Cover
Cover - USD ($) | 12 Months Ended | ||
Aug. 31, 2022 | Oct. 19, 2022 | Feb. 28, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Aug. 31, 2022 | ||
Current Fiscal Year End Date | --08-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-32046 | ||
Entity Registrant Name | Simulations Plus, Inc. | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 95-4595609 | ||
Entity Address, Address Line One | 42505 Tenth Street West | ||
Entity Address, City or Town | Lancaster | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 93534-7059 | ||
City Area Code | 661 | ||
Local Phone Number | 723-7723 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | SLP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 618,441,986 | ||
Entity Common Stock, Shares Outstanding | 20,297,670 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Certain portions of the registrant’s definitive proxy statement to be delivered to its shareholders in connection with the registrant’s 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K. Such definitive proxy statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0001023459 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Aug. 31, 2022 | |
Auditor [Line Items] | |
Auditor Name | Rose, Snyder & Jacobs LLP |
Auditor Location | Encino, California |
Auditor Firm ID | 468 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 51,567 | $ 36,984 |
Accounts receivable, net of allowance for doubtful accounts of $12 and $78 | 13,787 | 9,851 |
Prepaid income taxes | 1,391 | 1,012 |
Prepaid expenses and other current assets | 3,377 | 4,846 |
Short-term investments | 76,668 | 86,620 |
Total current assets | 146,790 | 139,313 |
Long-term assets | ||
Capitalized computer software development costs, net of accumulated amortization of $15,672 and $14,438 | 9,563 | 7,646 |
Property and equipment, net | 632 | 1,838 |
Operating lease right-of-use assets | 1,420 | 1,276 |
Goodwill | 12,921 | 12,921 |
Other assets | 439 | 51 |
Total assets | 188,382 | 179,978 |
Current liabilities | ||
Accounts payable | 225 | 387 |
Accrued compensation | 3,254 | 3,185 |
Accrued expenses | 931 | 2,419 |
Contracts payable | 0 | 4,550 |
Operating lease liability - current portion | 461 | 382 |
Deferred revenue | 2,864 | 651 |
Total current liabilities | 7,735 | 11,574 |
Long-term liabilities | ||
Deferred income taxes, net | 1,456 | 1,726 |
Operating lease liability | 943 | 896 |
Total liabilities | 10,134 | 14,196 |
Commitments and contingencies | 0 | 0 |
Shareholders' equity | ||
Preferred stock, $0.001 par value 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 20,260,070 and 20,141,521 shares issued and outstanding | 138,512 | 133,418 |
Retained earnings | 40,044 | 32,407 |
Accumulated other comprehensive loss | (308) | (43) |
Total shareholders' equity | 178,248 | 165,782 |
Total liabilities and shareholders' equity | 188,382 | 179,978 |
Other Intangible Assets | ||
Long-term assets | ||
Intellectual property and other intangible assets, net of accumulated amortization | 7,560 | 6,464 |
Intellectual property | ||
Long-term assets | ||
Intellectual property and other intangible assets, net of accumulated amortization | $ 9,057 | $ 10,469 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Accounts receivable, allowance for credit loss, current | $ 12 | $ 78 |
Capitalized computer software, accumulated amortization | $ 15,672 | $ 14,438 |
Preferred stock, par or stated value per share (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par or stated value per share (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares, issued (in shares) | 20,260,070 | 20,141,521 |
Common stock, shares, outstanding (in shares) | 20,260,070 | 20,141,521 |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization of intellectual property | $ 7,928 | $ 6,516 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization of intellectual property | $ 2,662 | $ 2,186 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Revenues | |||
Total revenues | $ 53,906 | $ 46,466 | $ 41,589 |
Cost of revenues | |||
Total cost of revenues | 10,822 | 10,600 | 10,649 |
Gross profit | 43,084 | 35,866 | 30,940 |
Operating expenses | |||
Research and development | 3,208 | 4,047 | 2,975 |
Selling, general, and administrative | 24,965 | 20,566 | 16,360 |
Total operating expenses | 28,173 | 24,613 | 19,335 |
Income from operations | 14,911 | 11,253 | 11,605 |
Other Income and Expenses [Abstract] | |||
Other income (expense), net | 204 | (168) | (218) |
Income before income taxes | 15,115 | 11,085 | 11,387 |
Provision for income taxes | (2,632) | (1,303) | (2,055) |
Net Income | $ 12,483 | $ 9,782 | $ 9,332 |
Earnings per share | |||
Earnings per share, basic (in usd per share) | $ 0.62 | $ 0.49 | $ 0.52 |
Earnings per share, diluted (in usd per share) | $ 0.60 | $ 0.47 | $ 0.50 |
Weighted-average common shares outstanding | |||
Weighted average number of shares outstanding, basic (in shares) | 20,196 | 20,045 | 17,819 |
Weighted average number of shares outstanding, diluted (in shares) | 20,749 | 20,743 | 18,538 |
Other comprehensive (loss) income, net of tax | |||
Foreign currency translation adjustments | $ (265) | $ (101) | $ 58 |
Comprehensive income | 12,218 | 9,681 | 9,390 |
Software | |||
Revenues | |||
Total revenues | 32,642 | 27,670 | 21,587 |
Cost of revenues | |||
Total cost of revenues | 3,060 | 3,235 | 2,883 |
Services | |||
Revenues | |||
Total revenues | 21,264 | 18,796 | 20,002 |
Cost of revenues | |||
Total cost of revenues | $ 7,762 | $ 7,365 | $ 7,766 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock and additional paid in capital | Retained earnings | Accumulated other comprehensive (loss) income |
Balance, beginning of period at Aug. 31, 2019 | $ 15,327 | $ 22,354 | $ 0 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options | 630 | |||
Stock-based compensation | 1,287 | |||
Shares issued to Directors for services | 290 | |||
Shares issued - Lixoft | 3,260 | |||
Common stock issued for cash, net | 107,747 | |||
Declaration of dividends | (4,250) | |||
Net income | $ 9,332 | 9,332 | ||
Other comprehensive (loss) income | 58 | |||
Balance, end of period at Aug. 31, 2020 | $ 156,035 | 128,541 | 27,436 | 58 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.24 | |||
Exercise of stock options | 1,461 | |||
Stock-based compensation | 2,405 | |||
Shares issued to Directors for services | 345 | |||
Shares issued - Lixoft | 666 | |||
Common stock issued for cash, net | 0 | |||
Declaration of dividends | (4,811) | |||
Net income | $ 9,782 | 9,782 | ||
Other comprehensive (loss) income | (101) | |||
Balance, end of period at Aug. 31, 2021 | $ 165,782 | 133,418 | 32,407 | (43) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.24 | |||
Exercise of stock options | 891 | |||
Stock-based compensation | 2,686 | |||
Shares issued to Directors for services | 351 | |||
Shares issued - Lixoft | 1,166 | |||
Common stock issued for cash, net | 0 | |||
Declaration of dividends | (4,846) | |||
Net income | $ 12,483 | 12,483 | ||
Other comprehensive (loss) income | (265) | |||
Balance, end of period at Aug. 31, 2022 | $ 178,248 | $ 138,512 | $ 40,044 | $ (308) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 12,483 | $ 9,782 | $ 9,332 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 3,574 | 3,590 | 2,962 |
Change in value of contingent consideration | 283 | 486 | 203 |
Amortization of investment premiums | 1,678 | 2,350 | 0 |
Stock-based compensation | 3,037 | 2,750 | 1,577 |
Deferred income taxes | (270) | (628) | (378) |
Currency translation adjustments | (265) | (101) | 0 |
Increase (Decrease) in Other Operating Assets and Liabilities, Net [Abstract] | |||
Accounts receivable | (3,936) | (2,429) | (2,018) |
Prepaid income taxes | (379) | (42) | (12) |
Prepaid expenses and other assets | 1,081 | (157) | (259) |
Accounts payable | (162) | 39 | 221 |
Other liabilities | (1,437) | 3,353 | 23 |
Deferred revenue | 2,213 | 210 | (739) |
Net cash provided by operating activities | 17,900 | 19,203 | 10,912 |
Cash flows from investing activities | |||
Purchases of property and equipment | (819) | (1,627) | (231) |
Purchase of short-term investments | (100,846) | (122,395) | (67,249) |
Proceeds from sale of short-term investments | 109,121 | 100,229 | 0 |
Cash used to acquire subsidiaries | 0 | 0 | (9,471) |
Cash received in acquisition | 0 | 0 | 3,799 |
Capitalized computer software development costs | (3,151) | (2,949) | (2,353) |
Net cash provided by (used in) investing activities | 4,305 | (26,742) | (75,505) |
Cash flows from financing activities | |||
Payment of dividends | (4,846) | (4,811) | (4,250) |
Payments on contracts payable | (3,667) | (1,334) | (1,761) |
Proceeds from the exercise of stock options | 891 | 1,461 | 630 |
Proceeds from follow-on public offering, net | 0 | 0 | 107,747 |
Net cash (used in) provided by financing activities | (7,622) | (4,684) | 102,366 |
Net increase (decrease) in cash and cash equivalents | 14,583 | (12,223) | 37,773 |
Cash and cash equivalents, beginning of year | 36,984 | 49,207 | 11,434 |
Cash and cash equivalents, end of period | 51,567 | 36,984 | 49,207 |
Supplemental disclosures of cash flow information | |||
Income taxes paid | 3,233 | 1,857 | 2,353 |
Non-Cash Investing and Financing Activities | |||
Stock issued for acquisition of Lixoft | 1,166 | 666 | 3,261 |
Creation of contract liabilities for acquisition of subsidiaries | 0 | 0 | 4,528 |
Right of use assets capitalized | $ 624 | $ 905 | $ 1,499 |
ORGANIZATION AND LINES OF BUSIN
ORGANIZATION AND LINES OF BUSINESS | 12 Months Ended |
Aug. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND LINES OF BUSINESS | ORGANIZATION AND LINES OF BUSINESS Organization Simulations Plus, Inc. (the "Company") was incorporated on July 17, 1996. In September 2014, Simulations Plus acquired all of the outstanding equity interests of Cognigen Corporation ("Cognigen") and Cognigen became a wholly-owned subsidiary of Simulations Plus, Inc. In June 2017, Simulations Plus acquired DILIsym Services, Inc. ("DILIsym") as a wholly-owned subsidiary. In April 2020, Simulations Plus, Inc. acquired Lixoft, a French société par actions simplifiée ("Lixoft") as a wholly-owned subsidiary pursuant to a stock purchase and contribution agreement. (Collectively, "Company", "we", "us", "our"). Effective September 1, 2021, the Company merged both Cognigen Corporation and DILIsym with and into Simulations Plus, Inc. through short-form mergers (the “Mergers”). To effectuate the Mergers, the Company filed Certificates of Ownership with the Secretaries of State of the states of Delaware (Cognigen’s and DILIsym’s state of incorporation) and California (the Company’s state of incorporation). Consummation of the Mergers was not subject to approval of the Company’s stockholders and did not impact the rights of the Company’s stockholders. Lines of Business We are a premier developer of drug discovery and development software for modeling and simulation, and for the prediction of molecular properties utilizing both artificial intelligence (“AI”) as well as machine-learning-based technology. We also provide consulting services ranging from early drug discovery through preclinical and clinical trial data analysis and for submissions to regulatory agencies. Our software and consulting services are provided to major pharmaceutical, biotechnology, agrochemical, cosmetics, and food industry companies, and to regulatory agencies worldwide for use in the conduct of industry-based research. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Simulations Plus and, as of April 1, 2020, Lixoft. All significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates Our financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. Actual results could differ from those estimates. Reclassifications Certain numbers in the prior year have been reclassified to conform to the current year's presentation. Revenue Recognition We generate revenue primarily from the sale of software licenses and by providing consulting services to the pharmaceutical industry for drug development. In accordance with ASC 606, we determine revenue recognition through the following steps: i. Identification of the contract, or contracts, with a customer ii. Identification of the performance obligations in the contract iii. Determination of the transaction price iv. Allocation of the transaction price to the performance obligations in the contract v. Recognition of revenue when, or as, we satisfy a performance obligation Components of Revenue The following is a description of principal activities from which the Company generates revenue. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. Stand-alone selling prices are determined based on the prices at which the Company separately sells its services or goods. Revenue Components Typical Payment Terms Software Revenues: Software revenues are generated primarily from sales of software licenses at the time the software is unlocked, and the term commences. The license period typically is one year or less. Along with the license a di minimis amount of customer support is provided to assist the customer with the software. Should the customer need more than a di minimis amount of support, they can choose to enter into a separate contract for additional training. Most software is installed on our customers’ servers and the Company has no control of the software once the sale is made. Payments are generally due upon invoicing on a net 30 basis unless other payment terms are negotiated with the customer based on customer history. Typical industry standards apply. For certain software arrangements the Company hosts the licenses on servers maintained by the Company, Revenue for those arrangements is accounted as Software as a Service over the life of the contract. These arrangements are a small portion of software revenues of the Company. Consulting Contracts: Consulting services provided to our customers are generally recognized over time as the contracts are performed and the services are rendered. The company measures its consulting revenue based on time expended compared to total estimated hours to complete a project. The Company believes the method chosen for its contract revenue best depicts the transfer of benefits to the customer under the contracts. Payment terms vary, depending on the size of the contract, credit history and history with the client and deliverables within the contract. Consortium Member Based Services: The performance obligation is recognized on a time elapsed basis, by month, for which the services are provided, as the Company transfers control evenly over the contractual period. Payment is due at the beginning of the period, generally on a net 30 or 60 basis. Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. As of August 31, 2022, remaining performance obligations were $13.5 million. 86% of the remaining performance obligations are expected to be recognized over the next 12 months, with the remainder recognized thereafter. