INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2020

Income Tax Disclosure [Abstract]

Components of the income tax provision

	2020			2019			2018
Current
Federal	$	2,097,725		$	1,794,596		$	2,370,955
State		477,744			426,364			460,619
Foreign		39,038			51,285			104,377
Total current tax expense (benefit)		2,614,507			2,272,245			2,935,951
Deferred
Federal		(427,644	)		(140,730	)		(1,698,201	)
State		(131,874	)		(158,368	)		(33,620	)
Total deferred federal and state		(559,518	)		(299,098	)		(1,731,821	)
Total	$	2,054,989		$	1,973,147		$	1,204,130

Effective income tax rate

	2020			2019			2018
Income tax computed at federal statutory tax rate		21.0	%		21.0	%		25.4	%
State taxes, net of federal benefit		4.2			4.1			4.0
Meals & entertainment		0.1			0.1			0.0
Stock based compensation		(1.2	)		(2.6	)		0.5
Other permanent differences		(0.3	)		(0.7	)		1.2
Research and development credit		(2.7	)		(2.3	)		(2.6	)
Foreign tax related differences		(1.4	)		–			–
Research & credit adjustments to expense		0.3			–			–
Domestic production activities		–			–			(1.8	)
Change in deferred income taxes due to statutory rate changes		–			–			(14.8	)
Change in prior year estimated taxes		(1.8	)		(0.9	)		(0.0	)
Total		18.0	%		18.7	%		11.9	%

Components of the Company deferred tax assets and liabilities

	2020			2019
Deferred tax assets
Accrued payroll and other expenses	$	402,355		$	236,455
Deferred revenue		6,862			55,038
Capitalized merger costs		742,056			361,103
Intellectual property		7,677			9,301
State taxes		100,326			89,537
Allowance for doubtful accounts		13,450			–
State tax deferred		125,417			146,815
Total deferred tax assets		1,398,143			898,249
Less: Valuation allowance		–			–
Deferred tax asset		1,398,143			898,249
Deferred tax liabilities
Property and equipment		(81,910	)		(61,991	)
State tax deferred		(19,468	)		(16,471	)
Intellectual property		(1,876,274	)		(2,217,234	)
Capitalized computer software development costs		(1,774,349	)		(1,334,169	)
Total deferred tax liabilities		(3,752,001	)		(3,629,865	)
Net deferred tax liabilities	$	(2,353,858	)	$	(2,731,616	)