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

July 6, 2022

(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 10th 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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SLP	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02    Results of Operations and Financial Condition

On July 6, 2022, Simulations Plus, Inc., a California corporation (the “Company”), issued a press release announcing financial results for its second quarter of fiscal year 2022 ended May 31, 2022. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

Item 7.01    Regulation FD Disclosure

On July 6, 2022, as part of the press release referenced above, the Company announced that its board of directors has declared a quarterly cash dividend of $0.06 per share of common stock, payable on August 1, 2022 to shareholders of record as of July 25, 2022.

In addition, on July 6, 2022, the Company held an investor conference call reporting its financial results for its third quarter of fiscal year 2022 ended May 31, 2022. The PowerPoint presentation, which was used for this investor conference call, is attached as Exhibit 99.2 to this Report.

In accordance with General Instructions B.2 of Form 8-K, the information in this Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Report.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This Report, including the disclosures set forth herein and Exhibits 99.1 and 99.2 attached hereto, 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 reports hereafter furnished, including in other publicly available documents filed with the Securities and Exchange Commission (the “Commission”), to the Company’s stockholders 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 issued on July 6, 2022.
99.2	PowerPoint presentation used at the Investor Conference Call on July 6, 2022.
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

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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: July 6, 2022	By: /s/ Will Frederick
	Will Frederick
	Chief Financial Officer

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EX-99.1

Exhibit 99.1

Simulations Plus Reports Third Quarter Fiscal 2022 Financial Results

Total revenue growth of 17%; Software revenue growth of 16%; Services revenue growth of 19%;

Diluted Earnings Per Share (EPS) growth of 11%;

Board of Directors announces quarterly dividend of $0.06 per share

LANCASTER, CA,July 6, 2022 – Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its third quarter of fiscal 2022, ended May 31, 2022.

“While the growth trend in our software business continued during the third quarter, our services business showed a strong recovery with 19% growth,” said Shawn O’Connor, chief executive officer of Simulations Plus. “The services backlog we built over the past few quarters set up this recovery, driven by PBPK and PKPD projects. PBPK was especially strong as we saw deeper penetration of modeling resulting from expanded use cases and perceived value. Looking at our software business, our efforts to expand our addressable market continued to pay off as we saw increased upsells, continued expansion in Asia, and deeper penetration of modeling and simulation with smaller biotech firms.”

Third Quarter Fiscal 2022 Financial Highlights (compared with the corresponding period last fiscal year):

•Total revenue increased 17% to $15.0 million;

•Software revenue increased 16% to $9.7 million, representing 64% of total revenue;

•Services revenue increased 19% to $5.3 million, representing 36% of total revenue;

•Gross profit increased 20% to $12.4 million; gross margin was 83%;

•Net income and diluted EPS of $4.1 million and $0.20, compared to $3.8 million and $0.18, respectively;

•Adjusted EBITDA of $6.3 million, representing 42% of total revenue.

YTD Financial Highlights (compared with the corresponding period last fiscal year):

•Total revenue increased 15% to $42.2 million;

•Software revenue increased 20% to $26.8 million, representing 63% of total revenue;

•Services revenue increased 8% to $15.4 million, representing 37% of total revenue;

•Gross profit increased 18% to $34.0 million; gross margin was 81%;

•Net income and diluted EPS of $11.5 million and $0.56, compared to $9.5 million and $0.46, respectively;

•Adjusted EBITDA of $18.7 million, representing 44% of total revenue.

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Fiscal 2022 Outlook

“Now that we’ve completed our third quarter and have one quarter remaining in the fiscal year, we are reiterating our full-year revenue guidance at $52-53 million, and tightening the growth rate to 12-15%. Our fourth quarter has historically been impacted by seasonality related to our industry in the summer months and we expect this year to be no different. For services, there tends to be slower engagement on projects during the summer months. For software, growth tends to be skewed towards the first half of our fiscal year, which coincides with new calendar year budgets for many of our customers. Based on the successful performance of our software business through the third quarter we expect software revenue to exceed 60% of total revenue for the fiscal year.” concluded O’Connor

Quarterly Dividend

The company’s Board of Directors declared a cash dividend of $0.06 per share of the company’s common stock, payable on August 1, 2022, to shareholders of record as of July 25, 2022. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.

