Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

Income Taxes
3 Months Ended
Aug. 31, 2022
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 20 Income Taxes


The following table summarizes the Company’s income tax accrued for the three months ended August 31, 2022:



For the Three Months


August 31, 2022


For the Three Months


August 31, 2021


Loss before provision for income taxes

  $ (813,040


  $ 755,939  

Provision for income taxes

  $ 519,085     $ 328,340  

Effective tax rate






Due to the accrual of taxes related to Section 280E of the Internal Revenue Code, as amended, the Company has an uncertain tax accrual that is currently being expensed as a change in estimate. The Company has net operating losses that it believes are available to it to offset this expense; however, there can be no assurance under current interpretations of tax laws for cannabis companies that the Company will be allowed to use these net operating losses to offset Section 280E tax expenses.