9. SEGMENT AND GEOGRAPHIC REPORTING

9 Months Ended

May. 31, 2015

Segments, Geographical Areas [Abstract]

SEGMENT AND GEOGRAPHIC REPORTING

We account for segments and geographic revenues in accordance with guidance issued by the FASB. Our reportable segments are strategic business units that offer different products and services.

Results for each segment and consolidated results are as follows for the three and nine months ended May 31, 2015 (in thousands):

Three months ended May 31, 2015

	Simulations Plus, Inc.		Cognigen Corporation*		Eliminations			Total
Net Revenues	$	4,541	$	1,401				$	5,942
Income (loss) from operations before income taxes	$	2,445	$	377				$	2,822
Total assets	$	26,336	$	8,814	$	(7,238	)	$	27,912
Capital expenditures	$	7	$	10				$	17
Capitalized software costs	$	193	$	53				$	246
Depreciation and Amortization	$	413	$	91				$	504

Nine months ended May 31, 2015

	Simulations Plus, Inc.		Cognigen Corporation*		Eliminations			Total
Net Revenues	$	10,795	$	3,807				$	14,602
Income (loss) from operations before income taxes	$	4,386	$	627				$	5,013
Total assets	$	26,336	$	8,814	$	(7,238	)	$	27,912
Capital expenditures	$	23	$	14				$	37
Capitalized software costs	$	860	$	116				$	976
Depreciation and Amortization	$	1,211	$	273				$	1,484

*Cognigen Corporation was acquired on September 2, 2014.

In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three months and nine months ended May 31, 2015 and 2014 were as follows (in thousands):

Three months ended May 31, 2015

	North America		Europe		Asia		South America		Total
Simulations Plus, Inc.	$	2,239	$	1,287	$	1,003	$	12	$	4,541
Cognigen Corporation *	$	1,401	$	0	$	0	$	0	$	1,401
Total	$	3,640	$	1,287	$	1,003	$	12	$	5,942

Nine months ended May 31, 2015

	North America		Europe		Asia		South America		Total
Simulations Plus, Inc.	$	5,029	$	3,201	$	2,552	$	13	$	10,795
Cognigen Corporation *	$	3,807		–		–		–	$	3,807
Total	$	8,836	$	3,201	$	2,552	$	13	$	14,602

*Cognigen Corporation was acquired on September 2, 2014

Three and nine months ended May 31, 2014**

	North America		Europe		Asia		South America		Total
Three Months	$	2,350	$	672	$	719	$	0	$	3,741
Nine Months	$	4,480		2,684		2,273	$	26	$	9,463

** Does not include Cognigen Corporation acquired on September 2, 2014.