Cover
Cover - shares | 6 Months Ended | |
Feb. 28, 2022 | Apr. 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Feb. 28, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --08-31 | |
Entity File Number | 001-32046 | |
Entity Registrant Name | Simulations Plus, Inc. | |
Entity Central Index Key | 0001023459 | |
Entity Tax Identification Number | 95-4595609 | |
Entity Incorporation, State or Country Code | CA | |
Entity Address, Address Line One | 42505 10th 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 $0.001 per share | |
Trading Symbol | SLP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,206,550 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 60,373 | $ 36,984 |
Accounts receivable, net of allowance for doubtful accounts of $12 and $78 | 15,039 | 9,851 |
Prepaid income taxes | 449 | 1,012 |
Prepaid expenses and other current assets | 3,573 | 4,846 |
Short-term investments | 64,192 | 86,620 |
Total current assets | 143,626 | 139,313 |
Long-term assets | ||
Capitalized computer software development costs, net of accumulated amortization of $15,062 and $14,438 | 8,529 | 7,646 |
Property and equipment, net | 634 | 1,838 |
Operating lease right-of-use assets | 1,653 | 1,276 |
Intellectual property, net of accumulated amortization of $7,231 and $6,516 | 9,754 | 10,469 |
Other intangible assets, net of accumulated amortization of $2,475 and $2,186 | 7,877 | 6,464 |
Goodwill | 12,921 | 12,921 |
Other assets | 50 | 51 |
Total assets | 185,044 | 179,978 |
Current liabilities | ||
Accounts payable | 414 | 387 |
Accrued payroll and other expenses | 2,220 | 5,604 |
Contracts payable - current portion | 4,793 | 4,550 |
Operating lease liability - current portion | 336 | 382 |
Deferred revenue | 1,241 | 651 |
Total current liabilities | 9,004 | 11,574 |
Long-term liabilities | ||
Deferred income taxes, net | 2,150 | 1,726 |
Operating lease liability | 1,314 | 896 |
Total liabilities | 12,468 | 14,196 |
Commitments and contingencies | ||
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, 20,181,784 and 20,141,521 shares issued and outstanding | 135,472 | 133,418 |
Retained earnings | 37,422 | 32,407 |
Accumulated other comprehensive loss | (318) | (43) |
Total shareholders' equity | 172,576 | 165,782 |
Total liabilities and shareholders' equity | $ 185,044 | $ 179,978 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Allowance for doubtful accounts | $ 12 | $ 78 |
Accumulated amortization of computer software development costs | $ 15,062 | $ 14,438 |
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 20,181,784 | 20,141,521 |
Common Stock, Shares, Outstanding | 20,181,784 | 20,141,521 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization on intangible assets | $ 7,231 | $ 6,516 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization on intangible assets | $ 2,475 | $ 2,186 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenues | ||||
Total revenues | $ 14,796 | $ 13,147 | $ 27,213 | $ 23,848 |
Cost of revenues | ||||
Total cost of revenues | 2,830 | 2,911 | 5,586 | 5,344 |
Gross profit | 11,966 | 10,236 | 21,627 | 18,504 |
Operating expenses | ||||
Research and development | 902 | 1,292 | 1,784 | 2,101 |
Selling, general, and administrative | 5,584 | 5,458 | 10,572 | 9,866 |
Total operating expenses | 6,486 | 6,750 | 12,356 | 11,967 |
Income from operations | 5,480 | 3,486 | 9,271 | 6,537 |
Other income (expense), net | 53 | (63) | 118 | (118) |
Income before income taxes | 5,533 | 3,423 | 9,389 | 6,419 |
Provision for income taxes | (1,124) | (212) | (1,954) | (729) |
Net income | $ 4,409 | $ 3,211 | $ 7,435 | $ 5,690 |
Earnings per share | ||||
Basic | $ 0.22 | $ 0.16 | $ 0.37 | $ 0.28 |
Diluted | $ 0.21 | $ 0.15 | $ 0.36 | $ 0.27 |
Weighted-average common shares outstanding | ||||
Basic | 20,177 | 20,006 | 20,164 | 19,968 |
Diluted | 20,745 | 20,842 | 20,738 | 20,786 |
Other Comprehensive income, net of tax | ||||
Foreign currency translation adjustments | $ (38) | $ (4) | $ (275) | $ (4) |
Comprehensive Income | 4,371 | 3,207 | 7,160 | 5,686 |
Software [Member] | ||||
Revenues | ||||
Total revenues | 9,758 | 7,827 | 17,120 | 13,975 |
Cost of revenues | ||||
Total cost of revenues | 780 | 836 | 1,515 | 1,647 |
Gross profit | 8,978 | 6,991 | 15,605 | 12,328 |
Services [Member] | ||||
Revenues | ||||
Total revenues | 5,038 | 5,320 | 10,093 | 9,873 |
Cost of revenues | ||||
Total cost of revenues | 2,050 | 2,075 | 4,071 | 3,697 |
Gross profit | $ 2,988 | $ 3,245 | $ 6,022 | $ 6,176 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock And Additional Paid In Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance, beginning of period at Aug. 31, 2020 | $ 128,541 | $ 27,436 | $ 58 | |
Exercise of stock options | 836 | |||
Stock-based compensation | 1,166 | |||
Shares issued to Directors for services | 170 | |||
Declaration of dividend | (2,396) | |||
Net income | 5,690 | $ 5,690 | ||
Other comprehensive income | (4) | |||
Common dividends declared per common share | $ 0.12 | |||
Balance, end of period at Feb. 28, 2021 | 130,713 | 30,730 | 54 | $ 161,497 |
Balance, beginning of period at Nov. 30, 2020 | 129,253 | 28,720 | 58 | |
Exercise of stock options | 656 | |||
Stock-based compensation | 717 | |||
Shares issued to Directors for services | 87 | |||
Declaration of dividend | (1,201) | |||
Net income | 3,211 | $ 3,211 | ||
Other comprehensive income | (4) | |||
Common dividends declared per common share | $ 0.06 | |||
Balance, end of period at Feb. 28, 2021 | 130,713 | 30,730 | 54 | $ 161,497 |
Balance, beginning of period at Aug. 31, 2021 | 133,418 | 32,407 | (43) | 165,782 |
Exercise of stock options | 541 | |||
Stock-based compensation | 1,337 | |||
Shares issued to Directors for services | 176 | |||
Declaration of dividend | (2,420) | |||
Net income | 7,435 | $ 7,435 | ||
Other comprehensive income | (275) | |||
Common dividends declared per common share | $ 0.12 | |||
Balance, end of period at Feb. 28, 2022 | 135,472 | 37,422 | (318) | $ 172,576 |
Balance, beginning of period at Nov. 30, 2021 | 134,512 | 34,224 | (280) | |
Exercise of stock options | 169 | |||
Stock-based compensation | 703 | |||
Shares issued to Directors for services | 88 | |||
Declaration of dividend | (1,211) | |||
Net income | 4,409 | $ 4,409 | ||
Other comprehensive income | (38) | |||
Common dividends declared per common share | $ 0.06 | |||
Balance, end of period at Feb. 28, 2022 | $ 135,472 | $ 37,422 | $ (318) | $ 172,576 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Cash flows from operating activities | ||
Net income | $ 7,435 | $ 5,690 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 1,840 | 1,776 |
Change in value of contingent consideration | 243 | 243 |
Amortization of investment premiums | 1,122 | 1,276 |
Stock-based compensation | 1,513 | 1,336 |
Deferred income taxes | 424 | 6 |
Currency translation adjustments | (275) | (4) |
Increase (decrease) in | ||
Accounts receivable | (5,188) | (3,884) |
Prepaid income taxes | 563 | (280) |
Prepaid expenses and other assets | 1,274 | (556) |
Accounts payable | 22 | 51 |
Accrued payroll and other expenses | (3,384) | 640 |
Deferred revenue | 590 | 340 |
Net cash provided by operating activities | 6,179 | 6,634 |
Cash flows provided by (used in) investing activities | ||
Purchases of property and equipment | (710) | (583) |
Purchases of short-term investments | (25,504) | (40,789) |
Proceeds from sale of short-term investments | 46,810 | 30,950 |
Capitalized computer software development costs | (1,507) | (1,474) |
Net cash provided by (used in) investing activities | 19,089 | (11,896) |
Cash flows used in financing activities | ||
Payment of dividends | (2,420) | (2,396) |
Proceeds from the exercise of stock options | 541 | 836 |
Net cash used in financing activities | (1,879) | (1,560) |
Net increase (decrease) in cash and cash equivalents | 23,389 | (6,822) |
Cash and cash equivalents, beginning of year | 36,984 | 49,207 |
Cash and cash equivalents, end of period | 60,373 | 42,385 |
Supplemental disclosures of cash flow information | ||
Income taxes paid | 921 | 878 |
Non-cash investing and financing activities | ||
Right of use assets capitalized | $ 624 | $ 905 |
GENERAL
GENERAL | 6 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
GENERAL | NOTE 1: GENERAL This Quarterly Report on Form 10-Q for the quarter ended February 28, 2022 should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended August 31, 2021, filed with the Securities and Exchange Commission (“SEC”) on October 27, 2021. As contemplated by the SEC under Article 8 of Regulation S-X, the accompanying consolidated financial statements and footnotes have been condensed, and therefore, do not contain all disclosures required by generally accepted accounting principles. The interim financial data are unaudited; however, in the opinion of Simulations Plus, Inc., the interim data include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. Results for interim periods are not necessarily indicative of those to be expected for the full year. Organization Simulations Plus, Inc. (“Simulations Plus”) 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 (Simulations Plus together with its subsidiaries, collectively, the “Company,” “we,” “us,” “our”). Effective September 1, 2021, the Company merged Cognigen 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 (Simulation Plus’ 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 artificial intelligence (“AI”) and 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. They are also provided to academic agencies for use in the conduct of industry-based research and to regulatory agencies for product approval. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include the accounts of Simulations Plus and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated upon 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. Significant accounting policies for us include revenue recognition, accounting for capitalized computer software development costs, valuation of stock options, and accounting for income taxes. 