Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Nov. 15, 2013 | Feb. 28, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'SIMULATIONS PLUS INC | ' | ' |
Entity Central Index Key | '0001023459 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Aug-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--08-31 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $39,168,468 |
Entity Common Stock, Shares Outstanding | ' | 16,041,894 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Current assets | ' | ' |
Cash and cash equivalents | $10,179,298 | $12,701,075 |
Prepaid income taxes | 301,573 | 153,896 |
Accounts receivable, net of allowance for doubtful accounts of $0 | 1,910,615 | 1,451,864 |
Contracts receivable | 203,913 | 18,893 |
Prepaid expenses and other current assets | 192,173 | 150,856 |
Deferred income taxes | 184,258 | 193,712 |
Total current assets | 12,971,830 | 14,670,296 |
Long-term assets | ' | ' |
Capitalized computer software development costs, net of accumulated amortization of $5,801,578 and $5,084,690 | 2,891,169 | 2,479,468 |
Property and equipment, net (note 3) | 117,987 | 107,410 |
Intellectual property, net of accumulated amortization of $11,250 and $3,750 | 63,750 | 71,250 |
Other assets | 18,445 | 18,445 |
Total assets | 16,063,181 | 17,346,869 |
Current liabilities | ' | ' |
Accounts payable | 146,011 | 177,509 |
Accrued payroll and other expenses | 311,209 | 312,912 |
Accrued bonuses to officer | 60,000 | 60,000 |
Accrued income taxes | 0 | 733,233 |
Other current liabilities | 19,859 | 0 |
Deferred revenue | 89,227 | 131,782 |
Total current liabilities | 626,306 | 1,415,436 |
Long-term liabilities | ' | ' |
Deferred income taxes | 1,146,389 | 788,857 |
Other long-term liabilities | 47,993 | 0 |
Total liabilities | 1,820,688 | 2,204,293 |
Shareholders' equity (note 5) | ' | ' |
Preferred stock, $0.001 par value 10,000,000 shares authorized no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value 50,000,000 shares authorized 16,030,894 and 15,927,806 shares issued and outstanding | 4,502 | 4,399 |
Additional paid-in capital | 4,842,794 | 4,628,366 |
Retained earnings | 9,395,197 | 10,509,811 |
Total shareholders' equity | 14,242,493 | 15,142,576 |
Total liabilities and shareholders' equity | $16,063,181 | $17,346,869 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts (in Dollars) | $0 | $0 |
Accumulated amortization of computer software development costs (in Dollars) | 5,801,578 | 5,084,690 |
Accumulated amortization on intellectual property (in Dollars) | $11,250 | $3,750 |
Preferred stock par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value (in Dollars per share) | $0.00 | $0.00 |
Common stock shares authorized | 50,000,000 | 50,000,000 |
Common stock shares issued | 16,030,894 | 15,927,806 |
Common stock shares outstanding | 16,030,894 | 15,927,806 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Income Statement [Abstract] | ' | ' |
Net sales | $10,070,770 | $9,448,608 |
Cost of sales | 1,646,530 | 1,510,148 |
Gross profit | 8,424,240 | 7,938,460 |
Operating expenses | ' | ' |
Selling, general, and administrative | 3,549,495 | 3,379,017 |
Research and development | 802,374 | 947,556 |
Total operating expenses | 4,351,869 | 4,326,573 |
Income from operations | 4,072,371 | 3,611,887 |
Other income (expense) | ' | ' |
Interest income | 49,492 | 89,265 |
Miscellaneous income | 35,488 | 76,149 |
Gain on currency exchange | 99,429 | 177,790 |
Gain on sale of assets | 0 | -433 |
Interest expense | 0 | -3 |
Total other income (expense) | 184,409 | 342,768 |
Income from continuing operations before provision for income taxes | 4,256,780 | 3,954,655 |
Provision for income taxes (note 6) | -1,370,182 | -1,142,693 |
Income from continuing operations | 2,886,598 | 2,811,962 |
Discontinued operations: | ' | ' |
Gain (loss) from discontinued operations, net of tax | 0 | -249,898 |
Gain on sale of Words+, net of tax | 0 | 465,820 |
Results of discontinued operations | 0 | 215,922 |
Net Income | $2,886,598 | $3,027,884 |
Basic earnings per share: | ' | ' |
Continuing operations | $0.18 | $0.18 |
Discontinued operations | $0 | $0.01 |
Net basic earning per share | $0.18 | $0.19 |
Diluted earnings per share | ' | ' |
Continuing operations | $0.18 | $0.18 |
Discontinued operations | $0 | $0.01 |
Net diluted earning per share | $0.18 | $0.19 |
Weighted-average common shares outstanding | ' | ' |
Basic | 15,996,432 | 15,763,674 |
Diluted | 16,319,983 | 16,151,873 |
STATEMENTS_OF_SHAREHOLDERS_EQU
STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Beginning Balance, Amount at Aug. 31, 2011 | $4,044 | $4,167,650 | $9,864,921 | $14,036,615 |
Beginning Balance, Shares at Aug. 31, 2011 | 15,572,943 | ' | ' | ' |
Exercise of stock options, Amount | 355 | 301,286 | ' | 301,641 |
Exercise of stock options, Shares | 354,863 | ' | ' | ' |
Stock-based Compensation | ' | 181,521 | ' | 181,521 |
Deferred tax adjustments - Change in prior year tax refund | ' | -36,868 | ' | -36,868 |
Deferred tax adjustments - Current deferred tax adjustments | ' | 14,777 | ' | 14,777 |
Declaration of Dividend | ' | ' | -2,382,994 | -2,382,994 |
Net income | ' | ' | 3,027,884 | 3,027,884 |
Ending Balance, Amount at Aug. 31, 2012 | 4,399 | 4,628,366 | 10,509,811 | 15,142,576 |
Ending Balance, Shares at Aug. 31, 2012 | 15,927,806 | ' | ' | ' |
Exercise of stock options, Amount | 103 | 27,882 | ' | 27,985 |
Exercise of stock options, Shares | 103,088 | ' | ' | ' |
Stock-based Compensation | ' | 115,740 | ' | 115,740 |
Declaration of Dividend | ' | ' | -4,001,212 | -4,001,212 |
Excess tax benefits from share-based arrangement, Amount | ' | 70,806 | ' | ' |
Excess tax benefits from share-based arrangement, Shares | 70,806 | ' | ' | ' |
Net income | ' | ' | 2,886,598 | 2,886,598 |
Ending Balance, Amount at Aug. 31, 2013 | $4,502 | $4,842,794 | $9,395,197 | $14,242,493 |
Ending Balance, Shares at Aug. 31, 2013 | 16,030,894 | ' | ' | ' |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Cash flows from operating activities | ' | ' |
Net income | $2,886,598 | $3,027,884 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' |
(Income)/Loss from Discontinued Operations | 0 | -215,922 |
Depreciation and amortization of property and equipment | 42,573 | 41,802 |
Amortization of customer relationships | 0 | 1,871 |
Amortization of capitalized computer software development costs | 716,887 | 668,021 |
Amortization of Intellectual property | 7,500 | 3,750 |
Excess tax benefits from share-based arrangements | -70,806 | 22,091 |
Stock-based compensation | 115,740 | 127,738 |
(Gain)/Loss from sale of assets | 0 | 433 |
Deferred income taxes | 366,986 | 207,617 |
(Increase) decrease in | ' | ' |
Accounts receivable and Contracts receivable | -643,771 | -114,080 |
Prepaid income taxes | -147,677 | 105,538 |
Prepaid expenses and other assets | -41,317 | -26,903 |
Accounts payable | -31,498 | 1,372 |
Accrued payroll and other expenses | -1,703 | 28,798 |
Accrued Bonus | 0 | 60,000 |
Accrued income taxes | -662,427 | 542,245 |
Other liabilities | 67,852 | 0 |
Deferred revenue | -42,555 | -9,409 |
Net cash provided by operating activities of continuing operations | 2,562,382 | 4,472,846 |
Net cash provided by (used in) operating activities of discontinued operations | 0 | -688,862 |
Net cash provided by operating activities | 2,562,382 | 3,783,984 |
Cash flows from investing activities | ' | ' |
Proceeds from sale of Words+, Inc. | 0 | 1,973,096 |
Proceeds from sale of assets | 0 | 200 |
Purchases of property and equipment | -53,150 | -106,835 |
Purchase of royalty | 0 | -75,000 |
Capitalized computer software development costs | -1,128,588 | -958,507 |
Net cash provided by (used in) investing activities of continuing operations | -1,181,738 | 832,954 |
Net cash provided by (used in) investing activities of discontinued operations | 0 | 6,532 |
Net cash provided by (used in) investing activities | -1,181,738 | 839,486 |
Cash flows from financing activities | ' | ' |
Exess tax benefits from share-based arrangements | 70,806 | -22,091 |
Dividends | -4,001,212 | -2,382,994 |
Proceeds from the exercise of stock options | 27,985 | 301,641 |
Net cash (used in) financing activities of continuing operations | -3,902,421 | -2,103,444 |
Net increase (decrease) in cash and cash equivalents from continuing operations | -2,521,777 | 3,202,356 |
Net (decrease) in cash and cash equivalents from discontinued operations | 0 | -682,330 |
Net increase (decrease) in cash and cash equivalents | -2,521,777 | 2,520,026 |
Cash and cash equivalents, beginning of year | 12,701,075 | 10,181,049 |
Cash and cash equivalents, end of period | 10,179,298 | 12,701,075 |
Supplemental disclosures of cash flow information | ' | ' |
Interest paid | 0 | 3 |
Income taxes paid | $1,964,545 | $457,000 |
1_ORGANIZATION_AND_LINES_OF_BU
1. ORGANIZATION AND LINES OF BUSINESS | 12 Months Ended |
Aug. 31, 2013 | |
Organization And Lines Of Business | ' |
Note 1. ORGANIZATION AND LINES OF BUSINESS | ' |
Organization | |
Simulations Plus, Inc. (the “Company”, “we”, “us”, “our”) was incorporated on July 17, 1996. On August 29, 1996, the shareholders of Words+, Inc. (“Words+”) exchanged their 2,000 shares of Words+, Inc. common stock for 2,200,000 (Pre-split) shares of Simulations Plus, Inc. common stock, and Words+ became a wholly-owned subsidiary of Simulations Plus, Inc. The Words+ subsidiary was sold effective November 30, 2011, and is treated as “discontinued operations” in the accompanying financial statements. | |
Lines of Business | |
The Company designs and develops pharmaceutical simulation software to promote cost-effective solutions to a number of problems in pharmaceutical research and in the education of pharmacy and medical students. The Company also developed and sells a productivity software program called Abbreviate! that was moved from the Words+ subsidiary to Simulations Plus, Inc. |
2_SUMMARY_OF_SIGNIFICANT_ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Summary Of Significant Accounting Policies | ' | ||||||||||||||||
Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
Our financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. Actual results could differ from those estimates. | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The financial statements of Simulations Plus, Inc. include the accounts of Words+ up to November 30, 2011 (FY12), the date of sale of the wholly-owned subsidiary. All significant intercompany accounts and transactions were eliminated in consolidation. The operations of Words+ are presented as “discontinued operations” in the financial statements. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
