2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Aug. 31, 2012

Accounting Policies [Abstract]

Property and Equipment estimated useful lives

Depreciation and amortization are provided using the straight-line method over the estimated useful lives as follows:

Equipment	5 years
Computer equipment	3 to 7 years
Furniture and fixtures	5 to 7 years
Leasehold improvements	Shorter of life of asset or lease

Assets and liabilities recorded at fair value

The categories, as defined by the standard, are as follows:

Level Input:	Input Definition:
Level I	Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
Level II	Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date.
Level III	Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date.

Summary of fair value measurements by level

The following table summarizes fair value measurements by level at August 31, 2012 for assets and liabilities measured at fair value on a recurring basis:

	Level I		Level II	Level III	Total
Cash and cash equivalents	$	12,701,075	$	$	$	12,701,075
Total assets	$	12,701,075	$	$	$	12,701,075

Components of basic and diluted earnings per share

The components of basic and diluted earnings per share for the years ended August 31, 2012 and 2011 were as follows:

	2012		2011
Numerator
Net income attributable to common shareholders	$	3,027,884	$	2,714,641
Denominator
Weighted-average number of common shares outstanding during the year		15,921,196		15,540,047
Dilutive effect of stock options		388,199		542,407
Common stock and common stock equivalents used for diluted earnings per share		16,309,395		16,082,454