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations and changes in the scope of contracts. Disaggregation of Revenues The components of disaggregation of revenue for the years ended August 31, 2022, 2021, and 2020 were as follows: Year ended August 31, (in thousands) 2022 2021 2020 Software licenses Point in time $ 31,587 $ 26,725 $ 20,668 Over time 1,055 945 919 Services Over time 21,264 18,796 20,002 Total revenue $ 53,906 $ 46,466 $ 41,589 In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the years ended August 31, 2022, 2021, and 2020 were as follows: (in thousands) Year ended August 31, 2022 2021 2020 $ % of total $ % of total $ % of total Americas $ 37,681 70 % $ 32,549 70 % $ 29,674 71 % EMEA 10,388 19 % 7,906 17 % 5,827 14 % Asia Pacific 5,837 11 % 6,011 13 % 6,088 15 % Total $ 53,906 100 % $ 46,466 100 % $ 41,589 100 % Contract Balances We receive payments from customers based upon contractual billing schedules, while we recognize revenue when, or as, we satisfy our performance obligations. This timing difference results in accounts receivable, contract assets, and contract liabilities. We record accounts receivable when the right to consideration becomes unconditional. We record a contract asset if the right to consideration is conditioned on something other than the passage of time, such as our future performance. Contract assets are included in prepaid expenses and other current assets on our consolidated balance sheets. We record a contract liability when we have an obligation to transfer goods or services to a customer for which we have either received consideration or a payment is due from a customer. We refer to contract liabilities as deferred revenue on our consolidated balance sheets. Contract asset balances as of August 31, 2022, and August 31, 2021, were $1.7 million and $3.2 million, respectively. During the year ended August 31, 2022, the Company recognized $0.6 million of revenue that was included in contract liabilities as of August 31, 2021, and during the year ended August 31, 2021, the Company recognized $0.4 million of revenue that was included in contract liabilities as of August 31, 2020. Deferred Commissions Sales commissions earned by our sales force and our commissioned sales representatives are considered incremental and recoverable costs of obtaining a contract with a customer. We apply the practical expedient as described in ASC 340-40-25-4 to expense costs as incurred for sales commissions, since the amortization period of the asset that we otherwise would have recognized is one year or less. This expense is included in the consolidated statements of operations and comprehensive income as selling, general, and administrative expense. Cash and Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Accounts Receivable and Allowance for Credit Losses The Company extends credit to its customers in the normal course of business. The Company evaluates its allowance for credit losses based on its estimate of the collectability of its trade accounts receivable. As part of this assessment, the Company considers various factors including the financial condition of the individual companies with which it does business, the aging of receivable balances, historical experience, changes in customer payment terms, current market conditions, and reasonable and supportable forecasts of future economic conditions. In times of economic turmoil, the Company’s estimates and judgments with respect to the collectability of its receivables is subject to greater uncertainty than in more stable periods. Accounts receivable balances will be charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. Investments The Company may invest excess cash balances in short-term and long-term marketable debt securities. Investments may consist of certificates of deposit, money market accounts, government-sponsored enterprise securities, corporate bonds, and/or commercial paper within the parameters of our Investment Policy and Guidelines. The Company accounts for its investments in marketable securities in accordance with ASC 320, Investments – Debt and Equity Securities. This statement requires debt securities to be classified into three categories: Held-to-maturity—Debt securities that the entity has the positive intent and ability to hold to maturity are measured at amortized cost and are presented at the net amount expected to be collected. Any change in the allowance for credit losses during the period is reflected in earnings. Discounts and premiums to par value of the debt securities are amortized to interest income/expense over the term of the security. Trading Securities—Debt securities that are bought and held primarily for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in earnings. Available-for-Sale—Debt securities not classified as either securities held-to-maturity or trading securities are reported at fair value. For available-for-sale debt securities in an unrealized loss position, we evaluate as of the balance sheet date whether the unrealized losses are attributable to a credit loss or other factors. The portion of unrealized losses related to a credit loss is recognized in earnings, and the portion of unrealized loss not related to a credit loss is recognized in other comprehensive income. We classify our investments in marketable debt securities based on the facts and circumstances present at the time of purchase of the securities. We subsequently reassess the appropriateness of that classification at each reporting date. During the year ended August 31, 2022, all of our investments were classified as held-to-maturity. Capitalized Computer Software Development Costs Software development costs are capitalized in accordance with ASC 985-20. Capitalization of software development costs begins upon the establishment of technological feasibility and is discontinued when the product is available for sale. The establishment of technological feasibility and the ongoing assessment for recoverability of capitalized software development costs require considerable judgment by management with respect to certain external factors including, but not limited to, technological feasibility, anticipated future gross revenue, estimated economic life, and changes in software and hardware technologies. Capitalized software development costs are comprised primarily of salaries and direct payroll-related costs and the purchase of existing software to be used in our software products. Amortization of capitalized software development costs is calculated on a product-by-product basis on the straight-line method over the estimated economic life of the products (not to exceed five years). Amortization of software development costs amounted to $1.2 million, $1.4 million, and $1.2 million for the years ended August 31, 2022, 2021, and 2020, respectively. We expect future amortization expense to vary due to increases in capitalized computer software development costs. We test capitalized computer software development costs for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Property and Equipment Property and equipment are recorded at cost, or fair market value for property and equipment acquired in business combinations, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows: 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 Maintenance and minor replacements are charged to expense as incurred. Gains and losses on disposals are included in the results of operations. Internal-use Software We have capitalized certain internal-use software costs in accordance with ASC 350-40, which are included in intangible assets. The amortization of such costs is classified as selling, general, and administrative expenses on the consolidated statements of operations. Maintenance of and minor upgrades to internal-use software are also classified as selling, general, and administrative expenses as incurred. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities (current and long-term) in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. The operating lease ROU asset also includes any lease payments made at or before the commencement date and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. Supplemental balance sheet information related to operating leases was as follows as of August 31, 2022: (in thousands) Right of use assets $ 1,420 Lease liabilities, current $ 461 Lease liabilities, long-term $ 943 Operating lease costs $ 520 Weighted-average remaining lease term 3.05 years Weighted-average discount rate 3.41 % Intangible Assets and Goodwill We perform valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and recognize the assets acquired and liabilities assumed at their acquisition-date fair value. Acquired intangible assets include customer relationships, software, trade names, and noncompete agreements. We determine the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Finite-lived intangible assets are amortized over their estimated useful lives using the straight-line method, which approximates the pattern in which the majority of the economic benefits are expected to be consumed. Finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill and indefinite-lived intangible assets are tested for impairment annually or when events or circumstances change that would indicate that they might be impaired. Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. Goodwill and intangible assets are tested for impairment at the reporting unit level, which is one level below or the same as an operating segment. As of August 31, 2022, we determined that we have four reporting units: Simulations Plus, Cognigen, DILIsym, and Lixoft. We did not recognize any impairment charges during the periods ended August 31, 2022, 2021, and 2020. Reconciliation of Goodwill as of August 31, 2022, and 2021: (in thousands) Cognigen DILIsym Lixoft Total Balance, August 31, 2020 $ 4,789 $ 5,598 $ 2,534 $ 12,921 Addition — — — — Impairments — — — — Balance, August 31, 2021 4,789 5,598 2,534 12,921 Addition — — — — Impairments — — — — Balance, August 31, 2022 $ 4,789 $ 5,598 $ 2,534 $ 12,921 The following table summarizes other intangible assets as of August 31, 2022: (in thousands) Amortization Acquisition Accumulated Net book Simulations Plus ERP Straight line 15 years $ 1,702 $ 80 $ 1,622 Cognigen Customer relationships Straight line 8 years 1,100 1,100 — Trade Name None 500 — 500 DILIsym Customer relationships Straight line 10 years 1,900 997 903 Trade Name None 860 — 860 Lixoft Customer relationships Straight line 14 years 2,550 437 2,113 Trade Name None 1,550 — 1,550 Covenants not to compete Straight line 3 years 60 48 12 $ 10,222 $ 2,662 $ 7,560 The following table summarizes other intangible assets as of August 31, 2021: (in thousands) Amortization Acquisition Accumulated Net book Cognigen Customer relationships Straight line 8 years $ 1,100 $ 963 $ 137 Trade Name None 500 — 500 Covenants not to compete Straight line 5 years 50 50 — DILIsym Customer relationships Straight line 10 years 1,900 807 1,093 Trade Name None 860 — 860 Covenants not to compete Straight line 4 years 80 80 — Lixoft Customer relationships Straight line 14 years 2,550 258 2,292 Trade Name None 1,550 — 1,550 Covenants not to compete Straight line 3 years 60 28 32 $ 8,650 $ 2,186 $ 6,464 Total amortization expense for the years ended August 31, 2022, 2021, and 2020 was $0.6 million, $0.5 million, and $0.4 million, respectively. Future amortization of finite-lived intangible assets for the next five years is as follows: (in thousands) Year ending August 31, Amount 2023 $ 493 2024 $ 481 2025 $ 481 2026 $ 481 2027 $ 434 Business Acquisitions The Company accounted for the acquisition of Lixoft using the acquisition method of accounting where the assets acquired and liabilities assumed are recognized based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain acquired assets and liabilities is subjective in nature and often involves the use of significant estimates and assumptions, including, but not limited to, the selection of appropriate valuation methodology, projected revenue, expenses and cash flows, weighted average cost of capital, discount rates, estimates of advertiser and publisher turnover rates, and estimates of terminal values. Business acquisitions are included in the Company's consolidated financial statements as of the date of the acquisition. Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories are as follows: Level Input: Input Definition: Level I Inputs that are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. For certain of our financial instruments, including accounts receivable, accounts payable, and accrued compensation and other accrued expenses, the amounts approximate fair value due to their short maturities. The following table summarizes fair value measurements as of August 31, 2022, and August 31, 2021, for assets and liabilities measured at fair value on a recurring basis: August 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 51,567 $ — $ — $ 51,567 Short-term investments $ 76,668 $ — $ — $ 76,668 August 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 36,984 $ — $ — $ 36,984 Short-term investments $ 86,620 $ — $ — $ 86,620 Acquisition-related contingent consideration obligations $ — $ — $ 3,217 $ 3,217 As of August 31, 2022, we had no liability for contingent consideration related to our acquisition of Lixoft as the remaining contingent obligation was settled in May 2022. As of August 31, 2021, we had a liability for contingent consideration related to our acquisition of Lixoft. The fair value measurement of the contingent consideration obligations was determined using Level 3 inputs and was based on a discounted cash flow model using a probability-weighted income approach. The liability is recorded as contracts payable on our consolidated balance sheets, and changes in the fair value of the contingent consideration obligations are recorded as other income (expense), net in our consolidated statements of operations and comprehensive income. The following is a reconciliation of contingent consideration value: (in thousands) Value as of August 31, 2021 $ 3,217 Contingent consideration payments in cash (2,334) Contingent consideration payments in stock (1,166) Change in value of contingent consideration 283 Value as of August 31, 2022 $ — Marketing The Company expenses marketing costs as incurred. Marketing costs for the years ended August 31, 2022, 2021, and 2020 were $0.2 million, $0.1 million, and $0.1 million, respectively. Research and Development Costs Research and development costs are charged to expense as incurred until technological feasibility has been established. These costs include salaries, laboratory experiments, and purchased software that was developed by other companies and incorporated into, or used in the development of, our final products. Income Taxes We account for income taxes in accordance with ASC 740 which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities. Intellectual property On February 28, 2012, we bought out the royalty agreement with Enslein Research. The cost of $0.1 million is being amortized over 10 years under the straight-line method. On May 15, 2014, we entered into a termination and non-assertion agreement with TSRL, Inc., pursuant to which the parties agreed to terminate an exclusive software licensing agreement entered into between the parties in 1997. As a result, the Company obtained a perpetual right to use certain source code and data, and TSRL relinquished any rights and claims to any GastroPlus products and to any claims, royalties, or other payments under that 1997 agreement. We agreed to pay TSRL total consideration of $6.0 million, which is being amortized over 10 years under the straight-line method. On June 1, 2017, as part of the acquisition of DILIsym, the Company acquired certain developed technologies associated with the drug-induced liver disease (DILI). These technologies were valued at $2.9 million and are being amortized over 9 years under the straight-line method. In September 2018, we purchased certain intellectual property rights of Entelos Holding Company. The cost of $0.1 million is being amortized over 10 years under the straight-line method. On April 1, 2020, as part of the acquisition of Lixoft, the Company acquired certain developed technologies associated with the Lixoft scientific software. These technologies were valued at $8.0 million and are being amortized over 16 years under the straight-line method. The following table summarizes intellectual property as of August 31, 2022: (in thousands) Amortization Acquisition Accumulated Net Book Royalty Agreement buy out-Enslein Research Straight line 10 years $ 75 $ 75 $ — Termination/nonassertion agreement-TSRL Inc. Straight line 10 years 6,000 4,975 1,025 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,662 1,188 Intellectual rights of Entelos Holding Company Straight line 10 years 50 20 30 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 1,196 6,814 $ 16,985 $ 7,928 $ 9,057 The following table summarizes intellectual property as of August 31, 2021: (in thousands) Amortization Acquisition Accumulated Net Book Royalty Agreement buy out-Enslein Research Straight line 10 years $ 75 $ 71 $ 4 Termination/nonassertion agreement-TSRL Inc. Straight line 10 years 6,000 4,375 1,625 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,346 1,504 Intellectual rights of Entelos Holding Company Straight line 10 years 50 15 35 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 709 7,301 $ 16,985 $ 6,516 $ 10,469 Total amortization expense for intellectual property agreements for the years ended August 31, 2022, 2021, and 2020 was $1.4 million, $1.4 million, and $1.1 million, respectively. Future amortization of intellectual property for the next five years is as follows: (in thousands) Year ending August 31, Amount 2023 $ 1,373 2024 $ 1,198 2025 $ 773 2026 $ 697 2027 $ 457 Earnings per Share We report earnings per share in accordance with ASC 260. