INCOME TAXES (Tables)

12 Months Ended

Aug. 31, 2021

Income Tax Disclosure [Abstract]

Components of the income tax provision

(in thousands)	2021			2020			2019
Current
Federal	$	1,315		$	2,098		$	1,795
State		450			478			426
Foreign		166			39			51
Total current tax expense		1,931			2,615			2,272
Deferred
Federal		(379	)		(428	)		(141	)
State		(249	)		(132	)		(158	)
Total deferred federal and state		(628	)		(560	)		(299	)
Total	$	1,303		$	2,055		$	1,973

Effective income tax rate

	2021			2020			2019
Income tax computed at federal statutory tax rate		21.0	%		21.0	%		21.0	%
State taxes, net of federal benefit		2.0			4.1			4.1
Meals & entertainment		–			0.1			0.1
Stock based compensation		(6.8	)		(1.2	)		(2.6	)
Other permanent differences		(0.3	)		(0.3	)		(0.7	)
Research and development credit		(1.6	)		(2.8	)		(2.3	)
Foreign tax related differences		(2.6	)		(1.4	)		–
Research & credit adjustments to expense		0.2			0.3			–
Change in prior year estimated taxes		(0.1	)		(1.8	)		(0.9	)
Total		11.8	%		18.0	%		18.7	%

Components of company deferred tax assets and liabilities

(in thousands)	2021			2020
Deferred tax assets:
Accrued payroll and other expenses	$	586		$	402
Deferred revenue		102			7
Capitalized merger costs		703			742
Intellectual property		7			8
Research and development credits		66			–
State taxes		72			100
Allowance for doubtful accounts		20			13
State tax deferred		80			125
Total deferred tax assets		1,636			1,397
Less: Valuation allowance		–			–
Deferred tax asset		1,636			1,397
Deferred tax liabilities:
Property and equipment		(83	)		(82	)
State tax deferred		(26	)		(19	)
Intellectual property		(1,456	)		(1,876	)
Capitalized computer software development costs		(1,797	)		(1,774	)
Total deferred tax liabilities		(3,362	)		(3,751	)
Net deferred tax liabilities	$	(1,726	)	$	(2,354	)