SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Nov. 30, 2021

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

Balance sheet information related to operating leases

(in thousands)
Right-of-use assets	$	1,146
Lease liabilities, current	$	338
Lease liabilities, long-term	$	810
Operating lease costs	$	141
Weighted average remaining lease term		2.25 years
Weighted average discount rate		3.79%

Schedule of reconciliation of goodwill

(in thousands)	Cognigen		DILIsym		Lixoft		Total
Balance, August 31, 2021	$	4,789	$	5,598	$	2,534	$	12,921
Addition		–		–		–		–
Impairments		–		–		–		–
Balance, November 30, 2021	$	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	$	41,680	$	–	$	–	$	41,680
Short-term investments	$	82,364	$	–	$	–	$	82,364
Acquisition-related contingent consideration obligations	$	–	$	–	$	3,338	$	3,338

August 31, 2021:

(in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	36,984	$	–	$	–	$	36,984
Short-term investments	$	86,484	$	–	$	–	$	86,484
Acquisition-related contingent consideration obligations	$	–	$	–	$	3,217	$	3,217

Reconciliation of contingent consideration

(in thousands)
Value at August 31, 2021	$	3,217
Contingent consideration payments		–
Change in value of contingent consideration		121
Value at November 30, 2021	$	3,338

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	$	73	$	2
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years		6,000		4,525		1,475
Developed technologies–DILIsym acquisition	Straight line 9 years		2,850		1,425		1,425
Intellectual rights of Entelos Holding Corp.	Straight line 10 years		50		16		34
Developed technologies–Lixoft acquisition	Straight line 16 years		8,010		834		7,176
		$	16,985	$	6,873	$	10,112

The following table summarizes intellectual property as of August 31, 2021:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net Book Value
Royalty Agreement buy out-Enslein Research	Straight line 10 years	$	75	$	71	$	4
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years		6,000		4,375		1,625
Developed technologies–DILIsym acquisition	Straight line 9 years		2,850		1,346		1,504
Intellectual rights of Entelos Holding Corp.	Straight line 10 years		50		15		35
Developed technologies–Lixoft acquisition	Straight line 16 years		8,010		709		7,301
		$	16,985	$	6,516	$	10,469

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	$	997	$	103
Trade name	None		500		–		500
Covenants not to compete	Straight line 5 years		50		50		–
DILIsym
Customer relationships	Straight line 10 years		1,900		855		1,045
Trade name	None		860		–		860
Covenants not to compete	Straight line 4 years		80		80		–
Lixoft
Customer relationships	Straight line 14 years		2,550		304		2,246
Trade name	None		1,550		–		1,550
Covenants not to compete	Straight line 3 years		60		33		27
		$	8,650	$	2,319	$	6,331

The following table summarizes our other intangible assets as of August 31, 2021: 

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net Book Value
Cognigen
Customer relationships	Straight line 8 years	$	1,100	$	963	$	137
Trade name	None		500		–		500
Covenants not to compete	Straight line 5 years		50		50		–
DILIsym
Customer relationships	Straight line 10 years		1,900		807		1,093
Trade name	None		860		–		860
Covenants not to compete	Straight line 4 years		80		80		–
Lixoft
Customer relationships	Straight line 14 years		2,550		258		2,292
Trade name	None		1,550		–		1,550
Covenants not to compete	Straight line 3 years		60		28		32
		$	8,650	$	2,186	$	6,464

Schedule of earnings per share

	Three months ended November 30,
(in thousands)	2021		2020
Numerator:
Net income attributable to common shareholders	$	3,026	$	2,479
Denominator:
Weighted-average number of common shares outstanding during the period		20,150		19,930
Dilutive effect of stock options		596		869
Common stock and common stock equivalents used for diluted earnings per share		20,746		20,799