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BUSINESS CONCENTRATION
 12 Months Ended
Feb. 28, 2026
Risks and Uncertainties [Abstract]  
Concentration Risk Disclosure [Text Block]

5. BUSINESS CONCENTRATION

 

Significant portions of our inventory purchases are concentrated with an England-based publishing company, Usborne Publishing Limited (“Usborne”). During fiscal 2023, we entered into a new distribution agreement (“Agreement”) with Usborne. The Agreement includes annual minimum purchase volumes along with specific payment terms and letter of credit requirements, which if not met offer Usborne the right to terminate the Agreement on less than 30 days’ written notice. Should termination of the Agreement occur, the Company will be allowed to sell its remaining Usborne inventory for an agreed upon period, but not less than twelve months following the termination date. As of February 28, 2026, the Company did not meet the minimum purchase requirements and did not supply the letter of credit required under the Agreement, which offers Usborne the right to exercise their option to terminate the Agreement. Usborne has not notified the Company of termination of the Agreement. In addition, Usborne has refused to pay the $1.0 million volume rebate owed to the Company from purchases made during fiscal 2022. The Company is disputing the cancellation of the rebate but has not recognized any rebate due to its uncertainty. Additionally, under the terms in the Agreement, the Company no longer has the rights to distribute Usborne’s products to retail customers through our Publishing division. As a result, the Company discontinued selling Usborne products to retail customers in the first quarter of fiscal 2024.

 

The following table summarizes Usborne product revenues, net of discounts, by division and inventory purchases by product type:

 

   Year Ended February 28, 
   2026   2025 
Product revenues, net of discounts of Usborne products by division:        
PaperPie division  $9,069,700   $12,282,100 
% of total PaperPie Product revenues, net of discounts   49.7%   43.5%
Publishing division   -    - 
% of total Publishing Product revenues, net of discounts   0.0%   0.0%
Total Product revenues, net of discounts of Usborne products  $9,069,700   $12,282,100 
           
Purchases received by product type:          
Usborne  $567,900   $230,100 
% of total purchases received   28.3%   9.3%
All other product types   1,436,800    2,243,200 
% of total purchases received   71.7%   90.7%
Total purchases received  $2,004,700   $2,473,300 

 

Total Usborne inventory owned by the Company and included in our balance sheets was $20,158,500 and $23,696,800 as of February 28, 2026 and February 28, 2025, respectively.