Cover
Cover - shares | 6 Months Ended | |
Feb. 29, 2024 | Mar. 31, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Feb. 29, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-32046 | |
Entity Registrant Name | Simulations Plus, Inc. | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 95-4595609 | |
Entity Address, Address Line One | 42505 10th Street West | |
Entity Address, City or Town | Lancaster | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93534-7059 | |
City Area Code | 661 | |
Local Phone Number | 723-7723 | |
Title of 12(b) Security | Title of Each Class Common Stock, par value $0.001 per share | |
Trading Symbol | SLP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,984,945 | |
Entity Central Index Key | 0001023459 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --08-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 29, 2024 | Aug. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 37,031 | $ 57,523 |
Accounts receivable, net of allowance for credit losses of $30 and $46 | 13,114 | 10,201 |
Prepaid income taxes | 1,364 | 804 |
Prepaid expenses and other current assets | 4,975 | 3,904 |
Short-term investments | 71,473 | 57,940 |
Total current assets | 127,957 | 130,372 |
Long-term assets | ||
Capitalized computer software development costs, net of accumulated amortization of $17,962 and $17,199 | 12,333 | 11,335 |
Property and equipment, net | 843 | 671 |
Operating lease right-of-use assets | 1,062 | 1,247 |
Goodwill | 19,099 | 19,099 |
Long-term investments | 9,024 | 0 |
Deferred tax assets | 2,323 | 1,438 |
Other assets | 524 | 425 |
Total assets | 193,973 | 186,101 |
Current liabilities | ||
Accounts payable | 360 | 144 |
Accrued compensation | 3,184 | 4,392 |
Accrued expenses | 2,992 | 659 |
Contracts payable | 5,110 | 3,250 |
Operating lease liability - current portion | 425 | 442 |
Deferred revenue | 2,457 | 3,100 |
Total current liabilities | 14,528 | 11,987 |
Long-term liabilities | ||
Operating lease liability | 607 | 755 |
Contracts payable – net of current portion | 1,800 | 3,330 |
Total liabilities | 16,935 | 16,072 |
Commitments and contingencies | 0 | 0 |
Shareholders' equity | ||
Preferred stock, $0.001 par value — 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 19,983,703 and 19,937,961 shares issued and outstanding | 148,472 | 144,974 |
Retained earnings | 28,776 | 25,196 |
Accumulated other comprehensive loss | (210) | (141) |
Total shareholders' equity | 177,038 | 170,029 |
Total liabilities and shareholders' equity | 193,973 | 186,101 |
Intellectual property | ||
Long-term assets | ||
Intellectual property and other intangible assets, net of accumulated amortization | 7,873 | 8,689 |
Other Intangible Assets | ||
Long-term assets | ||
Intellectual property and other intangible assets, net of accumulated amortization | $ 12,935 | $ 12,825 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Feb. 29, 2024 | Aug. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Accounts receivable, allowance for credit loss, current | $ 30 | $ 46 |
Capitalized computer software, accumulated amortization | $ 17,962 | $ 17,199 |
Preferred stock, par or stated value per share (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par or stated value per share (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares, issued (in shares) | 19,983,703 | 19,937,961 |
Common stock, shares, outstanding (in shares) | 19,983,703 | 19,937,961 |
Intellectual property | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization of intellectual property | $ 10,117 | $ 9,301 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization of intellectual property | $ 2,606 | $ 2,107 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Revenues | ||||
Total revenues | $ 18,305 | $ 15,750 | $ 32,805 | $ 27,714 |
Cost of revenues | ||||
Total cost of revenues | 5,084 | 2,620 | 9,736 | 5,291 |
Gross profit | 13,221 | 13,130 | 23,069 | 22,423 |
Operating expenses | ||||
Research and development | 1,312 | 1,317 | 2,529 | 2,483 |
Sales and marketing | 1,949 | 1,730 | 3,938 | 3,215 |
General and administrative | 5,518 | 6,049 | 11,200 | 11,813 |
Total operating expenses | 8,779 | 9,096 | 17,667 | 17,511 |
Income from operations | 4,442 | 4,034 | 5,402 | 4,912 |
Other Income and Expenses [Abstract] | ||||
Other income | 810 | 1,034 | 2,256 | 1,774 |
Income before income taxes | 5,252 | 5,068 | 7,658 | 6,686 |
Provision for income taxes | (1,223) | (894) | (1,684) | (1,267) |
Net income | $ 4,029 | $ 4,174 | $ 5,974 | $ 5,419 |
Earnings per share | ||||
Earnings per share, basic (in usd per share) | $ 0.20 | $ 0.21 | $ 0.30 | $ 0.27 |
Earnings per share, diluted (in usd per share) | $ 0.20 | $ 0.20 | $ 0.29 | $ 0.26 |
Weighted-average common shares outstanding | ||||
Weighted average number of shares outstanding, basic (in shares) | 19,975 | 20,112 | 19,961 | 20,200 |
Weighted average number of shares outstanding, diluted (in shares) | 20,315 | 20,529 | 20,288 | 20,657 |
Other comprehensive (loss) income, net of tax | ||||
Foreign currency translation adjustments | $ (15) | $ (23) | $ (69) | $ 30 |
Comprehensive income | 4,014 | 4,151 | 5,905 | 5,449 |
Software | ||||
Revenues | ||||
Total revenues | 11,614 | 10,487 | 19,203 | 16,561 |
Cost of revenues | ||||
Total cost of revenues | 1,348 | 843 | 2,339 | 1,728 |
Services | ||||
Revenues | ||||
Total revenues | 6,691 | 5,263 | 13,602 | 11,153 |
Cost of revenues | ||||
Total cost of revenues | $ 3,736 | $ 1,777 | $ 7,397 | $ 3,563 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock and additional paid in capital | Retained earnings | Accumulated other comprehensive (loss) income |
Balance, beginning of period at Aug. 31, 2022 | $ 138,512 | $ 40,044 | $ (308) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options | 963 | |||
Stock-based compensation | 2,046 | |||
Shares issued to Directors for services | 300 | |||
Repurchase and retirement of common shares | (4,000) | (16,000) | ||
Declaration of dividends | (2,413) | |||
Net income | $ 5,419 | 5,419 | ||
Other comprehensive (loss) income | 30 | |||
Balance, end of period at Feb. 28, 2023 | $ 164,593 | 137,821 | 27,050 | (278) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.12 | |||
Balance, beginning of period at Nov. 30, 2022 | 140,306 | 40,071 | (255) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options | 205 | |||
Stock-based compensation | 1,160 | |||
Shares issued to Directors for services | 150 | |||
Repurchase and retirement of common shares | (4,000) | (16,000) | ||
Declaration of dividends | (1,195) | |||
Net income | $ 4,174 | 4,174 | ||
Other comprehensive (loss) income | (23) | |||
Balance, end of period at Feb. 28, 2023 | $ 164,593 | 137,821 | 27,050 | (278) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.06 | |||
Balance, beginning of period at Aug. 31, 2023 | $ 170,029 | 144,974 | 25,196 | (141) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options | 310 | |||
Stock-based compensation | 2,888 | |||
Shares issued to Directors for services | 300 | |||
Repurchase and retirement of common shares | 0 | 0 | ||
Declaration of dividends | (2,394) | |||
Net income | 5,974 | 5,974 | ||
Other comprehensive (loss) income | (69) | |||
Balance, end of period at Feb. 29, 2024 | $ 177,038 | 148,472 | 28,776 | (210) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.12 | |||
Balance, beginning of period at Nov. 30, 2023 | 146,591 | 25,945 | (195) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of stock options | 146 | |||
Stock-based compensation | 1,585 | |||
Shares issued to Directors for services | 150 | |||
Repurchase and retirement of common shares | 0 | 0 | ||
Declaration of dividends | (1,198) | |||
Net income | $ 4,029 | 4,029 | ||
Other comprehensive (loss) income | (15) | |||
Balance, end of period at Feb. 29, 2024 | $ 177,038 | $ 148,472 | $ 28,776 | $ (210) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.06 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Cash flows from operating activities | ||
Net income | $ 5,974 | $ 5,419 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 2,196 | 1,858 |
Change in fair value of contingent consideration | 330 | 0 |
Amortization of investment (discounts) premiums | (796) | (379) |
Stock-based compensation | 3,147 | 2,300 |
Deferred income taxes | (885) | 403 |
Currency translation adjustments | (69) | 30 |
(Increase) decrease in | ||
Accounts receivable | (2,913) | 2,389 |
Prepaid income taxes | (560) | 994 |
Prepaid expenses and other assets | (1,170) | (1,067) |
Accounts payable | 216 | 125 |
Other liabilities | 1,145 | (1,010) |
Deferred revenue | (643) | (814) |
Net cash provided by operating activities | 5,972 | 10,248 |
Cash flows from investing activities | ||
Purchases of property and equipment | (433) | (316) |
Purchase of short-term investments | (48,989) | (47,156) |
Proceeds from maturities of short-term investments | 36,252 | 48,151 |
Purchase of long-term investments | (9,024) | 0 |
Purchased intangibles | (467) | (77) |
Capitalized computer software development costs | (1,719) | (1,675) |
Net cash used in investing activities | (24,380) | (1,073) |
Cash flows from financing activities | ||
Payment of dividends | (2,394) | (2,413) |
Proceeds from the exercise of stock options | 310 | 963 |
Repurchase and retirement of common shares | 0 | (20,000) |
Net cash used in financing activities | (2,084) | (21,450) |
Net decrease in cash and cash equivalents | (20,492) | (12,275) |
Cash and cash equivalents, beginning of year | 57,523 | 51,567 |
Cash and cash equivalents, end of period | 37,031 | 39,292 |
Supplemental disclosures of cash flow information | ||
Income taxes paid | $ 3,142 | $ 93 |
ORGANIZATION AND LINES OF BUSIN
ORGANIZATION AND LINES OF BUSINESS | 6 Months Ended |
Feb. 29, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND LINES OF BUSINESS | ORGANIZATION AND LINES OF BUSINESS Organization Simulations Plus, Inc. (“Simulations Plus”) was incorporated on July 17, 1996. In September 2014, Simulations Plus acquired all of the outstanding equity interests of Cognigen Corporation (“Cognigen”) and Cognigen became a wholly owned subsidiary of Simulations Plus. In June 2017, Simulations Plus acquired DILIsym Services, Inc. (“DILIsym”) as a wholly owned subsidiary. In April 2020, Simulations Plus acquired Lixoft, a French société par actions simplifiée (“Lixoft” or “SLP France”), as a wholly owned subsidiary pursuant to a stock purchase and contribution agreement. In June 2023, Simulations Plus acquired Immunetrics, Inc. (“Immunetrics”) as a wholly owned subsidiary through a reverse triangular merger. (Simulations Plus together with its subsidiaries, collectively, the “Company,” “we,” “us,” “our”). Effective September 1, 2021, the Company merged both Cognigen and DILIsym with and into Simulations Plus through short-form mergers (the “Mergers”). To effectuate the Mergers, the Company filed Certificates of Ownership with the Secretaries of State of the states of Delaware (Cognigen’s and DILIsym’s state of incorporation) and California (Simulation Plus’ state of incorporation). Consummation of the Mergers was not subject to approval of the Company’s stockholders and did not impact the rights of the Company’s stockholders. On December 20, 2022, Simulations Plus International, Inc. (“SLPI”), a Delaware corporation, was created as a wholly owned subsidiary of Simulations Plus in order to facilitate future international acquisitions, if any, and global integrations. In furtherance of this objective, the Company added the trade name “SLP France” to Lixoft, and on April 25, 2023, Simulations Plus transferred its ownership of SLP France to SLPI pursuant to a contribution and acceptance agreement, resulting in SLP France becoming a wholly owned subsidiary of SLPI. The transfer did not impact the rights of the Company’s stockholders. Effective September 1, 2023, the Company merged Immunetrics with and into Simulations Plus through a short-form merger (the “Merger”). To effectuate the Merger, the Company filed Certificates of Ownership with the Secretaries of State of the states of Delaware (Immunetrics’ state of incorporation) and California (Simulation Plus’ state of incorporation). Consummation of the Merger was not subject to approval of the Company’s stockholders and did not impact the rights of the Company’s stockholders. At the beginning of fiscal year 2024, in order to create a more integrated and cohesive company, the Company reorganized its internal structure to move away from divisions based on its prior acquisitions and instead form business units organized around key product and service offerings that the Company provides, which include: • Cheminformatics; • Physiologically Based Pharmacokinetics (“PBPK”); • Quantitative Systems Pharmacology (“QSP”); • Clinical Pharmacology and Pharmacometrics (“CPP”); and • Regulatory Strategies. Lines of Business |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements include the accounts of Simulations Plus and its wholly owned operating subsidiaries, SLPI and SLP France. All significant intercompany accounts and transactions are eliminated in consolidation. 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. Reclassifications Certain numbers in the prior year have been reclassified to conform to the current year’s presentation. Revenue Recognition We generate revenue primarily from the sale of software licenses and by providing consulting services to the pharmaceutical industry for drug development. In accordance with ASC 606, we determine revenue recognition through the following steps: i. Identification of the contract, or contracts, with a customer ii. Identification of the performance obligations in the contract iii. Determination of the transaction price iv. Allocation of the transaction price to the performance obligations in the contract v. Recognition of revenue when, or as, we satisfy a performance obligation Components of Revenue The following is a description of principal activities from which the Company generates revenue. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. Standalone selling prices are determined based on the prices at which the Company separately sells its services or goods. Revenue Components Typical Payment Terms Software Revenues: Software revenues are generated primarily from sales of software licenses at the time the software is unlocked, and the term commences. The license period typically is one year or less. Along with the license, a di minimis amount of customer support is provided to assist the customer with the software. Should the customer need more than a di minimis amount of support, they can choose to enter into a separate contract for additional training. Most software is installed on our customers’ servers and the Company has no control of the software once the sale is made except for the licensing software that controls number of users, modules, and expiration dates. Payments are generally due upon invoicing on a net-30 basis, unless other payment terms are negotiated with the customer based on customer history. Typical industry standards apply. For certain software arrangements the Company hosts the licenses on servers maintained by the Company. Revenue for those arrangements is accounted as Software as a Service over the life of the contract. These arrangements account for a small portion of software revenues of the Company. Consulting Contracts: Consulting services provided to our customers are generally recognized over time as the contracts are performed and the services are rendered. The Company measures its consulting revenue based on time expended compared to total estimated hours to complete a project. The Company believes the method chosen for its contract revenue best depicts the transfer of benefits to the customer under the contracts. Payment terms vary, depending on the size of the contract, credit history and history with the client, and deliverables within the contract. Consortium-Member Based Services: The performance obligation is recognized on a time-elapsed basis, by month for which the services are provided, as the Company transfers control evenly over the contractual period. Payment is due at the beginning of the period, generally on a net-30 or -60 basis. Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. As of February 29, 2024, remaining performance obligations were $10.8 million. Ninety-four percent of the remaining performance obligations are expected to be recognized over the next 12 months, with the remainder expected to be recognized thereafter. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations and changes in the scope of contracts. Disaggregation of Revenues The components of disaggregation of revenue for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Software licenses Point in time $ 11,354 $ 10,191 $ 18,675 $ 15,993 Over time 260 296 528 568 Services Over time 6,691 5,263 13,602 11,153 Total revenue $ 18,305 $ 15,750 $ 32,805 $ 27,714 In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: (in thousands) Three Months Ended February 29, 2024 February 28, 2023 $ % of total $ % of total Americas $ 12,461 68 % $ 10,589 67 % EMEA 4,665 25 % 3,618 23 % Asia Pacific 1,179 7 % 1,543 10 % Total $ 18,305 100 % $ 15,750 100 % Six Months Ended (in thousands) February 29, 2024 February 28, 2023 $ % of total $ % of total Americas $ 23,352 71 % $ 19,089 69 % EMEA 6,967 21 % 5,748 21 % Asia Pacific 2,486 8 % 2,877 10 % Total $ 32,805 100 % $ 27,714 100 % Contract Balances We receive payments from customers based upon contractual billing schedules, while we recognize revenue when, or as, we satisfy our performance obligations. This timing difference results in accounts receivable, contract assets, and contract liabilities. We record accounts receivable when the right to consideration becomes unconditional. We record a contract asset if the right to consideration is conditioned on something other than the passage of time, such as our future performance. Contract assets are included in prepaid expenses and other current assets on our condensed consolidated balance sheets. We record a contract liability when we have an obligation to transfer goods or services to a customer for which we have either received consideration or a payment is due from a customer. We refer to contract liabilities as deferred revenue on our condensed consolidated balance sheets. Contract asset balances as of February 29, 2024, and August 31, 2023, were $2.6 million and $2.7 million, respectively. During the three and six months ended February 29, 2024, the Company recognized $0.4 million and $2.5 million, respectively, of revenue that was included in contract liabilities as of August 31, 2023, and during the three and six months ended February 28, 2023, the Company recognized $0.4 million and $2.3 million, respectively, of revenue that was included in contract liabilities as of August 31, 2022. Deferred Commissions Sales commissions earned by our sales force and our commissioned sales representatives are considered incremental and recoverable costs of obtaining a contract with a customer. We apply the practical expedient as described in ASC 340-40-25-4 to expense costs as incurred for sales commissions, since the amortization period of the asset that we otherwise would have recognized is one year or less. This expense is included in the condensed consolidated statements of operations and comprehensive income as sales and marketing expense. Cash and Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Accounts Receivable and Allowance for Credit Losses The Company extends credit to its customers in the normal course of business. The Company evaluates its allowance for credit losses based on its estimate of the collectability of its trade accounts receivable. As part of this assessment, the Company considers various factors including the financial condition of the individual companies with which it does business, the aging of receivable balances, historical experience, changes in customer payment terms, current market conditions, and reasonable and supportable forecasts of future economic conditions. In times of economic turmoil, the Company’s estimates and judgments with respect to the collectability of its receivables is subject to greater uncertainty than in more stable periods. Accounts receivable balances will be charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. The activity in the allowance for credit losses related to our trade receivables is summarized as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Balance, beginning of period $ 37 $ 12 $ 46 $ 12 Provision for credit losses (7) — (16) — Balance, end of period $ 30 $ 12 $ 30 $ 12 Investments The Company may invest excess cash balances in short-term and long-term marketable debt securities. Investments may consist of certificates of deposit, money market accounts, government-sponsored enterprise securities, corporate bonds, and/or commercial paper within the parameters of our Investment Policy and Guidelines. The Company accounts for its investments in marketable securities in accordance with ASC 320, Investments – Debt and Equity Securities. This statement requires debt securities to be classified into three categories: Held-to-maturity—Debt securities that the entity has the positive intent and ability to hold to maturity are measured at amortized cost and are presented at the net amount expected to be collected. Any change in the allowance for credit losses during the period is reflected in earnings. Discounts and premiums to par value of the debt securities are amortized to interest income/expense over the term of the security. Trading Securities—Debt securities that are bought and held primarily for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in earnings. Available-for-Sale—Debt securities not classified as either securities held-to-maturity or trading securities are reported at fair value. For available-for-sale debt securities in an unrealized-loss position, we evaluate as of the balance sheet date whether the unrealized losses are attributable to a credit loss or other factors. The portion of unrealized losses related to a credit loss is recognized in earnings, and the portion of unrealized loss not related to a credit loss is recognized in other comprehensive income (loss). We classify our investments in marketable debt securities based on the facts and circumstances present at the time of purchase of the securities. We subsequently reassess the appropriateness of that classification at each reporting date. During the three and six months ended February 29, 2024, and for the year ended August 31, 2023, all of our investments were classified as held-to-maturity. Capitalized Computer Software Development Costs Software development costs are capitalized in accordance with ASC 985-20. 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 revenue, estimated economic life, and changes in software and hardware technologies. Capitalized software development costs are comprised primarily of salaries and direct payroll-related costs and the purchase of existing software to be used in our software products. Amortization of capitalized software development costs is calculated 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 $0.4 million and $0.4 million, for the three months ended February 29, 2024, and February 28, 2023, respectively, and $0.8 million and $0.8 million for the six months ended February 29, 2024, and February 28, 2023, respectively. We expect future amortization expense to vary due to increases in capitalized computer software development costs. The Company assesses capitalized computer software development costs for impairment 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, or fair market value for property and equipment acquired in business combinations, less accumulated depreciation and amortization. Depreciation and amortization are calculated 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 the asset life or lease term Maintenance and minor replacements are charged to expense as incurred. Gains and losses on disposals are included in the results of operations. Internal-use Software We have capitalized certain internal-use software costs in accordance with ASC 350-40, which are included in intangible assets. The amortization of such costs is classified as general and administrative expenses on the condensed consolidated statements of operations. Maintenance of and minor upgrades to internal-use software are also classified as general and administrative expenses as incurred. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities (current and long-term) in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. The operating lease ROU asset also includes any lease payments made at or before the commencement date and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. Supplemental balance sheet information related to operating leases was as follows as of February 29, 2024: (in thousands) Right of use assets $ 1,062 Lease liabilities, current $ 425 Lease liabilities, long-term $ 607 Operating lease costs $ 239 Weighted-average remaining lease term 2.91 years Weighted-average discount rate 5.31 % Intangible Assets and Goodwill We perform valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and recognize the assets acquired and liabilities assumed at their acquisition-date fair value. Acquired intangible assets include customer relationships, software, trade names, and noncompete agreements. We determine the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Finite-lived intangible assets are amortized over their estimated useful lives using the straight-line method, which approximates the pattern in which the majority of the economic benefits are expected to be consumed. Finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill and indefinite-lived intangible assets are tested for impairment annually or when events or circumstances change that would indicate that they might be impaired. Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. Goodwill and the other assets and liabilities acquired as part of the Immunetrics acquisition have been assigned to our QSP reporting unit. Goodwill and intangible assets are tested for impairment at the reporting unit level, which is either one level below or the same level as an operating segment. Consistent with the reorganization of our internal structuring to move away from divisions based on our prior acquisitions to business units organized around key product and service offerings, as of February 29, 2024, our reporting units now include the following business units: • Cheminformatics; • Physiologically Based Pharmacokinetics (“PBPK”); • Quantitative Systems Pharmacology (“QSP”); • Clinical Pharmacology and Pharmacometrics (“CPP”); and • Regulatory Strategies. As part of this reorganization, we also took the opportunity to evaluate our departmental structure with a focus on continuing to improve operational performance and profitability. Accordingly, we moved all services personnel into cost of revenues departments, all research and development (“R&D”) personnel into R&D expense departments, all sales and marketing personnel into sales and marketing expense departments, and all overhead personnel into general and administrative expense departments. To provide investors improved visibility to our progress, we also decided to report separately our sales and marketing expenses from our general and administrative expenses. Reconciliation of Goodwill for the six months ended February 29, 2024: (in thousands) CPP QSP Total Balance, August 31, 2023 $ 7,323 $ 11,776 $ 19,099 Addition — — — Impairments — — — Balance, February 29, 2024 $ 7,323 $ 11,776 $ 19,099 The following table summarizes other intangible assets as of February 29, 2024: (in thousands) Amortization Acquisition Accumulated Net Book Value Trade names None $ 4,210 $ — $ 4,210 Covenants not to compete Straight line 2 to 3 years 30 11 19 Other internal use software Straight line 3 to 5 years 542 23 519 Customer relationships Straight line 8 to 14 years 8,230 2,283 5,947 ERP Straight line 15 years 2,529 289 2,240 $ 15,541 $ 2,606 $ 12,935 The following table summarizes other intangible assets as of August 31, 2023: (in thousands) Amortization Acquisition Accumulated Net Book Value Trade names None $ 4,210 $ — $ 4,210 Covenants not to compete Straight line 3 years 30 3 27 Other internal use software Straight line 3 to 5 years 350 10 340 Customer relationships Straight line 8 to 14 years 8,230 1,887 6,343 ERP Straight line 15 years 2,112 207 1,905 $ 14,932 $ 2,107 $ 12,825 Total amortization expense for the three months ended February 29, 2024, and February 28, 2023 was $0.3 million and $0.1 million , respectively, and amortization expense for the six months ended February 29, 2024, and February 28, 2023 was $0.5 million and $0.3 million, respectively. Estimated future amortization of finite-lived intangible assets for the next five fiscal years are as follows: (in thousands) Years Ending August 31, Amount Remainder of 2024 $ 494 2025 $ 957 2026 $ 945 2027 $ 898 2028 $ 755 Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories are as follows: Level Input: Input Definition: Level I Inputs that 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. For certain of our financial instruments, including accounts receivable, accounts payable, and accrued compensation and other accrued expenses, the carrying amounts are representative of their fair values due to their short maturities. We invest a portion of our excess cash balances in short-term debt securities and long-term debt securities. Short-term debt securities investments as of February 29, 2024 and August 31, 2023, consisted of corporate bonds and term deposits with maturities remaining of less than 12 months. Long-term debt securities investments consisted of investment grade corporate debt. In addition, under the fair-value hierarchy, the fair market values of the Company’s cash equivalents and investments are Level I. We may also invest excess cash balances in certificates of deposit, money market accounts, government-sponsored enterprise securities, and/or commercial paper. We account for our investments in accordance with ASC 320, Investments – Debt and Equity Securities. As of February 29, 2024, all investments were classified as held-to-maturity securities, as we have the positive intent and ability to hold these securities until maturity. We believe unrealized losses on investments were primarily caused by rising interest rates rather than changes in credit quality, and, accordingly, we have not recorded an allowance for credit losses on our debt securities as of February 29, 2024 and August 31, 2023. The following tables summarize our short-term investments as of February 29, 2024, and August 31, 2023: February 29, 2024 (in thousands) Amortized cost Unrealized gains Unrealized losses Fair value Short-term investments: Commercial notes (due within one year) $ 67,473 $ — $ (177) $ 67,296 Term deposits (due within one year) 4,000 — — 4,000 Total short-term investments $ 71,473 $ — $ (177) $ 71,296 Long-term investments: Commercial notes (due within 15 months) $ 9,024 $ 91 $ — $ 9,115 Total investments $ 80,497 $ 91 $ (177) $ 80,411 August 31, 2023 (in thousands) Amortized cost Unrealized gains Unrealized losses Fair value Short-term investments: Commercial notes (due within one year) $ 53,940 $ — $ (115) $ 53,825 Term deposits (due within one year) 4,000 — — 4,000 Total short-term investments $ 57,940 $ — $ (115) $ 57,825 As of February 29, 2024 and August 31, 2023 , the Company had a liability for contingent consideration related to its acquisition of Immunetrics. The fair value measurement of the contingent consideration obligations is determined using Level 3 inputs. The fair value of contingent consideration obligations is based on a discounted cash flow model using a probability-weighted income approach. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in markets. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense the Company records in any given period. Changes in the fair value of the contingent consideration obligations are recorded in the Company’s Condensed Consolidated Statement of Operations. The following is a reconciliation of contingent consideration at fair value: (in thousands) Amount Contingent consideration at August 31, 2023 $ 4,780 Change in fair value of contingent consideration 330 Contingent consideration at February 29, 2024 $ 5,110 Business Combination The acquisition method of accounting for business combinations requires us to use significant estimates and assumptions, including fair value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for a business combination). Under the acquisition method of accounting, we recognize separately from goodwill the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree, generally at the acquisition-date fair value. We measure goodwill as of the acquisition-date as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed. Costs that we incur to complete the business combination, such as investment banking, legal, and other professional fees, are not considered part of consideration, and we recognize such costs as general and administrative expenses as they are incurred. Under the acquisition method, we also account for acquired-company restructuring activities that we initiate separately from the business combination. Should the initial accounting for a business combination be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date, and we record those adjustments to our financial statements. We apply those measurement-period adjustments that we determine to be material retrospectively to comparative information in our financial statements, including adjustments to depreciation and amortization expense. Under the acquisition method of accounting for business combinations, if we identify changes to acquired deferred-tax asset valuation allowances or liabilities related to uncertain tax positions during the measurement period, and they relate to new information obtained about facts and circumstances that existed as of the acquisition date, those changes are considered a measurement period adjustment and we record the offset to goodwill. We record all other changes to deferred-tax asset valuation allowances and liabilities related to uncertain tax positions in current-period income tax expense. This accounting applies to all of our acquisitions regardless of acquisition date. 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 experiments, and purchased software that was developed by other companies and incorporated into, or used in the development of, our final products. Income Taxes We account for income taxes in accordance with ASC 740, 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. Intellectual property In May 2014, we entered into a termination and non-assertion agreement with TSRL, Inc., pursuant to which the parties agreed to terminate an exclusive software licensing agreement entered into between the parties in 1997. As a result, the Company obtained a perpetual right to use certain source code and data, and TSRL relinquished any rights and claims to any GastroPlus products and to any claims, royalties, or other payments under that 1997 agreement. We agreed to pay TSRL total consideration of $6.0 million, which is being amortized over 10 years under the straight-line method. In June 2017, as part of the acquisition of DILIsym, the Company acquired certain developed technologies associated with drug-induced liver disease (DILI). These technologies were valued at $2.9 million and are being amortized over 9 years under the straight-line method. In September 2018, we purchased certain intellectual property rights of Entelos Holding Company. The cost of $0.1 million is being amortized over 10 years under the straight-line method. In April 2020, as part of the acquisition of Lixoft, the Company acquired certain developed technologies associated with the Lixoft scientific software. These technologies were valued at $8.0 million and are being amortized over 16 years under the straight-line method. In June 2023, we purchased certain developed technology of Immunetrics. The cost of $1.1 million is being amortized over 5 years under the straight-line method. The following table summarizes intellectual property as of February 29, 2024: (in thousands) Amortization Acquisition Accumulated Net Book Termination/nonassertion agreement-TSRL Inc. Straight line 10 years $ 6,000 $ 5,875 $ 125 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 2,136 714 Intellectual rights of Entelos Holding Company Straight line 10 years 50 27 23 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 1,926 6,084 Developed technologies–Immunetrics acquisition Straight line 5 years 1,080 153 927 $ 17,990 $ 10,117 $ 7,873 The following table summarizes intellectual property as of August 31, 2023: (in thousands) Amortization Acquisition Accumulated Net Book Termination/nonassertion agreement-TSRL Inc. Straight line 10 years $ 6,000 $ 5,575 $ 425 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,978 872 Intellectual rights of Entelos Holding Company Straight line 10 years 50 25 25 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 1,678 6,332 Developed technologies–Immunetrics acquisition Straight line 5 years 1,080 45 1,035 $ 17,990 $ 9,301 $ 8,689 Total amortization expense for intellectual property agreements for the three months ended February 29, 2024, and February 28, 2023 was $0.4 million and $0.4 million , respectively, and $0.8 million and $0.7 million for the six months ended February 29, 2024 and February 28, 2023, respectively. Estimated future amortization of intellectual property for the next five fiscal years is as follows: (in thousands) Years Ending August 31, Amount Remainder of 2024 $ 618 2025 $ 1,009 2026 $ 933 2027 $ 693 2028 $ 648 Earnings per Share We report earnings per share in accordance with ASC 260. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding. 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 three and six months ended February 29, 2024, and February 28, 2023, were as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Numerator Net income attributable to common |
OTHER INCOME
OTHER INCOME | 6 Months Ended |
Feb. 29, 2024 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME | OTHER INCOME The components of other income for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Interest income $ 1,348 $ 985 $ 2,640 $ 1,756 Change in fair valuation of contingent consideration (440) — (330) — (Loss) gain on currency exchange (98) 49 (54) 18 Total other income $ 810 $ 1,034 $ 2,256 $ 1,774 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Feb. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases We lease 4,200 square feet of office space in Lancaster, California, where our corporate headquarters are located. The lease term extends to April 30, 2028, and the base rent is $8 thousand per month with an annual increase of 3%. The lease agreement gives the Company the right, upon 180 days prior notice, to opt out of all or part of the last three years of the lease term with no penalty. We lease 1,510 square feet of office space in Durham, North Carolina. The lease term extends to September 30, 2026, and the base rent is $4 thousand per month with an annual increase of 3%. The amended lease agreement gives the Company the right, upon 9 months prior notice, to extend the lease for 60 months. We lease 4,317 square feet of office space in Buffalo, New York. The lease term extends to November 30, 2026, and the base rent is $7 thousand per month with an annual 2% increase. The lease agreement provides the Company with two five-year renewal options and the right to terminate the lease with one year’s prior written notice with certain penalties. We lease 2,300 square feet of office space in Paris, France. The lease term extends to November 30, 2024, and the rent is $5 thousand per month, which amount is subject to adjustment each December based on a consumer price index. We lease 7,141 square feet of office space in Pittsburgh, Pennsylvania. The lease term extends to May 31, 2025, and the base rent is $10 thousand per month. The lease agreement provides the Company with one five-year renewal option. We have a data center colocation space in Buffalo, New York, with a lease term through November 30, 2026, and rent of $6 thousand per month with an annual 3% increase. Rent expense, including common area maintenance fees, for the three months ended February 29, 2024, and February 28, 2023, was $0.1 million and $0.1 million respectively, and $0.3 million and $0.3 million for the six months ended February 29, 2024, and February 28, 2023, respectively. Lease liability maturities as of February 29, 2024, were as follows: (in thousands) Years Ending August 31, Amount Remainder of 2024 $ 237 2025 411 2026 313 2027 145 2028 68 Total undiscounted liabilities 1,174 Less: imputed interest (142) Total operating lease liabilities (including current portion) $ 1,032 Employment Agreements In the normal course of business, the Company has entered into employment agreements with certain of its executive officers that may require compensation payments upon termination. Income Taxes We follow guidance issued by the FASB with regard to our 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 income tax expense. We file income tax returns with the IRS and various state jurisdictions as well as with the countries of India and France. Our federal income tax returns for fiscal years 2020 through 2023 are open for audit, and our state tax returns for fiscal years 2019 through 2023 remain open for audit. 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 our financial position or results of operations. Litigation We are not a party to any legal proceedings and are not aware of any pending or threatened legal proceedings of any kind. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Shares Outstanding Shares of Company's common stock outstanding for the three and six months ended February 29, 2024 and February 28, 2023 were as follows: Three Months Ended February 29, Six Months Ended February 29, (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Common stock outstanding, beginning of period 19,966 20,314 19,938 20,260 Common stock repurchased during the period — (409) — (409) Common stock issued during the period 18 26 46 79 Common stock outstanding, end of period 19,984 19,931 19,984 19,931 Dividends The Company’s Board of Directors declared cash dividends during the six months ended February 29, 2024 and fiscal year 2023. The details of dividends paid are in the following tables: (in thousands, except dividend per share) Six Months Ended February 29, 2024 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/30/2023 11/06/2023 19,939 $ 0.06 $ 1,196 1/29/2024 2/05/2024 19,973 $ 0.06 1,198 Total $ 2,394 (in thousands, except dividend per share) Fiscal Year 2023 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/31/2022 11/07/2022 20,299 $ 0.06 $ 1,218 1/30/2023 2/06/2023 19,924 $ 0.06 1,195 4/24/2023 5/01/2023 19,999 $ 0.06 1,200 7/31/2023 8/07/2023 19,931 $ 0.06 1,196 Total $ 4,809 Stock Option Plans On December 23, 2016, the Company’s Board of Directors adopted, and on February 23, 2017, its shareholders approved, the Company’s 2017 Equity Incentive Plan (the “2017 Plan”), under which a total of 1.0 million shares of common stock were initially reserved for issuance. The 2017 plan would have terminated pursuant to its terms in December 2026; however, the 2017 Plan was replaced by the Company’s 2021 Plan (as defined below), and as a result, no further issuances of shares may be made under the 2017 Plan. On April 9, 2021, the Company’s Board of Directors adopted, and on June 23, 2021, its shareholders approved, the Company’s 2021 Equity Incentive Plan (the “2021 Plan,” and together with the 2017 Plan, the “Plans”), under which a total of 1.3 million shares of common stock were initially reserved for issuance. On October 20, 2022, the Company’s Board of Directors approved, and on February 9, 2023, its shareholders approved, an amendment to the 2021 Plan to increase the number of shares of common stock authorized for issuance thereunder from 1.3 million shares to 1.55 million shares of common stock of the Company. Thereafter, on October 19, 2023, the Company’s Board of Directors approved, and on February 8, 2024, its shareholders approved, an amendment to the 2021 Plan to increase the number of shares of common stock authorized for issuance thereunder from 1.55 million to 2.5 million shares of common stock of the Company. The 2021 Plan will terminate in 2031. As of February 29, 2024, employees and directors of the Company held Qualified Incentive Stock Options (“ISOs”) and Non-Qualified Stock Options (“NQSOs”) to purchase an aggregate of 1.9 million shares of common stock at exercise prices ranging from $6.85 to $66.14 per share. The following table summarizes information about stock options: (in thousands, except per share and weighted-average amounts) Activity for the six months ended February 29, 2024 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2023 1,478 $ 34.62 6.62 years Granted 515 40.34 Exercised (49) 14.47 Canceled/Forfeited (11) 45.38 Outstanding, February 29, 2024 1,933 $ 36.58 7.13 years Vested and Exercisable, February 29, 2024 861 $ 29.14 4.95 years Vested and Expected to Vest, February 29, 2024 1,852 $ 36.40 7.02 years The total grant-date fair value of nonvested stock options as of February 29, 2024, was $21.7 million and is amortizable over a weighted-average period of 3.5 years. The fair value of these options was estimated at the date of grant using the Black-Scholes option-pricing model. 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. The following table summarizes the fair value of the options, including both ISOs and NQSOs, granted during the six-month period ended February 29, 2024 and fiscal year 2023: (in thousands, except weighted-average amounts) Six Months Ended February 29, 2024 Fiscal Year 2023 Estimated fair value of awards granted $ 10,256 $ 10,067 Unvested Forfeiture Rate 6.38 % 0.22 % Weighted-average grant price $ 40.34 $ 43.78 Weighted-average market price $ 40.34 $ 43.78 Weighted-average volatility 44.70 % 46.14 % Weighted-average risk-free rate 4.86 % 4.29 % Weighted-average dividend yield 0.60 % 0.55 % Weighted-average expected life 6.59 years 6.55 years The exercise prices for the options outstanding at February 29, 2024, ranged from $6.85 to $66.14, and the information relating to these options are as follows: (in thousands except prices and weighted-average amounts) Exercise Price Awards Outstanding Awards Exercisable Low High Quantity Weighted -Average Weighted-Average Quantity Weighted-Average Weighted-Average $ 6.85 $ 9.77 180 1.56 years $ 8.88 180 1.56 years $ 8.88 $ 9.78 $ 18.76 146 2.99 years $ 10.08 146 2.99 years $ 10.08 $ 18.77 $ 33.40 182 5.16 years $ 25.72 163 5.09 years $ 25.01 $ 33.41 $ 47.63 1,154 8.84 years $ 41.34 213 7.66 years $ 40.92 $ 47.64 $ 66.14 271 7.07 years $ 56.32 159 6.80 years $ 57.87 1,933 7.13 years $ 36.58 861 4.95 years $ 29.14 During the three and six months ended February 29, 2024, we issued 3,960 and 8,215 shares of stock valued at $0.2 million and $0.3 million, respectively, to our nonmanagement directors as compensation for board-related duties. The Company's par-value common stock and additional paid-in capital as of February 29, 2024, were $11 thousand and $148.5 million, respectively. Share Repurchases No share repurchases were made during the six months ended February 29, 2024. On December 29, 2022, our Board of Directors authorized and approved a share repurchase program for up to $50 million of the outstanding shares of our common stock, and on January 11, 2023, we entered into an accelerated share repurchase agreement (the “ASR Agreement”) with Morgan Stanley & Co. LLC (“Morgan Stanley”) to repurchase an aggregate of $20 million of our outstanding shares of common stock as part of the share repurchase program, which was settled in full in May 2023. The share repurchase program has no expiration date but may be terminated at any time at our Board of Directors’ discretion. In January 2023, we received an initial delivery of an aggregate of 408,685 shares of our common stock from Morgan Stanley pursuant to the ASR Agreement, in exchange for which we made an initial payment of $20 million to Morgan Stanley. These 408,685 shares were retired and are treated as authorized, unissued shares. At final settlement on May 20, 2023, based on the volume-weighted average price of our common stock during the term of the ASR Agreement, Morgan Stanley delivered an additional 83,356 shares of Company common stock to us, which shares were also retired and treated as authorized, unissued shares. After completion of the repurchases under the ASR Agreement, $30 million remains available for additional repurchases under our authorized repurchase program. |
CONCENTRATIONS AND UNCERTAINTIE
CONCENTRATIONS AND UNCERTAINTIES | 6 Months Ended |
