SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 2022

Accounting Policies [Abstract]

Disaggregation of Revenue

The components of disaggregation of revenue for the three months ended November 30, 2022 and 2021 were as follows:

	Three months ended November 30,
(in thousands)	2022		2021
Software licenses
Point in time	$	5,802	$	7,107
Over time	272		255
Services
Over time	5,890		5,055
Total revenue	$	11,964	$	12,417

Schedule of Geographical Revenues

Geographical revenues for the three months ended November 30, 2022 and 2021 were as follows:

(in thousands)	Three Months Ended November 30,
	2022				2021
	$		% of total		$		% of total
Americas	$	8,500	71	%	$	8,459	68	%
EMEA	2,130		18	%	3,025		24	%
Asia Pacific	1,334		11	%	933		8	%
Total	$	11,964	100	%	$	12,417	100	%

Property and Equipment estimated useful lives

Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows:

Equipment	5 years
Computer equipment	3 to 7 years
Furniture and fixtures	5 to 7 years
Leasehold improvements	Shorter of life of asset or lease

Lease, Cost

Supplemental balance sheet information related to operating leases was as follows as of November 30, 2022:

(in thousands)
Right of use assets	$	1,305
Lease liabilities, current	$	448
Lease liabilities, long-term	$	844
Operating lease costs	$	126
Weighted-average remaining lease term	2.80 years
Weighted-average discount rate	3.41		%

Schedule of Finite-Lived Intangible Assets

The following table summarizes other intangible assets as of November 30, 2022:

(in thousands)	Amortization Period	Acquisition value		Accumulated amortization		Net book value
Trade names	None	$	2,910	$	—	$	2,910
Covenants not to compete	Straight line 3 years	60		53		7
Other internal use software	Straight line 3 to 5 years	39		1		38
Customer relationships	Straight line 8 to 14 years	4,450		1,528		2,922
ERP	Straight line 15 years	1,702		109		1,593
		$	9,161	$	1,691	$	7,470

The following table summarizes other intangible assets as of August 31, 2022:

(in thousands)	Amortization Period	Acquisition value		Accumulated amortization		Net book value
Trade names	None	$	2,910	$	—	$	2,910
Covenants not to compete	Straight line 3 years	60		48		12
Customer relationships	Straight line 8 to 14 years	5,550		2,534		3,016
ERP	Straight line 15 years	1,702		80		1,622
		$	10,222	$	2,662	$	7,560

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	$	501
2024	$	489
2025	$	489
2026	$	489
2027	$	442

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis

The following table summarizes fair value measurements as of November 30, 2022, and August 31, 2022, for assets and liabilities measured at fair value on a recurring basis:

	November 30, 2022
(in thousands)	Level I		Level II		Level III		Total
Cash and cash equivalents	$	49,392	$	—	$	—	$	49,392
Short-term investments	$	82,139	$	—	$	—	$	82,139

	August 31, 2022
(in thousands)	Level I		Level II		Level III		Total
Cash and cash equivalents	$	51,567	$	—	$	—	$	51,567
Short-term investments	$	76,668	$	—	$	—	$	76,668

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The following table summarizes intellectual property as of November 30, 2022:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net Book Value
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years	6,000		5,125		875
Developed technologies–DILIsym acquisition	Straight line 9 years	2,850		1,741		1,109
Intellectual rights of Entelos Holding Company	Straight line 10 years	50		21		29
Developed technologies–Lixoft acquisition	Straight line 16 years	8,010		1,314		6,696
		$	16,910	$	8,201	$	8,709

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 Research	Straight line 10 years	$	75	$	75	$	—
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years	6,000		4,975		1,025
Developed technologies–DILIsym acquisition	Straight line 9 years	2,850		1,662		1,188
Intellectual rights of Entelos Holding Company	Straight line 10 years	50		20		30
Developed technologies–Lixoft acquisition	Straight line 16 years	8,010		1,196		6,814
		$	16,985	$	7,928	$	9,057

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	$	1,393
2024	$	1,068
2025	$	793
2026	$	638
2027	$	477

Schedule of Earnings Per Share, Basic and Diluted

The components of basic and diluted earnings per share for the three months ended November 30, 2022 and 2021 were as follows:

	Three Months Ended November 30,
(in thousands)	2022		2021
Numerator
Net income attributable to common shareholders	$	1,245	$	3,026
Denominator
Weighted-average number of common shares outstanding during the year	20,286		20,150
Dilutive effect of stock options	539		596
Common stock and common stock equivalents used for diluted earnings per share	20,825		20,746