Educational Development Corporation ('EDC,' or the 'Company') reported a new Distribution Agreement with Usborne Publishing Limited effective May 16, 2022. Under the terms of the new agreement, EDC's UBAM direct sales division will have continuous access to sell Usborne titles through its sales channels. UBAM will also continue to have non-exclusive rights to sell Usborne titles to individuals in the School and Library Market through book fair and “Reach for the Stars!!” programs, etc., however, EDC will no longer sell directly to Schools and Libraries.

Additionally, following a six-month continuation of service period, the Company will discontinue selling Usborne products through its Publishing division. The discontinuance of rights to sell Usborne products through the Publishing Division and direct to Schools and Libraries is not expected to have a material impact going forward and for the last five years represented less than 10% of net sales.