3. REVENUE RECOGNITION (Tables)

6 Months Ended

Feb. 28, 2019

Revenue Recognition [Abstract]

Disaggregation of revenues

Disaggregation of Revenues:	Three Months Ended February 28, 2019		Six Months Ended February 28, 2019
Software licenses
Point in time	$	4,521,443	$	8,278,773
Over time		263,955		628,013
Consulting services
Over time		3,686,322		7,100,837
Total Revenue	$	8,471,720	$	16,007,623

Adjustments resulting from Topic 606

	Three Months Ended February 28, 2019
	As Reported			Balances Without the adoption of ASC Topic 606			Effect of Change
Revenues	$	8,471,720		$	8,525,655		$	(53,935	)
Cost of revenues		2,207,831			2,136,167			71,664
Gross profit		6,263,889			6,389,488			(125,599	)
Income from operations		2,730,164			2,855,763			(125,599	)
Income before provision for income taxes		2,695,633			2,821,232			(125,599	)
Provision for income taxes		(596,184	)		(627,584	)		31,400
Net Income	$	2,099,449		$	2,193,648		$	(94,199	)
Earnings per share-Diluted	$	0.12		$	0.12		$	–
Weighted-average common shares outstanding, Diluted		18,002,741			18,002,741			–

	Six Months Ended February 28, 2019
	As Reported			Balances Without the adoption of ASC Topic 606			Effect of Change
Revenues	$	16,007,623		$	16,004,736		$	2,887
Cost of revenues		4,406,952			4,280,183			126,769
Gross profit		11,600,671			11,724,553			(123,882	)
Income from operations		4,816,908			4,940,790			(123,882	)
Income before provision for income taxes		4,717,251			4,841,133			(123,882	)
Provision for income taxes		(1,081,855	)		(1,127,460	)		(45,605	)
Net Income	$	3,635,396		$	3,713,673		$	(78,277	)
Earnings per share-Diluted	$	0.20		$	0.20		$	–
Weighted-average common shares outstanding, Diluted		17,984,078			17,984,078			–

	Six Months Ended February 28, 2019
	As Reported			Balances Without the adoption of ASC Topic 606			Effect of Change
Cash Flows From Operating Activities:
Net income	$	3,635,396		$	3,713,673		$	(78,277	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,392,763			1,462,835			(70,072	)
Changes in operating assets and liabilities:
Deferred revenue		214,897			212,010			2,887
Net cash provided by operating activities		5,687,717			5,883,189			(195,472	)
Cash flows used in investing activities
Capitalized computer software development costs	$	(939,869	)	$	(1,136,709	)	$	196,840