We recognize revenues related to software licenses and software maintenance in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 985-605, “Software - Revenue Recognition”. Software products revenue is recorded when the following conditions are met: 1) evidence of arrangement exists, 2) delivery has been made, 3) the amount is fixed, and 4) collectability is probable. Post-contract customer support ("PCS") obligations are insignificant; therefore, revenue for PCS is recognized at the same time as the licensing fee, and the costs of providing such support services are accrued and amortized over the obligation period. | |||||||||||||||||
As a byproduct of ongoing improvements and upgrades for the new programs and new modules of software, some modifications are provided to customers who have already purchased software at no additional charge. Other software modifications result in new, additional cost modules that expand the functionality of the software. These are licensed separately. We consider the modifications that are provided without charge to be minimal, as they do not significantly change the basic functionality or utility of the software, but rather add convenience, such as being able to plot some additional variable on a graph in addition to the numerous variables that had been available before, or adding some additional calculations to supplement the information provided from running the software. Such software modifications for any single product have typically occurred once or twice per year, sometimes more, sometimes less. Thus, they are infrequent. The Company provides, for a fee, additional training and service calls to its customers and recognizes revenue at the time the training or service call is provided. | |||||||||||||||||
Generally, we enter into one-year license agreements with customers for the use of our pharmaceutical software products. We recognize revenue on these contracts when all the criteria are met. | |||||||||||||||||
Most license agreements have a term of one year; however, from time to time, we enter into multi-year license agreements. We generally unlock and invoice software one year at a time for multi-year licenses. Therefore, revenue is recognized one year at a time. | |||||||||||||||||
We recognize the revenue from collaboration research and the revenue from grants equally over their terms. However, we recognize the contract study revenue using the percentage of completion method, depending upon how the contract studies are engaged, in accordance with ASC 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts”. To recognize revenue using the percentage of completion method, we must determine whether we meet the following criteria: 1) there is a long-term, legally enforceable contract 2) it is possible to reasonably estimate the total project costs, and 3) it is possible to reasonably estimate the extent of progress toward completion. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
For purposes of the statements of cash flows, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. | |||||||||||||||||
Accounts Receivable | |||||||||||||||||
We analyze the age of customer balances, historical bad debt experience, customer creditworthiness, and changes in customer payment terms when making estimates of the collectability of the Company’s trade accounts receivable balances. If we determine that the financial conditions of any of our customers have deteriorated, whether due to customer-specific or general economic issues, an increase in the allowance may be made. Accounts receivable are written off when all collection attempts have failed. The Company also estimated the contractual discount obligation for third party funding such as Medicaid, and private insurance companies. Those estimated discounts were reflected in the allowance for doubtful accounts and contractual discounts and included in discontinued operations. Although we experienced significant collection problems with our former Words+ subsidiary, we have not had customers fail to pay on the pharmaceutical software and services side of the business, which now represents our entire business after the sale of our former subsidiary on November 30, 2011. | |||||||||||||||||
Capitalized Computer Software Development Costs | |||||||||||||||||
Software development costs are capitalized in accordance with ASC 985-20, “Costs of Software to Be Sold, Leased, or Marketed”. Capitalization of software development costs begins upon the establishment of technological feasibility and is discontinued when the product is available for sale. | |||||||||||||||||
The establishment of technological feasibility and the ongoing assessment for recoverability of capitalized software development costs require considerable judgment by management with respect to certain external factors including, but not limited to, technological feasibility, anticipated future gross revenues, estimated economic life, and changes in software and hardware technologies. Capitalized computer software development costs are comprised primarily of salaries and direct payroll-related costs and the purchase of existing software to be used in the Company's software products. | |||||||||||||||||
Amortization of capitalized computer software development costs is provided on a product-by-product basis on the straight-line method over the estimated economic life of the products (not to exceed five years). Amortization of software development costs amounted to $716,888 and $668,021 for the years ended August 31, 2013 and 2012, respectively. We expect future amortization expense to vary due to increases in capitalized computer software development costs. | |||||||||||||||||
We test capitalized computer software development costs for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the estimated useful lives as follows: | |||||||||||||||||
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 | ||||||||||||||||
Maintenance and minor replacements are charged to expense as incurred. Gains and losses on disposals are included in the results of operations. | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Assets and liabilities recorded at fair value in the Company’s Balance Sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories, as defined by the standard, are as follows: | |||||||||||||||||
Level Input: | Input Definition: | ||||||||||||||||
Level I | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||
Level II | Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. | ||||||||||||||||
Level III | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | ||||||||||||||||
The following table summarizes fair value measurements by level at August 31, 2013 for assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
Cash and cash equivalents | $ | 10,179,298 | $ | – | $ | – | $ | 10,179,298 | |||||||||
Total assets | $ | 10,179,298 | $ | – | $ | – | $ | 10,179,298 | |||||||||
For certain of our financial instruments, including accounts receivable, accounts payable, accrued payroll and other expenses, accrued bonuses to officers, and accrued warranty and service costs, the carrying amounts are approximate fair value due to their short-term nature. | |||||||||||||||||
Advertising | |||||||||||||||||
The Company expenses advertising costs as incurred. Advertising costs for the years ended August 31, 2013 and 2012 were $38,000 and $79,000, respectively. | |||||||||||||||||
Research and Development Costs | |||||||||||||||||
Research and development costs are charged to expense as incurred until technological feasibility has been established. These costs include salaries, laboratory experiment, and purchased software which was developed by other companies and incorporated into, or used in the development of, our final products. | |||||||||||||||||
Income Taxes | |||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740-10, “Income Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. | |||||||||||||||||
Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities. | |||||||||||||||||
The California Franchise Tax Board (“FTB”) audited us for the fiscal years ended (“FYE”) August 31, 2007 and 2008. We received refunds as we claimed; however they continued their audit to include FYE 2009 and 2010, and are reviewing 2007 and 2008 R&D credits since those credits were carried forward to FYE 2009 and 2010. In May 2013, we received a letter from FTB stating that an audit will not be conducted for those years at this time; however it may be subject to future audit if they receive new information. | |||||||||||||||||
In March 2012, we also received a notice from the Internal Revenue Service (“IRS”) that our FYE 2008 is subject to their examination. In October 2012, the IRS completed their examination of our 2007 tax filing. The outcome of this examination was a decrease of $36,868 in the amount refundable. We received a refund of $151,246 in December 2012. | |||||||||||||||||
Intellectual property | |||||||||||||||||
On February 28, 2012, we bought out the royalty agreement with Enslein Research of Rochester, New York. The cost of $75,000 is being amortized over 10 years under the straight-line method. Amortization expense for the fiscal year ended August 31, 2013 and 2012 was $7,500 and $3,750, respectively. Accumulated amortization as of August 31, 2013 and 2012 was $11,250 and $3,750, respectively. | |||||||||||||||||
Earnings per Share | |||||||||||||||||
The Company reports earnings per share in accordance with FASB ACS 260-10. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similarly to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The components of basic and diluted earnings per share for the years ended August 31, 2013 and 2012 were as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Numerator | |||||||||||||||||
Net income attributable to common shareholders | $ | 3,141,384 | $ | 3,027,884 | |||||||||||||
Denominator | |||||||||||||||||
Weighted-average number of common shares outstanding during the year | 15,996,432 | 15,763,674 | |||||||||||||||
Dilutive effect of stock options | 323,551 | 388,199 | |||||||||||||||
Common stock and common stock equivalents used for diluted earnings per share | 16,319,983 | 16,151,873 | |||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company accounts for stock options using the modified prospective method in accordance with FASB ASC 718-10, “Compensation-Stock Compensation”. Under this method, compensation costs include: (1) compensation cost for all share-based payments granted prior to, but not yet vested as of September 1, 2006, based on the grant date fair value estimated in accordance with the original provisions of Statement of Financial Accounting Standard (“SFAS”) No. 123 amortized over the options’ vesting period, and (2) compensation cost for all share-based payments granted subsequent to September 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of SFAS No. 123R, amortized on a straight-line basis over the options’ vesting period. Stock-based compensation was $115,740 and $181,521 for the years ended August 31, 2013 and 2012, respectively, and is included in the statements of operations as Consulting, Salaries, and Research and Development expense. | |||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||
