SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 2020

Accounting Policies [Abstract]

Property and Equipment estimated useful lives

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

Schedule of lease cost

(in thousands)
Right of use assets	$	768
Lease Liabilities, Current	$	395
Lease Liabilities, Long-term	$	376
Operating lease costs	$	165
Weighted Average remaining lease term		2.0 years
Weighted Average Discount rate		4.25%

Schedule of reconciliation of goodwill

(in thousands)	Cognigen		DILIsym		Lixoft		Total
Balance, August 31, 2020	$	4,789	$	5,598	$	2,534	$	12,921
Addition		–		–		–		–
Impairments		–		–		–		–
Balance, November 30, 2020	$	4,789	$	5,598	$	2,534	$	12,921

Schedule of fair value measurements

(in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	27,651	$	–	$	–	$	27,651
Short-term investments	$	91,115	$	–	$	–		91,115
Acquisition-related contingent consideration obligations	$	–	$	–	$	4,852	$	4,852

August 31, 2020:

(in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	49,207	$	–	$	–	$	49,207
Short-term investments	$	66,804	$	–	$	–	$	66,804
Acquisition-related contingent consideration obligations	$	–	$	–	$	4,731	$	4,731

Reconciliation of contingent consideration value

(in thousands)

Value at August 31, 2020	$	4,731
Contingent consideration payments		–
Change in value of contingent consideration		121
Value at November 30, 2020	$	4,852

Schedule of Intellectual property

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Royalty Agreement buy out-Enslein Research	Straight line 10 years	$	75	$	66	$	9
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years		6,000		3,925		2,075
Developed technologies–DILIsym acquisition	Straight line 9 years		2,850		1,108		1,742
Intellectual rights of Entelos Holding Corp.	Straight line 10 years		50		11		39
Developed technologies–Lixoft acquisition	Straight line 16 years		8,010		334		7,676
		$	16,985	$	5,444	$	11,541

The following table summarizes intellectual property as of August 31, 2020:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Royalty Agreement buy out-Enslein Research	Straight line 10 years	$	75	$	64	$	11
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years		6,000		3,775		2,225
Developed technologies–DILIsym acquisition	Straight line 9 years		2,850		1,029		1,821
Intellectual rights of Entelos Holding Corp.	Straight line 10 years		50		10		40
Developed technologies–Lixoft acquisition	Straight line 16 years		8,010		209		7,801
		$	16,985	$	5,087	$	11,898

Schedule of other intangible assets

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Cognigen
Customer relationships	Straight line 8 years	$	1,100	$	859	$	241
Trade name	None		500		–		500
Covenants not to compete	Straight line 5 years		50		50		–
DILIsym
Customer relationships	Straight line 10 years		1,900		665		1,235
Trade name	None		860		–		860
Covenants to compete	Straight line 4 years		80		70		10
Lixoft
Customer relationships	Straight line 14 years		2,550		122		2,428
Trade name	None		1,550		–		1,550
Covenants to compete	Straight line 3 years		60		13		47
		$	8,650	$	1,779	$	6,871

The following table summarizes the Company’s other intangible assets as of August 31, 2020:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net book value
Cognigen
Customer relationships	Straight line 8 years	$	1,100	$	825	$	275
Trade name	None		500		–		500
Covenants not to compete	Straight line 5 years		50		50		–
DILIsym
Customer relationships	Straight line 10 years		1,900		618		1,282
Trade name	None		860		–		860
Covenants to compete	Straight line 4 years		80		65		15
Lixoft
Customer relationships	Straight line 14 years		2,550		76		2,474
Trade name	None		1,550		–		1,550
Covenants to compete	Straight line 3 years		60		8		52
		$	8,650	$	1,642	$	7,008

Schedule of earnings per share

	Three months ended November 30,
(in thousands)	2020		2019
Numerator:
Net income attributable to common shareholders	$	2,479	$	2,058
Denominator:
Weighted-average number of common shares outstanding during the period		19,930		17,609
Dilutive effect of stock options		869		698
Common stock and common stock equivalents used for diluted earnings per share	$	20,799	$	18,307