Cover
Cover - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Nov. 16, 2020 | Feb. 29, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Aug. 31, 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Current Fiscal Year End Date | --08-31 | ||
Entity File Number | 001-32046 | ||
Entity Registrant Name | Simulations Plus, Inc. | ||
Entity Central Index Key | 0001023459 | ||
Entity Tax Identification Number | 95-4595609 | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Address, Address Line One | 42505 Tenth 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 | Common Stock, par value $0.001 per share | ||
Trading Symbol | SLP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 412,688,004 | ||
Entity Common Stock, Shares Outstanding | 19,931,709 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 49,207,314 | $ 11,435,499 |
Accounts receivable, net of allowance for doubtful accounts of $50,000 and $0 | 7,421,970 | 5,026,558 |
Revenues in excess of billings | 3,093,343 | 3,233,659 |
Prepaid income taxes | 969,688 | 765,110 |
Prepaid expenses and other current assets | 1,595,447 | 704,316 |
Short-term investments | 66,803,595 | 0 |
Total current assets | 129,091,357 | 21,165,142 |
Long-term assets | ||
Capitalized computer software development costs, net of accumulated amortization of $13,581,599 and $12,356,055 | 6,087,378 | 4,959,736 |
Property and equipment, net (note 4) | 437,787 | 341,145 |
Operating lease right of use asset | 926,600 | 0 |
Intellectual property, net of accumulated amortization of $5,087,031 and $3,948,750 | 11,897,970 | 5,026,249 |
Other intangible assets net of accumulated amortization of $1,641,725 and $1,210,000 | 7,008,275 | 3,280,000 |
Goodwill | 12,921,185 | 10,387,198 |
Other assets | 50,965 | 37,227 |
Total assets | 168,421,517 | 45,196,697 |
Current liabilities | ||
Accounts payable | 349,939 | 204,075 |
Accrued payroll and other expenses | 2,250,692 | 1,639,038 |
Current portion - Contracts payable (note 6) | 2,000,000 | 1,761,028 |
Billings in excess of revenues | 140,991 | 798,549 |
Operating Lease Liability, current portion | 463,465 | 0 |
Deferred revenue | 299,482 | 380,787 |
Total current liabilities | 5,504,569 | 4,783,477 |
Long-term liabilities | ||
Deferred income taxes, net | 2,353,858 | 2,731,616 |
Operating Lease Liability | 463,312 | 0 |
Payments due under Contracts payable (note 6) | 4,063,833 | 0 |
Total liabilities | 12,385,572 | 7,515,093 |
Commitments and Contingencies (note 7) | ||
Shareholders' equity (note 8) | ||
Preferred stock, $0.001 par value 10,000,000 shares authorized no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value 50,000,000 shares authorized 19,923,277 and 17,591,834 shares issued and outstanding | 9,926 | 7,595 |
Additional paid-in capital | 128,531,427 | 15,319,474 |
Accumulated Other Comprehensive Income | 58,467 | 0 |
Retained earnings | 27,436,125 | 22,354,535 |
Total shareholders' equity | 156,035,945 | 37,681,604 |
Total liabilities and shareholders' equity | $ 168,421,517 | $ 45,196,697 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Allowance for doubtful accounts | $ 50,000 | $ 0 |
Accumulated amortization of computer software development costs | $ 13,581,599 | $ 12,356,055 |
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 50,000,000 | 50,000,000 |
Common stock shares issued | 19,923,277 | 17,591,834 |
Common stock shares outstanding | 19,923,277 | 17,591,834 |
Intellectual Property [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization on intangible assets | $ 5,087,031 | $ 3,948,750 |
Other Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization on intangible assets | $ 1,641,725 | $ 1,210,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Statement [Abstract] | |||
Revenues | $ 41,589,084 | $ 33,970,440 | $ 29,666,524 |
Cost of revenues | 10,649,230 | 9,025,704 | 7,994,228 |
Gross margin | 30,939,854 | 24,944,736 | 21,672,296 |
Operating expenses | |||
Selling, general, and administrative | 16,360,053 | 11,796,027 | 9,583,852 |
Research and development | 2,974,623 | 2,499,980 | 1,790,656 |
Total operating expenses | 19,334,676 | 14,296,007 | 11,374,508 |
Income from operations | 11,605,178 | 10,648,729 | 10,297,788 |
Other income (expense) | |||
Interest income | 29,468 | 33,522 | 27,122 |
Change in value of contingent consideration | (202,500) | (109,078) | (153,034) |
(Loss) income on currency exchange | (45,097) | (16,697) | (32,934) |
Total other income (expense) | (218,129) | (92,253) | (158,846) |
Income before provision for income taxes | 11,387,049 | 10,556,476 | 10,138,942 |
Provision for income taxes | (2,054,989) | (1,973,147) | (1,204,130) |
Net Income | $ 9,332,060 | $ 8,583,329 | $ 8,934,812 |
Earnings per share | |||
Basic | $ 0.52 | $ 0.49 | $ 0.52 |
Diluted | $ 0.50 | $ 0.48 | $ 0.50 |
Weighted-average common shares outstanding | |||
Basic | 17,819,064 | 17,492,258 | 17,328,707 |
Diluted | 18,538,373 | 18,057,431 | 17,860,392 |
Other Comprehensive Income, net of tax | |||
Foreign currency translation adjustments | $ 58,467 | $ 0 | $ 0 |
Comprehensive Income | $ 9,390,527 | $ 0 | $ 0 |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Aug. 31, 2017 | $ 7,278 | $ 12,109,141 | $ 13,688,468 | $ 25,804,887 | |
Beginning balance, shares at Aug. 31, 2017 | 17,277,604 | ||||
Exercise of stock options | $ 131 | 635,452 | 0 | 0 | 635,583 |
Exercise of stock options, shares | 130,006 | ||||
Stock-based Compensation | 562,078 | 562,078 | |||
Shares issued to Directors for services | $ 8 | 146,997 | 0 | 0 | 147,005 |
Shares issued to Directors for services, shares | 8,835 | ||||
Declaration of Dividend | (4,161,740) | (4,161,740) | |||
Net income | 8,934,812 | 8,934,812 | |||
Foreign Currency Translation Adjustments | 0 | ||||
Ending balance, value at Aug. 31, 2018 | $ 7,417 | 13,453,668 | 0 | 18,461,540 | 31,922,625 |
Ending balance, shares at Aug. 31, 2018 | 17,416,445 | ||||
Exercise of stock options | $ 168 | 787,979 | 788,147 | ||
Exercise of stock options, shares | 166,703 | ||||
Stock-based Compensation | 865,848 | 865,848 | |||
Shares issued to Directors for services | $ 10 | 211,979 | 0 | 0 | 211,989 |
Shares issued to Directors for services, shares | 8,686 | ||||
Declaration of Dividend | (4,197,055) | (4,197,055) | |||
Net income | 8,583,329 | 8,583,329 | |||
Cumulative Effect of Changes related to adoption of ASC 606 | (493,279) | (493,279) | |||
Foreign Currency Translation Adjustments | 0 | ||||
Ending balance, value at Aug. 31, 2019 | $ 7,595 | 15,319,474 | 0 | 22,354,535 | 37,681,604 |
Ending balance, shares at Aug. 31, 2019 | 17,591,834 | ||||
Exercise of stock options | $ 121 | 629,626 | 629,747 | ||
Exercise of stock options, shares | 121,647 | ||||
Stock-based Compensation | 1,286,625 | 1,286,625 | |||
Shares issued to Directors for services | $ 7 | 289,893 | 289,900 | ||
Shares issued to Directors for services, shares | 7,205 | ||||
Declaration of Dividend | (4,250,470) | (4,250,470) | |||
Net income | 9,332,060 | 9,332,060 | |||
Shares issued - Lixoft | $ 112 | 3,260,562 | 3,260,674 | ||
Shares issued - Lixoft, shares | 111,682 | ||||
Common stock issued for cash, net | $ 2,091 | 107,745,247 | $ 107,747,338 | ||
Common stock issued for cash, net, shares | 2,090,909 | 2,090,909 | |||
Foreign Currency Translation Adjustments | 58,467 | $ 58,467 | |||
Ending balance, value at Aug. 31, 2020 | $ 9,926 | $ 128,531,427 | $ 58,467 | $ 27,436,125 | $ 156,035,945 |
Ending balance, shares at Aug. 31, 2020 | 19,923,277 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Cash flows from operating activities | |||
Net income | $ 9,332,060 | $ 8,583,329 | $ 8,934,812 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 2,961,930 | 2,750,245 | 2,721,304 |
Change in value of contingent consideration | 202,500 | 109,060 | 152,752 |
Stock-based compensation | 1,576,525 | 1,077,837 | 709,083 |
Deferred income taxes | (377,759) | (299,096) | (1,731,821) |
Increase (decrease) in | |||
Accounts receivable | (2,017,792) | 487,970 | (1,465,803) |
Revenues in excess of billings | 140,316 | (1,248,063) | (504,514) |
Prepaid income taxes | (12,380) | (452,517) | 149,850 |
Prepaid expenses and other assets | (398,213) | (93,877) | (153,682) |
Accounts payable | 220,584 | (147,529) | 110,713 |
Accrued payroll and other expenses | 23,030 | 486,862 | 168,883 |
Billings in excess of revenues | (657,558) | 413,946 | 167,645 |
Accrued income taxes | 0 | 0 | 0 |
Deferred revenue | (81,305) | (29,747) | 27,966 |
Net cash provided by operating activities | 10,911,938 | 11,638,420 | 9,287,188 |
Cash flows used in investing activities | |||
Purchases of property and equipment | (231,380) | (137,745) | (183,291) |
Purchases of intellectual property | 0 | (50,000) | 0 |
Purchase of short-term investments | (67,248,924) | 0 | 0 |
Cash used to acquire subsidiaries | (9,471,352) | 0 | 0 |
Cash received in acquisition | 3,799,134 | 0 | 0 |
Capitalized computer software development costs | (2,353,188) | (1,767,996) | (2,145,429) |
Net cash used in investing activities | (75,505,710) | (1,955,741) | (2,328,720) |
Cash flows provided by (used in) financing activities | |||
Payment of dividends | (4,250,470) | (4,197,055) | (4,161,740) |
Payments on contracts payable | (1,761,028) | (4,238,973) | (247,328) |
Proceeds from the exercise of stock options | 629,747 | 788,147 | 635,583 |
Proceeds from follow-on public offering, net | 107,747,338 | 0 | 0 |
Net cash provided by (used in) financing activities | 102,365,587 | (7,647,881) | (3,773,485) |
Net increase in cash and cash equivalents | 37,771,815 | 2,034,798 | 3,184,983 |
Cash and cash equivalents, beginning of year | 11,435,499 | 9,400,701 | 6,215,718 |
Cash and cash equivalents, end of period | 49,207,314 | 11,435,499 | 9,400,701 |
Supplemental disclosures of cash flow information | |||
Income taxes paid | 2,352,770 | 2,673,475 | 2,712,988 |
Non-Cash Investing and Financing Activities | |||
Stock issued for acquisition of Lixoft | 3,260,674 | 0 | 0 |
Creation of contract liabilities for acquisition of subsidiaries | 4,528,000 | 0 | 0 |
Right of use assets capitalized | $ 1,498,542 | $ 0 | $ 0 |
ORGANIZATION AND LINES OF BUSIN
ORGANIZATION AND LINES OF BUSINESS | 12 Months Ended |
Aug. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND LINES OF BUSINESS | NOTE 1 - ORGANIZATION AND LINES OF BUSINESS Organization Simulations Plus, Inc. (“Simulations Plus”, “Lancaster”) was incorporated on July 17, 1996. In September 2014, Simulations Plus acquired all of the outstanding equity interests of Cognigen Corporation (“Cognigen”, “Buffalo”) and Cognigen became a wholly owned subsidiary of Simulations Plus, Inc. In June 2017, Simulations Plus acquired DILIsym Services, Inc. (DILIsym) as a wholly owned subsidiary. In April 2020, Simulations Plus, Inc. acquired Lixoft, a French société par actions simplifiée (“Lixoft”, “Paris”) as a wholly-owned subsidiary pursuant to a stock purchase and contribution agreement. (Collectively, “Company”, “we”, “us”, “our”). Lines of Business The Company designs and develops pharmaceutical simulation software to promote cost-effective solutions to a number of problems in pharmaceutical research and in the education of pharmacy and medical students, and it provides consulting services to the pharmaceutical and chemical industries. Recently, the Company has begun to explore developing software applications for defense and for health care outside of the pharmaceutical industry. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Simulations Plus, Inc. and, as of September 2, 2014, its wholly owned subsidiary, Cognigen Corporation, as of June 1, 2017, the accounts of DILIsym Services, Inc., and as of April 1, 2020, Lixoft accounts. 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. Significant accounting policies for us include revenue recognition, accounting for capitalized computer software development costs, valuation of stock options, and accounting for income taxes. Reclassifications Certain numbers in the prior year have been reclassified to conform to the current year's presentation. Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 and its related amendments regarding Accounting Standards Codification Topic 606 (ASC Topic 606), Revenue from Contracts with Customers We generate revenue primarily from the sale of software licenses and providing consulting services to the pharmaceutical industry for drug development. The Company determines 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, the Company satisfies a performance obligation 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. Sales commissions for new contracts are deferred and then amortized on a straight-line basis over a period of benefit. