Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.21.2
Income taxes (Tables)
12 Months Ended
Aug. 31, 2021
Income Taxes  
Schedule of net deferred tax assets

 

 

 

 

 

 

 

 

 

August 31, 

 

    

2021

    

2020

Deferred tax liabilities:

 

 

 

 

 

 

Depreciation

 

$

(597,000)

 

$

(111,000)

Software development costs

 

 

 —

 

 

(265,000)

Note receivable

 

 

(1,088,000)

 

 

(1,132,000)

Total deferred tax liabilities

 

 

(1,685,000)

 

 

(1,508,000)

 

 

 

  

 

 

  

Deferred tax assets:

 

 

  

 

 

  

Net operating loss carryforward

 

 

18,198,000

 

 

9,362,000

Business interest

 

 

2,998,000

 

 

3,087,000

Other accruals

 

 

458,000

 

 

 —

Workers’ compensation accruals

 

 

2,061,000

 

 

2,202,000

Stock-based compensation

 

 

207,000

 

 

759,000

Deferred rent

 

 

168,000

 

 

14,000

Other

 

 

6,000

 

 

 —

Total deferred tax assets

 

 

24,096,000

 

 

15,424,000

Valuation allowance

 

 

(22,411,000)

 

 

(13,916,000)

Total net deferred tax assets

 

$

1,685,000

 

$

1,508,000

Net deferred tax assets

 

$

 —

 

$

 —

 

Schedule of Income tax expense

 

 

 

 

 

 

 

 

 

For the Year Ended

 

 

August 31, 

 

    

2021

    

2020

Current

 

 

  

 

 

  

Federal

 

$

 —

 

$

 —

State

 

 

42,000

 

 

 —

Total current

 

 

42,000

 

 

 —

Deferred

 

 

  

 

 

  

Federal

 

 

(5,059,000)

 

 

(4,669,000)

State

 

 

(2,807,000)

 

 

(1,915,000)

Total deferred

 

 

(7,866,000)

 

 

(6,584,000)

Change in valuation allowance

 

$

7,866,000

 

$

6,584,000

Total Income Tax Expense (Benefit)

 

$

42,000

 

$

 —

 

Reconciliation of the statutory federal rate

 

 

 

 

 

 

 

 

    

August 31, 

    

August 31, 

 

 

2021

 

2020

Federal statutory rate (21%)

 

$

(5,738,000)

 

$

(19,000,000)

Non-deductible penalties and other permanent differences

 

 

333,000

 

 

49,000

State and local income taxes, net of federal benefit

 

 

(1,607,000)

 

 

(1,688,000)

Redetermination of prior year taxes

 

 

(812,000)

 

 

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

 

 

7,866,000

 

 

6,584,000

Net income tax provision

 

$

42,000

 

$

 —