Income Taxes (Tables)

12 Months Ended

Aug. 31, 2015

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following summarizes the Company’s provision for income taxes on income from continuing and discontinued operations:

	For the Year Ended August 31,
	2015		2014
Current:
Federal	$	1,568,000	$	751,000
State		325,000		214,000
Foreign		(5,000)		9,000
		1,888,000		974,000

Deferred:
Federal		560,000		(343,000)
State		(194,000)		378,000
Foreign		-		-
		366,000		35,000
Total	$	2,254,000	$	1,009,000

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income taxes for the years ended August 31, 2015 and August 31, 2014 differ from the amounts computed by applying the federal statutory corporate rates of 34% to the pre-tax income from continuing operations.

The differences are reconciled as follows:

	For the Year Ended August 31,
	2015		2014
Current:
Expected income tax benefit at statutory rate	$	2,008,000	$	2,085,000
Increase (decrease) in taxes due to:
State tax, net of federal benefit		284,000		287,000
Permanent differences		32,000		29,000
Change in deferred tax asset valuation allowance		62,000		(919,000)
Other, net		(132,000)		(473,000)
Income tax expense (benefit)	$	2,254,000	$	1,009,000

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred taxes at August 31, 2015 and 2014 are summarized below:

	August 31,
Deferred tax assets:	2015		2014
Net operating loss	$	522,000	$	527,000
Capital losses		116,000		99,000
Allowance for doubtful accounts		14,000		4,000
Accrued expenses		146,000		333,000
Accrued workers’ compensation		32,000		125,000
Inventory reserve		775,000		644,000
Unrealized losses on investment		(254,000)		(51,000)
Excess of tax over book depreciation		(78,000)		(131,000)
Other		305,000		331,000
Total deferred tax assets		1,578,000		1,881,000
Valuation allowance		(639,000)		(576,000)
Total deferred tax assets	$	939,000	$	1,305,000