v3.26.1
Income Taxes
 6 Months Ended
Feb. 28, 2026
Income Tax Disclosure [Abstract]  
Income Taxes

8. Income Taxes

The Company’s loss before income taxes for the three and six months ended February 28, 2026 and 2025 consisted of the following (in thousands):

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

February 28, 2026

 

 

February 28, 2025

 

 

February 28, 2026

 

 

February 28, 2025

 

 

U.S. operations

 

$

(101

)

 

$

(145

)

 

$

 

(196

)

 

$

 

(283

)

 

Foreign operations

 

 

(502

)

 

 

533

 

 

 

 

(1,149

)

 

 

 

124

 

 

Loss before income taxes

 

$

(603

)

 

$

388

 

 

$

 

(1,345

)

 

$

 

(159

)

 

 

Unrecognized Tax Benefits

On December 22, 2017, the U.S. Tax Cuts and Jobs Act was adopted, which among other effects, reduced the U.S. federal corporate income tax rate to 21% from 34% (or 35% in certain cases) beginning in 2018, requires companies to pay a one-time transition tax on certain unrepatriated earnings from non-U.S. subsidiaries that is payable over eight years, makes the receipt of future non-U.S. sourced income of non-U.S. subsidiaries tax-free to U.S. companies and creates a new minimum tax on the earnings of non-U.S. subsidiaries relating to the parent’s deductions for payments to the subsidiaries. Our provisional estimate is that no tax will be due under this provision.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The provisions of the legislation that were effective for fiscal 2026 did not have a material impact on the Company's income tax expense for the three and six months ended February 28, 2026 and 2025. The Company is currently assessing the impact of the provisions of the OBBBA that are effective in future years on its future consolidated financial statements.

As of both February 28, 2026 and August 31, 2025, the Company had no unrecognized tax benefits related to tax positions taken in prior periods. The Company files income tax returns in the United States, various U.S. states and certain foreign jurisdictions. The tax years 2020 through 2024 remain open in most jurisdictions. With few exceptions, as of February 28, 2026, the Company is no longer subject to U.S. federal, state, local, or foreign examinations by tax authorities for tax years before 2020.