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed similarly to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The components of basic and diluted earnings per share for the years ended August 31, 2022, 2021, and 2020 were as follows: August 31, (in thousands) 2022 2021 2020 Numerator Net income attributable to common shareholders $ 12,483 $ 9,782 $ 9,332 Denominator Weighted-average number of common shares outstanding during the year 20,196 20,045 17,819 Dilutive effect of stock options 553 698 719 Common stock and common stock equivalents used for diluted earnings per share 20,749 20,743 18,538 Stock-Based Compensation Compensation costs related to stock options are determined in accordance with ASC 718. Compensation cost is calculated based on the grant-date fair value estimated using the Black-Scholes pricing model and then amortized on a straight-line basis over the requisite service period. Stock-based compensation expense related to stock options, not including shares issued to directors for services, was $2.7 million, $2.4 million, and $1.3 million for the years ended August 31, 2022, 2021, and 2020, respectively. Impairment of Long-lived Assets We account for the impairment and disposition of long-lived assets in accordance with ASC 360. Long-lived assets to be held and used are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. We measure recoverability by comparing the carrying amount of an asset to the expected future undiscounted net cash flows generated by the asset. If we determine that the asset may not be recoverable, or if the carrying amount of an asset exceeds its estimated future undiscounted cash flows, we recognize an impairment charge to the extent of the difference between the fair value and the asset's carrying amount. No impairment losses were recorded during the years ended August 31, 2022, 2021, and 2020. Recently Issued Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). The amendment requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contract. The amendment is intended to improve the accounting for acquired revenue contracts with customers in a business combination, related to the recognition of an acquired contract liability, and to payment terms and their effect on subsequent revenue recognized by the acquirer. The amendment also provides certain practical expedients when applying the guidance. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022, on a prospective basis, with early adoption permitted. The Company expects to adopt ASU 2021-08 in the first quarter of fiscal year 2024. The Company is currently evaluating the potential impact of ASU 2021-08 to its consolidated financial statements. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Aug. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | OTHER INCOME (EXPENSE), NET The components of other income (expense), net for the years ended August 31, 2022, 2021, and 2020, were as follows: Year ended August 31, (in thousands) 2022 2021 2020 Interest income $ 717 $ 201 $ 30 Interest expense — (22) — Change in valuation of contingent consideration (283) (486) (203) Gain on sale of assets 1 — — (Loss) gain on currency exchange (231) 139 (45) Total other income (expense), net $ 204 $ (168) $ (218) |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Aug. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consisted of the following: August 31, (in thousands) 2022 2021 Equipment $ 346 $ 293 Computer equipment 860 606 Furniture and fixtures 61 36 Leasehold improvements 13 13 Construction in progress — 1,302 Subtotal 1,280 2,250 Less accumulated depreciation (648) (412) Total $ 632 $ 1,838 Depreciation expense was $0.3 million, $0.2 million, and $0.2 million for the years ended August 31, 2022, 2021, and 2020, respectively. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Aug. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTSThe Company invests a portion of its excess cash balances in short-term debt securities. Investments at August 31, 2022, consisted of corporate bonds and term deposits with maturities remaining of less than 12 months. The Company may also invest excess cash balances in certificates of deposits, money market accounts, government-sponsored enterprise securities, and/or commercial paper. The Company accounts for its investments in accordance with ASC 320, Investments – Debt and Equity Securities. As of August 31, 2022, all investments were classified as held-to-maturity securities, as the Company has the positive intent and ability to hold these securities until maturity. The Company believes unrealized losses on investments were primarily caused by rising interest rates rather than changes in credit quality and accordingly has not recorded an allowance for credit losses on its debt securities as of August 31, 2022, and 2021. The following tables summarize the Company’s short-term investments as of August 31, 2022, and 2021: August 31, 2022 (in thousands) Amortized Cost Gross Gross Fair Value Commercial notes (due within one year) $ 72,168 $ — $ (839) $ 71,329 Term deposits (due within one year) 4,500 4,500 Total $ 76,668 $ — $ (839) $ 75,829 August 31, 2021 (in thousands) Amortized Cost Gross Gross Fair Value Commercial notes (due within one year) $ 86,620 $ — $ (136) $ 86,484 Total $ 86,620 $ — $ (136) $ 86,484 |
CONTRACTS PAYABLE
CONTRACTS PAYABLE | 12 Months Ended |
Aug. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
CONTRACTS PAYABLE | CONTRACTS PAYABLE DILIsym Acquisition Liabilities: On June 1, 2017, we acquired DILIsym. The agreement provided for a working capital adjustment, an 18-month $1.0 million holdback provision against certain representations and warranties, and an earnout agreement of up to an additional $5.0 million in earnout payments based on earnings over three years following acquisition. The earnout liability was recorded at an estimated fair value. Payments under the earnout liability started in fiscal year 2019. In September 2018, $1.6 million was paid out under the first earnout payment. A second earnout payment was made in August 2019 in the amount of $1.7 million. The final payment of $1.8 million was paid in August 2020. In addition, no claims were made against the holdback and the $1.0 million holdback provision was released eighteen months after June 1, 2017. Lixoft Acquisition Liabilities : On April 1, 2020, the Company acquired Lixoft. The agreement provided for a 24-month $2.0 million holdback provision against certain representations and warranties, comprised of $1.3 million of cash and shares of common stock valued at $0.7 million issued and deposited into an escrow account at the date of the agreement. In April 2022, the shares of common stock were released from escrow and $1.3 million of cash was paid to settle the holdback liability. In addition, based on a revenue-growth formula for the two years subsequent to April 1, 2020, the agreement called for earnout payments up to $5.5 million (two-thirds' cash and one-third newly issued, unregistered shares of the Company’s common stock). The former shareholders could earn up to $2.0 million the first year and $3.5 million in year two. In June 2021, $2.0 million was paid out under the first earnout payment, which was comprised of $1.3 million of cash and shares of common stock valued at $0.7 million. In May 2022, $3.5 million was paid out under the second earnout payment, which was comprised of $2.3 million cash and shares of common stock valued at $1.2 million. As of August 31, 2022, and 2021 the following liabilities have been recorded: (in thousands) August 31, 2022 August 31, 2021 Holdback liability $ — $ 1,333 Earnout liability — 3,217 Subtotal $ — $ 4,550 Less: Current portion — 4,550 Long-term $ — $ — |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Aug. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases We lease 9,255 square feet of office space in Lancaster, California, where our corporate headquarters are located. The lease term extends to January 31, 2026, and the base rent is $17 thousand per month. The lease agreement gives the Company the right, upon 180 days’ prior notice, to opt out of all or part of the last four years of the term, with no penalty. We lease 4,317 square feet of office space in Buffalo, New York. The lease term extends to November 30, 2026, and the base rent is $7 thousand per month with an annual 2% increase. The lease agreement provides the Company with two five-year renewal options and the right to terminate the lease with one year’s prior written notice with certain penalties. We previously leased 12,623 square feet of office space at a different location in Buffalo, New York. That lease term extended to November 2021 and the base rent was $16 thousand per month. We have a data center colocation space in Buffalo, New York, with a lease term through November 30, 2026, and rent of $4 thousand per month with an annual 3% increase. We lease 3386 square feet of office space in Durham, North Carolina. The lease term extends to September 30, 2023, and the base rent is $8 thousand per month with an annual 3% increase. We lease 2,300 square feet of office space in Paris, France. The lease term extends to November 30, 2024, and the rent is $5 thousand per month and adjusted each December based on a consumer price index. Rent expense, including common area maintenance fees for the years ended August 31, 2022, 2021, and 2020 was $0.6 million, $0.7 million, and $0.6 million, respectively. Lease liability maturities as of August 31, 2022, were as follows: (in thousands) Years Ending August 31, Amount 2023 $ 511 2024 411 2025 346 2026 219 2027 34 Total undiscounted liabilities 1,521 Less: imputed interest (117) Total operating lease liabilities (including current portion) $ 1,404 Line of Credit On March 31, 2020, the Company entered into a Credit Agreement with Wells Fargo Bank, N.A. The Credit Agreement provided us with a credit facility of $3.5 million through April 15, 2022 (the "Termination Date"), on which date the Credit Agreement terminated in accordance with its terms. As a result, we can no longer draw down against the line of credit. We chose not to renew or pursue an alternative credit facility as we do not foresee a need to utilize such credit facility within the next twelve months. As of the Termination Date, there were no amounts drawn against the line of credit. Employment Agreements In the normal course of business, the Company has entered into employment agreements with certain of its executive officers that may require compensation payments upon termination. Litigation We are not a party to any legal proceedings and are not aware of any pending legal proceedings of any kind. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Aug. 31, 2022 | |
Equity [Abstract] | |
SHAREHOLDER'S EQUITY | SHAREHOLDERS' EQUITY Shares Outstanding Shares of common stock outstanding for the years ended August 31, 2022, 2021, and 2020 were as follows: August 31, 2022 2021 2020 Common stock outstanding, beginning of year 20,142 19,923 17,592 Common stock issued during the year 119 218 2,331 Common stock outstanding, end of year 20,260 20,142 19,923 Dividends The Company’s Board of Directors declared cash dividends during the years ended August 31, 2022, and 2021. The details of dividends paid are in the following tables: (in thousands, except dividend per share) Fiscal Year 2022 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/25/2021 11/01/2021 20,148 $ 0.06 $ 1,209 1/31/2022 2/07/2022 20,178 $ 0.06 1,211 4/25/2022 5/02/2022 20,207 $ 0.06 1,212 7/25/2022 8/01/2022 20,239 $ 0.06 1,214 Total $ 4,846 (in thousands, except dividend per share) Fiscal Year 2021 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/26/2020 11/02/2020 19,924 $ 0.06 $ 1,195 1/25/2021 2/01/2021 20,010 $ 0.06 1,201 4/26/2021 5/03/2021 20,115 $ 0.06 1,207 7/26/2021 8/02/2021 20,139 $ 0.06 1,208 Total $ 4,811 Stock Option Plans On December 23, 2016, the Board of Directors adopted, and on February 23, 2017, the shareholders approved, the 2017 Equity Incentive Plan (the "2017 Plan"), under which a total of 1.0 million shares of common stock were reserved for issuance. The 2017 plan would have terminated in December 2026. The 2017 Plan was replaced by the Company’s 2021 Plan (as defined below), and as a result, no further issuances of shares may be made under the 2017 Plan. On April 9, 2021, the Board of Directors adopted, and on June 23, 2021, the shareholders approved, the 2021 Equity Incentive Plan (the “2021 Plan”), under which a total of 1.3 million shares of common stock have been reserved for issuance. The 2021 Plan will terminate in 2031. As of August 31, 2022, employees and directors held Qualified Incentive Stock Options ("ISOs") and Non-Qualified Stock Options ("NQSOs") to purchase 1.2 million shares of common stock at exercise prices ranging from $6.85 to $66.14 per share. The following tables summarize information about stock options: (in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2022 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2021 1,184 $ 25.63 6.47 Granted 255 42.13 Exercised (104) 16.15 Canceled/Forfeited (90) 42.30 Outstanding, August 31, 2022 1,245 $ 28.61 6.14 Vested and Exercisable, August 31, 2022 711 $ 17.65 4.47 Vested and Expected to Vest, August 31, 2022 1,236 $ 28.51 6.12 (in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2021 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2020 1,224 $ 17.76 6.79 Granted 226 57.60 Exercised (204) 12.53 Canceled/Forfeited (62) 29.83 Outstanding, August 31, 2021 1,184 $ 25.63 6.47 Vested and Exercisable, August 31, 2021 619 $ 13.36 4.95 Vested and Expected to Vest, August 31, 2021 1,173 $ 25.69 6.47 (in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2020 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2019 1,163 $ 12.63 7.13 Granted 223 39.23 Exercised (121) 9.29 Canceled/Forfeited (41) 14.19 Outstanding, August 31, 2020 1,224 $ 17.76 6.79 Vested and Exercisable, August 31, 2020 596 $ 10.69 5.59 Vested and Expected to Vest, August 31, 2020 1,194 $ 17.75 6.77 The following table summarizes the Intrinsic Value of options outstanding and options exercisable: (in thousands) Intrinsic Value Intrinsic Intrinsic Fiscal Year 2020 $ 51,273 $ 29,151 $ 4,086 Fiscal Year 2021 $ 25,705 $ 19,373 $ 11,554 Fiscal Year 2022 $ 39,208 $ 30,187 $ 3,572 The weighted-average remaining contractual life of options outstanding issued under the Plans, for both ISOs and NQSOs, was 6.14 years at August 31, 2022. The total fair value of non-vested stock options as of August 31, 2022, was $9.1 million and is amortizable over a weighted-average period of 3.27 years. The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. In addition, option-valuation models require the input of highly subjective assumptions, including the expected stock price volatility. The following table summarizes the fair value of the options, including both ISOs and NQSOs, granted during the current fiscal year 2022 and fiscal year 2021: (in thousands, except prices) Fiscal Year 2022 Fiscal Year 2021 Estimated fair value of awards granted $ 4,597 $ 5,092 Unvested Forfeiture Rate 1.04 % 0 % Weighted-average grant price $ 42.13 $ 57.60 Weighted-average market price $ 42.13 $ 57.60 Weighted-average volatility 42.80 % 40.49 % Weighted-average risk-free rate 1.74 % 0.64 % Weighted-average dividend yield 0.58 % 0.42 % Weighted-average expected life 6.59 years 6.63 years The exercise prices for the options outstanding at August 31, 2022, ranged from $6.85 to $66.14, and the information relating to these options is as follows: (in thousands except prices) Exercise Price Awards Outstanding Awards Exercisable Low High Quantity Weighted -Average Weighted-Average Quantity Weighted-Average Weighted-Average $ 6.85 $ 9.77 286 2.75 years $ 8.29 286 2.75 years $ 8.29 $ 9.78 $ 18.76 200 4.32 years $ 10.37 200 4.32 years $ 10.37 $ 18.77 $ 33.40 241 6.38 years $ 25.21 121 5.97 years $ 24.16 $ 33.41 $ 47.63 229 8.64 years $ 38.47 41 7.01 years $ 35.41 $ 47.64 $ 66.14 289 8.56 years $ 56.30 63 8.14 years $ 58.92 1,245 6.14 years $ 28.61 711 4.47 years $ 17.65 During the fiscal years ended August 31, 2022, 2021, and 2020, we issued 7,120, 5,620 and 7,205 shares of stock valued at $0.4 million, $0.3 million, and $0.3 million, respectively, to our nonmanagement directors as compensation for board-related duties. The balance of our par-value common stock and additional paid-in capital as of August 31, 2022, was $11 thousand and $138.5 million, respectively, and the balance of our par-value common stock and additional paid-in capital as of August 31, 2021, was $10 thousand and $133.4 million, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We utilize ASC 740 to account for income taxes which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities. The components of the income tax provision for the years ended August 31, 2022, 2021, and 2020 were as follows: (in thousands) 2022 2021 2020 Current Federal $ 2,518 $ 1,315 $ 2,098 State 611 450 478 Foreign (228) 166 39 Total current tax expense 2,901 1,931 2,615 Deferred Federal (4) (379) (428) State (265) (249) (132) Total deferred federal and state (269) (628) (560) Total $ 2,632 $ 1,303 $ 2,055 A reconciliation of the expected income tax computed using the federal statutory income tax rate to the Company's effective income tax rate is as follows for the years ended August 31, 2022, 2021, and 2020: 2022 2021 2020 Income tax computed at federal statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 3.2 2.0 4.1 Meals & entertainment — — 0.1 Stock-based compensation 0.6 (6.8) (1.2) Other permanent differences 0.4 (0.3) (0.3) Research and development credit (2.2) (1.6) (2.8) Foreign-tax-related differences (3.2) (2.6) (1.4) Research & credit adjustments to expense — 0.2 0.3 Change in prior year estimated taxes (2.4) (0.1) (1.8) Total 17.4 % 11.8 % 18.0 % Significant components of the Company's deferred tax assets and liabilities for income taxes for the years ended August 31, 2022, and 2021 are as follows: (in thousands) 2022 2021 Deferred tax assets: Accrued compensation $ 563 $ 586 Deferred revenue 241 102 Capitalized merger costs 703 703 Intellectual property 7 7 Research and development credits 347 66 Foreign tax credits 101 — State taxes 128 72 Allowance for doubtful accounts 3 20 State tax deferred 28 80 Total deferred tax assets 2,121 1,636 Less: Valuation allowance — — Deferred tax asset 2,121 1,636 Deferred tax liabilities: Property and equipment (109) (83) State tax deferred (30) (26) Intellectual property (1,139) (1,456) Capitalized computer software development costs (2,299) (1,797) Total deferred tax liabilities (3,577) (3,362) Net deferred tax liabilities $ (1,456) $ (1,726) We follow ASC 740 with regard to our accounting for uncertainty in income taxes recognized in the financial statements. Such guidance prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, we determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position and assume that the tax position will be examined by taxing authorities. Interest and penalties were immaterial for fiscal years 2022, 2021, and 2020, respectively. We file income tax returns with the IRS and various state jurisdictions as well as with the countries of India, Belgium and France. Our federal income tax returns for fiscal year 2019 through 2021 are open for audit, and our state tax returns for fiscal year 2018 through 2021 remain open for audit. Our review of prior-year tax positions using the criteria and provisions presented in guidance issued by FASB did not result in a material impact on our financial position or results of operations. |