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors. Sales commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual renewal period. Amortization expense is included in sales and marketing expenses on the condensed consolidated statements of operations. We apply the practical expedient in ASC Topic 606 to expense costs as incurred for sales commissions when the period of benefit would have been one year or less. Most of our contracts are of a duration of one year or less, few, if any of the longer-term contracts have commissions associated with them. Practical Expedients and Exemptions The Company has elected the following additional practical expedients in applying Topic 606: · Commission Expense . · Transaction Price Allocated to Future Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of August 31, 2020. ASC 606 provides certain practical expedients that limit the requirement to disclose the aggregate amount of transaction price allocated to unsatisfied performance obligations. The Company applied the practical expedient to not disclose the amount of transaction price allocated to unsatisfied performance obligations when the performance obligation is part of a contract that has an original expected duration of one year or less. Cash and Cash Equivalents For purposes of the statements of cash flows, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. Accounts Receivable We analyze the age of customer balances, historical bad debt experience, customer creditworthiness, and changes in customer payment terms when making estimates of the collectability of the Company’s trade accounts receivable balances. If we determine that the financial conditions of any of our customers have deteriorated, whether due to customer-specific or general economic issues, an increase in the allowance may be made. Accounts receivable are written off when all collection attempts have failed. Investments We 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. The Company accounts for its investment in marketable securities in accordance with FASB 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 reported at amortized cost. 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 with unrealized gains or losses excluded from earnings and reported as a separate component of shareholders’ equity. The Company classifies its investments in marketable debt securities based on the facts and circumstances present at the time of purchase of the securities. During the years ended August 31, 2020, all of the Company’s investments were classified as held-to-maturity. Held-to-maturity investments are measured and recorded at amortized cost on the Company’s Consolidated Balance Sheet. Discounts and premiums to par value of the debt securities are amortized to interest income/expense over the term of the security. No gains or losses on investment securities are realized until they are sold or a decline in fair value is determined to be other-than-temporary. Capitalized Computer Software Development Costs Software development costs are capitalized in accordance with ASC 985-20, “Costs of Software to Be Sold, Leased, or Marketed” The establishment of technological feasibility and the ongoing assessment for recoverability of capitalized software development costs require considerable judgment by management with respect to certain external factors including, but not limited to, technological feasibility, anticipated future gross revenues, estimated economic life, and changes in software and hardware technologies. Capitalized computer software development costs are comprised primarily of salaries and direct payroll-related costs and the purchase of existing software to be used in the Company's software products. Amortization of capitalized computer software development costs is provided on a product-by-product basis on the straight-line method over the estimated economic life of the products not to exceed five years. Amortization of software development costs amounted to $ 1,225,544 1,331,753 1,300,434 We test capitalized computer software development costs for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Property and Equipment Property and equipment are recorded at cost, or fair market value for property and equipment acquired in business combinations, less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the estimated useful lives as follows: Property and Equipment estimated useful lives Equipment 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease Maintenance and minor replacements are charged to expense as incurred. Gains and losses on disposals are included in the results of operations. Leases In February 2016, the FASB issued ASU No. 2016-02—Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessor have not significantly changed from previous U.S. GAAP. This ASU was effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. We adopted this ASU on September 1, 2019. We lease various production, administrative and sales offices under operating leases. We evaluate our contracts to determine if an arrangement is a lease at inception and classify it as a finance or operating lease. Currently, all our leases are classified as operating leases. Leased assets and corresponding liabilities are recognized based on the present value of the lease payments over the lease term. Our lease terms may include options to extend when it is reasonably certain that we will exercise that option. Costs associated with operating leases are recognized on a straight-line basis within operating expenses over the term of the lease. With the adoption of ASC 842 on September 1, 2019, we recognized all leases with terms greater than 12 months in duration on our consolidated balance sheets as right-of-use assets and lease liabilities. We adopted the standard using the prospective approach and did not retrospectively apply to prior periods. Right-of-use assets are recorded in long-term assets on our consolidated balance sheets. Current and non-current lease liabilities are recorded as operating lease liabilities within current liabilities and long-term liabilities, respectively, on our consolidated balance sheets. As part of the adoption of this standard we recorded the following assets and liabilities as of September 1, 2019: Schedule of Operating assets and liabilities Right of use assets $ 902,553 Lease Liabilities, Current $ 537,017 Lease Liabilities, Long-term $ 365,536 We have made certain assumptions and judgments when applying ASC 842, the most significant of which are: · We elected the package of practical expedients available for transition that allow us to not reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. · We did not elect to use hindsight when considering judgments and estimates such as assessments of lessee options to extend or terminate a lease or purchase the underlying asset. · For all asset classes, we elected to not recognize a right-of-use asset and lease liability for short-term leases. · The determination of the discount rate used in a lease is our estimated incremental borrowing rate that is based on what we would expect to pay to borrow over a similar term an amount equal to the lease payments. Supplemental balance sheet information related to operating leases was as follows as of August 31, 2020: Schedule of lease cost Right of use assets $ 926,600 Lease Liabilities, Current $ 463,465 Lease Liabilities, Long-term $ 463,312 Operating lease costs $ 600,717 Weighted Average remaining lease term 2.27 Weighted Average Discount rate 4.25 Intangible Assets and Goodwill The Company performs valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and recognizes the assets acquired and liabilities assumed at their acquisition date fair value. Acquired intangible assets include customer relationships, software, trade name, and non-compete agreements. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. 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. Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill is not amortized, instead it is tested for impairment annually or when events or circumstances change that would indicate that goodwill 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 the Company's use of the acquired assets or the strategy for the Company's overall business, significant negative industry or economic trends or significant under-performance relative to expected historical or projected future results of operations. Goodwill is tested for impairment at the reporting unit level, which is one level below or the same as an operating segment. As of August 31, 2020, the Company determined that it has four reporting units, Simulations Plus, Cognigen Corporation, DILIsym Services, Inc. and Lixoft. When testing goodwill for impairment, the Company first performs a qualitative assessment to determine whether it is necessary to perform step one of a two-step annual goodwill impairment test for each reporting unit. The Company is required to perform step one only if it concludes that it is more likely than not that a reporting unit's fair value is less than its carrying value. Should this be the case, the first step of the two-step process is to identify whether a potential impairment exists by comparing the estimated fair values of the Company's reporting units with their respective book values, including goodwill. If the estimated fair value of the reporting unit exceeds book value, goodwill is considered not to be impaired, and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss, if any. The amount of the impairment loss is the excess of the carrying amount of the goodwill over its implied fair value. The estimate of implied fair value of goodwill is primarily based on an estimate of the discounted cash flows expected to result from that reporting unit, but may require valuations of certain internally generated and unrecognized intangible assets such as the Company's software, technology, patents and trademarks. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. As of August 31, 2020, the entire balance of goodwill was attributed to three of the Company's reporting units, Cognigen Corporation, DILIsym Services and Lixoft. 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. The Company has no Reconciliation of Goodwill for the period ended August 31, 2020: Schedule of reconciliation of goodwill Cognigen DILIsym Lixoft Total Balance, August 31, 2017 $ 4,789,248 $ 5,597,950 $ – $ 10,387,198 Addition – – – – Impairments – – – – Balance, August 31, 2018 4,789,248 5,597,950 – 10,387,198 Addition – – – – Impairments – – – – Balance, August 31, 2019 4,789,248 5,597,950 – 10,387,198 Addition – – 2,533,987 2,533,987 Impairments – – – – Balance, August 31, 2020 $ 4,789,248 $ 5,597,950 $ 2,533,987 $ 12,921,185 Other Intangible Assets The following table summarizes other intangible assets as of August 31, 2020: Schedule of other intangible assets Amortization Acquisition Accumulated Net book Customer relationships-Cognigen Straight line 8 years $ 1,100,000 $ 825,000 $ 275,000 Trade Name-Cognigen None 500,000 – 500,000 Covenants not to compete-Cognigen Straight line 5 years 50,000 50,000 – Covenants not to compete-DILIsym Straight line 4 years 80,000 65,000 15,000 Trade Name-DILIsym None 860,000 – 860,000 Customer relationships-DILIsym Straight line 10 years 1,900,000 617,500 1,282,500 Customer relationships-Lixoft Straight line 14 years 2,550,000 75,892 2,474,108 Trade Name-Lixoft None 1,550,000 – 1,550,000 Covenants not to compete-Lixoft Straight line 3 years 60,000 8,333 51,667 $ 8,650,000 $ 1,641,725 $ 7,008,275 Amortization expense for the year ended August 31, 2020, 2019 and 2018 was $ 431,725 357,500 357,500 Future amortization for the next five years is as follows: Schedule of future amortization Year ending August 31, Amount 2021 $ 545,000 2022 $ 530,000 2023 $ 384,000 2024 $ 372,000 2025 $ 372,000 Business Acquisitions The Company accounted for the acquisition of Cognigen, DILIsym Services, Inc. and Lixoft using the purchase method of accounting where the assets acquired and liabilities assumed are recognized based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain acquired assets and liabilities is subjective in nature and often involves the use of significant estimates and assumptions, including, but not limited to, the selection of appropriate valuation methodology, projected revenue, expenses and cash flows, weighted average cost of capital, discount rates, estimates of advertiser and publisher turnover rates and estimates of terminal values. Business acquisitions are included in the Company's consolidated financial statements as of the date of the acquisition. Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories, as defined by the standard are as follows: Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. For certain of our financial instruments, including accounts receivable, accounts payable, accrued payroll and other expenses, and accrued bonuses to officers the carrying amounts approximate fair value due to their short-term nature. The following table summarizes fair value measurements at August 31, 2020 and August 31, 2019 for assets and liabilities measured at fair value on a recurring basis: August 31, 2020: Summarizes fair value measurements Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 49,207,314 $ – $ – $ 49,207,314 Short-term investments $ 66,803,595 $ – $ – $ 66,803,595 Acquisition-related contingent consideration obligations $ – $ – $ 4,730,500 $ 4,730,500 August 31, 2019: Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 11,435,499 $ – $ – $ 11,435,499 Short-term investments $ – $ – $ – $ – Acquisition-related contingent consideration obligations $ – $ – $ 1,761,028 $ 1,761,028 As of August 31, 2020 and 2019, the Company has a liability for contingent consideration related to its acquisition of Lixoft and DILIsym Services, Inc. 