Income Taxes (Tables)

12 Months Ended

Aug. 31, 2019

Notes to Financial Statements

Deferred income taxes

Significant components of the Company’s deferred tax assets at August 31, 2019 and 2018 are as follows:

	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	5,901,666		$	4,955,211
Capitalized research and development		1,014,380			992,354
Depreciation		(7,353	)		(6,314	)
Stock based compensation		1,983,425			1,151,958
Interest expense		-			283,307
Research and development credit carry forward		599,646			520,665
Total deferred tax assets		9,491,764			7,897,181
Less: valuation allowance		(9,491,764	)		(7,897,181	)
Net deferred tax asset	$	-		$	-

Schedule of effective income tax rate reconciliation

The following is a reconciliation between expected income tax benefit and actual, using the applicable statutory income tax rate of 21% for the year ended August 31, 2019 and 2018:

	2019			2018
Income tax benefit at statutory rate	$	1,446,412		$	1,737,285
Permanent differences		69,190			(296,092	)
Change in federal statutory rate		-			(4,074,264	)
Research and development credit		78,981			82,367
Change in valuation allowance		(1,594,583	)		2,550,704
	$	-		$	-