8. CONCENTRATIONS AND UNCERTAINTIES

6 Months Ended

Feb. 29, 2016

Risks and Uncertainties [Abstract]

CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that international sales accounted for 42.6% and 39.8% of net sales for the six months ended February 29, 2016 and February 28, 2015, respectively. Three customers accounted for 10% (a dealer account in Japan representing various customers), 6%, and 6% of sales for the six months ended February 26, 2016. Two customers accounted for 10% (a dealer account in Japan representing various customers) and 8% of sales for the six months ended February 28, 2015.

Accounts receivable concentrations shows that two customers comprised 12% (a dealer account in Japan representing various customers) and 11% of accounts receivable at February 29, 2016 compared to one customer (a dealer account in Japan representing various customers) that comprised 13% of accounts receivable at February 28, 2015.

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. Consolidation and downsizing in the pharmaceutical industry could have an impact on our revenues and earnings going forward.