SEGMENT AND GEOGRAPHIC REPORTING

12 Months Ended

Aug. 31, 2021

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC REPORTING

NOTE 11 – SEGMENT AND GEOGRAPHIC REPORTING

We account for segments and geographic revenues in accordance with guidance issued by the FASB. Our reportable segments are strategic business units that offer different products and services.

Results for each divisional segment and consolidated results are as follows for the years ended August 31, 2021, 2020 and 2019:

(in thousands)	Year ended August 31, 2021
	Simulations Plus		Cognigen		DILIsym			Lixoft		Eliminations			Total
Revenues	$	25,142	$	10,546	$	6,115		$	4,663	$	–		$	46,466
Income (loss) from operations	$	9,286	$	376	$	(112	)	$	1,703	$	–		$	11,253
Total assets	$	168,923	$	13,121	$	14,884		$	19,344	$	(36,294	)	$	179,978
Goodwill	$	–	$	4,789	$	5,598		$	2,534	$	–		$	12,921
Capital expenditures	$	1,212	$	279	$	18		$	118	$	–		$	1,627
Capitalized software costs	$	2,289	$	12	$	170		$	478	$	–		$	2,949
Depreciation and amortization	$	1,885	$	347	$	590		$	768	$	–		$	3,590

(in thousands)	Year ended August 31, 2020
	Simulations Plus		Cognigen		DILIsym		Lixoft*		Eliminations			Total
Revenues	$	21,961	$	11,105	$	6,948	$	1,575	$	–		$	41,589
Income from operations	$	7,374	$	1,770	$	1,744	$	717	$	–		$	11,605
Total assets	$	162,807	$	11,654	$	14,084	$	19,972	$	(40,095	)	$	168,422
Goodwill	$	–	$	4,789	$	5,598	$	2,534	$	–		$	12,921
Capital expenditures	$	111	$	87	$	31	$	2	$	–		$	231
Capitalized software costs	$	2,029	$	40	$	124	$	160	$	–		$	2,353
Depreciation and amortization	$	1,713	$	349	$	600	$	300	$	–		$	2,962

* As Lixoft was purchased on April 1, 2020, five months of activity is reflected for fiscal year 2020.

(in thousands)	Year ended August 31, 2019
	Simulations Plus		Cognigen		DILIsym		Eliminations			Total
Revenues	$	19,584	$	9,321	$	5,065	$	–		$	33,970
Income from operations	$	7,751	$	1,481	$	1,416	$	–		$	10,648
Total assets	$	38,535	$	11,196	$	13,168	$	(17,702	)	$	45,197
Goodwill	$	–	$	4,789	$	5,598	$	–		$	10,387
Capital expenditures	$	39	$	79	$	20	$	–		$	138
Capitalized software costs	$	1,482	$	114	$	172	$	–		$	1,768
Depreciation and amortization	$	1,806	$	364	$	580	$	–		$	2,750

Results for each business unit segment and consolidated results for the years ended August 31, 2021, 2020 and 2019 were as follows:

(in thousands)	Year ended August 31, 2021
	Software		Services		Total
Revenues	$	27,670	$	18,796	$	46,466
Cost of revenues		3,235		7,365		10,600
Gross profit	$	24,435	$	11,431	$	35,866
Gross margin		88%		61%		77%

Our software business and services business represented 60% and 40% of total revenue, respectively, for the year ended August 31, 2021.

(in thousands)	Year ended August 31, 2020
	Software		Services		Total
Revenues	$	21,587	$	20,002	$	41,589
Cost of revenues		2,883		7,766		10,649
Gross profit	$	18,704	$	12,236	$	30,940
Gross margin		87%		61%		74%

Our software business and services business represented 52% and 48% of total revenue, respectively, for the 2020 fiscal year.

(in thousands)	Year ended August 31, 2019
	Software		Services		Total
Revenues	$	18,479	$	15,491	$	33,970
Cost of revenues		2,957		6,069		9,026
Gross profit	$	15,522	$	9,422	$	24,944
Gross margin		84%		61%		73%

Our software business and services business represented 54% and 46% of total revenue, respectively, for the 2019 fiscal year.

In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the years ended August 31, 2021, 2020 and 2019 were as follows:

(in thousands)	Year ended August 31,
	2021					2020					2019
	$		% of total			$		% of total			$		% of total
Americas	$	32,549		70	%	$	29,674		71	%	$	22,576		67	%
EMEA		7,906		17			5,827		14			5,829		17
Asia Pacific		6,011		13			6,088		15			5,565		16
Total	$	46,466		100	%	$	41,589		100	%	$	33,970		100	%