CONCENTRATIONS AND UNCERTAINTIE
CONCENTRATIONS AND UNCERTAINTIES | 12 Months Ended |
Aug. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND UNCERTAINTIES | CONCENTRATIONS AND UNCERTAINTIES Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, trade accounts receivable, and short-term investments. The Company holds cash and cash equivalents at banks located in California, with balances that often exceed FDIC insured limits. In addition, we hold cash at a bank in France that is not FDIC-insured. Historically, the Company has not experienced any losses in such accounts. While the Company may be exposed to credit losses due to the nonperformance of its counterparties, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows, or financial condition. The Company maintains cash at financial institutions that may, at times, exceed federally insured limits. Revenue concentration shows that international sales accounted for 30%, 31%, and 29% of revenue for the years ended August 31, 2022, 2021, and 2020, respectively. Our three largest customers in terms of revenue accounted for 5%, 3%, and 3% of revenue for fiscal year 2022. Our three largest customers in terms of revenue accounted for 11%, 4%, and 3% of revenue for fiscal year 2021. Our three largest customers in terms of revenue accounted for 9%, 7%, and 7% of revenue for fiscal year 2020. Accounts receivable concentrations show that our three largest customers in terms of accounts receivable each comprised between 4% and 8% of accounts receivable as of August 31, 2022, respectively; our two largest customers in terms of accounts receivable comprised 5% and 16% of accounts receivable as of August 31, 2021, respectively. We operate in the biosimulation market, which is highly competitive and changes rapidly. Our operating results could be significantly affected by our ability to develop new products and find new distribution channels for new and existing products. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company applies ASC 280, Segment Reporting, in determining reportable segments. The Company has two reportable segments: Software and Services. Segment information is presented in the same manner that the chief operating decision maker ("CODM") reviews certain financial information based on these reportable segments. The CODM reviews revenue and gross profit for both of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment. No operating segments have been aggregated to form the reportable segments. The Company does not allocate assets at the reportable segment level as these are managed on an entity-wide group basis and, accordingly, the Company does not report asset information by segment. The Company does not allocate operating expenses that are managed on an entity-wide group basis and, accordingly, the Company does not allocate and report operating expenses at segment level. There are no internal revenue transactions between the Company’s segments. The following tables summarize the results for each segment as follows for the years ended August 31, 2022, 2021 and 2020: (in thousands) Year ended August 31, 2022 Software Services Total Revenues $ 32,642 $ 21,264 $ 53,906 Cost of revenues 3,060 7,762 10,822 Gross profit $ 29,582 $ 13,502 $ 43,084 Gross margin 91 % 63 % 80 % Our software business and services business represented 61% and 39% of total revenue, respectively, for the year ended August 31, 2022. (in thousands) Year ended August 31, 2021 Software Services Total Revenues $ 27,670 $ 18,796 $ 46,466 Cost of revenues 3,235 7,365 10,600 Gross profit $ 24,435 $ 11,431 $ 35,866 Gross margin 88 % 61 % 77 % Our software business and services business represented 60% and 40% of total revenue, respectively, for the year ended August 31, 2021. (in thousands) Year ended August 31, 2020 Software Services Total Revenues $ 21,587 $ 20,002 $ 41,589 Cost of revenues 2,883 7,766 10,649 Gross profit $ 18,704 $ 12,236 $ 30,940 Gross margin 87 % 61 % 74 % Our software business and services business represented 52% and 48% of total revenue, respectively, for the year ended August 31, 2020. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Aug. 31, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANWe maintain a 401(k) Plan for eligible employees. We make matching contributions equal to 100% of the employee’s elective deferral, not to exceed 4% of the employee's total compensation. We contributed $0.6 million, $0.5 million, and $0.5 million for fiscal years 2022, 2021, and 2020, respectively. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Aug. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | ACQUISITION On March 31, 2020, we entered into a Share Purchase and Contribution Agreement (the “SPCA”) with Lixoft. Under the terms of the SPCA, we agreed to pay the former shareholders of Lixoft total consideration of up to $16.5 million, consisting of two-thirds cash and one-third newly issued, unregistered shares of our common stock. At closing, we paid the former shareholders of Lixoft a total of $10.8 million, comprised of cash in the amount of $9.5 million and the issuance of 111,682 shares of our common stock valued at $3.7 million, net of adjustments and a $2.0 million holdback for representations and warranties. In addition, we paid $3.5 million of excess working capital based on the March 31, 2020, financial statements of Lixoft. In addition, the SPCA called for earnout payments of up to an additional $5.5 million, payable in two-thirds cash and one-third newly issued, unregistered shares of our common stock, based on a revenue-growth formula each year for the two years subsequent to April 1, 2020. The former shareholders could earn up to $2 million the first year and $3.5 million in year two. In June 2021, $2.0 million was paid out under the first earnout payment, which was comprised of $1.3 million of cash and shares of our common stock valued at $0.7 million. In April 2022, we released from escrow and distributed the $2.0 million holdback consideration, consisting of $1.3 million in cash and shares of our common stock valued at $0.7 million (amounting to an aggregate of 20,326 unregistered shares of our common stock), to the former shareholders of Lixoft. In May 2022, $3.5 million was paid out under the second earnout payment, which was comprised of $2.3 million of cash and shares of our common stock valued at $1.2 million (amounting to an aggregate of 23,825 unregistered shares of our common stock), to the former shareholders of Lixoft in accordance with the SPCA. Under the acquisition method of accounting, the total purchase price reflects Lixoft’s tangible and intangible assets and liabilities based on their estimated fair values at the date of the completion of the acquisition (April 1, 2020). The following table summarizes the allocation of the purchase price for Lixoft: (in thousands) Assets acquired, including cash of $3,799 and accounts receivable of $629 $ 5,007 Developed technologies acquired 8,010 Estimated value of intangible assets acquired (customer lists, trade name etc.) 4,160 Estimated goodwill acquired 2,534 Liabilities assumed (1,118) Total consideration $ 18,593 Goodwill has been provided in the transaction based on estimates of future earnings of this subsidiary including anticipated synergies associated with the positioning of the combined company as a leader in model-based drug development. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Dividend Declared On Thursday, October 20, 2022, our Board of Directors declared a quarterly cash dividend of $0.06 per share to our shareholders. The dividend in the amount of $1.2 million will be distributed on Wednesday, November 7, 2022, for shareholders of record as of Monday, October 31, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Simulations Plus and, as of April 1, 2020, Lixoft. All significant intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates Our financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain numbers in the prior year have been reclassified to conform to the current year's presentation. |
Revenue Recognition | Revenue Recognition We generate revenue primarily from the sale of software licenses and by providing consulting services to the pharmaceutical industry for drug development. In accordance with ASC 606, we determine revenue recognition through the following steps: i. Identification of the contract, or contracts, with a customer ii. Identification of the performance obligations in the contract iii. Determination of the transaction price iv. Allocation of the transaction price to the performance obligations in the contract v. Recognition of revenue when, or as, we satisfy a performance obligation Components of Revenue The following is a description of principal activities from which the Company generates revenue. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the stand-alone selling price for each performance obligation identified in the contract. Stand-alone selling prices are determined based on the prices at which the Company separately sells its services or goods. Revenue Components Typical Payment Terms Software Revenues: Software revenues are generated primarily from sales of software licenses at the time the software is unlocked, and the term commences. The license period typically is one year or less. Along with the license a di minimis amount of customer support is provided to assist the customer with the software. Should the customer need more than a di minimis amount of support, they can choose to enter into a separate contract for additional training. Most software is installed on our customers’ servers and the Company has no control of the software once the sale is made. Payments are generally due upon invoicing on a net 30 basis unless other payment terms are negotiated with the customer based on customer history. Typical industry standards apply. For certain software arrangements the Company hosts the licenses on servers maintained by the Company, Revenue for those arrangements is accounted as Software as a Service over the life of the contract. These arrangements are a small portion of software revenues of the Company. Consulting Contracts: Consulting services provided to our customers are generally recognized over time as the contracts are performed and the services are rendered. The company measures its consulting revenue based on time expended compared to total estimated hours to complete a project. The Company believes the method chosen for its contract revenue best depicts the transfer of benefits to the customer under the contracts. Payment terms vary, depending on the size of the contract, credit history and history with the client and deliverables within the contract. Consortium Member Based Services: The performance obligation is recognized on a time elapsed basis, by month, for which the services are provided, as the Company transfers control evenly over the contractual period. Payment is due at the beginning of the period, generally on a net 30 or 60 basis. Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. As of August 31, 2022, remaining performance obligations were $13.5 million. 86% of the remaining performance obligations are expected to be recognized over the next 12 months, with the remainder recognized thereafter. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations and changes in the scope of contracts. Disaggregation of Revenues The components of disaggregation of revenue for the years ended August 31, 2022, 2021, and 2020 were as follows: Year ended August 31, (in thousands) 2022 2021 2020 Software licenses Point in time $ 31,587 $ 26,725 $ 20,668 Over time 1,055 945 919 Services Over time 21,264 18,796 20,002 Total revenue $ 53,906 $ 46,466 $ 41,589 In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the years ended August 31, 2022, 2021, and 2020 were as follows: (in thousands) Year ended August 31, 2022 2021 2020 $ % of total $ % of total $ % of total Americas $ 37,681 70 % $ 32,549 70 % $ 29,674 71 % EMEA 10,388 19 % 7,906 17 % 5,827 14 % Asia Pacific 5,837 11 % 6,011 13 % 6,088 15 % Total $ 53,906 100 % $ 46,466 100 % $ 41,589 100 % Contract Balances We receive payments from customers based upon contractual billing schedules, while we recognize revenue when, or as, we satisfy our performance obligations. This timing difference results in accounts receivable, contract assets, and contract liabilities. We record accounts receivable when the right to consideration becomes unconditional. We record a contract asset if the right to consideration is conditioned on something other than the passage of time, such as our future performance. Contract assets are included in prepaid expenses and other current assets on our consolidated balance sheets. We record a contract liability when we have an obligation to transfer goods or services to a customer for which we have either received consideration or a payment is due from a customer. We refer to contract liabilities as deferred revenue on our consolidated balance sheets. Contract asset balances as of August 31, 2022, and August 31, 2021, were $1.7 million and $3.2 million, respectively. During the year ended August 31, 2022, the Company recognized $0.6 million of revenue that was included in contract liabilities as of August 31, 2021, and during the year ended August 31, 2021, the Company recognized $0.4 million of revenue that was included in contract liabilities as of August 31, 2020. Deferred Commissions Sales commissions earned by our sales force and our commissioned sales representatives are considered incremental and recoverable costs of obtaining a contract with a customer. We apply the practical expedient as described in ASC 340-40-25-4 to expense costs as incurred for sales commissions, since the amortization period of the asset that we otherwise would have recognized is one year or less. This expense is included in the consolidated statements of operations and comprehensive income as selling, general, and administrative expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable and Allowance for Credit Losses The Company extends credit to its customers in the normal course of business. The Company evaluates its allowance for credit losses based on its estimate of the collectability of its trade accounts receivable. As part of this assessment, the Company considers various factors including the financial condition of the individual companies with which it does business, the aging of receivable balances, historical experience, changes in customer payment terms, current market conditions, and reasonable and supportable forecasts of future economic conditions. In times of economic turmoil, the Company’s estimates and judgments with respect to the collectability of its receivables is subject to greater uncertainty than in more stable periods. Accounts receivable balances will be charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. |
