Annual report pursuant to Section 13 and 15(d)

Income taxes (Tables)

v3.19.3.a.u2
Income taxes (Tables)
12 Months Ended
Aug. 31, 2019
Income taxes (Tables)  
Schedule of net deferred tax assets

 

 

August 31,

 

2019

 

2018

 

in thousands

 

Deferred tax liabilities:

 

Depreciation

 

$

(122,000

)

 

$

(21,000

)

Software development costs

 

(845,000

)

 

(835,000

)

Total deferred tax liabilities

 

(967,000

)

 

(856,000

)

 

Deferred tax assets:

 

Net operating loss carryforward

 

9,157,000

 

8,010,000

 

Business interest

 

2,539,000

 

-

 

Workers’ compensation accruals

 

1,763,000

 

360,000

 

Stock-based compensation

 

354,000

 

172,000

 

Deferred rent

 

15,000

 

16,000

 

Total deferred tax assets

 

13,828,000

 

8,558,000

 

Valuation allowance

 

(12,861,000

)

 

(7,702,000

)

Total net deferred tax assets

 

967,000

 

856,000

 

Net deferred tax assets

 

$

-

 

$

-

 

Schedule of Income tax expense

 

 

For the Year Ended

 

August 31,

 

Current

 

2019

 

2018

 

Federal

 

$

-

 

$

-

 

State

 

-

 

-

 

Total current

 

-

 

-

 

Deferred

 

Federal

 

4,422,000

 

2,994,000

 

State

 

737,000

 

499,000

 

Total deferred

 

5,159,000

 

3,493,000

 

Change in valuation allowance

 

$

(5,159,000

)

 

$

(3,493,000

)

Total Income Tax Expense (Benefit)

 

-

 

-

 

Reconciliation of the statutory federal rate

 

August 31,

 

August 31,

 

2019

 

2018

 

Pre-tax book loss

 

$

3,933,000

 

$

4,145,000

 

Non-deductible penalties and other permanent differences

 

(430,000

 

(177,000

)

State taxes (8.84%)

 

1,656,000

 

1,466,000

 

Redetermination of prior year taxes

 

-

 

-

 

Enactment of the 2017 Tax Reform Act

 

-

 

(1,941,000

)

Change in valuation allowance

 

(5,159,000

)

 

(3,493,000

)

Net income tax provision

 

$

-

 

$

-