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INCOME TAXES
 12 Months Ended
Aug. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

6.        INCOME TAXES

 

A reconciliation of the provision for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:

        
   2025   2024 
         
Computed tax at the federal statutory rate  $53,026   $92,555 
State taxes, net of federal benefit   30,000    10,000 
Other   3,140    669 
           
Provision for income taxes  $86,166   $103,224 
           
Current income taxes  $86,166   $103,224 
Deferred income taxes   157,903    (21,154)
Income tax expense benefit net  $244,069   $82,070 

 

Deferred income tax asset as of August 31, 2025 of $3 (August 31, 2024 – $341,029) reflects the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

        
   2025   2024 
         
Deferred tax assets:          
Allowance for inventory  $1,373,812   $443,913 
Allowance for bad debts   —    — 
Difference between book and tax depreciation   (76,399)   (13,587)
           
Total deferred tax assets   1,297,413    430,326 
Valuation allowance   (1,210,164)   — 
           
Net deferred tax assets   87,249    430,326 
           
Net deferred tax liability   (87,246)   (89,297)
           
Combined net deferred tax asset (liability)  $3   $341,029