2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

May 31, 2017

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	$	378,125	$	721,875
Trade Name-Cognigen	None		500,000		–		500,000
Covenants not to compete	Straight line 5 years		50,000		27,500		22,500
		$	1,650,000	$	405,625	$	1,244,375

Earnings per share

	Three months ended				Nine months ended
	5/31/2017		5/31/2016		5/31/2017		5/31/2016
Numerator:
Net income attributable to common shareholders	$	2,080,029	$	1,909,339	$	4,637,354	$	4,161,161
Denominator:
Weighted-average number of common shares outstanding during the period		17,241,891		17,028,634		17,233,470		17,000,228
Dilutive effect of stock options		343,637		198,906		221,394		219,607
Common stock and common stock equivalents used for diluted earnings per share		17,585,528		17,227,540		17,454,864		17,219,835