2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 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 November 30, 2018 and August 31, 2018 for assets and liabilities measured at fair value on a recurring basis:

November 30, 2018:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	9,352,238	$	–	$	–	$	9,352,238
Acquisition-related contingent consideration obligations	$	–	$	–	$	3,372,484	$	3,372,484

August 31, 2018:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	9,400,701	$	–	$	–	$	9,215,701
Acquisition-related contingent consideration obligations	$	–	$	–	$	4,890,940	$	4,890,940

Reconciliation of contingent consideration value

The following is a reconciliation of contingent consideration value.

Value at August 31, 2018	$	4,890,940
Contingent consideration payments		(1,556,644	)
Change in value of contingent consideration		38,188
Value at November 30, 2018	$	3,372,484

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships-Cognigen	Straight line 8 years	$	1,100,000	$	584,375	$	515,625
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete-Cognigen	Straight line 5 years		50,000		42,500		7,500
Covenants not to compete-DILIsym	Straight line 4 years		80,000		30,000		50,000
Trade Name-DILIsym	None		860,000		0		860,000
Customer relationships-DILIsym	Straight line 8 years		1,900,000		285,000		1,615,000
		$	4,490,000	$	941,875	$	3,548,125

Earnings per share

	Three months ended
	11/30/2018		11/30/2017
Numerator:
Net income attributable to common shareholders	$	1,535,947		1,716,005
Denominator:
Weighted-average number of common shares outstanding during the period		17,421,838		17,282,132
Dilutive effect of stock options		575,897		577,551
Common stock and common stock equivalents used for diluted earnings per share		17,997,735		17,859,683