Income Taxes (Tables)

12 Months Ended

Aug. 31, 2014

Schedule of Provision for Income Tax [Table Text Block]

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

	For the Year Ended August 31,
	2014		2013
Current:
Federal	$	751,000	$	467,000
State		214,000		269,000
Foreign		9,000		(94,000)
		974,000		642,000

Deferred:
Federal		(343,000)		1,113,000
State		378,000		(446,000)
Foreign		-		-
		35,000		667,000
Total	$	1,009,000	$	1,309,000

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income taxes for the years ended August 31, 2014 and August 31, 2013 differ from the amounts computed by applying the federal statutory corporate rates of 34% to the pre-tax income from continuing operations.

The differences are reconciled as follows:

	For the Year Ended August 31,
	2014		2013
Current:
Expected income tax benefit at statutory rate	$	2,085,000	$	1,335,000
Increase (decrease) in taxes due to:		-
State tax, net of federal benefit		287,000		197,000
Permanent differences		29,000		24,000
Change in deferred tax asset valuation allowance		(919,000)		(2,392,000)
Other, net		(473,000)		2,145,000
Income tax expense (benefit)	$	1,009,000	$	1,309,000

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred taxes at August 31, 2014 and 2013 are summarized below:

	August 31,
	2014		2013
Deferred tax assets:
Net operating loss	$	527,000	$	432,000
Capital losses		99,000		1,344,000
Allowance for doubtful accounts		4,000		49,000
Accrued expenses		333,000		186,000
Accrued worker's compensation		125,000		987,000
Inventory reserve		644,000		618,000
Unrealized losses on investment		(51,000)		(37,000)
Excess of tax over book depreciation		(131,000)		562,000
Other		331,000		267,000
Total deferred tax assets		1,881,000		4,368,000
Valuation allowance		(576,000)		(1,495,000)
		1,305,000		2,873,000
Deferred tax liabilities:
Deferred gains		–		(1,140,000)
Total deferred tax liabilities		–		(1,140,000)

Total deferred tax assets	$	1,305,000	$	1,733,000