2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 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

Summarizes fair value measurements

November 30, 2017:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	7,045,756	$	–	$	–	$	7,045,756
Acquisition-related contingent consideration obligations	$	–	$	–	$	4,776,376	$	4,776,376

August 31, 2017:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	6,215,718	$	–	$	–	$	6,215,718
Acquisition-related contingent consideration obligations	$	–	$	–	$	4,738,188	$	4,738,188

Reconciliation of contingent consideration value

Value at August 31, 2017	$	4,738,188
Contingent consideration payments		–
Change in value of contingent consideration		38,188
Value at November 30, 2017	$	4,776,376

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships	Straight line 8 years	$	1,100,000	$	446,875	$	653,125
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete-Cognigen	Straight line 5 years		50,000		32,500		17,500
Covenants not to compete-DILIsym	Straight line 4 years		80,000		10,000		70,000
Trade Name-DILIsym	None		860,000		0		860,000
Customer relationships-DILIsym	Straight line 8 years		1,900,000		95,000		1,805,000
		$	4,490,000	$	584,375	$	3,905,625

Earnings per share

	Three months ended
	11/30/2017		11/30/2016
Numerator:
Net income attributable to common shareholders	$	1,716,006		1,361,565
Denominator:
Weighted-average number of common shares outstanding during the period		17,282,132		17,226,192
Dilutive effect of stock options		589,551		182,942
Common stock and common stock equivalents used for diluted earnings per share		17,871,683		17,409,134