Feb. 29, 2024 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND UNCERTAINTIES | CONCENTRATIONS AND UNCERTAINTIES Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents, trade accounts receivable, and short-term investments. The Company holds cash and cash equivalents with balances that exceed FDIC-insured limits. Cash maintained in excess of these limits is on deposit with a large, national bank. Accordingly, the Company does not have depository exposure to regional banks. In addition, the Company holds cash at a bank in France that is not FDIC-insured. Historically, the Company has not experienced any losses in such accounts, and management believes that the financial institutions at which its cash is held are stable; however, no assurances can be provided. 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 29% and 31% of revenue for the six months ended February 29, 2024 and February 28, 2023, respectively. Our three largest customers in terms of revenue accounted for 11%, 4%, and 3% of revenue, respectively, for the six months ended February 29, 2024. Our four largest customers in terms of revenue accounted for 6%, 5%, 3%, and 3% of revenue, respectively, for the six months ended February 28, 2023. Accounts-receivable concentrations show that our five largest customers in terms of accounts receivable each comprised between 4% and 19% of accounts receivable as of February 29, 2024; our six largest customers in terms of accounts receivable comprised between 5% and 13% of accounts receivable as of February 28, 2023. The largest customer, which comprised 19% of accounts receivable as of February 29, 2024, was current with respect to all open invoices within a de minimis amount. Of the $2.4 million of open accounts receivable from this customer as of February 29, 2024, $1.8 million was received from the customer by March 22, 2024. We operate in the biosimulation market, 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. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company applies ASC 280, Segment Reporting, in determining reportable segments. The Company has two reportable segments: Software and Services. Segment information is presented in the same manner that the chief operating decision maker (“CODM”) reviews certain financial information based on these reportable segments. The CODM reviews revenue and gross profit for both of the reportable segments. Gross profit is defined as revenue less cost of revenue incurred by the segment. No operating segments have been aggregated to form the reportable segments. The Company does not allocate assets at the reportable segment level, as these are managed on an entity-wide group basis and, accordingly, the Company does not report asset information by segment. The Company does not allocate operating expenses that are managed on an entity-wide group basis and, accordingly, the Company does not allocate and report operating expenses at a segment level. There are no internal revenue transactions between the Company’s segments. The following tables summarize the results for each segment for the three months ended February 29, 2024, and February 28, 2023: (in thousands) Three Months Ended February 29, 2024 Software Services Total Revenues $ 11,614 $ 6,691 $ 18,305 Cost of revenues 1,348 3,736 5,084 Gross profit $ 10,266 $ 2,955 $ 13,221 Gross margin 88 % 44 % 72 % Our software business and services business represented 63% and 37% of total revenue, respectively, for the three months ended February 29, 2024. (in thousands) Three Months Ended February 28, 2023 Software Services Total Revenues $ 10,487 $ 5,263 $ 15,750 Cost of revenues 843 1,777 2,620 Gross profit $ 9,644 $ 3,486 $ 13,130 Gross margin 92 % 66 % 83 % Our software business and services business represented 67% and 33% of total revenue, respectively, for the three months ended February 28, 2023. Software Business For the three months ended February 29, 2024, the revenue increase of $1.1 million, or 11%, compared to the three months ended February 28, 2023, was primarily due to higher revenues from Monolix™ of $0.8 million, and higher revenues from ADMET Predictor® of $0.3 million. Cost of revenues increased $0.5 million, or 60%, primarily due to $0.2 million from the acquisition of Immunetrics, and gross profit increased by $0.6 million, or 6%, primarily due to the increase in revenues. Services Business For the three months ended February 29, 2024, the revenue increase of $1.4 million, or 27%, compared to the three months ended February 28, 2023, was primarily due to higher revenues from QSP services of $0.8 million, PBPK services of $0.5 million, higher revenues from PKPD services of $0.3 million, offset by lower revenues from REG services of $0.1 million. Cost of revenues increased by $2.0 million, or 110% primarily driven by $1.3 million from the reorganization of our internal structure from divisions based on prior acquisitions to business units organized around key product and service offerings and $0.4 million from the acquisition of Immunetrics, which contributed to our services headcount. Our new business unit structure is designed to optimize the utilization of our scientific talent in support of our revenue growth objectives. Gross profit decreased by $0.5 million, or 15%, for the same periods. The following tables summarize the results for each segment for the six months ended February 29, 2024 and February 28, 2023: (in thousands) Six Months Ended February 29, 2024 Software Services Total Revenues $ 19,203 $ 13,602 $ 32,805 Cost of revenues 2,339 7,397 9,736 Gross profit $ 16,864 $ 6,205 $ 23,069 Gross margin 88 % 46 % 70 % Our software business and services business represented 59% and 41% of total revenue, respectively, for the six months ended February 29, 2024. (in thousands) Six Months Ended February 28, 2023 Software Services Total Revenues $ 16,561 $ 11,153 $ 27,714 Cost of revenues 1,728 3,563 5,291 Gross profit $ 14,833 $ 7,590 $ 22,423 Gross margin 90 % 68 % 81 % Our software business and services business represented 60% and 40% of total revenue, respectively, for the six months ended February 28, 2023. Software Business For the six months ended February 29, 2024, the revenue increase of $2.6 million, or 16%, compared to the six months ended February 28, 2023, was primarily due to higher revenues from GastroPlus® of $1.0 million, higher revenues from Monolix™ of $0.8 million , higher revenues from QSP of $0.6 million, and higher revenues from ADMET Predictor® of $0.3 million. Cost of revenues increased by $0.6 million, or 35%, primarily due to $0.4 million from the acquisition of Immunetrics, and gross profit increased by $2.0 million, or 14%, primarily due to increase in revenues, for the six months ended February 29, 2024, compared to the six months ended February 28, 2023. Services Business For the six months ended February 29, 2024, the revenue increase of $2.4 million, or 22%, compared to the six months ended February 28, 2023, was primarily due to higher revenues from QSP services of $1.9 million, due to the addition of Immunetrics services revenues of $1.1 million, higher revenues of $0.8 million of the remaining QSP services, and higher revenues from PBPK services of $0.3 million, offset by lower revenues from REG services of $0.3 million. Cost of revenues increased by $3.8 million, or 108%, primarily driven by $1.9 million from the reorganization of our internal structure from divisions based on prior acquisitions to business units organized around key product and service offerings, $1.3 million from compensation costs due to expanding our scientific headcount as well as general annual salary adjustments, and $0.7 million from the acquisition of Immunetrics, which contributed to our services headcount. Our new business unit structure is designed to optimize the utilization of our scientific talent in support of our revenue growth objectives. Gr oss profit decreased accordingly by $1.4 million, or 18%, for the same periods. |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 6 Months Ended |
Feb. 29, 2024 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLAN We maintain a 401(k) Plan for eligible employees. We make matching contributions equal to 100% of the employee’s elective deferral, not to exceed 4% of the employee’s gross salary. We contributed $0.2 million and $0.2 million for the three months ended February 29, 2024 and February 28, 2023, respectively, and $0.4 million and $0.3 million for the six months ended February 29, 2024, and February 28, 2023, respectively. |
GOVERNMENT ASSISTANCE
GOVERNMENT ASSISTANCE | 6 Months Ended |
Feb. 29, 2024 | |
Government Assistance [Abstract] | |
GOVERNMENT ASSISTANCE | GOVERNMENT ASSISTANCE The Company receives government assistance in the form of cash grants which vary in size, duration, and conditions from domestic governmental agencies. Accounting for the grant revenue does not fall under ASC 606, Revenue from Contracts with Customers, as the Government will not benefit directly from our offerings. For government assistance in which no specific US GAAP applies, the Company accounts for such transactions as revenue and by analogy to a grant model. The grant revenue is recognized on a gross basis. The grant revenue is recognized over the duration of the program when the conditions attached to the grant are achieved. If conditions are not satisfied, the grants are often subject to reduction, repayment, or termination. The Company classifies the impact of government assistance on the accompanying Condensed Consolidated Statements of Operations and Comprehensive Income as services revenue. The Company received assistance from domestic governmental agencies to provide reimbursement for various costs incurred for research and development. These include direct grant awards and subawards. The grants awarded are currently set to expire at various dates through 2025. During the three months ended February 29, 2024, and February 28, 2023 , the Company recog nized $0.4 million and $0.4 million, respectively, and $0.7 million and $0.6 million for the six months ended February 29, 2024, and February 28, 2023, respectively, within Services revenues |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Feb. 29, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Dividend Declared On Thursday, April 3, 2024, our Board of Directors declared a quarterly cash dividend of $0.06 per share to our shareholders. The dividend in the amount of approximately $1.2 million will be distributed on Monday, May 6, 2024, for shareholders of record as of Monday, April 29, 2024. Earnout payment In March 2024, the Company made cash earnout payments in the aggregate amount of $2.5 million to the former equity holders and employees of Immunetrics, pursuant to the terms of that Earnout Agreement, dated June 16, 2023, entered into by and among the Company, Immunetrics and certain other parties in connection with the Immunetrics acquisition. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 4,029 | $ 4,174 | $ 5,974 | $ 5,419 |
Insider Trading Arrangements
Insider Trading Arrangements shares in Thousands | 3 Months Ended | 6 Months Ended |
Feb. 29, 2024 shares | Feb. 29, 2024 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The adoption or termination of contracts, instructions or written plans for the purchase or sale of our securities by our Section 16 officers and directors for the quarter ended February 29, 2024, each of which is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1 Plan”), were as follows: Name Title Action Date Adopted Expiration Date Aggregate # of Securities to be Purchased/Sold Dr. Lisa LaVange (1) Director Termination 01/11/2023 01/20/2024 5,340 John DiBella (2) Business Unit President Termination 01/31/2023 02/27/2024 41,505 Dr. Lisa LaVange (1) Director Adoption 02/06/2024 02/08/2025 4,600 Dr. Daniel Wiener (3) Director Termination 01/17/2023 02/06/2024 9,874 Dr. Daniel Wiener (3) Director Adoption 02/06/2024 02/08/2025 12,000 (1) On January 20, 2024, the pre-arranged stock trading plan pursuant to Rule 10b5-1, adopted by Dr. Lisa LaVange on January 11, 2023, automatically terminated pursuant to its terms. The expired plan provided for (i) the potential exercise of vested stock options and the associated sale of up to 4,000 shares of Company common stock underlying such options, and (ii) the potential sale of up to an additional 1,340 shares of Company common stock until January 20, 2024. On February 6, 2024, Dr. LaVange entered into a new pre-arranged stock trading plan pursuant to Rule 10b5-1, which provides for (i) the potential exercise of vested stock options and the associated sale of up to 1,000 shares of Company common stock underlying such options, and (ii) the potential sale of up to an additional 3,600 shares of Company common stock. The new plan expires on February 8, 2025, or upon the earlier completion of all authorized transactions under the new plan. (2) On February 27, 2024, the pre-arranged stock trading plan pursuant to Rule 10b5-1, adopted by John DiBella on January 31, 2023, automatically terminated pursuant to its terms. The expired plan provided for the potential sale of up to 41,505 shares of Company common stock until February 27, 2024. (3) On February 6, 2024, Dr. Daniel Weiner materially amended that pre-arranged stock trading plan pursuant to Rule 10b5-1 adopted by Dr. Weiner on January 17, 2023, resulting in an effective termination of such plan and adoption of a new pre-arranged stock trading plan pursuant to Rule 10b5-1. Prior to the amendment (and effective termination), the plan provided for (i) the potential exercise of vested stock options and the associated sale of up to 6,000 shares of Company common stock underlying such options, and (ii) the potential sale of up to an additional 3,874 shares of Company common stock until January 27, 2025. As amended, the plan provides for (i) the potential exercise of vested stock options and the associated sale of up to 6,000 shares of Company common stock underlying such options, and (ii) the potential sale of up to an additional 6,000 shares of Company common stock. The plan, as amended, expires on February 8, 2025, or upon the earlier completion of all authorized transactions under the plan The Rule 10b5-1 trading arrangements described above were adopted and precleared in accordance with the Company’s Insider Trading Policy and actual sale transactions made pursuant to such trading arrangements will be disclosed publicly in future Section 16 filings with the SEC. Other than those disclosed above, none of our directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” in each case as defined in Item 408 of Regulation S-K. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Dr. Lisa LaVange January 2023 Plan [Member] | ||
Trading Arrangements, by Individual | ||
Name | Dr. Lisa LaVange | |
Title | Director | |
Adoption Date | 01/11/2023 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | 01/20/2024 | |
Arrangement Duration | 374 days | |
Aggregate Available | 5,340 | 5,340 |
John DiBella January 2023 Plan [Member] | ||
Trading Arrangements, by Individual | ||
Name | John DiBella | |
Title | Business Unit President | |
Adoption Date | 01/31/2023 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | 02/27/2024 | |
Arrangement Duration | 392 days | |
Aggregate Available | 41,505 | 41,505 |
Dr. Lisa LaVange February 2024 Plan [Member] | ||
Trading Arrangements, by Individual | ||
Name | Dr. Lisa LaVange | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 02/06/2024 | |
Arrangement Duration | 368 days | |
Aggregate Available | 4,600 | 4,600 |
Dr. Daniel Wiener January 2023 Plan [Member] | ||
Trading Arrangements, by Individual | ||
Name | Dr. Daniel Wiener | |
Title | Director | |
Adoption Date | 01/17/2023 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | 02/06/2024 | |
Arrangement Duration | 385 days | |
Aggregate Available | 9,874 | 9,874 |
Dr. Daniel Wiener February 2024 Plan [Member] | ||
Trading Arrangements, by Individual | ||
Name | Dr. Daniel Wiener | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | 02/06/2024 | |
Arrangement Duration | 368 days | |
Aggregate Available | 12,000 | 12,000 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Simulations Plus and its wholly owned operating subsidiaries, SLPI and SLP France. All significant intercompany accounts and transactions are eliminated in consolidation. |
Use of 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. |
Reclassifications | Reclassifications Certain numbers in the prior year have been reclassified to conform to the current year’s presentation. |
