Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Operations

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Consolidated Statements of Operations - USD ($)
12 Months Ended
Aug. 31, 2019
Aug. 31, 2018
Consolidated Statements of Operations    
Revenues (gross billings of $352.6 million and $222.4 million (unaudited) less worksite employee payroll cost of $299.2 million and $187.5 million (unaudited), respectively) $ 53,436,000 $ 34,959,000
Cost of revenue 41,046,000 29,458,000
Gross profit 12,390,000 5,500,000
Operating expenses:    
Salaries, wages and payroll taxes 7,702,000 5,383,000
Share-based compensation - general and administrative 632,000 363,000
Commissions 2,732,000 1,594,000
Professional fees 3,918,000 2,078,000
Software development 1,209,000 3,828,000
Marketing and advertising 1,208,000 547,000
General and administrative 3,823,000 3,005,000
Depreciation and amortization 839,000 274,000
Total operating expenses 22,063,000 17,072,000
Operating Loss (9,673,000) (11,572,000)
Other income    
Interest expense (8,507,000) (1,751,000)
Loss on debt extinguishment (3,927,000)
Change in fair value of derivative 2,569,000
Gain (Loss) associated with note defaults, net 811,000 (3,500,000)
Total Other income (expense) (9,054,000) (5,251,000)
Net Loss $ (18,727,000) $ (16,823,000)
Net loss per common share    
Basic and diluted $ (0.57) $ (0.58)
Weighted average number of common shares    
Basic and diluted 32,708,800 28,810,103