2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Feb. 28, 2018

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

The following table summarizes fair value measurements at February 28, 2018 and August 31, 2017 for assets and liabilities measured at fair value on a recurring basis:

February 28, 2018:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	6,920,792	$	–	$	–	$	6,920,792
Acquisition-related contingent consideration obligations	$	–	$	–	$	4,814,564	$	4,814,564

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

The following is a reconciliation of contingent consideration value.

Value at August 31, 2017	$	4,738,188
Contingent consideration payments		–
Change in value of contingent consideration		76,376
Value at February 28, 2018	$	4,814,564

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships-Cognigen	Straight line 8 years	$	1,100,000	$	481,250	$	618,750
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete-Cognigen	Straight line 5 years		50,000		35,000		15,000
Covenants not to compete-DILIsym	Straight line 4 years		80,000		15,000		65,000
Trade Name-DILIsym	None		860,000		0		860,000
Customer relationships-DILIsym	Straight line 8 years		1,900,000		142,500		1,757,500
		$	4,490,000	$	673,750	$	3,816,250

Earnings per share

	Three months ended				Six months ended
		2/28/2018		2/28/2017		2/28/2018		2/28/2017
Numerator:
Net income attributable to common shareholders	$	3,474,787	$	1,195,760	$	5,190,790	$	2,557,325
Denominator:
Weighted-average number of common shares outstanding during the period		17,302,763		17,233,017		17,292,391		17,229,586
Dilutive effect of stock options		552,588		205,491		550,954		191,871
Common stock and common stock equivalents used for diluted earnings per share		17,855,351		17,438,508		17,843,345		17,421,457