Revenue Recognition | Revenue Recognition We generate revenue primarily from the sale of software licenses and by providing consulting services to the pharmaceutical industry for drug development. In accordance with ASC 606, we determine revenue recognition through the following steps: i. Identification of the contract, or contracts, with a customer ii. Identification of the performance obligations in the contract iii. Determination of the transaction price iv. Allocation of the transaction price to the performance obligations in the contract v. Recognition of revenue when, or as, we satisfy a performance obligation Components of Revenue The following is a description of principal activities from which the Company generates revenue. As part of the accounting for these arrangements, the Company must develop assumptions that require judgment to determine the standalone selling price for each performance obligation identified in the contract. Standalone selling prices are determined based on the prices at which the Company separately sells its services or goods. Revenue Components Typical Payment Terms Software Revenues: Software revenues are generated primarily from sales of software licenses at the time the software is unlocked, and the term commences. The license period typically is one year or less. Along with the license, a di minimis amount of customer support is provided to assist the customer with the software. Should the customer need more than a di minimis amount of support, they can choose to enter into a separate contract for additional training. Most software is installed on our customers’ servers and the Company has no control of the software once the sale is made except for the licensing software that controls number of users, modules, and expiration dates. Payments are generally due upon invoicing on a net-30 basis, unless other payment terms are negotiated with the customer based on customer history. Typical industry standards apply. For certain software arrangements the Company hosts the licenses on servers maintained by the Company. Revenue for those arrangements is accounted as Software as a Service over the life of the contract. These arrangements account for a small portion of software revenues of the Company. Consulting Contracts: Consulting services provided to our customers are generally recognized over time as the contracts are performed and the services are rendered. The Company measures its consulting revenue based on time expended compared to total estimated hours to complete a project. The Company believes the method chosen for its contract revenue best depicts the transfer of benefits to the customer under the contracts. Payment terms vary, depending on the size of the contract, credit history and history with the client, and deliverables within the contract. Consortium-Member Based Services: The performance obligation is recognized on a time-elapsed basis, by month for which the services are provided, as the Company transfers control evenly over the contractual period. Payment is due at the beginning of the period, generally on a net-30 or -60 basis. Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. As of February 29, 2024, remaining performance obligations were $10.8 million. Ninety-four percent of the remaining performance obligations are expected to be recognized over the next 12 months, with the remainder expected to be recognized thereafter. Remaining performance obligations estimates are subject to change and are affected by several factors, including contract terminations and changes in the scope of contracts. Disaggregation of Revenues The components of disaggregation of revenue for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Software licenses Point in time $ 11,354 $ 10,191 $ 18,675 $ 15,993 Over time 260 296 528 568 Services Over time 6,691 5,263 13,602 11,153 Total revenue $ 18,305 $ 15,750 $ 32,805 $ 27,714 In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: (in thousands) Three Months Ended February 29, 2024 February 28, 2023 $ % of total $ % of total Americas $ 12,461 68 % $ 10,589 67 % EMEA 4,665 25 % 3,618 23 % Asia Pacific 1,179 7 % 1,543 10 % Total $ 18,305 100 % $ 15,750 100 % Six Months Ended (in thousands) February 29, 2024 February 28, 2023 $ % of total $ % of total Americas $ 23,352 71 % $ 19,089 69 % EMEA 6,967 21 % 5,748 21 % Asia Pacific 2,486 8 % 2,877 10 % Total $ 32,805 100 % $ 27,714 100 % Contract Balances We receive payments from customers based upon contractual billing schedules, while we recognize revenue when, or as, we satisfy our performance obligations. This timing difference results in accounts receivable, contract assets, and contract liabilities. We record accounts receivable when the right to consideration becomes unconditional. We record a contract asset if the right to consideration is conditioned on something other than the passage of time, such as our future performance. Contract assets are included in prepaid expenses and other current assets on our condensed consolidated balance sheets. We record a contract liability when we have an obligation to transfer goods or services to a customer for which we have either received consideration or a payment is due from a customer. We refer to contract liabilities as deferred revenue on our condensed consolidated balance sheets. Contract asset balances as of February 29, 2024, and August 31, 2023, were $2.6 million and $2.7 million, respectively. During the three and six months ended February 29, 2024, the Company recognized $0.4 million and $2.5 million, respectively, of revenue that was included in contract liabilities as of August 31, 2023, and during the three and six months ended February 28, 2023, the Company recognized $0.4 million and $2.3 million, respectively, of revenue that was included in contract liabilities as of August 31, 2022. Deferred Commissions Sales commissions earned by our sales force and our commissioned sales representatives are considered incremental and recoverable costs of obtaining a contract with a customer. We apply the practical expedient as described in ASC 340-40-25-4 to expense costs as incurred for sales commissions, since the amortization period of the asset that we otherwise would have recognized is one year or less. This expense is included in the condensed consolidated statements of operations and comprehensive income as sales and marketing expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statements of cash flows, we consider all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. |
Accounts Receivable and Allowance for Credit Losses | Accounts Receivable and Allowance for Credit Losses The Company extends credit to its customers in the normal course of business. The Company evaluates its allowance for credit losses based on its estimate of the collectability of its trade accounts receivable. As part of this assessment, the Company considers various factors including the financial condition of the individual companies with which it does business, the aging of receivable balances, historical experience, changes in customer payment terms, current market conditions, and reasonable and supportable forecasts of future economic conditions. In times of economic turmoil, the Company’s estimates and judgments with respect to the collectability of its receivables is subject to greater uncertainty than in more stable periods. Accounts receivable balances will be charged off against the allowance for credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. The activity in the allowance for credit losses related to our trade receivables is summarized as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Balance, beginning of period $ 37 $ 12 $ 46 $ 12 Provision for credit losses (7) — (16) — Balance, end of period $ 30 $ 12 $ 30 $ 12 |
Investments | Investments The Company may invest excess cash balances in short-term and long-term marketable debt securities. Investments may consist of certificates of deposit, money market accounts, government-sponsored enterprise securities, corporate bonds, and/or commercial paper within the parameters of our Investment Policy and Guidelines. The Company accounts for its investments in marketable securities in accordance with ASC 320, Investments – Debt and Equity Securities. This statement requires debt securities to be classified into three categories: Held-to-maturity—Debt securities that the entity has the positive intent and ability to hold to maturity are measured at amortized cost and are presented at the net amount expected to be collected. Any change in the allowance for credit losses during the period is reflected in earnings. Discounts and premiums to par value of the debt securities are amortized to interest income/expense over the term of the security. Trading Securities—Debt securities that are bought and held primarily for the purpose of selling in the near term are reported at fair value, with unrealized gains and losses included in earnings. Available-for-Sale—Debt securities not classified as either securities held-to-maturity or trading securities are reported at fair value. For available-for-sale debt securities in an unrealized-loss position, we evaluate as of the balance sheet date whether the unrealized losses are attributable to a credit loss or other factors. The portion of unrealized losses related to a credit loss is recognized in earnings, and the portion of unrealized loss not related to a credit loss is recognized in other comprehensive income (loss). We classify our investments in marketable debt securities based on the facts and circumstances present at the time of purchase of the securities. We subsequently reassess the appropriateness of that classification at each reporting date. During the three and six months ended February 29, 2024, and for the year ended August 31, 2023, all of our investments were classified as held-to-maturity. |
Capitalized Computer Software Development Costs | Capitalized Computer Software Development Costs Software development costs are capitalized in accordance with ASC 985-20. 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 revenue, estimated economic life, and changes in software and hardware technologies. Capitalized software development costs are comprised primarily of salaries and direct payroll-related costs and the purchase of existing software to be used in our software products. Amortization of capitalized software development costs is calculated 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 $0.4 million and $0.4 million, for the three months ended February 29, 2024, and February 28, 2023, respectively, and $0.8 million and $0.8 million for the six months ended February 29, 2024, and February 28, 2023, respectively. We expect future amortization expense to vary due to increases in capitalized computer software development costs. The Company assesses capitalized computer software development costs for impairment 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, or fair market value for property and equipment acquired in business combinations, less accumulated depreciation and amortization. Depreciation and amortization are calculated 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 the asset life or lease term Maintenance and minor replacements are charged to expense as incurred. Gains and losses on disposals are included in the results of operations. |
Internal-use Software | Internal-use Software We have capitalized certain internal-use software costs in accordance with ASC 350-40, which are included in intangible assets. The amortization of such costs is classified as general and administrative expenses on the condensed consolidated statements of operations. Maintenance of and minor upgrades to internal-use software are also classified as general and administrative expenses as incurred. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities (current and long-term) in our condensed consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at the commencement date. The operating lease ROU asset also includes any lease payments made at or before the commencement date and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. |
Intangible Assets and Goodwill | Intangible Assets and Goodwill We perform valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and recognize the assets acquired and liabilities assumed at their acquisition-date fair value. Acquired intangible assets include customer relationships, software, trade names, and noncompete agreements. We determine the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. Finite-lived intangible assets are amortized over their estimated useful lives using the straight-line method, which approximates the pattern in which the majority of the economic benefits are expected to be consumed. Finite-lived intangible assets subject to amortization are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be recoverable. Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill and indefinite-lived intangible assets are tested for impairment annually or when events or circumstances change that would indicate that they might be impaired. Events or circumstances that could trigger an impairment review include, but are not limited to, a significant adverse change in legal factors or in the business climate, an adverse action or assessment by a regulator, unanticipated competition, a loss of key personnel, significant changes in the manner of our use of the acquired assets or the strategy for our overall business, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. Goodwill and the other assets and liabilities acquired as part of the Immunetrics acquisition have been assigned to our QSP reporting unit. Goodwill and intangible assets are tested for impairment at the reporting unit level, which is either one level below or the same level as an operating segment. |
Other Intangible Assets | The following table summarizes other intangible assets as of February 29, 2024: (in thousands) Amortization Acquisition Accumulated Net Book Value Trade names None $ 4,210 $ — $ 4,210 Covenants not to compete Straight line 2 to 3 years 30 11 19 Other internal use software Straight line 3 to 5 years 542 23 519 Customer relationships Straight line 8 to 14 years 8,230 2,283 5,947 ERP Straight line 15 years 2,529 289 2,240 $ 15,541 $ 2,606 $ 12,935 The following table summarizes other intangible assets as of August 31, 2023: (in thousands) Amortization Acquisition Accumulated Net Book Value Trade names None $ 4,210 $ — $ 4,210 Covenants not to compete Straight line 3 years 30 3 27 Other internal use software Straight line 3 to 5 years 350 10 340 Customer relationships Straight line 8 to 14 years 8,230 1,887 6,343 ERP Straight line 15 years 2,112 207 1,905 $ 14,932 $ 2,107 $ 12,825 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories are as follows: Level Input: Input Definition: Level I Inputs that 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. For certain of our financial instruments, including accounts receivable, accounts payable, and accrued compensation and other accrued expenses, the carrying amounts are representative of their fair values due to their short maturities. We invest a portion of our excess cash balances in short-term debt securities and long-term debt securities. Short-term debt securities investments as of February 29, 2024 and August 31, 2023, consisted of corporate bonds and term deposits with maturities remaining of less than 12 months. Long-term debt securities investments consisted of investment grade corporate debt. In addition, under the fair-value hierarchy, the fair market values of the Company’s cash equivalents and investments are Level I. We may also invest excess cash balances in certificates of deposit, money market accounts, government-sponsored enterprise securities, and/or commercial paper. We account for our investments in accordance with ASC 320, Investments – Debt and Equity Securities. As of February 29, 2024, all investments were classified as held-to-maturity securities, as we have the positive intent and ability to hold these securities until maturity. We believe unrealized losses on investments were primarily caused by rising interest rates rather than changes in credit quality, and, accordingly, we have not recorded an allowance for credit losses on our debt securities as of February 29, 2024 and August 31, 2023. The following tables summarize our short-term investments as of February 29, 2024, and August 31, 2023: February 29, 2024 (in thousands) Amortized cost Unrealized gains Unrealized losses Fair value Short-term investments: Commercial notes (due within one year) $ 67,473 $ — $ (177) $ 67,296 Term deposits (due within one year) 4,000 — — 4,000 Total short-term investments $ 71,473 $ — $ (177) $ 71,296 Long-term investments: Commercial notes (due within 15 months) $ 9,024 $ 91 $ — $ 9,115 Total investments $ 80,497 $ 91 $ (177) $ 80,411 August 31, 2023 (in thousands) Amortized cost Unrealized gains Unrealized losses Fair value Short-term investments: Commercial notes (due within one year) $ 53,940 $ — $ (115) $ 53,825 Term deposits (due within one year) 4,000 — — 4,000 Total short-term investments $ 57,940 $ — $ (115) $ 57,825 As of February 29, 2024 and August 31, 2023 , the Company had a liability for contingent consideration related to its acquisition of Immunetrics. The fair value measurement of the contingent consideration obligations is determined using Level 3 inputs. The fair value of contingent consideration obligations is based on a discounted cash flow model using a probability-weighted income approach. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in markets. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense the Company records in any given period. Changes in the fair value of the contingent consideration obligations are recorded in the Company’s Condensed Consolidated Statement of Operations. The following is a reconciliation of contingent consideration at fair value: (in thousands) Amount Contingent consideration at August 31, 2023 $ 4,780 Change in fair value of contingent consideration 330 Contingent consideration at February 29, 2024 $ 5,110 |
