Income Taxes

3 Months Ended

May 31, 2022

Income Taxes

Income Taxes

(10)   Income Taxes

The provision (benefit) for income taxes consists of provisions for federal, state and foreign income taxes for separate U.S. tax filers and for entities in separate tax jurisdictions. As a result of the Company’s history of net operating losses (NOL), the Company has historically provided for a full valuation allowance against its U.S. deferred tax assets that are not more-likely-than-not to be realized. For the three months ended May 31, 2022 and 2021, the Company recorded income tax provision (benefit) of $(3,899) and $19, respectively, which resulted in effective tax rates of 1.1% and (0.0%), respectively. The tax benefit of $(3,899) for the three months ended May 31, 2022 is primarily related to the reversal of the deferred tax liability associated with the basis difference in goodwill from the 2nd.MD acquisition. The goodwill impairment recorded required the Company to reverse that deferred tax liability during the three months ended May 31, 2022.