Investments | Investments The Company may invest excess cash balances in short-term and long-term marketable debt securities. Investments may consist of certificates of deposit, money market accounts, government-sponsored enterprise securities, corporate bonds, and/or commercial paper within the parameters of our Investment Policy and Guidelines. The Company accounts for its investments in marketable securities in accordance with ASC 320, Investments – Debt and Equity Securities. This statement requires debt securities to be classified into three categories: Held-to-maturity—Debt securities that the entity has the positive intent and ability to hold to maturity are measured at amortized cost and are presented at the net amount expected to be collected. Any change in the allowance for credit losses during the period is reflected in earnings. Discounts and premiums to par value of the debt securities are amortized to interest income/expense over the term of the security. Trading Securities—Debt securities that are bought and held primarily for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in earnings. Available-for-Sale—Debt securities not classified as either securities held-to-maturity or trading securities are reported at fair value. For available-for-sale debt securities in an unrealized loss position, we evaluate as of the balance sheet date whether the unrealized losses are attributable to a credit loss or other factors. The portion of unrealized losses related to a credit loss is recognized in earnings, and the portion of unrealized loss not related to a credit loss is recognized in other comprehensive income. We classify our investments in marketable debt securities based on the facts and circumstances present at the time of purchase of the securities. We subsequently reassess the appropriateness of that classification at each reporting date. During the year ended August 31, 2022, all of our investments were classified as held-to-maturity. |
Capitalized Computer Software Development Costs | Capitalized Computer Software Development Costs Software development costs are capitalized in accordance with ASC 985-20. Capitalization of software development costs begins upon the establishment of technological feasibility and is discontinued when the product is available for sale. The establishment of technological feasibility and the ongoing assessment for recoverability of capitalized software development costs require considerable judgment by management with respect to certain external factors including, but not limited to, technological feasibility, anticipated future gross revenue, estimated economic life, and changes in software and hardware technologies. Capitalized software development costs are comprised primarily of salaries and direct payroll-related costs and the purchase of existing software to be used in our software products. Amortization of capitalized software development costs is calculated on a product-by-product basis on the straight-line method over the estimated economic life of the products (not to exceed five years). Amortization of software development costs amounted to $1.2 million, $1.4 million, and $1.2 million for the years ended August 31, 2022, 2021, and 2020, respectively. We expect future amortization expense to vary due to increases in capitalized computer software development costs. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, or fair market value for property and equipment acquired in business combinations, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows: 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 Maintenance and minor replacements are charged to expense as incurred. Gains and losses on disposals are included in the results of operations. |
Internal-use Software | Internal-use Software We have capitalized certain internal-use software costs in accordance with ASC 350-40, which are included in intangible assets. The amortization of such costs is classified as selling, general, and administrative expenses on the consolidated statements of operations. Maintenance of and minor upgrades to internal-use software are also classified as selling, general, and administrative expenses as incurred. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities (current and long-term) in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. The operating lease ROU asset also includes any lease payments made at or before the commencement date and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill We perform valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and recognize the assets acquired and liabilities assumed at their acquisition-date fair value. Acquired intangible assets include customer relationships, software, trade names, and noncompete agreements. We determine the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Finite-lived intangible assets are amortized over their estimated useful lives using the straight-line method, which approximates the pattern in which the majority of the economic benefits are expected to be consumed. Finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill and indefinite-lived intangible assets are tested for impairment annually or when events or circumstances change that would indicate that they might be impaired. Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. |
Other Intangible Assets | The following table summarizes other intangible assets as of August 31, 2022: (in thousands) Amortization Acquisition Accumulated Net book Simulations Plus ERP Straight line 15 years $ 1,702 $ 80 $ 1,622 Cognigen Customer relationships Straight line 8 years 1,100 1,100 — Trade Name None 500 — 500 DILIsym Customer relationships Straight line 10 years 1,900 997 903 Trade Name None 860 — 860 Lixoft Customer relationships Straight line 14 years 2,550 437 2,113 Trade Name None 1,550 — 1,550 Covenants not to compete Straight line 3 years 60 48 12 $ 10,222 $ 2,662 $ 7,560 The following table summarizes other intangible assets as of August 31, 2021: (in thousands) Amortization Acquisition Accumulated Net book Cognigen Customer relationships Straight line 8 years $ 1,100 $ 963 $ 137 Trade Name None 500 — 500 Covenants not to compete Straight line 5 years 50 50 — DILIsym Customer relationships Straight line 10 years 1,900 807 1,093 Trade Name None 860 — 860 Covenants not to compete Straight line 4 years 80 80 — Lixoft Customer relationships Straight line 14 years 2,550 258 2,292 Trade Name None 1,550 — 1,550 Covenants not to compete Straight line 3 years 60 28 32 $ 8,650 $ 2,186 $ 6,464 |
Business Acquisitions | Business Acquisitions The Company accounted for the acquisition of Lixoft using the acquisition method of accounting where the assets acquired and liabilities assumed are recognized based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain acquired assets and liabilities is subjective in nature and often involves the use of significant estimates and assumptions, including, but not limited to, the selection of appropriate valuation methodology, projected revenue, expenses and cash flows, weighted average cost of capital, discount rates, estimates of advertiser and publisher turnover rates, and estimates of terminal values. Business acquisitions are included in the Company's consolidated financial statements as of the date of the acquisition. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories are as follows: Level Input: Input Definition: Level I Inputs that are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. For certain of our financial instruments, including accounts receivable, accounts payable, and accrued compensation and other accrued expenses, the amounts approximate fair value due to their short maturities. The following table summarizes fair value measurements as of August 31, 2022, and August 31, 2021, for assets and liabilities measured at fair value on a recurring basis: August 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 51,567 $ — $ — $ 51,567 Short-term investments $ 76,668 $ — $ — $ 76,668 August 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 36,984 $ — $ — $ 36,984 Short-term investments $ 86,620 $ — $ — $ 86,620 Acquisition-related contingent consideration obligations $ — $ — $ 3,217 $ 3,217 As of August 31, 2022, we had no liability for contingent consideration related to our acquisition of Lixoft as the remaining contingent obligation was settled in May 2022. As of August 31, 2021, we had a liability for contingent consideration related to our acquisition of Lixoft. The fair value measurement of the contingent consideration obligations was determined using Level 3 inputs and was based on a discounted cash flow model using a probability-weighted income approach. The liability is recorded as contracts payable on our consolidated balance sheets, and changes in the fair value of the contingent consideration obligations are recorded as other income (expense), net in our consolidated statements of operations and comprehensive income. |
Marketing | Marketing The Company expenses marketing costs as incurred. Marketing costs for the years ended August 31, 2022, 2021, and 2020 were $0.2 million, $0.1 million, and $0.1 million, respectively. |
Research and Development Costs | Research and Development Costs Research and development costs are charged to expense as incurred until technological feasibility has been established. These costs include salaries, laboratory experiments, and purchased software that was developed by other companies and incorporated into, or used in the development of, our final products. |
Income Taxes | Income Taxes We account for income taxes in accordance with ASC 740 which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities. |
Intellectual property | Intellectual property On February 28, 2012, we bought out the royalty agreement with Enslein Research. The cost of $0.1 million is being amortized over 10 years under the straight-line method. On May 15, 2014, we entered into a termination and non-assertion agreement with TSRL, Inc., pursuant to which the parties agreed to terminate an exclusive software licensing agreement entered into between the parties in 1997. As a result, the Company obtained a perpetual right to use certain source code and data, and TSRL relinquished any rights and claims to any GastroPlus products and to any claims, royalties, or other payments under that 1997 agreement. We agreed to pay TSRL total consideration of $6.0 million, which is being amortized over 10 years under the straight-line method. On June 1, 2017, as part of the acquisition of DILIsym, the Company acquired certain developed technologies associated with the drug-induced liver disease (DILI). These technologies were valued at $2.9 million and are being amortized over 9 years under the straight-line method. In September 2018, we purchased certain intellectual property rights of Entelos Holding Company. The cost of $0.1 million is being amortized over 10 years under the straight-line method. On April 1, 2020, as part of the acquisition of Lixoft, the Company acquired certain developed technologies associated with the Lixoft scientific software. These technologies were valued at $8.0 million and are being amortized over 16 years under the straight-line method. |
Earnings per Share | Earnings per ShareWe report earnings per share in accordance with ASC 260. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per share is computed similarly to basic earnings per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. |
Stock-Based Compensation | Stock-Based CompensationCompensation costs related to stock options are determined in accordance with ASC 718. Compensation cost is calculated based on the grant-date fair value estimated using the Black-Scholes pricing model and then amortized on a straight-line basis over the requisite service period. Stock-based compensation expense related to stock options, not including shares issued to directors for services, was $2.7 million, $2.4 million, and $1.3 million for the years ended August 31, 2022, 2021, and 2020, respectively. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets We account for the impairment and disposition of long-lived assets in accordance with ASC 360. Long-lived assets to be held and used are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. We measure recoverability by comparing the carrying amount of an asset to the expected future undiscounted net cash flows generated by the asset. If we determine that the asset may not be recoverable, or if the carrying amount of an asset exceeds its estimated future undiscounted cash flows, we recognize an impairment charge to the extent of the difference between the fair value and the asset's carrying amount. No impairment losses were recorded during the years ended August 31, 2022, 2021, and 2020. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). The amendment requires contract assets and contract liabilities acquired in a business combination to be recognized and measured in accordance with ASC 606, Revenue from Contracts with Customers, as if the acquirer had originated the contract. The amendment is intended to improve the accounting for acquired revenue contracts with customers in a business combination, related to the recognition of an acquired contract liability, and to payment terms and their effect on subsequent revenue recognized by the acquirer. The amendment also provides certain practical expedients when applying the guidance. ASU 2021-08 is effective for interim and annual periods beginning after December 15, 2022, on a prospective basis, with early adoption permitted. The Company expects to adopt ASU 2021-08 in the first quarter of fiscal year 2024. The Company is currently evaluating the potential impact of ASU 2021-08 to its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The components of disaggregation of revenue for the years ended August 31, 2022, 2021, and 2020 were as follows: Year ended August 31, (in thousands) 2022 2021 2020 Software licenses Point in time $ 31,587 $ 26,725 $ 20,668 Over time 1,055 945 919 Services Over time 21,264 18,796 20,002 Total revenue $ 53,906 $ 46,466 $ 41,589 |
Schedule of Geographical Revenues | Geographical revenues for the years ended August 31, 2022, 2021, and 2020 were as follows: (in thousands) Year ended August 31, 2022 2021 2020 $ % of total $ % of total $ % of total Americas $ 37,681 70 % $ 32,549 70 % $ 29,674 71 % EMEA 10,388 19 % 7,906 17 % 5,827 14 % Asia Pacific 5,837 11 % 6,011 13 % 6,088 15 % Total $ 53,906 100 % $ 46,466 100 % $ 41,589 100 % |
Property and Equipment estimated useful lives | Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows: 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 |
Lease, Cost | Supplemental balance sheet information related to operating leases was as follows as of August 31, 2022: (in thousands) Right of use assets $ 1,420 Lease liabilities, current $ 461 Lease liabilities, long-term $ 943 Operating lease costs $ 520 Weighted-average remaining lease term 3.05 years Weighted-average discount rate 3.41 % |
Schedule of Goodwill | Reconciliation of Goodwill as of August 31, 2022, and 2021: (in thousands) Cognigen DILIsym Lixoft Total Balance, August 31, 2020 $ 4,789 $ 5,598 $ 2,534 $ 12,921 Addition — — — — Impairments — — — — Balance, August 31, 2021 4,789 5,598 2,534 12,921 Addition — — — — Impairments — — — — Balance, August 31, 2022 $ 4,789 $ 5,598 $ 2,534 $ 12,921 |
Schedule of Finite-Lived Intangible Assets | (in thousands) Amortization Acquisition Accumulated Net book Simulations Plus ERP Straight line 15 years $ 1,702 $ 80 $ 1,622 Cognigen Customer relationships Straight line 8 years 1,100 1,100 — Trade Name None 500 — 500 DILIsym Customer relationships Straight line 10 years 1,900 997 903 Trade Name None 860 — 860 Lixoft Customer relationships Straight line 14 years 2,550 437 2,113 Trade Name None 1,550 — 1,550 Covenants not to compete Straight line 3 years 60 48 12 $ 10,222 $ 2,662 $ 7,560 The following table summarizes other intangible assets as of August 31, 2021: (in thousands) Amortization Acquisition Accumulated Net book Cognigen Customer relationships Straight line 8 years $ 1,100 $ 963 $ 137 Trade Name None 500 — 500 Covenants not to compete Straight line 5 years 50 50 — DILIsym Customer relationships Straight line 10 years 1,900 807 1,093 Trade Name None 860 — 860 Covenants not to compete Straight line 4 years 80 80 — Lixoft Customer relationships Straight line 14 years 2,550 258 2,292 Trade Name None 1,550 — 1,550 Covenants not to compete Straight line 3 years 60 28 32 $ 8,650 $ 2,186 $ 6,464 |
