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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Aug. 31, 2022
Accounting Policies [Abstract]  
Disaggregation of Revenue
The components of disaggregation of revenue for the years ended August 31, 2022, 2021, and 2020 were as follows:
Year ended August 31,
(in thousands)202220212020
Software licenses
Point in time$31,587 $26,725 $20,668 
Over time1,055 945 919 
Services   
Over time21,264 18,796 20,002 
Total revenue$53,906 $46,466 $41,589 
Schedule of Geographical Revenues Geographical revenues for the years ended August 31, 2022, 2021, and 2020 were as follows:
(in thousands)Year ended August 31,
202220212020
$% of total $% of total $% of total
Americas$37,681 70 %$32,549 70 %$29,674 71 %
EMEA10,388 19 %7,906 17 %5,827 14 %
Asia Pacific5,837 11 %6,011 13 %6,088 15 %
Total$53,906 100 %$46,466 100 %$41,589 100 %
Property and Equipment estimated useful lives Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows:
Equipment5 years
Computer equipment
3 to 7 years
Furniture and fixtures
5 to 7 years
Leasehold improvementsShorter of life of asset or lease
Lease, Cost
Supplemental balance sheet information related to operating leases was as follows as of August 31, 2022:
(in thousands)
Right of use assets$1,420 
Lease liabilities, current$461 
Lease liabilities, long-term$943 
Operating lease costs$520 
Weighted-average remaining lease term3.05 years
Weighted-average discount rate3.41 %
Schedule of Goodwill
Reconciliation of Goodwill as of August 31, 2022, and 2021:
(in thousands)CognigenDILIsymLixoftTotal
Balance, August 31, 2020$4,789 $5,598 $2,534 $12,921 
Addition— — — — 
Impairments— — — — 
Balance, August 31, 20214,789 5,598 2,534 12,921 
Addition— — — — 
Impairments— — — — 
Balance, August 31, 2022$4,789 $5,598 $2,534 $12,921 
Schedule of Finite-Lived Intangible Assets
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net book
value
Simulations Plus
ERPStraight line 15 years$1,702 $80 $1,622 
Cognigen
Customer relationshipsStraight line 8 years1,100 1,100 — 
Trade NameNone500 — 500 
DILIsym
Customer relationshipsStraight line 10 years1,900 997 903 
Trade NameNone860 — 860 
Lixoft
Customer relationshipsStraight line 14 years2,550 437 2,113 
Trade NameNone1,550 — 1,550 
Covenants not to competeStraight line 3 years60 48 12 
$10,222 $2,662 $7,560 
The following table summarizes other intangible assets as of August 31, 2021:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net book
value
Cognigen
Customer relationshipsStraight line 8 years$1,100 $963 $137 
Trade NameNone500 — 500 
Covenants not to competeStraight line 5 years50 50 — 
DILIsym
Customer relationshipsStraight line 10 years1,900 807 1,093 
Trade NameNone860 — 860 
Covenants not to competeStraight line 4 years80 80 — 
Lixoft
Customer relationshipsStraight line 14 years2,550 258 2,292 
Trade NameNone1,550 — 1,550 
Covenants not to competeStraight line 3 years60 28 32 
$8,650 $2,186 $6,464 
Finite-lived Intangible Assets Amortization Expense
Future amortization of finite-lived intangible assets for the next five years is as follows:
(in thousands)
Year ending
August 31,
Amount
2023$493 
2024$481 
2025$481 
2026$481 
2027$434 
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis
The following table summarizes fair value measurements as of August 31, 2022, and August 31, 2021, for assets and liabilities measured at fair value on a recurring basis:
August 31, 2022
(in thousands)Level 1Level 2Level 3Total
Cash and cash equivalents$51,567 $— $— $51,567 
Short-term investments$76,668 $— $— $76,668 
August 31, 2021
(in thousands)Level 1Level 2Level 3Total
Cash and cash equivalents$36,984 $— $— $36,984 
Short-term investments$86,620 $— $— $86,620 
Acquisition-related contingent consideration obligations$— $— $3,217 $3,217 
Reconciliation of Contingent Consideration Value
The following is a reconciliation of contingent consideration value:
(in thousands)
Value as of August 31, 2021$3,217 
Contingent consideration payments in cash(2,334)
Contingent consideration payments in stock(1,166)
Change in value of contingent consideration283 
Value as of August 31, 2022$— 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The following table summarizes intellectual property as of August 31, 2022:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book
Value
Royalty Agreement buy out-Enslein ResearchStraight line 10 years$75 $75 $— 
Termination/nonassertion agreement-TSRL Inc.Straight line 10 years6,000 4,975 1,025 
Developed technologies–DILIsym acquisitionStraight line 9 years2,850 1,662 1,188 
Intellectual rights of Entelos Holding CompanyStraight line 10 years50 20 30 
Developed technologies–Lixoft acquisitionStraight line 16 years8,010 1,196 6,814 
$16,985 $7,928 $9,057 
The following table summarizes intellectual property as of August 31, 2021:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book
Value
Royalty Agreement buy out-Enslein ResearchStraight line 10 years$75 $71 $4 
Termination/nonassertion agreement-TSRL Inc.Straight line 10 years6,000 4,375 1,625 
Developed technologies–DILIsym acquisitionStraight line 9 years2,850 1,346 1,504 
Intellectual rights of Entelos Holding CompanyStraight line 10 years50 15 35 
Developed technologies–Lixoft acquisitionStraight line 16 years8,010 709 7,301 
$16,985 $6,516 $10,469 
Schedule of Future Amortization Expenses
Future amortization of intellectual property for the next five years is as follows:
(in thousands)
Year ending
August 31,
Amount
2023$1,373 
2024$1,198 
2025$773 
2026$697 
2027$457 
Schedule of Earnings Per Share, Basic and Diluted The components of basic and diluted earnings per share for the years ended August 31, 2022, 2021, and 2020 were as follows:
August 31,
(in thousands)202220212020
Numerator
Net income attributable to common shareholders$12,483 $9,782 $9,332 
Denominator
Weighted-average number of common shares outstanding during the year20,196 20,045 17,819 
Dilutive effect of stock options553 698 719 
Common stock and common stock equivalents used for diluted earnings per share20,749 20,743 18,538