INTANGIBLE ASSETS

9 Months Ended

May 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Note 10 - INTANGIBLE ASSETS

Purchased software is measured at cost less accumulated amortization. Expenditures on internally developed software is capitalized when the expenditure qualifies as development activities; otherwise it is recognized in the statement of operations when incurred.

Intangible assets with a finite life are amortized using the straight-line method over their estimated useful lives. Software and capitalized development costs related to technology are amortized over five years.

As of May 31, 2013, the Company capitalized $561,044 of software development costs incurred under a Software Development Agreement entered into in January 2013.  Amortization will be recorded beginning in the subsequent quarter.