Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.23.1
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Feb. 28, 2023
Accounting Policies [Abstract]  
Disaggregation of Revenue The Company’s disaggregated revenues for the three and six months ended February 28, 2023 and February 28, 2022, respectively, were as follows:
For the Three Months Ended
For the Six Months Ended
Revenue (in thousands): February 28,
2023
February 28, 2022
February 28,
2023
February 28, 2022
HCM1
$ 1,558 $ 1,588 $ 2,970  $ 3,333
Staffing 3,021  8,849  6,874  16,045 
$ 4,579  $ 10,437  $ 9,844  $ 19,378 
1 HCM revenue is presented net, $12 million and $23.6 million gross billings less WSE payroll costs of $10.4 million and $20.6 million for the three and six months ended February 28, 2023 and $12.6 million and $25.5 million, respectively Gross billings less WSE payroll costs for the three and six months ended February 2022, was $11 million and $22.2 million, respectively.
Revenue from External Customers by Geographic Areas
For the three and six months ended February 28, 2023 and February 28, 2022, respectively, the following geographical regions represented more than 10% of total revenues:
For the Three Months Ended
For the Six Months Ended
Region:
February 28, 2023
February 28, 2022
February 28, 2023
February 28, 2022
California 43.6  % 53.5  % 46.3  % 53.9  %
Washington 11.1  % 12.5  % 11.7  % 13.1  %
New Mexico 12.9  % % 11.7  % 7.2  %
Schedules of Concentration of Risk, by Risk Factor The following represents clients who have ten percent of total accounts receivable as of February 28, 2023 and August 31, 2022, respectively.
As of
February 28, 2023 August 31, 2022
Clients: (Unaudited)
Client 1 71.5  % —  %
Client 2 15.7  % 39.2  %
Client 3 6.3  % 15.4  %
Client 4 5.8  % 22.0  %
Schedule of Estimated Useful Lives of Property and Equipment The estimated useful lives of property and equipment for purposes of computing depreciation are as follows:
Equipment: 5 years
Furniture & Fixtures:
5 - 7 years
Leasehold improvements
Shorter of useful life or the remaining lease term, typically 5 years
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share Securities that are excluded from the calculation of weighted average dilutive common stock, because their inclusion would have been antidilutive, are:
For the Three and Six Months Ended
February 28, 2023
February 28, 2022
February 28, 2023
February 28, 2022
Options (See Note 5) 10,003  17,695  10,003  17,695 
Warrants (See Note 5) 1,252,749  271,137  1,252,749  224,402 
Shares of common stock to be issued to the directors for services provided, (See Note 7) 59,040  —  59,040  — 
Preferred Option (Note 5) 37,570  —  37,570  — 
Total potentially dilutive shares 1,359,362  288,832  1,359,362  242,097