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 the market. 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 value of the contingent consideration obligations are recorded in the Company’s Consolidated Statement of Operations. The following is a reconciliation of contingent consideration value. Reconciliation of contingent consideration value Value at August 31, 2019 $ 1,761,028 Purchase price contingent consideration 4,528,000 Contingent consideration payments (1,761,028 ) Change in value of contingent consideration 202,500 Value at August 31, 2020 $ 4,730,500 Advertising The Company expenses advertising costs as incurred. Advertising costs for the years ended August 31, 2020, 2019 and 2018 were approximately $ 63,944 83,213 67,848 Research and Development Costs Research and development costs are charged to expense as incurred until technological feasibility has been established. These costs include salaries, laboratory experiment, and purchased software which was developed by other companies and incorporated into, or used in the development of, our final products. Income Taxes The Company accounts for income taxes in accordance with ASC 740-10, “Income Taxes” 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 On February 28, 2012, we bought out the royalty agreement with Enslein Research. The cost of $ 75,000 10 years under the straight-line method 7,500 63,750 56,250 On May 15, 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 to royalties or other payments under that 1997 agreement. We agreed to pay TSRL total consideration of $ 6,000,000 10 years under the straight-line method 600,000 3,775,000 3,175,000 On June 1, 2017, as part of the acquisition of DILIsym Services, Inc. the Company acquired certain developed technologies associated with the drug induced liver disease (DILI). These technologies were valued at $ 2,850,000 9 years under the straight-line method 316,667 316,667 1,029,167 712,500 In September 2018, we purchased certain intellectual property rights of Entelos Holding Company, a Delaware Corporation. The cost of $ 50,000 10 years under the straight-line method 5,000 5,000 10,000 5,000 On April 1, 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 $ 8,010,000 16 years under the straight-line method 208,594 208,594 Total amortization expense for intellectual property agreements for the years ended August 31, 2020, 2019 and 2018 was $ 1,138,280 929,167 924,167 5,087,031 3,948,750 Future amortization for the next five years is as follows: Schedule of future amortization expenses Years ending TSRL Enslein DILI-Acquired Lixoft-Acquired Entelos Total 2021 $ 600,000 $ 7,500 $ 316,667 $ 500,625 $ 5,000 $ 1,429,792 2022 $ 600,000 $ 3,750 $ 316,667 $ 500,625 $ 5,000 $ 1,426,042 2023 $ 600,000 $ – $ 316,667 $ 500,625 $ 5,000 $ 1,422,292 2024 $ 425,000 $ – $ 316,667 $ 500,625 $ 5,000 $ 1,247,292 2025 $ – $ – $ 316,667 $ 500,625 $ 5,000 $ 822,292 Earnings per Share The Company reports earnings per share in accordance with FASB ACS 260-10. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similarly to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The components of basic and diluted earnings per share for the years ended August 31, 2020, 2019 and 2018 were as follows: Schedule of earnings per share 2020 2019 2018 Numerator Net income attributable to common shareholders $ 9,332,060 $ 8,583,329 $ 8,934,812 Denominator Weighted-average number of common shares outstanding during the year 17,819,064 17,492,258 17,328,707 Dilutive effect of stock options 719,309 565,173 531,685 Common stock and common stock equivalents used for diluted earnings per share 18,538,373 18,057,431 17,860,392 Stock-Based Compensation The Company accounts for stock options using the modified prospective method in accordance with FASB ASC 718-10, “Compensation-Stock Compensation” 1,286,625 865,848 562,078 Impairment of Long-lived Assets The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 350, “Intangibles – Goodwill and Other “Property and Equipment” No Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 and its related amendments regarding Accounting Standards Codification Topic 606 (ASC Topic 606), Revenue from Contracts with Customers. The standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also provides guidance on the recognition of incremental costs related to obtaining customer contracts. We adopted ASC Topic 606, effective September 1, 2018, utilizing the modified retrospective method. This approach was applied to contracts that were in process as of September 1, 2018, and the corresponding incremental costs of obtaining those contracts, which resulted in a cumulative effect adjustment of $493,279 to the opening balance of retained earnings at the date of adoption. The adoption of this ASU primarily impacts the timing of our revenue recognition for certain sales contracts, the capitalization and amortization of incremental costs of obtaining a contract, and related disclosures. The reported results for fiscal year 2019 reflect the application of ASC Topic 606. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the consolidated balance sheet. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. The Company adopted this ASU on September 1, 2019. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606), which amends certain aspects of the Board's new revenue standard, ASU 2014-09, Revenue from Contracts with Customers. The standard was adopted concurrently with the adoption of ASU 2014-09 which is effective for annual and interim periods beginning after December 15, 2017. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 3 – REVENUE RECOGNITION The Company adopted Topic 606 effective September 1, 2018 using the modified retrospective method applying this guidance to all open contracts at the date of initial application, which resulted in an adjustment to retained earnings for the cumulative effect of applying this guidance. The most significant impact of Topic 606 on revenue to the Company relates to the timing of revenue recognition for one of its payment contracts. Under 606 the revenues under the contract are being recognized as time is expended and costs are being expensed as incurred. Under ASC 605 revenues were recognized as invoiced and certain costs were capitalized as development. We generate revenue primarily from the sale of software licenses and providing consulting services to the pharmaceutical industry for drug development. The Company determines 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, the Company satisfies 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 stand-alone selling price for each performance obligation identified in the contract. Stand-alone 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 For certain software arrangements the Company hosts the licenses on servers maintained by the Company, revenue for those arrangements are accounted as Software as a Service 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. 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 methods 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 that do not fall under the expedients require the Company to perform various consulting and software development services and consortium memberships of approximately $ 3,303,461 Contract liabilities During the year ended August 31, 2020 the Company recognized $ 1,146,000 Disaggregation of Revenues Schedule of disaggregation of revenues Disaggregation of Revenues: Year Ended Year Ended Software licenses Point in time $ 20,668,195 $ 17,425,353 Over time 919,344 1,053,562 Consulting services Over time 20,001,545 15,491,525 Total Revenue $ 41,589,084 $ 33,970,440 Contracts in Progress Contracts in progress are included in the accompanying balance sheets under the following captions: Schedule of contract in progress 2020 2019 Revenues in excess of billings $ 3,093,343 $ 3,233,659 Billings in excess of revenues (140,991 ) (798,549 ) Revenues over billings on uncompleted contracts $ 2,952,352 $ 2,435,110 Cost, estimated earnings, and billings on uncompleted contracts are summarized as follows as of August 31, 2020 and 2019: 2020 2019 Revenues earned to date on uncompleted contracts $ 20,235,573 $ 19,254,928 Billings to date on uncompleted contracts (17,283,221 ) (16,819,818 ) Revenues over billings on uncompleted contracts $ 2,952,352 $ 2,435,110 Balance increases and decreases in these accounts are due to the timing of amounts billed, payments received, and revenue recognized. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment at August 31, 2020 and 2019 consisted of the following: Schedule of property and equipment 2020 2019 Equipment $ 864,560 $ 741,486 Computer equipment 547,738 411,632 Furniture and fixtures 160,991 160,990 Leasehold improvements 114,005 110,165 1,687,294 1,424,273 Less accumulated depreciation and amortization 1,249,507 1,083,128 Total $ 437,787 $ 341,145 Depreciation expense was $ 166,379 131,827 139,202 |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Aug. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | NOTE 5 – INVESTMENTS The Company invests a portion of its excess cash balances in short-term debt securities. Investments at August 31, 2020 consisted of corporate bonds with maturities remaining of less than 12 months. The Company may also invest excess cash balances in certificates of deposits, money market accounts, government-sponsored enterprise securities, corporate bonds and/or commercial paper. The Company accounts for its investments in accordance with FASB ASC 320, Investments – Debt and Equity Securities. At August 31, 2020, all investments were classified as held-to-maturity securities. The following tables summarize the Company’s short-term investments as of August 31, 2020. The Company had no FY 2020 Schedule of short term investment Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 66,803,595 $ – $ (60,977 ) $ 66,742,618 Total $ 66,803,595 $ – $ (60,977 ) $ 66,742,618 |
CONTRACTS PAYABLE
CONTRACTS PAYABLE | 12 Months Ended |
Aug. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
CONTRACTS PAYABLE | NOTE 6 - CONTRACTS PAYABLE DILIsym Acquisition Liabilities: On June 1, 2017, the Company acquired DILIsym Services, Inc. The agreement provided for a working capital adjustment, an eighteen-month $1,000,000 holdback provision against certain representations and warrantees, and an Earn-out agreement of up to an additional $5,000,000 in Earn-out payments based on earnings over the three years following acquisition. The Earn-out liability has been recorded at an estimated fair value. Payments under the Earn-out liability will be due starting in FY 2019. In September 2018, $1,556,644 was paid out under the first earn-out payment, a second earn-out payment was made in August 2019 in the amount of $1,682,329. The final payment of $1,761,028 was paid in August 2020. Lixoft Acquisition Liabilities On April 1, 2020, the Company acquired Lixoft. The agreement provided for a twenty-four month $2,000,000 holdback provision against certain representations and warrantees, comprised of $1,333,333 of cash and the release from an escrow shares of stock valued at $666,337 issued at the date of the Agreement. In addition, based on a revenue growth formula for the two years subsequent to April 1, 2020, the agreement calls for earn-out payments up to $5,500,000 (two thirds cash and one-third newly issued, unregistered shares of the Company’s common stock). The former shareholders can earn up to $2,000,000 the first year and $3,500,000 in year two. As of August 31, 2020 and 2019 the following liabilities have been recorded: Schedule of Liabilities 2020 2019 Holdback Liability - Lixoft $ 1,333,333 $ – Earn-out Liability - Lixoft 4,730,500 – Earn-out Liability - Dilisym – 1,761,028 Sub Total $ 6,063,833 $ 1,761,028 Less: Current Portion 2,000,000 1,761,028 Long-Term $ 4,063,833 $ – |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7 - COMMITMENTS AND CONTINGENCIES Leases We lease approximately 13,500 square feet of space in Lancaster, California. The original lease had a five-year term with two, three-year options to extend. The initial five-year term expired in February 2011, and we extended the lease to February 2, 2014. In June 2013, the lease was amended to extend the term to February 2, 2017. The amended lease also provides for an annual base rent increase of 3% per year and two, two-year options to extend. In May 2016 the