SEGMENT REPORTING

3 Months Ended

Nov. 30, 2022

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTINGThe Company applies ASC 280, Segment Reporting, in determining reportable segments. The Company has two reportable segments: Software and Services. Segment information is presented in the same manner that the chief operating decision maker ("CODM") reviews certain financial information based on these reportable segments. The CODM reviews revenue and gross profit for both of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment.

No operating segments have been aggregated to form the reportable segments. The Company does not allocate assets at the reportable segment level as these are managed on an entity-wide group basis and, accordingly, the Company does not report asset information by segment. The Company does not allocate operating expenses that are managed on an entity-wide group basis and, accordingly, the Company does not allocate and report operating expenses at a segment level. There are no internal revenue transactions between the Company’s segments.

The following tables summarize the results for each segment for the three months ended November 30, 2022 and 2021:

(in thousands)	Three Months Ended November 30, 2022
	Software			Services			Total
Revenues	$	6,074		$	5,890		$	11,964
Cost of revenues	885			1,786			2,671
Gross profit	$	5,189		$	4,104		$	9,293
Gross margin	85		%	70		%	78		%

Our software business and services business represented 51% and 49% of total revenue, respectively, for the three months ended November 30, 2022.

(in thousands)	Three Months Ended November 30, 2021
	Software			Services			Total
Revenues	$	7,362		$	5,055		$	12,417
Cost of revenues	735			2,021			2,756
Gross profit	$	6,627		$	3,034		$	9,661
Gross margin	90		%	60		%	78		%

Our software business and services business represented 59% and 41% of total revenue, respectively, for the three months ended November 30, 2021.