CONCENTRATIONS AND UNCERTAINTIES

12 Months Ended

Aug. 31, 2023

Risks and Uncertainties [Abstract]

CONCENTRATIONS AND UNCERTAINTIES

CONCENTRATIONS AND UNCERTAINTIES

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, trade accounts receivable, and short-term investments. The Company holds cash and cash equivalents with balances that exceed FDIC insured limits. Cash maintained in excess of these limits is on deposit with a large, national bank. Accordingly, the Company does not have depository exposure to regional banks. In addition, the Company holds cash at a bank in France that is not FDIC-insured. Historically, the Company has not experienced any losses in such accounts, and management believes that the financial institutions at which its cash is held are stable; however, no assurances can be provided. While the Company may be exposed to credit losses due to the nonperformance of its counterparties, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows, or financial condition.

Revenue concentration shows that international sales accounted for 31%, 30%, and 31% of revenue for the years ended August 31, 2023, 2022, and 2021, respectively. Our three largest customers in terms of revenue accounted for 6%, 4%, and 3% of revenue, respectively, for the year ended August 31, 2023. Our three largest customers in terms of revenue accounted for 5%, 3%, and 3% of revenue, respectively, for the year ended August 31, 2022. Our three largest customers in terms of revenue accounted for 11%, 4%, and 3% of revenue, respectively, for the year ended August 31, 2021.

Accounts receivable concentrations show that our three largest customers in terms of accounts receivable each comprised between 4% and 6% of accounts receivable as of August 31, 2023; our three largest customers in terms of accounts receivable comprised between 4% and 8% of accounts receivable as of August 31, 2022.

We operate in the biosimulation market, which is highly competitive and changes rapidly. Our operating results could be significantly affected by our ability to develop new products and find new distribution channels for new and existing products.