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

January 9, 2014

(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 of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

42505 10^th Street West, Lancaster, California 93534-7059

(Address of principal executive offices) (Zip Code)

661-723-7723

Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

£	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01          Other Events

On January 9, 2014, Simulations Plus, Inc., a California corporation (the "Company"), held a conference call reporting its financial results for the first fiscal quarter ended November 30, 2013.

The press release and the PowerPoint slides, which were used for this Conference Call, are attached herein as exhibits.

This report on Form 8-K (the "Report"), including the disclosures set forth herein, contains certain forward-looking statements that involve substantial risks and uncertainties. When used herein, the terms "anticipates," "expects," "estimates," "believes" and similar expressions, as they relate to us or our management, are intended to identify such forward-looking statements.

Forward-looking statements in this Report or hereafter, including in other publicly available documents filed with the Securities and Exchange Commission (the "Commission"), reports to the stockholders of Simulations Plus, Inc., a California corporation (the "Company" or "us," "our" or "we") and other publicly available statements issued or released by us involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management's best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission, each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.

Item 9.01         Financial Statements and Exhibits

(d)        Exhibits

99.1	Press Release
99.2	PowerPoint presentation at the Conference Call on January 9, 2014.

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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: January 10, 2014	By:	/s/  John R. Kneisel
		John R. Kneisel Chief Financial Officer

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EX-99.1

Exhibit 99.1

Simulations Plus

Integrating Science and Software

For Further Information:

Simulations Plus, Inc.

42505 10^th Street West

Lancaster, CA 93534-7059

CONTACT:

Simulations Plus Investor Relations	Hayden IR
Ms. Renée Bouché	Mr. Cameron Donahue
661-723-7723	651-653-1854
renee@simulations-plus.com	cameron@haydenir.com

For Immediate Release:

January 9, 2014

Simulations Plus Reports First Quarter FY2014 Financial Results

Net sales increase 15.3% to first quarter record $2.641 million; Earnings up 16.7%

LANCASTER, CA, January 9, 2014 – Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of simulation and modeling software for pharmaceutical discovery and development, today reported financial results for its first quarter of fiscal year 2014 ended November 30, 2013 (1QFY14).

1QFY14 highlights compared with 1QFY13:

· Net sales increased 15.3% to first-quarter record $2.641 million from $2.290 million

· Gross profit increased 15.2% to $2.193 million from $1.903 million

· SG&A increased 15.0% to $1.071 million from $0.931 million

· R&D expenditures decreased 10.1% to $162,000 from $180,000

· Income before taxes increased 10.8% to $0.992 million from $0.896 million

· Net income increased 16.7% to $685,000 from $587,000

· Diluted earnings per share increased 16.7% to $0.042 from $0.036

Mr. John Kneisel, chief financial officer of Simulations Plus, said: “Increased Selling, General and Administrative (SG&A) expenses for 1QFY14 were due to increased commissions on sales to dealers in Asia, increases in salaries and wages, and increases in costs related to trade shows and travel, all of which outweighed decreases in M&A consultant fees and advertising costs. R&D expenses decreased due to increased scientific staff time spent on capitalized software development activities. A lower income tax rate for 1QFY14 resulted in a provision for income taxes of $307,000, nearly the same dollar amount as for 1QFY13 ($309,000). Cash increased to $10.55 million on November 30, 2013, compared to $10.18 million on August 31, 2013, after distributing $643,000 in dividends during 1QFY14. Shareholders’ equity was $14.35 million at the end of 1QFY14 compared to $14.24 million on August 31, 2013.”

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Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Fiscal year 2014 is off to a very good start with this record first quarter. Revenues and earnings are both up nicely in spite of the fact that we completed all of our recent funded collaborations prior to the quarter. Our software development activities on the next releases of ADMET Predictor™, GastroPlus™, and MedChem Studio™ are proceeding well, and we hope to release our new MembranePlus™ software product in the second calendar quarter of this year. We continue to interview candidates to expand the technical team and we continue to look for opportunities to grow the business via acquisition. Our new NCE (new chemical entity) project is proceeding well with the synthesis of a number of molecules just completed and we hope to select the contractor for testing these molecules to determine their activities against their COX-2 (cyclooxygenase-2) and COX-1 enzyme targets in the next few days.”