Environmental, Social, and Governance (ESG)

We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our website to read our ESG Report.

Webcast and Conference Call Details

Shawn O’Connor, chief executive officer, and Will Frederick, chief financial officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss details of the company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-201-389-0879. The webcast will be available on our website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call.

Non-GAAP Definition

Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, and any acquisition or financial transaction-related expenses. Adjusted EBITDA represents a measure that we believe is customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that Adjusted EBITDA is useful in evaluating our core operating results. However, Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income or operating income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. The company’s Adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items.

About Simulations Plus

Serving clients worldwide for 25 years, Simulations Plus is a leading provider in the biosimulation market providing software and consulting services supporting drug discovery, development, research, and regulatory submissions. We offer solutions that bridge machine learning, physiologically based pharmacokinetics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. Our technology is licensed and applied by major pharmaceutical, biotechnology, and regulatory agencies worldwide. For more information, visit our website at www.simulations-plus.com. Follow us on LinkedIn | Twitter | YouTube.

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Forward-Looking Statements

Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like “believe,” “expect,” and “anticipate” mean that these are our best estimates as of this writing, but there can be no assurances that expected or anticipated results or events will actually take place, so 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 new software and 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, our ability to identify and close acquisitions on terms favorable to the company, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission.

Investor Relations Contacts:

Renee Bouche

Simulations Plus Investor Relations

661-723-7723

renee.bouche@simulations-plus.com

Brian Siegel

Hayden IR

346-396-8696

brian@haydenir.com

--Tables follow—

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Unaudited)

(in thousands, except per common share amounts)	Three Months Ended				Nine Months Ended
	2022		2021		2022		2021
Revenues
Software	$	9,647	$	8,298	$	26,767	$	22,337
Services	5,312		4,479		15,405		14,288
Total revenues	14,959		12,777		42,172		36,625
Cost of revenues
Software	730		800		2,245		2,448
Services	1,829		1,671		5,900		5,367
Total cost of revenues	2,559		2,471		8,145		7,815
Gross profit	12,400		10,306		34,027		28,810
Operating expenses
Research and development	655		670		2,439		2,771
Selling, general, and administrative	6,799		5,094		17,371		14,960
Total operating expenses	7,454		5,764		19,810		17,731
Income from operations	4,946		4,542		14,217		11,079
Other income (expense), net	(112)		(51)		6		(169)
Income before income taxes	4,834		4,491		14,223		10,910
Provision for income taxes	(747)		(704)		(2,701)		(1,433)
Net income	$	4,087	$	3,787	$	11,522	$	9,477
Earnings per share
Basic	$	0.20	$	0.19	$	0.57	$	0.47
Diluted	$	0.20	$	0.18	$	0.56	$	0.46
Weighted-average common shares outstanding
Basic	20,212		20,105		20,180		20,014
Diluted	20,768		20,802		20,731		20,750
Other Comprehensive income, net of tax
Foreign currency translation adjustments	24		40		(251)		36
Comprehensive Income	$	4,111	$	3,827	$	11,271	$	9,513

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SIMULATIONS PLUS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	(Unaudited)		(Audited)
(in thousands, except share and per share amounts)	May 31, 2022		August 31, 2021
ASSETS
Current assets
Cash and cash equivalents	$	42,353	$	36,984
Accounts receivable, net of allowance for doubtful accounts of $12 and $78	18,587		9,851
Prepaid income taxes	322		1,012
Prepaid expenses and other current assets	3,472		4,846
Short-term investments	80,120		86,620
Total current assets	144,854		139,313
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $15,376 and $14,438	8,974		7,646
Property and equipment, net	607		1,838
Operating lease right-of-use assets	1,533		1,276
Intellectual property, net of accumulated amortization of $7,585 and $6,516	9,400		10,469
Other intangible assets, net of accumulated amortization of $2,635 and $2,186	7,717		6,464
Goodwill	12,921		12,921
Other assets	217		51
Total assets	$	186,223	$	179,978
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	426	$	387
Accrued payroll and other expenses	2,947		5,604
Contracts payable - current portion	—		4,550
Operating lease liability - current portion	459		382
Deferred revenue	2,083		651
Total current liabilities	5,915		11,574
Long-term liabilities
Deferred income taxes, net	1,680		1,726
Operating lease liability	1,069		896
Total liabilities	8,664		14,196
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 and additional paid-in capital —50,000,000 shares authorized, 20,234,654 and 20,141,521 shares issued and outstanding	137,556		133,418
Retained earnings	40,297		32,407
Accumulated other comprehensive loss	(294)		(43)
Total shareholders' equity	177,559		165,782
Total liabilities and shareholders' equity	$	186,223	$	179,978

