8-K

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


                                  June 29, 2005
                                  -------------
                      (Date of the earliest event reported)


                             Simulations Plus, Inc.
                             ----------------------
             (Exact name of Registrant as specified in its charter)


        California                    001-32046                 95-4595609
        ----------                    ---------                 ----------
(State or other jurisdiction    (Commission File Number)      (I.R.S. Employer
      of incorporation)                                      Identification No.)

                 1220 West Avenue J, Lancaster, California 93534
                 -----------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (661) 723-7723
                                 --------------
               Registrant's telephone number, including area code




ITEM 1.02.  TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT

         On June 29, 2005, Simulations Plus, Inc., a California corporation (the
"Company") issued a press release announcing that the product support
obligations of SAM Communications, Ltd. and the royalty payments to SAM
Communications, Ltd. have been terminated by mutual agreement effective June 30,
2005.


ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

(a) Exhibits

         99.1     Press release dated June 29, 2005





                                   Signatures

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                                 SIMULATIONS PLUS, INC.



Dated: June 29, 2005                             By: /s/ Momoko Beran
                                                    --------------------
                                                 Momoko A. Beran
                                                 Chief Financial Officer





                                 EXHIBITS INDEX
                                 --------------


         Exhibit Number                      Description
         --------------                      -----------

              99.1                           Press release, dated June 29, 2005

EX-99.1

                                                                    EXHIBIT 99.1


              SIMULATIONS PLUS SUBSIDIARY, WORDS+, INC., TERMINATES
           ROYALTY AND SUPPORT AGREEMENT WITH SAM COMMUNICATIONS, LLC

          TERMINATION BY MUTUAL AGREEMENT TO RESULT IN REDUCED EXPENSES

         LANCASTER, CA, JUNE 29, 2005 - Simulations Plus, Inc. (AMEX: SLP), the
leading provider of ADMET absorption simulation and neural net
structure-to-property prediction software for pharmaceutical discovery and
development, announced today that, by mutual agreement, the product support
obligations of SAM Communications, LLC and the royalty payments to SAM
Communications, LLC have been terminated effective June 30, 2005.

         Jeff Dahlen, President of the Company's Words+, Inc. subsidiary, said:
"At the request of the principal of SAM Communications, LLC, who has developed
other business interests and wishes to be freed from the product support
obligations of our December 2003 agreement, we have agreed to terminate that
agreement effective June 30. Our own engineering staff is now fully capable of
supporting and further developing the software and hardware technologies we
acquired under the agreement. We believe it was in our best interests to agree
to the termination and we expect that this will result in a savings to the
Company because royalty payments to SAM Communications, LLC are discontinued as
well. Over the past 12 months, royalty payments to SAM Communications, LLC have
totaled approximately $70,000. Although we cannot provide an exact estimate for
the future, we would expect future savings to be as much or more, as we continue
to see improving sales of our Say-it! SAM and SAM Tablet products."

         Walt Woltosz, chairman and chief executive officer of Simulations Plus,
said, "We have enjoyed an excellent working relationship with SAM
Communications, LLC, and the technology we acquired has been part of the reason
that Words+ has turned around so nicely over the past year. We appreciate the
willingness of the principal of SAM Communications LLC, who is also a
Simulations Plus shareholder, to release us from the royalty payments in return
for freeing up his time to devote to other interests."