2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Feb. 28, 2019

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, 2019 and August 31, 2018 for assets and liabilities measured at fair value on a recurring basis:

February 28, 2019:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	9,893,953	$	–	$	–	$	9,893,953
Acquisition-related contingent consideration obligations	$	–	$	–	$	3,410,672	$	3,410,672

August 31, 2018:

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

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		76,376
Value at February 28, 2019	$	3,410,672

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships-Cognigen	Straight line 8 years	$	1,100,000	$	618,750	$	481,250
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete-Cognigen	Straight line 5 years		50,000		45,000		5,000
Covenants not to compete-DILIsym	Straight line 4 years		80,000		35,000		45,000
Trade Name-DILIsym	None		860,000		0		860,000
Customer relationships-DILIsym	Straight line 10 years		1,900,000		332,500		1,567,500
		$	4,490,000	$	1,031,250	$	3,458,750

Earnings per share

	Three months ended				Six months ended
		2/28/2019		2/28/2018		2/28/2019		2/28/2018
Numerator:
Net income attributable to common shareholders	$	2,099,449	$	3,474,787	$	3,635,396	$	5,190,790
Denominator:
Weighted-average number of common shares outstanding during the period		17,476,603		17,302,763		17,449,069		17,292,391
Dilutive effect of stock options		526,138		552,588		535,009		550,954
Common stock and common stock equivalents used for diluted earnings per share		18,002,741		17,855,351		17,984,078		17,843,345