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SIMULATIONS PLUS, INC.

Trended Financial Information*

(Unaudited)

	2021																		2022											2021			2022
(in millions except earnings per share amounts)	Q1					Q2			Q3					Q4					Q1			Q2					Q3			Fiscal Year			Fiscal YTD
Software revenue
Gastroplus	$	3.3				$	4.5		$	5.4				$	3.1				$	4.0		$	5.5				$	6.4		$	16.3		$	15.9
MonolixSuite	1.2					1.6			0.9					0.8					1.6			2.2					1.0			4.4			4.8
ADMET Predictor	1.2					1.2			1.5					1.2					1.5			1.4					1.6			5.0			4.5
Other	0.5					0.6			0.5					0.3					0.3			0.7					0.6			1.9			1.6
Total software revenue	$	6.2				$	7.8		$	8.3				$	5.4		$	—	$	7.4		$	9.8				$	9.6		$	27.7		$	26.8
Services revenue
PKPD	$	2.2				$	2.6		$	1.9				$	2.3				$	2.3		$	2.2				$	2.5		$	9.1		$	7.0
QSP/QST	1.1					1.7			1.2					1.1					1.5			1.5					1.2			5.1			4.2
PBPK	0.6					0.9			0.7					0.7					0.9			0.9					1.4			3.0			3.2
Other	0.5					—			0.6					0.3					0.3			0.4					0.3			1.4			1.0
Total services revenue	$	4.5				$	5.3		$	4.4				$	4.4				$	5.0		$	5.0		$	—	$	5.3		$	18.8		$	15.4
Total consolidated revenue	$	10.7		$	—	$	13.1		$	12.8		$	—	$	9.8		$	—	$	12.4		$	14.8		$	—	$	15.0		$	46.5		$	42.2
Gross Margin
Software	86.9		%			89.0		%	90.0		%			85.0		%			90.0		%	92.0		%			92.4		%	88.0		%	91.6		%
Services	63.9		%			61.0		%	63.0		%			55.0		%			60.0		%	59.3		%			65.6		%	61.0		%	61.7		%
Total	77.3		%			77.9		%	80.7		%			71.7		%			77.8		%	80.9		%			82.9		%	77.2		%	80.7		%
Income from operations	$	3.1				$	3.5		$	4.5				$	0.2				$	3.8		$	5.5				$	4.9		$	11.3		$	14.2
Operating Margin	28.5		%			26.6		%	35.6		%			1.8		%			30.6		%	37.0		%			33.1		%	24.2		%	33.7		%
Net Income	$	2.5				$	3.2		$	3.8				$	0.3				$	3.0		$	4.4				$	4.1		$	9.8		$	11.5
Diluted Earnings Per Share	$	0.12				$	0.15		$	0.18				$	0.01				$	0.15		$	0.21				$	0.20		$	0.47		$	0.56
Adjusted EBITDA	$	4.3				$	5.0		$	5.9				$	1.7				$	5.3		$	7.2				$	6.3		$	16.9		$	18.7
Cash Flow from Operations	$	5.3				$	1.3		$	4.3				$	8.3				$	3.6		$	2.6				$	3.8		$	19.2		$	10.0
Revenue Breakdown by Region
Americas	$	7.1				$	8.7		$	9.7				$	7.1				$	8.5		$	9.7				11.2			32.5			29.3
EMEA	2.5					3.1			1.5					0.9					3.0			3.7					1.9			7.9			8.7
Asia Pacific	1.1					1.4			1.7					1.8					0.9			1.4					1.9			6.0			4.2
Total consolidated revenue	$	10.7				$	13.1		$	12.8				$	9.8		—		$	12.4		$	14.8				$	15.0		$	46.6		$	42.2
Software Performance Metrics
Average Revenue per Customer (in thousands)
Commercial	$	74.0				$	84.0		$	98.0				$	65.0				$	71.0		$	101.0				$	95.0
Services Performance Metrics
Backlog	$	12.0				$	11.2		$	12.4				$	13.0				$	15.4		$	17.0				$	16.7