The Company has announced an investor conference call that will be webcast live at 1:15 PST/4:15 PM EST today, Thursday, January 9, 2014, which may be accessed by first registering at the following website: https://www2.gotomeeting.com/register/132664954. Upon registering, you will receive a confirmation e-mail with a unique link and instructions for joining the call. Please dial in five to ten minutes prior to the scheduled start time. For listen-only mode, you may dial (646) 307-1721, and enter access code 176-825-537.

About Simulations Plus, Inc.

Simulations Plus, Inc., is a premier developer of groundbreaking drug discovery and development simulation and modeling software, which is licensed to and used in the conduct of drug research by major pharmaceutical, biotechnology, agrochemical, and food industry companies worldwide. Simulations Plus, Inc., is headquartered in Southern California and trades on the NASDAQ Capital Market under the symbol “SLP.” For more information, visit our Web site at www.simulations-plus.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 – With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the Securities and Exchange Commission.

--Tables follow –

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SIMULATIONS PLUS, INC.

CONDENSED BALANCE SHEETS

As of

	November 30,		August 31,
ASSETS
	2013		2013
Current assets
Cash and cash equivalents	$	10,554,707	$	10,179,298
Prepaid income taxes		64,798		301,573
Accounts receivable, net of allowance for doubtful accounts of $0		1,866,445		1,910,615
Contracts receivable		289,040		203,913
Prepaid expenses and other current assets		173,075		192,173
Deferred income taxes		188,126		184,258
Total current assets		13,136,191		12,971,830
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $5,993,404 and $5,801,578		3,072,547		2,891,169
Property and equipment, net		115,927		117,987
Intellectual property, net of accumulated amortization of $13,125 and $11,250		61,875		63,750
Other assets		18,445		18,445
Total assets	$	16,404,985	$	16,063,181
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	235,422	$	146,011
Accrued payroll and other expenses		337,603		311,209
Accrued bonuses to officer		30,000		60,000
Other current liabilities		19,859		19,859
Deferred revenue		168,241		89,227
Total current liabilities		791,125		626,306
Long-term liabilities
Deferred income taxes		1,220,435		1,146,389
Other long-term liabilities		43,028		47,993
Total liabilities		2,054,588		1,820,688
Commitments and contingencies
Shareholders' equity
Preferred stock, $0.001 par value 10,000,000 shares authorized no shares issued and outstanding		–		–
Common stock, $0.001 par value 50,000,000 shares authorized 16,073,894 and 16,030,894 shares issued and outstanding		4,545		4,502
Additional paid-in capital		4,908,456		4,842,794
Retained earnings		9,437,396		9,395,197
Total shareholders' equity		14,350,397		14,242,493
Total liabilities and shareholders' equity	$	16,404,985	$	16,063,181

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SIMULATIONS PLUS, INC.

CONDENSED STATEMENTS OF OPERATIONS

For the three months ended

	November 30
	2013			2012
Net sales	$	2,641,000		$	2,290,094
Cost of sales		448,420			386,870
Gross profit		2,192,580			1,903,224
Operating expenses
Selling, general, and administrative		1,071,091			931,060
Research and development		162,116			180,335
Total operating expenses		1,233,207			1,111,395
Income from operations		959,373			791,829
Other income (expense)
Interest income		9,026			13,728
Miscellaneous income		–			15,404
Gain on currency exchange		23,709			74,654
		–			–
Total other income (expense)		32,735			103,786
Income from continuing operations before provision for income taxes		992,108			895,615
Provision for income taxes		(306,953	)		(308,629	)
Net Income	$	685,155		$	586,986
Earnings per share
Basic	$	0.04		$	0.04
Diluted	$	0.04		$	0.04
Weighted-average common shares outstanding
Basic		16,049,707			15,927,806
Diluted		16,366,720			16,365,552

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EX-99.2

Exhibit 99.2

Simulations Plus, Inc. (NASDAQ:SLP) First Quarter Fiscal Year 2014 Conference Call and Webinar January 9, 2014

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With the exception of historical information, the matters discussed in this presentation are forward - looking statements that involve a number of risks and uncertainties. The actual results of the Company could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: continuing demand for the Company’s products, competitive factors, the Company’s ability to finance future growth, the Company’s ability to produce and market new products in a timely fashion, the Company’s ability to continue to attract and retain skilled personnel, and the Company’s ability to sustain or improve current levels of productivity. Further information on the Company’s risk factors is contained in the Company’s quarterly and annual reports and filed with the Securities and Exchange Commission. Safe Harbor Statement

