Educational Development Corporation (NASDAQ:EDUC) Q3 2023 Earnings Call Transcript

Craig White: Thank you.

Operator: Thank you. Next question, we have with Educational Development. . Next question we have , a private investor. Cliff Morton please ask your question. . Your next question comes from with Wealth Advisors. John Bear, your line is open.

Unidentified Analyst: Thank you. Good afternoon, Craig and Heather and Dan. Question, are there any other lines that you might add, in addition to the squishy skeleton? In other words, any other kind of theme that you might be able to add to that product line for those offerings, I guess?

Craig White: Yes, good question. So SmartLab Toys over their history have introduced 40 or 50 products. And some of them have been discontinued, but we’re looking at bringing back any or all or any combination thereof. So they had several basic category groups, I would say that a circuits group of products, they have the Chinese, they have the squishies, which there’s a squishy brain, and they have a new product that they actually never sold before we acquired them, which is the ultimate squishy human body, which is much more integrated with electronics. I mean, you can put organs on this little electronic pad, and you can do squishies on that organ, you can keep track of the squishies. And so that’s another product in that line.

But like I said, and then there’s science labs and some of those things. So we have a wealth of products that we can bring out. And we didn’t want to overwhelm and bring out 20 or 30 all at once. So we’re kind of spacing those releases out but yes, there are further products.

Unidentified Analyst: So might an approach be to inquire of your consultant lines of inquiries about some of those products that you haven’t introduced yet? In other words, rather than human anatomy type, products, maybe cats, dogs, that kind of thing?

Heather Cobb: Yes. This is Heather, John. How are you?

Unidentified Analyst: I’m fine.

Heather Cobb: As Craig mentioned, they have a catalogue of products for us to continue to pull from. But in addition to that, we also kept on staff, one of their creators and developers who is responsible for the creation of these products. And we have already been in conversations and brainstorm sessions about what’s next as far as the creation process. So we have the best of both worlds. We can pull from the back list of their catalogue, and we also are planning to create some of our own things to follow up with.

Unidentified Analyst: Okay. Well, I’m just wondering, that if you question those in the consultant line and get their feedback of any interest about certain products from their downline or whatever the people that are having at their parties and whatever, and kind of query them as to what’s going on or that might give you a better idea of what the public wants, so to speak. Is that an approach you’re considering?

Heather Cobb: It’s actually approach that we already used. We have constant interaction with our field, to receive feedback to get ideas. We have an entire section of our back-office support ticket category to take recommendations and suggestions. And so that’s what we’ve already been doing with our product lines, is taking the temperature of our field as well as the customers watching trends and seeing where we can fill gaps that we currently aren’t offering or isn’t available in the market otherwise.

Unidentified Analyst: Great. Very good. Thanks for taking my questions.