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SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Feb. 29, 2024
Accounting Policies [Abstract]  
Disaggregation of Revenue
The components of disaggregation of revenue for the three and six months ended February 29, 2024, and February 28, 2023, were as follows:
Three Months EndedSix Months Ended
(in thousands)February 29, 2024February 28, 2023February 29, 2024February 28, 2023
Software licenses
Point in time$11,354 $10,191 $18,675 $15,993 
Over time260 296 528 568 
Services   
Over time6,691 5,263 13,602 11,153 
Total revenue$18,305 $15,750 $32,805 $27,714 
Schedule of Geographical Revenues Geographical revenues for the three and six months ended February 29, 2024, and February 28, 2023, were as follows:
(in thousands)Three Months Ended
February 29, 2024February 28, 2023
$% of total $% of total
Americas$12,461 68 %$10,589 67 %
EMEA4,665 25 %3,618 23 %
Asia Pacific1,179 7 %1,543 10 %
Total$18,305 100 %$15,750 100 %
Six Months Ended
(in thousands)February 29, 2024February 28, 2023
$% of total $% of total
Americas$23,352 71 %$19,089 69 %
EMEA6,967 21 %5,748 21 %
Asia Pacific2,486 8 %2,877 10 %
Total$32,805 100 %$27,714 100 %
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 EndedSix Months Ended
(in thousands)February 29, 2024February 28, 2023February 29, 2024February 28, 2023
Balance, beginning of period$37 $12 $46 $12 
Provision for credit losses(7)— (16)— 
Balance, end of period$30 $12 $30 $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 the asset life or lease term
Lease, Cost
Supplemental balance sheet information related to operating leases was as follows as of February 29, 2024:
(in thousands)
Right of use assets$1,062 
Lease liabilities, current$425 
Lease liabilities, long-term$607 
Operating lease costs$239 
Weighted-average remaining lease term2.91 years
Weighted-average discount rate5.31 %
Schedule of Finite-Lived Intangible Assets
The following table summarizes other intangible assets as of February 29, 2024:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book Value
Trade namesNone$4,210 $— $4,210 
Covenants not to compete
Straight line 2 to 3 years
30 11 19 
Other internal use software
Straight line 3 to 5 years
542 23 519 
Customer relationships
Straight line 8 to 14 years
8,230 2,283 5,947 
ERP
Straight line 15 years
2,529 289 2,240 
$15,541 $2,606 $12,935 
The following table summarizes other intangible assets as of August 31, 2023:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book Value
Trade namesNone$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 are as follows:
(in thousands)
Years Ending August 31,
Amount
Remainder of 2024$494 
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 February 29, 2024, and August 31, 2023:
February 29, 2024
(in thousands)Amortized costUnrealized gainsUnrealized lossesFair value
Short-term investments:
Commercial notes (due within one year)$67,473 $— $(177)$67,296 
Term deposits (due within one year)4,000 — — 4,000 
Total short-term investments$71,473 $— $(177)$71,296 
Long-term investments:
Commercial notes (due within 15 months)$9,024 $91 $— $9,115 
Total investments$80,497 $91 $(177)$80,411 
August 31, 2023
(in thousands)Amortized costUnrealized gainsUnrealized lossesFair value
Short-term investments:
Commercial notes (due within one year)$53,940 $— $(115)$53,825 
Term deposits (due within one year)4,000 — — 4,000 
Total short-term investments$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 at August 31, 2023$4,780 
Change in fair value of contingent consideration330 
 Contingent consideration at February 29, 2024$5,110 
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination
The following table summarizes intellectual property as of February 29, 2024:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book
Value
Termination/nonassertion agreement-TSRL Inc.
Straight line 10 years
$6,000 $5,875 $125 
Developed technologies–DILIsym acquisition
Straight line 9 years
2,850 2,136 714 
Intellectual rights of Entelos Holding Company
Straight line 10 years
50 27 23 
Developed technologies–Lixoft acquisition
Straight line 16 years
8,010 1,926 6,084 
Developed technologies–Immunetrics acquisition
Straight line 5 years
1,080 153 927 
$17,990 $10,117 $7,873 
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–Lixoft acquisition
Straight line 16 years
8,010 1,678 6,332 
Developed technologies–Immunetrics acquisition
Straight line 5 years
1,080 45 1,035 
$17,990 $9,301 $8,689 
Schedule of Future Amortization Expenses
Estimated future amortization of intellectual property for the next five fiscal years is as follows:
(in thousands)
Years Ending August 31,
Amount
Remainder of 2024$618 
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 and six months ended February 29, 2024, and February 28, 2023, were as follows:
Three Months EndedSix Months Ended
(in thousands)February 29, 2024February 28, 2023February 29, 2024February 28, 2023
Numerator
Net income attributable to common shareholders$4,029 $4,174 $5,974 $5,419 
Denominator
Weighted-average number of common shares outstanding during the period19,975 20,112 19,961 20,200 
Dilutive effect of stock options340 417 327 457 
Common stock and common stock equivalents used for diluted earnings per share20,315 20,529 20,288 20,657 
Schedule of Goodwill
Reconciliation of Goodwill for the six months ended February 29, 2024:
(in thousands)CPPQSPTotal
Balance, August 31, 2023$7,323 $11,776 $19,099 
Addition— — — 
Impairments— — — 
Balance, February 29, 2024$7,323 $11,776 $19,099