SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 2023

Accounting Policies [Abstract]

Disaggregation of Revenue

The components of disaggregation of revenue for the three months ended November 30, 2023 and 2022 were as follows:

	Three Months Ended November 30,
(in thousands)	2023		2022
Software licenses
Point in time	$	7,321	$	5,802
Over time	268		272
Services
Over time	6,911		5,890
Total revenue	$	14,500	$	11,964

Schedule of Geographical Revenues

Geographical revenues for the three months ended November 30, 2023 and 2022 were as follows:

	Three Months Ended November 30,
(in thousands)	2023				2022
	$		% of total		$		% of total
Americas	$	10,891	75	%	$	8,500	71	%
EMEA	2,302		16	%	2,130		18	%
Asia Pacific	1,307		9	%	1,334		11	%
Total	$	14,500	100	%	$	11,964	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 November 30,
(in thousands)	2023		2022
Balance, beginning of period	$	46	$	12
Provision for expected credit losses	(9)		—
Balance, end of period	$	37	$	12

Property and Equipment estimated useful lives

Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows:

Equipment	5 years
Computer equipment	3 to 7 years
Furniture and fixtures	5 to 7 years
Leasehold improvements	Shorter of the asset life or lease term

Lease, Cost

Supplemental balance sheet information related to operating leases was as follows as of November 30, 2023:

(in thousands)
Right of use assets	$	1,118
Lease liabilities, current	$	420
Lease liabilities, long-term	$	669
Operating lease costs	$	117
Weighted-average remaining lease term	3.12 years
Weighted-average discount rate	4.93		%

Schedule of Finite-Lived Intangible Assets

The following table summarizes other intangible assets as of November 30, 2023:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net Book Value
Trade names	None	$	4,210	$	—	$	4,210
Covenants not to compete	Straight line 2 to 3 years	30		7		23
Other internal use software	Straight line 3 to 5 years	306		13		293
Customer relationships	Straight line 8 to 14 years	8,230		2,085		6,145
ERP	Straight line 15 years	2,529		246		2,283
		$	15,305	$	2,351	$	12,954

The following table summarizes other intangible assets as of August 31, 2023:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net Book Value
Trade names	None	$	4,210	$	—	$	4,210
Covenants not to compete	Straight line 3 years	30		3		27
Other internal use software	Straight line 3 to 5 years	350		10		340
Customer relationships	Straight line 8 to 14 years	8,230		1,887		6,343
ERP	Straight line 15 years	2,112		207		1,905
		$	14,932	$	2,107	$	12,825

Finite-lived Intangible Assets Amortization Expense

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

(in thousands)
Years ending August 31,	Amount
Remainder of 2024	$	716
2025	$	957
2026	$	945
2027	$	898
2028	$	755

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis

The following tables summarize our short-term investments as of November 30, 2023, and August 31, 2023:

	November 30, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Commercial notes (due within one year)	$	70,101	$	—	$	(33)	$	70,068
Term deposits (due within one year)	4,000		—		—		4,000
Total	$	74,101	$	—	$	(33)	$	74,068

	August 31, 2023
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Commercial notes (due within one year)	$	53,940	$	—	$	(115)	$	53,825
Term deposits (due within one year)	4,000		—		—		4,000
Total	$	57,940	$	—	$	(115)	$	57,825

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following is a reconciliation of contingent consideration at fair value:

(in thousands)	Amount
Contingent consideration as of August 31, 2023	$	4,780
Change in fair value of contingent consideration	(110)
Contingent consideration as of November 30, 2023	$	4,670

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

The following table summarizes intellectual property as of November 30, 2023:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net Book Value
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years	$	6,000	$	5,725	$	275
Developed technologies–DILIsym acquisition	Straight line 9 years	2,850		2,057		793
Intellectual rights of Entelos Holding Company	Straight line 10 years	50		26		24
Developed technologies–Immunetrics acquisition	Straight line 5 years	1,080		99		981
Developed technologies–Lixoft acquisition	Straight line 16 years	8,010		1,802		6,208
		$	17,990	$	9,709	$	8,281

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

Schedule of Future Amortization Expenses

Estimated future amortization of intellectual property for the next five years is as follows:

(in thousands)
Years ending August 31,	Amount
Remainder of 2024	$	1,026
2025	$	1,009
2026	$	933
2027	$	693
2028	$	648

Schedule of Earnings Per Share, Basic and Diluted

The components of basic and diluted earnings per share for the three months ended November 30, 2023 and 2022 were as follows:

	Three Months Ended November 30,
(in thousands)	2023		2022
Numerator
Net income attributable to common shareholders	$	1,945	$	1,245
Denominator
Weighted-average number of common shares outstanding during the period	19,947		20,286
Dilutive effect of stock options	332		539
Common stock and common stock equivalents used for diluted earnings per share	20,279		20,825

Schedule of Goodwill

Reconciliation of Goodwill for the three months ended November 30, 2023:

(in thousands)	CPP		QSP		Total
Balance, August 31, 2023	$	7,323	$	11,776	$	19,099
Addition	—		—		—
Impairments	—		—		—
Balance, November 30, 2023	$	7,323	$	11,776	$	19,099