Income Taxes (Tables)

12 Months Ended

Aug. 31, 2021

Income Taxes

Schedule of Components of Income Tax Expense (Benefit)

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

	Years Ended August 31,
	2021		2020
Current:
Federal	$	2,489,000	$	1,436,000
State		868,000		664,000
Foreign		(62,000)		129,000
		3,295,000		2,229,000
Deferred:
Federal		(2,000)		1,423,000
State		—		(478,000)
Foreign		—		—
		(2,000)		945,000
Total	$	3,293,000	$	3,174,000

Schedule of Effective Income Tax Rate Reconciliation

Income taxes for the years ended August 31, 2021 and 2020 differ from the amounts computed by applying the federal blended and statutory corporate rates of 21% for both 2021 and 2020 to the pre-tax income. The differences are reconciled as follows:

	Years Ended August 31,
	2021			2020
Current:
Expected income tax provision at statutory rate		21.0	%		21.0	%
Increase (decrease) in taxes due to:
State tax, net of federal benefit		4.6	%		5.4	%
Permanent differences		(0.3)	%		0.4	%
Change in deferred tax asset valuation allowance		—			(3.8)	%
Prior year provisions and Payable True Up		—			6.4	%
Other, net		2.9	%		(0.5)	%
Income tax expense		28.2	%		28.9	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred taxes at August 31, 2021 and 2020 are summarized below:

	August 31,
Deferred tax assets (liabilities):	2021		2020
Net operating loss	$	357,000	$	405,000
Capital Loss		49,000		—
Allowance for doubtful accounts		(14,000)		1,000
Accrued expenses		383,000		262,000
Accrued workers’ compensation		(23,000)		(5,000)
Inventory adjustments		994,000		944,000
Unrealized losses on investment		(7,000)		54,000
Excess of tax over book depreciation		(957,000)		(850,000)
ROU Asset		(2,941,000)		—
ROU Liability		2,968,000		—
Other		62,000		63,000
		871,000		874,000
Valuation allowance		––		—
Total deferred tax assets, net	$	871,000		874,000