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• 1QFY14 compared to 1QFY13: – Sales up 15.3% to First Quarter Record $2.64 million from $2.29 million – Gross profit up 15.2% to $2.193 million from $1.903 million – SG&A increased 15.0% to $1.071 million from $0.931 million • As a percent of revenues, SG&A decreased slightly to 40.6% from 40.7% – R&D expense decreased 10.1% to $162,000 from $180,000 • More time was spent on capitalized software activities and NCE project costs were lower – Net Income increased 16.7% to $0.685 million from $0.587 million – Diluted earnings per share increased 16.7% to $0.042 from $0.036 – Approximately $643,000 was distributed to shareholders as a cash dividend • Strong balance sheet: – Cash of $10.55 million at 11/30/13 after the ~$643,000 dividend distribution • Cash as of January 9 = $10.25 million – Shareholders’ equity on November 30 = $14.35 million – We continue to have no debt SLP 1QFY14 Highlights Quarter ended 11/30/13:

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Income Statement 1QFY14 vs 1QFY13 ($ millions) 1QFY14 1QFY13 Net sales 2.641 2.290 Gross profit 2.193 1.903 Gross profit margin 83.0% 83.1% SG&A 1.071 0.931 R&D 0.162 0.180 Total operating expenses 1.233 1.111 Income from operations 0.959 0.792 Other income 0.033 0.104 Income from operations before income taxes 0.992 0.896 Net income 0.685 0.587 Earnings per share 0.043 0.036

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Revenues by Quarter (pro forma prior to 2012) $1.4 $1.8 $2.0 $1.1 $1.7 $2.2 $2.3 $1.3 $2.1 $2.6 $2.6 $1.4 $2.2 $2.8 $2.8 $1.6 $2.3 $3.1 $3.1 $1.6 2.64 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014

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$1.24 $1.53 $1.75 $0.71 $1.45 $1.93 $1.97 $1.07 $1.70 $2.21 $2.21 $1.12 $1.90 $2.39 $2.33 $1.32 $1.90 $2.62 $2.64 $1.26 $2.19 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 Gross Profit by Fiscal Quarter (pro forma prior to 2012)

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$0.55 $0.73 $0.93 $0.20 $0.73 $1.28 $1.23 $0.36 $1.00 $1.48 $1.48 $0.27 $1.23 $1.38 $1.48 $0.58 $1.09 $1.76 $1.73 $0.44 $1.20 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 EBITDA by Fiscal Quarter

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Net Income by Quarter (pro forma prior to 2012) $0.33 $0.47 $0.53 $0.17 $0.44 $0.85 $0.74 $0.21 $0.56 $0.91 $1.05 $0.17 $0.76 $0.84 $0.87 $0.35 $0.59 $1.06 $0.99 $0.24 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014

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10 11 9 9 14 17 12 14 15 21 13 10 18 18 16 9 15 Q1 Q2 Q3 Q4 2010 2011 2012 2013 2014 New Customers by Quarter

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Selected Balance Sheet Items ($ millions) November 30, 2013 August 31, 2013 Cash and cash equivalents $10.555 $10.179 Cash per fully diluted share 0.64 0.62 Total current assets 13.136 12.972 Total assets 16.405 16.063 Total current liabilities 0.791 0.626 Total liabilities 2.054 1.821 Current ratio 16.6 20.7 Shareholders’ equity 14.350 14.242 Total liabilities and shareholders’ equity 16.405 16.063 Shareholders’ equity per diluted share 0.877 0.870

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$1.59 $0.80 $0.80 $2.24 $0.00 $0.48 $0.48 $0.64 $1.97 $12.66 $13.24 $12.89 $12.70 $11.38 $9.33 $9.76 $10.00 $10.18 $10.56 Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 $ Millions Dividend Paid Proceeds from Sale of Subsidiary Cash Returning Cash to Shareholders

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N H O OH O CH 3 CH 3 CH 3 Discovery Preclinical Clinical MedChem Studio™ MedChem Designer™ GastroPlus™ DDDPlus™ ADMET Predictor™ Simulations Plus Products & Services Consulting Services & Collaborations MembranePlus ™