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 Accounting Standards Codification Topic 606 (ASC Topic 606), “ Revenue from Contracts with Customers” 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 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 February 28, 2022, remaining performance obligations were approximately $ 7.3 Disaggregation of Revenue The components of disaggregation of revenue for the three and six months ended February 28, 2022 and 2021 were as follows: Schedule of disaggregation of revenue (in thousands) Three Months Ended Six Months Ended 2022 2021 2022 2021 Software licenses: Point in time $ 9,493 $ 7,536 $ 16,600 $ 13,472 Over time 265 291 520 503 Consulting services: Over time 5,038 5,320 10,093 9,873 Total revenue $ 14,796 $ 13,147 $ 27,213 $ 23,848 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 condensed 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 received consideration from a customer. We refer to contract liabilities as deferred revenue on our condensed consolidated balance sheets. Contract asset balances as of February 28, 2022 and August 31, 2021 were $ 2.1 3.2 During the three and six months ended February 28, 2022, we recognized $ 187 540 104 400 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 condensed 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 Allowances 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 Financial Accounting Standards Board (“FASB”) ASC 320, Investments – Debt and Equity Securities. 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 quarter ended February 28, 2022, all of our investments were classified as held-to-maturity. Capitalized Computer Software Development Costs Software development costs are capitalized in accordance with FASB ASC 985-20, Costs of Software to Be Sold, Leased, or Marketed 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 $ 328 365 624 690 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, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows: Property and Equipment estimated useful lives Equipment 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease Internal-use Software We have a service contract related to the implementation of internally used software. In accordance with ASC 350-40 “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” The amortization is classified as selling, general, and administrative expenses on the condensed consolidated statement of operations, and maintenance and minor upgrades are also charged to selling, general, and administrative expense as incurred. Leases Supplemental information related to operating leases was as follows as of February 28, 2022: Balance sheet information related to operating leases (in thousands) Right-of-use assets $ 1,653 Lease liabilities, current $ 336 Lease liabilities, long-term $ 1,314 Operating lease costs $ 256 Weighted average remaining lease term 3.55 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. 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. Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill is not amortized, instead it is tested for impairment annually or when events or circumstances change that would indicate that goodwill 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 is tested for impairment at the reporting unit level, which is one level below or the same as an operating segment. As of February 28, 2022, we determined that we have four reporting units: Simulations Plus, Cognigen, DILIsym, and Lixoft. When testing goodwill for impairment, we first perform a qualitative assessment to determine whether it is necessary to perform step one of a two-step annual goodwill impairment test for each reporting unit. We are required to perform step one only if it concludes that it is more likely than not that a reporting unit's fair value is less than its carrying value. Should this be the case, the first step of the two-step process is to identify whether a potential impairment exists by comparing the estimated fair values of our reporting units with their respective book values, including goodwill. If the estimated fair value of the reporting unit exceeds book value, goodwill is considered not to be impaired, and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss, if any. The amount of the impairment loss is the excess of the carrying amount of the goodwill over its implied fair value. The estimate of implied fair value of goodwill is primarily based on an estimate of the discounted cash flows expected to result from that reporting unit but may require valuations of certain internally generated and unrecognized intangible assets such as our software, technology, patents, and trademarks. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. As of February 28, 2022, the entire balance of goodwill was attributed to three of our reporting units: Cognigen, DILIsym, and Lixoft. 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. We did no Reconciliation of Goodwill as of February 28, 2022: Schedule of reconciliation of goodwill (in thousands) Cognigen DILIsym Lixoft Total Balance, August 31, 2021 $ 4,789 $ 5,598 $ 2,534 $ 12,921 Addition – – – – Impairments – – – – Balance, February 28, 2022 $ 4,789 $ 5,598 $ 2,534 $ 12,921 Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories, as defined by the standard are as follows: Level Input: Input Definition: Level I Inputs 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, accrued payroll and other expenses, and the amounts approximate fair value due to their short maturities. The following table summarizes fair value measurements at February 28, 2022 and August 31, 2021 for assets and liabilities measured at fair value on a recurring basis: Schedule of fair value measurements February 28, 2022: (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 60,373 $ – $ – $ 60,373 Short-term investments $ 63,922 $ – $ – $ 63,922 Acquisition-related contingent consideration obligations $ – $ – $ 3,460 $ 3,460 August 31, 2021: (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 36,984 $ – $ – $ 36,984 Short-term investments $ 86,484 $ – $ – $ 86,484 Acquisition-related contingent consideration obligations $ – $ – $ 3,217 $ 3,217 As of February 28, 2022 and 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 is determined using Level 3 inputs. The fair value of contingent consideration obligations is based on a discounted cash flow model using a probability-weighted income approach. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense we record in any given period. The liability is recorded as contracts payable on the condensed consolidated balance sheet, and changes in the value of the contingent consideration obligations are recorded other income (expense), net in our Condensed Consolidated Statement of Operations and Comprehensive Income. The following is a reconciliation of contingent consideration value: Reconciliation of contingent consideration (in thousands) Value at August 31, 2021 $ 3,217 Contingent consideration payments – Change in value of contingent consideration 243 Value at February 28, 2022 $ 3,460 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 740-10, “Income Taxes” 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 The following table summarizes intellectual property as of February 28, 2022: Schedule of intellectual property (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 4,675 1,325 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,504 1,346 Intellectual rights of Entelos Holding Corp. Straight line 10 years 50 18 32 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 959 7,051 $ 16,985 $ 7,231 $ 9,754 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 Corp. 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 Amortization expense for intellectual property agreements for the three months ended February 28, 2022 and 2021 was $ 358 357 715 714 Other intangible assets The following table summarizes our other intangible assets as of February 28, 2022: Schedule of other intangible assets (in thousands) Amortization Acquisition Accumulated Net Book Simulations Plus ERP Straight line 15 years $ 1,702 $ 24 $ 1,678 Cognigen Customer relationships Straight line 8 years 1,100 1,031 69 Trade name None 500 – 500 Covenants not to compete Straight line 5 years 50 50 – DILIsym Customer relationships Straight line 10 years 1,900 903 997 Trade name None 860 – 860 Covenants not to compete Straight line 4 years 80 80 – Lixoft Customer relationships Straight line 14 years 2,550 349 2,201 Trade name None 1,550 – 1,550 Covenants not to compete Straight line 3 years 60 38 22 $ 10,352 $ 2,475 $ 7,877 The following table summarizes our 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 Amortization expense for other intangible assets for the three months ended February 28, 2022 and 2021 was $ 156 138 289 275 Earnings per Share We report earnings per share in accordance with FASB ASC 260-10. 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 three months ended February 28, 2022 and 2021 were as follows: (in thousands) Three Months Ended Six Months Ended 2022 2021 2021 2020 Numerator: Net income attributable to common shareholders $ 4,409 $ 3,211 $ 7,435 $ 5,690 Denominator: Weighted-average number of common shares outstanding during the period 20,177 20,006 20,164 19,968 Dilutive effect of stock options 568 836 574 818 Common stock and common stock equivalents used for diluted earnings per share 20,745 20,842 20,738 20,786 Stock-Based Compensation Compensation costs related to stock options are determined in accordance with FASB ASC 718-10, “Compensation-Stock Compensation” 703 717 1.3 1.2 Impairment of Long-lived Assets We account for the impairment and disposition of long-lived assets in accordance with ASC 350, “Intangibles – Goodwill and Other “Property and Equipment” Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 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 In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), |
OTHER INCOME (EXPENSE), NET
OTHER INCOME (EXPENSE), NET | 6 Months Ended |
Feb. 28, 2022 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE), NET | NOTE 3: OTHER INCOME (EXPENSE), NET The components of other income (expense), net for the three and six months ended February 28, 2022 and 2021 were as follows: Schedule of other income and expense (in thousands) Three Months Ended Six Months Ended 2022 2021 2022 2021 Interest income $ 75 $ 58 $ 139 $ 119 Interest expense – (22 ) – (22 ) Change in valuation of contingent consideration (122 ) (122 ) (243 ) (243 ) Gain on sale of assets – 1 – Gain (loss) on currency exchange 100 23 221 28 Total other income (expense), net $ 53 $ (63 ) $ 118 $ (118 ) |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Feb. 28, 2022 | |
Investments, All Other Investments [Abstract] | |
