2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 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

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships	Straight line 8 years	$	1,100,000	$	309,375	$	790,625
Trade Name-Cognigen	None		500,000		–		500,000
Covenants not to compete	Straight line 5 years		50,000		22,500		27,500
		$	1,650,000	$	331,875	$	1,318,125

Earnings per share

	Three months ended
	11/30/2016		11/30/2015
Numerator:
Net income attributable to common shareholders	$	1,361,565		1,106,473
Denominator:
Weighted-average number of common shares outstanding during the period		17,226,192		16,966,089
Dilutive effect of stock options		182,942		288,979
Common stock and common stock equivalents used for diluted earnings per share		17,409,134		17,255,068