Recent accounting pronouncements

In December 2023, the FASB issued Accounting Standards Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments require enhanced annual disclosures regarding an entity’s income tax rate reconciliation and income taxes paid, including additional disaggregation of certain information by jurisdiction. The amendments became effective for the Company for the fiscal year beginning June 1, 2025. The Company adopted ASU 2023-09 during the year ended May 31, 2026. The adoption did not have a material impact on the Company’s consolidated financial position, results of operations or cash flows, as the amendments primarily relate to financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires public business entities to provide additional disclosures regarding certain expenses included in the expense captions presented on the statement of operations. In January 2025, the FASB issued ASU 2025-01, which clarified the effective date of ASU 2024-03. The amendments are effective for annual reporting periods beginning after December 15, 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted.

The Company is currently evaluating the impact of adopting the amendments on its consolidated financial statement disclosures.

Management has evaluated other recently issued accounting pronouncements and does not believe that the adoption of such pronouncements will have a material effect on the Company’s consolidated financial statements and related disclosures.