INVESTMENTS | NOTE 4: INVESTMENTS We invest a portion of our excess cash balances in short-term debt securities within the parameters of our Investment Policy and Guidelines. Investments as of February 28, 2022, consisted of corporate bonds with maturities remaining of less than twelve months. We may also invest excess cash balances in certificates of deposit, money market accounts, government-sponsored enterprise securities, corporate bonds, and/or commercial paper. We account for investments in accordance with FASB ASC 320 , Investments – Debt and Equity Securities The following tables summarize our short-term investments as of February 28, 2022 and August 31, 2021: February 28, 2022 Schedule of short term investments (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 64,192 $ – $ (270 ) $ 63,922 Total $ 64,192 $ – $ (270 ) $ 63,922 August 31, 2021 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 86,620 $ – $ (136 ) $ 86,484 Total $ 86,620 $ – $ (136 ) $ 86,484 |
CONTRACTS PAYABLE
CONTRACTS PAYABLE | 6 Months Ended |
Feb. 28, 2022 | |
Other Liabilities Disclosure [Abstract] | |
CONTRACTS PAYABLE | NOTE 5: CONTRACTS PAYABLE Lixoft Acquisition Liabilities On April 1, 2020, we acquired Lixoft. The agreement provided for a 24-month, $2.0 million holdback provision against certain representations and warrantees, comprised of $1.3 million of cash and shares of common stock valued at $667 thousand issued at the date of the agreement. In addition, based on a revenue-growth formula for the two years subsequent to April 1, 2020, the agreement calls for earnout payments of up to $5.5 million (two-thirds cash and one-third newly issued, unregistered shares of our common stock). The former shareholders of Lixoft can earn up to $2.0 million the first year and $3.5 million in year two. In June 2021, $ 2.0 As of February 28, 2022 and August 31, 2021, the following liabilities have been recorded: Schedule of liabilities (in thousands) February 28, August 31, Holdback liability $ 1,333 $ 1,333 Earnout liability 3,460 3,217 Sub total $ 4,793 $ 4,550 Less: current portion 4,793 4,550 Long-term portion $ – $ – |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6: COMMITMENTS AND CONTINGENCIES Leases We lease approximately 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 approximately $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 approximately 4,317 square feet of office space in Buffalo, New York. The lease term extends to November 30, 2026, and the base rent is approximately $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 approximately 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 approximately $16 thousand per month. We lease approximately 3,386 square feet of office space in Durham, North Carolina. The lease term extends to September 30, 2023, and the base rent is approximately $8 thousand per month with an annual 3% increase. We lease approximately 2,300 square feet of office space in Paris, France. The lease term extends to November 2024 and the rent is approximately $5 thousand per month and adjusted each December based on a consumer price index. Rent expense, including common area maintenance fees for the three months ended February 28 2022 and 2021 was $ 120 147 276 332 The following table presents maturities of operating lease liabilities on an undiscounted basis as of February 28, 2022: Future minimum lease payments (in thousands) Years Ending February 28, 2023 $ 509 2024 465 2025 379 2026 319 2027 101 Total undiscounted liabilities 1,773 Less: imputed interest (123 ) Total operating lease liabilities (including current portion) $ 1,650 Line of Credit On March 31, 2020, we entered into a Credit Agreement with Wells Fargo Bank, N.A. The Credit Agreement provides us with a credit facility of $ 3.5 April 15, 2022 no Employment Agreements In the normal course of business, we have entered into employment agreements with certain of our key management personnel that may require compensation payments upon termination. Income Taxes We follow guidance issued by the FASB 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, a company must 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 must assume that the tax position will be examined by taxing authorities. Our policy is to include interest and penalties related to income tax expense. We file income tax returns with the IRS and various state jurisdictions as well as with the countries of India and France. Our federal income tax returns for fiscal years 2018 through 2020 are open for audit, and our state tax returns for fiscal years 2017 through 2020 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. Litigation We are not a party to any legal proceedings and are not aware of any pending, threatened, or unasserted legal proceedings of any kind. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 6 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 7: SHAREHOLDERS’ EQUITY Shares Outstanding Shares of common stock outstanding for the three and six months ended February 28, 2022 and 2021 were as follows: Schedule of common stock outstanding Three Months Ended February 28, Six Months Ended February 28, 2022 2021 2022 2021 Common stock outstanding, beginning of the period 20,168,796 19,958,760 20,141,521 19,923,277 Common stock issued during the period 12,988 100,768 40,263 136,251 Common stock outstanding, end of the period 20,181,784 20,059,528 20,181,784 20,059,528 Dividends Our Board of Directors declared cash dividends during fiscal years 2022 and 2021. The details of the dividends paid are in the following tables: Schedule of dividends declared and paid (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 Total $ 2,420 (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 February 23, 2007, the Company’s Board of Directors adopted, and its shareholders approved, the 2007 Stock Option Plan (the “2007 Plan”), under which a total of 1.0 million shares of common stock were reserved for issuance. On February 25, 2014, the shareholders approved an additional 1.0 million shares, increasing the total number of shares available to be granted under the 2007 Plan to 2.0 million. This plan terminated in February 2017 by its terms. On December 23, 2016, the Company’s Board of Directors adopted, and on February 23, 2017, its shareholders approved, the Company’s 2017 Equity Incentive Plan (the “2017 Plan”), under which a total of 1.0 On April 9, 2021, the Company’s Board of Directors adopted, and on June 23, 2021, its shareholders approved, the Company’s 2021 Equity Incentive Plan (the “2021 Plan,” and together with the 2007 Plan and 2017 Plan, the “Plans”), under which 1.3 million shares of common stock were reserved for issuance. The 2021 Plan became effective as of April 9, 2021, and the Company may issue equity awards to permitted recipients thereunder. The maximum contractual life of the plan is ten years. As of February 28, 2022, employees and directors hold Incentive Stock Options (“ISOs”) and Non-Qualified Stock Options (“NQSOs”) to purchase approximately 1.3 million shares of common stock at exercise prices ranging from $6.85 to $66.14. The following table summarizes information about stock options: Schedule of stock option activity (in thousands, except per share and weighted-average amounts) Transactions during the six months ended February 28, 2022 Number of Weighted- Weighted- Outstanding, August 31, 2021 1,184 $ 25.63 6.47 Granted 189 $ 39.22 Exercised (44 ) $ 17.48 Cancelled/Forfeited (41 ) $ 39.72 Outstanding, February 28, 2022 1,288 $ 27.45 6.47 Exercisable, February 28, 2022 751 $ 16.81 4.93 The total fair value of nonvested stock options as of February 28, 2022 was $ 7.6 3.36 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 six months ended February 28, 2022 and fiscal year 2021: Schedule of fair value of options (in thousands except pricing) Six Months Ended February 28, 2022 Fiscal Year 2021 Estimated fair value of awards granted $ 3,042 $ 5,092 Unvested forfeiture rate 0 0 Weighted average grant price $ 39.22 $ 57.60 Weighted average market price $ 39.22 $ 57.60 Weighted average volatility 41.91 40.49 Weighted average risk-free rate 1.44 0.64 Weighted average dividend yield 0.61 0.42 Weighted average expected life 6.60 6.63 The exercise prices for the options outstanding at February 28, 2022 ranged from $6.85 to $66.14, and the information relating to these options is as follows: Schedule of options by exercise price range (in thousands except prices) Exercise Price Awards Outstanding Awards Exercisable Low High Quantity Weighted Weighted Quantity Weighted Weighted $ 6.85 $ 9.77 304 3.29 $ 8.37 304 3.29 $ 8.37 $ 9.78 $ 18.76 224 4.85 $ 10.35 223 4.84 $ 10.33 $ 18.77 $ 33.40 268 6.91 $ 25.12 135 6.54 $ 24.16 $ 33.41 $ 47.63 246 9.13 $ 38.35 31 7.53 $ 35.56 $ 47.64 $ 66.14 246 8.73 $ 58.23 58 8.64 $ 58.88 1,288 6.47 $ 27.45 751 4.93 $ 16.81 During the three and six months ended February 28, 2022 the Company issued 1,716 3,451 88 176 The balance of par value common stock and additional paid-in capital as of February 28, 2022, was $ 10 135.5 |
CONCENTRATIONS AND UNCERTAINTIE
CONCENTRATIONS AND UNCERTAINTIES | 6 Months Ended |
Feb. 28, 2022 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND UNCERTAINTIES | NOTE 8: CONCENTRATIONS AND UNCERTAINTIES Financial instruments that potentially subject us to concentration of credit risk consist principally of cash, cash equivalents, trade accounts receivable, and short-term investments. In addition, we hold cash at a bank in France that is not FDIC-insured. Historically, we have not experienced any losses in such accounts. However, we are investigating alternative ways to minimize our exposure to such risks. While we may be exposed to credit losses due to the nonperformance of our counterparties, we do not expect the settlement of these transactions to have a material effect on our results of operations, cash flows, or financial condition. We maintain cash and cash equivalents at financial institutions that may, at times, exceed federally insured limits. Revenue concentration shows that international sales accounted for 33 34 11 5 4 4 13 5 Accounts receivable concentration shows that three customers each comprised between 19 4 15 5 We operate in the computer software industry, 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. The majority of our customers are in the pharmaceutical industry. During economic downturns, we have seen consolidations in the pharmaceutical industry. The extent to which the COVID-19 pandemic continues to impact our business going forward will depend on numerous factors we cannot reliably predict, including the duration and scope of the pandemic; businesses and individuals' actions in response to the pandemic; and the impact on economic activity, including the possibility of recession or financial market instability. These factors may adversely impact consumer, business, and government spending as well as customers ability to pay for our products and services on an ongoing basis. As a result, our growth rate could be affected by consolidation and downsizing in the pharmaceutical industry. |
