2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 2014

Accounting Policies [Abstract]

Property and Equipment estimated useful lives

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

Reconcilation of goodwill

Balance, August 31, 2014	$	–
Addition		4,789,248
Impairments		–
Balance, November 30, 2014	$	4,789,248

Other intangible asset summary

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships	Straight line 8 years	$	1,100,000	$	34,375	$	1,065,625
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete	Straight line 5 years		50,000		2,500		47,500
		$	1,650,000	$	36,875	$	1,613,125

Fair value of assets and liabilities

	Level I		Level II		Level III		Total
Cash and cash equivalents	$	5,791,177	$	–	$	–	$	5,791,177
Total	$	5,791,177	$	–	$	–	$	5,791,177

Components of basic and diluted earnings per share

	11/30/2014		11/30/2013
Numerator
Net income attributable to common shareholders	$	528,904	$	685,155
Denominator
Weighted-average number of common shares outstanding during the 3 months of FY15 & FY14		16,830,319		16,049,707
Dilutive effect of stock options		267,539		317,013
Common stock and common stock equivalents used for diluted earnings per share	$	17,097,858	$	16,366,720