2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

May 31, 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 May 31, 2018 and August 31, 2017 for assets and liabilities measured at fair value on a recurring basis:

May 31, 2018:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	7,223,115	$	–	$	–	$	7,223,115
Acquisition-related contingent consideration obligations	$	–	$	–	$	4,852,752	$	4,852,752

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		114,564
Value at May 31, 2018	$	4,852,752

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships - Cognigen	Straight line 8 years	$	1,100,000	$	515,625	$	584,375
Trade Name - Cognigen	None		500,000		0		500,000
Covenants not to compete - Cognigen	Straight line 5 years		50,000		37,500		12,500
Covenants not to compete - DILIsym	Straight line 4 years		80,000		20,000		60,000
Trade Name - DILIsym	None		860,000		0		860,000
Customer relationships - DILIsym	Straight line 8 years		1,900,000		190,000		1,710,000
		$	4,490,000	$	763,125	$	3,726,875

Earnings per share

	Three months ended				Nine months ended
		5/31/2018		5/31/2017		5/31/2018		5/31/2017
Numerator:
Net income attributable to common shareholders	$	2,406,927	$	2,080,029	$	7,596,828	$	4,637,354
Denominator:
Weighted-average number of common shares outstanding during the period		17,339,937		17,241,891		17,308,414		17,233,470
Dilutive effect of stock options		564,491		343,637		541,757		221,394
Common stock and common stock equivalents used for diluted earnings per share		17,904,428		17,585,528		17,850,171		17,454,864