SEGMENT AND GEOGRAPHIC REPORTIN
SEGMENT AND GEOGRAPHIC REPORTING | 6 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC REPORTING | NOTE 9: SEGMENT AND GEOGRAPHIC REPORTING We account for segments and geographic revenue in accordance with guidance issued by the FASB. Our reportable segments are strategic business units that offer different products and services. Results for each business unit segment and consolidated results for the three and six months ended February 28, 2022 and 2021 were as follows: Schedule of revenue by business unit (in thousands) Three Months Ended February 28, 2022 Software Services Total Revenue $ 9,758 $ 5,038 $ 14,796 Cost of revenue 780 2,050 2,830 Gross profit $ 8,978 $ 2,988 $ 11,966 Gross margin 92 59 81 Our software business and services business represented 66% and 34% of total revenue, respectively, for the three months ended February 28, 2022. (in thousands) Three Months Ended February 28, 2021 Software Services Total Revenue $ 7,827 $ 5,320 $ 13,147 Cost of revenue 836 2,075 2,911 Gross profit $ 6,991 $ 3,245 $ 10,236 Gross margin 89 61 78 Our software business and services business represented 60% and 40% of total revenue, respectively, for the three months ended February 28, 2021. (in thousands) Six Months Ended February 28, 2022 Software Services Total Revenue $ 17,120 $ 10,093 $ 27,213 Cost of revenue 1,515 4,071 5,586 Gross profit $ 15,605 $ 6,022 $ 21,627 Gross margin 91 60 79 Our software business and services business represented 63% and 37% of total revenue, respectively, for the six months ended February 28, 2022. (in thousands) Six Months Ended February 28, 2021 Software Services Total Revenue $ 13,975 $ 9,873 $ 23,848 Cost of revenue 1,647 3,697 5,344 Gross profit $ 12,328 $ 6,176 $ 18,504 Gross margin 88% 63 78 Our software business and services business represented 59% and 41% of total revenue, respectively, for the six months ended February 28, 2021. Revenue by product and consolidated revenue for the three and six months ended February 28, 2022 and 2021 were as follows: Schedule of revenue by product (in thousands) Three Months Ended February 28, 2022 2021 Software revenue GastroPlus $ 5,450 56% $ 4,483 57% MonolixSuite 2,222 23 1,551 20 ADMET Predictor 1,367 14 1,212 15 Other 719 7 581 8 Total software revenue $ 9,758 100% $ 7,827 100% Services revenue PKPD $ 2,222 44% $ 2,585 49% QSP/QST 1,527 30 1,745 33 PBPK 948 19 945 17 Other 341 7 45 1 Total services revenue $ 5,038 100% $ 5,320 100% Total consolidated revenue $ 14,796 $ 13,147 (in thousands) Six Months Ended February 28, 2022 2021 Software revenue GastroPlus $ 9,435 55% $ 7,819 56% MonolixSuite 3,792 22 2,716 19 ADMET Predictor 2,826 17 2,384 17 Other 1,067 6 1,056 8 Total software revenue $ 17,120 100% $ 13,975 100% Services revenue PKPD $ 4,548 45% $ 4,830 49% QSP/QST 2,993 30 2,867 29 PBPK 1,807 18 1,573 16 Other 745 7 603 6 Total services revenue $ 10,093 100% $ 9,873 100% Total consolidated revenue $ 27,213 $ 23,848 Revenue by division and consolidated revenue for the three and six months ended February 28, 2022 and 2021 were as follows: Schedule of revenue by division (in thousands) Three Months Ended February 28, 2022 2021 Simulations Plus $ 7,989 54% $ 6,646 51% Cognigen 2,437 17 2,783 21 DILIsym 2,102 14 2,114 16 Lixoft 2,268 15 1,604 12 Total $ 14,796 100% $ 13,147 100% (in thousands) Six Months Ended February 28, 2022 2021 Simulations Plus $ 14,504 53% $ 12,078 51% Cognigen 4,940 18 5,451 23 DILIsym 3,819 14 3,486 15 Lixoft 3,950 15 2,833 11 Total $ 27,213 100% $ 23,848 100% In addition, we allocate revenue to geographic areas based on the locations of our customers. Revenue for each geographical area and consolidated revenue for the three and six months ended February 28, 2022 and 2021 were as follows: Schedule of revenue by geographic areas (in thousands) Three Months Ended February 28, 2022 2021 Americas $ 9,696 66% $ 8,662 66% EMEA 3,706 25 3,071 23 Asia Pacific 1,394 9 1,414 11 Total $ 14,796 100% $ 13,147 100% (in thousands) Six Months Ended February 28, 2022 2021 Americas $ 18,155 67% $ 15,785 66% EMEA 6,731 24 5,560 23 Asia Pacific 2,327 9 2,503 11 Total $ 27,213 100% $ 23,848 100% |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 6 Months Ended |
Feb. 28, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | NOTE 10: EMPLOYEE BENEFIT PLAN We maintain a 401(k) Plan for all eligible employees, and we make matching contributions equal to 100% of the employee’s elective deferral, not to exceed 4% of total employee compensation. We can also elect to make a profit-sharing contribution. Our contributions to this 401(K) Plan amounted to $ 194 131 308 252 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Feb. 28, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 11: SUBSEQUENT EVENTS On Thursday, April 6, 2022, our Board of Directors declared a quarterly cash dividend of $0.06 per share to our shareholders. The dividend amount of approximately $1.2 million will be distributed on Monday, May 2, 2022, for shareholders of record as of Monday, April 25, 2022. On April 1, 2022, upon expiration of the 24-month holdback period set forth in the Share Purchase and Contribution Agreement entered into by and among the Company and the former shareholders of Lixoft on March 31, 2020, the Company released and distributed the $2.0 million holdback consideration, consisting of approximately $1.3 million in cash and $0.7 million in restricted shares of Company common stock (amounting to an aggregate of 20,326 shares of common stock), to the former shareholders of Lixoft. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Simulations Plus and its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated upon 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. Significant accounting policies for us include revenue recognition, accounting for capitalized computer software development costs, valuation of stock options, and accounting for income taxes. |
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 Accounting Standards Codification Topic 606 (ASC Topic 606), “ Revenue from Contracts with Customers” 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 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 February 28, 2022, remaining performance obligations were approximately $ 7.3 Disaggregation of Revenue The components of disaggregation of revenue for the three and six months ended February 28, 2022 and 2021 were as follows: Schedule of disaggregation of revenue (in thousands) Three Months Ended Six Months Ended 2022 2021 2022 2021 Software licenses: Point in time $ 9,493 $ 7,536 $ 16,600 $ 13,472 Over time 265 291 520 503 Consulting services: Over time 5,038 5,320 10,093 9,873 Total revenue $ 14,796 $ 13,147 $ 27,213 $ 23,848 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 condensed 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 received consideration from a customer. We refer to contract liabilities as deferred revenue on our condensed consolidated balance sheets. Contract asset balances as of February 28, 2022 and August 31, 2021 were $ 2.1 3.2 During the three and six months ended February 28, 2022, we recognized $ 187 540 104 400 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 condensed 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 and Allowances for Credit Losses | Accounts Receivable and Allowances 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 Financial Accounting Standards Board (“FASB”) ASC 320, Investments – Debt and Equity Securities. 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 quarter ended February 28, 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 FASB ASC 985-20, Costs of Software to Be Sold, Leased, or Marketed 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 $ 328 365 624 690 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 Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows: Property and Equipment estimated useful lives Equipment 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease |
Internal-use Software | Internal-use Software We have a service contract related to the implementation of internally used software. In accordance with ASC 350-40 “Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” The amortization is classified as selling, general, and administrative expenses on the condensed consolidated statement of operations, and maintenance and minor upgrades are also charged to selling, general, and administrative expense as incurred. |
Leases | Leases Supplemental information related to operating leases was as follows as of February 28, 2022: Balance sheet information related to operating leases (in thousands) Right-of-use assets $ 1,653 Lease liabilities, current $ 336 Lease liabilities, long-term $ 1,314 Operating lease costs $ 256 Weighted average remaining lease term 3.55 Weighted average discount rate 3.41 |
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. 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. Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill is not amortized, instead it is tested for impairment annually or when events or circumstances change that would indicate that goodwill 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 is tested for impairment at the reporting unit level, which is one level below or the same as an operating segment. As of February 28, 2022, we determined that we have four reporting units: Simulations Plus, Cognigen, DILIsym, and Lixoft. When testing goodwill for impairment, we first perform a qualitative assessment to determine whether it is necessary to perform step one of a two-step annual goodwill impairment test for each reporting unit. We are required to perform step one only if it concludes that it is more likely than not that a reporting unit's fair value is less than its carrying value. Should this be the case, the first step of the two-step process is to identify whether a potential impairment exists by comparing the estimated fair values of our reporting units with their respective book values, including goodwill. If the estimated fair value of the reporting unit exceeds book value, goodwill is considered not to be impaired, and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss, if any. The amount of the impairment loss is the excess of the carrying amount of the goodwill over its implied fair value. The estimate of implied fair value of goodwill is primarily based on an estimate of the discounted cash flows expected to result from that reporting unit but may require valuations of certain internally generated and unrecognized intangible assets such as our software, technology, patents, and trademarks. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. As of February 28, 2022, the entire balance of goodwill was attributed to three of our reporting units: Cognigen, DILIsym, and Lixoft. 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. We did no Reconciliation of Goodwill as of February 28, 2022: Schedule of reconciliation of goodwill (in thousands) Cognigen DILIsym Lixoft Total Balance, August 31, 2021 $ 4,789 $ 5,598 $ 2,534 $ 12,921 Addition – – – – Impairments – – – – Balance, February 28, 2022 $ 4,789 $ 5,598 $ 2,534 $ 12,921 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories, as defined by the standard are as follows: Level Input: Input Definition: Level I Inputs 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, accrued payroll and other expenses, and the amounts approximate fair value due to their short maturities. The following table summarizes fair value measurements at February 28, 2022 and August 31, 2021 for assets and liabilities measured at fair value on a recurring basis: Schedule of fair value measurements February 28, 2022: (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 60,373 $ – $ – $ 60,373 Short-term investments $ 63,922 $ – $ – $ 63,922 Acquisition-related contingent consideration obligations $ – $ – $ 3,460 $ 3,460 August 31, 2021: (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 36,984 $ – $ – $ 36,984 Short-term investments $ 86,484 $ – $ – $ 86,484 Acquisition-related contingent consideration obligations $ – $ – $ 3,217 $ 3,217 As of February 28, 2022 and 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 is determined using Level 3 inputs. The fair value of contingent consideration obligations is based on a discounted cash flow model using a probability-weighted income approach. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense we record in any given period. The liability is recorded as contracts payable on the condensed consolidated balance sheet, and changes in the value of the contingent consideration obligations are recorded other income (expense), net in our Condensed Consolidated Statement of Operations and Comprehensive Income. The following is a reconciliation of contingent consideration value: Reconciliation of contingent consideration (in thousands) Value at August 31, 2021 $ 3,217 Contingent consideration payments – Change in value of contingent consideration 243 Value at February 28, 2022 $ 3,460 |
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 740-10, “Income Taxes” 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 The following table summarizes intellectual property as of February 28, 2022: Schedule of intellectual property (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 4,675 1,325 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,504 1,346 Intellectual rights of Entelos Holding Corp. Straight line 10 years 50 18 32 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 959 7,051 $ 16,985 $ 7,231 $ 9,754 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 Corp. 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 Amortization expense for intellectual property agreements for the three months ended February 28, 2022 and 2021 was $ 358 357 715 714 |
Other intangible assets | Other intangible assets The following table summarizes our other intangible assets as of February 28, 2022: Schedule of other intangible assets (in thousands) Amortization Acquisition Accumulated Net Book Simulations Plus ERP Straight line 15 years $ 1,702 $ 24 $ 1,678 Cognigen Customer relationships Straight line 8 years 1,100 1,031 69 Trade name None 500 – 500 Covenants not to compete Straight line 5 years 50 50 – DILIsym Customer relationships Straight line 10 years 1,900 903 997 Trade name None 860 – 860 Covenants not to compete Straight line 4 years 80 80 – Lixoft Customer relationships Straight line 14 years 2,550 349 2,201 Trade name None 1,550 – 1,550 Covenants not to compete Straight line 3 years 60 38 22 $ 10,352 $ 2,475 $ 7,877 The following table summarizes our 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 Amortization expense for other intangible assets for the three months ended February 28, 2022 and 2021 was $ 156 138 289 275 |
Earnings per Share | Earnings per Share We report earnings per share in accordance with FASB ASC 260-10. 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 three months ended February 28, 2022 and 2021 were as follows: (in thousands) Three Months Ended Six Months Ended 2022 2021 2021 2020 Numerator: Net income attributable to common shareholders $ 4,409 $ 3,211 $ 7,435 $ 5,690 Denominator: Weighted-average number of common shares outstanding during the period 20,177 20,006 20,164 19,968 Dilutive effect of stock options 568 836 574 818 Common stock and common stock equivalents used for diluted earnings per share 20,745 20,842 20,738 20,786 |
Stock-Based Compensation | Stock-Based Compensation Compensation costs related to stock options are determined in accordance with FASB ASC 718-10, “Compensation-Stock Compensation” 703 717 1.3 1.2 |
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 350, “Intangibles – Goodwill and Other “Property and Equipment” |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04 , Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting 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 In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Schedule of disaggregation of revenue | Schedule of disaggregation of revenue (in thousands) Three Months Ended Six Months Ended 2022 2021 2022 2021 Software licenses: Point in time $ 9,493 $ 7,536 $ 16,600 $ 13,472 Over time 265 291 520 503 Consulting services: Over time 5,038 5,320 10,093 9,873 Total revenue $ 14,796 $ 13,147 $ 27,213 $ 23,848 |
Property and Equipment estimated useful lives | Property and Equipment estimated useful lives Equipment 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease |
Balance sheet information related to operating leases | Balance sheet information related to operating leases (in thousands) Right-of-use assets $ 1,653 Lease liabilities, current $ 336 Lease liabilities, long-term $ 1,314 Operating lease costs $ 256 Weighted average remaining lease term 3.55 Weighted average discount rate 3.41 |
Schedule of reconciliation of goodwill | Schedule of reconciliation of goodwill (in thousands) Cognigen DILIsym Lixoft Total Balance, August 31, 2021 $ 4,789 $ 5,598 $ 2,534 $ 12,921 Addition – – – – Impairments – – – – Balance, February 28, 2022 $ 4,789 $ 5,598 $ 2,534 $ 12,921 |
Schedule of fair value measurements | Schedule of fair value measurements February 28, 2022: (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 60,373 $ – $ – $ 60,373 Short-term investments $ 63,922 $ – $ – $ 63,922 Acquisition-related contingent consideration obligations $ – $ – $ 3,460 $ 3,460 August 31, 2021: (in thousands) Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 36,984 $ – $ – $ 36,984 Short-term investments $ 86,484 $ – $ – $ 86,484 Acquisition-related contingent consideration obligations $ – $ – $ 3,217 $ 3,217 |
Reconciliation of contingent consideration | Reconciliation of contingent consideration (in thousands) Value at August 31, 2021 $ 3,217 Contingent consideration payments – Change in value of contingent consideration 243 Value at February 28, 2022 $ 3,460 |
Schedule of intellectual property | Schedule of intellectual property (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 4,675 1,325 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,504 1,346 Intellectual rights of Entelos Holding Corp. Straight line 10 years 50 18 32 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 959 7,051 $ 16,985 $ 7,231 $ 9,754 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 Corp. 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 other intangible assets | Schedule of other intangible assets (in thousands) Amortization Acquisition Accumulated Net Book Simulations Plus ERP Straight line 15 years $ 1,702 $ 24 $ 1,678 Cognigen Customer relationships Straight line 8 years 1,100 1,031 69 Trade name None 500 – 500 Covenants not to compete Straight line 5 years 50 50 – DILIsym Customer relationships Straight line 10 years 1,900 903 997 Trade name None 860 – 860 Covenants not to compete Straight line 4 years 80 80 – Lixoft Customer relationships Straight line 14 years 2,550 349 2,201 Trade name None 1,550 – 1,550 Covenants not to compete Straight line 3 years 60 38 22 $ 10,352 $ 2,475 $ 7,877 The following table summarizes our 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 |
Earnings Per Share (Details - Basic and Diluted Earnings per share) | (in thousands) Three Months Ended Six Months Ended 2022 2021 2021 2020 Numerator: Net income attributable to common shareholders $ 4,409 $ 3,211 $ 7,435 $ 5,690 Denominator: Weighted-average number of common shares outstanding during the period 20,177 20,006 20,164 19,968 Dilutive effect of stock options 568 836 574 818 Common stock and common stock equivalents used for diluted earnings per share 20,745 20,842 20,738 20,786 |
OTHER INCOME (EXPENSE), NET (Ta
OTHER INCOME (EXPENSE), NET (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of other income and expense | Schedule of other income and expense (in thousands) Three Months Ended Six Months Ended 2022 2021 2022 2021 Interest income $ 75 $ 58 $ 139 $ 119 Interest expense – (22 ) – (22 ) Change in valuation of contingent consideration (122 ) (122 ) (243 ) (243 ) Gain on sale of assets – 1 – Gain (loss) on currency exchange 100 23 221 28 Total other income (expense), net $ 53 $ (63 ) $ 118 $ (118 ) |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of short term investments | Schedule of short term investments (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 64,192 $ – $ (270 ) $ 63,922 Total $ 64,192 $ – $ (270 ) $ 63,922 August 31, 2021 (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses 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) | 6 Months Ended |
Feb. 28, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of liabilities | Schedule of liabilities (in thousands) February 28, August 31, Holdback liability $ 1,333 $ 1,333 Earnout liability 3,460 3,217 Sub total $ 4,793 $ 4,550 Less: current portion 4,793 4,550 Long-term portion $ – $ – |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments | Future minimum lease payments (in thousands) Years Ending February 28, 2023 $ 509 2024 465 2025 379 2026 319 2027 101 Total undiscounted liabilities 1,773 Less: imputed interest (123 ) Total operating lease liabilities (including current portion) $ 1,650 |