*Numbers may not add due to rounding

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SIMULATIONS PLUS, INC.

Reconciliation of Adjusted EBITDA to Net Income

(Unaudited)

	2021								2022						2021		2022
(in millions)	Q1		Q2		Q3		Q4		Q1		Q2		Q3		Fiscal Year		Fiscal YTD
Net Income	$	2.5	$	3.2	$	3.8	$	0.3	$	3.0	$	4.4	$	4.1	$	9.8	$	11.5
Excluding:
Interest income and expense, net	(0.1)		0.0		0.0		0.0		(0.1)		(0.1)		(0.1)		(0.2)		(0.3)
Provision for income taxes	0.5		0.2		0.7		(0.1)		0.8		1.1		0.7		1.3		2.7
Depreciation and amortization	0.9		0.9		0.9		1.0		0.8		1.0		0.9		3.6		2.7
Stock-based compensation	0.5		0.7		0.6		0.6		0.6		0.7		0.7		2.4		2.0
Adjusted EBITDA	$	4.3	$	5.0	$	5.9	$	1.7	$	5.3	$	7.2	$	6.3	$	16.9	$	18.7

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EX-99.2

1 | NASDAQ: SLP July 6, 2022 1 Earnings Call - Q3 - FY22

2 | NASDAQ: SLP With the exception of historical information, the matters discussed in this presentation are forward- looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so 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 new software and 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, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission. Safe Harbor Statement

3 | NASDAQ: SLP • Strong Q3 Performance ▪ Continued double-digit software performance (16% growth) ▪ Service returns to growth (19%) ◦ Demonstrated scientific leadership ▪ New software releases ▪ Key pharma and regulatory collaborations ▪ 2nd annual MIDD conference 11% Diluted EPS Growth 17% Revenue Growth 42% Adj. EBITDA % of Revenue 34% Services Backlog Growth Third Quarter Highlights

4 | NASDAQ: SLP GastroPlus® MonolixSuite® +8% ◦ 10 new commercial customers ◦ Continued focus on expansion of geographic coverage Third Quarter Software Highlights +19% • 6 new commercial customers • 14 upsells • 16 peer reviewed journal articles published in Q3 ADMET Predictor® ◦ ADMET Predictor® v10.4 released ◦ 6 new commercial customers ◦ 9 upsells ◦ Continued progress with AIDD collaboration +7% +20% +31% +14% Q3 Revenue Growth YTD Revenue Growth Q3 Revenue Growth YTD Revenue Growth Q3 Revenue Growth YTD Revenue Growth

5 | NASDAQ: SLP Third Quarter Services Highlights PKPD • Good 1H bookings contributes to 40% increase in projects in Q3 • Rising utilization and project pricing yields QSP/QST • Good Q2 bookings commenced project activity in Q3, but expected to more fully impact future quarters PBPK ◦ Accelerating demand in this market segment continues indicative of increased industry adoption of PBPK techniques +34% +50%+19% +29% +1% +83% Revenue Growth Backlog Growth Projects Growth Q3 Revenue Growth Q3 Revenue Growth Q3 Revenue Growth

6 | NASDAQ: SLP FY22 Outlook Growth Targets: 12% to 15% Total Revenue Growth 55% to 60% Software Revenue % of Total Revenue 40% to 45% Service Revenue % of Total Revenue Commentary: ◦ Software business continues to deliver strong momentum. ◦ Services business normalizing and long- term outlook remains positive; strong backlog growth and robust pipeline activity ◦ M&A remains strategic enhancement to organic growth objectives

