2. SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

May 31, 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

May 31, 2019:

	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	10,308,125	$	–	$	–	$	10,308,125
Acquisition-related contingent consideration obligations	$	–	$	–	$	3,443,357	$	3,443,357

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

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		109,061
Value at May 31, 2019	$	3,443,357

Schedule of intangible assets

	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Customer relationships-Cognigen	Straight line 8 years	$	1,100,000	$	653,125	$	446,875
Trade Name-Cognigen	None		500,000		0		500,000
Covenants not to compete-Cognigen	Straight line 5 years		50,000		47,500		2,500
Covenants not to compete-DILIsym	Straight line 4 years		80,000		40,000		40,000
Trade Name-DILIsym	None		860,000		0		860,000
Customer relationships-DILIsym	Straight line 10 years		1,900,000		380,000		1,520,000
		$	4,490,000	$	1,120,625	$	3,369,375

Earnings per share

	Three months ended				Nine months ended
		5/31/2019		5/31/2018		5/31/2019		5/31/2018
Numerator:
Net income attributable to common shareholders	$	2,888,706	$	2,406,037	$	6,524,102	$	7,596,828
Denominator:
Weighted-average number of common shares outstanding during the period		17,519,849		17,339,937		17,472,922		17,308,414
Dilutive effect of stock options		576,346		564,491		535,414		541,757
Common stock and common stock equivalents used for diluted earnings per share		18,096,195		17,904,428		18,008,336		17,850,171