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

November 18, 2015

(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 14z-12 under Exchange Act (17 CFR 240.14a-12)

[_] Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b))

[_] Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events

On November 18, 2015, Simulations Plus, Inc., a California corporation (the "Company"), held a conference call reporting its financial result for the fourth fiscal quarter and fiscal year ended August 31, 2015.

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 November 18, 2015.

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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: November 19, 2015	By:	/s/ John R. Kneisel
		John R. Kneisel Chief Financial Officer

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EX-99.1

Exhibit 99.1

For Further Information:

Simulations Plus, Inc.

42505 10^th Street West

Lancaster, CA 93534-7059

CONTACT:

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

 For Immediate Release:

November 18, 2015

Simulations Plus Reports FY2015 and Fourth Quarter FY2015 Financial Results

Full Fiscal Year Pharmaceutical Software and Services Up 59.8%;

Earnings per share $0.23 cents up $0.05 cents (22.4%) over prior year

LANCASTER, CA, November 18, 2015 – Simulations Plus, Inc. (NASDAQ: SLP), a leading provider of software for pharmaceutical discovery and development, today reported its financial results for its 2015 fiscal year (FY15) and fourth quarter (4Q15) ended August 31, 2015.

Results for the 2015 fiscal year (FY15):

· Revenues were $18.31 million, representing an increase of 59.8% over $11.46 million in FY14

· Gross profit was up 42.4% to $14.0 million, an increase of $4.17 million from $9.83 million in FY14

· SG&A expense increased 53.5% to $6.81 million from $4.44 million in FY14

o As a percent of sales, SG&A decreased to 37.2% from 38.7% in FY14

· R&D expenditures were $2.50 million in FY15, an increase of 7.5% or $180,000, over $2.32 million in FY14

o For FY15, $1.17 million was capitalized and $1.33 million was expensed

o For FY14, $1.37 million was capitalized and $953,000 was expensed

· Net income was $3.84 million, representing an increase of 27.0% from $3.03 million in FY14

· Net income from operations increased 31.9%

· Net income per fully diluted share was $0.226, representing an increase of 22.4% from $0.184 for FY14

· Cash decreased slightly to $8.55 million, a decrease of $60,000 or 0.01%, from $8.6 million at the end of FY14 after distributing approximately $3.4 million in dividends to shareholders, and using $2.1 million for the Cognigen acquisition

Results for the fourth quarter FY15 (4Q15):

· Revenues were $3.71 million, representing an increase of 85.8% over $2.0 million in 4Q14

· Gross profit was up 71.4% to $2.64 million, an increase of $1.1 million from $1.54 million

· SG&A increased 42.3% to $1.51 million from $1.06 million in 4Q14

· R&D expenditures were $539,000, an increase of 3.9% from $519,000 in 4Q14

o For 4Q15, $193,000 was capitalized and $346,000 was expensed

o For 4Q14, $317,000 was capitalized and $202,000 was expensed

· Net income was $491,000, representing an increase of 120.2% over $223,000 in 4Q14

· Earnings per fully diluted share were $0.029, representing an increase of 114.2% over $0.013 in 4Q14

John Kneisel, chief financial officer for Simulations Plus, said: “Fiscal year 2015 was a banner year for Simulations Plus. The successful acquisition of Cognigen brought an additional $5.2 million of consulting revenues. Coupled with another strong year of organic growth of our flagship software products, we have completed another record financial year. 2015 diluted earnings per share were $0.23, a record year for the company. Cash balances of $8.55 million are substantially the same as the prior year, even after distributing $3.4 million in dividends, and using $2.1 million for the Cognigen acquisition.”

Walt Woltosz, chairman and chief executive officer of Simulations Plus, added: “Our continued growth is a tribute to our marketing and sales staff and our expanded scientific team, whose ongoing efforts to keep us out in front of the technologies in which we specialize have enabled us to hold onto our leadership position in a competitive market. New developments now underway are expected to continue this trend, and we believe our aggressive marketing and sales program and training workshops will continue to bolster our pipeline for continued growth.”

