2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Aug. 31, 2015

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

Reconciliation of Goodwill

Balance, August 31, 2014	$	–
Addition		4,789,248
Impairments		–
Balance, August 31, 2015	$	4,789,248

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships	Straight line 8 years	$	1,100,000	$	137,500	$	962,500
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete	Straight line 5 years		50,000		10,000		40,000
		$	1,650,000	$	147,500	$	1,502,500

Earnings per share

	2015		2014
Numerator
Net income attributable to common shareholders	$	3,842,961	$	3,025,491
Denominator
Weighted-average number of common shares outstanding during the year		16,864,670		16,173,674
Dilutive effect of stock options		234,077		167,507
Common stock and common stock equivalents used for diluted earnings per share		17,032,158		16,407,751

Other Intangible Assets

Schedule of future amortization

Year ending August 31,	Amount
2016	147,500
2017	147,500
2018	147,500
2019	147,500
2020	137,500

Intellectual Property

Schedule of future amortization

Year ending August 31,	TSRL	Enslien Research	Total
2016	$ 600,000	$ 7,500	$ 607,500
2017	$ 600,000	$ 7,500	$ 607,500
2018	$ 600,000	$ 7,500	$ 607,500
2019	$ 600,000	$ 7,500	$ 607,500
2020	$ 600,000	$ 7,500	$ 607,500