{"url_path":"/sec/educ/10-k/2026/item-2","section_key":"item-2","section_title":"Item 2 PROPERTIES","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-05-19","source_url":"https://www.sec.gov/Archives/edgar/data/31667/0001185185-26-001927-index.html","accession_number":"0001185185-26-001927","cik":"0000031667","ticker":"EDUC","issuer_name":"EDUCATIONAL DEVELOPMENT CORP","edgar_url":"https://www.sec.gov/Archives/edgar/data/31667/0001185185-26-001927-index.html","primary_entity_key":"0000031667","primary_entity_name":"EDUCATIONAL DEVELOPMENT CORP"},"word_count":319,"has_tables":true,"body_markdown":"Item 2.  PROPERTIES\n\n \n\nOur headquarters office and\ndistribution warehouse are located at 5402 South 122nd East Ave, Tulsa, Oklahoma. The Company leases approximately 109,700 square feet\nof office and warehouse space in a 402,000 square foot complex (“Hilti Complex”), which the Company owned until October 27,\n2025. Substantially all customer orders are fulfilled from our 85,000 square foot warehouse, in Tulsa, Oklahoma, using multiple flow-rack\nsystems, referred to as “lines,” to expedite order completion, packaging, and shipment.\n\n \n\nDuring the third quarter of\nfiscal 2024, the Company listed for sale/leaseback our headquarters office and warehouse property. The listing of the property for sale\nresulted in a reclassification of the owned property as “Assets Held for Sale” in the Company’s financial statements.\n\n \n\nOn October 27, 2025, the Company\ncompleted the sale of the Hilti Complex to 10Mark 10K Industrial, LLC. The agreed upon sale price of the Hilti Complex per the executed\nContract 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.\nFollowing the sale of the Hilti Complex, 17 acres of excess land with a cost basis of $850,000, was reclassified from Assets held for\nSale 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\nin the Credit Agreement with the Company’s Bank. At closing, EDC assigned the existing third-party tenant leases to the Buyer and\nexecuted a separate Triple-Net Lease (the “Lease”) for its occupied space in the Hilti Complex.\n\n \n\nIn addition, we also lease\nadditional warehouse space in Tulsa, Oklahoma and Joplin, Missouri as needed for overflow inventory, an office space in San Diego, California\nthat is used by our Kane Miller employees and office space in Ogden, Utah for our Learning Wrap-Ups employees. We believe that our operating\nfacilities meet both present and future capacity needs."}