In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”), which amended the guidance in ASU 2011-08, Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment”) to simplify the testing of indefinite-lived intangible assets other than goodwill for impairment. ASU 2012-02 becomes effective for annual and interim impairment tests performed for fiscal years beginning on or after September 15, 2012 and earlier adoption is permitted. We adopted this standard in the first quarter of FYE 2013. We believe adoption did not have a material effect on our financial statements. | |||||||||||||||||
3_PROPERTY_AND_EQUIPMENT
3. PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Note 3. PROPERTY AND EQUIPMENT | ' | ||||||||
Property and equipment at August 31, 2013 and 2012 consisted of the following: | |||||||||
2013 | 2012 | ||||||||
Equipment | $ | 141,355 | $ | 123,062 | |||||
Computer equipment | 295,174 | 272,562 | |||||||
Furniture and fixtures | 53,096 | 48,813 | |||||||
Leasehold improvements | 61,860 | 53,898 | |||||||
551,485 | 498,335 | ||||||||
Less accumulated depreciation and Amortization | 433,498 | 390,925 | |||||||
Total | $ | 117,987 | $ | 107,410 | |||||
Depreciation expense was $42,573 and $41,802 for the years ended August 31, 2013 and 2012, respectively. | |||||||||
4_COMMITMENTS_AND_CONTINGENCIE
4. COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Note 4. COMMITMENTS AND CONTINGENCIES | ' | ||||
Leases | |||||
Our original lease for approximately 13,500 square feet of space was under a five-year term with two (2), three (3)-year options to extend the lease. The base rent was $18,445 per month plus common area maintenance fees with annual 4% increase on the base rent. We made an amendment to our original lease which will end on February 2, 2014 with one remaining extension of three (3) years at an annual increase of 4% per year. The amended lease extends to February 2, 2017, with an annual increase of 3% per year and has an option of two (2) two (2)-year extensions. The current base rent amount of $24,272 per month remains the same; however, we have three (3) months’ free base rent during the months of June, July and August of 2013. We will record these three (3) months as a discount divided equally through the first term of this amended lease from June 2013 through January 2017. The amended lease is filed with the Securities and Exchange Commission (“SEC”) as an exhibit in our Quarterly Report on Form 10-Q for the fiscal quarter ended May 31, 2013 filed with the SEC on July 10, 2013. | |||||
Rent expense, including common area maintenance fees for the year ended August 31, 2013 and 2012 were $305,636 and $293,089, respectively. | |||||
After the sale of Words+, we entered into a month to month sublease agreement commencing January 1, 2012 under which Words+ pays 20% of the monthly rent we pay to our landlord, plus 20% of facility-related operating expenses. We report our gross lease expense under Selling, General and Administrative expense; however, the sublease payments received from Words+ are reported under Other Income. The sublease to Words+ ended at February 28, 2013, when it closed its business operation. | |||||
Future minimum lease payments under non-cancelable operating leases with remaining terms of one year or more at August 31, 2013 were as follows: | |||||
Years Ending August 31, | |||||
2014 | $ | 291,269 | |||
2015 | 297,094 | ||||
2016 | 306,007 | ||||
2017 | 129,526 | ||||
$ | 1,023,896 | ||||
On October 30, 2006, the Company entered into an equipment lease agreement. In this agreement, the Company leased a Ricoh Copier/Printer for 36 months with the option of earlier termination with a 60-day written notice. On October 30, 2009, we renewed the same agreement for another 36 months with an increment of 1 cent per copy on color printing which reflects their material cost. On April 17, 2012, we entered into a new lease agreement with ARC, a successor of Ricoh, former leasing company, for 36 months under the same term as the existing agreement which we pay as we use. | |||||
Employment Agreement | |||||
On August 22, 2013, the Company entered into an employment agreement with its President/Chief Executive Officer that expires in August 2014. The employment agreement provides for an annual base salary of $300,000 per year, and a performance bonus in an amount equal to 5% of the Company’s net income before taxes of the previous fiscal year, not to exceed $60,000. The agreement also provides Employee stock options, exercisable for five years, to purchase ten (10) shares of Common Stock for each one thousand dollars ($1,000) of net income before taxes at the end of each fiscal year up to a maximum of 20,000 options over the term of the agreement. The Company may terminate the agreement upon 30 days written notice if termination is without cause. The Company's only obligation would be to pay its President the greater of a) 12 months salary or b) the remainder of the term of the employment agreement from the date of notice of termination. | |||||
For fiscal year 2013, the Compensation Committee awarded a $30,000 performance bonus to Walter Woltosz, our President/Chief Executive Officer, which was paid in September 2013. | |||||
For fiscal year 2012, the Compensation Committee awarded a $30,000 performance bonus to Walter Woltosz, our President/Chief Executive Officer, which was paid in September 2012. | |||||
License Agreement | |||||
In 1997, the Company entered into an agreement with Therapeutic Systems Research Laboratory ("TSRL") to develop a computer simulation software program of the absorption of drug compounds in the gastrointestinal tract. Upon execution of a definitive License Agreement on July 9, 1997, TSRL received an initial payment of $75,000, and thereafter, the Company is obligated to pay a royalty of 20% of the net sales of the basic GastroPlus software without additional modules. | |||||
In September 2007, we entered into an agreement with Enslein Research, Inc. (“Enslein”) to jointly create a new metabolism module as part of ADMET Predictor. The fee for the exclusive license to the Enslein Data, in the form of a royalty, is 50% of the gross sales revenues of the ADMET Predictor Enslein Metabolism Module, and a $50,000 bonus at the time the cumulative revenue from ADMET Predictor Enslein Metabolism Module sales reaches $250,000. On February 28, 2012, we signed a buyout agreement with Enslein for $75,000, and are amortizing its cost over 10 years after this date. | |||||
We also have a royalty agreement with Accelrys, Inc. (the original agreement was entered into with Symyx Technologies in March 2010; Symyx Technologies later merged with Accelrys, Inc.) for Metabolite Database access for developing our Metabolite module which was renamed as Metabolism module when we released ADMET Predictor version 6 on April 19, 2012. Under this agreement, we pay 25% of revenue derived from the sale of Metabolism/Metabolite module. | |||||
For the years ended August 31, 2013 and 2012, we incurred total royalty expense of approximately $646,000 and $601,000, respectively. | |||||
Legal Matters | |||||
We are not a party to any litigation at this time and we are not aware of any pending litigation of any kind. | |||||
5_SHAREHOLDERS_EQUITY
5. SHAREHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Note 5. SHAREHOLDERS' EQUITY | ' | ||||||||||||||||||
Dividend | |||||||||||||||||||
The Company’s Board of Directors declared cash dividends during fiscal year 2013 and 2012. The details of dividend paid are in the following table: | |||||||||||||||||||
FY2013 | |||||||||||||||||||
Record Date | Distribution Date | Number of Shares Outstanding on | Dividend per Share | Total Amount | |||||||||||||||
Record Date | |||||||||||||||||||
11/8/12 | 11/13/12 | 15,927,806 | $ | 0.05 | $ | 796,390 | |||||||||||||
12/24/12 | 12/28/12 | 16,021,309 | $ | 0.14 | * | $ | 2,242,983 | ||||||||||||
5/7/13 | 5/10/13 | 16,030,433 | $ | 0.03 | ** | $ | 480,913 | ||||||||||||
8/12/13 | 8/15/13 | 16,030,894 | $ | 0.03 | ** | $ | 480,926 | ||||||||||||
Total | $ | 4,001,212 | |||||||||||||||||
*As a tax benefit to our shareholders considering the increase in federal income tax for capital gains in 2013, the Company’s Board of Directors declared an accelerated cash dividend, $0.14 per share, on December 14, 2012, consisting of all of the planned February 2013 distribution of $0.05 per share, plus $0.03 per share of the planned $0.05 per quarter per share for the remaining three fiscal quarters ending in calendar year 2013. | |||||||||||||||||||
** The Company’s Board of Directors decided to increase the May and August dividend distribution by 50% from the planned $0.02/share to $0.03/share. Although dividend distributions are currently expected to continue on a quarterly basis, the Company’s Board of Directors reserves the right to discontinue the dividend distribution any time to meet the cash priorities of the business. | |||||||||||||||||||
FY2012 | |||||||||||||||||||
Record Date | Distribution Date | Number of Shares Outstanding on | Dividend per Share | Total Amount | |||||||||||||||
Record Date | |||||||||||||||||||
2/21/12 | 3/1/12 | 15,813,844 | $ | 0.05 | $ | 790,692 | |||||||||||||
4/27/12 | 5/8/12 | 15,923.02 | $ | 0.05 | $ | 796,151 | |||||||||||||
8/7/12 | 8/10/12 | 15,923.02 | $ | 0.05 | $ | 796,151 | |||||||||||||
Total | $ | 2,382,994 | |||||||||||||||||
Stock Option Plan | |||||||||||||||||||
In September 1996, the Company’s Board of Directors adopted, and the Company’s shareholders approved, the 1996 Stock Option Plan (the "Option Plan") under which a total of 1,000,000 shares of common stock had been reserved for issuance. In March 1999, the shareholders approved an increase in the number of shares that may be granted under the Option Plan to 2,000,000. In February 2000, the shareholders approved an increase in the number of shares that may be granted under the Option Plan to 4,000,000. In December 2000, the shareholders approved an increase in the number of shares that may be granted under the Option Plan to 5,000,000. Furthermore, in February 2005, the shareholders approved an additional 1,000,000 shares, resulting in the total number of shares that may be granted under the Option Plan of 6,000,000. The 1996 Stock Option Plan terminated in September 2006 by its term. | |||||||||||||||||||
On February 23, 2007, the Company’s Board of Directors adopted and the Company’s shareholders approved the 2007 Stock Option Plan under which a total of 1,000,000 shares of common stock had been reserved for issuance. | |||||||||||||||||||
Qualified Incentive Stock Options (“Qualified ISO”) | |||||||||||||||||||
