Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.20.2
Income taxes (Tables)
12 Months Ended
Aug. 31, 2020
Income Taxes  
Schedule of net deferred tax assets

 

 

 

 

 

 

 

 

 

August 31, 

 

    

2020

    

2019

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation

 

$

(111,000)

 

$

(122,000)

Software development costs

 

 

(265,000)

 

 

(845,000)

Note receivable

 

 

(1,132,000)

 

 

 —

Total deferred tax liabilities

 

 

(1,508,000)

 

 

(967,000)

 

 

 

  

 

 

  

Deferred tax assets:

 

 

  

 

 

  

Net operating loss carryforward

 

 

9,362,000

 

 

(9,157,000)

Business interest

 

 

3,087,000

 

 

(2,539,000)

Workers’ compensation accruals

 

 

2,202,000

 

 

1,763,000

Stock-based compensation

 

 

759,000

 

 

354,000

Deferred rent

 

 

14,000

 

 

15,000

Total deferred tax assets

 

 

15,424,000

 

 

13,828,000

Valuation allowance

 

 

(13,916,000)

 

 

(12,861,000)

Total net deferred tax assets

 

$

1,508,000

 

$

967,000

Net deferred tax assets

 

$

 —

 

$

 —

 

Schedule of Income tax expense

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

August 31, 

 

    

2020

    

2019

Current

 

 

  

 

 

  

Federal

 

$

 —

 

$

 —

State

 

 

 —

 

 

 —

Total current

 

 

 —

 

 

 —

Deferred

 

 

  

 

 

  

Federal

 

 

(4,670,000)

 

 

3,162,000

State

 

 

(1,915,000)

 

 

197,000

Total deferred

 

 

(6,584,000)

 

 

3,359,000

Change in valuation allowance

 

$

6,584,000

 

$

(3,359,000)

Total Income Tax Expense (Benefit)

 

$

 —

 

$

 —

 

Reconciliation of the statutory federal rate

 

 

 

 

 

 

 

 

    

August 31, 

    

August 31, 

 

 

2020

 

2019

Federal statutory rate (21%)

 

$

19,000,000

 

$

2,673,000

Non-deductible penalties and other permanent differences

 

 

(49,000)

 

 

(430,000)

State taxes (8.84%)

 

 

1,688,000

 

 

1,116,000

Redetermination of prior year taxes

 

 

(184,000)

 

 

 —

Loss on debt extinguishment

 

 

(747,000)

 

 

 —

Preferred option exchange expense

 

 

(13,039,000)

 

 

 —

Loss on inducement

 

 

(453,000)

 

 

 —

Change in fair value of derivative and warrant liability

 

 

368,000

 

 

 —

Change in valuation allowance

 

 

(6,584,000)

 

 

(3,359,000)

Net income tax provision

 

$

 —

 

$

 —