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3. REVENUE RECOGNITION (Tables) | 12 Months Ended
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Aug. 31, 2019
Revenue Recognition [Abstract] |
Disaggregation of revenues |
Disaggregation of Revenues: |  | Year Ended August 31, 2019 |
Software licenses |  |  |  |
Point in time |  | $ | 17,425,353 |
Over time |  |  | 1,053,562 |
Consulting services |  |  |  |
Over time |  |  | 15,491,525 |
Total Revenue |  | $ | 33,970,440 |
Adjustments resulting from Topic 606 | The following table summarizes the adjustments made to accounts on the condensed consolidated balance sheet as of September 1, 2018 as a result of applying the modified retrospective method to adopt ASC Topic 606:
|  | As Reported August 31, 2018 |  |  | Adjustments to reflect the adoption of ASC Topic 606 |  |  | As Adjusted September 1, 2018 |
Capitalized Software, net |  | $ | 5,152,594 |  |  | $ | (629,100 | ) |  | $ | 4,523,494 |
Deferred revenue |  |  | 381,928 |  |  |  | 28,606 |  |  |  | 410,534 |
Deferred income taxes, net |  |  | 3,195,139 |  |  |  | (164,427 | ) |  |  | 3,030,713 |
Retained Earnings |  | $ | 18,461,540 |  |  | $ | (493,279 | ) |  | $ | 17,968,261 |
The following tables present the amount by which each condensed consolidated financial statement line item is affected as of and for the year ended August 31, 2019 by ASC Topic 606:
|  | Year Ended August 31, 2019 |
|  | As Reported |  |  | Balances Without the adoption of ASC Topic 606 |  |  | Effect of Change |
Revenues |  | $ | 33,970,440 |  |  | $ | 33,992,369 |  |  | $ | (21,929 | )
Cost of revenues |  |  | 9,025,704 |  |  |  | 8,824,474 |  |  |  | 201,230 |
Gross profit |  |  | 24,944,736 |  |  |  | 25,167,895 |  |  |  | (223,159 | )
Income from operations |  |  | 10,648,729 |  |  |  | 10,871,888 |  |  |  | (223,159 | )
Income before provision for income taxes |  |  | 10,556,476 |  |  |  | 10,779,635 |  |  |  | (223,159 | )
Provision for income taxes |  |  | (1,973,147 | ) |  |  | (2,043,571 | ) |  |  | (70,424 | )
Net income |  | $ | 8,583,329 |  |  | $ | 8,736,064 |  |  | $ | (152,735 | )
Earnings per share-diluted |  | $ | 0.48 |  |  | $ | 0.48 |  |  | $ | – |
Weighted-average common shares outstanding, diluted |  |  | 18,057,431 |  |  |  | 18,057,431 |  |  |  | – |
|  | Year Ended August 31, 2019 |
|  | As Reported |  |  | Balances Without the adoption of ASC Topic 606 |  |  | Effect of Change |
Cash Flows From Operating Activities: |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 8,583,329 |  |  | $ | 8,736,064 |  |  | $ | (152,735 | )
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 2,750,245 |  |  |  | 2,890,389 |  |  |  | (140,144 | )
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Deferred revenue |  |  | (295,966 | ) |  |  | (274,037 | ) |  |  | 21,929 |
Net cash provided by operating activities |  |  | 11,438,762 |  |  |  | 11,167,812 |  |  |  | (270,950 | )
Cash flows used in investing activities |  |  |  |  |  |  |  |  |  |  |  |
Capitalized computer software development costs |  | $ | (1,767,996 | ) |  | $ | (2,109,369 | ) |  | $ | 341,373 |
Cost, estimated earnings and billings on uncompleted contracts | Contracts in Progress Contracts in progress are included in the accompanying balance sheets under the following captions:
|  | 2019 |  |  | 2018 |
Revenues in excess of billings |  | $ | 3,233,659 |  |  | $ | 1,985,596 |
Billings in excess of revenues |  |  | (798,549 | ) |  |  | (384,603 | )
|  | $ | 2,435,110 |  |  | $ | 1,600,993 |
Cost, estimated earnings, and billings on uncompleted contracts are summarized as follows as of August 31, 2019 and 2018:
|  | 2019 |  |  | 2018 |
Revenues earned to date on uncompleted contracts |  | $ | 19,254,928 |  |  | $ | 11,794,764 |
Billings to date on uncompleted contracts |  |  | (16,819,818 | ) |  |  | (10,193,771 | )
|  | $ | 2,435,110 |  |  | $ | 1,600,993 |

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