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SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
May 31, 2023
Accounting Policies [Abstract]  
Disaggregation of Revenue
The components of disaggregation of revenue for the three and nine months ended May 31, 2023, and 2022 were as follows:
Three Months Ended May 31,Nine Months Ended May 31,
(in thousands)2023202220232022
Software licenses
Point in time$10,348 $9,380 $26,341 $25,980 
Over time284 267 852 787 
Services   
Over time5,602 5,312 16,755 15,405 
Total revenue$16,234 $14,959 $43,948 $42,172 
Schedule of Geographical Revenues Geographical revenues for the three and nine months ended May 31, 2023, and 2022 were as follows:
(in thousands)Three Months Ended May 31,
20232022
$% of total $% of total
Americas$10,774 66 %$11,163 75 %
EMEA3,358 21 %1,925 13 %
Asia Pacific2,102 13 %1,871 12 %
Total$16,234 100 %$14,959 100 %
(in thousands)Nine Months Ended May 31,
20232022
$% of total $% of total
Americas$29,863 68 %$29,318 70 %
EMEA9,106 21 %8,656 21 %
Asia Pacific4,979 11 %4,198 9 %
Total$43,948 100 %$42,172 100 %
Accounts Receivable, Allowance for Credit Loss
The activity in the allowance for credit losses related to our trade receivables is summarized as follows:
Three Months Ended May 31,Nine Months Ended May 31,
2023202220232022
Balance, beginning of period$12 $12 $12 $78 
Provision for expected credit losses75 — 75 (66)
Write-offs(38)— (38)— 
Balance, end of period$49 $12 $49 $12 
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 May 31, 2023:
(in thousands)
Right of use assets$982 
Lease liabilities, current$330 
Lease liabilities, long-term$612 
Operating lease costs$348 
Weighted-average remaining lease term3.83 years
Weighted-average discount rate4.71 %
Schedule of Finite-Lived Intangible Assets
The following table summarizes other intangible assets as of May 31, 2023:
(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 60 — 
Other internal use software
Straight line 3 to 5 years
109 6 103 
Customer relationships
Straight line 8 to 14 years
4,450 1,706 2,744 
ERP
Straight line 15 years
2,112 171 1,941 
$9,641 $1,943 $7,698 
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 uture amortization of finite-lived intangible assets for the next five years is as follows:
(in thousands)
Year Ending August 31,
Amount
Remainder of 2023$138 
2024$513 
2025$513 
2026$513 
2027$466 
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 May 31, 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 I. 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 May 31, 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 May 31, 2023, and August 31, 2022.
The following tables summarize our short-term investments as of May 31, 2023, and August 31, 2022:
May 31, 2023
(in thousands)Amortized CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
Commercial notes (due within one year)$64,234 $— $(150)$64,084 
Term deposits (due within one year)3,000 — — 3,000 
Total$67,234 $— $(150)$67,084 
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 May 31, 2023:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book
Value
Termination/nonassertion agreement-TSRL Inc.
Straight line 10 years
6,000 5,425 575 
Developed technologies–DILIsym acquisition
Straight line 9 years
2,850 1,901 949 
Intellectual rights of Entelos Holding Company
Straight line 10 years
50 25 25 
Developed technologies–Lixoft acquisition
Straight line 16 years
8,010 1,552 6,458 
$16,910 $8,903 $8,007 
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
Estimated future amortization of intellectual property for the next five years is as follows:
(in thousands)
Year Ending August 31,
Amount
Remainder of 2023$343 
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 nine months ended May 31, 2023, and 2022 were as follows:
Three Months Ended May 31,Nine Months Ended May 31,
(in thousands)2023202220232022
Numerator
Net income attributable to common shareholders$4,008 $4,087 $9,427 $11,522 
Denominator
Weighted-average number of common shares outstanding during the year19,972 20,212 20,123 20,180 
Dilutive effect of stock options383 556 389 551 
Common stock and common stock equivalents used for diluted earnings per share20,355 20,768 20,512 20,731