Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.2
INCOME TAXES (Tables)
 12 Months Ended
Aug. 31, 2020
INCOME TAXES [Abstract]  
Deferred Tax Assets
Significant components of the Company’s deferred tax assets as of August 31 are as follows:

   
For the Fiscal Years Ended August 31,
  
   
2020
    
2019
  
Deferred tax assets (liabilities):
            
Net operating loss carryforwards
  
$
22,922
    
$
609,439
  
AMT credit carryforward
    
—
      
—
  
Accrued compensation
    
166,948
      
113,559
  
Deferred revenues
    
88,994
      
149,895
  
Depreciation and depletion
    
(1,700,771
)
    
(46,408
)
Non-qualified stock options
    
490,952
      
410,633
  
Other
    
45,323
      
46,128
  
Valuation allowance
    
—
      
—
  
Net deferred tax (liability) asset
  
$
(885,632
)
  
$
1,283,246
  
Statutory to Effective Income Tax Reconciliation
Income taxes computed using the federal statutory income tax rate differs from the Company’s effective tax rate primarily due to the following for the fiscal years ended August 31:

   
For the Fiscal Years Ended August 31,
  
   
2020
    
2019
  
Expected benefit from federal taxes at statutory rate of 21% for the years 2020 and 2019
  
$
1,873,021
    
$
740,870
  
State taxes, net of federal benefit
    
326,441
      
129,123
  
Permanent and other differences
    
2,137
      
10,388
  
NOL true up
    
(8,240
)
    
225,067
  
Non-qualified stock options adjustment
    
—
      
(348,441
)
Other
    
(24,566
)
    
(26,202
)
Change in valuation allowance
    
—
      
(2,014,000
)
Total income tax expense / (benefit)
  
$
2,168,793
    
$
(1,283,195
)