Quarterly report pursuant to Section 13 or 15(d)

Note 18 - Income Taxes

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Note 18 - Income Taxes
 6 Months Ended
May 31, 2024
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

18.

INCOME TAXES

 

For the three months ended May 31, 2024, the Company recorded a nominal amount of income tax expense. For the three months ended May 31, 2023, the Company recorded an income tax expense of $0.02 million. For the three months ended May 31, 2024 and 2023, the effective tax rate was 0.1% and 1.6%, respectively.   For the six months ended May 31, 2024, the Company recorded a nominal amount of income tax expense. For six months ended May 31, 2023, the Company recorded an income tax benefit of $0.04 million.  For the six months ended May 31, 2024 and 2023, the effective tax rate was 0.2% and (1.3)%, 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, the recording of a valuation allowance against the deferred tax assets generated in the current period, and other effects.