4. CONTRACTS PAYABLE

9 Months Ended

May. 31, 2015

Other Liabilities Disclosure [Abstract]

CONTRACT PAYABLE

TSRL

Pursuant to the termination and non-assertion agreement with TSRL (See note 2), the Company will pay TSRL $2,500,000 over a three-year period. The payment schedule, by year, is below.

Cognigen

On September 2, 2014, the Company acquired Cognigen Corporation (See note 11). As part of the consideration, the Company agreed that within three business days following the two-year anniversary of July 23, 2014 (the date of the Merger Agreement), and subject to any offsets, the Company will pay the former shareholders of Cognigen a total of $1,800,000, comprised of $720,000 of cash and the issuance of 170,014 shares of stock.

Future payments under the Agreements, which are non-interest-bearing, are due as follows:

Twelve month Period ending May 31	TSRL			Cognigen		Total
2016		750,000			0		750,000
2017		1,000,000			1,854,404		2,854,404
Total	$	1,750,000		$	1,854,404	$	3,604,404
Less Current portion		(750,000	)		–		(750,000	)
Contract payable, net of current portion	$	1,000,000		$	1,854,404	$	2,854,404