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Mr. Woltosz continued, “With the strategic acquisition of our Buffalo division (Cognigen), we believe we are leading the way to the integration of mechanistic physiologically based pharmacokinetics (PBPK) modeling as a critical support tool for clinical pharmacology. This has been an exciting step forward for the combined companies, more than doubling the Simulations Plus workforce and adding synergistic capabilities to our traditional offerings.”

Dr. Ted Grasela, president of Simulations Plus and Cognigen, added, “The creative applications of our software to address challenges in pharmaceutical research and development are especially evident within the discipline of clinical pharmacology. Simulations Plus now has combined strengths in PBPK and in clinical pharmacology, which is a combination that is being encouraged by regulatory agencies worldwide.”

John DiBella, vice president for marketing and sales for Simulations Plus, said: “4Q15 was strong for both software sales and consulting services. Revenue from new licenses comprised 13% of total revenue, renewal rates exceeded 90%, and consulting service revenue comprised 42% of the total revenue. For FY15, 86 new organizations, or new departments at existing organizations, are now utilizing our technology, growing our installed base. Included among these new licenses were orders from major regulatory agencies in the US and Asia, along with companies outside our core pharmaceutical market. We also experienced a robust 91% account, and 95% revenue, renewal rate for the year. The consulting services division, which continues to maintain a robust project pipeline heading into 2016, had revenue that comprised 32% of total revenue in FY15. With our continued focus on education and training, increased marketing efforts, and the upcoming release of the standalone PKPlus™ application along with upgrades to several existing products, we believe we’re in an excellent position to address the needs set forth by regulatory agencies and capitalize on the increased adoption of modeling & simulation technology across industries.”

Investor Conference Call November 18, 2015, 4:15 p.m. EST/1:15 p.m. PST

The Company will hold an investor conference call on Wednesday November 18, 2015, at 1:15 p.m. PST/4:15 p.m. EST. The conference call will be webcast live and may be joined by registering at https://attendee.gotowebinar.com/register/8292239990300836609. Upon registering, you will receive a confirmation e-mail with 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) 307-1720, and enter access code 235-661-318.

About Simulations Plus, Inc.

Simulations Plus, Inc., is a premier developer of drug discovery and development software, which is licensed to and used in the conduct of drug research by major pharmaceutical and biotechnology companies worldwide. The company is a global leader focused on improving the ways scientists use knowledge and data to predict the properties and outcomes of pharmaceutical and biotechnology agents. Our innovations in integrating new and existing science in medicinal chemistry, computational chemistry, pharmaceutical science, biology, and physiology into our software have made us the leading software provider for physiologically based pharmacokinetic modeling and simulation as well as a leading provider of both preclinical and clinical pharmacometric consulting services for regulatory submissions. For more information, visit our website at www.simulations-plus.com.

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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. 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 our new software products as well as 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, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports as filed with the U.S. Securities and Exchange Commission.

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

As of August 31, 2015 and 2014

ASSETS
	2015		2014
Current assets
Cash and cash equivalents	$	8,551,275	$	8,614,929
Accounts receivable, net of allowance for doubtful accounts of $0		1,593,707		1,708,158
Revenues in excess of billings		795,125		158,914
Prepaid income taxes		–		748,359
Prepaid expenses and other current assets		381,718		188,160
Deferred income taxes		210,972		114,846
Total current assets		11,532,797		11,533,366
Long-term assets
Capitalized computer software development costs,
net of accumulated amortization of $7,632,421 and $6,609,283		3,798,339		3,452,541
Property and equipment, net		413,510		95,242
Intellectual property, net of accumulated amortization of $801,250 and $193,750		5,273,750		5,881,250
Other intangible assets net of accumulated amortization of $147,500		1,502,500		–
Goodwill		4,789,248		–
Other assets		34,082		18,445
Total assets	$	27,344,226	$	20,980,844
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	209,407	$	130,547
Accrued payroll and other expenses		429,580		340,709
Accrued bonuses to officer		121,000		120,000
Income taxes payable		43,602		–
Other current liabilities		19,859		19,859
Current portion - Contracts payable		2,604,404		750,000
Billings in excess of revenues		106,534		–
Deferred revenue		78,945		30,370
Total current liabilities		3,613,331		1,391,485
Long-term liabilities
Deferred income taxes		3,190,419		2,375,874
Payments due under Contracts payable		1,000,000		1,750,000
Other long-term liabilities		8,274		28,134
Total liabilities	$	7,812,024	$	5,545,493
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
16,943,001 and 16,349,955 shares issued and outstanding		5,414		4,821
Additional paid-in capital		9,714,290		6,085,427
Retained earnings		9,812,498		9,345,103
Total shareholders' equity	$	19,532,202	$	15,435,351
Total liabilities and shareholders' equity	$	27,344,226	$	20,980,844

