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Note 15- Income Taxes (Tables)

12 Months Ended

Aug. 31, 2023

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

		Fiscal Year Ended August 31,
		2023				2022
Current:
Federal		$	—			$	—
State			26,000				98,000
Foreign			1,857,000				1,894,000
			1,883,000				1,992,000
Deferred:
Federal			—				—
State			—				—
Foreign			(533,400	)			(118,164	)
			(533,400	)			(118,164	)
		$	1,349,600			$	1,873,836

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

		Fiscal Year Ended August 31,
		2023				2022
Tax computed at statutory rates		$	1,352,000			$	1,780,000
State income tax, net of federal benefit			(20,000	)			34,000
Tax effect on equity in income of international joint ventures			(1,354,000	)			(988,000	)
Tax effect of foreign operations			1,005,000				1,004,000
Deemed repatriation			—				10,000
Foreign tax credit			783,000				—
Research and development credit			(710,000	)			(244,000	)
Valuation allowance			354,000				133,000
Stock based compensation			31,000				67,000
Non-controlling interest			(59,000	)			(72,000	)
Prior year true-up			(51,000	)			—
Other			18,600				149,836
		$	1,349,600			$	1,873,836

Summary of Income Tax Contingencies [Table Text Block]

		August 31,
		2023				2022
Stock-based compensation		$	556,700			$	547,200
Foreign tax credit carryforward			4,036,000				4,892,100
Capitalized research and experimentation			1,106,000				—
Other credit and loss carryforward			6,034,000				5,455,500
Other			1,048,800				1,095,300
Total deferred tax assets			12,781,500				11,990,100
Valuation allowance			(11,933,700	)			(11,592,900	)
Total deferred tax assets after valuation allowance			847,800				397,200
Right-of-use asset			(66,200	)			(98,300	)
Intangible assets			(1,670,700	)			(1,777,200	)
Unremitted foreign earnings			(214,800	)			(163,200	)
Other			(201,215	)			(58,500	)
Total deferred tax liabilities			(2,152,915	)			(2,097,200	)
Net deferred tax liabilities		$	(1,305,115	)		$	(1,700,000	)

		Fiscal Year Ended August 31,
		2023				2022
Gross unrecognized tax benefits – beginning balance		$	319,000			$	297,600
Gross increases – prior period tax positions			100				3,400
Gross increases – current period tax positions			42,100				18,000
Gross unrecognized tax benefits – ending balance		$	361,200			$	319,000

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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.

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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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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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