Finite-lived Intangible Assets Amortization Expense | Future amortization of finite-lived intangible assets for the next five years is as follows: (in thousands) Year ending August 31, Amount 2023 $ 493 2024 $ 481 2025 $ 481 2026 $ 481 2027 $ 434 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The following table summarizes fair value measurements as of August 31, 2022, and August 31, 2021, for assets and liabilities measured at fair value on a recurring basis: August 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 51,567 $ — $ — $ 51,567 Short-term investments $ 76,668 $ — $ — $ 76,668 August 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 36,984 $ — $ — $ 36,984 Short-term investments $ 86,620 $ — $ — $ 86,620 Acquisition-related contingent consideration obligations $ — $ — $ 3,217 $ 3,217 |
Reconciliation of Contingent Consideration Value | The following is a reconciliation of contingent consideration value: (in thousands) Value as of August 31, 2021 $ 3,217 Contingent consideration payments in cash (2,334) Contingent consideration payments in stock (1,166) Change in value of contingent consideration 283 Value as of August 31, 2022 $ — |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes intellectual property as of August 31, 2022: (in thousands) Amortization Acquisition Accumulated Net Book Royalty Agreement buy out-Enslein Research Straight line 10 years $ 75 $ 75 $ — Termination/nonassertion agreement-TSRL Inc. Straight line 10 years 6,000 4,975 1,025 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,662 1,188 Intellectual rights of Entelos Holding Company Straight line 10 years 50 20 30 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 1,196 6,814 $ 16,985 $ 7,928 $ 9,057 The following table summarizes intellectual property as of August 31, 2021: (in thousands) Amortization Acquisition Accumulated Net Book Royalty Agreement buy out-Enslein Research Straight line 10 years $ 75 $ 71 $ 4 Termination/nonassertion agreement-TSRL Inc. Straight line 10 years 6,000 4,375 1,625 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,346 1,504 Intellectual rights of Entelos Holding Company Straight line 10 years 50 15 35 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 709 7,301 $ 16,985 $ 6,516 $ 10,469 |
Schedule of Future Amortization Expenses | Future amortization of intellectual property for the next five years is as follows: (in thousands) Year ending August 31, Amount 2023 $ 1,373 2024 $ 1,198 2025 $ 773 2026 $ 697 2027 $ 457 |
Schedule of Earnings Per Share, Basic and Diluted | The components of basic and diluted earnings per share for the years ended August 31, 2022, 2021, and 2020 were as follows: August 31, (in thousands) 2022 2021 2020 Numerator Net income attributable to common shareholders $ 12,483 $ 9,782 $ 9,332 Denominator Weighted-average number of common shares outstanding during the year 20,196 20,045 17,819 Dilutive effect of stock options 553 698 719 Common stock and common stock equivalents used for diluted earnings per share 20,749 20,743 18,538 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of other income (expense), net for the years ended August 31, 2022, 2021, and 2020, were as follows: Year ended August 31, (in thousands) 2022 2021 2020 Interest income $ 717 $ 201 $ 30 Interest expense — (22) — Change in valuation of contingent consideration (283) (486) (203) Gain on sale of assets 1 — — (Loss) gain on currency exchange (231) 139 (45) Total other income (expense), net $ 204 $ (168) $ (218) |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consisted of the following: August 31, (in thousands) 2022 2021 Equipment $ 346 $ 293 Computer equipment 860 606 Furniture and fixtures 61 36 Leasehold improvements 13 13 Construction in progress — 1,302 Subtotal 1,280 2,250 Less accumulated depreciation (648) (412) Total $ 632 $ 1,838 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investments | The following tables summarize the Company’s short-term investments as of August 31, 2022, and 2021: August 31, 2022 (in thousands) Amortized Cost Gross Gross Fair Value Commercial notes (due within one year) $ 72,168 $ — $ (839) $ 71,329 Term deposits (due within one year) 4,500 4,500 Total $ 76,668 $ — $ (839) $ 75,829 August 31, 2021 (in thousands) Amortized Cost Gross Gross Fair Value Commercial notes (due within one year) $ 86,620 $ — $ (136) $ 86,484 Total $ 86,620 $ — $ (136) $ 86,484 |
CONTRACTS PAYABLE (Tables)
CONTRACTS PAYABLE (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | As of August 31, 2022, and 2021 the following liabilities have been recorded: (in thousands) August 31, 2022 August 31, 2021 Holdback liability $ — $ 1,333 Earnout liability — 3,217 Subtotal $ — $ 4,550 Less: Current portion — 4,550 Long-term $ — $ — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | Lease liability maturities as of August 31, 2022, were as follows: (in thousands) Years Ending August 31, Amount 2023 $ 511 2024 411 2025 346 2026 219 2027 34 Total undiscounted liabilities 1,521 Less: imputed interest (117) Total operating lease liabilities (including current portion) $ 1,404 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Equity [Abstract] | |
Schedule of Shares Outstanding | Shares Outstanding Shares of common stock outstanding for the years ended August 31, 2022, 2021, and 2020 were as follows: August 31, 2022 2021 2020 Common stock outstanding, beginning of year 20,142 19,923 17,592 Common stock issued during the year 119 218 2,331 Common stock outstanding, end of year 20,260 20,142 19,923 |
Schedule of Dividends Payable | Dividends The Company’s Board of Directors declared cash dividends during the years ended August 31, 2022, and 2021. The details of dividends paid are in the following tables: (in thousands, except dividend per share) Fiscal Year 2022 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/25/2021 11/01/2021 20,148 $ 0.06 $ 1,209 1/31/2022 2/07/2022 20,178 $ 0.06 1,211 4/25/2022 5/02/2022 20,207 $ 0.06 1,212 7/25/2022 8/01/2022 20,239 $ 0.06 1,214 Total $ 4,846 (in thousands, except dividend per share) Fiscal Year 2021 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/26/2020 11/02/2020 19,924 $ 0.06 $ 1,195 1/25/2021 2/01/2021 20,010 $ 0.06 1,201 4/26/2021 5/03/2021 20,115 $ 0.06 1,207 7/26/2021 8/02/2021 20,139 $ 0.06 1,208 Total $ 4,811 |
Share-based Payment Arrangement, Option, Activity | The following tables summarize information about stock options: (in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2022 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2021 1,184 $ 25.63 6.47 Granted 255 42.13 Exercised (104) 16.15 Canceled/Forfeited (90) 42.30 Outstanding, August 31, 2022 1,245 $ 28.61 6.14 Vested and Exercisable, August 31, 2022 711 $ 17.65 4.47 Vested and Expected to Vest, August 31, 2022 1,236 $ 28.51 6.12 (in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2021 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2020 1,224 $ 17.76 6.79 Granted 226 57.60 Exercised (204) 12.53 Canceled/Forfeited (62) 29.83 Outstanding, August 31, 2021 1,184 $ 25.63 6.47 Vested and Exercisable, August 31, 2021 619 $ 13.36 4.95 Vested and Expected to Vest, August 31, 2021 1,173 $ 25.69 6.47 (in thousands, except per share and weighted-average amounts) Transactions During Fiscal Year 2020 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2019 1,163 $ 12.63 7.13 Granted 223 39.23 Exercised (121) 9.29 Canceled/Forfeited (41) 14.19 Outstanding, August 31, 2020 1,224 $ 17.76 6.79 Vested and Exercisable, August 31, 2020 596 $ 10.69 5.59 Vested and Expected to Vest, August 31, 2020 1,194 $ 17.75 6.77 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | The following table summarizes the Intrinsic Value of options outstanding and options exercisable: (in thousands) Intrinsic Value Intrinsic Intrinsic Fiscal Year 2020 $ 51,273 $ 29,151 $ 4,086 Fiscal Year 2021 $ 25,705 $ 19,373 $ 11,554 Fiscal Year 2022 $ 39,208 $ 30,187 $ 3,572 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The following table summarizes the fair value of the options, including both ISOs and NQSOs, granted during the current fiscal year 2022 and fiscal year 2021: (in thousands, except prices) Fiscal Year 2022 Fiscal Year 2021 Estimated fair value of awards granted $ 4,597 $ 5,092 Unvested Forfeiture Rate 1.04 % 0 % Weighted-average grant price $ 42.13 $ 57.60 Weighted-average market price $ 42.13 $ 57.60 Weighted-average volatility 42.80 % 40.49 % Weighted-average risk-free rate 1.74 % 0.64 % Weighted-average dividend yield 0.58 % 0.42 % Weighted-average expected life 6.59 years 6.63 years |
Share-based Payment Arrangement, Option, Exercise Price Range | The exercise prices for the options outstanding at August 31, 2022, ranged from $6.85 to $66.14, and the information relating to these options is as follows: (in thousands except prices) Exercise Price Awards Outstanding Awards Exercisable Low High Quantity Weighted -Average Weighted-Average Quantity Weighted-Average Weighted-Average $ 6.85 $ 9.77 286 2.75 years $ 8.29 286 2.75 years $ 8.29 $ 9.78 $ 18.76 200 4.32 years $ 10.37 200 4.32 years $ 10.37 $ 18.77 $ 33.40 241 6.38 years $ 25.21 121 5.97 years $ 24.16 $ 33.41 $ 47.63 229 8.64 years $ 38.47 41 7.01 years $ 35.41 $ 47.64 $ 66.14 289 8.56 years $ 56.30 63 8.14 years $ 58.92 1,245 6.14 years $ 28.61 711 4.47 years $ 17.65 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the income tax provision for the years ended August 31, 2022, 2021, and 2020 were as follows: (in thousands) 2022 2021 2020 Current Federal $ 2,518 $ 1,315 $ 2,098 State 611 450 478 Foreign (228) 166 39 Total current tax expense 2,901 1,931 2,615 Deferred Federal (4) (379) (428) State (265) (249) (132) Total deferred federal and state (269) (628) (560) Total $ 2,632 $ 1,303 $ 2,055 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the expected income tax computed using the federal statutory income tax rate to the Company's effective income tax rate is as follows for the years ended August 31, 2022, 2021, and 2020: 2022 2021 2020 Income tax computed at federal statutory tax rate 21.0 % 21.0 % 21.0 % State taxes, net of federal benefit 3.2 2.0 4.1 Meals & entertainment — — 0.1 Stock-based compensation 0.6 (6.8) (1.2) Other permanent differences 0.4 (0.3) (0.3) Research and development credit (2.2) (1.6) (2.8) Foreign-tax-related differences (3.2) (2.6) (1.4) Research & credit adjustments to expense — 0.2 0.3 Change in prior year estimated taxes (2.4) (0.1) (1.8) Total 17.4 % 11.8 % 18.0 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities for income taxes for the years ended August 31, 2022, and 2021 are as follows: (in thousands) 2022 2021 Deferred tax assets: Accrued compensation $ 563 $ 586 Deferred revenue 241 102 Capitalized merger costs 703 703 Intellectual property 7 7 Research and development credits 347 66 Foreign tax credits 101 — State taxes 128 72 Allowance for doubtful accounts 3 20 State tax deferred 28 80 Total deferred tax assets 2,121 1,636 Less: Valuation allowance — — Deferred tax asset 2,121 1,636 Deferred tax liabilities: Property and equipment (109) (83) State tax deferred (30) (26) Intellectual property (1,139) (1,456) Capitalized computer software development costs (2,299) (1,797) Total deferred tax liabilities (3,577) (3,362) Net deferred tax liabilities $ (1,456) $ (1,726) |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize the results for each segment as follows for the years ended August 31, 2022, 2021 and 2020: (in thousands) Year ended August 31, 2022 Software Services Total Revenues $ 32,642 $ 21,264 $ 53,906 Cost of revenues 3,060 7,762 10,822 Gross profit $ 29,582 $ 13,502 $ 43,084 Gross margin 91 % 63 % 80 % Our software business and services business represented 61% and 39% of total revenue, respectively, for the year ended August 31, 2022. (in thousands) Year ended August 31, 2021 Software Services Total Revenues $ 27,670 $ 18,796 $ 46,466 Cost of revenues 3,235 7,365 10,600 Gross profit $ 24,435 $ 11,431 $ 35,866 Gross margin 88 % 61 % 77 % Our software business and services business represented 60% and 40% of total revenue, respectively, for the year ended August 31, 2021. (in thousands) Year ended August 31, 2020 Software Services Total Revenues $ 21,587 $ 20,002 $ 41,589 Cost of revenues 2,883 7,766 10,649 Gross profit $ 18,704 $ 12,236 $ 30,940 Gross margin 87 % 61 % 74 % Our software business and services business represented 52% and 48% of total revenue, respectively, for the year ended August 31, 2020. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Aug. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the allocation of the purchase price for Lixoft: (in thousands) Assets acquired, including cash of $3,799 and accounts receivable of $629 $ 5,007 Developed technologies acquired 8,010 Estimated value of intangible assets acquired (customer lists, trade name etc.) 4,160 Estimated goodwill acquired 2,534 Liabilities assumed (1,118) Total consideration $ 18,593 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Details - Revenue recognition) - USD ($) $ in Millions | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Accounting Policies [Abstract] | ||
Remaining performance obligations | $ 13.5 | |
Remaining performance obligations, percentage | 86% | |
Contract with customer, asset, after allowance for credit loss | $ 1.7 | $ 3.2 |
Contract with customer, liability, revenue recognized | $ 0.6 | $ 0.4 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Disaggregation of Revenue) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total revenues | $ 53,906 | $ 46,466 | $ 41,589 |
Software licenses | Point in time | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total revenues | 31,587 | 26,725 | 20,668 |
Software licenses | Over time | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total revenues | 1,055 | 945 | 919 |
Services | Over time | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total revenues | $ 21,264 | $ 18,796 | $ 20,002 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Schedule of Geographical Revenues) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total revenues | $ 53,906 | $ 46,466 | $ 41,589 |
Revenue Benchmark | Product Concentration Risk | |||
Finite-Lived Intangible Assets [Line Items] | |||
Concentration Risk, Percentage | 100% | 100% | 100% |
Americas | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total revenues | $ 37,681 | $ 32,549 | $ 29,674 |
Americas | Revenue Benchmark | Product Concentration Risk | |||
Finite-Lived Intangible Assets [Line Items] | |||
Concentration Risk, Percentage | 70% | 70% | 71% |
EMEA | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total revenues | $ 10,388 | $ 7,906 | $ 5,827 |
EMEA | Revenue Benchmark | Product Concentration Risk | |||
Finite-Lived Intangible Assets [Line Items] | |||
Concentration Risk, Percentage | 19% | 17% | 14% |
Asia Pacific | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total revenues | $ 5,837 | $ 6,011 | $ 6,088 |
Asia Pacific | Revenue Benchmark | Product Concentration Risk | |||
Finite-Lived Intangible Assets [Line Items] | |||
Concentration Risk, Percentage | 11% | 13% | 15% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 7 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Feb. 28, 2012 | Apr. 02, 2020 | May 15, 2014 | Jun. 02, 2017 | Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||
Capitalized computer software, amortization | $ 1,200,000 | $ 1,400,000 | $ 1,200,000 | |||||
Advertising expense | 200,000 | 100,000 | 100,000 | |||||
Stock-based compensation | 2,700,000 | 2,400,000 | 1,300,000 | |||||
Impairment losses | 0 | 0 | 0 | |||||
Goodwill | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment, long-lived asset, held-for-use | 0 | 0 | 0 | |||||
Other Intangible Assets | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | 600,000 | 500,000 | 400,000 | |||||
Intangible asset acquisition value | 10,222,000 | 8,650,000 | ||||||
Accumulated amortization of intellectual property | 2,662,000 | 2,186,000 | ||||||
Royalty Agreements | Enslien | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 100,000 | |||||||
Amortization period | 10 years under the straight-line method | |||||||
Term And Nonassertion Agr | T S R L | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 6,000,000 | |||||||
Amortization period | 10 years under the straight-line method | |||||||
Certain Developed Technologies | DILIsym | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 2,900,000 | |||||||
Amortization period | 9 years under the straight-line method | |||||||
Certain Developed Technologies | Lixoft | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 8,000,000 | |||||||
Amortization period | 16 years under the straight-line method | |||||||
Certain Intellectual Property Rights | Entelos Holding Co | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 100,000 | |||||||
Amortization period | 10 years under the straight-line method | |||||||
Intellectual Properties | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Accumulated amortization of intellectual property | $ 1,400,000 | $ 1,400,000 | $ 1,100,000 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Useful lives) | 12 Months Ended |
