v3.26.1
Income Taxes (Tables)
12 Months Ended
Feb. 28, 2026
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Expense (Benefit)

Income tax expense (benefit) is comprised of the following for the years ended February 28 or 29:

 

($'s in thousands)

 

2026

 

 

2025

 

 

2024

 

Current

 

 

 

 

 

 

 

 

 

Federal

 

$

 

 

$

 

 

$

 

State

 

 

 

 

 

 

 

 

 

Total Current

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

 

 

 

 

 

 

 

 

Federal

 

 

152

 

 

 

 

 

 

 

State

 

 

35

 

 

 

 

 

 

 

Total Deferred

 

 

187

 

 

 

 

 

 

 

Total

 

$

187

 

 

$

 

 

$

 

($'s in thousands)

 

2026

 

 

2025

 

 

2024

 

Continuing operations

 

$

187

 

 

$

 

 

$

 

Discontinued operations

 

 

 

 

 

 

 

 

 

Total tax provision

 

$

187

 

 

$

 

 

$

 

Reconciliation of the Statutory Federal Income Tax Rate and the Effective Rate

A reconciliation of the statutory federal income tax rate and the effective rate as a percentage of pretax income is as follows for the years ended February 28 or 29:

 

 

2026

 

 

2025

 

 

2024

 

Statutory rate

 

 

21.0

%

 

 

21.0

%

 

 

21.0

%

State income taxes, net of federal benefit

 

 

3.6

%

 

 

0.0

%

 

 

0.0

%

Work opportunity tax credits

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Equity compensation tax expense

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Compensation and benefits permanent differences

 

 

(0.7

)%

 

 

(0.1

)%

 

 

(0.2

)%

Return to provision

 

 

(3.5

)%

 

 

0.0

%

 

 

0.0

%

Prior year true up

 

 

0.8

%

 

 

0.0

%

 

 

0.0

%

Prior year NOL return to provision

 

 

3.0

%

 

 

0.0

%

 

 

0.0

%

Other

 

 

0.2

%

 

 

(0.1

)%

 

 

1.6

%

Valuation allowance - federal

 

 

(22.1

)%

 

 

(20.8

)%

 

 

(22.4

)%

Valuation allowance - state

 

 

(4.1

)%

 

 

0.0

%

 

 

0.0

%

Federal Depreciation true-up

 

 

(2.4

)%

 

 

0.0

%

 

 

0.0

%

Effective tax rate

 

 

(4.3

)%

 

 

0.0

%

 

 

(0.0

)%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred income taxes as of February 28 are as follows:

 

($'s in thousands)

 

2026

 

 

2025

 

Deferred Tax Assets

 

 

 

 

 

 

Allowance for doubtful accounts and notes

 

$

38

 

 

$

83

 

Inventories

 

 

39

 

 

 

127

 

Accrued compensation

 

 

69

 

 

 

105

 

Loss provisions and deferred income

 

 

303

 

 

 

347

 

Self-insurance accrual

 

 

 

 

 

 

Interest & other

 

 

28

 

 

 

30

 

Restructuring charges

 

 

100

 

 

 

100

 

Right of use liabilities

 

 

330

 

 

 

313

 

Accumulated net losses

 

 

6,532

 

 

 

5,223

 

Valuation allowance

 

 

(5,356

)

 

 

(4,208

)

Net deferred tax assets

 

$

2,083

 

 

$

2,120

 

 

 

 

 

 

 

Deferred Tax Liabilities

 

 

 

 

 

 

Depreciation and amortization

 

 

(1,796

)

 

 

(1,727

)

Right of use assets

 

 

(324

)

 

 

(309

)

Prepaid expenses

 

 

(150

)

 

 

(84

)

Deferred Tax Liabilities

 

 

(2,270

)

 

 

(2,120

)

 

 

 

 

 

 

Net deferred tax liability

 

$

(187

)

 

$

-

 

Schedule Of Deffered Income Tax Valuation Allowances

The following table summarizes deferred income tax valuation allowances as of February 28:

 

($'s in thousands)

 

2026

 

 

2025

 

Valuation allowance at beginning of period

 

$

4,208

 

 

$

3,106

 

Tax expense realized by valuation allowance

 

 

1,148

 

 

 

1,102

 

Valuation allowance at end of period

 

$

5,356

 

 

$

4,208