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the year ended August 31,

		2015			2014
Net Revenues	$	18,314,248		$	11,460,880
Cost of revenues		4,315,870			1,629,069
Gross margin		13,998,378			9,831,811
Operating expenses
Selling, general, and administrative		6,813,374			4,439,665
Research and development		1,328,476			952,774
Total operating expenses		8,141,850			5,392,439
Income from operations		5,856,528			4,439,372
Other income (expense)
Interest income		17,935			31,437
Gain(loss) on currency exchange		(181,534	)		42,488
Total other income (expense)		(163,599	)		73,925
Income from operations before provision for income taxes		5,692,929			4,513,297
Provision for income taxes		(1,849,968	)		(1,487,806	)
Net Income	$	3,842,961		$	3,025,491
Earnings per share
Basic	$	0.23		$	0.19
Diluted	$	0.23		$	0.18
Weighted-average common shares outstanding
Basic		16,864,670			16,173,674
Diluted		17,032,158			16,407,751

The accompanying notes are an integral part of these financial statements.

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EX-99.2

Exhibit 99.2

( NASDAQ:SLP ) Investor Conference Call November 18, 2015

2 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

3 Highlights Walt Woltosz Chairman and Chief Executive Officer

4 • Major provider of software and consulting services for pharma R&D • Earliest drug discovery – when a chemist first draws a molecule • Preclinical development (lab and animals) through first - in - human trials • Phase 2 and 3 clinical trials • Beyond patent life to supporting generic companies • Developing new applications in aerospace and general healthcare based on its machine - learning technologies • FY15 revenues up $6.85 million (59.8%) to $18.3 million. • $5.22 million of the increase was revenues from our Buffalo division. • $1.63 million was from growth in our California division. • 4QFY15 revenues were up by $1.7 million (85.8%) to $3.71 million • $1.4 million were from our Buffalo division, bolstering 4 th quarter revenues and income in what has historically been the weakest quarter for the California division. • Diluted EPS for FY15 increased 22.4% to $0.23 per share compared to $0.18 in FY14. Overview

5 • Software renewal rates 99%(fees) • 21 new software client sites added • Product releases • GastroPlus 9.0: • Biologics Module • Dermal Module • Enhanced oral cavity dosing • Enhanced ADMET Predictor integration • ADMET Predictor 7.2: • New property predictions • Retrained metabolism models • Greater GastroPlus integration • KIWI 1.3: • Faster • Enhanced exporting and comparison of models • Consulting services continue to grow 4QFY15 Highlights

6 • Completed first 9 months of 3 - year, $200,000/year collaboration (full year completed in 1QFY16 and contract was renewed for second year) • Met all milestones due during FY15 • Consortium of leading pharmaceutical companies established to ensure the scientific integrity of the improved model and maximize the impact on the industry. • In a recent report, the global ophthalmic drugs market was valued at $16 billion in 2012, and was expected to reach an estimated value of $21.6 billion in 2018 • Globally, the ophthalmic drugs market is witnessing significant growth due to increasing prevalence of eye disorders, such as diabetic retinopathy and macular degeneration • Awarded second FDA cooperative agreement for $200,000/year for up to 3 years to develop modeling and simulation capabilities for long - acting injectable microsphere dosage forms FDA Office of Generic Drugs (OGD) Funded Collaboration