Business Combination | Business Combination The acquisition method of accounting for business combinations requires us to use significant estimates and assumptions, including fair value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for a business combination). Under the acquisition method of accounting, we recognize separately from goodwill the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree, generally at the acquisition-date fair value. We measure goodwill as of the acquisition-date as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed. Costs that we incur to complete the business combination, such as investment banking, legal, and other professional fees, are not considered part of consideration, and we recognize such costs as general and administrative expenses as they are incurred. Under the acquisition method, we also account for acquired-company restructuring activities that we initiate separately from the business combination. Should the initial accounting for a business combination be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date, and we record those adjustments to our financial statements. We apply those measurement-period adjustments that we determine to be material retrospectively to comparative information in our financial statements, including adjustments to depreciation and amortization expense. Under the acquisition method of accounting for business combinations, if we identify changes to acquired deferred-tax asset valuation allowances or liabilities related to uncertain tax positions during the measurement period, and they relate to new information obtained about facts and circumstances that existed as of the acquisition date, those changes are considered a measurement period adjustment and we record the offset to goodwill. We record all other changes to deferred-tax asset valuation allowances and liabilities related to uncertain tax positions in current-period income tax expense. This accounting applies to all of our acquisitions regardless of acquisition date. |
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 experiments, and purchased software that was developed by other companies and incorporated into, or used in the development of, our final products. |
Income Taxes | Income Taxes We account for income taxes in accordance with ASC 740, 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. |
Intellectual property | Intellectual property |
Earnings per Share | Earnings per Share |
Stock-Based Compensation | Stock-Based Compensation |
Impairment of Long-lived Assets | Impairment of Long-lived Assets |
Recently Issued Accounting Standards and Recently Adopted Accounting Standards | Recently Issued Accounting Standards In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-06 - Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). ASU 2023-06 incorporates 14 of the 27 disclosure requirements published in SEC Release No. 33-10532 - Disclosure Update and Simplification into various topics within the Accounting Standards Codification ("ASC"). ASU 2023-06's amendments represent clarifications to, or technical corrections of, current requirements. For SEC registrants, the effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. Early adoption is prohibited. The Company does not expect ASU 2023-06 to have a material effect on its condensed consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the ASU to determine its impact on the Company’s disclosures. Recently Adopted Accounting Standards In October 2021, the FASB issued ASU 2021-08, Business Combinations - Accounting for contract assets and contract liabilities from contracts with customers (Topic 805), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with Revenues from Contracts with Customers (Topic 606). For public companies, the guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company adopted the guidance during fiscal year 2023. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), which requires business entities to disclose information about transactions with a government that are accounted for by applying a grant or contribution model by analogy (for example, IFRS guidance in IAS 20 or guidance on contributions for not-for-profit entities in ASC 958-605). For transactions within scope, the new standard requires the disclosure of information about the nature of the transaction, including significant terms and conditions, as well as the amounts and specific financial-statement line items affected by the transaction. The new guidance is effective for annual reporting periods beginning after December 15, 2021. The Company adopted the guidance during fiscal year 2023. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The components of disaggregation of revenue for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Software licenses Point in time $ 11,354 $ 10,191 $ 18,675 $ 15,993 Over time 260 296 528 568 Services Over time 6,691 5,263 13,602 11,153 Total revenue $ 18,305 $ 15,750 $ 32,805 $ 27,714 |
Schedule of Geographical Revenues | Geographical revenues for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: (in thousands) Three Months Ended February 29, 2024 February 28, 2023 $ % of total $ % of total Americas $ 12,461 68 % $ 10,589 67 % EMEA 4,665 25 % 3,618 23 % Asia Pacific 1,179 7 % 1,543 10 % Total $ 18,305 100 % $ 15,750 100 % Six Months Ended (in thousands) February 29, 2024 February 28, 2023 $ % of total $ % of total Americas $ 23,352 71 % $ 19,089 69 % EMEA 6,967 21 % 5,748 21 % Asia Pacific 2,486 8 % 2,877 10 % Total $ 32,805 100 % $ 27,714 100 % |
Accounts Receivable, Allowance for Credit Loss | The activity in the allowance for credit losses related to our trade receivables is summarized as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Balance, beginning of period $ 37 $ 12 $ 46 $ 12 Provision for credit losses (7) — (16) — Balance, end of period $ 30 $ 12 $ 30 $ 12 |
Property and Equipment estimated useful lives | Depreciation and amortization are calculated 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 the asset life or lease term |
Lease, Cost | Supplemental balance sheet information related to operating leases was as follows as of February 29, 2024: (in thousands) Right of use assets $ 1,062 Lease liabilities, current $ 425 Lease liabilities, long-term $ 607 Operating lease costs $ 239 Weighted-average remaining lease term 2.91 years Weighted-average discount rate 5.31 % |
Schedule of Finite-Lived Intangible Assets | The following table summarizes other intangible assets as of February 29, 2024: (in thousands) Amortization Acquisition Accumulated Net Book Value Trade names None $ 4,210 $ — $ 4,210 Covenants not to compete Straight line 2 to 3 years 30 11 19 Other internal use software Straight line 3 to 5 years 542 23 519 Customer relationships Straight line 8 to 14 years 8,230 2,283 5,947 ERP Straight line 15 years 2,529 289 2,240 $ 15,541 $ 2,606 $ 12,935 The following table summarizes other intangible assets as of August 31, 2023: (in thousands) Amortization Acquisition Accumulated Net Book Value Trade names None $ 4,210 $ — $ 4,210 Covenants not to compete Straight line 3 years 30 3 27 Other internal use software Straight line 3 to 5 years 350 10 340 Customer relationships Straight line 8 to 14 years 8,230 1,887 6,343 ERP Straight line 15 years 2,112 207 1,905 $ 14,932 $ 2,107 $ 12,825 |
Finite-lived Intangible Assets Amortization Expense | Estimated future amortization of finite-lived intangible assets for the next five fiscal years are as follows: (in thousands) Years Ending August 31, Amount Remainder of 2024 $ 494 2025 $ 957 2026 $ 945 2027 $ 898 2028 $ 755 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | The following tables summarize our short-term investments as of February 29, 2024, and August 31, 2023: February 29, 2024 (in thousands) Amortized cost Unrealized gains Unrealized losses Fair value Short-term investments: Commercial notes (due within one year) $ 67,473 $ — $ (177) $ 67,296 Term deposits (due within one year) 4,000 — — 4,000 Total short-term investments $ 71,473 $ — $ (177) $ 71,296 Long-term investments: Commercial notes (due within 15 months) $ 9,024 $ 91 $ — $ 9,115 Total investments $ 80,497 $ 91 $ (177) $ 80,411 August 31, 2023 (in thousands) Amortized cost Unrealized gains Unrealized losses Fair value Short-term investments: Commercial notes (due within one year) $ 53,940 $ — $ (115) $ 53,825 Term deposits (due within one year) 4,000 — — 4,000 Total short-term investments $ 57,940 $ — $ (115) $ 57,825 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following is a reconciliation of contingent consideration at fair value: (in thousands) Amount Contingent consideration at August 31, 2023 $ 4,780 Change in fair value of contingent consideration 330 Contingent consideration at February 29, 2024 $ 5,110 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes intellectual property as of February 29, 2024: (in thousands) Amortization Acquisition Accumulated Net Book Termination/nonassertion agreement-TSRL Inc. Straight line 10 years $ 6,000 $ 5,875 $ 125 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 2,136 714 Intellectual rights of Entelos Holding Company Straight line 10 years 50 27 23 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 1,926 6,084 Developed technologies–Immunetrics acquisition Straight line 5 years 1,080 153 927 $ 17,990 $ 10,117 $ 7,873 The following table summarizes intellectual property as of August 31, 2023: (in thousands) Amortization Acquisition Accumulated Net Book Termination/nonassertion agreement-TSRL Inc. Straight line 10 years $ 6,000 $ 5,575 $ 425 Developed technologies–DILIsym acquisition Straight line 9 years 2,850 1,978 872 Intellectual rights of Entelos Holding Company Straight line 10 years 50 25 25 Developed technologies–Lixoft acquisition Straight line 16 years 8,010 1,678 6,332 Developed technologies–Immunetrics acquisition Straight line 5 years 1,080 45 1,035 $ 17,990 $ 9,301 $ 8,689 |
Schedule of Future Amortization Expenses | Estimated future amortization of intellectual property for the next five fiscal years is as follows: (in thousands) Years Ending August 31, Amount Remainder of 2024 $ 618 2025 $ 1,009 2026 $ 933 2027 $ 693 2028 $ 648 |
Schedule of Earnings Per Share, Basic and Diluted | The components of basic and diluted earnings per share for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Numerator Net income attributable to common shareholders $ 4,029 $ 4,174 $ 5,974 $ 5,419 Denominator Weighted-average number of common shares outstanding during the period 19,975 20,112 19,961 20,200 Dilutive effect of stock options 340 417 327 457 Common stock and common stock equivalents used for diluted earnings per share 20,315 20,529 20,288 20,657 |
Schedule of Goodwill | Reconciliation of Goodwill for the six months ended February 29, 2024: (in thousands) CPP QSP Total Balance, August 31, 2023 $ 7,323 $ 11,776 $ 19,099 Addition — — — Impairments — — — Balance, February 29, 2024 $ 7,323 $ 11,776 $ 19,099 |
OTHER INCOME (Tables)
OTHER INCOME (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The components of other income for the three and six months ended February 29, 2024, and February 28, 2023, were as follows: Three Months Ended Six Months Ended (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Interest income $ 1,348 $ 985 $ 2,640 $ 1,756 Change in fair valuation of contingent consideration (440) — (330) — (Loss) gain on currency exchange (98) 49 (54) 18 Total other income $ 810 $ 1,034 $ 2,256 $ 1,774 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | Lease liability maturities as of February 29, 2024, were as follows: (in thousands) Years Ending August 31, Amount Remainder of 2024 $ 237 2025 411 2026 313 2027 145 2028 68 Total undiscounted liabilities 1,174 Less: imputed interest (142) Total operating lease liabilities (including current portion) $ 1,032 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Equity [Abstract] | |
Schedule of Shares Outstanding | Shares Outstanding Shares of Company's common stock outstanding for the three and six months ended February 29, 2024 and February 28, 2023 were as follows: Three Months Ended February 29, Six Months Ended February 29, (in thousands) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Common stock outstanding, beginning of period 19,966 20,314 19,938 20,260 Common stock repurchased during the period — (409) — (409) Common stock issued during the period 18 26 46 79 Common stock outstanding, end of period 19,984 19,931 19,984 19,931 |
Schedule of Dividends Payable | The Company’s Board of Directors declared cash dividends during the six months ended February 29, 2024 and fiscal year 2023. The details of dividends paid are in the following tables: (in thousands, except dividend per share) Six Months Ended February 29, 2024 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/30/2023 11/06/2023 19,939 $ 0.06 $ 1,196 1/29/2024 2/05/2024 19,973 $ 0.06 1,198 Total $ 2,394 (in thousands, except dividend per share) Fiscal Year 2023 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/31/2022 11/07/2022 20,299 $ 0.06 $ 1,218 1/30/2023 2/06/2023 19,924 $ 0.06 1,195 4/24/2023 5/01/2023 19,999 $ 0.06 1,200 7/31/2023 8/07/2023 19,931 $ 0.06 1,196 Total $ 4,809 |
Share-based Payment Arrangement, Option, Activity | The following table summarizes information about stock options: (in thousands, except per share and weighted-average amounts) Activity for the six months ended February 29, 2024 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2023 1,478 $ 34.62 6.62 years Granted 515 40.34 Exercised (49) 14.47 Canceled/Forfeited (11) 45.38 Outstanding, February 29, 2024 1,933 $ 36.58 7.13 years Vested and Exercisable, February 29, 2024 861 $ 29.14 4.95 years Vested and Expected to Vest, February 29, 2024 1,852 $ 36.40 7.02 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | The following table summarizes the fair value of the options, including both ISOs and NQSOs, granted during the six-month period ended February 29, 2024 and fiscal year 2023: (in thousands, except weighted-average amounts) Six Months Ended February 29, 2024 Fiscal Year 2023 Estimated fair value of awards granted $ 10,256 $ 10,067 Unvested Forfeiture Rate 6.38 % 0.22 % Weighted-average grant price $ 40.34 $ 43.78 Weighted-average market price $ 40.34 $ 43.78 Weighted-average volatility 44.70 % 46.14 % Weighted-average risk-free rate 4.86 % 4.29 % Weighted-average dividend yield 0.60 % 0.55 % Weighted-average expected life 6.59 years 6.55 years |
