3. REVENUE RECOGNITION (Tables)

12 Months Ended

Aug. 31, 2019

Revenue Recognition [Abstract]

Disaggregation of revenues

Disaggregation of Revenues:	Year Ended August 31, 2019
Software licenses
Point in time	$	17,425,353
Over time		1,053,562
Consulting services
Over time		15,491,525
Total Revenue	$	33,970,440

Adjustments resulting from Topic 606

The following table summarizes the adjustments made to accounts on the condensed consolidated balance sheet as of September 1, 2018 as a result of applying the modified retrospective method to adopt ASC Topic 606:

	As Reported August 31, 2018		Adjustments to reflect the adoption of ASC Topic 606			As Adjusted September 1, 2018
Capitalized Software, net	$	5,152,594	$	(629,100	)	$	4,523,494
Deferred revenue		381,928		28,606			410,534
Deferred income taxes, net		3,195,139		(164,427	)		3,030,713
Retained Earnings	$	18,461,540	$	(493,279	)	$	17,968,261

The following tables present the amount by which each condensed consolidated financial statement line item is affected as of and for the year ended August 31, 2019 by ASC Topic 606:

	Year Ended August 31, 2019
	As Reported			Balances Without the adoption of ASC Topic 606			Effect of Change
Revenues	$	33,970,440		$	33,992,369		$	(21,929	)
Cost of revenues		9,025,704			8,824,474			201,230
Gross profit		24,944,736			25,167,895			(223,159	)
Income from operations		10,648,729			10,871,888			(223,159	)
Income before provision for income taxes		10,556,476			10,779,635			(223,159	)
Provision for income taxes		(1,973,147	)		(2,043,571	)		(70,424	)
Net income	$	8,583,329		$	8,736,064		$	(152,735	)
Earnings per share-diluted	$	0.48		$	0.48		$	–
Weighted-average common shares outstanding, diluted		18,057,431			18,057,431			–

	Year Ended August 31, 2019
	As Reported			Balances Without the adoption of ASC Topic 606			Effect of Change
Cash Flows From Operating Activities:
Net income	$	8,583,329		$	8,736,064		$	(152,735	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,750,245			2,890,389			(140,144	)
Changes in operating assets and liabilities:
Deferred revenue		(295,966	)		(274,037	)		21,929
Net cash provided by operating activities		11,438,762			11,167,812			(270,950	)
Cash flows used in investing activities
Capitalized computer software development costs	$	(1,767,996	)	$	(2,109,369	)	$	341,373

Cost, estimated earnings and billings on uncompleted contracts

Contracts in Progress

Contracts in progress are included in the accompanying balance sheets under the following captions:

	2019			2018
Revenues in excess of billings	$	3,233,659		$	1,985,596
Billings in excess of revenues		(798,549	)		(384,603	)
	$	2,435,110		$	1,600,993

Cost, estimated earnings, and billings on uncompleted contracts are summarized as follows as of August 31, 2019 and 2018:

	2019			2018
Revenues earned to date on uncompleted contracts	$	19,254,928		$	11,794,764
Billings to date on uncompleted contracts		(16,819,818	)		(10,193,771	)
	$	2,435,110		$	1,600,993