CORRESP 1 filename1.htm edc20241023_corresp.htm

 

Division of Corporation Finance

Office of Trade and Services

U.S. Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

 

Attention: Blaise Rhodes and/or Rufus Decker

 

Re: Educational Development Corporation

Form 10-K for Fiscal Year Ended February 29, 2024

Response dated October 9, 2024

File No. 000-04957

 

To the addressees set forth above:

 

This letter is in response to the comment letter dated October 9, 2024 (the “Comment Letter”), from the staff of the Division of Corporation Finance (the “Staff”) of the Securities and Exchange Commission (the “SEC”) regarding the above-referenced Form 10-K (the “Form 10-K”) for the year ended February 29, 2024, filed on May 21, 2024. For your convenience, we have set forth each comment of the Staff from the Comment Letter in italics below and provided our response below each comment. Unless otherwise indicated, capitalized terms used herein have the meanings assigned to them in the Form 10-K.

 

Form 10-K for Fiscal Year Ended February 29, 2024

Financial Statements

 

Statements of Operations, page 29

 

1.         We read your response to prior comment 1. Please revise the title used for the revenues, net of discounts and allowances line item to distinguish it from the net revenues line item. If the first line item mentioned is product revenues, net of discounts and allowances, or another type of revenues, revise the title accordingly.

 

Response:

 

The Company respectfully acknowledges the Staff’s comment and has reviewed Question 100.04 of the Non-GAAP Financial Measures Compliance and Disclosure Interpretations. The Company originally presented this information for the purpose of increasing transparency with investors and for comparability between fiscal periods due to the Company’s historical financial presentations. In order to comply with ASC 606 on a go forward basis, the Company will remove our presentation of gross sales here and elsewhere throughout future periodic filings and will name the revised line items “Product Revenues, net of discounts and allowances.” This will be a more descriptive title than net sales and will be less confusing since the Company already uses net revenues throughout its periodic filings. Below is an example of how the Company will present the revised line item in future filings, starting with the Company’s 10-Q to be filed in October for the period ending August 31, 2024.         

 

   

Three Months Ended

August 31,

    

Six Months Ended

August 31,

 
   

2024

    

2023

    

2024

    

2023

  

PRODUCT REVENUES, net of discounts and allowances

   $       $       $       $    

Transportation revenue

                                

NET REVENUES

                                

 

We hope that the foregoing has been responsive to the Staff’s comments and look forward to resolving any outstanding issues as quickly as possible. Please do not hesitate to contact me at [email protected] with any questions or further comments you have regarding this filing or if you wish to discuss the above.

 

Sincerely,

 

/s/ Dan E. O’Keefe                                  

Chief Financial Officer and Corporate Secretary

(Principal Financial and Accounting Officer)