As of August 31, 2013, employees hold Qualified ISO to purchase 532,000 shares of the Company’s common stock at exercise prices ranging from $1.00 to $5.06 which were granted prior to August 31, 2013. | |||||||||||||||||||
Transactions in FY12 | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | ||||||||||||||||
(Incentive Stock Option Plan) | Per Share | ||||||||||||||||||
Outstanding, August 31, 2011 | 957,636 | $ | 1.4 | 5.22 | |||||||||||||||
Granted | 100,000 | $ | 3.25 | ||||||||||||||||
Exercised | (360,736 | ) | $ | 1.22 | |||||||||||||||
Expired | (7,100 | ) | $ | 2.54 | |||||||||||||||
Outstanding, August 31, 2012 | 689,800 | $ | 1.74 | 4.523 | |||||||||||||||
Vested and Exercisable, August 31, 2012 | 467,100 | $ | 1.42 | 4.071 | |||||||||||||||
Vested and Expected to Vest, August 31, 2012 | 666,789 | $ | 1.71 | 4.451 | |||||||||||||||
Transactions in FY13 | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | ||||||||||||||||
(Incentive Stock Option Plan) | Per Share | ||||||||||||||||||
Outstanding, August 31, 2012 | 689,800 | $ | 1.74 | 4.523 | |||||||||||||||
Granted | 20,000 | $ | 5.06 | ||||||||||||||||
Exercised | (175,800 | ) | $ | 1.9 | |||||||||||||||
Canceled/Forfeited | (2,000 | ) | $ | 1 | |||||||||||||||
Outstanding, August 31, 2013 | 532,000 | $ | 1.82 | 3.953 | |||||||||||||||
Vested and Exercisable, August 31, 2013 | 392,600 | $ | 1.45 | 3.798 | |||||||||||||||
Vested and Expected to Vest, August 31, 2013 | 519,600 | $ | 1.79 | 3.912 | |||||||||||||||
Non-Qualified Stock Options (“NQSO”) | |||||||||||||||||||
As of August 31, 2013, the outside members of the Company’s Board of Directors hold options to purchase 48,600 shares of the Company’s common stock at exercise prices ranging from $1.67 to $6.68, which were granted prior to August 31, 2013. | |||||||||||||||||||
Transactions in FY12 | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | ||||||||||||||||
Per Share | |||||||||||||||||||
Outstanding, August 31, 2011 | 79,000 | $ | 2.29 | 5.15 | |||||||||||||||
Granted | 10,000 | $ | 4.46 | ||||||||||||||||
Exercised | (40,800 | ) | $ | 1.25 | |||||||||||||||
Canceled/Forfeited | (11,600 | ) | $ | 4.1 | |||||||||||||||
Outstanding, August 31, 2012 | 36,600 | $ | 3.47 | 8.139 | |||||||||||||||
Exercisable, August 31, 2012 | 17,000 | $ | 3.35 | 6.975 | |||||||||||||||
Transactions in FY13 | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | ||||||||||||||||
Per Share | |||||||||||||||||||
Outstanding, August 31, 2012 | 36,600 | $ | 3.47 | 8.139 | |||||||||||||||
Granted | 12,000 | $ | 4.78 | ||||||||||||||||
Outstanding, August 31, 2013 | 48,600 | $ | 3.79 | 7.845 | |||||||||||||||
Exercisable, August 31, 2013 | 28,200 | $ | 3.28 | 6.671 | |||||||||||||||
The fair value of the options, including both ISO and NQSO options, granted during FYE 2013 is estimated at $30,200. The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions for FYE 2013: dividend yield of 4.35%, pre-vest forfeiture rate of 6.13%, expected volatility of 57.65%, risk-free interest rate of 0.66%, and expected life of 5.0 years. The total fair value of non-vested stock options as of August 31, 2013 was $194,956 and is amortizable over a weighted average period of 1.37 years. | |||||||||||||||||||
During the previous fiscal year ended August 31, 2012, the fair value of the options, including both ISO and NQSO options, granted during FYE 2012 is estimated at $167,124. The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model with the following assumptions for FYE 2012: dividend yield of 0.41%, pre-vest forfeiture rate of 5.61% to 6.09%, expected volatility of 62.27% to 69.87%, risk-free interest rate of 0.82% to 1.01%, and expected life of 5.0 years to 7.0 years. The total fair value of non-vested stock options as of August 31, 2012 was $292,426 and is amortizable over a weighted average period of 2.03 years. | |||||||||||||||||||
The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options, which do not have vesting restrictions and are fully transferable. In addition, option valuation models require the input of highly subjective assumptions, including the expected stock price volatility. Because our employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its employee stock options. | |||||||||||||||||||
Intrinsic Value of options outstanding and options exercisable | |||||||||||||||||||
Intrinsic Value of Options Outstanding | Intrinsic Value of Options Exercisable | Intrinsic Value of Options Exercised | |||||||||||||||||
FY12 | $ | 1,918,904 | $ | 1,447,900 | $ | 982,786 | |||||||||||||
FY13 | $ | 1,636,422 | $ | 1,357,870 | $ | 402,406 | |||||||||||||
The weighted-average remaining contractual life of options outstanding issued under the Plan was 4.28 years at August 31, 2013. The exercise prices for the options outstanding at August 31, 2012 ranged from $1.00 to $6.68, and the information relating to these options is as follows: | |||||||||||||||||||
Exercise Price | Awards Outstanding | Awards Exercisable | |||||||||||||||||
Low | High | Quantity | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Quantity | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | ||||||||||||
$1.00 | $1.50 | 353,100 | 3.9 years | $1.06 | 319,700 | 3.8 years | $1.07 | ||||||||||||
$1.51 | $3.00 | 34,600 | 6.5 years | $2.30 | 14,600 | 6.3 years | $2.04 | ||||||||||||
$3.01 | $4.50 | 156,900 | 4.1 years | $3.26 | 82,500 | 4.4 years | $3.18 | ||||||||||||
$4.51 | $6.68 | 36,000 | 6.0 years | $5.15 | 4,000 | 4.0 years | $6.68 | ||||||||||||
580,600 | 420,800 |
6_INCOME_TAXES
6. INCOME TAXES | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Note 6. INCOME TAXES | ' | ||||||||
We utilize FASB ASC 740-10, “Income Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. | |||||||||
Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities. | |||||||||
The components of the income tax provision for FYE 2013 and 2012 were as follows: | |||||||||
2013 | 2012 | ||||||||
Current | |||||||||
Federal | $ | 891,153 | $ | 872,907 | |||||
State | 112,042 | 177,975 | |||||||
1,003,195 | 1,050,882 | ||||||||
Deferred | |||||||||
Federal | 57,805 | 114,712 | |||||||
State | 309,182 | (22,901 | ) | ||||||
366,987 | 91,811 | ||||||||
Total | $ | 1,370,182 | $ | 1,142,693 | |||||
A reconciliation of the expected income tax (benefit) computed using the federal statutory income tax rate to the Company's effective income tax rate is as follows for FYE 2013 and 2012: | |||||||||
2013 | 2012 | ||||||||
Income tax computed at federal statutory tax rate | 34.00% | 34.00% | |||||||
State taxes, net of federal benefit | 5.2 | 3.3 | |||||||
Meals & Entertainment | 0.1 | 0.1 | |||||||
Other permanent differences | (0.5 | ) | 0.8 | ||||||
Research and development credit | (11.3 | ) | (8.4 | ) | |||||
Change in prior year estimated taxes | 4.7 | (0.9 | ) | ||||||
Total | 32.20% | 28.90% | |||||||
Significant components of the Company's deferred tax assets and liabilities for income taxes for FYE 2013 and 2012 are as follows: | |||||||||
2013 | 2012 | ||||||||
Deferred tax assets | |||||||||
Accrued payroll and other expenses | $ | 82,104 | $ | 79,922 | |||||
Deferred revenue | 38,225 | 56,456 | |||||||
Deferred rent | 29,068 | – | |||||||
Property and equipment | – | 32,916 | |||||||
Intellectual property | 30,326 | – | |||||||
Research and development credit | – | 261,526 | |||||||
State taxes | 45,343 | 66,902 | |||||||
State Tax Deferred | 74,458 | – | |||||||
Total deferred tax assets | 299,524 | 497,722 | |||||||
Less: Valuation allowance | – | – | |||||||
299,524 | 497,722 | ||||||||
Deferred tax liabilities | |||||||||
Property and equipment | (23,077 | ) | – | ||||||
State Tax Deferred | (30,663 | ) | – | ||||||
Capitalized computer software development costs | (1,238,578 | ) | (1,062,204 | ) | |||||
Total deferred tax liabilities | (1,261,655 | ) | (1,092,867 | ) | |||||
Net deferred tax liabilities | $ | (962,131 | ) | $ | (595,145 | ) | |||
We follow guidance issued by the FASB with regard to its accounting for uncertainty in income taxes recognized in the financial statements. Such guidance prescribes a recognition threshold of more likely than not and a measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. In making this assessment, a company must determine whether it is more likely than not that a tax position will be sustained upon examination, based solely on the technical merits of the position and must assume that the tax position will be examined by taxing authorities. Our policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. Interest and penalties totaled $6,357 and $1,300 for FYE 2013 and 2012, respectively. We file income tax returns with the IRS and the FTB. FTB audited us for FYE2007 and 2008. We received refunds as we claimed; however they continued their audit to include FYE 2009 and 2010, and were reviewing 2007 and 2008 research and development credits since those credits were carried forward to FYE 2009 and 2010. In May 2013, we received a letter from FTB stating that an audit will not be conducted for those years at this time; however it may be subject to future audit for the FYE 2007 through FYE 2010 if they receive new information. | |||||||||
In March 2012, we also received a notice from the IRS that our FYE 2008 is subject to their examination. In October 2012, the IRS completed their examination of our 2007 tax filing. The outcome of this examination was a decrease of $36,868 in the amount refundable. We received a refund of $151,246 in December 2012. | |||||||||
Our review of prior year tax positions using the criteria and provisions presented in guidance issued by FASB did not result in a material impact on the Company’s financial position or results of operations. |
7_CONCENTRATIONS_AND_UNCERTAIN
7. CONCENTRATIONS AND UNCERTAINTIES | 12 Months Ended |
Aug. 31, 2013 | |
Concentrations And Uncertainties | ' |
Note 7. CONCENTRATIONS AND UNCERTAINTIES | ' |
Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company holds cash and cash equivalents at banks located in California, with balances that often exceed FDIC insured limits. Historically, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. However, considering the current banking environment, the Company is investigating alternative ways to minimize its exposure to such risks. While the Company may be exposed to credit losses due to the nonperformance of its counterparties, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. | |
Revenue concentration shows that International sales accounted for 48% and 49% of net sales for FYE 2013 and 2012, respectively. Two customers (one is a dealer account representing various customers) accounted for 9% and 6% of net sales for FYE 2013. For FYE 2012, two customers accounted for 10% (one is a dealer account representing various customers) and 6% of net sales. | |
