2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

May. 31, 2015

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, May 31, 2015	$	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	$	103,125	$	996,875
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete	Straight line 5 years		50,000		7,500		42,500
		$	1,650,000	$	110,625	$	1,539,375

Fair value of assets and liabilities

	Level I		Level II		Level III		Total
Cash and cash equivalents	$	6,428,596	$	–	$	–	$	6,428,596
Total	$	6,428,596	$	–	$	–	$	6,428,596

Components of basic and diluted earnings per share

	Three month ended				Nine month ended
	05/31/2015		05/31/2014		05/31/2015		05/31/2014
Numerator:
Net income attributable to common shareholders	$	1,852,422	$	1,307,549	$	3,351,558	$	2,802,568
Denominator:
Weighted-average number of common shares outstanding during the period		16,862,128		16,193,976		16,847,191		16,117,198
Dilutive effect of stock options		211,027		261,102		223,143		244,497
Common stock and common stock equivalents used for diluted EPS		17,073,155		16,455,078		17,070,334		16,361,695