Quarterly report [Sections 13 or 15(d)]

Note 20 - Income Taxes

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Note 20 - Income Taxes
 9 Months Ended
Aug. 31, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

20.

INCOME TAXES

 

For the three months ended August 31, 2025, the Company recorded $0.6 million of income tax expense. For the three months ended  August 31, 2024, the Company recorded a nominal amount of income tax expense. For the three months ended August 31, 2025 and August 31, 2024, the effective tax rate was 20.6% and 0.1%, respectively. For the nine months ended August 31, 2025, the Company recorded $1.7 million of income tax expense. For the nine months ended August 31, 2024, the Company recorded $0.1 million of income tax benefit. For the nine months ended August 31, 2025 and August 31, 2024, the effective tax rate was 18.3% and 0.2%, respectively. The Company’s tax rate differs from the statutory rate of 21.0% due to the effects of state taxes net of federal benefit, the foreign tax rate differential as a result of Byrna South Africa, effects of permanent non-deductible expenses, and other effects.

 

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted. The OBBBA amends U.S. tax law including provisions related to domestic research and development expenses and bonus depreciation, among others.  The Company is currently evaluating the impact of the OBBBA on its consolidated financial statements and has included the estimated impact of items affecting its current tax period as part of its income tax expense computed for the quarter ending August 31, 2025.