Accounts receivable concentration shows that two customers comprised 27% and 22% (a dealer account representing various customers) of accounts receivable at August 31, 2013, and two customers comprised 28% (a dealer account representing various customers) and 22% of accounts receivable at August 31, 2012. | |
We operate in the computer software industry, which is highly competitive and changes rapidly. Our operating results could be significantly affected by our ability to develop new products and find new distribution channels for new and existing products. | |
The majority of our customers are in the pharmaceutical industry. During the current economy downturn, we have seen consolidation in the pharmaceutical industry. Although we have not seen any significant reduction in revenues to date, continued consolidation and downsizing in the pharmaceutical industry could have an impact on our revenues and earnings going forward. |
8_GEOGRAPHIC_REPORTING
8. GEOGRAPHIC REPORTING | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Geographic Reporting | ' | ||||||||||||||||||||
Note 8. GEOGRAPHIC REPORTING | ' | ||||||||||||||||||||
The Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues were as follows for FYE 2013 and 2012: | |||||||||||||||||||||
North America | South America | ||||||||||||||||||||
(in ‘000) | Europe | Asia | Total | ||||||||||||||||||
$ | 5,203 | $ | 2,980 | $ | 1,882 | $ | 6 | $ | 10,071 | ||||||||||||
31-Aug-13 | |||||||||||||||||||||
$ | 4,805 | $ | 2,986 | $ | 1,633 | $ | 25 | $ | 9,449 | ||||||||||||
31-Aug-12 | |||||||||||||||||||||
9_RELATED_PARTY_TRANSACTIONS
9. RELATED PARTY TRANSACTIONS | 12 Months Ended |
Aug. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Note 9. RELATED PARTY TRANSACTIONS | ' |
During FYE 2013, included in bonus expenses to officers was $90,000, of which $60,000 was accrued bonus representing 5% of the Company’s FYE 2012 net income before bonuses and taxes, not exceeding $60,000, paid to the Corporate Secretary, Virginia Woltosz, as an annual bonus as part of the terms of the sale of Words+ to Simulations Plus, Inc. in 1996. The other $30,000, paid in September 2012, was FYE 2012 performance bonus to Walter Woltosz, our President/Chief Executive Officer. As of August 31, 2013, $60,000 was accrued and unpaid. | |
During FYE 2012, included in bonus expenses to officers was $87,500, of which $60,000 was accrued bonus representing 5% of the Company’s FYE 2012 net income before bonuses and taxes, not exceeding $60,000, paid to the Corporate Secretary, Virginia Woltosz, as an annual bonus as part of the terms of the sale of Words+ to Simulations Plus in 1996. The other $27,500, paid in December 2011, was FYE 2011 performance bonus to Walter Woltosz, our President/Chief Executive Officer. |
10_CUSTOMER_RELATIONSHIPS
10. CUSTOMER RELATIONSHIPS | 12 Months Ended |
Aug. 31, 2013 | |
CustomerRelationshipsAbstract | ' |
Note 10 . CUSTOMER RELATIONSHIPS | ' |
The Company purchased customer relationships as a part of the acquisition of certain assets of Bioreason, Inc. in November 2005. Customer relationships was recorded at a cost of $128,042 and is being amortized over 78 months under the sum-of-the-years’-digits method. Amortization expense for FYE 2013 and 2012 amounted to $0 and $1,870, respectively. Accumulated amortization was $128,042 as of August 31, 2012 and the net book value of $0 was removed from the company’s accounts during FYE 2013. |
11_EMPLOYEE_BENEFIT_PLAN
11. EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Aug. 31, 2013 | |
Employee Benefit Plan | ' |
Note 11. EMPLOYEE BENEFIT PLAN | ' |
We maintain a 401(k) Plan for all eligible employees. We make matching contributions equal to 100% of the employee’s elective deferral, not to exceed 4% of the total employee compensation. We can also elect to make a profit-sharing contribution. Contributions by the Company to this Plan amounted to $104,162 and $89,258 for FYE 2013 and 2012, respectively. |
12_DISCONTINUED_OPERATIONS
12. DISCONTINUED OPERATIONS | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||
Note 12. DISCONTINUED OPERATIONS | ' | ||||
On November 30, 2011, we sold our interest in Words+for $1,973,096 in cash. Words+ operations are now presented as discontinued operations in accordance with accounting rules related to the disposal of long-lived assets. | |||||
We recognized a gain of $465,820, net of tax, from this sale, which is included in income from discontinued operations in our statement of operations for the fiscal quarter ended November 30, 2011. The revenue and expenses of discontinued operations for the first fiscal quarter of 2012 are as follows: | |||||
(in thousands) | Period | ||||
from 09/01/11 | |||||
to 11/30/11 | |||||
Net sales | $ | 479 | |||
Cost of sales | 265 | ||||
Gross profit | 214 | ||||
Selling, general and administrative | 563 | ||||
Research and development | 55 | ||||
Total operating expenses | 618 | ||||
Income (Loss) from discontinued operations | (404 | ) | |||
Other income | – | ||||
Income (Loss) from discontinued operations before income taxes | (404 | ) | |||
(Provision for) income taxes | 154 | ||||
Results from discontinued operations, net of tax | $ | (250 | ) | ||
The carrying amount of the assets and liabilities of discontinued operations just prior to the date of the sale on November 30, 2011 were as follows: | |||||
(in thousands) | 11/30/11 | ||||
Cash and cash equivalents | $ | 6 | |||
Receivables, net | 357 | ||||
Inventory | 392 | ||||
Prepaid and other current assets | 33 | ||||
Capitalized software development costs, net | 212 | ||||
Property and equipment, net | 91 | ||||
Total Assets | 1,091 | ||||
Accounts payable | 72 | ||||
Accrued payroll and other expenses | 109 | ||||
Accrued warranty and service costs | 37 | ||||
Total Liabilities | 218 | ||||
Net Assets of discontinued operations | $ | 873 | |||
13_SUBSEQUENT_EVENTS
13. SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Note 13. SUBSEQUENT EVENTS | ' |
On October 29, 2013, our Board of Directors declared the next quarterly cash dividend of $0.04 per share to our shareholders. The dividend will be distributed on Friday, November 15, 2013, for shareholders of record as of Friday, November 8, 2013. | |
From September 1, 2013 to November 13, 2013, an additional 43,000 shares were issued as a result of options exercised. |
2_SUMMARY_OF_SIGNIFICANT_ACCOU1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
Our financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. Actual results could differ from those estimates. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The financial statements of Simulations Plus, Inc. include the accounts of Words+ up to November 30, 2011 (FY12), the date of sale of the wholly-owned subsidiary. All significant intercompany accounts and transactions were eliminated in consolidation. The operations of Words+ are presented as “discontinued operations” in the financial statements. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
We recognize revenues related to software licenses and software maintenance in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 985-605, “Software - Revenue Recognition”. Software products revenue is recorded when the following conditions are met: 1) evidence of arrangement exists, 2) delivery has been made, 3) the amount is fixed, and 4) collectability is probable. Post-contract customer support ("PCS") obligations are insignificant; therefore, revenue for PCS is recognized at the same time as the licensing fee, and the costs of providing such support services are accrued and amortized over the obligation period. | |||||||||||||||||
As a byproduct of ongoing improvements and upgrades for the new programs and new modules of software, some modifications are provided to customers who have already purchased software at no additional charge. Other software modifications result in new, additional cost modules that expand the functionality of the software. These are licensed separately. We consider the modifications that are provided without charge to be minimal, as they do not significantly change the basic functionality or utility of the software, but rather add convenience, such as being able to plot some additional variable on a graph in addition to the numerous variables that had been available before, or adding some additional calculations to supplement the information provided from running the software. Such software modifications for any single product have typically occurred once or twice per year, sometimes more, sometimes less. Thus, they are infrequent. The Company provides, for a fee, additional training and service calls to its customers and recognizes revenue at the time the training or service call is provided. | |||||||||||||||||
Generally, we enter into one-year license agreements with customers for the use of our pharmaceutical software products. We recognize revenue on these contracts when all the criteria are met. | |||||||||||||||||
Most license agreements have a term of one year; however, from time to time, we enter into multi-year license agreements. We generally unlock and invoice software one year at a time for multi-year licenses. Therefore, revenue is recognized one year at a time. | |||||||||||||||||
We recognize the revenue from collaboration research and the revenue from grants equally over their terms. However, we recognize the contract study revenue using the percentage of completion method, depending upon how the contract studies are engaged, in accordance with ASC 605-35, “Revenue Recognition – Construction-Type and Production-Type Contracts”. To recognize revenue using the percentage of completion method, we must determine whether we meet the following criteria: 1) there is a long-term, legally enforceable contract 2) it is possible to reasonably estimate the total project costs, and 3) it is possible to reasonably estimate the extent of progress toward completion. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
For purposes of the statements of cash flows, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. | |||||||||||||||||
Accounts Receivable | ' | ||||||||||||||||
Accounts Receivable | |||||||||||||||||
We analyze the age of customer balances, historical bad debt experience, customer creditworthiness, and changes in customer payment terms when making estimates of the collectability of the Company’s trade accounts receivable balances. If we determine that the financial conditions of any of our customers have deteriorated, whether due to customer-specific or general economic issues, an increase in the allowance may be made. Accounts receivable are written off when all collection attempts have failed. The Company also estimated the contractual discount obligation for third party funding such as Medicaid, and private insurance companies. Those estimated discounts were reflected in the allowance for doubtful accounts and contractual discounts and included in discontinued operations. Although we experienced significant collection problems with our former Words+ subsidiary, we have not had customers fail to pay on the pharmaceutical software and services side of the business, which now represents our entire business after the sale of our former subsidiary on November 30, 2011. | |||||||||||||||||
