8. CONCENTRATIONS AND UNCERTAINTIES

3 Months Ended

Nov. 30, 2015

Risks and Uncertainties [Abstract]

CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that International sales accounted for 45.9% and 39% of net sales for the three months ended November 30, 2015 and 2014, respectively. The top four customers accounted for 11%, 9% (a dealer account in Japan representing over 40 customers), 6%, and 6% of net sales during the three months ended November 30, 2015. The top five customers accounted for 16%, 12% (a dealer account in Japan representing over 40 customers), 10%, 10%, and 9% of net sales during the three months ended November 30, 2014.

Accounts receivable concentration shows that four customers comprised 16%, 13%, 8%, and 8% (a dealer account in Japan representing over 40 customers) of accounts receivable at November 30, 2015. Accounts receivable concentration shows that five customers comprised 16%, 12% (a dealer account in Japan representing over 40 customers), 10%, 10%, and 9% of accounts receivable at November 30, 2014.

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. Although past consolidation and downsizing in the pharmaceutical industry has not negatively impacted our sales, future consolidation and downsizing could have an impact on our revenues and earnings going forward.