7 • AEROModeler™ • Application of our artificial neural network ensemble (ANNE) technology to: • Predict aerodynamic force coefficients for missiles at arbitrary Mach number and angle of attack • Classify missiles from radar tracking data • Discriminate between warheads and decoys from sensor data • Presented at 3 aerospace conferences so far in 2015 • MRIModeler™ • Application of our ANNE technology to analysis of magnetic resonance imaging (MRI) data to classify patients as healthy or likely to experience various disease states Exploring Business Opportunities Outside of Pharmaceutical Industry

8 • Continued Growth • Seven - year - plus profitable trend • Successful strategic acquisition • Customer base increase: • 22 new software customers in 4QFY15, 86 in FY15 • 90 + percent renewal rate • Expecting continued compounded growth • 4 th Quarter earnings per share increase 114% ($0.015) • Strong cash position; returning cash to shareholders - Company continues to pay dividend of $0.05 per quarter - Approximately $13.7 million cash dividends distributed since 2012, yet cash remains at $7.3 million as of yesterday Summary

9 Financial Overview John Kneisel Chief Financial Officer

10 Income Statement 4QFY15 Compared to 4QFY14 (in millions) California Buffalo 4QFY15 4QFY14 Diff % chg Net sales $ 2.291 $ 1.421 $ 3.712 $ 1.998 $ 1.714 85.8% Gross profit 1.732 0.903 2.635 1.537 1.098 71.4% Gross profit margin 75.60% 63.55% 70.99% 76.93% - 5.94% - 7.7% SG&A 1.038 0.472 1.510 1.061 0.449 42.3% R&D 0.330 0.017 0.347 0.202 0.145 71.8% Total operating expenses 1.368 0.489 1.857 1.263 0.594 47.0% Income from operations 0.364 0.414 0.778 0.274 0.504 183.9% Other income (expense) ( 0.099) - ( 0.099) 0.013 - 0.112 - 861.5% Income from operations before income taxes 0.265 0.414 0.679 0.288 0.391 135.8% Net income $ 0.228 $ 0.263 $ 0.491 $ 0.223 0.268 120.2% Diluted earnings per share (in dollars) $ 0.029 $ 0.013 $ 0.015 114.2% EBITDA 0.688 0.498 1.186 0.493 0.693 140.6%

11 Income Statement FY15 Compared to FY14 (in millions) California Buffalo FY15 FY14 Diff % chg Net sales $13.086 $5.228 $18.314 $ 11.461 $6.853 59.8% Gross profit 10.855 3.144 13.999 $ 9.832 4.167 42.4% Gross profit margin 82.95% 60.14% 76.44% 85.79% - 9.35% - 10.9% SG&A 4.783 2.030 6.813 $ 4.440 2.373 53.4% R&D 1.256 0.073 1.329 $ 0.953 0.376 39.5% Total operating expenses 6.039 2.103 8.142 $ 5.392 2.75 51.0% Income from operations 4.816 1.041 5.857 4.439 1.418 31.9% Other income (expense) ( 0.164) - ( 0.164) 0.074 - 0.238 - 321.6% Income from operations before income taxes 4.652 1.041 5.693 4.513 1.18 26.1% Net income $3.159 $0.684 $3.843 $3.025 0.818 27.0% Diluted earnings per share (in dollars) $0.226 $0.184 $0.041 22.4% EBITDA 6.284 1.398 7.682 5.551 2.131 38.4%

12 Consolidated Revenues, by Fiscal Quarter and YTD (pro forma prior to 2012; in millions) 4.01 4.57 5.99 3.71 $0 $1 $2 $3 $4 $5 $6 $7 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 18.31 $0 $5 $10 $15 $20 2009 2010 2011 2012 2013 2014 2015

13 Consolidated Gross Profit, by Fiscal Quarter & YTD (pro forma prior to 2012; in millions) 3.09 3.45 4.83 2.64 $0 $1 $2 $3 $4 $5 $6 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 14.00 $0 $5 $10 $15 Year end 2009 2010 2011 2012 2013 2014 2015

14 Consolidated Net Income, by Fiscal Quarter and YTD (pro forma prior to 2012; in millions) $0.53 $0.97 $1.85 $0.49 $- $0.50 $1.00 $1.50 $2.00 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015 $3.84 $- $1.00 $2.00 $3.00 $4.00 $5.00 YTD 2009 2010 2011 2012 2013 2014 2015

