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Income Taxes	3 Months Ended
May 29, 2021
Income Taxes
Income Taxes	8. Income Taxes The Company recorded an income tax expense from continuing operations of $780 and an income tax benefit from continuing operations of $8,018 for the thirteen week periods ended May 29, 2021 and May 30, 2020, respectively. The effective tax rate for the thirteen week periods ended May 29, 2021 and May 30, 2020 was (6.4)% and 9.9%, respectively. The effective tax rate for the thirteen week periods ended May 29, 2021 and May 30, 2020 was net of an adjustment of (18.5)%, and (10.6)%, respectively, to adjust the valuation allowance against deferred tax assets. The Company recognizes tax liabilities in accordance with the guidance for uncertain tax positions and management adjusts these liabilities with changes in judgment as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. The Company believes that it is reasonably possible that a decrease of up to $11,851 in unrecognized tax benefits related to state exposures may be necessary in the next twelve months however management does not expect the change to have a significant impact on the results of operations or the financial position of the Company. The Company regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain. Management will continue to monitor all available evidence related to the net deferred tax assets that may change the most recent assessment, including events that have occurred or are anticipated to occur. The Company continues to maintain a valuation allowance against net deferred tax assets of $1,660,547 and $1,657,562, which relates to federal and state deferred tax assets that may not be realized based on the Company's future projections of taxable income at May 29, 2021 and February 27, 2021, respectively.

Income Taxes

3 Months Ended

May 29, 2021

8. Income Taxes

The Company recorded an income tax expense from continuing operations of $780 and an income tax benefit from continuing operations of $8,018 for the thirteen week periods ended May 29, 2021 and May 30, 2020, respectively. The effective tax rate for the thirteen week periods ended May 29, 2021 and May 30, 2020 was (6.4)% and 9.9%, respectively. The effective tax rate for the thirteen week periods ended May 29, 2021 and May 30, 2020 was net of an adjustment of (18.5)%, and (10.6)%, respectively, to adjust the valuation allowance against deferred tax assets.

The Company recognizes tax liabilities in accordance with the guidance for uncertain tax positions and management adjusts these liabilities with changes in judgment as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities.

The Company believes that it is reasonably possible that a decrease of up to $11,851 in unrecognized tax benefits related to state exposures may be necessary in the next twelve months however management does not expect the change to have a significant impact on the results of operations or the financial position of the Company.

The Company regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain. Management will continue to monitor all available evidence related to the net deferred tax assets that may change the most recent assessment, including events that have occurred or are anticipated to occur. The Company continues to maintain a valuation allowance against net deferred tax assets of $1,660,547 and $1,657,562, which relates to federal and state deferred tax assets that may not be realized based on the Company's future projections of taxable income at May 29, 2021 and February 27, 2021, respectively.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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