CoveyLink Acquisition Earn Out Payment

9 Months Ended

May 31, 2014

CoveyLink Acquisition Earn Out Payment [Abstract]

CoveyLink Acquisition Earn Out Payment

NOTE 3 – COVEYLINK ACQUISITION EARN OUT PAYMENT

During March 2014 we paid $3.5 million to the former owners of CoveyLink Worldwide, LLC (CoveyLink) for the final contingent earn out payment.  The annual contingent earn out payments were based on earnings growth over the specified measurement period and were classified as goodwill on our consolidated balance sheets when paid.  The former owners of CoveyLink include the brother of one of our Named Executive Officers.  For a reconciliation of our consolidated goodwill from August 31, 2013 through May 31, 2014 refer to the table included in Note 5 – Acquisition of Red Tree, Inc.