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SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Feb. 28, 2023
Accounting Policies [Abstract]  
Disaggregation of Revenue
The components of disaggregation of revenue for the three and six months ended February 28, 2023 and 2022 were as follows:
Three Months Ended February 28,Six Months Ended February 28,
(in thousands)2023202220232022
Software licenses
Point in time$10,191 $9,493 $15,993 $16,600 
Over time296 265 568 520 
Services   
Over time5,263 5,038 11,153 10,093 
Total revenue$15,750 $14,796 $27,714 $27,213 
Schedule of Geographical Revenues Geographical revenues for the three and six months ended February 28, 2023, and 2022 were as follows:
(in thousands)Three Months Ended February 28,
20232022
$% of total $% of total
Americas$10,589 67 %$9,696 66 %
EMEA3,618 23 %3,706 25 %
Asia Pacific1,543 10 %1,394 9 %
Total$15,750 100 %$14,796 100 %
(in thousands)Six Months Ended February 28,
20232022
$% of total $% of total
Americas$19,089 69 %$18,155 67 %
EMEA5,748 21 %6,731 25 %
Asia Pacific2,877 10 %2,327 8 %
Total$27,714 100 %$27,213 100 %
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 February 28, 2023:
(in thousands)
Right of use assets$1,190 
Lease liabilities, current$432 
Lease liabilities, long-term$747 
Operating lease costs$252 
Weighted-average remaining lease term2.55 years
Weighted-average discount rate3.41 %
Schedule of Finite-Lived Intangible Assets
The following table summarizes other intangible assets as of February 28, 2023:
(in thousands)Amortization
Period		Acquisition ValueAccumulated AmortizationNet Book
Value
Trade namesNone$2,910 $— $2,910 
Covenants not to compete
Straight line 3 years
60 58 2 
Other internal use software
Straight line 3 to 5 years
77 2 75 
Customer relationships
Straight line 8 to 14 years
4,450 1,614 2,836 
ERP
Straight line 15 years
1,702 138 1,564 
$9,199 $1,812 $7,387 
The following table summarizes other intangible assets as of August 31, 2022:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book
Value
Trade namesNone$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
Remainder of 2023$251 
2024$489 
2025$489 
2026$489 
2027$442 
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis We invest a portion of our excess cash balances in short-term debt securities. Investments at February 28, 2023, consisted of corporate bonds and term deposits with maturities remaining of less than 12 months. Under the fair value hierarchy, the fair market values of the Company's cash equivalents and investments are Level 1. We may also invest excess cash balances in certificates of deposit, money market accounts, government-sponsored enterprise securities, and/or commercial paper. We account for our investments in accordance with ASC 320, Investments – Debt and Equity Securities. As of February 28, 2023, all investments were classified as held-to-maturity securities, as we have the positive intent and ability to hold these securities until maturity. We believe unrealized losses on investments were primarily caused by rising interest rates rather than changes in credit quality, and, accordingly, we have not recorded an allowance for credit losses on our debt securities as of February 28, 2023, and August 31, 2022.
The following tables summarize our short-term investments as of February 28, 2023, and August 31, 2022:
February 28, 2023
(in thousands)Amortized CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Commercial notes (due within one year)$71,552 $— $(175)$71,377 
Term deposits (due within one year)4,500 4,500 
Total$76,052 $— $(175)$75,877 
August 31, 2022
(in thousands)Amortized CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Commercial notes (due within one year)$72,168 $— $(839)$71,329 
Term deposits (due within one year)4,500 4,500 
Total$76,668 $— $(839)$75,829 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The following table summarizes intellectual property as of February 28, 2023:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book
Value
Termination/nonassertion agreement-TSRL Inc.
Straight line 10 years
6,000 5,275 725 
Developed technologies–DILIsym acquisition
Straight line 9 years
2,850 1,821 1,029 
Intellectual rights of Entelos Holding Company
Straight line 10 years
50 23 27 
Developed technologies–Lixoft acquisition
Straight line 16 years
8,010 1,433 6,577 
$16,910 $8,552 $8,358 
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
Remainder of 2023$694 
2024$1,218 
2025$793 
2026$717 
2027$477 
Schedule of Earnings Per Share, Basic and Diluted The components of basic and diluted earnings per share for the three and six months ended February 28, 2023, and 2022 were as follows:
Three Months Ended February 28,Six Months Ended February 28,
(in thousands)2023202220232022
Numerator
Net income attributable to common shareholders$4,174 $4,409 $5,419 $7,435 
Denominator
Weighted-average number of common shares outstanding during the year20,112 20,177 20,200 20,164 
Dilutive effect of stock options417 568 457 574 
Common stock and common stock equivalents used for diluted earnings per share20,529 20,745 20,657 20,738