EDUCATIONAL DEVELOPMENT CORP

On September 30, 2025, Educational Development Corporation (the “Company”) received a Notice of Default and Reservation of Rights Letter (the “Notice”) from BOKF, NA (the “Lender”) under the Company’s existing Credit Agreement (the “Credit Agreement”), dated as of August 9, 2022. The Notice indicated that an event of default had occurred and is continuing under the Credit Agreement (the “Existing Default”). See Exhibit 10.20 under Item 6 filed herewith.

Under the terms of the Notice, the lender has the right, among other remedies listed, to demand payment or repossess and liquidate the Company’s assets used as collateral for the loans. Additionally, under the terms of the credit agreement, there is an additional 2% default interest rate added to the existing borrowing rates defined in the Credit Agreement and Amendments. The bank has taken no action other than to deliver the Reservation of Rights notice, and the Company continues to work with its lender on ongoing operations. The total outstanding principal balance under the Credit Agreement is approximately $29,949,100 as of September 30, 2025.