8. CONCENTRATIONS AND UNCERTAINTIES

3 Months Ended

Nov. 30, 2016

Risks and Uncertainties [Abstract]

CONCENTRATIONS AND UNCERTAINTIES

Revenue concentration shows that international sales accounted for 31.8% and 45.9% of net sales for the three months ended November 30, 2016 and 2015, respectively. Three customers accounted for 9%, 7% (a dealer account in Japan representing various customers), and 6% of net sales during the three months ended November 30, 2016. The top four customers accounted for 11%, 9% (a dealer account in Japan representing various customers), 6%, and 6% of net sales during the three months ended November 30, 2015.

Accounts receivable concentration shows that four customers comprised 19%, 8% (a dealer account in Japan representing various customers), 7%, and 5% of accounts receivable at November 30, 2016. Accounts receivable concentration shows that four customers comprised 16%, 13%, 8%, and 8% (a dealer account in Japan representing various customers) of accounts receivable at November 30, 2015.

We operate in the computer software industry, 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.

The majority of our customers are in the pharmaceutical industry. Consolidation and downsizing in the pharmaceutical industry could have an impact on our revenues and earnings going forward.