SHAREHOLDERS_ EQUITY (Tables)
SHAREHOLDERS’ EQUITY (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Equity [Abstract] | |
Schedule of common stock outstanding | Schedule of common stock outstanding Three Months Ended February 28, Six Months Ended February 28, 2022 2021 2022 2021 Common stock outstanding, beginning of the period 20,168,796 19,958,760 20,141,521 19,923,277 Common stock issued during the period 12,988 100,768 40,263 136,251 Common stock outstanding, end of the period 20,181,784 20,059,528 20,181,784 20,059,528 |
Schedule of dividends declared and paid | Schedule of dividends declared and paid (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 Total $ 2,420 (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 |
Schedule of stock option activity | Schedule of stock option activity (in thousands, except per share and weighted-average amounts) Transactions during the six months ended February 28, 2022 Number of Weighted- Weighted- Outstanding, August 31, 2021 1,184 $ 25.63 6.47 Granted 189 $ 39.22 Exercised (44 ) $ 17.48 Cancelled/Forfeited (41 ) $ 39.72 Outstanding, February 28, 2022 1,288 $ 27.45 6.47 Exercisable, February 28, 2022 751 $ 16.81 4.93 |
Schedule of fair value of options | Schedule of fair value of options (in thousands except pricing) Six Months Ended February 28, 2022 Fiscal Year 2021 Estimated fair value of awards granted $ 3,042 $ 5,092 Unvested forfeiture rate 0 0 Weighted average grant price $ 39.22 $ 57.60 Weighted average market price $ 39.22 $ 57.60 Weighted average volatility 41.91 40.49 Weighted average risk-free rate 1.44 0.64 Weighted average dividend yield 0.61 0.42 Weighted average expected life 6.60 6.63 |
Schedule of options by exercise price range | Schedule of options by exercise price range (in thousands except prices) Exercise Price Awards Outstanding Awards Exercisable Low High Quantity Weighted Weighted Quantity Weighted Weighted $ 6.85 $ 9.77 304 3.29 $ 8.37 304 3.29 $ 8.37 $ 9.78 $ 18.76 224 4.85 $ 10.35 223 4.84 $ 10.33 $ 18.77 $ 33.40 268 6.91 $ 25.12 135 6.54 $ 24.16 $ 33.41 $ 47.63 246 9.13 $ 38.35 31 7.53 $ 35.56 $ 47.64 $ 66.14 246 8.73 $ 58.23 58 8.64 $ 58.88 1,288 6.47 $ 27.45 751 4.93 $ 16.81 |
SEGMENT AND GEOGRAPHIC REPORT_2
SEGMENT AND GEOGRAPHIC REPORTING (Tables) | 6 Months Ended |
Feb. 28, 2022 | |
Segment Reporting [Abstract] | |
Schedule of revenue by business unit | Schedule of revenue by business unit (in thousands) Three Months Ended February 28, 2022 Software Services Total Revenue $ 9,758 $ 5,038 $ 14,796 Cost of revenue 780 2,050 2,830 Gross profit $ 8,978 $ 2,988 $ 11,966 Gross margin 92 59 81 Our software business and services business represented 66% and 34% of total revenue, respectively, for the three months ended February 28, 2022. (in thousands) Three Months Ended February 28, 2021 Software Services Total Revenue $ 7,827 $ 5,320 $ 13,147 Cost of revenue 836 2,075 2,911 Gross profit $ 6,991 $ 3,245 $ 10,236 Gross margin 89 61 78 Our software business and services business represented 60% and 40% of total revenue, respectively, for the three months ended February 28, 2021. (in thousands) Six Months Ended February 28, 2022 Software Services Total Revenue $ 17,120 $ 10,093 $ 27,213 Cost of revenue 1,515 4,071 5,586 Gross profit $ 15,605 $ 6,022 $ 21,627 Gross margin 91 60 79 Our software business and services business represented 63% and 37% of total revenue, respectively, for the six months ended February 28, 2022. (in thousands) Six Months Ended February 28, 2021 Software Services Total Revenue $ 13,975 $ 9,873 $ 23,848 Cost of revenue 1,647 3,697 5,344 Gross profit $ 12,328 $ 6,176 $ 18,504 Gross margin 88% 63 78 |
Schedule of revenue by product | Schedule of revenue by product (in thousands) Three Months Ended February 28, 2022 2021 Software revenue GastroPlus $ 5,450 56% $ 4,483 57% MonolixSuite 2,222 23 1,551 20 ADMET Predictor 1,367 14 1,212 15 Other 719 7 581 8 Total software revenue $ 9,758 100% $ 7,827 100% Services revenue PKPD $ 2,222 44% $ 2,585 49% QSP/QST 1,527 30 1,745 33 PBPK 948 19 945 17 Other 341 7 45 1 Total services revenue $ 5,038 100% $ 5,320 100% Total consolidated revenue $ 14,796 $ 13,147 (in thousands) Six Months Ended February 28, 2022 2021 Software revenue GastroPlus $ 9,435 55% $ 7,819 56% MonolixSuite 3,792 22 2,716 19 ADMET Predictor 2,826 17 2,384 17 Other 1,067 6 1,056 8 Total software revenue $ 17,120 100% $ 13,975 100% Services revenue PKPD $ 4,548 45% $ 4,830 49% QSP/QST 2,993 30 2,867 29 PBPK 1,807 18 1,573 16 Other 745 7 603 6 Total services revenue $ 10,093 100% $ 9,873 100% Total consolidated revenue $ 27,213 $ 23,848 |
Schedule of revenue by division | Schedule of revenue by division (in thousands) Three Months Ended February 28, 2022 2021 Simulations Plus $ 7,989 54% $ 6,646 51% Cognigen 2,437 17 2,783 21 DILIsym 2,102 14 2,114 16 Lixoft 2,268 15 1,604 12 Total $ 14,796 100% $ 13,147 100% (in thousands) Six Months Ended February 28, 2022 2021 Simulations Plus $ 14,504 53% $ 12,078 51% Cognigen 4,940 18 5,451 23 DILIsym 3,819 14 3,486 15 Lixoft 3,950 15 2,833 11 Total $ 27,213 100% $ 23,848 100% |
Schedule of revenue by geographic areas | Schedule of revenue by geographic areas (in thousands) Three Months Ended February 28, 2022 2021 Americas $ 9,696 66% $ 8,662 66% EMEA 3,706 25 3,071 23 Asia Pacific 1,394 9 1,414 11 Total $ 14,796 100% $ 13,147 100% (in thousands) Six Months Ended February 28, 2022 2021 Americas $ 18,155 67% $ 15,785 66% EMEA 6,731 24 5,560 23 Asia Pacific 2,327 9 2,503 11 Total $ 27,213 100% $ 23,848 100% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details - Disaggregation) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Product Information [Line Items] | ||||
Revenues | $ 14,796 | $ 13,147 | $ 27,213 | $ 23,848 |
Software Licenses [Member] | Transferred at Point in Time [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 9,493 | 7,536 | 16,600 | 13,472 |
Software Licenses [Member] | Transferred over Time [Member] | ||||
Product Information [Line Items] | ||||
Revenues | 265 | 291 | 520 | 503 |
Consulting Services [Member] | Transferred over Time [Member] | ||||
Product Information [Line Items] | ||||
Revenues | $ 5,038 | $ 5,320 | $ 10,093 | $ 9,873 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details - Useful lives) | 6 Months Ended |
Feb. 28, 2022 | |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 to 7 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 to 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of life of asset or lease |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details - Lease cost) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2022 | Aug. 31, 2021 | |
Accounting Policies [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 1,653 | $ 1,276 |
Operating Lease, Liability, Current | 336 | 382 |
Operating Lease, Liability, Noncurrent | 1,314 | $ 896 |
Operating Lease, Cost | $ 256 | |
Weighted average remaining lease term | 3 years 6 months 18 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.41% |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Details - Goodwill) $ in Thousands | 6 Months Ended |
Feb. 28, 2022USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Goodwill, beginning balance | $ 12,921 |
Addition | 0 |
Impairments | 0 |
Goodwill, ending balance | 12,921 |
Cognigen [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Goodwill, beginning balance | 4,789 |
Addition | 0 |
Impairments | 0 |
Goodwill, ending balance | 4,789 |
DILIsym [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Goodwill, beginning balance | 5,598 |
Addition | 0 |
Impairments | 0 |
Goodwill, ending balance | 5,598 |
Lixoft [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Goodwill, beginning balance | 2,534 |
Addition | 0 |
Impairments | 0 |
Goodwill, ending balance | $ 2,534 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Details - Fair value measurements) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value assets | $ 60,373 | $ 36,984 |
Short-term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value assets | 63,922 | 86,484 |
Aquisition Related Contingent Consideration Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value liabilities | 3,460 | 3,217 |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value assets | 60,373 | 36,984 |
Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value assets | 63,922 | 86,484 |
Fair Value, Inputs, Level 1 [Member] | Aquisition Related Contingent Consideration Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Aquisition Related Contingent Consideration Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Short-term Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Aquisition Related Contingent Consideration Obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value liabilities | $ 3,460 | $ 3,217 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Details - Reconciliation of contingent consideration) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Accounting Policies [Abstract] | ||
Contingent consideration, beginning balance | $ 3,217 | |
Contingent consideration payments | 0 | |
Change in value of contingent consideration | 243 | $ 243 |
Contingent consideration, ending balance | $ 3,460 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES (Details - Intellectual property) - Intellectual Property [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Aug. 31, 2021 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Acquisition value | $ 16,985 | $ 16,985 |
Accumulated amortization | 7,231 | 6,516 |
Net book value | $ 9,754 | $ 10,469 |
Enslien [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [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 |
TSRL [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Amortization period | Straight line 10 years | Straight line 10 years |
Acquisition value | $ 6,000 | $ 6,000 |
Accumulated amortization | 4,675 | 4,375 |
Net book value | $ 1,325 | $ 1,625 |
DILIsym [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Amortization period | Straight line 9 years | Straight line 9 years |
Acquisition value | $ 2,850 | $ 2,850 |
Accumulated amortization | 1,504 | 1,346 |
Net book value | $ 1,346 | $ 1,504 |
Entelos [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Amortization period | Straight line 10 years | Straight line 10 years |
Acquisition value | $ 50 | $ 50 |
Accumulated amortization | 18 | 15 |
Net book value | $ 32 | $ 35 |
