CONTRACTS PAYABLE

6 Months Ended

Feb. 28, 2022

Other Liabilities Disclosure [Abstract]

CONTRACTS PAYABLE

NOTE 5: CONTRACTS PAYABLE

Lixoft Acquisition Liabilities:

On April 1, 2020, we acquired Lixoft. The agreement provided for a 24-month, $2.0 million holdback provision against certain representations and warrantees, comprised of $1.3 million of cash and shares of common stock valued at $667 thousand issued at the date of the agreement. In addition, based on a revenue-growth formula for the two years subsequent to April 1, 2020, the agreement calls for earnout payments of up to $5.5 million (two-thirds cash and one-third newly issued, unregistered shares of our common stock). The former shareholders of Lixoft can earn up to $2.0 million the first year and $3.5 million in year two. In June 2021, $2.0 million was paid out under the first earnout payment, which was comprised of $1.3 million of cash and $0.7 million worth of common stock.

As of February 28, 2022 and August 31, 2021, the following liabilities have been recorded: 

(in thousands)	February 28, 2022		August 31, 2021
Holdback liability	$	1,333	$	1,333
Earnout liability		3,460		3,217
Sub total	$	4,793	$	4,550
Less: current portion		4,793		4,550
Long-term portion	$	–	$	–