2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Feb. 28, 2017

Accounting Policies [Abstract]

Shedule of 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	$	343,750	$	756,250
Trade Name-Cognigen	None		500,000		–		500,000
Covenants not to compete	Straight line 5 years		50,000		25,000		25,000
		$	1,650,000	$	368,750	$	1,281,250

Earnings per share

	Three months ended				Six months ended
		2/28/2017		2/29/2016		2/28/2017		2/29/2016
Numerator: Net income attributable to common shareholders	$	1,195,760	$	1,145,349	$	2,557,325	$	2,251,822
Denominator: Weighted-average number of common shares outstanding during the period		17,233,017		17,005,649		17,229,586		16,985,869
Dilutive effect of stock options		205,491		262,495		191,871		244,230
Common stock and common stock equivalents used for diluted earnings per share		17,438,508		17,268,144		17,421,457		17,230,099