Capitalized Computer Software Development Costs | ' | ||||||||||||||||
Capitalized Computer Software Development Costs | |||||||||||||||||
Software development costs are capitalized in accordance with ASC 985-20, “Costs of Software to Be Sold, Leased, or Marketed”. Capitalization of software development costs begins upon the establishment of technological feasibility and is discontinued when the product is available for sale. | |||||||||||||||||
The establishment of technological feasibility and the ongoing assessment for recoverability of capitalized software development costs require considerable judgment by management with respect to certain external factors including, but not limited to, technological feasibility, anticipated future gross revenues, estimated economic life, and changes in software and hardware technologies. Capitalized computer software development costs are comprised primarily of salaries and direct payroll-related costs and the purchase of existing software to be used in the Company's software products. | |||||||||||||||||
Amortization of capitalized computer software development costs is provided on a product-by-product basis on the straight-line method over the estimated economic life of the products (not to exceed five years). Amortization of software development costs amounted to $716,888 and $668,021 for the years ended August 31, 2013 and 2012, respectively. We expect future amortization expense to vary due to increases in capitalized computer software development costs. | |||||||||||||||||
We test capitalized computer software development costs for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. | |||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are recorded at cost, less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the estimated useful lives as follows: | |||||||||||||||||
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 | ||||||||||||||||
Maintenance and minor replacements are charged to expense as incurred. Gains and losses on disposals are included in the results of operations. | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
Assets and liabilities recorded at fair value in the Company’s Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories, as defined by the standard, are as follows: | |||||||||||||||||
Level Input: | Input Definition: | ||||||||||||||||
Level I | Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. | ||||||||||||||||
Level II | Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. | ||||||||||||||||
Level III | Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. | ||||||||||||||||
The following table summarizes fair value measurements by level at August 31, 2013 for assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
Cash and cash equivalents | $ | 10,179,298 | $ | – | $ | – | $ | 10,179,298 | |||||||||
Total assets | $ | 10,179,298 | $ | – | $ | – | $ | 10,179,298 | |||||||||
For certain of our financial instruments, including accounts receivable, accounts payable, accrued payroll and other expenses, accrued bonuses to officers, and accrued warranty and service costs, the carrying amounts are approximate fair value due to their short-term nature. | |||||||||||||||||
Advertising | ' | ||||||||||||||||
Advertising | |||||||||||||||||
The Company expenses advertising costs as incurred. Advertising costs for the years ended August 31, 2013 and 2012 were $38,000 and $79,000, respectively. | |||||||||||||||||
Research and Development Costs | ' | ||||||||||||||||
Research and Development Costs | |||||||||||||||||
Research and development costs are charged to expense as incurred until technological feasibility has been established. These costs include salaries, laboratory experiment, and purchased software which was developed by other companies and incorporated into, or used in the development of, our final products. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
The Company accounts for income taxes in accordance with ASC 740-10, “Income Taxes” which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. | |||||||||||||||||
Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities. | |||||||||||||||||
The California Franchise Tax Board (“FTB”) audited us for the fiscal years ended (“FYE”) August 31, 2007 and 2008. We received refunds as we claimed; however they continued their audit to include FYE 2009 and 2010, and are reviewing 2007 and 2008 R&D credits since those credits were carried forward to FYE 2009 and 2010. In May 2013, we received a letter from FTB stating that an audit will not be conducted for those years at this time; however it may be subject to future audit if they receive new information. | |||||||||||||||||
In March 2012, we also received a notice from the Internal Revenue Service (“IRS”) that our FYE 2008 is subject to their examination. In October 2012, the IRS completed their examination of our 2007 tax filing. The outcome of this examination was a decrease of $36,868 in the amount refundable. We received a refund of $151,246 in December 2012. | |||||||||||||||||
Intellectual property | ' | ||||||||||||||||
Intellectual property | |||||||||||||||||
On February 28, 2012, we bought out the royalty agreement with Enslein Research of Rochester, New York. The cost of $75,000 is being amortized over 10 years under the straight-line method. Amortization expense for the fiscal year ended August 31, 2013 and 2012 was $7,500 and $3,750, respectively. Accumulated amortization as of August 31, 2013 and 2012 was $11,250 and $3,750, respectively. | |||||||||||||||||
Earnings per Share | ' | ||||||||||||||||
Earnings per Share | |||||||||||||||||
The Company reports earnings per share in accordance with FASB ACS 260-10. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similarly to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The components of basic and diluted earnings per share for the years ended August 31, 2013 and 2012 were as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Numerator | |||||||||||||||||
Net income attributable to common shareholders | $ | 3,141,384 | $ | 3,027,884 | |||||||||||||
Denominator | |||||||||||||||||
Weighted-average number of common shares outstanding during the year | 15,996,432 | 15,763,674 | |||||||||||||||
Dilutive effect of stock options | 323,551 | 388,199 | |||||||||||||||
Common stock and common stock equivalents used for diluted earnings per share | 16,319,983 | 16,151,873 | |||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
The Company accounts for stock options using the modified prospective method in accordance with FASB ASC 718-10, “Compensation-Stock Compensation”. Under this method, compensation costs include: (1) compensation cost for all share-based payments granted prior to, but not yet vested as of September 1, 2006, based on the grant date fair value estimated in accordance with the original provisions of Statement of Financial Accounting Standard (“SFAS”) No. 123 amortized over the options’ vesting period, and (2) compensation cost for all share-based payments granted subsequent to September 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of SFAS No. 123R, amortized on a straight-line basis over the options’ vesting period. Stock-based compensation was $115,740 and $181,521 for the years ended August 31, 2013 and 2012, respectively, and is included in the statements of operations as Consulting, Salaries, and Research and Development expense. | |||||||||||||||||
Recently Issued Accounting Standards | ' | ||||||||||||||||
Recently Issued Accounting Standards | |||||||||||||||||
In July 2012, the FASB issued Accounting Standards Update (“ASU”) 2012-02, “Testing Indefinite-Lived Intangible Assets for Impairment” (“ASU 2012-02”), which amended the guidance in ASU 2011-08, “Intangibles-Goodwill and Other (Topic 350): Testing Goodwill for Impairment”) to simplify the testing of indefinite-lived intangible assets other than goodwill for impairment. ASU 2012-02 becomes effective for annual and interim impairment tests performed for fiscal years beginning on or after September 15, 2012 and earlier adoption is permitted. We adopted this standard in the first quarter of FYE 2013. We believe adoption did not have a material effect on our financial statements. |
2_SUMMARY_OF_SIGNIFICANT_ACCOU2
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||
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 | ||||||||||||||||
Assets and liabilities recorded at fair value | ' | ||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||
Cash and cash equivalents | $ | 10,179,298 | $ | – | $ | – | $ | 10,179,298 | |||||||||
Total assets | $ | 10,179,298 | $ | – | $ | – | $ | 10,179,298 | |||||||||
Components of basic and diluted earnings per share | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Numerator | |||||||||||||||||
Net income attributable to common shareholders | $ | 3,141,384 | $ | 3,027,884 | |||||||||||||
Denominator | |||||||||||||||||
Weighted-average number of common shares outstanding during the year | 15,996,432 | 15,763,674 | |||||||||||||||
Dilutive effect of stock options | 323,551 | 388,199 | |||||||||||||||
Common stock and common stock equivalents used for diluted earnings per share | 16,319,983 | 16,151,873 |
3_PROPERTY_AND_EQUIPMENT_Table
3. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and equipment | ' | ||||||||
2013 | 2012 | ||||||||
Equipment | $ | 141,355 | $ | 123,062 | |||||
Computer equipment | 295,174 | 272,562 | |||||||
Furniture and fixtures | 53,096 | 48,813 | |||||||
Leasehold improvements | 61,860 | 53,898 | |||||||
551,485 | 498,335 | ||||||||
Less accumulated depreciation and Amortization | 433,498 | 390,925 | |||||||
Total | $ | 117,987 | $ | 107,410 |
4_COMMITMENTS_AND_CONTINGENCIE1
4. COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Commitments And Contingencies Tables | ' | ||||
Future minimum lease payments | ' | ||||
Years Ending August 31, | |||||
2014 | $ | 291,269 | |||
2015 | 297,094 | ||||
2016 | 306,007 | ||||
2017 | 129,526 | ||||
$ | 1,023,896 |
5_SHAREHOLDERS_EQUITY_Tables
5. SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||
Details of dividend paid | ' | ||||||||||||||||||
FY2013 | |||||||||||||||||||
Record Date | Distribution Date | Number of Shares Outstanding on | Dividend per Share | Total Amount | |||||||||||||||
Record Date | |||||||||||||||||||
11/8/12 | 11/13/12 | 15,927,806 | $ | 0.05 | $ | 796,390 | |||||||||||||
12/24/12 | 12/28/12 | 16,021,309 | $ | 0.14 | * | $ | 2,242,983 | ||||||||||||
5/7/13 | 5/10/13 | 16,030,433 | $ | 0.03 | ** | $ | 480,913 | ||||||||||||
8/12/13 | 8/15/13 | 16,030,894 | $ | 0.03 | ** | $ | 480,926 | ||||||||||||
