CONTRACTS PAYABLE

9 Months Ended

May 31, 2022

Other Liabilities Disclosure [Abstract]

Lixoft Acquisition Liabilities:

On April 1, 2020, we acquired Lixoft. The agreement provided for a 24-month, $2.0 million holdback provision against certain representations and warranties, comprised of $1.3 million of cash and shares of common stock valued at $0.7 million issued and deposited into an escrow account at the date of the agreement. In April 2022, the shares of common stock were released from escrow and $1.3 million of cash was paid to settle the holdback liability. In addition, based on a revenue-growth formula for the two years subsequent to April 1, 2020, the agreement called for earnout payments of up to $5.5 million (two-thirds cash and one-third newly issued, unregistered shares of our common stock). The former shareholders of Lixoft could earn up to $2.0 million the first year and $3.5 million in year two. In June 2021, $2.0 million was paid out under the first earnout payment, which was comprised of $1.3 million of cash and shares of common stock valud at $0.7 million. In May 2022, $3.5 million was paid out under the second earnout payment, which was comprised of $2.3 million cash and shares of common stock valud at $1.2 million.

As of May 31, 2022 and August 31, 2021, the following liabilities have been recorded:


(in thousands)	May 31, 2022		August 31, 2021
Holdback liability	$	—	$	1,333
Earnout liability	—		3,217
Sub total	$	—	$	4,550
Less: current portion	—		4,550
Long-term portion	$	—	$	—