8. Income Taxes

The Company’s income (loss) before income taxes for the three and six months ended February 28, 2018 and 2017 consisted of the following (in thousands):

	Three Months Ended						Six Months Ended
	February 28, 2018			February 28, 2017			February 28, 2018			February 28, 2017
U.S. operations	$	(140	)	$	(207	)	$	93		$	39
Foreign operations		(992	)		(942	)		(1,617	)		(1,884	)
Loss before income taxes	$	(1,132	)	$	(1,149	)	$	(1,524	)	$	(1,845	)

Unrecognized Tax Benefits

On December 22, 2017 the U.S. Tax Reform, which among other effects, reduces the U.S. federal corporate income tax rate to 21% from 34% (or 35% in certain cases) beginning in 2018, requires companies to pay a one-time transition tax on certain unrepatriated earnings from non-U.S. subsidiaries that is payable over eight years, makes the receipt of future non-U.S. sourced income of non-U.S. subsidiaries tax-free to U.S. companies and creates a new minimum tax on the earnings of non-U.S. subsidiaries relating to the parent’s deductions for payments to the subsidiaries. Provisional estimate of the Company is that no tax will be due under this provision. The company will continue gather information relating to this estimate.

As of both February 28, 2018 and August 31, 2017, the Company had no unrecognized tax benefits related to tax positions taken in prior periods. The Company files income tax returns in the United States, various U.S. states and certain foreign jurisdictions. The tax years 2005 through 2017 remain open in most jurisdictions. The Company is not currently under examination by income tax authorities in federal, state or foreign jurisdictions.