8. INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2017

Income Tax Disclosure [Abstract]

Components of the income tax provision

	2017			2016			2015
Current
Federal	$	2,385,660		$	2,118,229		$	1,482,798
State		217,281			171,840			236,152
Foreign		28,103			19,428			75,099
		2,631,044			2,309,497			1,794,049
Deferred
Federal		(612,629	)		22,936			(15,036	)
State		434,255			(46,177	)		70,955
		(178,374	)		(23,241	)		55,919
Total	$	2,452,670		$	2,286,256		$	1,849,968

Effective income tax rate

	2017			2016			2015
Income tax computed at federal statutory tax rate		34.0%			34.0%			34.0%
State taxes, net of federal benefit		3.5			3.4			5.0
Meals & Entertainment		0.0			0.1			0.1
Stock Based Compensation		0.0			1.3			0.3
Other permanent differences		(0.5	)		(0.6	)		(0.0	)
Research and development credit		(3.6	)		(2.7	)		(4.5	)
Domestic Production Activities		(2.3	)		(3.6	)		(2.9	)
Change in prior year estimated taxes		(1.3	)		(0.3	)		0.5
Total		29.8%			31.6%			32.5%

Components of the Company deferred tax assets and liabilities

	2017			2016
Deferred tax assets
Accrued payroll and other expenses	$	254,897		$	108,769
Deferred revenue		62,617			71,009
Capitalized merger costs		540,312			292,693
Intellectual property		18,775			21,205
Research and development credit		–			54,427
State taxes		91,513			58,426
State Tax Deferred		293,879			160,391
Total deferred tax assets		1,261,993			766,920
Less:  Valuation allowance		–			–
		1,261,993			766,920
Deferred tax liabilities
Property and equipment		(95,071	)		(93,900	)
State Tax Deferred		(16,763	)		(9,491	)
Intellectual Property		(4,343,311	)		(2,004,451	)
Capitalized computer software development costs		(1,733,808	)		(1,615,284	)
Total deferred tax liabilities		(6,188,953	)		(3,723,126	)
Net deferred tax liabilities	$	(4,926,960	)	$	(2,956,206	)