INCOME TAXES |
9 Months Ended |
|---|---|
May 31, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The Company accounts for income taxes in interim periods using the estimated annual effective tax rate method. Under this method, the Company estimates its annual effective tax rate for the full fiscal year and applies that rate to its year-to-date pre-tax income or loss and adjusts the provision for (or benefit from) income taxes for discrete items recorded in the period. The Company's effective tax rate ("ETR") for the nine months ended May 31, 2026 and 2025 was (1)% and 0%, respectively. The ETR of (1)% for the nine months ended May 31, 2026 was lower than the US statutory rate of 21%, primarily due to the application of a valuation allowance against the Company’s deferred tax assets. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. Management determined that there is not sufficient positive evidence to conclude that it is more likely than not that the Company's net deferred tax asset will be fully realized. Therefore, the Company recognized a full valuation allowance as a discrete item for the first three months ended November 30, 2025. The Company recognized an additional full valuation allowance as a discrete item for the subsequent three months ended February 28, 2026. The Company will continue to regularly assess the realizability of deferred tax assets.
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