Quarterly report [Sections 13 or 15(d)]

Note 20 - Income Taxes

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Note 20 - Income Taxes
 3 Months Ended
Feb. 28, 2026
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

20.

INCOME TAXES

 

For the three months ended February 28, 2026, the Company recorded less than $0.1 million of income tax benefit. For the three months ended February 28, 2025, the Company recorded $0.1 million of income tax expense. For the three months ended February 28, 2026 and 2025, the effective tax rate was (0.4)% and 6.4%, respectively.

 

The income tax benefit recorded for the three months ended February 28, 2026, despite pre‑tax income, was primarily attributable to discrete excess tax benefits recognized in connection with the vesting of share‑based compensation awards during the quarter, which more than offset the income tax expense attributable to ordinary income for the period.

 

The Company’s effective tax rate differs from the statutory federal rate of 21.0% primarily due to the effects of state income taxes net of the federal benefit, foreign tax rate differentials related to the Company’s South Africa operations, permanent non‑deductible expenses, discrete items related to share‑based compensation, and other items.

 

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 has assessed the impact of the OBBBA on its consolidated financial statements and has included the estimated impact of items affecting its forecasted tax rate as part of its income tax expense computed for the quarter ending February 28, 2026.