INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2022

Schedule of Components of Income Tax Expense (Benefit)

The components of the income tax provision for the years ended August 31, 2022, 2021, and 2020 were as follows:


(in thousands)	2022		2021		2020
Current
Federal	$	2,518	$	1,315	$	2,098
State	611		450		478
Foreign	(228)		166		39
Total current tax expense	2,901		1,931		2,615
Deferred
Federal	(4)		(379)		(428)
State	(265)		(249)		(132)
Total deferred federal and state	(269)		(628)		(560)

Total	$	2,632	$	1,303	$	2,055

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the expected income tax computed using the federal statutory income tax rate to the Company's effective income tax rate is as follows for the years ended August 31, 2022, 2021, and 2020:


	2022		2021		2020
Income tax computed at federal statutory tax rate	21.0	%	21.0	%	21.0	%
State taxes, net of federal benefit	3.2		2.0		4.1
Meals & entertainment	—		—		0.1
Stock-based compensation	0.6		(6.8)		(1.2)
Other permanent differences	0.4		(0.3)		(0.3)
Research and development credit	(2.2)		(1.6)		(2.8)
Foreign-tax-related differences	(3.2)		(2.6)		(1.4)
Research & credit adjustments to expense	—		0.2		0.3
Change in prior year estimated taxes	(2.4)		(0.1)		(1.8)
Total	17.4	%	11.8	%	18.0	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities for income taxes for the years ended August 31, 2022, and 2021 are as follows:


(in thousands)	2022		2021
Deferred tax assets:
Accrued compensation	$	563	$	586
Deferred revenue	241		102
Capitalized merger costs	703		703
Intellectual property	7		7
Research and development credits	347		66
Foreign tax credits	101		—
State taxes	128		72
Allowance for doubtful accounts	3		20
State tax deferred	28		80
Total deferred tax assets	2,121		1,636
Less: Valuation allowance	—		—
Deferred tax asset	2,121		1,636
Deferred tax liabilities:
Property and equipment	(109)		(83)
State tax deferred	(30)		(26)
Intellectual property	(1,139)		(1,456)
Capitalized computer software development costs	(2,299)		(1,797)
Total deferred tax liabilities	(3,577)		(3,362)

Net deferred tax liabilities	$	(1,456)	$	(1,726)