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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Nov. 30, 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
Right to use asset

As part of the adoption of this standard we recorded the following assets and liabilities as of September 1, 2019:

 

Right of use assets  $902,553 
Lease Liabilities, Current  $537,017 
Lease Liabilities, Long-term  $365,536 

 

Supplemental balance sheet information related to operating leases was as follows as of November 30, 2019:

 

Right of use asset  $770,853 
Lease Liabilities, Current  $528,055 
Lease Liabilities, Long-term  $240,072 
Operating lease costs  $141,375 
Weighted Average remaining lease term   1.33 years 
Weighted Average Discount rate   5% 

 
Fair value measurements

November 30, 2019:

 

   Level 1   Level 2   Level 3   Total 
Cash and cash equivalents  $12,610,446   $–   $–   $12,610,446 
Acquisition-related contingent consideration obligations  $–   $–   $1,761,028   $1,761,028 

 

August 31, 2019:

 

   Level 1   Level 2   Level 3   Total 
Cash and cash equivalents  $11,435,499   $–   $–   $11,435,499 
Acquisition-related contingent consideration obligations  $–   $–   $1,761,028   $1,761,028 

 
Reconciliation of contingent consideration value
Value at August 31, 2019  $1,761,028 
Contingent consideration payments   (–)
Change in value of contingent consideration   – 
Value at November 30, 2019  $1,761,028 
Schedule of intangible assets
   Amortization
Period		  Acquisition
Value		   Accumulated
Amortization		   Net book
value		 
Customer relationships-Cognigen  Straight line 8 years  $1,100,000   $721,875   $378,125 
Trade Name-Cognigen  None   500,000    0    500,000 
Covenants not to compete-Cognigen  Straight line 5 years   50,000    50,000    0 
Covenants not to compete-DILIsym  Straight line 4 years   80,000    50,000    30,000 
Trade Name-DILIsym  None   860,000    0    860,000 
Customer relationships-DILIsym  Straight line 8 years   1,900,000    475,000    1,425,000 
      $4,490,000   $1,296,875   $3,193,125 
Earnings per share
    Three months ended  
    11/30/2019     11/30/2018  
Numerator:                
Net income attributable to common shareholders   $ 2,058,277     $ 1,535,947  
                 
Denominator:                
Weighted-average number of common shares outstanding during the period     17,608,991       17,421,838  
Dilutive effect of stock options     698,007       575,897  
Common stock and common stock equivalents used for diluted earnings per share   $ 18,306,998     $ 17,997,735