SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Feb. 28, 2022

Accounting Policies [Abstract]

Schedule of disaggregation of revenue

(in thousands)	Three Months Ended February 28,				Six Months Ended February 28,
	2022		2021		2022		2021
Software licenses:
Point in time	$	9,493	$	7,536	$	16,600	$	13,472
Over time		265		291		520		503
Consulting services:
Over time		5,038		5,320		10,093		9,873
Total revenue	$	14,796	$	13,147	$	27,213	$	23,848

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	$	1,653
Lease liabilities, current	$	336
Lease liabilities, long-term	$	1,314
Operating lease costs	$	256
Weighted average remaining lease term		3.55 years
Weighted average discount rate		3.41%

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, February 28, 2022	$	4,789	$	5,598	$	2,534	$	12,921

Schedule of fair value measurements

February 28, 2022:
(in thousands)	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	60,373	$	–	$	–	$	60,373
Short-term investments	$	63,922	$	–	$	–	$	63,922
Acquisition-related contingent consideration obligations	$	–	$	–	$	3,460	$	3,460

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		243
Value at February 28, 2022	$	3,460

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	$	75	$	–
Termination/nonassertion agreement-TSRL Inc.	Straight line 10 years		6,000		4,675		1,325
Developed technologies–DILIsym acquisition	Straight line 9 years		2,850		1,504		1,346
Intellectual rights of Entelos Holding Corp.	Straight line 10 years		50		18		32
Developed technologies–Lixoft acquisition	Straight line 16 years		8,010		959		7,051
		$	16,985	$	7,231	$	9,754

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
Simulations Plus
ERP	Straight line 15 years	$	1,702	$	24	$	1,678
Cognigen
Customer relationships	Straight line 8 years		1,100		1,031		69
Trade name	None		500		–		500
Covenants not to compete	Straight line 5 years		50		50		–
DILIsym
Customer relationships	Straight line 10 years		1,900		903		997
Trade name	None		860		–		860
Covenants not to compete	Straight line 4 years		80		80		–
Lixoft
Customer relationships	Straight line 14 years		2,550		349		2,201
Trade name	None		1,550		–		1,550
Covenants not to compete	Straight line 3 years		60		38		22
		$	10,352	$	2,475	$	7,877

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

Earnings Per Share (Details - Basic and Diluted Earnings per share)

(in thousands)	Three Months Ended February 28,				Six Months Ended February 28,
	2022		2021		2021		2020
Numerator:
Net income attributable to common shareholders	$	4,409	$	3,211	$	7,435	$	5,690
Denominator:
Weighted-average number of common shares outstanding during the period		20,177		20,006		20,164		19,968
Dilutive effect of stock options		568		836		574		818
Common stock and common stock equivalents used for diluted earnings per share		20,745		20,842		20,738		20,786