Company exercised the two, two-year options extending the term of the lease through February 2, 2021 at a fixed rate of $25,000 per month. The new extension agreement allowed the Company with 90 days’ notice to opt out of the remaining lease in the last two years of the term upon payment of a recapture payment equal to the 3% base payment increase that would have been due under the original agreement. Our Buffalo subsidiary leases approximately 12,623 square feet of space in Buffalo, New York. The initial five-year term expired in October 2018; and was renewed for a three-year option to extending it to November 2021. The new base rent is $16,147 per month. DILIsym leases approximately 2,700 square feet of space in Research Triangle Park, North Carolina. The initial three-year term was due to expire October 2020. An amendment to the initial lease became effective April 1, 2020. This amendment added 686 square feet and extended the term of the lease to September 30, 2023. The new base rent is approximately $7,500 per month with an annual 3% adjustment. In Paris, France Lixoft leases approximately 2,300 square feet of office space, which as of April 1, 2020, had minimum payments equaling $288,000. The lease is for a 9-year term, with an option to terminate every 3 years, and expires in November of 2024. The rent is $16,555 per quarter and can be adjusted each December based on a consumer price index. Rent expense, including common area maintenance fees for the years ended August 31, 2020, 2019 and 2018 was $ 644,000 584,000 567,000 Future minimum lease payments under non-cancelable operating leases with remaining terms of one year or more at August 31, 2020 were as follows: Future minimum lease payments Years Ending August 31, 2021 $ 486,000 2022 217,000 2023 172,000 2024 75,000 2025 11,000 Future minimum lease payments $ 961,000 Line of Credit On March 31, 2020, Simulations Plus, Inc. entered into a Credit Agreement with Wells Fargo Bank, N.A. The Credit Agreement, has provided Simulations Plus, Inc. with a credit facility of $ 3,500,000 April 15, 2022 zero No Employment Agreements In the normal course of business the Company has entered into employment agreements with certain of its key management personnel that may require compensation payments upon termination. License Agreement The Company had a royalty agreement with Dassault Systèmes Americas Corp. for access to their Metabolite Database for developing our Metabolite Module within ADMET Predictor™. The module was renamed the Metabolism Module when we released ADMET Predictor version 6 on April 19, 2012. Under this agreement, we pay a royalty of 25% of revenue derived from the sale of the Metabolism/Metabolite module. This agreement was recently renegotiated, and the Company does not bear any royalty obligations towards Dassault Systèmes Americas Corp. effective as of June 30, 2019. In addition, the license agreement terminated on September 5, 2020. Under this agreement for the years ended August 31, 2020, 2019 and 2018 we incurred royalty expense (benefit) of $ (26,055) 195,828 175,740 Litigation We are not a party to any legal proceedings and are not aware of any pending legal proceedings of any kind. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Aug. 31, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 8 - SHAREHOLDERS' EQUITY Dividend The Company’s Board of Directors declared cash dividends during fiscal year 2020, 2019 and 2018. The details of dividend paid are in the following tables: Schedule of dividends declared and paid FY2018 Record Date Distribution Date Number of Shares Dividend per Total Amount 11/13/2017 11/20/2017 17,284,792 $ 0.06 $ 1,037,088 1/26/2018 2/02/2018 17,317,752 $ 0.06 1,039,065 4/25/2018 5/02/2018 17,354,005 $ 0.06 1,041,240 7/26/2018 8/02/2018 17,405,775 $ 0.06 1,044,347 Total $ 4,161,740 FY2019 Record Date Distribution Date Number of Shares Dividend per Total Amount 11/01/2018 11/08/2018 17,417,875 $ 0.06 $ 1,045,073 1/25/2019 2/01/2019 17,481,450 $ 0.06 1,048,887 4/24/2019 5/01/2019 17,515,228 $ 0.06 1,050,914 7/25/2019 8/01/2019 17,536,454 $ 0.06 1,052,181 Total $ 4,197,055 FY2020 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/25/2019 11/01/2019 17,606,314 $ 0.06 $ 1,056,379 1/27/2020 2/03/2020 17,645,639 $ 0.06 1,058,740 4/24/2020 5/01/2020 17,769,134 $ 0.06 1,066,148 7/27/2020 8/03/2020 17,820,057 $ 0.06 1,069,203 Total $ 4,250,470 Although dividend distributions are currently expected to continue on a quarterly basis, the Company’s Board of Directors reserves the right to discontinue the dividend distribution any time. Stock Option Plan On February 23, 2007, the Board of Directors adopted, and the shareholders approved, the 2007 Stock Option Plan under which a total of 1,000,000 shares of common stock had been reserved for issuance. On February 25, 2014 the shareholders approved an additional 1,000,000 shares increasing the total number of shares that may be granted under the Option Plan to 2,000,000. This plan terminated in February 2017 by its term. On December 23, 2016 the Board of Directors adopted, and on February 23, 2017 the shareholders approved, the 2017 Equity Incentive Plan under which a total of 1,000,000 December 2026 As of August 31, 2020, employees and directors hold stock options to purchase 1,223,661 shares of common stock at exercise prices ranging from $6.75 to $61.84 per share. The following table summarizes information about stock options: Schedule of stock option activity Transactions in FY18 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2017 1,249,126 $ 8.51 7.74 Granted 52,000 22.36 Exercised (130,006 ) 5.97 Canceled/Forfeited (30,144 ) 9.10 Expired (6,000 ) 5.06 Outstanding, August 31, 2018 1,134,976 $ 9.44 7.31 Vested and Exercisable, August 31, 2018 483,696 $ 7.79 6.48 Vested and Expected to Vest, August 31, 2018 1,069,807 $ 9.35 7.26 Transactions in FY19 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2018 1,134,976 $ 9.44 7.31 Granted 263,500 22.78 Exercised (166,703 ) 7.15 Canceled/Forfeited (68,514 ) 12.17 Expired – – Outstanding, August 31, 2019 1,163,259 $ 12.63 7.13 Vested and Exercisable, August 31, 2019 515,394 $ 8.57 6.09 Vested and Expected to Vest, August 31, 2019 1,101,800 $ 12.39 7.07 Transactions in FY20 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2019 1,163,259 $ 12.63 7.13 Granted 223,000 39.23 Exercised (121,647 ) 9.29 Canceled/Forfeited (40,951 ) 14.19 Expired – – Outstanding, August 31, 2020 1,223,661 $ 17.76 6.79 Vested and Exercisable, August 31, 2020 596,311 $ 10.69 5.59 Vested and Expected to Vest, August 31, 2020 1,194,239 $ 17.75 6.77 Intrinsic Value of options outstanding and options exercisable Intrinsic Value of options outstanding and options exercisable Intrinsic Value Intrinsic Intrinsic FY18 $ 13,064,884 $ 6,315,086 $ 1,495,313 FY19 $ 27,312,742 $ 14,194,724 $ 3,224,454 FY20 $ 51,272,966 $ 29,150,912 $ 4,085,753 The weighted-average remaining contractual life of options outstanding issued under the Plan, both Qualified ISO and Non-Qualified SO, was 6.79 22,122,054 3.39 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. Because our stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management's opinion, the existing models do not necessarily provide a reliable single measure of the fair value of its stock options. The following table summarizes the fair value of the options, including both ISOs and NQSOs, granted during the current fiscal year 2020 and fiscal year 2019: Schedule of fair value of options FY 2020 FY 2019 Estimated fair value of awards granted $ 2,997,120 $ 1,928,820 Unvested Forfeiture Rate 0% 6.20% Weighted average grant price $ 39.23 $ 22.78 Weighted average market price $ 39.23 $ 22.69 Weighted average volatility 33.56% 31.61% Weighted average risk-free rate 1.39% 2.59% Weighted average dividend yield 0.65% 1.10% Weighted average expected life 6.67 6.64 The exercise prices for the options outstanding at August 31, 2020 ranged from $6.75 to $61.84, and the information relating to these options is as follows: Schedule of options by exercise price range Exercise Price Awards Outstanding Awards Exercisable Low High Quantity Weighted Weighted Quantity Weighted Weighted $ 6.75 $ 8.00 177,730 4.0 $ 6.85 177,730 4.0 $ 6.85 $ 8.01 $ 16.00 547,901 6.0 $ 9.98 350,721 6.0 $ 9.97 $ 16.01 $ 24.00 230,280 7.8 $ 20.70 50,560 7.2 $ 21.18 $ 24.01 $ 38.00 204,950 9.1 $ 33.45 17,300 8.9 $ 34.23 $ 38.01 $ 52.00 19,800 9.6 $ 38.64 – – – $ 52.01 $ 61.84 43,000 9.9 $ 61.84 – – – 1,223,661 6.8 $ 17.76 596,311 5.6 $ 10.69 Follow-on Public Offering In August 2020, the company closed an underwritten public offering of 2,090,909 55.00 115 107.7 107,747,338 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9 - INCOME TAXES We utilize FASB ASC 740-10, “Income Taxes” Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each year end based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax payable for the period and the change during the period in deferred tax assets and liabilities. The components of the income tax provision for fiscal year 2020, 2019 and 2018 were as follows: Components of the income tax provision 2020 2019 2018 Current Federal $ 2,097,725 $ 1,794,596 $ 2,370,955 State 477,744 426,364 460,619 Foreign 39,038 51,285 104,377 Total current tax expense (benefit) 2,614,507 2,272,245 2,935,951 Deferred Federal (427,644 ) (140,730 ) (1,698,201 ) State (131,874 ) (158,368 ) (33,620 ) Total deferred federal and state (559,518 ) (299,098 ) (1,731,821 ) Total $ 2,054,989 $ 1,973,147 $ 1,204,130 A reconciliation of the expected income tax (benefit) computed using the federal statutory income tax rate to the Company's effective income tax rate is as follows for fiscal year 2020, 2019 and 2018: Effective income tax rate 2020 2019 2018 Income tax computed at federal statutory tax rate 21.0 % 21.0 % 25.4 % State taxes, net of federal benefit 4.2 4.1 4.0 Meals & entertainment 0.1 0.1 0.0 Stock based compensation (1.2 ) (2.6 ) 0.5 Other permanent differences (0.3 ) (0.7 ) 1.2 Research and development credit (2.7 ) (2.3 ) (2.6 ) Foreign tax related differences (1.4 ) – – Research & credit adjustments to expense 0.3 – – Domestic production activities – – (1.8 ) Change in deferred income taxes due to statutory rate changes – – (14.8 ) Change in prior year estimated taxes (1.8 ) (0.9 ) (0.0 ) Total 18.0 % 18.7 % 11.9 % Significant components of the Company's deferred tax assets and liabilities for income taxes for the fiscal years ended August 31, 2020 and 2019 are as follows: Components of the Company deferred tax assets and liabilities 2020 2019 Deferred tax assets Accrued payroll and other expenses $ 402,355 $ 236,455 Deferred revenue 6,862 55,038 Capitalized merger costs 742,056 361,103 Intellectual property 7,677 9,301 State taxes 100,326 89,537 Allowance for doubtful accounts 13,450 – State tax deferred 125,417 146,815 Total deferred tax assets 1,398,143 898,249 Less: Valuation allowance – – Deferred tax asset 1,398,143 898,249 Deferred tax liabilities Property and equipment (81,910 ) (61,991 ) State tax deferred (19,468 ) (16,471 ) Intellectual property (1,876,274 ) (2,217,234 ) Capitalized computer software development costs (1,774,349 ) (1,334,169 ) Total deferred tax liabilities (3,752,001 ) (3,629,865 ) Net deferred tax liabilities $ (2,353,858 ) $ (2,731,616 ) 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. Interest and penalties totaled $ 332 2,531 0 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. |
CONCENTRATIONS AND UNCERTAINTIE
CONCENTRATIONS AND UNCERTAINTIES | 12 Months Ended |
Aug. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND UNCERTAINTIES | NOTE 10 – CONCENTRATIONS AND UNCERTAINTIES Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash, cash equivalents and trade accounts receivable. The Company holds cash and cash equivalents at banks located in California, with balances that often exceed FDIC insured limits. Historically, the Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. However, considering the current banking environment, the Company is investigating alternative ways to minimize its exposure to such risks. While the Company may be exposed to credit losses due to the nonperformance of its counterparties, the Company does not expect the settlement of these transactions to have a material effect on its results of operations, cash flows or financial condition. The Company maintains cash at financial institutions that may, at times, exceed federally insured limits. At August 31, 2020, the Company had cash and cash equivalents exceeding insured limits by $ 10,790,000 Revenue concentration shows that international sales accounted for 29 34 39 9 7 7 8 8 7 9 7 6 5 FY20 accounts receivable concentrations show that two customers comprised 13 10 10 We operate in the computer software industry, which is highly competitive and changes rapidly. Our operating results could be significantly affected by our ability to develop new products and find new distribution channels for new and existing products. The majority of our customers are in the pharmaceutical industry. During economic downturns, we have seen consolidations in the pharmaceutical industry. Although we have not seen any significant reduction in total revenues to date, our growth rate could be affected by consolidation and downsizing in the pharmaceutical industry. |
