|12 Months Ended|
Aug. 31, 2021
Note 7: Fixed Assets
Fixed assets consisted of the following at August 31, 2021 and August 31, 2020:
Depreciation and amortization expense for Fiscal 2021 and Fiscal 2020 was $357,000 and $272,000, respectively.
Included in the equipment balance at August 31, 2021 is $961,000 of equipment purchased but not placed in service.
Software consists primarily of customized software purchased from third party providers, which is incorporated into the Company’s HRIS platform and related mobile application. No software cost was capitalized during Fiscal 2021. For Fiscal 2020, the Company recorded $3,737,000 of capitalized software cost, which was impaired during the year.
The Company has evaluated certain development costs of its software solution in accordance with ASC Topic 350‑40, Internal Use Software, which outlines the stages of computer software development and specifies when capitalization of costs is required. Projects that are determined to be in the development stage are capitalized and amortized over their useful lives of five years. Projects that are determined to be within the preliminary stage are expensed as incurred. For Fiscal 2021 and Fiscal 2020, no internally developed software was capitalized. A substantial portion of the capitalized software is attributable to a third party with whom the Company is engaged in litigation described below in Note 16, Contingencies, Kadima Litigation. During Fiscal 2021, the Company evaluated its capitalized software costs in the context of the procedural status and progress of this litigation. Based on this evaluation, and the Company’s estimate of the timeline for the resolution of this matter, the Company determined the capital software costs related to certain of the applications not in use to be impaired.
The entire disclosure for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef