Income Taxes

12 Months Ended

Aug. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 7. Income Taxes

The following summarizes the Company’s provision for income taxes on income from operations:

	Years Ended August 31,
	2025		2024
Current:
Federal	$	6,675,000	$	6,408,000
State		2,403,000		2,218,000
Foreign		260,000		387,000
		9,338,000		9,013,000
Deferred:
Federal		1,276,000		(2,253,000)
State		5,000		(425,000)
Foreign		—		—
		1,281,000		(2,678,000)
Total	$	10,618,000	$	6,335,000

Income taxes for the years ended August 31, 2025 and 2024 differ from the amounts computed by applying the federal blended and statutory corporate rates of 21% for both 2025 and 2024 to the pre-tax income. The differences are reconciled as follows:

	Years Ended August 31,
	2025			2024
Current:
Expected income tax provision at statutory rate		21.0	%		21.0	%
Increase (decrease) in taxes due to:
State tax, net of federal benefit		5.5	%		6.3	%
Permanent differences		(0.6)	%		(0.7)	%
Other, net		(1.2)	%		3.2	%
Income tax expense		24.7	%		29.8	%

The components of deferred taxes at August 31, 2025 and 2024 as included in other assets on the consolidated balance sheets, are summarized below:

	August 31,
Deferred tax assets (liabilities):	2025		2024
Net operating loss	$	—	$	—
Accruals and reserves		1,936,000		3,448,000
Income tax credits		—		1,000
Capital loss		42,000		39,000
Lease liability		1,902,000		1,871,000
Property and equipment, net		186,000		(101,000)
Operating lease, right-of-use assets		(1,814,000)		(1,849,000)
Unrealized gains/losses		(71,000)		53,000
Total deferred tax assets, net	$	2,181,000	$	3,462,000

Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing DTA. On the basis of this evaluation, as of August 31, 2025, no valuation allowance has been recorded.

We are subject to taxation in the United States and various states and foreign jurisdictions. With few exceptions, as of August 31, 2025, we are no longer subject to U.S. federal, state, local, Canadian examinations by tax authorities for years before 2021.