Lixoft [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Amortization period | Straight line 16 years | Straight line 16 years |
Acquisition value | $ 8,010 | $ 8,010 |
Accumulated amortization | 959 | 709 |
Net book value | $ 7,051 | $ 7,301 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES (Details - Other Intangible Assets) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Aug. 31, 2021 | |
Other Intangible Assets [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Acquisition value | $ 10,352 | $ 8,650 |
Accumulated amortization | 2,475 | 2,186 |
Net book value | $ 7,877 | $ 6,464 |
Simulations Plus [Member] | ERP [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | Straight line 15 years | |
Acquisition value | $ 1,702 | |
Accumulated amortization | 24 | |
Net book value | $ 1,678 | |
Cognigen [Member] | Customer Relationships [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | Straight line 8 years | Straight line 8 years |
Acquisition value | $ 1,100 | $ 1,100 |
Accumulated amortization | 1,031 | 963 |
Net book value | $ 69 | $ 137 |
Cognigen [Member] | Trade Names [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | None | None |
Acquisition value | $ 500 | $ 500 |
Accumulated amortization | 0 | 0 |
Net book value | $ 500 | $ 500 |
Cognigen [Member] | Noncompete Agreements [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | Straight line 5 years | Straight line 5 years |
Acquisition value | $ 50 | $ 50 |
Accumulated amortization | 50 | 50 |
Net book value | $ 0 | $ 0 |
DILIsym [Member] | Customer Relationships [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | Straight line 10 years | Straight line 10 years |
Acquisition value | $ 1,900 | $ 1,900 |
Accumulated amortization | 903 | 807 |
Net book value | $ 997 | $ 1,093 |
DILIsym [Member] | Trade Names [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | None | None |
Acquisition value | $ 860 | $ 860 |
Accumulated amortization | 0 | 0 |
Net book value | $ 860 | $ 860 |
DILIsym [Member] | Noncompete Agreements [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | Straight line 4 years | Straight line 4 years |
Acquisition value | $ 80 | $ 80 |
Accumulated amortization | 80 | 80 |
Net book value | $ 0 | $ 0 |
Lixoft [Member] | Customer Relationships [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | Straight line 14 years | Straight line 14 years |
Acquisition value | $ 2,550 | $ 2,550 |
Accumulated amortization | 349 | 258 |
Net book value | $ 2,201 | $ 2,292 |
Lixoft [Member] | Trade Names [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | None | None |
Acquisition value | $ 1,550 | $ 1,550 |
Accumulated amortization | 0 | 0 |
Net book value | $ 1,550 | $ 1,550 |
Lixoft [Member] | Noncompete Agreements [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Amortization period | Straight line 3 years | Straight line 3 years |
Acquisition value | $ 60 | $ 60 |
Accumulated amortization | 38 | 28 |
Net book value | $ 22 | $ 32 |
Earnings Per Share (Details - B
Earnings Per Share (Details - Basic and Diluted Earnings per share) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Numerator: | ||||
Net income attributable to common shareholders | $ 4,409 | $ 3,211 | $ 7,435 | $ 5,690 |
Denominator: | ||||
Weighted-average number of common shares outstanding during the period | 20,177 | 20,006 | 20,164 | 19,968 |
Dilutive effect of stock options | 568 | 836 | 574 | 818 |
Common stock and common stock equivalents used for diluted earnings per share | 20,745 | 20,842 | 20,738 | 20,786 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | Aug. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Performance Obligations | $ 7,300 | $ 7,300 | |||
Contract asset | 2,100 | 2,100 | $ 3,200 | ||
Contract with Customer, Liability, Revenue Recognized | 187 | $ 104 | 540 | $ 400 | |
Amortization of software development | 328 | 365 | 624 | 690 | |
Impairment charges | 0 | 0 | |||
Stock-based compensation | 703 | 717 | 1,300 | 1,200 | |
Intellectual Property [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | 358 | 357 | 715 | 714 | |
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 156 | $ 138 | $ 289 | $ 275 |
OTHER INCOME (EXPENSE), NET (De
OTHER INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 75 | $ 58 | $ 139 | $ 119 |
Interest expense | 0 | (22) | 0 | (22) |
Change in valuation of contingent consideration | (122) | (122) | (243) | (243) |
Gain on sale of assets | 0 | 1 | 0 | |
Gain (loss) on currency exchange | 100 | 23 | 221 | 28 |
Total other income (expense), net | $ 53 | $ (63) | $ 118 | $ (118) |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Aug. 31, 2021 | |
Net Investment Income [Line Items] | ||
Short term investment, amortized cost | $ 64,192 | $ 86,620 |
Gross unrealized gains | 0 | 0 |
Gross unrealized loss | (270) | (136) |
Short term investment, fair value | 63,922 | 86,484 |
Commercial Paper [Member] | ||
Net Investment Income [Line Items] | ||
Short term investment, amortized cost | 64,192 | 86,620 |
Gross unrealized gains | 0 | 0 |
Gross unrealized loss | (270) | (136) |
Short term investment, fair value | $ 63,922 | $ 86,484 |
CONTRACTS PAYABLE (Details)
CONTRACTS PAYABLE (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Aug. 31, 2021 |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total contract with customer | $ 4,793 | $ 4,550 |
Less: Current Portion | 4,793 | 4,550 |
Long-Term | 0 | 0 |
Holdback Liability Lixoft [Member] | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total contract with customer | 1,333 | 1,333 |
Earnout Liability Lixoft [Member] | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total contract with customer | $ 3,460 | $ 3,217 |
CONTRACTS PAYABLE (Details Narr
CONTRACTS PAYABLE (Details Narrative) $ in Thousands | 1 Months Ended |
Jun. 30, 2021USD ($) | |
Lixoft [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Earnout payment made | $ 2,000 |
Future minimum lease payments (
Future minimum lease payments (Details) $ in Thousands | Feb. 28, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 509 |
2024 | 465 |
2025 | 379 |
2026 | 319 |
2027 | 101 |
Total undiscounted liabilities | 1,773 |
Less: imputed interest | (123) |
Total operating lease liabilities (including current portion) | $ 1,650 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Line of Credit Facility [Line Items] | ||||
Rent expense | $ 120 | $ 147 | $ 276 | $ 332 |
Wells Fargo [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit maximum amount | 3,500 | $ 3,500 | ||
Line of credit expiration date | Apr. 15, 2022 | |||
Line of credit amount outstanding | $ 0 | $ 0 |
SHAREHOLDERS EQUITY (Details -
SHAREHOLDERS EQUITY (Details - Shares Outstanding) - shares | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Equity [Abstract] | ||||
Common stock outstanding, beginning of year | 20,168,796 | 19,958,760 | 20,141,521 | 19,923,277 |
Common stock issued during the year | 12,988 | 100,768 | 40,263 | 136,251 |
Common stock outstanding, end of year | 20,181,784 | 20,059,528 | 20,181,784 | 20,059,528 |
SHAREHOLDERS EQUITY (Details _2
SHAREHOLDERS EQUITY (Details - Dividends) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Aug. 31, 2021 | |
Dividends Payable [Line Items] | ||
Total Amount | $ 2,420 | $ 4,811 |
FY 2022 1st Qtr [Member] | ||
Dividends Payable [Line Items] | ||
Record Date | Oct. 25, 2021 | |
Distribution Date | Nov. 1, 2021 | |
Number of Shares Outstanding on Record Date | 20,148 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,209 | |
FY 2022 2nd Qtr [Member] | ||
Dividends Payable [Line Items] | ||
Record Date | Jan. 31, 2022 | |
Distribution Date | Feb. 7, 2022 | |
Number of Shares Outstanding on Record Date | 20,178 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,211 | |
FY 2021 1st Qtr [Member] | ||
Dividends Payable [Line Items] | ||
Record Date | Oct. 26, 2020 | |
Distribution Date | Nov. 2, 2020 | |
Number of Shares Outstanding on Record Date | 19,924 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,195 | |
FY 2021 2nd Qtr [Member] | ||
Dividends Payable [Line Items] | ||
Record Date | Jan. 25, 2021 | |
Distribution Date | Feb. 1, 2021 | |
Number of Shares Outstanding on Record Date | 20,010 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,201 | |
FY 2021 3rd Qtr [Member] | ||
Dividends Payable [Line Items] | ||
Record Date | Apr. 26, 2021 | |
Distribution Date | May 3, 2021 | |
Number of Shares Outstanding on Record Date | 20,115 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,207 | |
FY 2021 4th Qtr [Member] | ||
Dividends Payable [Line Items] | ||
Record Date | Jul. 26, 2021 | |
Distribution Date | Aug. 2, 2021 | |
Number of Shares Outstanding on Record Date | 20,139 | |
Dividend per Share | $ 0.06 | |
Total Amount | $ 1,208 |
SHAREHOLDERS EQUITY (Details _3
SHAREHOLDERS EQUITY (Details - Option activity) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | Aug. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | $ 39.22 | $ 57.60 | |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option outstanding, beginning balance | 1,184 | ||
Outstanding | $ 25.63 | ||
Outstanding, end of period | 6 years 5 months 19 days | 6 years 5 months 19 days | |
Granted | 189 | ||
Granted | $ 39.22 | ||
Exercised | (44) | ||
Exercised | $ 17.48 | ||
Canceled/Forfeited | (41) | ||
Canceled/Forfeited | $ 39.72 | ||
Option Outstanding, ending balance | 1,288 | 1,184 | |
Outstanding | $ 27.45 | $ 25.63 | |
Options exercisable | 751 | ||
Options exercisable | $ 16.81 | ||
Options exercisable - weighted average life | 4 years 11 months 4 days |
SHAREHOLDERS EQUITY (Details _4
SHAREHOLDERS EQUITY (Details - Fair value of options) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Feb. 28, 2022 | Aug. 31, 2021 | |
Equity [Abstract] | ||
Estimated fair value of awards granted | $ 3,042 | $ 5,092 |
Unvested forfeiture rate | 0.00% | 0.00% |
Weighted average grant price | $ 39.22 | $ 57.60 |
Weighted average market price | $ 39.22 | $ 57.60 |
Weighted average volatility | 41.91% | 40.49% |
Weighted average risk-free rate | 1.44% | 0.64% |
Weighted average dividend yield | 0.61% | 0.42% |
Weighted average expected life | 6 years 7 months 6 days | 6 years 7 months 17 days |
SHAREHOLDERS EQUITY (Details _5
SHAREHOLDERS EQUITY (Details - Options outstanding and exercisable) - Equity Option [Member] - $ / shares shares in Thousands | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Aug. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards outstanding | 1,288 | 1,184 | |
Awards outstanding weighted average remaining contractual life | 6 years 5 months 19 days | 6 years 5 months 19 days | |
Awards outstanding weighted average exercise price | $ 27.45 | $ 25.63 | |
