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INCOME TAXES (Tables)

12 Months Ended

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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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.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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