Income Taxes (Tables)

12 Months Ended

Aug. 31, 2022

Income Taxes

Schedule of Components of Income Tax Expense (Benefit)

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

	Years Ended August 31,
	2022		2021
Current:
Federal	$	5,547,000	$	2,489,000
State		1,608,000		868,000
Foreign		322,000		(62,000)
		7,477,000		3,295,000
Deferred:
Federal		63,000		(2,000)
State		270,000		—
Foreign		—		—
		333,000		(2,000)
Total	$	7,810,000	$	3,293,000

Schedule of Effective Income Tax Rate Reconciliation

Income taxes for the years ended August 31, 2022 and 2021 differ from the amounts computed by applying the federal blended and statutory corporate rates of 21% for both 2022 and 2021 to the pre-tax income. The differences are reconciled as follows:

	Years Ended August 31,
	2022			2021
Current:
Expected income tax provision at statutory rate		21.0	%		21.0	%
Increase (decrease) in taxes due to:
State tax, net of federal benefit		4.4	%		4.6	%
Permanent differences		0.1	%		(0.3)	%
Other, net		1.3	%		2.9	%
Income tax expense		26.8	%		28.2	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred taxes at August 31, 2022 and 2021 are summarized below:

	August 31,
Deferred tax assets (liabilities):	2022		2021
Net operating loss	$	174,000	$	357,000
Accruals and reserves		1,148,000		1,401,000
Income tax credits		1,000		1,000
Capital loss		40,000		49,000
Lease liability		2,789,000		2,968,000
Property and equipment, net		(958,000)		(957,000)
Operating lease, right-of-use assets		(2,742,000)		(2,941,000)
Unrealized gains/losses		85,000		(7,000)
		537,000		871,000
Valuation allowance		––		—
Total deferred tax assets, net	$	537,000		871,000