ACQUISITION (Tables)

12 Months Ended

Aug. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the allocation of the preliminary purchase price for Immunetrics:

(in thousands)
Base merger consideration	$	12,000
Fair value of earnout	4,100
Cash on hand	1,247
Adjustment to purchase price for closing indebtedness	(122)
Net working capital adjustment	(377)
D&O Tail	(7)
Bonus compensation to Immunetrics staff	(1,586)
Total purchase price	15,255
Fair value of identifiable assets acquired:
Cash	1,132
Accounts receivable	511
Security deposit	12
ROU asset	227
Deferred tax assets	799
Trade names	1,800
Customer relationships	3,780
Developed Tech	1,080
Non-competes	30
	9,371
Fair value of liabilities assumed:
Lease liability	227
Selling shareholders' D&O tail responsibility	7
Deferred revenue	60
	294
Fair value of identifiable assets acquired and liabilities assumed	9,077
Goodwill	$	6,178

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination

The following table summarizes intellectual property as of August 31, 2023:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net Book Value
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years	$	6,000	$	5,575	$	425
Developed technologies–DILIsym acquisition	Straight line 9 years	2,850		1,978		872
Intellectual rights of Entelos Holding Company	Straight line 10 years	50		25		25
Developed technologies–Immunetrics acquisition	Straight line 5 years	1,080		45		1,035
Developed technologies–Lixoft acquisition	Straight line 16 years	8,010		1,678		6,332
		$	17,990	$	9,301	$	8,689

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

The following table presents the details of intangible assets acquired.

	Estimated useful life	Amount
Indefinite-lived:
Trade names	Indefinite	$	1,800
Definite-lived:
Customer relationships	9 years	3,780
Developed technologies	5 years	1,080
Covenants not to compete	2 years	30
Total definite-lived intangible assets		4,890
Total intangible assets		$	6,690

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future amortization of finite-lived intangible assets for the next five years is as follows:

(in thousands)
Years ending August 31,	Amount
2024	$	580
2025	$	580
2026	$	580
2027	$	580
2028	$	535

Business Acquisition, Pro Forma Information

	(Pro forma) 2023 *		(Pro forma) 2022
(in thousands)	(unaudited)		(unaudited)
Revenue	$	63,054	$	57,010
Net income	$	11,422	$	11,889
* Balances include actual results from acquisition date of June 16, 2023 through August 31, 2023.