SEGMENT AND GEOGRAPHIC REPORTIN
SEGMENT AND GEOGRAPHIC REPORTING | 12 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC REPORTING | NOTE 11 – SEGMENT AND GEOGRAPHIC REPORTING We account for segments and geographic revenues in accordance with guidance issued by the FASB. Our reportable segments are strategic business units that offer different products and services. Results for each segment and consolidated results are as follows years ended August 31, 2020, 2019 and 2018 (in thousands, because of rounding, numbers may not foot): Schedule of consolidated results from reportable segments Year ended August 31, 2020 Simulations Plus, Inc. Cognigen Corporation DILIsym Lixoft* Eliminations Total Net revenues $ 21,961 $ 11,105 $ 6,948 $ 1,575 $ – $ 41,589 Income from operations before income taxes $ 7,374 $ 1,770 $ 1,744 $ 717 $ – $ 11,605 Total assets $ 162,807 $ 11,654 $ 14,084 $ 19,972 $ (40,095 ) $ 168,422 Goodwill $ – $ 4,789 $ 5,598 $ 2,534 $ – $ 12,921 Capital expenditures $ 111 $ 87 $ 31 $ 2 $ – $ 231 Capitalized software costs $ 2,028 $ 40 $ 124 $ 160 $ – $ 2,353 Depreciation and amortization $ 1,713 $ 349 $ 600 $ 300 $ – $ 2,962 Year ended August 31, 2019 Simulations Plus, Inc. Cognigen Corporation DILIsym Lixoft* Eliminations Total Net revenues $ 19,585 $ 9,321 $ 5,065 $ – $ – $ 33,970 Income from operations before income taxes $ 7,752 $ 1,481 $ 1,416 $ – $ – $ 10,648 Total assets $ 38,535 $ 11,196 $ 13,168 $ – $ (17,702 ) $ 45,197 Goodwill $ – $ 4,789 $ 5,598 $ – $ – $ 10,387 Capital expenditures $ 39 $ 79 $ 20 $ – $ – $ 138 Capitalized software costs $ 1,482 $ 114 $ 172 $ – $ – $ 1,768 Depreciation and amortization $ 1,806 $ 364 $ 580 $ – $ – $ 2,750 Year ended August 31, 2018 Simulations Plus, Inc. Cognigen Corporation DILIsym Lixoft* Eliminations Total Net revenues $ 17,553 $ 7,857 $ 4,257 $ – $ – $ 29,667 Income from operations before income taxes $ 7,533 $ 1,902 $ 863 $ – $ – $ 10,298 Total assets $ 38,000 $ 8,733 $ 14,248 $ – $ (17,702 ) $ 43,279 Goodwill $ – $ 4,789 $ 5,598 $ – $ – $ 10,387 Capital expenditures $ 65 $ 100 $ 18 $ – $ – $ 183 Capitalized software costs $ 1,365 $ 625 $ 155 $ – $ – $ 2,145 Depreciation and amortization $ 1,748 $ 401 $ 572 $ – $ – $ 2,721 In addition, the Company allocates revenues to geographic areas based on the locations of its customers. Geographical revenues for the years ended August 31, 2020, 2019 and 2018 were as follows (in thousands, because of rounding, numbers may not foot): Schedule of geographical revenues Year ended August 31, 2020 North & South America Europe Asia Total Simulations Plus, Inc. $ 11,124 $ 5,024 $ 5,812 $ 21,961 Cognigen Corporation 11,105 – – 11,105 DILIsym Services, Inc. 6,057 646 246 6,948 Lixoft* 1,388 157 30 1,575 Total $ 29,674 $ 5,827 $ 6,088 $ 41,589,084 Year ended August 31, 2019 North & South America Europe Asia Total Simulations Plus, Inc. $ 9,381 $ 5,144 $ 5,060 $ 19,585 Cognigen Corporation 9,321 – – 9,321 DILIsym Services, Inc. 3,875 685 505 5,065 Lixoft* – – – – Total $ 22,577 $ 5,829 $ 5,565 $ 33,970,440 Year ended August 31, 2018 North & South America Europe Asia Total Simulations Plus, Inc. $ 7,856 $ 4,964 $ 4,733 $ 17,553 Cognigen Corporation 7,857 – – 7,857 DILIsym Services, Inc. 3,163 312 782 4,257 Lixoft* – – – – Total $ 18,876 $ 5,276 $ 5,515 $ 29,666,524 *Lixoft was acquired on April 1, 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Aug. 31, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 12 – RELATED PARTY TRANSACTIONS On June 1, 2017 the Company acquired DILIsym Service, Inc. As part of that agreement the Company paid $ 1,704,000 2,260,000 587,000 10,000 1,599,534 27,312 664,506 11,346 On April 1, 2020 the Company acquired Lixoft of Paris. As part of that agreement the Company paid $ 6,720,615 2,602,081 947,220 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 12 Months Ended |
Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | NOTE 13 - 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 total employee compensation. We can also elect to make a profit-sharing contribution. We contributed $ 456,484 404,684 326,762 |
ACQUISITION_MERGER WITH SUBSIDI
ACQUISITION/MERGER WITH SUBSIDIARIES | 12 Months Ended |
Aug. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITION/MERGER WITH SUBSIDIARIES | NOTE 14 - ACQUISITION/MERGER WITH SUBSIDIARIES On March 31, 2020, the Company entered into a Stock Purchase and Contribution Agreement (the “Agreement”) with Lixoft, a French société par actions simplifiée (“Lixoft”). On April 1, 2020, the Company consummated the acquisition of all outstanding equity interests of Lixoft pursuant to the terms of the Agreement, with Lixoft becoming a wholly owned subsidiary of the Company. We believe the combination of Simulations Plus and Lixoft provides substantial future potential based on the complementary strengths of each of the companies. Under the terms of the Agreement, as described below, the Company will pay the former shareholders of Lixoft total consideration of up to $16,500,000, consisting of two-thirds cash and one-third newly issued, unregistered shares of the Company’s common stock. In addition, the Company will pay $3,456,029 of excess working capital based on the March 31, 2020 financial statements of Lixoft. On April 1, 2020, the Company paid the former shareholders of Lixoft a total of $10,789,362, comprised of cash in the amount of $9,460,129 and the issuance of 111,682 shares of the Company’s common stock valued at $3,662,337, net of adjustments and a holdback for representations and warranties (under the terms of the Agreement a price of approximately $32.15 dollars per share was used based upon the volume-weighted average closing price of the Company’s shares of common stock for the 30-consecutive-trading-day period ending two trading days prior to April 1, 2020). 9,669 shares are held in an escrow for offset for representations and warrantees. Within three business days following the two-year anniversary of March 31, 2020 (the date of the Agreement) and subject to any offsets for representations and warrantees, the Company will pay the former shareholders of Lixoft a total of $2,000,000, comprised of $1,333,333 of cash and the release from an escrow shares of stock valued at $666,337 issued at the date of the Agreement. The Agreement provides for a two-year market standoff period in which the newly issued shares may not be sold by the recipients thereof. In addition, the agreement calls for earn-out payments up to an additional $5,500,000, two-thirds cash and one-third newly issued, unregistered shares of the Company’s common stock based on a revenue growth formula each year for the two years subsequent to April 1, 2020. The former shareholders can earn up to $2,000,000 the first year and $3,500,000 in year two. The Earn-out liability has been recorded at fair value. Under the acquisition method of accounting, the total purchase price reflects Lixoft’s tangible and intangible assets and liabilities based on their estimated fair values at the date of the completion of the acquisition (April 1, 2020). The following table summarizes the preliminary allocation of the purchase price for Lixoft: Allocation of purchase price Assets acquired, Including cash of $3,799,134 and accounts receivable of $629,481 $ 5,006,892 Developed Technologies Acquired 8,010,000 Estimated value of Intangibles assets acquired (Customer Lists, trade name etc.) 4,160,000 Estimated Goodwill acquired 2,533,987 Liabilities Assumed (1,117,519 ) Total Consideration $ 18,593,360 Goodwill has been provided in the transaction based on estimates of future earnings of this subsidiary including anticipated synergies associated with the positioning of the combined company as a leader in model-based drug development. Consolidated supplemental Pro Forma information The following unaudited consolidated supplemental pro forma information assumes that the acquisition of Lixoft took place on September 1, 2017 for the income statement years periods ended August 31, 2020. These amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Lixoft to reflect the same expenses in the years ended August 31, 2019 and 2018. The adjustments include costs of acquisition, and amortization of intangibles and other technologies acquired during the merger, assuming the fair-value adjustments applied on September 1, 2017, together with consequential tax effects. Schedule of statement of income (Pro forma) (Pro forma) (Pro forma) 2020* 2019 2018 (in thousands) (in thousands) (in thousands) (unaudited) (unaudited) (unaudited) Net Sales $ 43,970 $ 36,918 $ 31,891 Net Income $ 10,630 $ 9,250 $ 9,132 *Balances include five months actual results for Lixoft. |
UNAUDITED QUARTERLY FINANCIAL D
UNAUDITED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED QUARTERLY FINANCIAL DATA | NOTE 15 - UNAUDITED QUARTERLY FINANCIAL DATA The following table presents selected unaudited quarterly financial data for each full quarterly period of the years ended August 31, 2020 and 2019 (in thousands except for per share data), because of rounding, numbers may not foot: Quarterly Financial Information First Second Third Fourth Year ended August 31, 2020 Quarter Quarter Quarter Quarter Revenues $ 9,401 $ 10,350 $ 12,298 $ 9,540 Gross Profit $ 6,758 $ 7,683 $ 9,633 $ 6,865 Net Income $ 2,058 $ 2,150 $ 2,936 $ 2,188 Earnings per share, Basic $ 0.12 $ 0.12 $ 0.17 $ 0.12 Earnings per share, Diluted $ 0.11 $ 0.12 $ 0.16 $ 0.11 First Second Third Fourth Year ended August 31, 2019 Quarter Quarter Quarter Quarter Revenues $ 7,536 $ 8,472 $ 9,937 $ 8,026 Gross Profit $ 5,336 $ 6,264 $ 7,613 $ 5,735 Net Income $ 1,536 $ 2,099 $ 2,889 $ 2,059 Earnings per share, Basic $ 0.09 $ 0.12 $ 0.16 $ 0.12 Earnings per share, Diluted $ 0.09 $ 0.12 $ 0.16 $ 0.11 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Aug. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 16 - SUBSEQUENT EVENTS Dividend Declared On October 9, 2020, our Board of Directors declared a quarterly cash dividend of $0.06 per share to our shareholders. The dividend in the amount of $1,195,461 was distributed on Monday, November 2, 2020, for shareholders of record as of Monday, October 26, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Simulations Plus, Inc. and, as of September 2, 2014, its wholly owned subsidiary, Cognigen Corporation, as of June 1, 2017, the accounts of DILIsym Services, Inc., and as of April 1, 2020, Lixoft accounts. 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. Significant accounting policies for us include revenue recognition, accounting for capitalized computer software development costs, valuation of stock options, and accounting for income taxes. |
Reclassifications | Reclassifications Certain numbers in the prior year have been reclassified to conform to the current year's presentation. |
Revenue Recognition | Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 and its related amendments regarding Accounting Standards Codification Topic 606 (ASC Topic 606), Revenue from Contracts with Customers We generate revenue primarily from the sale of software licenses and providing consulting services to the pharmaceutical industry for drug development. The Company determines 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, the Company satisfies a performance obligation 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. Sales commissions for new contracts are deferred and then amortized on a straight-line basis over a period of benefit. We determined the period of benefit by taking into consideration our customer contracts, our technology and other factors. Sales commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual renewal period. Amortization expense is included in sales and marketing expenses on the condensed consolidated statements of operations. We apply the practical expedient in ASC Topic 606 to expense costs as incurred for sales commissions when the period of benefit would have been one year or less. Most of our contracts are of a duration of one year or less, few, if any of the longer-term contracts have commissions associated with them. Practical Expedients and Exemptions The Company has elected the following additional practical expedients in applying Topic 606: · Commission Expense . · Transaction Price Allocated to Future Performance Obligations ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of August 31, 2020. ASC 606 provides certain practical expedients that limit the requirement to disclose the aggregate amount of transaction price allocated to unsatisfied performance obligations. The Company applied the practical expedient to not disclose the amount of transaction price allocated to unsatisfied performance obligations when the performance obligation is part of a contract that has an original expected duration of one year or less. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statements of cash flows, the Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable We analyze the age of customer balances, historical bad debt experience, customer creditworthiness, and changes in customer payment terms when making estimates of the collectability of the Company’s trade accounts receivable balances. If we determine that the financial conditions of any of our customers have deteriorated, whether due to customer-specific or general economic issues, an increase in the allowance may be made. Accounts receivable are written off when all collection attempts have failed. |
