SEGMENT REPORTING

12 Months Ended

Aug. 31, 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 as follows for the years ended August 31, 2023, 2022, and 2021:

(in thousands)	Year ended August 31, 2023
	Software			Services			Total
Revenues	$	36,517		$	23,060		$	59,577
Cost of revenues	3,627			8,003			11,630
Gross profit	$	32,890		$	15,057		$	47,947
Gross margin	90		%	65		%	80		%

Our software business and services business represented 61% and 39% of total revenue, respectively, for the year ended August 31, 2023.

(in thousands)	Year ended August 31, 2022
	Software			Services			Total
Revenues	$	32,642		$	21,264		$	53,906
Cost of revenues	3,060			7,762			10,822
Gross profit	$	29,582		$	13,502		$	43,084
Gross margin	91		%	63		%	80		%

Our software business and services business represented 61% and 39% of total revenue, respectively, for the year ended August 31, 2022.

(in thousands)	Year ended August 31, 2021
	Software			Services			Total
Revenues	$	27,670		$	18,796		$	46,466
Cost of revenues	3,235			7,365			10,600
Gross profit	$	24,435		$	11,431		$	35,866
Gross margin	88		%	61		%	77		%

Our software business and services business represented 60% and 40% of total revenue, respectively, for the year ended August 31, 2021.