Quarterly report [Sections 13 or 15(d)]

Note 4 - Taxes

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Note 4 - Taxes
 6 Months Ended
Jul. 31, 2025
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

(4)    Taxes

 

For the three and six months ended July 31, 2025, we recorded a tax benefit of $0.4 million and $1.2 million, respectively, on a pretax loss of $24.2 million and $63.0 million, respectively. For the three and six months ended July 31, 2024, we recorded a tax benefit of $2.1 million and $3.6 million, respectively, on a pretax loss of $41.6 million and $70.8 million, respectively. For each period, the tax benefit reflects the effect of non-deductible items, foreign rate differentials, changes in unremitted earnings, and changes in the valuation allowance on our deferred tax assets. 

 

On July 4th, 2025, the President signed into law significant federal tax legislation, H.R.1 (the “Tax Reform Act of 2025” commonly referred to as the One Big Beautiful Bill Act (“OBBBA”)). The legislation includes numerous changes to U.S. corporate income tax law, including but not limited to the following: permanent 100% bonus depreciation for qualified property, immediate expensing of domestic research and experimental expenditures, modifications to the limitation on business interest expense, changes to the international tax regime, and expanded limitations on the deductibility of executive compensation under IRC Section 162(m).

 

The Company is currently evaluating the provisions of the OBBBA and their potential impact on our financial statements. We will continue to monitor guidance issued by the U.S. Department of the Treasury, the Internal Revenue Service, and other regulatory bodies and will incorporate any updates into our evaluation and implementation efforts as appropriate.