8. CONCENTRATIONS AND UNCERTAINTIES

9 Months Ended

May 31, 2016

Risks and Uncertainties [Abstract]

CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that international sales accounted for 43.8% and 39.5% of net sales for the nine months ended May 31, 2016 and 2015, respectively. Four customers accounted for 8% (a dealer account in Japan representing various customers), 6%, 5% and 5% of sales for the nine months ended May 31, 2016. Three customers accounted for 8% (a dealer account in Japan representing various customers), 7%, and 5% of sales for the nine months ended May 31, 2015.

Accounts receivable concentrations shows that two customers comprised 15% and 11% (a dealer account in Japan representing various customers) of accounts receivable at May 31, 2016 compared to two customers (a dealer account in Japan representing various customers) that comprised 18% and 16% of accounts receivable at May 31, 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.