Aug. 31, 2022 | |
Equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 years |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 3 to 7 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | 5 to 7 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful lives | Shorter of life of asset or lease |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Lease cost) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Accounting Policies [Abstract] | ||
Right of use assets | $ 1,420 | $ 1,276 |
Lease liabilities, current | 461 | 382 |
Lease liabilities, long-term | 943 | $ 896 |
Operating lease costs | $ 520 | |
Weighted-average remaining lease term | 3 years 18 days | |
Weighted-average discount rate | 3.41% |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Goodwill) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 01, 2020 | Aug. 31, 2022 | Aug. 31, 2021 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 12,921 | $ 12,921 | |
Addition | 0 | 0 | |
Impairments | 0 | 0 | |
Goodwill, ending balance | 12,921 | 12,921 | |
Cognigen | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 4,789 | 4,789 | |
Addition | 0 | 0 | |
Impairments | 0 | 0 | |
Goodwill, ending balance | 4,789 | 4,789 | |
DILIsym | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 5,598 | 5,598 | |
Addition | 0 | 0 | |
Impairments | 0 | 0 | |
Goodwill, ending balance | 5,598 | 5,598 | |
Lixoft | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 2,534 | 2,534 | |
Addition | $ 2,534 | 0 | 0 |
Impairments | 0 | 0 | |
Goodwill, ending balance | $ 2,534 | $ 2,534 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Intangible Assets) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
ERP | Simulations Plus | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 15 years | |
Acquisition Value | $ 1,702 | |
Accumulated Amortization | 80 | |
Net book value | $ 1,622 | |
Customer relationships | Cognigen | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 8 years | Straight line 8 years |
Acquisition Value | $ 1,100 | $ 1,100 |
Accumulated Amortization | 1,100 | 963 |
Net book value | $ 0 | $ 137 |
Customer relationships | DILIsym | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 10 years | Straight line 10 years |
Acquisition Value | $ 1,900 | $ 1,900 |
Accumulated Amortization | 997 | 807 |
Net book value | $ 903 | $ 1,093 |
Customer relationships | Lixoft | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 14 years | Straight line 14 years |
Acquisition Value | $ 2,550 | $ 2,550 |
Accumulated Amortization | 437 | 258 |
Net book value | $ 2,113 | $ 2,292 |
Trade Name | Cognigen | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | None | None |
Acquisition Value | $ 500 | $ 500 |
Accumulated Amortization | 0 | 0 |
Net book value | $ 500 | $ 500 |
Trade Name | DILIsym | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | None | None |
Acquisition Value | $ 860 | $ 860 |
Accumulated Amortization | 0 | 0 |
Net book value | $ 860 | $ 860 |
Trade Name | Lixoft | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | None | None |
Acquisition Value | $ 1,550 | $ 1,550 |
Accumulated Amortization | 0 | 0 |
Net book value | $ 1,550 | $ 1,550 |
Covenants not to compete | Cognigen | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 5 years | |
Acquisition Value | $ 50 | |
Accumulated Amortization | 50 | |
Net book value | $ 0 | |
Covenants not to compete | DILIsym | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 4 years | |
Acquisition Value | $ 80 | |
Accumulated Amortization | 80 | |
Net book value | $ 0 | |
Covenants not to compete | Lixoft | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 3 years | Straight line 3 years |
Acquisition Value | $ 60 | $ 60 |
Accumulated Amortization | 48 | 28 |
Net book value | 12 | 32 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Value | 10,222 | 8,650 |
Accumulated Amortization | 2,662 | 2,186 |
Net book value | $ 7,560 | $ 6,464 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Amortization schedule) - Other Intangible Assets $ in Thousands | Aug. 31, 2022 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2023 | $ 493 |
2024 | 481 |
2025 | 481 |
2026 | 481 |
2027 | $ 434 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Fair value measurements) - Fair value, recurring - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | $ 51,567 | $ 36,984 |
Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 76,668 | 86,620 |
Acquisition-related contingent consideration obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Acquisition-related contingent consideration obligations | 0 | 3,217 |
Level 1 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 51,567 | 36,984 |
Level 1 | Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 76,668 | 86,620 |
Level 1 | Acquisition-related contingent consideration obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Acquisition-related contingent consideration obligations | 0 | |
Level 2 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 2 | Acquisition-related contingent consideration obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Acquisition-related contingent consideration obligations | 0 | |
Level 3 | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
Level 3 | Short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets, fair value disclosure | $ 0 | 0 |
Level 3 | Acquisition-related contingent consideration obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Acquisition-related contingent consideration obligations | $ 3,217 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Reconciliation of contingent consideration) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration [Abstract] | |||
Contingent consideration, beginning balance | $ 3,217 | ||
Contingent consideration payments in cash | (2,334) | ||
Contingent consideration payments in stock | (1,166) | ||
Change in value of contingent consideration | 283 | $ 486 | $ 203 |
Contingent consideration, ending balance | $ 0 | $ 3,217 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (Details - Intellectual property) - Intellectual property - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Value | $ 16,985 | $ 16,985 |
Accumulated Amortization | 7,928 | 6,516 |
Net book value | $ 9,057 | $ 10,469 |
Enslien | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 10 years | Straight line 10 years |
Acquisition Value | $ 75 | $ 75 |
Accumulated Amortization | 75 | 71 |
Net book value | $ 0 | $ 4 |
T S R L | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 10 years | Straight line 10 years |
Acquisition Value | $ 6,000 | $ 6,000 |
Accumulated Amortization | 4,975 | 4,375 |
Net book value | $ 1,025 | $ 1,625 |
D I L I | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 9 years | Straight line 9 years |
Acquisition Value | $ 2,850 | $ 2,850 |
Accumulated Amortization | 1,662 | 1,346 |
Net book value | $ 1,188 | $ 1,504 |
Entelos | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 10 years | Straight line 10 years |
Acquisition Value | $ 50 | $ 50 |
Accumulated Amortization | 20 | 15 |
Net book value | $ 30 | $ 35 |
Lixoft | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | Straight line 16 years | Straight line 16 years |
Acquisition Value | $ 8,010 | $ 8,010 |
Accumulated Amortization | 1,196 | 709 |
Net book value | $ 6,814 | $ 7,301 |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Amortization expenses) - Intellectual property $ in Thousands | Aug. 31, 2022 USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2023 | $ 1,373 |
2024 | 1,198 |
2025 | 773 |
2026 | 697 |
2027 | $ 457 |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Earnings per share) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Numerator | |||
Net income attributable to common shareholders | $ 12,483 | $ 9,782 | $ 9,332 |
Denominator | |||
Weighted-average number of common shares outstanding during the year (in shares) | 20,196 | 20,045 | 17,819 |
Dilutive effect of stock options (in shares) | 553 | 698 | 719 |
Common stock and common stock equivalents used for diluted earnings per share (in shares) | 20,749 | 20,743 | 18,538 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 717,000 | $ 201,000 | $ 30,000 |
Interest expense | 0 | (22,000) | 0 |
Change in valuation of contingent consideration | (283,000) | (486,000) | (203,000) |
Gain on sale of assets | 1,000 | 0 | 0 |
(Loss) gain on currency exchange | (231,000) | 139,000 | (45,000) |
Total other income (expense), net | $ 204,000 | $ (168,000) | $ (218,000) |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 1,280 | $ 2,250 |
Less accumulated depreciation | (648) | (412) |
Total | 632 | 1,838 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 346 | 293 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 860 | 606 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 61 | 36 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | 13 | 13 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Subtotal | $ 0 | $ 1,302 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 0.3 | $ 0.2 | $ 0.2 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Net Investment Income [Line Items] | ||
Amortized Cost | $ 76,668 | $ 86,620 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 839 | 136 |
Fair Value | 75,829 | 86,484 |
Commercial notes (due within one year) | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 72,168 | 86,620 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 839 | 136 |
Fair Value | 71,329 | $ 86,484 |
Term deposits (due within one year) | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 4,500 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 4,500 |
CONTRACTS PAYABLE (Details)
CONTRACTS PAYABLE (Details) - USD ($) | 1 Months Ended | ||||||||
Apr. 01, 2020 | Dec. 01, 2018 | Jun. 01, 2017 | May 31, 2022 | Jun. 30, 2021 | Aug. 31, 2020 | Mar. 31, 2020 | Aug. 31, 2019 | Sep. 01, 2018 | |
DILIsym | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Noncash or part noncash acquisition, settlement of liability | $ 1,000,000 | ||||||||
DILIsym | Holdback liability | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Contract payable term | 18 months | ||||||||
Earnout liability | $ 1,000,000 | ||||||||
DILIsym | Holdback Liability - Cash | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Earnout liability | $ 5,000,000 | ||||||||
DILIsym | Earnout liability | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Contract payable term | 3 years | ||||||||
Obligation to be paid year one | $ 1,600,000 | ||||||||
Obligation to be paid year two | $ 1,700,000 | ||||||||
Payment for contracts payable | $ 1,800,000 | ||||||||
Lixoft | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Obligation to be paid year one | $ 2,000,000 | ||||||||
Obligation to be paid year two | $ 3,500,000 | ||||||||
Lixoft | Holdback liability | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Contract payable term | 24 months | ||||||||
Earnout liability | $ 2,000,000 | ||||||||
Lixoft | Holdback Liability - Cash | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Earnout liability | 1,300,000 | ||||||||
Lixoft | Holdback Liability - Stock | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Earnout liability | $ 700,000 | ||||||||
Lixoft | Earnout liability | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Contract payable term | 2 years | ||||||||
Earnout liability | $ 5,500,000 | ||||||||
Obligation to be paid year one | 2,000,000 | $ 2,000,000 | |||||||
Obligation to be paid year two | $ 3,500,000 | $ 3,500,000 | |||||||
Payment for contracts payable | 3,500,000 | 2,000,000 | |||||||
Lixoft | Earnout Liability - Cash | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Payment for contracts payable | 2,300,000 | 1,300,000 | |||||||
Lixoft | Earnout Liability - Stock | |||||||||
Business Acquisition, Contingent Consideration [Line Items] | |||||||||
Payment for contracts payable | $ 1,200,000 | $ 700,000 |
CONTRACTS PAYABLE - Other Liabi
CONTRACTS PAYABLE - Other Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
ContractsPayableLineItems [Line Items] | ||
Contract with customer, liability | $ 0 | $ 4,550 |
Less: Current portion | 0 | 4,550 |
Long-term | 0 | 0 |
Holdback liability | ||
ContractsPayableLineItems [Line Items] | ||
Contract with customer, liability | 0 | 1,333 |
Earnout liability | ||
ContractsPayableLineItems [Line Items] | ||
Contract with customer, liability | $ 0 | $ 3,217 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | 12 Months Ended | |||
Aug. 31, 2022 USD ($) ft² | Aug. 31, 2021 USD ($) ft² | Aug. 31, 2020 USD ($) | Mar. 31, 2020 USD ($) | |
Line of Credit Facility [Line Items] | ||||
Operating lease, expense | $ 600,000 | $ 700,000 | $ 600,000 | |
Long-term line of credit | $ 0 | |||
Lancaster, California | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 9,255 | |||
Operating lease, expense | $ 17,000 | |||
Buffalo, New York | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 4,317 | 12,623 | ||
Operating lease, expense | $ 7,000 | $ 16,000 | ||
Annual rent increase | 0.02 | |||
Buffalo, New York | Data Center | ||||
Line of Credit Facility [Line Items] | ||||
Operating lease, expense | $ 4,000 | |||
Annual rent increase | 0.03 | |||
Durham, North Carolina | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 3,386 | |||
Operating lease, expense | $ 8,000 | |||
Annual rent increase | 0.03 | |||
Paris, France | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 2,300 | |||
Operating lease, expense | $ 5,000 | |||
Wells Fargo | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 3,500,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Operating Lease Liability Maturity Payments for Operating Leases (Details) $ in Thousands | Aug. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 511 |
2024 | 411 |
2025 | 346 |
2026 | 219 |
2027 | 34 |
Total undiscounted liabilities | 1,521 |
Less: imputed interest | (117) |
Total operating lease liabilities (including current portion) | $ 1,404 |
SHAREHOLDERS' EQUITY (Details -
SHAREHOLDERS' EQUITY (Details - Shares Outstanding) - shares shares in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock outstanding, beginning of year | 20,142 | 19,923 | 17,592 |
Common stock issued during the year | 119 | 218 | 2,331 |
Common stock outstanding, end of year | 20,260 | 20,142 | 19,923 |
SHAREHOLDERS EQUITY (Details -
SHAREHOLDERS EQUITY (Details - Dividends) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Dividends Payable [Line Items] | ||
Total Amount | $ 4,846 | $ 4,811 |
FY 2022 1st Qtr | ||
Dividends Payable [Line Items] | ||
Record Date | Oct. 25, 2021 | |
Distribution Date | Nov. 01, 2021 | |
Number of Shares Outstanding on Record Date | 20,148 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,209 | |
FY 2022 2nd Qtr | ||
Dividends Payable [Line Items] | ||
Record Date | Jan. 31, 2022 | |
Distribution Date | Feb. 07, 2022 | |
Number of Shares Outstanding on Record Date | 20,178 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,211 | |
FY 2022 3rd Qtr | ||
Dividends Payable [Line Items] | ||
Record Date | Apr. 25, 2022 | |
Distribution Date | May 02, 2022 | |
Number of Shares Outstanding on Record Date | 20,207 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,212 | |
FY 2022 4th Qtr | ||
Dividends Payable [Line Items] | ||
Record Date | Jul. 25, 2022 | |
Distribution Date | Aug. 01, 2022 | |
Number of Shares Outstanding on Record Date | 20,239 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,214 | |
FY 2021 1st Qtr | ||
Dividends Payable [Line Items] | ||
Record Date | Oct. 26, 2020 | |
Distribution Date | Nov. 02, 2020 | |
Number of Shares Outstanding on Record Date | 19,924 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,195 | |
FY 2021 2nd Qtr | ||
Dividends Payable [Line Items] | ||
Record Date | Jan. 25, 2021 | |
Distribution Date | Feb. 01, 2021 | |
Number of Shares Outstanding on Record Date | 20,010 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,201 | |
FY 2021 3rd Qtr | ||
Dividends Payable [Line Items] | ||
Record Date | Apr. 26, 2021 | |
Distribution Date | May 03, 2021 | |
Number of Shares Outstanding on Record Date | 20,115 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,207 | |
FY 20214th Qtr | ||
Dividends Payable [Line Items] | ||
Record Date | Jul. 26, 2021 | |
Distribution Date | Aug. 02, 2021 | |
Number of Shares Outstanding on Record Date | 20,139 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,208 |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Apr. 09, 2021 | Aug. 31, 2019 | Dec. 23, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, value, issued | $ 11 | $ 10 | ||||
Common stock and additional paid in capital | $ 138,500 | $ 133,400 | ||||
Non Management Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued as compensation (in shares) | 7,120,000 | 5,620,000 | 7,205,000 | |||