Share-based Payment Arrangement, Option, Exercise Price Range | The exercise prices for the options outstanding at February 29, 2024, ranged from $6.85 to $66.14, and the information relating to these options are as follows: (in thousands except prices and weighted-average amounts) Exercise Price Awards Outstanding Awards Exercisable Low High Quantity Weighted -Average Weighted-Average Quantity Weighted-Average Weighted-Average $ 6.85 $ 9.77 180 1.56 years $ 8.88 180 1.56 years $ 8.88 $ 9.78 $ 18.76 146 2.99 years $ 10.08 146 2.99 years $ 10.08 $ 18.77 $ 33.40 182 5.16 years $ 25.72 163 5.09 years $ 25.01 $ 33.41 $ 47.63 1,154 8.84 years $ 41.34 213 7.66 years $ 40.92 $ 47.64 $ 66.14 271 7.07 years $ 56.32 159 6.80 years $ 57.87 1,933 7.13 years $ 36.58 861 4.95 years $ 29.14 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Feb. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize the results for each segment for the three months ended February 29, 2024, and February 28, 2023: (in thousands) Three Months Ended February 29, 2024 Software Services Total Revenues $ 11,614 $ 6,691 $ 18,305 Cost of revenues 1,348 3,736 5,084 Gross profit $ 10,266 $ 2,955 $ 13,221 Gross margin 88 % 44 % 72 % Our software business and services business represented 63% and 37% of total revenue, respectively, for the three months ended February 29, 2024. (in thousands) Three Months Ended February 28, 2023 Software Services Total Revenues $ 10,487 $ 5,263 $ 15,750 Cost of revenues 843 1,777 2,620 Gross profit $ 9,644 $ 3,486 $ 13,130 Gross margin 92 % 66 % 83 % Our software business and services business represented 67% and 33% of total revenue, respectively, for the three months ended February 28, 2023. The following tables summarize the results for each segment for the six months ended February 29, 2024 and February 28, 2023: (in thousands) Six Months Ended February 29, 2024 Software Services Total Revenues $ 19,203 $ 13,602 $ 32,805 Cost of revenues 2,339 7,397 9,736 Gross profit $ 16,864 $ 6,205 $ 23,069 Gross margin 88 % 46 % 70 % Our software business and services business represented 59% and 41% of total revenue, respectively, for the six months ended February 29, 2024. (in thousands) Six Months Ended February 28, 2023 Software Services Total Revenues $ 16,561 $ 11,153 $ 27,714 Cost of revenues 1,728 3,563 5,291 Gross profit $ 14,833 $ 7,590 $ 22,423 Gross margin 90 % 68 % 81 % Our software business and services business represented 60% and 40% of total revenue, respectively, for the six months ended February 28, 2023. |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - (Details - Revenue recognition) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | Aug. 31, 2023 | |
Accounting Policies [Abstract] | |||||
Remaining performance obligations | $ 10.8 | $ 10.8 | |||
Remaining performance obligations, percentage | 94% | 94% | |||
Contract with customer, asset, after allowance for credit loss | $ 2.6 | $ 2.6 | $ 2.7 | ||
Contract with customer, liability, revenue recognized | $ 0.4 | $ 0.4 | $ 2.5 | $ 2.3 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details Disaggregation of Revenue) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Total revenues | $ 18,305 | $ 15,750 | $ 32,805 | $ 27,714 |
Software licenses | Point in time | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total revenues | 11,354 | 10,191 | 18,675 | 15,993 |
Software licenses | Over time | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total revenues | 260 | 296 | 528 | 568 |
Services | Over time | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total revenues | $ 6,691 | $ 5,263 | $ 13,602 | $ 11,153 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details - Schedule of Geographical Revenues) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Total revenues | $ 18,305 | $ 15,750 | $ 32,805 | $ 27,714 |
Revenue Benchmark | Product Concentration Risk | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Concentration risk, percentage | 100% | 100% | 100% | 100% |
Americas | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total revenues | $ 12,461 | $ 10,589 | $ 23,352 | $ 19,089 |
Americas | Revenue Benchmark | Product Concentration Risk | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Concentration risk, percentage | 68% | 67% | 71% | 69% |
EMEA | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total revenues | $ 4,665 | $ 3,618 | $ 6,967 | $ 5,748 |
EMEA | Revenue Benchmark | Product Concentration Risk | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Concentration risk, percentage | 25% | 23% | 21% | 21% |
Asia Pacific | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Total revenues | $ 1,179 | $ 1,543 | $ 2,486 | $ 2,877 |
Asia Pacific | Revenue Benchmark | Product Concentration Risk | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Concentration risk, percentage | 7% | 10% | 8% | 10% |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Details - Allowance For Credit Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 37 | $ 12 | $ 46 | $ 12 |
Provision for credit losses | (7) | 0 | (16) | 0 |
Balance, end of period | $ 30 | $ 12 | $ 30 | $ 12 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 USD ($) | Feb. 28, 2023 USD ($) | Feb. 29, 2024 USD ($) segment | Feb. 28, 2023 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | ||||
Capitalized computer software, amortization, maximum period | 5 years | |||
Capitalized computer software, amortization | $ 400,000 | $ 400,000 | $ 800,000 | $ 800,000 |
Goodwill | $ 0 | |||
Number of reportable segments | segment | 2 | |||
Stock-based compensation | 1,600,000 | 1,200,000 | $ 2,900,000 | 2,000,000 |
Impairment of long-lived assets | 0 | 0 | ||
Other Intangible Assets | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 300,000 | 100,000 | 500,000 | 300,000 |
Intellectual Properties | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 400,000 | $ 400,000 | $ 800,000 | $ 700,000 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Details - Useful lives) | Feb. 29, 2024 |
Equipment | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Computer equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 7 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES (Details - Lease cost) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 29, 2024 | Aug. 31, 2023 | |
Accounting Policies [Abstract] | ||
Right of use assets | $ 1,062 | $ 1,247 |
Lease liabilities, current | 425 | 442 |
Lease liabilities, long-term | 607 | $ 755 |
Operating lease costs | $ 239 | |
Weighted-average remaining lease term | 2 years 10 months 28 days | |
Weighted-average discount rate | 5.31% |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES (Details - Goodwill) $ in Thousands | 6 Months Ended |
Feb. 29, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 19,099 |
Goodwill | 0 |
Impairments | 0 |
Goodwill, ending balance | 19,099 |
CPP | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 7,323 |
Goodwill | 0 |
Impairments | 0 |
Goodwill, ending balance | 7,323 |
QSP | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 11,776 |
Goodwill | 0 |
Impairments | 0 |
Goodwill, ending balance | $ 11,776 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES (Details - Other Intangible Assets) - USD ($) $ in Thousands | Feb. 29, 2024 | Aug. 31, 2023 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Infinite lived intangible assets, acquisition value | $ 4,210 | $ 4,210 |
Accumulated Amortization | 0 | 0 |
Indefinite-lived intangible assets, net book value | 4,210 | $ 4,210 |
Covenants not to compete | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | |
Acquisition Value | 30 | $ 30 |
Accumulated Amortization | 11 | 3 |
Net Book Value | $ 19 | 27 |
Covenants not to compete | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 2 years | |
Covenants not to compete | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | |
Other internal use software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Value | $ 542 | 350 |
Accumulated Amortization | 23 | 10 |
Net Book Value | $ 519 | $ 340 |
Other internal use software | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | 3 years |
Other internal use software | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | 5 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Value | $ 8,230 | $ 8,230 |
Accumulated Amortization | 2,283 | 1,887 |
Net Book Value | $ 5,947 | $ 6,343 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 8 years | 8 years |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 14 years | 14 years |
ERP | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 15 years | 15 years |
Acquisition Value | $ 2,529 | $ 2,112 |
Accumulated Amortization | 289 | 207 |
Net Book Value | 2,240 | 1,905 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition Value | 15,541 | 14,932 |
Accumulated Amortization | 2,606 | 2,107 |
Net Book Value | $ 12,935 | $ 12,825 |
SIGNIFICANT ACCOUNTING POLIC_13
SIGNIFICANT ACCOUNTING POLICIES (Details - Amortization expenses) $ in Thousands | Feb. 29, 2024 USD ($) |
Finite-Lived Intangible Assets, Other | |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2024 | $ 494 |
2025 | 957 |
2026 | 945 |
2027 | 898 |
2028 | 755 |
Intellectual property | |
Finite-Lived Intangible Assets [Line Items] | |
Remainder of 2024 | 618 |
2025 | 1,009 |
2026 | 933 |
2027 | 693 |
2028 | $ 648 |
SIGNIFICANT ACCOUNTING POLIC_14
SIGNIFICANT ACCOUNTING POLICIES (Details - Fair value measurements) - USD ($) | Feb. 29, 2024 | Aug. 31, 2023 |
Short-term investments: | ||
Amortized cost | $ 71,473,000 | $ 57,940,000 |
Unrealized gains | 91,000 | 0 |
Unrealized losses | (177,000) | (115,000) |
Fair value | 71,296,000 | 57,825,000 |
Long-term investments: | ||
Total investments | 80,497,000 | |
Fair value | 80,411,000 | |
Commercial Notes | ||
Short-term investments: | ||
Amortized cost | 67,473,000 | 53,940,000 |
Unrealized gains | 0 | |
Unrealized losses | (177,000) | (115,000) |
Fair value | 67,296,000 | 53,825,000 |
Long-term investments: | ||
Amortized cost | 9,024,000 | |
Fair value | 9,115,000 | |
Time Deposits | ||
Short-term investments: | ||
Amortized cost | 4,000,000 | 4,000,000 |
Fair value | $ 4,000,000 | $ 4,000,000 |
SIGNIFICANT ACCOUNTING POLIC_15
SIGNIFICANT ACCOUNTING POLICIES (Details - Reconciliation Of Contingent Consideration) $ in Thousands | 6 Months Ended |
Feb. 29, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Contingent consideration beginning balance | $ 4,780 |
Change in fair value of contingent consideration | 330 |
Contingent consideration ending balance | $ 5,110 |
SIGNIFICANT ACCOUNTING POLIC_16
SIGNIFICANT ACCOUNTING POLICIES (Details - Intellectual property) - USD ($) $ in Thousands | Feb. 29, 2024 | Aug. 31, 2023 | Jun. 30, 2023 | Apr. 30, 2020 | Sep. 30, 2018 | Jun. 30, 2017 | May 31, 2014 |
Term And Nonassertion Agr | T S R L | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 10 years | ||||||
Acquisition Value | $ 6,000 | ||||||
Certain Developed Technologies | QSP | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 9 years | ||||||
Acquisition Value | $ 2,900 | ||||||
Certain Developed Technologies | Lixoft | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 16 years | ||||||
Acquisition Value | $ 8,000 | ||||||
Certain Developed Technologies | Immunetrics | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquisition Value | $ 1,100 | ||||||
Certain intellectual Property Rights | Entelos Holding Co | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 10 years | ||||||
Acquisition Value | $ 100 | ||||||
Intellectual property | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Acquisition Value | $ 17,990 | $ 17,990 | |||||
Accumulated Amortization | 10,117 | 9,301 | |||||
Net Book Value | $ 7,873 | $ 8,689 | |||||
Intellectual property | T S R L | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 10 years | 10 years | |||||
Acquisition Value | $ 6,000 | $ 6,000 | |||||
Accumulated Amortization | 5,875 | 5,575 | |||||
Net Book Value | $ 125 | $ 425 | |||||
Intellectual property | Lixoft | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 5 years | 16 years | |||||
Acquisition Value | $ 1,080 | $ 8,010 | |||||
Accumulated Amortization | 153 | 1,678 | |||||
Net Book Value | $ 927 | $ 6,332 | |||||
Intellectual property | D I L I | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 9 years | 9 years | |||||
Acquisition Value | $ 2,850 | $ 2,850 | |||||
Accumulated Amortization | 2,136 | 1,978 | |||||
Net Book Value | $ 714 | $ 872 | |||||
Intellectual property | Entelos | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 10 years | 10 years | |||||
Acquisition Value | $ 50 | $ 50 | |||||
Accumulated Amortization | 27 | 25 | |||||
Net Book Value | $ 23 | $ 25 | |||||
Intellectual property | Immunetrics | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization Period | 16 years | 5 years | 5 years | ||||
Acquisition Value | $ 8,010 | $ 1,080 | |||||
Accumulated Amortization | 1,926 | 45 | |||||
Net Book Value | $ 6,084 | $ 1,035 |
SIGNIFICANT ACCOUNTING POLIC_17
SIGNIFICANT ACCOUNTING POLICIES (Details - Earnings per share) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jan. 29, 2024 | Oct. 30, 2023 | Jul. 31, 2023 | Apr. 24, 2023 | Jan. 30, 2023 | Oct. 31, 2022 | Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Numerator | ||||||||||
Net income attributable to common shareholders | $ 4,029 | $ 4,174 | $ 5,974 | $ 5,419 | ||||||
Denominator | ||||||||||
Weighted-average number of common shares outstanding during the year (in shares) | 19,973 | 19,939 | 19,931 | 19,999 | 19,924 | 20,299 | 19,975 | 20,112 | 19,961 | 20,200 |
Dilutive effect of stock options (in shares) | 340 | 417 | 327 | 457 | ||||||
Common stock and common stock equivalents used for diluted earnings per share (in shares) | 20,315 | 20,529 | 20,288 | 20,657 |
OTHER INCOME (Details)
OTHER INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 1,348 | $ 985 | $ 2,640 | $ 1,756 |
Change in fair valuation of contingent consideration | (440) | 0 | (330) | 0 |
(Loss) gain on currency exchange | (98) | 49 | (54) | 18 |
Other income | $ 810 | $ 1,034 | $ 2,256 | $ 1,774 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 USD ($) ft² renewalOption | Feb. 28, 2023 USD ($) | Feb. 29, 2024 USD ($) ft² renewalOption | Feb. 28, 2023 USD ($) | |
Line of Credit Facility [Line Items] | ||||
Operating lease, expense | $ 100 | $ 100 | $ 300 | $ 300 |
Lancaster, California | ||||
Line of Credit Facility [Line Items] | ||||
Annual rent increase | 0.03 | 0.03 | ||
Operating lease, opt out required notice period | 180 days | 180 days | ||
Operating lease, opt out period | 3 years | |||
Lancaster, California | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 4,200 | 4,200 | ||
Operating lease, expense | $ 8 | |||
Durham, North Carolina | ||||
Line of Credit Facility [Line Items] | ||||
Annual rent increase | 0.03 | 0.03 | ||
Lessee, operating lease, renewal term, notice | 60 months | 60 months | ||
Operating lease, opt out required notice period | 9 months | 9 months | ||
Durham, North Carolina | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 1,510 | 1,510 | ||
Operating lease, expense | $ 4 | |||
Buffalo, New York | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 4,317 | 4,317 | ||
Operating lease, expense | $ 7 | |||
Annual rent increase | 0.02 | 0.02 | ||
Lessee, operating lease, renewal term | 5 years | 5 years | ||
Operating lease, opt out period | 1 year | |||
Lessee, operating lease, renewal option | renewalOption | 2 | 2 | ||
Buffalo, New York | Data Center | ||||
Line of Credit Facility [Line Items] | ||||
Operating lease, expense | $ 6 | |||
Annual rent increase | 0.03 | 0.03 | ||
Paris, France | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 2,300 | 2,300 | ||
Operating lease, expense | $ 5 | |||
PENNSYLVANIA | ||||
Line of Credit Facility [Line Items] | ||||
Area of land | ft² | 7,141 | 7,141 | ||
Operating lease, expense | $ 10 | |||
Lessee, operating lease, renewal term | 5 years | 5 years | ||
Lessee, operating lease, renewal option | renewalOption | 1 | 1 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Schedule of Operating Lease Liability Maturity Payments for Operating Leases (Details) $ in Thousands | Feb. 29, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2024 | $ 237 |
2025 | 411 |
2026 | 313 |
2027 | 145 |
2028 | 68 |
Total undiscounted liabilities | 1,174 |
Less: imputed interest | (142) |
Total operating lease liabilities (including current portion) | $ 1,032 |
SHAREHOLDERS' EQUITY (Details -
SHAREHOLDERS' EQUITY (Details - Shares Outstanding) - shares | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stock outstanding, beginning of year (in shares) | 19,966,000 | 20,314,000 | 19,938,000 | 20,260,000 |
Common stock issued during the period (in shares) | 18,000 | 26,000 | 46,000 | 79,000 |
Common stock outstanding, end of year (in shares) | 19,984,000 | 19,931,000 | 19,984,000 | 19,931,000 |
Common stock repurchased during the period (in shares) | 0 | (409,000) | 0 | (409,000) |
SHAREHOLDERS EQUITY (Details -
SHAREHOLDERS EQUITY (Details - Dividends) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jan. 29, 2024 | Oct. 30, 2023 | Jul. 31, 2023 | Apr. 24, 2023 | Jan. 30, 2023 | Oct. 31, 2022 | Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Equity [Abstract] | ||||||||||
Record Date | Jan. 29, 2024 | Oct. 30, 2023 | Jul. 31, 2023 | Apr. 24, 2023 | Jan. 30, 2023 | Oct. 31, 2022 | ||||
Distribution Date | Feb. 05, 2024 | Nov. 06, 2023 | Aug. 07, 2023 | May 01, 2023 | Feb. 06, 2023 | Nov. 07, 2022 | ||||