Awards exercisable | 751 | ||
Awards exercisable weighted average remaining contractual life | 4 years 11 months 4 days | ||
Awards exercisable weighted average exercise price | $ 16.81 | ||
$6.85 to $9.77 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price low | 6.85 | ||
Exercise price high | $ 9.77 | ||
Awards outstanding | 304 | ||
Awards outstanding weighted average remaining contractual life | 3 years 3 months 14 days | ||
Awards outstanding weighted average exercise price | $ 8.37 | ||
Awards exercisable | 304 | ||
Awards exercisable weighted average remaining contractual life | 3 years 3 months 14 days | ||
Awards exercisable weighted average exercise price | $ 8.37 | ||
$9.78 to $18.76 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price low | 9.78 | ||
Exercise price high | $ 18.76 | ||
Awards outstanding | 224 | ||
Awards outstanding weighted average remaining contractual life | 4 years 10 months 6 days | ||
Awards outstanding weighted average exercise price | $ 10.35 | ||
Awards exercisable | 223 | ||
Awards exercisable weighted average remaining contractual life | 4 years 10 months 2 days | ||
Awards exercisable weighted average exercise price | $ 10.33 | ||
$18.77 to $33.40 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price low | 18.77 | ||
Exercise price high | $ 33.40 | ||
Awards outstanding | 268 | ||
Awards outstanding weighted average remaining contractual life | 6 years 10 months 28 days | ||
Awards outstanding weighted average exercise price | $ 25.12 | ||
Awards exercisable | 135 | ||
Awards exercisable weighted average remaining contractual life | 6 years 6 months 14 days | ||
Awards exercisable weighted average exercise price | $ 24.16 | ||
$33.41 to $47.63 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price low | 33.41 | ||
Exercise price high | $ 47.63 | ||
Awards outstanding | 246 | ||
Awards outstanding weighted average remaining contractual life | 9 years 1 month 17 days | ||
Awards outstanding weighted average exercise price | $ 38.35 | ||
Awards exercisable | 31 | ||
Awards exercisable weighted average remaining contractual life | 7 years 6 months 10 days | ||
Awards exercisable weighted average exercise price | $ 35.56 | ||
$47.64 to $66.14 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price low | 47.64 | ||
Exercise price high | $ 66.14 | ||
Awards outstanding | 246 | ||
Awards outstanding weighted average remaining contractual life | 8 years 8 months 23 days | ||
Awards outstanding weighted average exercise price | $ 58.23 | ||
Awards exercisable | 58 | ||
Awards exercisable weighted average remaining contractual life | 8 years 7 months 20 days | ||
Awards exercisable weighted average exercise price | $ 58.88 |
SHAREHOLDERS_ EQUITY (Details N
SHAREHOLDERS’ EQUITY (Details Narrative) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended |
Feb. 28, 2022USD ($)shares | Feb. 28, 2022USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Par value common stock | $ 10 | $ 10 |
Additional Paid in Capital, Common Stock | $ 135,500 | $ 135,500 |
Nonmanagement Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued to Directors for services, shares | shares | 1,716 | 3,451 |
Shares issued to Directors for services | $ 88 | $ 176 |
Equity Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 7,600 | $ 7,600 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years 4 months 9 days | |
Equity 2017 Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for issuance under the plan | shares | 1,000 | 1,000 |
CONCENTRATIONS AND UNCERTAINT_2
CONCENTRATIONS AND UNCERTAINTIES (Details Narrative) - Customer Concentration Risk [Member] | 6 Months Ended | |
Feb. 28, 2022 | Feb. 28, 2021 | |
Revenue Benchmark [Member] | International Sales [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 33.00% | 34.00% |
Revenue Benchmark [Member] | Customer 1 [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 11.00% | 13.00% |
Revenue Benchmark [Member] | Customer 2 [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 5.00% | |
Revenue Benchmark [Member] | Customer 3 [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 4.00% | 5.00% |
Revenue Benchmark [Member] | Customer 4 [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 4.00% | |
Accounts Receivable [Member] | Three Customers [Member] | Maximum [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 19.00% | |
Accounts Receivable [Member] | Three Customers [Member] | Minimum [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 4.00% | |
Accounts Receivable [Member] | Four Customers [Member] | Maximum [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 15.00% | |
Accounts Receivable [Member] | Four Customers [Member] | Minimum [Member] | ||
Concentration Risk [Line Items] | ||
Net sales concentration percentage | 5.00% |
SEGMENT AND GEOGRAPHIC REPORT_3
SEGMENT AND GEOGRAPHIC REPORTING (Details - Segment reporting) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenue from External Customer [Line Items] | ||||
Revenues | $ 14,796 | $ 13,147 | $ 27,213 | $ 23,848 |
Cost of revenues | 2,830 | 2,911 | 5,586 | 5,344 |
Gross profit | $ 11,966 | $ 10,236 | $ 21,627 | $ 18,504 |
Gross margin | 81.00% | 78.00% | 79.00% | 78.00% |
Software [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 9,758 | $ 7,827 | $ 17,120 | $ 13,975 |
Cost of revenues | 780 | 836 | 1,515 | 1,647 |
Gross profit | $ 8,978 | $ 6,991 | $ 15,605 | $ 12,328 |
Gross margin | 92.00% | 89.00% | 91.00% | 88.00% |
Services [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues | $ 5,038 | $ 5,320 | $ 10,093 | $ 9,873 |
Cost of revenues | 2,050 | 2,075 | 4,071 | 3,697 |
Gross profit | $ 2,988 | $ 3,245 | $ 6,022 | $ 6,176 |
Gross margin | 59.00% | 61.00% | 60.00% | 63.00% |
SEGMENT AND GEOGRAPHIC REPORT_4
SEGMENT AND GEOGRAPHIC REPORTING (Details - geographic) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 14,796 | $ 13,147 | $ 27,213 | $ 23,848 |
Total Software Revenues [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Software Revenues [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 9,758 | $ 7,827 | $ 17,120 | $ 13,975 |
Software Revenues [Member] | Gastr Plus [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 5,450 | $ 4,483 | $ 9,435 | $ 7,819 |
Software Revenues [Member] | Gastr Plus [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 56.00% | 57.00% | 55.00% | 56.00% |
Software Revenues [Member] | Monolix Suite [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 2,222 | $ 1,551 | $ 3,792 | $ 2,716 |
Software Revenues [Member] | Monolix Suite [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 23.00% | 20.00% | 22.00% | 19.00% |
Software Revenues [Member] | A D M E T Predictor [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 1,367 | $ 1,212 | $ 2,826 | $ 2,384 |
Software Revenues [Member] | A D M E T Predictor [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 14.00% | 15.00% | 17.00% | 17.00% |
Software Revenues [Member] | Other [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 719 | $ 581 | $ 1,067 | $ 1,056 |
Software Revenues [Member] | Other [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 7.00% | 8.00% | 6.00% | 8.00% |
Services Revenues [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 5,038 | $ 5,320 | $ 10,093 | $ 9,873 |
Services Revenues [Member] | Other [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | 341 | 45 | 745 | 603 |
Services Revenues [Member] | PKPD [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 2,222 | $ 2,585 | $ 4,548 | $ 4,830 |
Services Revenues [Member] | PKPD [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 44.00% | 49.00% | 45.00% | 49.00% |
Services Revenues [Member] | QSP/QST [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 1,527 | $ 1,745 | $ 2,993 | $ 2,867 |
Services Revenues [Member] | QSP/QST [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 30.00% | 33.00% | 30.00% | 29.00% |
Services Revenues [Member] | PBPK [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Total consolidated revenue | $ 948 | $ 945 | $ 1,807 | $ 1,573 |
Services Revenues [Member] | PBPK [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 19.00% | 17.00% | 18.00% | 16.00% |
Services Revenues [Member] | Other Services Revenues [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 7.00% | 1.00% | 7.00% | 6.00% |
Total Services Revenues [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Schedule of revenue by division
Schedule of revenue by division (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 14,796 | $ 13,147 | $ 27,213 | $ 23,848 |
Simulations Plus, Inc. [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 7,989 | $ 6,646 | $ 14,504 | $ 12,078 |
Simulations Plus, Inc. [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 54.00% | 51.00% | 53.00% | 51.00% |
Cognigen [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 2,437 | $ 2,783 | $ 4,940 | $ 5,451 |
Cognigen [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 17.00% | 21.00% | 18.00% | 23.00% |
DILIsym [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 2,102 | $ 2,114 | $ 3,819 | $ 3,486 |
DILIsym [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 14.00% | 16.00% | 14.00% | 15.00% |
Lixoft [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 2,268 | $ 1,604 | $ 3,950 | $ 2,833 |
Lixoft [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 15.00% | 12.00% | 15.00% | 11.00% |
All Divisions [Member] | Revenue Benchmark [Member] | Product Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Schedule of revenue by geograph
Schedule of revenue by geographic areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 14,796 | $ 13,147 | $ 27,213 | $ 23,848 |
Americas [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 9,696 | $ 8,662 | $ 18,155 | $ 15,785 |
Americas [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 66.00% | 66.00% | 67.00% | 66.00% |
EMEA [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 3,706 | $ 3,071 | $ 6,731 | $ 5,560 |
EMEA [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 25.00% | 23.00% | 24.00% | 23.00% |
Asia Pacific [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Revenues | $ 1,394 | $ 1,414 | $ 2,327 | $ 2,503 |
Asia Pacific [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 9.00% | 11.00% | 9.00% | 11.00% |
All Geographic Areas [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% |
EMPLOYEE BENEFIT PLAN (Details
EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2022 | Feb. 28, 2021 | Feb. 28, 2022 | Feb. 28, 2021 | |
Retirement Benefits [Abstract] | ||||
Contribution by employer in benefit plan | $ 194 | $ 131 | $ 308 | $ 252 |