Shares issued, value, as compensation | $ 400 | $ 300 | $ 300 | |||
Equity Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award outstanding, quantity (in shares) | 1,245,000 | 1,184,000 | 1,224,000 | 1,163,000 | ||
Weighted average remaining contractual life | 6 years 1 month 20 days | |||||
Fair value of non-vested stock options | $ 9,100 | |||||
Nonvested award, cost not yet recognized, period for recognition | 3 years 3 months 7 days | |||||
Equity 2017 Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, capital shares reserved for future issuance (in shares) | 1,000,000 | |||||
Equity 2021 Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock, capital shares reserved for future issuance (in shares) | 1,300,000 |
SHAREHOLDERS EQUITY (Details _2
SHAREHOLDERS EQUITY (Details - Option activity) - $ / shares shares in Thousands | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Weighted-Average Exercise Price Per Share | ||||
Weighted-average exercise price per share, granted (in usd per share) | $ 42.13 | $ 57.60 | ||
Equity Option | ||||
Number of Options | ||||
Option outstanding, beginning balance (in shares) | 1,184 | 1,224 | 1,163 | |
Number of options, granted (in shares) | 255 | 226 | 223 | |
Number of options, exercised (in shares) | (104) | (204) | (121) | |
Number of options, canceled/forfeited (in shares) | (90) | (62) | (41) | |
Awards Outstanding, ending balance (in shares) | 1,245 | 1,184 | 1,224 | 1,163 |
Number of options, vested and exercisable (in shares) | 711 | 619 | 596 | |
Number of options, vested and expected to vest (in shares) | 1,236 | 1,173 | 1,194 | |
Weighted-Average Exercise Price Per Share | ||||
Outstanding weighted average exercise price (in usd per share) | $ 25.63 | $ 17.76 | $ 12.63 | |
Weighted-average exercise price per share, granted (in usd per share) | 42.13 | 57.60 | 39.23 | |
Weighted average exercise price per share, exercised (in usd per share) | 16.15 | 12.53 | 9.29 | |
Weighted-average exercise price per share, canceled/forfeited (in usd per share) | 42.30 | 29.83 | 14.19 | |
Outstanding weighted average exercise price (in usd per share) | 28.61 | 25.63 | 17.76 | $ 12.63 |
Vested and exercisable, end of period (in usd per share) | 17.65 | 13.36 | 10.69 | |
Vested and expected to Vest, end of period (in usd per share) | $ 28.51 | $ 25.69 | $ 17.75 | |
Weighted-average remaining contractual life, outstanding | 6 years 1 month 20 days | 6 years 5 months 19 days | 6 years 9 months 14 days | 7 years 1 month 17 days |
Weighted-average remaining contractual life, vested and exercisable | 4 years 5 months 19 days | 4 years 11 months 12 days | 5 years 7 months 2 days | |
Weighted-average remaining contractual life, vested and expected to vest | 6 years 1 month 13 days | 6 years 5 months 19 days | 6 years 9 months 7 days |
SHAREHOLDERS EQUITY (Details _3
SHAREHOLDERS EQUITY (Details - Intrinsic Value) - Equity Option - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic Value of Options Outstanding | $ 39,208 | $ 25,705 | $ 51,273 |
Intrinsic Value of Options Exercisable | 30,187 | 19,373 | 29,151 |
Intrinsic Value of Options Exercised | $ 3,572 | $ 11,554 | $ 4,086 |
SHAREHOLDERS EQUITY (Details _4
SHAREHOLDERS EQUITY (Details - Fair value of options) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Aug. 31, 2022 | Aug. 31, 2021 | |
Equity [Abstract] | ||
Estimated fair value of awards granted | $ 4,597 | $ 5,092 |
Unvested Forfeiture Rate | 1.04% | 0% |
Weighted-average grant price | $ 42.13 | $ 57.60 |
Weighted-average market price | $ 42.13 | $ 57.60 |
Weighted-average volatility | 42.80% | 40.49% |
Weighted-average risk-free rate | 1.74% | 0.64% |
Weighted-average dividend yield | 0.58% | 0.42% |
Weighted-average expected life | 6 years 7 months 2 days | 6 years 7 months 17 days |
SHAREHOLDERS EQUITY (Details _5
SHAREHOLDERS EQUITY (Details - Options outstanding and exercisable) - Equity Option - $ / shares shares in Thousands | 12 Months Ended | |||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award outstanding, quantity (in shares) | 1,245 | 1,184 | 1,224 | 1,163 |
Awards outstanding, weighted-average remaining contractual life | 6 years 1 month 20 days | |||
Awards outstanding, weighted average exercise price (in usd per share) | $ 28.61 | $ 25.63 | $ 17.76 | $ 12.63 |
Awards exercisable, quantity (in shares) | 711 | 619 | 596 | |
Awards exercisable, weighted-average remaining contractual life | 4 years 5 months 19 days | |||
Awards exercisable, weighted average exercise price (in usd per share) | $ 17.65 | $ 13.36 | $ 10.69 | |
$6.85 to $9.77 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price range, lower range limit (in usd per share) | 6.85 | |||
Exercise price range, upper range limit (in usd per share) | $ 9.77 | |||
Award outstanding, quantity (in shares) | 286 | |||
Awards outstanding, weighted-average remaining contractual life | 2 years 9 months | |||
Awards outstanding, weighted average exercise price (in usd per share) | $ 8.29 | |||
Awards exercisable, quantity (in shares) | 286 | |||
Awards exercisable, weighted-average remaining contractual life | 2 years 9 months | |||
Awards exercisable, weighted average exercise price (in usd per share) | $ 8.29 | |||
$9.78 to $18.76 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price range, lower range limit (in usd per share) | 9.78 | |||
Exercise price range, upper range limit (in usd per share) | $ 18.76 | |||
Award outstanding, quantity (in shares) | 200 | |||
Awards outstanding, weighted-average remaining contractual life | 4 years 3 months 25 days | |||
Awards outstanding, weighted average exercise price (in usd per share) | $ 10.37 | |||
Awards exercisable, quantity (in shares) | 200 | |||
Awards exercisable, weighted-average remaining contractual life | 4 years 3 months 25 days | |||
Awards exercisable, weighted average exercise price (in usd per share) | $ 10.37 | |||
$18.77 to $33.40 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price range, lower range limit (in usd per share) | 18.77 | |||
Exercise price range, upper range limit (in usd per share) | $ 33.40 | |||
Award outstanding, quantity (in shares) | 241 | |||
Awards outstanding, weighted-average remaining contractual life | 6 years 4 months 17 days | |||
Awards outstanding, weighted average exercise price (in usd per share) | $ 25.21 | |||
Awards exercisable, quantity (in shares) | 121 | |||
Awards exercisable, weighted-average remaining contractual life | 5 years 11 months 19 days | |||
Awards exercisable, weighted average exercise price (in usd per share) | $ 24.16 | |||
$33.41 to $47.63 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price range, lower range limit (in usd per share) | 33.41 | |||
Exercise price range, upper range limit (in usd per share) | $ 47.63 | |||
Award outstanding, quantity (in shares) | 229 | |||
Awards outstanding, weighted-average remaining contractual life | 8 years 7 months 20 days | |||
Awards outstanding, weighted average exercise price (in usd per share) | $ 38.47 | |||
Awards exercisable, quantity (in shares) | 41 | |||
Awards exercisable, weighted-average remaining contractual life | 7 years 3 days | |||
Awards exercisable, weighted average exercise price (in usd per share) | $ 35.41 | |||
$47.64 to $66.14 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price range, lower range limit (in usd per share) | 47.64 | |||
Exercise price range, upper range limit (in usd per share) | $ 66.14 | |||
Award outstanding, quantity (in shares) | 289 | |||
Awards outstanding, weighted-average remaining contractual life | 8 years 6 months 21 days | |||
Awards outstanding, weighted average exercise price (in usd per share) | $ 56.30 | |||
Awards exercisable, quantity (in shares) | 63 | |||
Awards exercisable, weighted-average remaining contractual life | 8 years 1 month 20 days | |||
Awards exercisable, weighted average exercise price (in usd per share) | $ 58.92 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income tax provision) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Current | |||
Federal | $ 2,518 | $ 1,315 | $ 2,098 |
State | 611 | 450 | 478 |
Foreign | (228) | 166 | 39 |
Total current tax expense | 2,901 | 1,931 | 2,615 |
Deferred | |||
Federal | (4) | (379) | (428) |
State | (265) | (249) | (132) |
Total deferred federal and state | (269) | (628) | (560) |
Total | $ 2,632 | $ 1,303 | $ 2,055 |
INCOME TAXES (Details - Reconci
INCOME TAXES (Details - Reconciliation) | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income tax computed at federal statutory tax rate | 21% | 21% | 21% |
State taxes, net of federal benefit | 3.20% | 2% | 4.10% |
Meals & entertainment | 0% | 0% | 0.10% |
Stock-based compensation | 0.60% | (6.80%) | (1.20%) |
Other permanent differences | 0.40% | (0.30%) | (0.30%) |
Research and development credit | (2.20%) | (1.60%) | (2.80%) |
Foreign-tax-related differences | (3.20%) | (2.60%) | (1.40%) |
Research and development credit | 0% | 0.20% | 0.30% |
Change in prior year estimated taxes | (2.40%) | (0.10%) | (1.80%) |
Total | 17.40% | 11.80% | 18% |
INCOME TAXES (Details - Deferre
INCOME TAXES (Details - Deferred taxes) - USD ($) $ in Thousands | Aug. 31, 2022 | Aug. 31, 2021 |
Deferred tax assets: | ||
Accrued compensation | $ 563 | $ 586 |
Deferred revenue | 241 | 102 |
Capitalized merger costs | 703 | 703 |
Intellectual property | 7 | 7 |
Research and development credits | 347 | 66 |
Foreign tax credits | 101 | 0 |
State taxes | 128 | 72 |
Allowance for doubtful accounts | 3 | 20 |
State tax deferred | 28 | 80 |
Total deferred tax assets | 2,121 | 1,636 |
Less: Valuation allowance | 0 | 0 |
Deferred tax asset | 2,121 | 1,636 |
Deferred tax asset | ||
Property and equipment | (109) | (83) |
State tax deferred | (30) | (26) |
Intellectual property | (1,139) | (1,456) |
Capitalized computer software development costs | (2,299) | (1,797) |
Total deferred tax liabilities | (3,577) | (3,362) |
Net deferred tax liabilities | $ (1,456) | $ (1,726) |
CONCENTRATIONS AND UNCERTAINT_2
CONCENTRATIONS AND UNCERTAINTIES (Details Narrative) - Customer concentration risk | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Sales | International Sales | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 30% | 31% | 29% |
Sales | Customer 1 | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 5% | 11% | 9% |
Sales | Customer 2 | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 3% | 4% | 7% |
Sales | Customer 3 | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 3% | 7% | |
Accounts Receivable | Minimum | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 4% | 5% | |
Accounts Receivable | Maximum | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 8% | 16% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended |
Aug. 31, 2022 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT REPORTING (Details - Bu
SEGMENT REPORTING (Details - Business unit segment and consolidated results) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Revenue from External Customer [Line Items] | |||
Total revenues | $ 53,906 | $ 46,466 | $ 41,589 |
Total cost of revenues | 10,822 | 10,600 | 10,649 |
Gross profit | $ 43,084 | $ 35,866 | $ 30,940 |
Gross margin | 80% | 77% | 74% |
Software | |||
Revenue from External Customer [Line Items] | |||
Total revenues | $ 32,642 | $ 27,670 | $ 21,587 |
Total cost of revenues | 3,060 | 3,235 | 2,883 |
Gross profit | $ 29,582 | $ 24,435 | $ 18,704 |
Gross margin | 91% | 88% | 87% |
Services | |||
Revenue from External Customer [Line Items] | |||
Total revenues | $ 21,264 | $ 18,796 | $ 20,002 |
Total cost of revenues | 7,762 | 7,365 | 7,766 |
Gross profit | $ 13,502 | $ 11,431 | $ 12,236 |
Gross margin | 63% | 61% | 61% |
Revenue Benchmark | Product Concentration Risk | |||
Revenue from External Customer [Line Items] | |||
Concentration percentage | 100% | 100% | 100% |
Revenue Benchmark | Product Concentration Risk | Software | |||
Revenue from External Customer [Line Items] | |||
Concentration percentage | 61% | 60% | 52% |
Revenue Benchmark | Product Concentration Risk | Services | |||
Revenue from External Customer [Line Items] | |||
Concentration percentage | 39% | 40% | 48% |
SEGMENT REPORTING (Details - Se
SEGMENT REPORTING (Details - Segment reporting) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 53,906 | $ 46,466 | $ 41,589 |
Operating Income (Loss) | 14,911 | 11,253 | 11,605 |
Assets | 188,382 | 179,978 | |
Goodwill | $ 12,921 | $ 12,921 | $ 12,921 |
Product Concentration Risk | Revenue Benchmark | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 100% | 100% | 100% |
Americas | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 37,681 | $ 32,549 | $ 29,674 |
Americas | Product Concentration Risk | Revenue Benchmark | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 70% | 70% | 71% |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 10,388 | $ 7,906 | $ 5,827 |
EMEA | Product Concentration Risk | Revenue Benchmark | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 19% | 17% | 14% |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 5,837 | $ 6,011 | $ 6,088 |
Asia Pacific | Product Concentration Risk | Revenue Benchmark | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 11% | 13% | 15% |
SEGMENT REPORTING (Details - Ge
SEGMENT REPORTING (Details - Geographical revenues) - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 53,906 | $ 46,466 | $ 41,589 |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 37,681 | 32,549 | 29,674 |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | 10,388 | 7,906 | 5,827 |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total revenues | $ 5,837 | $ 6,011 | $ 6,088 |
EMPLOYEE BENEFIT PLAN (Details
EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Defined contribution plan, employer match | 100% | ||
Defined contribution plan, employer match percentage | 4% | ||
Defined contribution plan, employer contribution | $ 0.6 | $ 0.5 | $ 0.5 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions (Details) - Lixoft - USD ($) | 1 Months Ended | ||||
Apr. 01, 2020 | Mar. 31, 2020 | May 31, 2022 | Apr. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | |||||
Total consideration | $ 18,593,000 | $ 10,800,000 | |||
Payments to acquire businesses, gross | $ 9,500,000 | $ 1,300,000 | |||
Business acquisition, equity interest Issued or issuable, number of shares (in shares) | 111,682 | ||||
Business combination, consideration transferred, equity interests issued and issuable | $ 3,700,000 | 700,000 | |||
Business acquisition, excess working capital, paid | 3,500,000 | ||||
Obligation to be paid year one | 2,000,000 | ||||
Obligation to be paid year two | 3,500,000 | ||||
Maximum | |||||
Business Acquisition [Line Items] | |||||
Total consideration | 16,500,000 | ||||
Holdback liability | |||||
Business Acquisition [Line Items] | |||||
Business combination, held in escrow, value | $ 2,000,000 | ||||
Holdback Liability - Cash | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire businesses, gross | $ 2,300,000 | ||||
Business combination consideration transferred, holdback, value | 2,000,000 | ||||
Business combination, held in escrow, value | 1,300,000 | ||||
Holdback Liability - Stock | |||||
Business Acquisition [Line Items] | |||||
Business combination, held in escrow, value of shares | $ 700,000 | ||||
Business combination, held in escrow, shares (in shares) | 20,326 | ||||
Earnout liability | |||||
Business Acquisition [Line Items] | |||||
Total consideration | $ 5,500,000 | ||||
Business acquisition, equity interest Issued or issuable, number of shares (in shares) | 23,825 | ||||
Business combination, consideration transferred, equity interests issued and issuable | $ 1,200,000 | ||||
Obligation to be paid year one | $ 2,000,000 | $ 2,000,000 | |||
Obligation to be paid year two | $ 3,500,000 | $ 3,500,000 |
ACQUISITION (Details - purchase
ACQUISITION (Details - purchase price allocation) - USD ($) | 12 Months Ended | |||
Apr. 01, 2020 | Mar. 31, 2020 | Aug. 31, 2022 | Aug. 31, 2021 | |
Business Acquisition [Line Items] | ||||
Estimated goodwill acquired | $ 0 | $ 0 | ||
Lixoft | ||||
Business Acquisition [Line Items] | ||||
Assets acquired, including cash of $3,799 and accounts receivable of $629 | $ 5,007,000 | |||
Developed technologies acquired | 8,010,000 | |||
Estimated value of intangible assets acquired (customer lists, trade name etc.) | 4,160,000 | |||
Estimated goodwill acquired | 2,534,000 | $ 0 | $ 0 | |
Liabilities assumed | (1,118,000) | |||
Total consideration | 18,593,000 | $ 10,800,000 | ||
Cash received in acquisition | 3,799 | |||
Assets acquired | $ 629 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event $ / shares in Units, $ in Millions | Oct. 20, 2022 USD ($) $ / shares |
Subsequent Event [Line Items] | |
Common stock, dividends, per share, declared (in usd per share) | $ / shares | $ 0.06 |
Dividends, common stock, cash | $ | $ 1.2 |