Investments | Investments We 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. The Company accounts for its investment in marketable securities in accordance with FASB 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 reported at amortized cost. 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 with unrealized gains or losses excluded from earnings and reported as a separate component of shareholders’ equity. The Company classifies its investments in marketable debt securities based on the facts and circumstances present at the time of purchase of the securities. During the years ended August 31, 2020, all of the Company’s investments were classified as held-to-maturity. Held-to-maturity investments are measured and recorded at amortized cost on the Company’s Consolidated Balance Sheet. Discounts and premiums to par value of the debt securities are amortized to interest income/expense over the term of the security. No gains or losses on investment securities are realized until they are sold or a decline in fair value is determined to be other-than-temporary. |
Capitalized Computer Software Development Costs | Capitalized Computer Software Development Costs Software development costs are capitalized in accordance with ASC 985-20, “Costs of Software to Be Sold, Leased, or Marketed” The establishment of technological feasibility and the ongoing assessment for recoverability of capitalized software development costs require considerable judgment by management with respect to certain external factors including, but not limited to, technological feasibility, anticipated future gross revenues, estimated economic life, and changes in software and hardware technologies. Capitalized computer software development costs are comprised primarily of salaries and direct payroll-related costs and the purchase of existing software to be used in the Company's software products. Amortization of capitalized computer software development costs is provided on a product-by-product basis on the straight-line method over the estimated economic life of the products not to exceed five years. Amortization of software development costs amounted to $ 1,225,544 1,331,753 1,300,434 We test capitalized computer software development costs for recoverability whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost, or fair market value for property and equipment acquired in business combinations, less accumulated depreciation and amortization. Depreciation and amortization are provided using the straight-line method over the estimated useful lives as follows: Property and Equipment estimated useful lives Equipment 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease Maintenance and minor replacements are charged to expense as incurred. Gains and losses on disposals are included in the results of operations. |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02—Leases, to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessor have not significantly changed from previous U.S. GAAP. This ASU was effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. We adopted this ASU on September 1, 2019. We lease various production, administrative and sales offices under operating leases. We evaluate our contracts to determine if an arrangement is a lease at inception and classify it as a finance or operating lease. Currently, all our leases are classified as operating leases. Leased assets and corresponding liabilities are recognized based on the present value of the lease payments over the lease term. Our lease terms may include options to extend when it is reasonably certain that we will exercise that option. Costs associated with operating leases are recognized on a straight-line basis within operating expenses over the term of the lease. With the adoption of ASC 842 on September 1, 2019, we recognized all leases with terms greater than 12 months in duration on our consolidated balance sheets as right-of-use assets and lease liabilities. We adopted the standard using the prospective approach and did not retrospectively apply to prior periods. Right-of-use assets are recorded in long-term assets on our consolidated balance sheets. Current and non-current lease liabilities are recorded as operating lease liabilities within current liabilities and long-term liabilities, respectively, on our consolidated balance sheets. As part of the adoption of this standard we recorded the following assets and liabilities as of September 1, 2019: Schedule of Operating assets and liabilities Right of use assets $ 902,553 Lease Liabilities, Current $ 537,017 Lease Liabilities, Long-term $ 365,536 We have made certain assumptions and judgments when applying ASC 842, the most significant of which are: · We elected the package of practical expedients available for transition that allow us to not reassess whether expired or existing contracts contain leases under the new definition of a lease, lease classification for expired or existing leases and whether previously capitalized initial direct costs would qualify for capitalization under ASC 842. · We did not elect to use hindsight when considering judgments and estimates such as assessments of lessee options to extend or terminate a lease or purchase the underlying asset. · For all asset classes, we elected to not recognize a right-of-use asset and lease liability for short-term leases. · The determination of the discount rate used in a lease is our estimated incremental borrowing rate that is based on what we would expect to pay to borrow over a similar term an amount equal to the lease payments. Supplemental balance sheet information related to operating leases was as follows as of August 31, 2020: Schedule of lease cost Right of use assets $ 926,600 Lease Liabilities, Current $ 463,465 Lease Liabilities, Long-term $ 463,312 Operating lease costs $ 600,717 Weighted Average remaining lease term 2.27 Weighted Average Discount rate 4.25 |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The Company performs valuations of assets acquired and liabilities assumed on each acquisition accounted for as a business combination and recognizes the assets acquired and liabilities assumed at their acquisition date fair value. Acquired intangible assets include customer relationships, software, trade name, and non-compete agreements. The Company determines the appropriate useful life by performing an analysis of expected cash flows based on historical experience of the acquired businesses. 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. Goodwill represents the excess of the cost of an acquired entity over the fair value of the acquired net assets. Goodwill is not amortized, instead it is tested for impairment annually or when events or circumstances change that would indicate that goodwill 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 the Company's use of the acquired assets or the strategy for the Company's overall business, significant negative industry or economic trends or significant under-performance relative to expected historical or projected future results of operations. Goodwill is tested for impairment at the reporting unit level, which is one level below or the same as an operating segment. As of August 31, 2020, the Company determined that it has four reporting units, Simulations Plus, Cognigen Corporation, DILIsym Services, Inc. and Lixoft. When testing goodwill for impairment, the Company first performs a qualitative assessment to determine whether it is necessary to perform step one of a two-step annual goodwill impairment test for each reporting unit. The Company is required to perform step one only if it concludes that it is more likely than not that a reporting unit's fair value is less than its carrying value. Should this be the case, the first step of the two-step process is to identify whether a potential impairment exists by comparing the estimated fair values of the Company's reporting units with their respective book values, including goodwill. If the estimated fair value of the reporting unit exceeds book value, goodwill is considered not to be impaired, and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss, if any. The amount of the impairment loss is the excess of the carrying amount of the goodwill over its implied fair value. The estimate of implied fair value of goodwill is primarily based on an estimate of the discounted cash flows expected to result from that reporting unit, but may require valuations of certain internally generated and unrecognized intangible assets such as the Company's software, technology, patents and trademarks. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. As of August 31, 2020, the entire balance of goodwill was attributed to three of the Company's reporting units, Cognigen Corporation, DILIsym Services and Lixoft. 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. The Company has no Reconciliation of Goodwill for the period ended August 31, 2020: Schedule of reconciliation of goodwill Cognigen DILIsym Lixoft Total Balance, August 31, 2017 $ 4,789,248 $ 5,597,950 $ – $ 10,387,198 Addition – – – – Impairments – – – – Balance, August 31, 2018 4,789,248 5,597,950 – 10,387,198 Addition – – – – Impairments – – – – Balance, August 31, 2019 4,789,248 5,597,950 – 10,387,198 Addition – – 2,533,987 2,533,987 Impairments – – – – Balance, August 31, 2020 $ 4,789,248 $ 5,597,950 $ 2,533,987 $ 12,921,185 |
Other Intangible Assets | Other Intangible Assets The following table summarizes other intangible assets as of August 31, 2020: Schedule of other intangible assets Amortization Acquisition Accumulated Net book Customer relationships-Cognigen Straight line 8 years $ 1,100,000 $ 825,000 $ 275,000 Trade Name-Cognigen None 500,000 – 500,000 Covenants not to compete-Cognigen Straight line 5 years 50,000 50,000 – Covenants not to compete-DILIsym Straight line 4 years 80,000 65,000 15,000 Trade Name-DILIsym None 860,000 – 860,000 Customer relationships-DILIsym Straight line 10 years 1,900,000 617,500 1,282,500 Customer relationships-Lixoft Straight line 14 years 2,550,000 75,892 2,474,108 Trade Name-Lixoft None 1,550,000 – 1,550,000 Covenants not to compete-Lixoft Straight line 3 years 60,000 8,333 51,667 $ 8,650,000 $ 1,641,725 $ 7,008,275 Amortization expense for the year ended August 31, 2020, 2019 and 2018 was $ 431,725 357,500 357,500 Future amortization for the next five years is as follows: Schedule of future amortization Year ending August 31, Amount 2021 $ 545,000 2022 $ 530,000 2023 $ 384,000 2024 $ 372,000 2025 $ 372,000 |
Business Acquisitions | Business Acquisitions The Company accounted for the acquisition of Cognigen, DILIsym Services, Inc. and Lixoft using the purchase method of accounting where the assets acquired and liabilities assumed are recognized based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain acquired assets and liabilities is subjective in nature and often involves the use of significant estimates and assumptions, including, but not limited to, the selection of appropriate valuation methodology, projected revenue, expenses and cash flows, weighted average cost of capital, discount rates, estimates of advertiser and publisher turnover rates and estimates of terminal values. Business acquisitions are included in the Company's consolidated financial statements as of the date of the acquisition. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Assets and liabilities recorded at fair value in the Consolidated Balance Sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The categories, as defined by the standard are as follows: Level Input: Input Definition: Level I Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date. Level II Inputs, other than quoted prices included in Level I, that are observable for the asset or liability through corroboration with market data at the measurement date. Level III Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. For certain of our financial instruments, including accounts receivable, accounts payable, accrued payroll and other expenses, and accrued bonuses to officers the carrying amounts approximate fair value due to their short-term nature. The following table summarizes fair value measurements at August 31, 2020 and August 31, 2019 for assets and liabilities measured at fair value on a recurring basis: August 31, 2020: Summarizes fair value measurements Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 49,207,314 $ – $ – $ 49,207,314 Short-term investments $ 66,803,595 $ – $ – $ 66,803,595 Acquisition-related contingent consideration obligations $ – $ – $ 4,730,500 $ 4,730,500 August 31, 2019: Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 11,435,499 $ – $ – $ 11,435,499 Short-term investments $ – $ – $ – $ – Acquisition-related contingent consideration obligations $ – $ – $ 1,761,028 $ 1,761,028 As of August 31, 2020 and 2019, the Company has a liability for contingent consideration related to its acquisition of Lixoft and DILIsym Services, Inc. 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 the market. 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 value of the contingent consideration obligations are recorded in the Company’s Consolidated Statement of Operations. The following is a reconciliation of contingent consideration value. Reconciliation of contingent consideration value Value at August 31, 2019 $ 1,761,028 Purchase price contingent consideration 4,528,000 Contingent consideration payments (1,761,028 ) Change in value of contingent consideration 202,500 Value at August 31, 2020 $ 4,730,500 |
