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SUBSEQUENT EVENT
12 Months Ended
Feb. 29, 2024
Subsequent Events [Abstract]  
Subsequent Events [Text Block]

21. SUBSEQUENT EVENTS

 

The Company pays personal property taxes to Tulsa County (“County”) for equipment as well as inventory on hand at December 31st that is expected to be sold within the state of Oklahoma. In March 2024, the Company filed their 2024 Personal Property Tax Rendition that continued to exclude inventory that is sold outside of Oklahoma as well as inventory that is not sold within the exemption period allowed by the County. The Company’s estimated personal property taxes for fiscal 2024 were approximately $270,000. On April 24, 2024 the Company received a notice of disapproval of its rendition and a tax assessment against all of its owned inventory on hand at December 31,2023, thereby increasing the expected personal property tax to approximately $729,000. The Company plans to appeal the assessment and is requesting a reduction of the property tax assessment on inventory sold outside of Oklahoma. Once the appeal is submitted, the County assessor will issue a written decision within seven (7) calendar days of the hearing. If the decision is still denied, then the Company will appeal to the Tulsa County Board of Equalization (“Board”) within fifteen (15) calendar days of the date the decision is mailed. Should the Board rule in favor of the County, the Company will then file a lawsuit with the Court of Tax Review. Should the Court of Tax Review rule against the Board’s decision, the Company expects to further escalate the appeal to the Oklahoma Supreme Court. The Company is continuing to accrue personal property taxes in calendar 2024 based on the original rendition.