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Note 12 - Employee Retention Credit
12 Months Ended
Aug. 31, 2023
Notes to Financial Statements  
Employee Retention Credit [Text Block]

12.

EMPLOYEE RETENTION CREDIT

 

The Company engaged tax advisors of a Big 4 accounting firm which determined the Company qualified for Employee Retention Credits. The Company qualified for Employee Retention Credits on qualified wages paid in the first and second quarters of 2021 and filed for credits in the second and third quarters of fiscal 2023, respectively. The Company recognizes government grants for which there is a reasonable assurance of compliance with grant conditions and receipt of credits. In 2023, the Company filed for $1,139,756 in Employee Retention Credits, but did not recognize the credits on the Company’s financial statements as there was not reasonable assurances that the Company would receive the credits.