BUSINESS SEGMENTS

6 Months Ended

Aug. 31, 2023

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 13 – 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 8 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, other income 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 reporting segment for the three and six-month periods ended August 31, 2023 and 2022, are as follows:

NET REVENUES
	Three Months Ended August 31,				Six Months Ended August 31,
	2023		2022		2023		2022
PaperPie	$	9,334,000	$	15,932,200	$	21,917,200	$	35,949,000
Publishing		1,259,100		3,486,100		3,199,900		6,630,200
Total	$	10,593,100	$	19,418,300	$	25,117,100	$	42,579,200

EARNINGS (LOSS) BEFORE INCOME TAXES
	Three Months Ended August 31,					Six Months Ended August 31,
	2023		2022			2023			2022
PaperPie	$	364,200	$	1,697,900		$	2,022,900		$	5,029,200
Publishing		436,600		815,900			896,600			1,565,600
Other		652,100		(3,619,400	)		(2,667,200	)		(7,415,200	)
Total	$	1,452,900	$	(1,105,600	)	$	252,300		$	(820,400	)