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INCOME TAXES (Tables) | 12 Months Ended
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Aug. 31, 2025
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax (benefit) expense for the fiscal years ended August 31, 2025, 2024, and 2023 were as follows:
(in thousands) |  | 2025 |  | 2024 |  | 2023
Current |  |  |  |  |  |
Federal |  | $ | 747 |  |  | $ | 3,291 |  |  | $ | 2,990 |
State |  | (59) |  |  | 742 |  |  | 696 |
Foreign |  | 108 |  |  | 3 |  |  | 144 |
Total current tax expense |  | 796 |  |  | 4,036 |  |  | 3,830 |
Deferred |  |  |  |  |  |
Federal |  | (4,432) |  |  | (1,466) |  |  | (1,818) |
State |  | (1,023) |  |  | (113) |  |  | (278) |
Total deferred federal and state |  | (5,455) |  |  | (1,579) |  |  | (2,096) |
Total |  | $ | (4,659) |  |  | $ | 2,457 |  |  | $ | 1,734 |
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 fiscal years ended August 31, 2025, 2024, and 2023:
|  | 2025 |  | 2024 |  | 2023
Income tax computed at federal statutory tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal benefit |  | 1.1 | % |  | 3.5 | % |  | 4.7 | %
Meals & entertainment |  | — | % |  | 0.1 | % |  | 0.1 | %
Stock-based compensation |  | (0.6) | % |  | 3.9 | % |  | 2.1 | %
Other permanent differences |  | (1.0) | % |  | (0.2) | % |  | 3.3 | %
Research and development credit |  | 0.4 | % |  | (1.3) | % |  | (2.2) | %
Foreign-tax-related differences |  | 1.4 | % |  | (7.0) | % |  | (8.2) | %
Goodwill Impairment |  | (15.7) | % |  | — | % |  | — | %
Change in prior year estimated taxes |  | 0.4 | % |  | (0.2) | % |  | (6.0) | %
Non-deductible expenses |  | (0.3) | % |  | — | % |  | — | %
Total |  | 6.7 | % |  | 19.8 | % |  | 14.8 | %
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities for income taxes for the fiscal years ended August 31, 2025, and 2024 are as follows:
(in thousands) |  | 2025 |  | 2024
Deferred tax assets: |  |  |  |
Accrued compensation |  | $ | 31 |  |  | $ | 681 |
Deferred revenue |  | 30 |  |  | 186 |
Capitalized merger costs |  | — |  |  | 707 |
Operating lease liability |  | 41 |  |  | 255 |
Research and development credits |  | 60 |  |  | 157 |
Allowance for credit losses |  | 24 |  |  | 67 |
Capitalized research & development |  | 5,157 |  |  | 3,933 |
Share-based compensation |  | 2,297 |  |  | 1,676 |
Capital loss carryforward |  | 25 |  |  | — |
Accrued sales tax |  | 67 |  |  | — |
Net operating loss carryforward |  | 1,923 |  |  | 3,336 |
Charitable contributions |  | 1 |  |  | — |
Total deferred tax assets |  | 9,656 |  |  | 10,998 |
Less: Valuation allowance |  | — |  |  | — |
Deferred tax asset |  | 9,656 |  |  | 10,998 |
Deferred tax liabilities: |  |  |  |
Property and equipment |  | (131) |  |  | (111) |
Operating lease right-of-use assets |  | — |  |  | (259) |
Unrealized loss |  | (34) |  |  | (40) |
State tax deferred |  | (10) |  |  | (25) |
Intellectual property |  | (2,230) |  |  | (9,012) |
Capitalized computer software development costs |  | (2,477) |  |  | (3,086) |
Prepaid expenses |  | — |  |  | (73) |
Total deferred tax liabilities |  | (4,882) |  |  | (12,606) |
Net deferred tax assets (liabilities) |  | $ | 4,774 |  |  | $ | (1,608) |
Summary of Operating Loss Carryforwards | Net Operating Loss is summarized as follows:
(in thousands) |  | Amount
Federal NOL as of August 31, 2025 |  | $ | 17,045 |
Subject to expiration |  | 13,710 |
Carried forward indefinitely |  | 3,335 |
Amount to expire before Section 382 limitation lifts |  | 9,697 |
Pennsylvania NOL as of August 31, 2025 |  | 14,771 |
Subject to expiration |  | 14,771 |
Carried forward indefinitely |  | — |
Amount to expire before Section 382 limitation lifts |  | 10,639 |
North Carolina NOL as of August 31, 2025 |  | 2,215 |
Subject to expiration |  | 2,215 |
Carried forward indefinitely |  | — |
Amount to expire before Section 382 limitation lifts |  | — |
Oregon NOL as of August 31, 2025 |  | 166 |
Subject to expiration |  | 166 |
Carried forward indefinitely |  | — |
Amount to expire before Section 382 limitation lifts |  | — |
California R&D Credit as of August 31, 2025 |  | 44 |
Subject to expiration |  | — |
Carried forward indefinitely |  | 44 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
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