BUSINESS SEGMENTS

12 Months Ended

Feb. 28, 2023

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

14. BUSINESS SEGMENTS

We have two reportable segments: PaperPie and Publishing. These reportable segments are business units that offer different methods of distribution to different types of customers. They are managed separately based on the fundamental differences in their operations. Our PaperPie segment markets its products through a network of independent brand partners using a combination of internet sales, direct sales, home shows and book fairs. Our Publishing segment markets its products to retail accounts, which include book, school supply, toy and gift stores, museums, trade and specialty wholesalers, through commissioned sales representatives and our internal tele-sales group. See Note 3 for the impact of our updated distribution agreement on the Publishing segment.

The accounting policies of the segments are the same as those of the rest of the Company. We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net revenues reduced by cost of sales and direct expenses. Corporate expenses, depreciation, interest expense and income taxes are not allocated to the segments but are listed in the “Other” row below. Corporate expenses include the executive department, accounting department, information services department, general office management, warehouse operations and building facilities management. Our assets and liabilities are not allocated on a segment basis.

Information by industry segment for the years ended February 28, 2023 and February 28, 2022 is set forth below:

NET REVENUES

	2023		2022
Publishing	$	13,282,300	$	13,250,300
PaperPie		74,546,700		128,978,500
Total	$	87,829,000	$	142,228,800

EARNINGS (LOSS) BEFORE INCOME TAXES

	2023			2022
Publishing	$	3,186,800		$	3,639,800
PaperPie		9,170,600			24,437,500
Other		(15,784,300	)		(16,841,400	)
Total	$	(3,426,900	)	$	11,235,900