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Note 15 - Income Taxes
6 Months Ended
Aug. 31, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
NOTE
15
– INCOME TAXES
 
Under the recently enacted CARES Act a net operating loss (“NOL”) arising during the Company's fiscal year
2021
can be carried back for
five
years to offset the Company's taxable income for fiscal years
2016
-
2020.
This
five
-year period spans Federal effective tax rates for the Company ranging from
21%
to
34%,
the result of the Tax Cuts and Jobs Act enacted during the Company's fiscal year ended
February 28, 2018.
 
The Company's deferred tax assets are valued at the current federally enacted rate of
21%.
If the Company were to continue to realize NOLs in future periods, or incur a NOL for all of fiscal year
2021
the loss carryback provisions of the CARES Act
may
enable the Company to offset taxable income from prior years when federally enacted tax rates were higher than
21%.
Under such a scenario, the Company would incur a gain associated with the revaluation of the Company's deferred tax assets to the extent that prior taxable income during periods of higher enacted federal tax rates could be offset by current NOLs.
 
As of
August 31, 2020,
the Company is in the process of analyzing the different aspects of the CARES Act to quantify the impact of these provisions on the Company's income taxes.