Tulsa, Oklahoma. The Company leases approximately 109,700 square feet
of office and warehouse space in a 402,000 square foot complex (“Hilti Complex”), which the Company owned until October 27,
2025. Substantially all customer orders are fulfilled from our 85,000 square foot warehouse, in Tulsa, Oklahoma, using multiple flow-rack
systems, referred to as “lines,” to expedite order completion, packaging, and shipment.
During the third quarter of
fiscal 2024, the Company listed for sale/leaseback our headquarters office and warehouse property. The listing of the property for sale
resulted in a reclassification of the owned property as “Assets Held for Sale” in the Company’s financial statements.
On October 27, 2025, the Company
completed the sale of the Hilti Complex to 10Mark 10K Industrial, LLC. The agreed upon sale price of the Hilti Complex per the executed
Contract totaled $32,200,000. The net proceeds, less the carrying value of the assets held for sale, resulted in a gain on sale of $12,243,700.
Following the sale of the Hilti Complex, 17 acres of excess land with a cost basis of $850,000, was reclassified from Assets held for
Sale to land as it no longer listed for sale. The proceeds from the sale were utilized to pay off the Term Loans and Revolving Loan outstanding
in the Credit Agreement with the Company’s Bank. At closing, EDC assigned the existing third-party tenant leases to the Buyer and
executed a separate Triple-Net Lease (the “Lease”) for its occupied space in the Hilti Complex.
In addition, we also lease
additional warehouse space in Tulsa, Oklahoma and Joplin, Missouri as needed for overflow inventory, an office space in San Diego, California
that is used by our Kane Miller employees and office space in Ogden, Utah for our Learning Wrap-Ups employees. We believe that our operating
facilities meet both present and future capacity needs.
Item 3. LEGAL PROCEEDINGS
We are not a party to any material pending legal
proceedings.
Item 4. MINE SAFETY DISCLOSURES
None
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Table of Contents
PART II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.