Note 17 - Income Taxes and Deferred Income Taxes |
3 Months Ended |
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Aug. 31, 2026 | |
| Notes to Financial Statements | |
| Income Tax Disclosure [Text Block] |
Note 17. Income taxes
The determination of the Company’s overall effective tax rate requires significant judgment, the use of estimates, and the interpretation and application of complex tax laws. The effective tax rate reflects the income earned and taxed in various United States federal, state, and foreign jurisdictions. Tax law changes, increases, and decreases in temporary and permanent differences between book and tax items, valuation allowances against the deferred tax assets, stock compensation, and the Company’s change in income in each jurisdiction all affect the overall effective tax rate. It is the Company’s practice to recognize interest and penalties related to uncertain tax positions in income tax expense.
The Company reported income tax expense of $1,725 for the three months ended August 31, 2026, and an income tax recovery of $(2,285) for the three months ended August 31, 2025. The income tax expense in the current period varies from the Federal statutory income tax rate and prior year period primarily due to the geographical mix of earnings and losses with no tax benefit resulting from valuation allowances in certain jurisdictions.
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