Note 3

3 Months Ended

May 31, 2012

Note 3 – Inventories consist of the following:

	2012
	May 31,			February 29,
Current:
Book inventory	$	10,302,400		$	9,879,000
Inventory valuation allowance		(25,000	)		(25,000	)

Inventories net–current	$	10,277,400		$	9,854,000

Noncurrent:
Book inventory	$	853,000		$	888,000
Inventory valuation allowance		(350,000	)		(340,000	)

Inventories net–noncurrent	$	503,000		$	548,000

We occasionally purchase book inventory in quantities in excess of what will be sold within the normal operating cycle due to minimum order requirements of our primary supplier. These amounts are included in non-current inventory.

Significant portions of our inventory purchases are concentrated with an England-based publishing company. Purchases from this company were approximately $2.5 million and $2.0 million for the three months ended May 31, 2012 and 2011, respectively. Total inventory purchases from all suppliers were approximately $2.75 million and $2.64 million for the three months ended May 31, 2012 and 2011, respectively.

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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