XML 24 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 12 - Research and Development
9 Months Ended
May 31, 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 $2,856,536 and $3,308,515 of expense during the nine months ended May 31, 2012 and 2011, respectively, in connection with its research and development activities.  These costs related to product research and development are net of reimbursements related to certain research and development contracts of $297,258 and $219,175 for the nine months ended May 31, 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 May 31, 2012, the Company had deferred amounts in other accrued liabilities of $109,594 as the Company had received payment, but not yet performed under the obligations of the contract at that time.  As of August 31, 2011, the Company did not have any deferred amounts in other accrued liabilities at that time.