SEGMENT REPORTING

6 Months Ended

Feb. 28, 2023

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

The 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 February 28, 2023, and 2022:

(in thousands)	Three Months Ended February 28, 2023
	Software			Services			Total
Revenues	$	10,487		$	5,263		$	15,750
Cost of revenues	843			1,777			2,620
Gross profit	$	9,644		$	3,486		$	13,130
Gross margin	92		%	66		%	83		%

Our software business and services business represented 67% and 33% of total revenue, respectively, for the three months ended February 28, 2023.

(in thousands)	Three Months Ended February 28, 2022
	Software			Services			Total
Revenues	$	9,758		$	5,038		$	14,796
Cost of revenues	780			2,050			2,830
Gross profit	$	8,978		$	2,988		$	11,966
Gross margin	92		%	59		%	81		%

Our software business and services business represented 66% and 34% of total revenue, respectively, for the three months ended February 28, 2022.

The following tables summarize the results for each segment for the six months ended February 28, 2023, and 2022:

(in thousands)	Six Months Ended February 28, 2023
	Software			Services			Total
Revenues	$	16,561		$	11,153		$	27,714
Cost of revenues	1,728			3,563			5,291
Gross profit	$	14,833		$	7,590		$	22,423
Gross margin	90		%	68		%	81		%

Our software business and services business represented 60% and 40% of total revenue, respectively, for the six months ended February 28, 2023.

(in thousands)	Six Months Ended February 28, 2022
	Software			Services			Total
Revenues	$	17,120		$	10,093		$	27,213
Cost of revenues	1,515			4,071			5,586
Gross profit	$	15,605		$	6,022		$	21,627
Gross margin	91		%	60		%	79		%

Our software business and services business represented 63% and 37% of total revenue, respectively, for the six months ended February 28, 2022.