15 • Consolidated Diluted Earnings Per Share 0 0.02 0.04 0.06 0.08 0.1 0.12 Q1 Q2 Q3 Q4 Quarterly EPS FY09 FY10 FY11 FY12 FY13 FY14 FY15 0.08 $0.13 $0.17 $0.18 $0.18 $0.18 $0.23 $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 Q4 YTD EPS FY09 FY10 FY11 FY12 FY13 FY14 FY15

16 Consolidated EBITDA, by Fiscal Quarter & YTD (in millions) 7.68 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 YTD 2009 2010 2011 2012 2013 2014 2015 1.45 1.97 3.33 1.19 $0 $1 $2 $3 $4 Q1 Q2 Q3 Q4 2009 2010 2011 2012 2013 2014 2015

17 Returning Cash to Shareholders (in millions) 1.6 0.8 0.8 2.2 0 0.5 0.5 0.6 0.81 0.81 0.81 0.84 0.84 0.84 0.85 0.85 13.2 12.9 12.7 11.4 9.3 9.8 10 10.1 10.6 11 7.8 8.6 5.8 6.1 6.4 8.6 7.3 $0 $1 $1 $2 $2 $3 $0 $2 $4 $6 $8 $10 $12 $14 Dividend Paid Cash on Hand Cash paid $2.5M TSRL Cash paid $2.1M for Cognigen

18 Selected Balance Sheet Items (in millions) August 31, 2015 August 31, 2014 Cash and cash equivalents $8.551* $8.614 Cash per share 0.50 0.52 Total current assets 11.533 11.533 Total assets 27.344 20.981 Total current liabilities 3.613 1.391 Total liabilities 7.812 5.545 Current ratio 3.19 8.29 Shareholders’ equity 19.532 15.435 Total liabilities and shareholders’ equity 27.344 20.981 Shareholders’ equity per diluted share 1.147 0.94 * Cash as of November 17, 2015 was ~$7.6 million

19 Marketing and Sales John DiBella VP of Marketing and Sales

20 Overview of Products and Services N H O OH O CH 3 CH 3 CH 3 ADMET Predictor™ GastroPlus ™ Population PK/PD Modeling & Simulations Regulatory Submission MedChem Studio™ MedChem Designer™ DDDPlus ™ MembranePlus™ Consulting Services and Collaborations Discovery Preclinical C linical COMING SOON: PKPlus™

21 • Version 9.5 scheduled for spring 2016 ‒ Intramuscular dosing model – optional add - on model ‒ Antibody - drug conjugate (ADC) models for biologics • Version 8.0 scheduled for early 2016 ‒ Significant refresh of the graphical user interface ‒ New ‘Chemistry’ module – optional add - on incorporating items from MedChem Studio™ • Version 5.0 scheduled for spring 2016 ‒ Significant refresh of graphical user interface Software Product News • Version 5.0 scheduled for early 2016 ‒ Integration of models from ADMET Predictor™ – optional add - on ‒ New dosage form options for immediate & controlled release formulations • Version 1.5 scheduled for 2016 ‒ Ability to model multiple compounds to optimize in vitro drug - drug interaction parameters • New product : v ersion 1.0 scheduled for early 2016 ‒ Validated software for non - compartmental (NCA) & compartmental PK modeling ‒ Reports in user - customized formats for regulatory submission ‒ Large potential market

22 FY15 Sales Review • Highlights: – Software revenue +11.5% vs. FY14 – 91% renewal rate (accounts) – 95% renewal rate (fees) – 17% increase in license units – 31 new commercial companies – 38 new nonprofit groups – PBPK consulting +105%* vs. FY14 • * Does not include FDA grant revenue 54% 13% 32% 1% Consolidated Sales Breakdown Renewal New Consulting Training 0 50 100 150 200 250 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Software License Units FY13 FY14 FY15

23 New Software Customers Annual Quarterly 0 5 10 15 20 25 Q1 Q2 Q3 Q4 2012 2013 2014 2015 0 10 20 30 40 50 60 70 80 90 100 FY12 FY13 FY14 FY15

