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Note 12. Research and Development
 3 Months Ended
Nov. 30, 2012
Research, Development, and Computer Software Disclosure [Text Block]
12.           RESEARCH AND DEVELOPMENT

The Company expenses all costs related to product research and development as incurred.   The Company incurred $938,206 and $814,305 of expense during the three months ended November 30, 2012 and 2011, respectively, in connection with its research and development activities.  The costs related to product research and development contracts of $68,682 and $197,000 for the three months ended November 30, 2012 and 2011, respectively.  The net fees are accounted for in the “Research and Development Expenses” section of the consolidated statements of operations.

The Company has certain research and development contracts.  The Company accrues proceeds received under such contracts and offsets research and development expenses incurred in equal installments over the timelines associated with completion of the contracts’ specific objectives and milestones. At November 30, 2012 and August 31, 2012, the Company had $4,210 and $96,861, respectively, of deferred amounts in other accrued liabilities as the Company had not yet performed under the obligations of the contract at that time.