SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

May 31, 2025

The Company's ownership interest in a real estate development joint venture the Company has recorded under the equity method as of May 31, 2025 is listed below:

Real Estate Development Joint Venture

Country

Ownership

Basis of
Presentation

GolfPark Plaza, S.A.

Panama

50.0

Equity(1)

(1)Joint venture interests are recorded as investment in unconsolidated affiliates on the consolidated balance sheets.

Schedule of Restricted Cash

The following table summarizes the restricted cash reported by the Company (in thousands):


	May 31, 2025		August 31, 2024
Short-term restricted cash	$	3,488	$	1,383
Long-term restricted cash	11,670		9,564
Total restricted cash(1)	$	15,158	$	10,947

(1)Restricted cash consists of cash deposits held within banking institutions in compliance with federal regulatory requirements in Costa Rica and Panama. In addition, the Company is required to maintain a certificate of deposit and/or security deposits of Trinidad dollars, as measured in U.S dollars, of approximately $8.1 million with a few of its lenders as compensating balances for several U.S. dollar and euro denominated loans payable over several years. The certificates of deposit will be reduced annually commensurate with the loan balances.

Schedule of Value Added Tax Receivables

The following table summarizes the VAT receivables reported by the Company (in thousands):


	May 31, 2025		August 31, 2024
Prepaid expenses and other current assets	$	4,877	$	3,322
Other non-current assets	32,440		30,845
Total amount of VAT receivables reported	$	37,317	$	34,167

Schedule of Income Tax Receivables

The following table summarizes the Income tax receivables reported by the Company (in thousands):


	May 31, 2025		August 31, 2024
Prepaid expenses and other current assets	$	21,140	$	20,088
Other non-current assets	26,624		23,679
Total amount of income tax receivables reported	$	47,764	$	43,767

Schedule of Net Effect of Foreign Currency Translation

The following table discloses the net effect of translation into the reporting currency on other comprehensive income for these local currency denominated accounts for the three and nine months ended May 31, 2025 and May 31, 2024 (in thousands):


	Three Months Ended				Nine Months Ended
	May 31, 2025		May 31, 2024		May 31, 2025		May 31, 2024
Effect on other comprehensive income (loss) due to foreign currency restatement	$	2,048	$	(5,181)	$	6,540	$	5,053

Schedule of Foreign Currency Gains (Losses)

These foreign exchange transaction gains (losses), including transactions recorded involving these monetary assets and liabilities, are recorded as Other income (expense) in the consolidated statements of income (in thousands):


	Three Months Ended				Nine Months Ended
	May 31, 2025		May 31, 2024		May 31, 2025		May 31, 2024
Currency loss	$	(6,769)	$	(1,725)	$	(18,675)	$	(11,563)

PRICESMART INC 10-Q