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Product News • Version 8.5 released Q4FY2013 • Unique precipitation model added • Infant PBPK physiologies added – pediatrics is high - interest area in FDA and industry • Added a built - in method for transporter in vitro - in vivo extrapolation • Added a number of additional built - in enzyme expression levels • Version 6.5 released in June 2013, version 7.0 release expected January 2014 • Significantly improved and expanded metabolism predictions • New model of skin permeability and air/water partition coefficient • New much - improved mutagenicity models in Toxicity Module • New licensing software incorporated for greater flexibility and efficiency • Version 3.5 & MedChem Designer 2.5 – released July 2013 • Improved molecule depictions • New licensing software • New ultra - fast screening methods for large molecular libraries • New 64 - bit versions offered for screening very large libraries • Version 4.0 • Virtual Trials added to show expected variances in experiments • Adding ADMET Predictor optional module as in GastroPlus • Customer base continues to grow • MembranePlus – released expected second calendar quarter 2014 • Explores mechanisms of permeability through cell layers • Explore and understand the effects of experimental setup that affect results • Contracting for in vitro assays for detailed model validation • Scientific poster presented at AAPS last week

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Marketing and Sales Program • Conferences /Scientific Meetings continue to be primary source of leads • During Q1 we participated in 13 scientific meetings and conferences in the U.S . and Europe with 13 scientific posters and presentations • Trainings and Workshops • Conducted 7 on - site training courses at client sites in Q1 and hosted 1 st workshop in Japan • Spent several weeks traveling through Japan and China to present at >20 companies • Strategic Digital Marketing Initiatives continue • Hosted 3 webinars on our new software updates & applications - over 5 00 registrations • LinkedIn, Facebook, Twitter accounts and website redesign help with outreach programs • Collaborations/Consulting/Grants – Ongoing 5 - year collaboration with the FDA Center for Food Safety and Applied Nutrition to build toxicity models with ADMET Predictor/Modeler™ for food additives and contaminants – Consulting studies continue – 4 active projects, 4 in proposal stage – Finalized collaboration with Bayer Pharma for enhancement of pKa model in ADMET Predictor – Finalized funded collaborations for enhancement of the GastroPlus oral cavity & dermal models – Discussions with CROs to partner on modeling & simulation support services • We believe fundamental industry shift continues – Four recent submissions from our consulting contracts using GastroPlus modeling results were accepted by regulatory agencies – plus other submissions without our consulting – GastroPlus User Group was formed by industry users, now 350 members on LinkedIn – 15 new customers during Q1 (includes new companies as well as new departments within existing large customers ) – Several new industry clients closed in China and Japan

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NCE (New Chemical Entity) Project • New NCE project initiated , molecules synthesis just completed • Selection of contractor for experiments is imminent – results expected by March 1 • COX - 2 selected as target (Celebrex® target) • COX - 1 also needs to be inhibited, but at a lesser level (Aspirin target) • Used newest versions of our ADMET Design Suite™ (ADMET Predictor , MedChem Studio , MedChem Designer ) as well as GastroPlus • Goal: further demonstrate the powerful lead compound design capabilities of the ADMET Design Suite • Good results came from our malaria NCE project last year – new licenses already recouped investment

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Growth Opportunities • MembranePlus™ - new software product to simulate in vitro permeability experiments • similar concept to DDDPlus ™ - unique capability in the industry • Continued enhancement of current software products to expand coverage into new areas • Dermal dosing module in GastroPlus ™ • Addition of large animals to GastroPlus • Cloud offering – we’re investigating how cloud computing might provide a means to offer our software and services • AEROModeler ™ - new software product to predict aerodynamic force coefficients for arbitrary missile shapes at any Mach number and angle of attack • Penetration of clinical pharmacology departments to provide more detailed mechanistic modeling for clinical trail data analysis • COX - 2/COX - 1 NCE project expected to : further demonstrate the powerful lead compound design capabilities of the ADMET Design Suite • Goal is to demonstrate the speed and cost efficiency of designing new lead molecules • Potential upside: licensing of one or more molecules (if results are exceptional)

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Summary • For 1QFY14: - Record revenues and earnings = continued 6 - year - plus profitable trend - Earnings growth 16.7% on 15.3% revenue growth • Continuing to Grow: - Three new Ph.D.s added in FY13 - Continuing to seek and interview additional scientists and engineers - Life Sciences team strengthens and supports marketing and sales • Aggressive Marketing and Sales Activities - Continue intensive conference/trade show/ workshop schedule - Workshops scheduled for North America, Europe and Asia in 2014 - New courses offered which focus on specific research functions - Trips to India, Japan, China, Korea, and Australia to visit clients and host seminars scheduled over next several months – growing interest in Asia • Strong cash position and no debt – returning cash to shareholders - Cash dividends totaling approximately $7 million have been distributed, yet cash remains at over $10.55 million as of today. Dividend expected to remain at $0.05/ share/ quarter

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Q&A

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