2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Feb. 29, 2016

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

Fair value measurements

	Level I		Level II		Level III		Total
Cash and cash equivalents	$	7,062,993	$	–	$	–	$	7,062,993
Total	$	7,062,993	$	–	$	–	$	7,062,993

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships	Straight line 8 years	$	1,100,000	$	206,250	$	893,750
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete	Straight line 5 years		50,000		15,000		35,000
		$	1,650,000	$	221,250	$	1,428,750

Earnings per share

	Three months ended				Six months ended
	02/29/2016		02/28/2015		02/29/2016		02/28/2015
Numerator:
Net income attributable to common shareholders	$	1,145,349	$	970,233	$	2,251,822	$	1,499,136
Denominator:
Weighted-average number of common shares outstanding during the period		17,005,649		16,848,983		16,985,869		16,839,599
Dilutive effect of stock options		262,495		256,429		244,230		256,758
Common stock and common stock equivalents used for diluted earnings per share		17,268,144		17,105,412		17,230,099		17,096,357