Advertising | Advertising The Company expenses advertising costs as incurred. Advertising costs for the years ended August 31, 2020, 2019 and 2018 were approximately $ 63,944 83,213 67,848 |
Research and Development Costs | Research and Development Costs Research and development costs are charged to expense as incurred until technological feasibility has been established. These costs include salaries, laboratory experiment, and purchased software which was developed by other companies and incorporated into, or used in the development of, our final products. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740-10, “Income Taxes” 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 On February 28, 2012, we bought out the royalty agreement with Enslein Research. The cost of $ 75,000 10 years under the straight-line method 7,500 63,750 56,250 On May 15, 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 to royalties or other payments under that 1997 agreement. We agreed to pay TSRL total consideration of $ 6,000,000 10 years under the straight-line method 600,000 3,775,000 3,175,000 On June 1, 2017, as part of the acquisition of DILIsym Services, Inc. the Company acquired certain developed technologies associated with the drug induced liver disease (DILI). These technologies were valued at $ 2,850,000 9 years under the straight-line method 316,667 316,667 1,029,167 712,500 In September 2018, we purchased certain intellectual property rights of Entelos Holding Company, a Delaware Corporation. The cost of $ 50,000 10 years under the straight-line method 5,000 5,000 10,000 5,000 On April 1, 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 $ 8,010,000 16 years under the straight-line method 208,594 208,594 Total amortization expense for intellectual property agreements for the years ended August 31, 2020, 2019 and 2018 was $ 1,138,280 929,167 924,167 5,087,031 3,948,750 Future amortization for the next five years is as follows: Schedule of future amortization expenses Years ending TSRL Enslein DILI-Acquired Lixoft-Acquired Entelos Total 2021 $ 600,000 $ 7,500 $ 316,667 $ 500,625 $ 5,000 $ 1,429,792 2022 $ 600,000 $ 3,750 $ 316,667 $ 500,625 $ 5,000 $ 1,426,042 2023 $ 600,000 $ – $ 316,667 $ 500,625 $ 5,000 $ 1,422,292 2024 $ 425,000 $ – $ 316,667 $ 500,625 $ 5,000 $ 1,247,292 2025 $ – $ – $ 316,667 $ 500,625 $ 5,000 $ 822,292 |
Earnings per Share | Earnings per Share The Company reports earnings per share in accordance with FASB ACS 260-10. Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings per share is computed similarly to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The components of basic and diluted earnings per share for the years ended August 31, 2020, 2019 and 2018 were as follows: Schedule of earnings per share 2020 2019 2018 Numerator Net income attributable to common shareholders $ 9,332,060 $ 8,583,329 $ 8,934,812 Denominator Weighted-average number of common shares outstanding during the year 17,819,064 17,492,258 17,328,707 Dilutive effect of stock options 719,309 565,173 531,685 Common stock and common stock equivalents used for diluted earnings per share 18,538,373 18,057,431 17,860,392 |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock options using the modified prospective method in accordance with FASB ASC 718-10, “Compensation-Stock Compensation” 1,286,625 865,848 562,078 |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 350, “Intangibles – Goodwill and Other “Property and Equipment” No |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09 and its related amendments regarding Accounting Standards Codification Topic 606 (ASC Topic 606), Revenue from Contracts with Customers. The standard provides principles for recognizing revenue for the transfer of promised goods or services to customers with the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also provides guidance on the recognition of incremental costs related to obtaining customer contracts. We adopted ASC Topic 606, effective September 1, 2018, utilizing the modified retrospective method. This approach was applied to contracts that were in process as of September 1, 2018, and the corresponding incremental costs of obtaining those contracts, which resulted in a cumulative effect adjustment of $493,279 to the opening balance of retained earnings at the date of adoption. The adoption of this ASU primarily impacts the timing of our revenue recognition for certain sales contracts, the capitalization and amortization of incremental costs of obtaining a contract, and related disclosures. The reported results for fiscal year 2019 reflect the application of ASC Topic 606. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes existing guidance on accounting for leases in "Leases (Topic 840)" and generally requires all leases to be recognized in the consolidated balance sheet. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. The Company adopted this ASU on September 1, 2019. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606), which amends certain aspects of the Board's new revenue standard, ASU 2014-09, Revenue from Contracts with Customers. The standard was adopted concurrently with the adoption of ASU 2014-09 which is effective for annual and interim periods beginning after December 15, 2017. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Property and Equipment estimated useful lives | Property and Equipment estimated useful lives Equipment 5 years Computer equipment 3 to 7 years Furniture and fixtures 5 to 7 years Leasehold improvements Shorter of life of asset or lease |
Schedule of Operating assets and liabilities | Schedule of Operating assets and liabilities Right of use assets $ 902,553 Lease Liabilities, Current $ 537,017 Lease Liabilities, Long-term $ 365,536 |
Schedule of lease cost | Schedule of lease cost Right of use assets $ 926,600 Lease Liabilities, Current $ 463,465 Lease Liabilities, Long-term $ 463,312 Operating lease costs $ 600,717 Weighted Average remaining lease term 2.27 Weighted Average Discount rate 4.25 |
Schedule of reconciliation of goodwill | Schedule of reconciliation of goodwill Cognigen DILIsym Lixoft Total Balance, August 31, 2017 $ 4,789,248 $ 5,597,950 $ – $ 10,387,198 Addition – – – – Impairments – – – – Balance, August 31, 2018 4,789,248 5,597,950 – 10,387,198 Addition – – – – Impairments – – – – Balance, August 31, 2019 4,789,248 5,597,950 – 10,387,198 Addition – – 2,533,987 2,533,987 Impairments – – – – Balance, August 31, 2020 $ 4,789,248 $ 5,597,950 $ 2,533,987 $ 12,921,185 |
Schedule of other intangible assets | Schedule of other intangible assets Amortization Acquisition Accumulated Net book Customer relationships-Cognigen Straight line 8 years $ 1,100,000 $ 825,000 $ 275,000 Trade Name-Cognigen None 500,000 – 500,000 Covenants not to compete-Cognigen Straight line 5 years 50,000 50,000 – Covenants not to compete-DILIsym Straight line 4 years 80,000 65,000 15,000 Trade Name-DILIsym None 860,000 – 860,000 Customer relationships-DILIsym Straight line 10 years 1,900,000 617,500 1,282,500 Customer relationships-Lixoft Straight line 14 years 2,550,000 75,892 2,474,108 Trade Name-Lixoft None 1,550,000 – 1,550,000 Covenants not to compete-Lixoft Straight line 3 years 60,000 8,333 51,667 $ 8,650,000 $ 1,641,725 $ 7,008,275 |
Schedule of future amortization | Schedule of future amortization Year ending August 31, Amount 2021 $ 545,000 2022 $ 530,000 2023 $ 384,000 2024 $ 372,000 2025 $ 372,000 |
Summarizes fair value measurements | Summarizes fair value measurements Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 49,207,314 $ – $ – $ 49,207,314 Short-term investments $ 66,803,595 $ – $ – $ 66,803,595 Acquisition-related contingent consideration obligations $ – $ – $ 4,730,500 $ 4,730,500 August 31, 2019: Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 11,435,499 $ – $ – $ 11,435,499 Short-term investments $ – $ – $ – $ – Acquisition-related contingent consideration obligations $ – $ – $ 1,761,028 $ 1,761,028 |
Reconciliation of contingent consideration value | Reconciliation of contingent consideration value Value at August 31, 2019 $ 1,761,028 Purchase price contingent consideration 4,528,000 Contingent consideration payments (1,761,028 ) Change in value of contingent consideration 202,500 Value at August 31, 2020 $ 4,730,500 |
Schedule of future amortization expenses | Schedule of future amortization expenses Years ending TSRL Enslein DILI-Acquired Lixoft-Acquired Entelos Total 2021 $ 600,000 $ 7,500 $ 316,667 $ 500,625 $ 5,000 $ 1,429,792 2022 $ 600,000 $ 3,750 $ 316,667 $ 500,625 $ 5,000 $ 1,426,042 2023 $ 600,000 $ – $ 316,667 $ 500,625 $ 5,000 $ 1,422,292 2024 $ 425,000 $ – $ 316,667 $ 500,625 $ 5,000 $ 1,247,292 2025 $ – $ – $ 316,667 $ 500,625 $ 5,000 $ 822,292 |
Schedule of earnings per share | Schedule of earnings per share 2020 2019 2018 Numerator Net income attributable to common shareholders $ 9,332,060 $ 8,583,329 $ 8,934,812 Denominator Weighted-average number of common shares outstanding during the year 17,819,064 17,492,258 17,328,707 Dilutive effect of stock options 719,309 565,173 531,685 Common stock and common stock equivalents used for diluted earnings per share 18,538,373 18,057,431 17,860,392 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenues | Schedule of disaggregation of revenues Disaggregation of Revenues: Year Ended Year Ended Software licenses Point in time $ 20,668,195 $ 17,425,353 Over time 919,344 1,053,562 Consulting services Over time 20,001,545 15,491,525 Total Revenue $ 41,589,084 $ 33,970,440 |
Schedule of contract in progress | Schedule of contract in progress 2020 2019 Revenues in excess of billings $ 3,093,343 $ 3,233,659 Billings in excess of revenues (140,991 ) (798,549 ) Revenues over billings on uncompleted contracts $ 2,952,352 $ 2,435,110 Cost, estimated earnings, and billings on uncompleted contracts are summarized as follows as of August 31, 2020 and 2019: 2020 2019 Revenues earned to date on uncompleted contracts $ 20,235,573 $ 19,254,928 Billings to date on uncompleted contracts (17,283,221 ) (16,819,818 ) Revenues over billings on uncompleted contracts $ 2,952,352 $ 2,435,110 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Schedule of property and equipment 2020 2019 Equipment $ 864,560 $ 741,486 Computer equipment 547,738 411,632 Furniture and fixtures 160,991 160,990 Leasehold improvements 114,005 110,165 1,687,294 1,424,273 Less accumulated depreciation and amortization 1,249,507 1,083,128 Total $ 437,787 $ 341,145 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of short term investment | Schedule of short term investment Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Commercial notes (due within one year) $ 66,803,595 $ – $ (60,977 ) $ 66,742,618 Total $ 66,803,595 $ – $ (60,977 ) $ 66,742,618 |
CONTRACTS PAYABLE (Tables)
CONTRACTS PAYABLE (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Liabilities | Schedule of Liabilities 2020 2019 Holdback Liability - Lixoft $ 1,333,333 $ – Earn-out Liability - Lixoft 4,730,500 – Earn-out Liability - Dilisym – 1,761,028 Sub Total $ 6,063,833 $ 1,761,028 Less: Current Portion 2,000,000 1,761,028 Long-Term $ 4,063,833 $ – |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum lease payments | Future minimum lease payments Years Ending August 31, 2021 $ 486,000 2022 217,000 2023 172,000 2024 75,000 2025 11,000 Future minimum lease payments $ 961,000 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Equity [Abstract] | |
