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INCOME TAXES (Tables) | 12 Months Ended
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Aug. 31, 2023
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax provision for the years ended August 31, 2023, 2022, and 2021 were as follows:
(in thousands) |  | 2023 |  | 2022 |  | 2021
Current |  |  |  |  |  |
Federal |  | $ | 2,990 |  |  | $ | 2,518 |  |  | $ | 1,315 |
State |  | 696 |  |  | 611 |  |  | 450 |
Foreign |  | 144 |  |  | (228) |  |  | 166 |
Total current tax expense |  | 3,830 |  |  | 2,901 |  |  | 1,931 |
Deferred |  |  |  |  |  |
Federal |  | (1,818) |  |  | (4) |  |  | (379) |
State |  | (278) |  |  | (265) |  |  | (249) |
Total deferred federal and state |  | (2,096) |  |  | (269) |  |  | (628) |
Total |  | $ | 1,734 |  |  | $ | 2,632 |  |  | $ | 1,303 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the expected income tax computed using the federal statutory income tax rate to the Company's effective income tax rate is as follows for the years ended August 31, 2023, 2022, and 2021:
| 2023 |  | 2022 |  | 2021
Income tax computed at federal statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal benefit | 4.7 |  |  | 3.2 |  |  | 2.0 |
Meals & entertainment | 0.1 |  |  | — |  |  | — |
Stock-based compensation | 2.1 |  |  | 0.6 |  |  | (6.8) |
Other permanent differences | 3.3 |  |  | 0.4 |  |  | (0.3) |
Research and development credit | (2.2) |  |  | (2.2) |  |  | (1.6) |
Foreign-tax-related differences | (8.2) |  |  | (3.2) |  |  | (2.6) |
Research & credit adjustments to expense | — |  |  | — |  |  | 0.2 |
Change in prior year estimated taxes | (6.0) |  |  | (2.4) |  |  | (0.1) |
Total | 14.8 | % |  | 17.4 | % |  | 11.8 | %
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities for income taxes for the years ended August 31, 2023, and 2022 are as follows:
(in thousands) |  | 2023 |  | 2022
Deferred tax assets: |  |  |  |
Accrued compensation |  | $ | 865 |  |  | $ | 563 |
Deferred revenue |  | 103 |  |  | 241 |
Capitalized merger costs |  | 696 |  |  | 703 |
Operating lease liability |  | 285 |  |  | — |
Intellectual property |  | — |  |  | 7 |
Research and development credits |  | 274 |  |  | 347 |
Foreign tax credits |  | — |  |  | 101 |
State taxes |  | (19) |  |  | 128 |
Allowance for doubtful accounts |  | 11 |  |  | 3 |
State tax deferred |  | — |  |  | 28 |
Capitalized Research & Development |  | 1,079 |  |  | — |
Share-Based Compensation |  | 1,104 |  |  | — |
Net Operating Loss Carryforward |  | 2,142 |  |  | — |
Total deferred tax assets |  | 6,540 |  |  | 2,121 |
Less: Valuation allowance |  | — |  |  | — |
Deferred tax asset |  | 6,540 |  |  | 2,121 |
Deferred tax liabilities: |  |  |  |
Property and equipment |  | (90) |  |  | (109) |
Operating lease right-of-use assets |  | (295) |  |  | — |
Unrealized Gain/(Loss) |  | (122) |  |  | — |
State tax deferred |  | — |  |  | (30) |
Intellectual property |  | (2,353) |  |  | (1,139) |
Capitalized computer software development costs |  | (2,242) |  |  | (2,299) |
Total deferred tax liabilities |  | (5,102) |  |  | (3,577) |
Net deferred tax assets (liabilities) |  | $ | 1,438 |  |  | $ | (1,456) |
Summary of Operating Loss Carryforwards | Net Operating Loss is summarized as follows:
(in thousands) |  | Amount
Federal NOL as of August 31, 2023 |  | $ | 17,775 |
Subject to expiration |  | 14,440 |
Carried forward indefinitely |  | 3,335 |
Amount to expire before Section 382 limitation lifts |  | 9,333 |
Pennsylvania NOL as of August 31, 2023 |  | 16,054 |
Subject to expiration |  | 16,054 |
Carried forward indefinitely |  | — |
Amount to expire before Section 382 limitation lifts |  | 10,935 |

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