2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

May 31, 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	$	7,279,683	$	–	$	–	$	7,279,683
Total	$	7,279,683	$	–	$	–	$	7,279,683

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships	Straight line 8 years	$	1,100,000	$	240,625	$	859,375
Trade Name-Cognigen	None		500,000		–		500,000
Covenants not to compete	Straight line 5 years		50,000		17,500		32,500
		$	1,650,000	$	258,125	$	1,391,875

Earnings per share

	Three months ended				Nine months ended
	05/31/2016		05/31/2015		05/31/2016		05/31/2015
Numerator:
Net income attributable to common shareholders	$	1,909,339		1,852,422	$	4,161,161	$	3,351,558
Denominator:
Weighted-average number of common shares outstanding during the period		17,028,634		16,862,128		17,000,228		16,847,191
Dilutive effect of stock options		198,906		211,027		219,607		223,143
Common stock and common stock equivalents used for diluted earnings per share		17,227,540		17,073,155		17,219,835		17,070,334