Total | $ | 4,001,212 | |||||||||||||||||
*As a tax benefit to our shareholders considering the increase in federal income tax for capital gains in 2013, the Board of Directors declared an accelerated cash dividend, $0.14 per share, on December 14, 2012, consisting of all of the planned February 2013 distribution of $0.05 per share, plus $0.03 per share of the planned $0.05 per quarter per share for the remaining three fiscal quarters ending in calendar year 2013. | |||||||||||||||||||
** The Board of Directors decided to increase the May and August dividend distribution by 50% from the planned $0.02/share to $0.03/share. Although dividend distributions are currently expected to continue on a quarterly basis, the Board of Directors reserves the right to discontinue the dividend distribution any time to meet the cash priorities of the business. | |||||||||||||||||||
FY2012 | |||||||||||||||||||
Record Date | Distribution Date | Number of Shares Outstanding on | Dividend per Share | Total Amount | |||||||||||||||
Record Date | |||||||||||||||||||
2/21/12 | 3/1/12 | 15,813,844 | $ | 0.05 | $ | 790,692 | |||||||||||||
4/27/12 | 5/8/12 | 15,923.02 | $ | 0.05 | $ | 796,151 | |||||||||||||
8/7/12 | 8/10/12 | 15,923.02 | $ | 0.05 | $ | 796,151 | |||||||||||||
Total | $ | 2,382,994 | |||||||||||||||||
Summary of the stock option transactions | ' | ||||||||||||||||||
Qualified Incentive Stock Options (Qualified ISO) | |||||||||||||||||||
Transactions in FY12 | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | ||||||||||||||||
(Incentive Stock Option Plan) | Per Share | ||||||||||||||||||
Outstanding, August 31, 2011 | 957,636 | $ | 1.4 | 5.22 | |||||||||||||||
Granted | 100,000 | $ | 3.25 | ||||||||||||||||
Exercised | (360,736 | ) | $ | 1.22 | |||||||||||||||
Expired | (7,100 | ) | $ | 2.54 | |||||||||||||||
Outstanding, August 31, 2012 | 689,800 | $ | 1.74 | 4.523 | |||||||||||||||
Vested and Exercisable, August 31, 2012 | 467,100 | $ | 1.42 | 4.071 | |||||||||||||||
Vested and Expected to Vest, August 31, 2012 | 666,789 | $ | 1.71 | 4.451 | |||||||||||||||
Transactions in FY13 | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | ||||||||||||||||
(Incentive Stock Option Plan) | Per Share | ||||||||||||||||||
Outstanding, August 31, 2012 | 689,800 | $ | 1.74 | 4.523 | |||||||||||||||
Granted | 20,000 | $ | 5.06 | ||||||||||||||||
Exercised | (175,800 | ) | $ | 1.9 | |||||||||||||||
Canceled/Forfeited | (2,000 | ) | $ | 1 | |||||||||||||||
Outstanding, August 31, 2013 | 532,000 | $ | 1.82 | 3.953 | |||||||||||||||
Vested and Exercisable, August 31, 2013 | 392,600 | $ | 1.45 | 3.798 | |||||||||||||||
Vested and Expected to Vest, August 31, 2013 | 519,600 | $ | 1.79 | 3.912 | |||||||||||||||
Non-Qualified Stock Options (NQSO) | |||||||||||||||||||
Transactions in FY12 | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | ||||||||||||||||
Per Share | |||||||||||||||||||
Outstanding, August 31, 2011 | 79,000 | $ | 2.29 | 5.15 | |||||||||||||||
Granted | 10,000 | $ | 4.46 | ||||||||||||||||
Exercised | (40,800 | ) | $ | 1.25 | |||||||||||||||
Canceled/Forfeited | (11,600 | ) | $ | 4.1 | |||||||||||||||
Outstanding, August 31, 2012 | 36,600 | $ | 3.47 | 8.139 | |||||||||||||||
Exercisable, August 31, 2012 | 17,000 | $ | 3.35 | 6.975 | |||||||||||||||
Transactions in FY13 | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Life | ||||||||||||||||
Per Share | |||||||||||||||||||
Outstanding, August 31, 2012 | 36,600 | $ | 3.47 | 8.139 | |||||||||||||||
Granted | 12,000 | $ | 4.78 | ||||||||||||||||
Outstanding, August 31, 2013 | 48,600 | $ | 3.79 | 7.845 | |||||||||||||||
Exercisable, August 31, 2013 | 28,200 | $ | 3.28 | 6.671 | |||||||||||||||
Intrinsic Value of options outstanding and options exercisable | ' | ||||||||||||||||||
Intrinsic Value of Options Outstanding | Intrinsic Value of Options Exercisable | Intrinsic Value of Options Exercised | |||||||||||||||||
FY12 | $ | 1,918,904 | $ | 1,447,900 | $ | 982,786 | |||||||||||||
FY13 | $ | 1,636,422 | $ | 1,357,870 | $ | 402,406 | |||||||||||||
Exercise prices for the options outstanding | ' | ||||||||||||||||||
Exercise Price | Awards Outstanding | Awards Exercisable | |||||||||||||||||
Low | High | Quantity | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | Quantity | Weighted Average Remaining Contractual Life | Weighted Average Exercise Price | ||||||||||||
$1.00 | $1.50 | 353,100 | 3.9 years | $1.06 | 319,700 | 3.8 years | $1.07 | ||||||||||||
$1.51 | $3.00 | 34,600 | 6.5 years | $2.30 | 14,600 | 6.3 years | $2.04 | ||||||||||||
$3.01 | $4.50 | 156,900 | 4.1 years | $3.26 | 82,500 | 4.4 years | $3.18 | ||||||||||||
$4.51 | $6.68 | 36,000 | 6.0 years | $5.15 | 4,000 | 4.0 years | $6.68 | ||||||||||||
580,600 | 420,800 |
6_INCOME_TAXES_Tables
6. INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Aug. 31, 2013 | |||||||||
Income Taxes Tables | ' | ||||||||
Components of the income tax provision | ' | ||||||||
2013 | 2012 | ||||||||
Current | |||||||||
Federal | $ | 891,153 | $ | 872,907 | |||||
State | 112,042 | 177,975 | |||||||
1,003,195 | 1,050,882 | ||||||||
Deferred | |||||||||
Federal | 57,805 | 114,712 | |||||||
State | 309,182 | (22,901 | ) | ||||||
366,987 | 91,811 | ||||||||
Total | $ | 1,370,182 | $ | 1,142,693 | |||||
Effective income tax rate | ' | ||||||||
2013 | 2012 | ||||||||
Income tax computed at federal statutory tax rate | 34.00% | 34.00% | |||||||
State taxes, net of federal benefit | 5.2 | 3.3 | |||||||
Meals & Entertainment | 0.1 | 0.1 | |||||||
Other permanent differences | (0.5 | ) | 0.8 | ||||||
Research and development credit | (11.3 | ) | (8.4 | ) | |||||
Change in prior year estimated taxes | 4.7 | (0.9 | ) | ||||||
Total | 32.20% | 28.90% | |||||||
Components of the Company deferred tax assets and liabilities | ' | ||||||||
2013 | 2012 | ||||||||
Deferred tax assets | |||||||||
Accrued payroll and other expenses | $ | 82,104 | $ | 79,922 | |||||
Deferred revenue | 38,225 | 56,456 | |||||||
Deferred rent | 29,068 | – | |||||||
Property and equipment | – | 32,916 | |||||||
Intellectual property | 30,326 | – | |||||||
Research and development credit | – | 261,526 | |||||||
State taxes | 45,343 | 66,902 | |||||||
State Tax Deferred | 74,458 | – | |||||||
Total deferred tax assets | 299,524 | 497,722 | |||||||
Less: Valuation allowance | – | – | |||||||
299,524 | 497,722 | ||||||||
Deferred tax liabilities | |||||||||
Property and equipment | (23,077 | ) | – | ||||||
State Tax Deferred | (30,663 | ) | – | ||||||
Capitalized computer software development costs | (1,238,578 | ) | (1,062,204 | ) | |||||
Total deferred tax liabilities | (1,261,655 | ) | (1,092,867 | ) | |||||
Net deferred tax liabilities | $ | (962,131 | ) | $ | (595,145 | ) |
8_GEOGRAPHIC_REPORTING_Tables
8. GEOGRAPHIC REPORTING (Tables) | 12 Months Ended | ||||||||||||||||||||
Aug. 31, 2013 | |||||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||||
Geographical revenues | ' | ||||||||||||||||||||
North America | South America | ||||||||||||||||||||
(in ‘000) | Europe | Asia | Total | ||||||||||||||||||
$ | 5,203 | $ | 2,980 | $ | 1,882 | $ | 6 | $ | 10,071 | ||||||||||||
31-Aug-13 | |||||||||||||||||||||
$ | 4,805 | $ | 2,986 | $ | 1,633 | $ | 25 | $ | 9,449 | ||||||||||||
31-Aug-12 |
12_DISCONTINUED_OPERATIONS_Tab
12. DISCONTINUED OPERATIONS (Tables) | 12 Months Ended | ||||
Aug. 31, 2013 | |||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||
Revenue and expenses of discontinued operations | ' | ||||
(in thousands) | Period | ||||
from 09/01/11 | |||||
to 11/30/11 | |||||
Net sales | $ | 479 | |||
Cost of sales | 265 | ||||
Gross profit | 214 | ||||
Selling, general and administrative | 563 | ||||
Research and development | 55 | ||||
Total operating expenses | 618 | ||||
Income (Loss) from discontinued operations | (404 | ) | |||
Other income | – | ||||
Income (Loss) from discontinued operations before income taxes | (404 | ) | |||
(Provision for) income taxes | 154 | ||||
Results from discontinued operations, net of tax | $ | (250 | ) | ||
Carrying amount of the assets and liabilities of discontinued operations | ' | ||||
(in thousands) | 11/30/11 | ||||
Cash and cash equivalents | $ | 6 | |||
Receivables, net | 357 | ||||
Inventory | 392 | ||||
Prepaid and other current assets | 33 | ||||
Capitalized software development costs, net | 212 | ||||
Property and equipment, net | 91 | ||||
Total Assets | 1,091 | ||||
Accounts payable | 72 | ||||
Accrued payroll and other expenses | 109 | ||||
Accrued warranty and service costs | 37 | ||||
Total Liabilities | 218 | ||||
Net Assets of discontinued operations | $ | 873 |
2_SUMMARY_OF_SIGNIFICANT_ACCOU3
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Aug. 31, 2013 | |
Equipment | ' |
Estimated useful lives | '5 years |
Computer equipment | ' |
Estimated useful lives | '3 to 7 years |
Furniture and fixtures | ' |
Estimated useful lives | '5 to 7 years |
Leasehold improvements | ' |
Estimated useful lives | 'Shorter of life of asset or lease |
2_SUMMARY_OF_SIGNIFICANT_ACCOU4
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $) | Aug. 31, 2013 |
Cash and cash equivalents | $10,179,298 |
Total assets | 10,179,298 |
Level I | ' |
Cash and cash equivalents | 10,179,298 |
Total assets | 10,179,298 |
Level II | ' |
Cash and cash equivalents | 0 |
Total assets | 0 |
Level III | ' |
Cash and cash equivalents | 0 |
Total assets | $0 |
2_SUMMARY_OF_SIGNIFICANT_ACCOU5
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Numerator | ' | ' |
Net income attributable to common shareholders | $3,141,384 | $3,027,884 |
Denominator | ' | ' |
Weighted-average number of common shares outstanding during the period | 15,996,432 | 15,763,674 |
Dilutive effect of stock options | 323,551 | 388,199 |
Common stock and common stock equivalents used for diluted earnings per share | 16,319,983 | 16,151,873 |
2_SUMMARY_OF_SIGNIFICANT_ACCOU6
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Summary Of Significant Accounting Policies Details Narrative | ' | ' |
Advertising costs | $38,000 | $79,000 |
Stock-based compensation | $115,740 | $181,521 |
3_PROPERTY_AND_EQUIPMENT_Detai
3. PROPERTY AND EQUIPMENT (Details) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Property and equipment, gross | $551,485 | $498,335 |
Less accumulated depreciation and Amortization | 433,498 | 390,925 |
Net Book Value | 117,987 | 107,410 |
Equipment | ' | ' |
Property and equipment, gross | 141,355 | 123,062 |
Computer equipment | ' | ' |
Property and equipment, gross | 295,174 | 272,562 |
Furniture and fixtures | ' | ' |
Property and equipment, gross | 53,096 | 48,813 |
Leasehold improvements | ' | ' |
Property and equipment, gross | $61,860 | $53,898 |
3_Property_and_Equipment_Narra
3. Property and Equipment (Narrative) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Property And Equipment Narrative | ' | ' |
Depreciation | $42,573 | $41,802 |
4_COMMITMENTS_AND_CONTINGENCIE2
4. COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Aug. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $291,269 |
2015 | 297,094 |
2016 | 306,007 |
2017 | 129,526 |
Future minimum lease payments | $1,023,896 |
4_COMMITMENTS_AND_CONTINGENCIE3
4. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Commitments And Contingencies Details Narrative | ' | ' |
Rent expense | $305,636 | $293,089 |
Royalties expense | $646,000 | $601,000 |
5_DIVIDENDS_DECLARED_Details
5. DIVIDENDS DECLARED (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Total Amount | $4,001,212 | $2,382,994 |
Record Date 02/21/2012 | ' | ' |
Record Date | ' | 21-Feb-12 |
Distribution Date | ' | 1-Mar-12 |
Number of Shares Outstanding on Record Date | ' | 15,813,844 |
Dividend per Share | ' | $0.05 |
Total Amount | ' | 790,692 |
Record Date 04/27/2012 | ' | ' |
Record Date | ' | 27-Apr-12 |
Distribution Date | ' | 8-May-12 |
Number of Shares Outstanding on Record Date | ' | 15,923.02 |
Dividend per Share | ' | $0.05 |
Total Amount | ' | 796,151 |
Record Date 08/07/2012 | ' | ' |
Record Date | ' | 7-Aug-12 |
Distribution Date | ' | 10-Aug-12 |
Number of Shares Outstanding on Record Date | ' | 15,923.02 |
Dividend per Share | ' | $0.05 |
Total Amount | ' | 796,151 |
Record Date 11/08/2012 | ' | ' |
Record Date | 8-Nov-12 | ' |
Distribution Date | 13-Nov-12 | ' |
Number of Shares Outstanding on Record Date | 15,927,806 | ' |
Dividend per Share | $0.05 | ' |
Total Amount | 796,390 | ' |
Record Date 12/24/2012 | ' | ' |
Record Date | 24-Dec-12 | ' |
Distribution Date | 28-Dec-12 | ' |
Number of Shares Outstanding on Record Date | 16,021,309 | ' |
Dividend per Share | $0.14 | ' |
Total Amount | 2,242,983 | ' |
Record Date 05/07/2013 | ' | ' |
Record Date | 7-May-13 | ' |
Distribution Date | 10-May-13 | ' |
Number of Shares Outstanding on Record Date | 16,030,433 | ' |
Dividend per Share | $0.03 | ' |
Total Amount | 480,913 | ' |
Record Date 08/12/2013 | ' | ' |
Record Date | 12-Aug-13 | ' |
Distribution Date | 15-Aug-13 | ' |
Number of Shares Outstanding on Record Date | 16,030,894 | ' |
Dividend per Share | $0.03 | ' |
Total Amount | $480,926 | ' |
5_OPTIONS_OUTSTANDING_Details
5. OPTIONS OUTSTANDING (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Awards Outstanding | 580,600 | ' |
Vested and Exercisable, end of period | 420,800 | ' |
Qualified ISO | ' | ' |
Awards Outstanding, beginning balance | 689,800 | 957,636 |
Granted | 20,000 | 100,000 |
Exercised | -175,800 | -360,736 |
Expired | -2,000 | -7,100 |
Awards Outstanding | 532,000 | 689,800 |
Vested and Exercisable, end of period | 392,600 | 467,100 |
Vested and Expected to Vest, end of period | 519,600 | 666,789 |
Weighted-Average Exercise Price Per Share | ' | ' |
Outstanding | $1.74 | $1.40 |
Granted | $5.06 | $3.25 |
Exercised | $1.90 | $1.22 |
Expired | $1 | $2.54 |
Outstanding | $1.82 | $1.74 |
Vested and Exercisable, end of period | $1.45 | $1.42 |
Vested and Expected to Vest, end of period | $1.79 | $1.71 |
Weighted-Average Remaining Contractual Life | ' | ' |
Outstanding, beginning of period | '4 years 6 months 7 days | '5 years 2 months 19 days |
Outstanding, end of period | '3 years 11 months 12 days | '4 years 6 months 7 days |
Vested and Exercisable | '3 years 9 months 17 days | '4 years 25 days |
Vested and Expected to Vest | '3 years 10 months 28 days | '4 years 5 months 12 days |
Non-Qualified SO | ' | ' |
Awards Outstanding, beginning balance | 36,600 | 79,000 |
Granted | 12,000 | 10,000 |
Exercised | ' | -40,800 |
Canceled/Forfeited | ' | -11,600 |
Awards Outstanding | 48,600 | 36,600 |
Vested and Exercisable, end of period | 28,200 | 17,000 |
Weighted-Average Exercise Price Per Share | ' | ' |
Outstanding | $3.47 | $2.29 |
Granted | $4.78 | $4.46 |
Exercised | ' | $1.25 |
Canceled/Forfeited | ' | $4.10 |
Outstanding | $3.79 | $3.47 |
Vested and Exercisable, end of period | $3.28 | $3.35 |
Weighted-Average Remaining Contractual Life | ' | ' |
Outstanding, beginning of period | '8 years 1 month 19 days | '5 years 1 month 24 days |
Outstanding, end of period | '7 years 10 months 6 days | '8 years 1 month 20 days |
Vested and Exercisable | '6 years 8 months 8 days | '6 years 11 months 23 days |
5_INTRINSIC_VALUE_OPTIONS_Deta
5. INTRINSIC VALUE OPTIONS (Details) (USD $) | 12 Months Ended | ||
Aug. 31, 2013 | Aug. 31, 2012 | Aug. 30, 2012 | |
Equity [Abstract] | ' | ' | ' |
Intrinsic Value of Options Outstanding | $1,636,422 | ' | $1,918,904 |
Intrinsic Value of Options Exercisable | 1,357,870 | ' | 1,447,900 |
Intrinsic Value of Options Exercised | $982,786 | $402,406 | ' |
5_OPTIONS_OUTSTANDING_AND_EXER
5. OPTIONS OUTSTANDING AND EXERCISABLE (Details) (USD $) | 12 Months Ended |
Aug. 31, 2013 | |
Awards Outstanding | 580,600 |
Weighted-Average Exercise Price Per Share | ' |
Vested and Exercisable, end of period | 420,800 |
Stock Options One | ' |
Exercise price low | $1 |
Exercise price high | $1.50 |
Awards Outstanding | 353,100 |
Awards outstanding weighted average remaining contractual life | '3 years 10 months 24 days |
Weighted-Average Exercise Price Per Share | ' |
Outstanding | $1.06 |
Vested and Exercisable, end of period | 319,700 |
Awards exercisable weighted average remaining contractual life | '3 years 9 months 18 days |
Vested and Exercisable, end of period | $1.07 |
Stock Options Two | ' |
Exercise price low | $1.51 |
Exercise price high | $3 |
Awards Outstanding | 34,600 |
Awards outstanding weighted average remaining contractual life | '6 years 6 months |
Weighted-Average Exercise Price Per Share | ' |
Outstanding | $2.30 |
Vested and Exercisable, end of period | 14,600 |
Awards exercisable weighted average remaining contractual life | '6 years 3 months 18 days |
Vested and Exercisable, end of period | $2.04 |
Stock Options Three | ' |
Exercise price low | $3.01 |
Exercise price high | $4.50 |
Awards Outstanding | 156,900 |
Awards outstanding weighted average remaining contractual life | '4 years 1 month 6 days |
Weighted-Average Exercise Price Per Share | ' |
Outstanding | $3.26 |
Vested and Exercisable, end of period | 82,500 |
Awards exercisable weighted average remaining contractual life | '4 years 4 months 24 days |
Vested and Exercisable, end of period | $3.18 |
Stock Options Four | ' |
Exercise price low | $4.51 |
Exercise price high | $6.68 |
Awards Outstanding | 36,000 |
Awards outstanding weighted average remaining contractual life | '6 years |
Weighted-Average Exercise Price Per Share | ' |
Outstanding | $5.15 |
Vested and Exercisable, end of period | 4,000 |
Awards exercisable weighted average remaining contractual life | '4 years |
Vested and Exercisable, end of period | $6.68 |
5_SHAREHOLDERS_EQUITY_Details_
5. SHAREHOLDERS' EQUITY (Details Narrative) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Fair value of the options | $30,200 | $167,124 |
Dividend yield | 4.35% | 0.41% |
Pre-vest forfeiture rate | 6.13% | ' |
Expected volatility | 57.65% | ' |
Risk-free interest rate | 0.66% | ' |
Fair value of non-vested stock options | $194,956 | $292,426 |
Weighted average amortizable period | '1 year 4 months 13 days | '2 years 11 days |
Minimum [Member] | ' | ' |
Pre-vest forfeiture rate | ' | 5.61% |
Expected volatility | ' | 62.27% |
Risk-free interest rate | ' | 0.82% |
Maximum [Member] | ' | ' |
Pre-vest forfeiture rate | ' | 6.09% |
Expected volatility | ' | 69.87% |
Risk-free interest rate | ' | 1.01% |
6_INCOME_TAXES_Details
6. INCOME TAXES (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Current | ' | ' |
Federal | $891,153 | $872,907 |
State | 112,042 | 177,975 |
Total State | 1,003,195 | 1,050,882 |
Deferred | ' | ' |
Federal | 57,805 | 114,712 |
State | 309,182 | -22,901 |
Total deferred total | 366,987 | 91,811 |
Total Federal and State | $1,370,182 | $1,142,693 |
6_INCOME_TAXES_Details_1
6. INCOME TAXES (Details 1) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Income tax computed at federal statutory tax rate | 34.00% | 34.00% |
State taxes, net of federal benefit | 5.20% | 3.30% |
Meals & Entertainment | 0.10% | 0.10% |
Other permanent differences | -0.50% | 0.80% |
Research and development credit | -11.30% | -8.40% |
Change in prior year estimated taxes | 4.70% | -0.90% |
Total | 32.20% | 28.90% |
6_INCOME_TAXES_Details_2
6. INCOME TAXES (Details 2) (USD $) | Aug. 31, 2013 | Aug. 31, 2012 |
Deferred tax assets | ' | ' |
Accrued payroll and other expenses | $82,104 | $79,922 |
Deferred revenue | 38,225 | 56,456 |
Deferred rent | 29,068 | 0 |
Property and equipment | 0 | 32,916 |
Intellectual property | 30,326 | 0 |
Research and development credit | 0 | 261,526 |
State taxes | 45,343 | 66,902 |
State Tax Deferred | 74,458 | 0 |
Total deferred tax assets | 299,524 | 497,722 |
Less Valuation allowance | 0 | 0 |
Deferred tax asset | 299,524 | 497,722 |
Deferred tax liabilities | ' | ' |
Property and equipment | -23,077 | 0 |
State Tax Deferred | -30,663 | 0 |
Capitalized computer software development costs | -1,238,578 | -1,062,204 |
Total deferred tax liabilities | -1,261,655 | -1,092,867 |
Net deferred tax liabilities | ($962,131) | ($595,145) |
8_GEOGRAPHIC_REPORTING_Details
8. GEOGRAPHIC REPORTING (Details) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Simulations Plus, Inc. | $10,071 | $9,449 |
North America | ' | ' |
Simulations Plus, Inc. | 5,203 | 4,805 |
Europe | ' | ' |
Simulations Plus, Inc. | 2,980 | 2,986 |
Asia | ' | ' |
Simulations Plus, Inc. | 1,882 | 1,633 |
South America | ' | ' |
Simulations Plus, Inc. | $6 | $25 |
11_EMPLOYEE_BENEFIT_PLAN_Detai
11. EMPLOYEE BENEFIT PLAN (Details Narrative) (USD $) | 12 Months Ended | |
Aug. 31, 2013 | Aug. 31, 2012 | |
Notes to Financial Statements | ' | ' |
Contribution by employer in benefit plan | $104,162 | $89,258 |
12_DISCONTINUED_OPERATIONS_Det
12. DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Nov. 30, 2011 |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Net sales | $479 |
Cost of sales | 265 |
Gross profit | 214 |
Selling, general and administrative | 563 |
Research and development | 55 |
Total operating expenses | 618 |
Income (Loss) from discontinued operations | -404 |
Other income | ' |
Income (Loss) from discontinued operations before income taxes | -404 |
(Provision for) income taxes | 154 |
Results from discontinued operations, net of tax | ($250) |
12_DISCONTINUED_OPERATIONS_Det1
12. DISCONTINUED OPERATIONS (Details 1) (USD $) | Nov. 30, 2011 |
In Thousands, unless otherwise specified | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Cash and cash equivalents | $6 |
Receivables, net | 357 |
Inventory | 392 |
Prepaid and other current assets | 33 |
Capitalized software development costs, net | 212 |
Property and equipment, net | 91 |
Total Assets | 1,091 |
Accounts payable | 72 |
Accrued payroll and other expenses | 109 |
Accrued warranty and service costs | 37 |
Total Liabilities | 218 |
Net Assets of discontinued operations | $873 |