10. CUSTOMER RELATIONSHIPS

12 Months Ended

Aug. 31, 2012

Customer Relationships

Note 10 . CUSTOMER RELATIONSHIPS

The Company purchased customer relationships as a part of the acquisition of certain assets of Bioreason, Inc. in November 2005. Customer relationships was recorded at a cost of $128,042 and is being amortized over 78 months under the sum-of-the-years’-digits method. Amortization expense for the years ended August 31, 2012 and 2011 amounted to $1,871 and $7,730, respectively. Accumulated amortization was $128,042 as of August 31, 2012.