24 FY15 Software/PBPK Consulting Revenue by Region Europe 28% (+22% vs. FY14) North America 48% (+11% vs. FY14) Asia 24% (+12% vs. FY14) South America <1% (No change vs. FY14) Japan = 63% China = 17% Korea = 8% India = 7%

25 Marketing Activities – 4QFY15 • Logo Redesign – Redesigned corporate logo – will work on website refresh in FY16 • Conferences and scientific meetings – 14 scientific meetings attended; co - authors on 8 presentations • Trainings and workshops – Hosted 7 onsite training workshops at client sites; 2 @ FDA, 1 @EPA – GastroPlus courses scheduled for China, Europe, India, Japan, Korea, and US in 2016 • Strategic digital marketing initiatives – Hosted 2 webinars on our software updates and applications – Active updates: LinkedIn, Twitter, YouTube, and Facebook accounts – Continued web - based advertising for all programs – 14 peer - reviewed publications citing use of software

26 Buffalo Office Update Expanding Our Reach in Consulting Services and Product Offerings Ted Grasela President

27 Buffalo Growth Opportunities • Strategic and synergistic benefits of the Buffalo (Cognigen) acquisition are being realized • Strong collaborations between Buffalo and Lancaster scientists have identified new and innovative ways of using modeling and simulation to bring valuable insights to our clients’ research and development programs • Social media and Email blasts emphasizing − Modeling & simulation services − Data Assembly services − KIWI™ functionality • Enhanced presence at national and international scientific meetings

28 Status Report - Consulting • Working with 20 companies on 49 projects of which 15 projects started FY16Q1 • Expanded scope of projects with 3 companies • Worked with 7 new companies over the past year • Most common therapeutic area is oncology, followed by neurology and immunology – ~25% of projects result directly in regulatory interaction. • Four contracts for process improvement initiatives to enhance the impact of modeling and simulation activities, indicating a growing commitment to M&S at Pharma companies • Presented 17 posters / publications in 2015 describing Clinical Pharmacology M&S analyses and methodologies.

29 Cutting Edge Scientific Projects • Investigating feasibility of designing formulations to match clinical therapeutic needs • Designing clinical programs for inhaled therapies to improve data input into GastroPlus to improve predictive performance • Leveraging GastroPlus ability to predict intracellular drug concentrations to build new and more predictive models of drug safety and efficacy • Redesigning R&D processes to improve interdisciplinary communications

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32 • Analysis in R&D can be messy • Data and inputs coming from many groups • Careful synthesis and communication is essential • The industry has enormous computing power • The industry lacks tools for harnessing that power Behind the scenes in R&D Coping with complexity and chaos

33 KIWI™ – A Software Platform for Accessing Simulations Plus’ Validated Cloud Processing Capabilities

34 • Current KIWI ™ prospects: 6 • Successful PAGE meeting in June 2015 • 10 demonstrations • Successful ACOP meeting in October 2015 • 12 demonstrations • Targeting release of KIWI ™ Version 1.5 in December 2015 • Next release – July 2016 KIWI Update

35 Summary • Buffalo office strong and growing • Revenues and earnings up and contributing to overall growth of Simulations Plus • Consulting expanding through enhanced marketing and sales and through synergies with Lancaster office for PBPK modeling in clinical pharmacology • KIWI software platform generating increased interest with enhanced marketing and sales efforts

36 Final Summary Walt Woltosz Chairman and Chief Executive Officer

37 • California and Buffalo divisions both performing well • Expected synergies being realized • Addressing regulatory agency interests in applying PBPK modeling in clinical pharmacology • Software sales continue strong growth trend • New releases expected to further enhance product offerings • Traditional products • New PKPlus™ software • Pursuing aerospace and healthcare applications of our machine - learning software engine • FY15 revenues up $6.85 million to $18.3 million. • $5.22 million of the increase was revenues from our Buffalo division. • $1.63 million was from growth in our California division. • 4QFY15 revenues were up by $1.7 million • $1.4 million were from our Buffalo division, bolstering 4 th quarter revenues and income in what has historically been the weakest quarter for the California division. • Diluted EPS for FY15 increased 22.4% to $0.23 per share compared to $0.18 in FY14 Summary