Weighted average number of shares outstanding, basic (in shares) | 19,973 | 19,939 | 19,931 | 19,999 | 19,924 | 20,299 | 19,975 | 20,112 | 19,961 | 20,200 |
Dividend per share (in usd per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | ||||
Total Amount | $ 1,198 | $ 1,196 | $ 1,196 | $ 1,200 | $ 1,195 | $ 1,218 | $ 2,394 | $ 4,809 |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||||
May 20, 2023 | Jan. 11, 2023 | Dec. 29, 2022 | Feb. 29, 2024 | Feb. 29, 2024 | Feb. 08, 2024 | Oct. 19, 2023 | Aug. 31, 2023 | May 21, 2023 | Feb. 09, 2023 | Oct. 20, 2022 | Dec. 23, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, value, issued | $ 11 | $ 11 | ||||||||||
Common stock and additional paid in capital | $ 148,500 | $ 148,500 | ||||||||||
Repurchase and retirement of common shares | $ 20,000 | $ 50,000 | ||||||||||
Stock repurchase program, authorized amount | $ 20,000 | $ 30,000 | ||||||||||
Common stock repurchased during the period (in shares) | 83,356 | 408,685 | 0 | |||||||||
Non Management Directors | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares issued as compensation (in shares) | 3,960,000 | 8,215,000 | ||||||||||
Shares issued, value, as compensation | $ 200 | $ 300 | ||||||||||
Equity Option | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award outstanding, quantity (in shares) | 1,933,000 | 1,933,000 | 1,478,000 | |||||||||
Fair value of non-vested stock options | $ 21,700 | $ 21,700 | ||||||||||
Nonvested award, cost not yet recognized, period for recognition | 3 years 6 months | |||||||||||
Equity 2017 Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, capital shares reserved for future issuance (in shares) | 1,000,000 | |||||||||||
Equity 2021 Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, capital shares reserved for future issuance (in shares) | 2,500,000 | 1,550,000 | 1,550,000 | 1,300,000 |
SHAREHOLDERS EQUITY (Details _2
SHAREHOLDERS EQUITY (Details - Option activity) - $ / shares shares in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Nov. 30, 2023 | Feb. 29, 2024 | Aug. 31, 2023 | |
Weighted-Average Exercise Price Per Share | |||
Weighted-average exercise price per share, granted (in usd per share) | $ 43.78 | $ 40.34 | |
Equity Option | |||
Number of Options | |||
Outstanding, August 31, 2022 (in shares) | 1,478 | 1,478 | |
Number of options, granted (in shares) | 515 | ||
Number of options, exercised (in shares) | (49) | ||
Number of options, canceled/forfeited (in shares) | (11) | ||
Outstanding, May 31, 2023 (in shares) | 1,933 | 1,478 | |
Number of options, vested and exercisable (in shares) | 861 | ||
Number of options, vested and expected to vest (in shares) | 1,852 | ||
Weighted-Average Exercise Price Per Share | |||
Outstanding weighted average exercise price (in usd per share) | $ 34.62 | $ 34.62 | |
Weighted-average exercise price per share, granted (in usd per share) | 40.34 | ||
Weighted average exercise price per share, exercised (in usd per share) | 14.47 | ||
Weighted-average exercise price per share, canceled/forfeited (in usd per share) | 45.38 | ||
Outstanding weighted average exercise price (in usd per share) | 36.58 | $ 34.62 | |
Vested and exercisable, end of period (in usd per share) | 29.14 | ||
Vested and expected to Vest, end of period (in usd per share) | $ 36.40 | ||
Weighted-average remaining contractual life, outstanding | 7 years 1 month 17 days | 6 years 7 months 13 days | |
Weighted-average remaining contractual life, vested and exercisable | 4 years 11 months 12 days | ||
Weighted-average remaining contractual life, vested and expected to vest | 7 years 7 days |
SHAREHOLDERS EQUITY (Details _3
SHAREHOLDERS EQUITY (Details - Fair value of options) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Nov. 30, 2023 | Feb. 29, 2024 | |
Equity [Abstract] | ||
Estimated fair value of awards granted | $ 10,067 | $ 10,256 |
Unvested Forfeiture Rate | 0.22% | 6.38% |
Weighted-average grant price (in usd per share) | $ 43.78 | $ 40.34 |
Weighted-average market price (in usd per share) | $ 43.78 | $ 40.34 |
Weighted-average volatility | 46.14% | 44.70% |
Weighted-average risk-free rate | 4.29% | 4.86% |
Weighted-average dividend yield | 0.55% | 0.60% |
Weighted-average expected life | 6 years 6 months 18 days | 6 years 7 months 2 days |
SHAREHOLDERS EQUITY (Details _4
SHAREHOLDERS EQUITY (Details - Options outstanding and exercisable) - Equity Option - $ / shares shares in Thousands | 6 Months Ended | |
Feb. 29, 2024 | Aug. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award outstanding, quantity (in shares) | 1,933 | 1,478 |
Awards outstanding, weighted-average remaining contractual life | 7 years 1 month 17 days | |
Awards outstanding, weighted average exercise price (in usd per share) | $ 36.58 | $ 34.62 |
Awards exercisable, quantity (in shares) | 861 | |
Awards exercisable, weighted-average remaining contractual life | 4 years 11 months 12 days | |
Awards exercisable, weighted average exercise price (in usd per share) | $ 29.14 | |
$6.85 to $9.77 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower range limit (in usd per share) | 6.85 | |
Exercise price range, upper range limit (in usd per share) | $ 9.77 | |
Award outstanding, quantity (in shares) | 180 | |
Awards outstanding, weighted-average remaining contractual life | 1 year 6 months 21 days | |
Awards outstanding, weighted average exercise price (in usd per share) | $ 8.88 | |
Awards exercisable, quantity (in shares) | 180 | |
Awards exercisable, weighted-average remaining contractual life | 1 year 6 months 21 days | |
Awards exercisable, weighted average exercise price (in usd per share) | $ 8.88 | |
$9.78 to $18.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower range limit (in usd per share) | 9.78 | |
Exercise price range, upper range limit (in usd per share) | $ 18.76 | |
Award outstanding, quantity (in shares) | 146 | |
Awards outstanding, weighted-average remaining contractual life | 2 years 11 months 26 days | |
Awards outstanding, weighted average exercise price (in usd per share) | $ 10.08 | |
Awards exercisable, quantity (in shares) | 146 | |
Awards exercisable, weighted-average remaining contractual life | 2 years 11 months 26 days | |
Awards exercisable, weighted average exercise price (in usd per share) | $ 10.08 | |
$18.77 to $33.40 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower range limit (in usd per share) | 18.77 | |
Exercise price range, upper range limit (in usd per share) | $ 33.40 | |
Award outstanding, quantity (in shares) | 182 | |
Awards outstanding, weighted-average remaining contractual life | 5 years 1 month 28 days | |
Awards outstanding, weighted average exercise price (in usd per share) | $ 25.72 | |
Awards exercisable, quantity (in shares) | 163 | |
Awards exercisable, weighted-average remaining contractual life | 5 years 1 month 2 days | |
Awards exercisable, weighted average exercise price (in usd per share) | $ 25.01 | |
$33.41 to $47.63 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower range limit (in usd per share) | 33.41 | |
Exercise price range, upper range limit (in usd per share) | $ 47.63 | |
Award outstanding, quantity (in shares) | 1,154 | |
Awards outstanding, weighted-average remaining contractual life | 8 years 10 months 2 days | |
Awards outstanding, weighted average exercise price (in usd per share) | $ 41.34 | |
Awards exercisable, quantity (in shares) | 213 | |
Awards exercisable, weighted-average remaining contractual life | 7 years 7 months 28 days | |
Awards exercisable, weighted average exercise price (in usd per share) | $ 40.92 | |
$47.64 to $66.14 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower range limit (in usd per share) | 47.64 | |
Exercise price range, upper range limit (in usd per share) | $ 66.14 | |
Award outstanding, quantity (in shares) | 271 | |
Awards outstanding, weighted-average remaining contractual life | 7 years 25 days | |
Awards outstanding, weighted average exercise price (in usd per share) | $ 56.32 | |
Awards exercisable, quantity (in shares) | 159 | |
Awards exercisable, weighted-average remaining contractual life | 6 years 9 months 18 days | |
Awards exercisable, weighted average exercise price (in usd per share) | $ 57.87 |
CONCENTRATIONS AND UNCERTAINT_2
CONCENTRATIONS AND UNCERTAINTIES (Details Narrative) - USD ($) | 6 Months Ended | |
Feb. 29, 2024 | Feb. 28, 2023 | |
Largest Customer | ||
Concentration Risk [Line Items] | ||
Receivables from customers | $ 2,400,000 | |
Proceeds from customers | $ 1,800,000 | |
Sales | Geographic Concentration Risk | Non-US | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 29% | 31% |
Sales | Customer 1 | Customer concentration risk | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 11% | 6% |
Sales | Customer 2 | Customer concentration risk | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 4% | 5% |
Sales | Customer 3 | Customer concentration risk | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 3% | 3% |
Sales | Customer 4 | Customer concentration risk | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 3% | |
Accounts Receivable | Customer 1 | Customer concentration risk | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 4% | |
Accounts Receivable | Customer 1 | Customer concentration risk | Maximum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 19% | |
Accounts Receivable | Customer 2 | Customer concentration risk | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 4% | |
Accounts Receivable | Customer 2 | Customer concentration risk | Maximum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 19% | |
Accounts Receivable | Customer 3 | Customer concentration risk | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 4% | |
Accounts Receivable | Customer 3 | Customer concentration risk | Maximum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 19% | |
Accounts Receivable | Customer 4 | Customer concentration risk | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 4% | |
Accounts Receivable | Customer 4 | Customer concentration risk | Maximum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 19% | |
Accounts Receivable | Customer 5 | Customer concentration risk | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 4% | |
Accounts Receivable | Customer 5 | Customer concentration risk | Maximum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 19% | |
Accounts Receivable | Six Largest Customers | Customer concentration risk | Minimum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 5% | |
Accounts Receivable | Six Largest Customers | Customer concentration risk | Maximum | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 13% | |
Accounts Receivable | Largest Customer | Customer concentration risk | ||
Concentration Risk [Line Items] | ||
Concentration percentage | 19% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 USD ($) | Feb. 28, 2023 USD ($) | Feb. 29, 2024 USD ($) segment | Feb. 28, 2023 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Total revenues | $ 18,305,000 | $ 15,750,000 | $ 32,805,000 | $ 27,714,000 |
Software | ||||
Segment Reporting Information [Line Items] | ||||
Revenue increase (decrease) from prior period | $ 1,100,000 | $ 2,600,000 | ||
Revenue increase (decrease) from prior period percent | 11% | 16% | ||
Cost of revenue increase (decrease) from prior period | $ 500,000 | $ 600,000 | ||
Cost of revenue increase (decrease) from prior period percent | 60% | 35% | ||
Gross profit increase (decrease) from prior period | $ 600,000 | $ 2,000,000 | ||
Gross profit increase (decrease) from prior period percent | 6% | 14% | ||
Total revenues | $ 11,614,000 | 10,487,000 | $ 19,203,000 | 16,561,000 |
Software | ADMET Predictor | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 300,000 | 300,000 | ||
Software | Monolix | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 800,000 | 800,000 | ||
Software | Gastro Plus | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,000,000 | |||
Software | QSP Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 600,000 | |||
Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue increase (decrease) from prior period | $ 1,400,000 | $ 2,400,000 | ||
Revenue increase (decrease) from prior period percent | 27% | 22% | ||
Cost of revenue increase (decrease) from prior period | $ 2,000,000 | $ 3,800,000 | ||
Cost of revenue increase (decrease) from prior period percent | 110% | 108% | ||
Service offerings | $ 1,300,000 | |||
Gross profit increase (decrease) from prior period | $ (500,000) | $ (1,400,000) | ||
Gross profit increase (decrease) from prior period percent | (15.00%) | (18.00%) | ||
Reorganization of internal structure | $ 1,300,000 | $ 1,900,000 | ||
Total revenues | 6,691,000 | $ 5,263,000 | 13,602,000 | $ 11,153,000 |
Services | QSP Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 800,000 | 800,000 | ||
Services | PBPK Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 500,000 | 300,000 | ||
Services | PKPD Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 300,000 | |||
Services | REG Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | (100,000) | (300,000) | ||
Maximum | Services | QSP Services | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 1,900,000 | |||
Immunetrics | Software | ||||
Segment Reporting Information [Line Items] | ||||
Cost of revenue increase (decrease) from prior period | 200,000 | |||
Service offerings | 400,000 | |||
Immunetrics | Services | ||||
Segment Reporting Information [Line Items] | ||||
Service offerings | $ 400,000 | 700,000 | ||
Total revenues | $ 1,100,000 |
SEGMENT REPORTING (Details - Bu
SEGMENT REPORTING (Details - Business unit segment and consolidated results) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 18,305 | $ 15,750 | $ 32,805 | $ 27,714 |
Total cost of revenues | 5,084 | 2,620 | 9,736 | 5,291 |
Gross profit | $ 13,221 | $ 13,130 | $ 23,069 | $ 22,423 |
Gross margin | 72% | 83% | 70% | 81% |
Software | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 11,614 | $ 10,487 | $ 19,203 | $ 16,561 |
Total cost of revenues | 1,348 | 843 | 2,339 | 1,728 |
Gross profit | $ 10,266 | $ 9,644 | $ 16,864 | $ 14,833 |
Gross margin | 88% | 92% | 88% | 90% |
Software | Immunetrics | ||||
Revenue from External Customer [Line Items] | ||||
Service offerings | $ 400 | |||
Services | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | $ 6,691 | $ 5,263 | 13,602 | $ 11,153 |
Total cost of revenues | 3,736 | 1,777 | 7,397 | 3,563 |
Gross profit | $ 2,955 | $ 3,486 | $ 6,205 | $ 7,590 |
Gross margin | 44% | 66% | 46% | 68% |
Reorganization of internal structure | $ 1,300 | $ 1,900 | ||
Service offerings | 1,300 | |||
Services | Immunetrics | ||||
Revenue from External Customer [Line Items] | ||||
Total revenues | 1,100 | |||
Service offerings | $ 400 | $ 700 | ||
Revenue Benchmark | Product Concentration Risk | ||||
Revenue from External Customer [Line Items] | ||||
Concentration percentage | 100% | 100% | 100% | 100% |
Revenue Benchmark | Product Concentration Risk | Software | ||||
Revenue from External Customer [Line Items] | ||||
Concentration percentage | 63% | 67% | 59% | 60% |
Revenue Benchmark | Product Concentration Risk | Services | ||||
Revenue from External Customer [Line Items] | ||||
Concentration percentage | 37% | 33% | 41% | 40% |
EMPLOYEE BENEFIT PLAN (Details
EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Retirement Benefits [Abstract] | ||||
Defined contribution plan, employer match | 100% | |||
Defined contribution plan, employer match percentage | 4% | |||
Defined contribution plan, employer contribution | $ 0.2 | $ 0.2 | $ 0.4 | $ 0.3 |
GOVERNMENT ASSISTANCE (Details)
GOVERNMENT ASSISTANCE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Feb. 29, 2024 | Feb. 28, 2023 | Feb. 29, 2024 | Feb. 28, 2023 | |
Government Assistance [Abstract] | ||||
Government assistance, amount | $ 0.4 | $ 0.4 | $ 0.7 | $ 0.6 |
Government assistance, statement of Income or comprehensive income [Extensible Enumeration] | Total revenues |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||||||||
May 06, 2024 | Apr. 03, 2024 | Mar. 28, 2024 | Jan. 29, 2024 | Oct. 30, 2023 | Jul. 31, 2023 | Apr. 24, 2023 | Jan. 30, 2023 | Oct. 31, 2022 | Feb. 29, 2024 | Feb. 28, 2023 | |
Subsequent Event [Line Items] | |||||||||||
Dividend per share (in usd per share) | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||||
Earnout payment | $ 1,198 | $ 1,196 | $ 1,196 | $ 1,200 | $ 1,195 | $ 1,218 | $ 2,394 | $ 4,809 | |||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividend per share (in usd per share) | $ 0.06 | ||||||||||
Dividends, common stock, cash | $ 1,200 | ||||||||||
Earnout payment | $ 2,500 |