8. INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2016

Income Tax Disclosure [Abstract]

Components of the income tax provision

	2016			2015
Current
Federal	$	2,118,229		$	1,482,798
State		171,840			236,152
Foreign		19,428			75,099
		2,309,497			1,794,049
Deferred
Federal		22,936			(15,036	)
State		(46,177	)		70,955
		(23,241	)		55,919
Total	$	2,286,256		$	1,849,968

Effective income tax rate

	2016			2015
Income tax computed at federal statutory tax rate		34.0	%		34.0	%
State taxes, net of federal benefit		3.4			5.0
Meals & Entertainment		0.1			0.1
Stock Based Compensation		1.3			0.3
Other permanent differences		(0.6	)		(0.5	)
Research and development credit		(6.3	)		(6.9	)
Change in prior year estimated taxes		(0.3	)		0.5
Total		31.6	%		32.5	%

Components of the Company deferred tax assets and liabilities

	2016			2015
Deferred tax assets
Accrued payroll and other expenses	$	108,769		$	97,625
Deferred revenue		71,009			43,703
Capitalized merger costs		292,693			299,965
Intellectual property		21,205			24,221
Research and development credit		54,427			90,365
State taxes		58,426			78,089
State Tax Deferred		160,391			175,044
Total deferred tax assets		766,920			809,012
Less:  Valuation allowance		–			–
		766,920			809,012
Deferred tax liabilities
Property and equipment		(93,900	)		(159,980	)
State Tax Deferred		(9,491	)		(8,445	)
Intellectual Property		(2,004,451	)		(2,053,220	)
Capitalized computer software development costs		(1,615,284	)		(1,566,815	)
Total deferred tax liabilities		(3,723,126	)		(3,788,460	)
Net deferred tax liabilities	$	(2,956,206	)	$	(2,979,447	)