7 | NASDAQ: SLP Financial Results

8 | NASDAQ: SLP Q4 Revenue (in millions) (in millions) Software RevenueTotal Revenue Services Revenue Revenue - Q3 +17% +16% +19% 3Q22 Mix 3Q21 Mix

9 | NASDAQ: SLP Q4 Revenue (in millions) Software RevenueTotal Revenue Services Revenue +15% +20% +8% Revenue – YTD FY22 Mix FY21 Mix (in millions)

10 | NASDAQ: SLP Gross Margin Trends - Q3

11 | NASDAQ: SLP Gross Margin Trends – YTD

12 | NASDAQ: SLP Software Product as % of Software Revenue Q3 FY22 Other YTD FY22 Other Software Revenue by Product

13 | NASDAQ: SLP Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q3 Commercial Customers Renewal Rates

14 | NASDAQ: SLP Avg. Revenue per Customer (in thousands) Renewal Rates Software Performance Metrics – YTD Commercial Customers University+ Customers: 190 in 49 countries

15 | NASDAQ: SLP Software Product as % of Software Revenue Q3 FY22 YTD FY22 Services Revenue by Type PKPD QSP/QST PBPK Other PKPD QSP/QST PBPK Other

16 | NASDAQ: SLP Backlog Services Performance Metrics Total Projects

17 | NASDAQ: SLP Income Statement Summary - Q3 (in millions, except EPS) 3Q22 % of Rev 3Q21 % of Rev Revenue $15.0 100% $12.8 100% Revenue Growth 17% 4% Gross profit 12.4 83% 10.3 81% R&D 0.7 4% 0.7 5% SG&A 6.8 45% 5.1 40% Total operating expense 7.5 50% 5.8 45% Income from operations 4.9 33% 4.5 36% Income before income taxes 4.8 32% 4.5 35% Income taxes (0.7) 5% (0.7) 6% Effective tax rate 15% 16% Net income $4.1 27% $3.8 30% Diluted earnings per share $0.20 $0.18 Adjusted EBITDA $6.3 42% $5.9 46%

18 | NASDAQ: SLP Income Statement Summary – YTD (in millions, except EPS) 3Q22 % of Rev 3Q21 % of Rev Revenue $42.2 100% $36.6 100% Revenue Growth 15% 14% Gross profit 34.0 81% 28.8 79% R&D 2.4 6% 2.8 8% SG&A 17.4 41% 15.0 41% Total operating expense 19.8 47% 17.7 48% Income from operations 14.2 34% 11.1 30% Income before income taxes 14.2 34% 10.9 30% Income taxes (2.7) 6% (1.4) 4% Effective tax rate 19% 13% Net income $11.5 27% $9.5 26% Diluted earnings per share $0.56 $0.46 Adjusted EBITDA $18.7 44% $15.2 42%

19 | NASDAQ: SLP Balance Sheet Summary (in millions) May 31, 2022 August 31, 2021 Cash and short-term investments $122.5 $123.6 Total current assets 144.9 139.3 Total assets 186.2 180.0 Current liabilities 5.9 11.6 Long-term liabilities 2.7 2.6 Total liabilities 8.7 14.2 Shareholders’ equity 177.6 165.8 Total liabilities and shareholders’ equity 186.2 180.0

20 | NASDAQ: SLP Conclusion • Industry adoption of model informed drug development tools and techniques continues to expand • Scientific credibility with academia and regulatory agencies • Software business with accelerated revenue growth rates and expanded product functionality • Services business normalizing with improved backlog and strong bookings SECURE LEADERSHIP POSITION IN BIOSIMULATION MARKET

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Cover	Jul. 06, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 06, 2022
Entity Registrant Name	Simulations Plus, Inc.
Entity Central Index Key	0001023459
Entity Incorporation, State or Country Code	CA
Entity File Number	001-32046
Entity Tax Identification Number	95-4595609
Entity Address, Address Line One	42505 10th Street West
Entity Address, City or Town	Lancaster
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93534-7059
City Area Code	661
Local Phone Number	723-7723
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	SLP
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false