Schedule of dividends declared and paid | Schedule of dividends declared and paid FY2018 Record Date Distribution Date Number of Shares Dividend per Total Amount 11/13/2017 11/20/2017 17,284,792 $ 0.06 $ 1,037,088 1/26/2018 2/02/2018 17,317,752 $ 0.06 1,039,065 4/25/2018 5/02/2018 17,354,005 $ 0.06 1,041,240 7/26/2018 8/02/2018 17,405,775 $ 0.06 1,044,347 Total $ 4,161,740 FY2019 Record Date Distribution Date Number of Shares Dividend per Total Amount 11/01/2018 11/08/2018 17,417,875 $ 0.06 $ 1,045,073 1/25/2019 2/01/2019 17,481,450 $ 0.06 1,048,887 4/24/2019 5/01/2019 17,515,228 $ 0.06 1,050,914 7/25/2019 8/01/2019 17,536,454 $ 0.06 1,052,181 Total $ 4,197,055 FY2020 Record Date Distribution Date Number of Shares Dividend per Total Amount 10/25/2019 11/01/2019 17,606,314 $ 0.06 $ 1,056,379 1/27/2020 2/03/2020 17,645,639 $ 0.06 1,058,740 4/24/2020 5/01/2020 17,769,134 $ 0.06 1,066,148 7/27/2020 8/03/2020 17,820,057 $ 0.06 1,069,203 Total $ 4,250,470 |
Schedule of stock option activity | Schedule of stock option activity Transactions in FY18 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2017 1,249,126 $ 8.51 7.74 Granted 52,000 22.36 Exercised (130,006 ) 5.97 Canceled/Forfeited (30,144 ) 9.10 Expired (6,000 ) 5.06 Outstanding, August 31, 2018 1,134,976 $ 9.44 7.31 Vested and Exercisable, August 31, 2018 483,696 $ 7.79 6.48 Vested and Expected to Vest, August 31, 2018 1,069,807 $ 9.35 7.26 Transactions in FY19 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2018 1,134,976 $ 9.44 7.31 Granted 263,500 22.78 Exercised (166,703 ) 7.15 Canceled/Forfeited (68,514 ) 12.17 Expired – – Outstanding, August 31, 2019 1,163,259 $ 12.63 7.13 Vested and Exercisable, August 31, 2019 515,394 $ 8.57 6.09 Vested and Expected to Vest, August 31, 2019 1,101,800 $ 12.39 7.07 Transactions in FY20 Number of Weighted-Average Weighted-Average Outstanding, August 31, 2019 1,163,259 $ 12.63 7.13 Granted 223,000 39.23 Exercised (121,647 ) 9.29 Canceled/Forfeited (40,951 ) 14.19 Expired – – Outstanding, August 31, 2020 1,223,661 $ 17.76 6.79 Vested and Exercisable, August 31, 2020 596,311 $ 10.69 5.59 Vested and Expected to Vest, August 31, 2020 1,194,239 $ 17.75 6.77 |
Intrinsic Value of options outstanding and options exercisable | Intrinsic Value of options outstanding and options exercisable Intrinsic Value Intrinsic Intrinsic FY18 $ 13,064,884 $ 6,315,086 $ 1,495,313 FY19 $ 27,312,742 $ 14,194,724 $ 3,224,454 FY20 $ 51,272,966 $ 29,150,912 $ 4,085,753 |
Schedule of fair value of options | Schedule of fair value of options FY 2020 FY 2019 Estimated fair value of awards granted $ 2,997,120 $ 1,928,820 Unvested Forfeiture Rate 0% 6.20% Weighted average grant price $ 39.23 $ 22.78 Weighted average market price $ 39.23 $ 22.69 Weighted average volatility 33.56% 31.61% Weighted average risk-free rate 1.39% 2.59% Weighted average dividend yield 0.65% 1.10% Weighted average expected life 6.67 6.64 |
Schedule of options by exercise price range | Schedule of options by exercise price range Exercise Price Awards Outstanding Awards Exercisable Low High Quantity Weighted Weighted Quantity Weighted Weighted $ 6.75 $ 8.00 177,730 4.0 $ 6.85 177,730 4.0 $ 6.85 $ 8.01 $ 16.00 547,901 6.0 $ 9.98 350,721 6.0 $ 9.97 $ 16.01 $ 24.00 230,280 7.8 $ 20.70 50,560 7.2 $ 21.18 $ 24.01 $ 38.00 204,950 9.1 $ 33.45 17,300 8.9 $ 34.23 $ 38.01 $ 52.00 19,800 9.6 $ 38.64 – – – $ 52.01 $ 61.84 43,000 9.9 $ 61.84 – – – 1,223,661 6.8 $ 17.76 596,311 5.6 $ 10.69 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of the income tax provision | Components of the income tax provision 2020 2019 2018 Current Federal $ 2,097,725 $ 1,794,596 $ 2,370,955 State 477,744 426,364 460,619 Foreign 39,038 51,285 104,377 Total current tax expense (benefit) 2,614,507 2,272,245 2,935,951 Deferred Federal (427,644 ) (140,730 ) (1,698,201 ) State (131,874 ) (158,368 ) (33,620 ) Total deferred federal and state (559,518 ) (299,098 ) (1,731,821 ) Total $ 2,054,989 $ 1,973,147 $ 1,204,130 |
Effective income tax rate | Effective income tax rate 2020 2019 2018 Income tax computed at federal statutory tax rate 21.0 % 21.0 % 25.4 % State taxes, net of federal benefit 4.2 4.1 4.0 Meals & entertainment 0.1 0.1 0.0 Stock based compensation (1.2 ) (2.6 ) 0.5 Other permanent differences (0.3 ) (0.7 ) 1.2 Research and development credit (2.7 ) (2.3 ) (2.6 ) Foreign tax related differences (1.4 ) – – Research & credit adjustments to expense 0.3 – – Domestic production activities – – (1.8 ) Change in deferred income taxes due to statutory rate changes – – (14.8 ) Change in prior year estimated taxes (1.8 ) (0.9 ) (0.0 ) Total 18.0 % 18.7 % 11.9 % |
Components of the Company deferred tax assets and liabilities | Components of the Company deferred tax assets and liabilities 2020 2019 Deferred tax assets Accrued payroll and other expenses $ 402,355 $ 236,455 Deferred revenue 6,862 55,038 Capitalized merger costs 742,056 361,103 Intellectual property 7,677 9,301 State taxes 100,326 89,537 Allowance for doubtful accounts 13,450 – State tax deferred 125,417 146,815 Total deferred tax assets 1,398,143 898,249 Less: Valuation allowance – – Deferred tax asset 1,398,143 898,249 Deferred tax liabilities Property and equipment (81,910 ) (61,991 ) State tax deferred (19,468 ) (16,471 ) Intellectual property (1,876,274 ) (2,217,234 ) Capitalized computer software development costs (1,774,349 ) (1,334,169 ) Total deferred tax liabilities (3,752,001 ) (3,629,865 ) Net deferred tax liabilities $ (2,353,858 ) $ (2,731,616 ) |
SEGMENT AND GEOGRAPHIC REPORT_2
SEGMENT AND GEOGRAPHIC REPORTING (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of consolidated results from reportable segments | Schedule of consolidated results from reportable segments Year ended August 31, 2020 Simulations Plus, Inc. Cognigen Corporation DILIsym Lixoft* Eliminations Total Net revenues $ 21,961 $ 11,105 $ 6,948 $ 1,575 $ – $ 41,589 Income from operations before income taxes $ 7,374 $ 1,770 $ 1,744 $ 717 $ – $ 11,605 Total assets $ 162,807 $ 11,654 $ 14,084 $ 19,972 $ (40,095 ) $ 168,422 Goodwill $ – $ 4,789 $ 5,598 $ 2,534 $ – $ 12,921 Capital expenditures $ 111 $ 87 $ 31 $ 2 $ – $ 231 Capitalized software costs $ 2,028 $ 40 $ 124 $ 160 $ – $ 2,353 Depreciation and amortization $ 1,713 $ 349 $ 600 $ 300 $ – $ 2,962 Year ended August 31, 2019 Simulations Plus, Inc. Cognigen Corporation DILIsym Lixoft* Eliminations Total Net revenues $ 19,585 $ 9,321 $ 5,065 $ – $ – $ 33,970 Income from operations before income taxes $ 7,752 $ 1,481 $ 1,416 $ – $ – $ 10,648 Total assets $ 38,535 $ 11,196 $ 13,168 $ – $ (17,702 ) $ 45,197 Goodwill $ – $ 4,789 $ 5,598 $ – $ – $ 10,387 Capital expenditures $ 39 $ 79 $ 20 $ – $ – $ 138 Capitalized software costs $ 1,482 $ 114 $ 172 $ – $ – $ 1,768 Depreciation and amortization $ 1,806 $ 364 $ 580 $ – $ – $ 2,750 Year ended August 31, 2018 Simulations Plus, Inc. Cognigen Corporation DILIsym Lixoft* Eliminations Total Net revenues $ 17,553 $ 7,857 $ 4,257 $ – $ – $ 29,667 Income from operations before income taxes $ 7,533 $ 1,902 $ 863 $ – $ – $ 10,298 Total assets $ 38,000 $ 8,733 $ 14,248 $ – $ (17,702 ) $ 43,279 Goodwill $ – $ 4,789 $ 5,598 $ – $ – $ 10,387 Capital expenditures $ 65 $ 100 $ 18 $ – $ – $ 183 Capitalized software costs $ 1,365 $ 625 $ 155 $ – $ – $ 2,145 Depreciation and amortization $ 1,748 $ 401 $ 572 $ – $ – $ 2,721 |
Schedule of geographical revenues | Schedule of geographical revenues Year ended August 31, 2020 North & South America Europe Asia Total Simulations Plus, Inc. $ 11,124 $ 5,024 $ 5,812 $ 21,961 Cognigen Corporation 11,105 – – 11,105 DILIsym Services, Inc. 6,057 646 246 6,948 Lixoft* 1,388 157 30 1,575 Total $ 29,674 $ 5,827 $ 6,088 $ 41,589,084 Year ended August 31, 2019 North & South America Europe Asia Total Simulations Plus, Inc. $ 9,381 $ 5,144 $ 5,060 $ 19,585 Cognigen Corporation 9,321 – – 9,321 DILIsym Services, Inc. 3,875 685 505 5,065 Lixoft* – – – – Total $ 22,577 $ 5,829 $ 5,565 $ 33,970,440 Year ended August 31, 2018 North & South America Europe Asia Total Simulations Plus, Inc. $ 7,856 $ 4,964 $ 4,733 $ 17,553 Cognigen Corporation 7,857 – – 7,857 DILIsym Services, Inc. 3,163 312 782 4,257 Lixoft* – – – – Total $ 18,876 $ 5,276 $ 5,515 $ 29,666,524 *Lixoft was acquired on April 1, 2020. |
ACQUISITION_MERGER WITH SUBSI_2
ACQUISITION/MERGER WITH SUBSIDIARIES (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Business Combinations [Abstract] | |
Allocation of purchase price | Allocation of purchase price Assets acquired, Including cash of $3,799,134 and accounts receivable of $629,481 $ 5,006,892 Developed Technologies Acquired 8,010,000 Estimated value of Intangibles assets acquired (Customer Lists, trade name etc.) 4,160,000 Estimated Goodwill acquired 2,533,987 Liabilities Assumed (1,117,519 ) Total Consideration $ 18,593,360 |
Schedule of statement of income | Schedule of statement of income (Pro forma) (Pro forma) (Pro forma) 2020* 2019 2018 (in thousands) (in thousands) (in thousands) (unaudited) (unaudited) (unaudited) Net Sales $ 43,970 $ 36,918 $ 31,891 Net Income $ 10,630 $ 9,250 $ 9,132 *Balances include five months actual results for Lixoft. |
UNAUDITED QUARTERLY FINANCIAL_2
UNAUDITED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Aug. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly Financial Information First Second Third Fourth Year ended August 31, 2020 Quarter Quarter Quarter Quarter Revenues $ 9,401 $ 10,350 $ 12,298 $ 9,540 Gross Profit $ 6,758 $ 7,683 $ 9,633 $ 6,865 Net Income $ 2,058 $ 2,150 $ 2,936 $ 2,188 Earnings per share, Basic $ 0.12 $ 0.12 $ 0.17 $ 0.12 Earnings per share, Diluted $ 0.11 $ 0.12 $ 0.16 $ 0.11 First Second Third Fourth Year ended August 31, 2019 Quarter Quarter Quarter Quarter Revenues $ 7,536 $ 8,472 $ 9,937 $ 8,026 Gross Profit $ 5,336 $ 6,264 $ 7,613 $ 5,735 Net Income $ 1,536 $ 2,099 $ 2,889 $ 2,059 Earnings per share, Basic $ 0.09 $ 0.12 $ 0.16 $ 0.12 Earnings per share, Diluted $ 0.09 $ 0.12 $ 0.16 $ 0.11 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Useful lives) | 12 Months Ended |
Aug. 31, 2020 | |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 to 7 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 to 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of life of asset or lease |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Lease assets and liabilities) - USD ($) | Aug. 31, 2020 | Sep. 02, 2019 | Aug. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right of use assets | $ 926,600 | $ 0 | |
Lease Liabilities, Current | 463,465 | 0 | |
Lease Liabilities, Long-term | $ 463,312 | $ 0 | |
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right of use assets | $ 902,553 | ||
Lease Liabilities, Current | 537,017 | ||
Lease Liabilities, Long-term | $ 365,536 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Lease cost) - USD ($) | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Accounting Policies [Abstract] | ||
Right of use assets | $ 926,600 | $ 0 |
Lease Liabilities, Current | 463,465 | 0 |
Lease Liabilities, Long-term | 463,312 | $ 0 |
Operating lease costs | $ 600,717 | |
Weighted average remaining lease term | 2 years 3 months 7 days | |
Weighted average discount rate | 4.25% |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Goodwill) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill, beginning balance | $ 10,387,198 | $ 10,387,198 | $ 10,387,198 |
Addition | 2,533,987 | 0 | 0 |
Impairments | 0 | 0 | 0 |
Goodwill, ending balance | 12,921,185 | 10,387,198 | 10,387,198 |
Cognigen [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill, beginning balance | 4,789,248 | 4,789,248 | 4,789,248 |
Addition | 0 | 0 | 0 |
Impairments | 0 | 0 | 0 |
Goodwill, ending balance | 4,789,248 | 4,789,248 | 4,789,248 |
D I L Isym [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill, beginning balance | 5,597,950 | 5,597,950 | 5,597,950 |
Addition | 0 | 0 | 0 |
Impairments | 0 | 0 | 0 |
Goodwill, ending balance | 5,597,950 | 5,597,950 | 5,597,950 |
Lixoft [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill, beginning balance | 0 | 0 | 0 |
Addition | 2,533,987 | 0 | 0 |
Impairments | 0 | 0 | 0 |
Goodwill, ending balance | $ 2,533,987 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Other Intangible Assets) - USD ($) | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Net book value | $ 7,008,275 | $ 3,280,000 |
Customer Relationships [Member] | Cognigen [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | Straight line 8 years | |
Acquisition value | $ 1,100,000 | |
Accumulated amortization | 825,000 | |
Net book value | $ 275,000 | |
Customer Relationships [Member] | D I L Isym [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | Straight line 10 years | |
Acquisition value | $ 1,900,000 | |
Accumulated amortization | 617,500 | |
Net book value | $ 1,282,500 | |
Customer Relationships [Member] | Lixoft [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | Straight line 14 years | |
Acquisition value | $ 2,550,000 | |
Accumulated amortization | 75,892 | |
Net book value | $ 2,474,108 | |
Trade Names [Member] | Cognigen [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | None | |
Acquisition value | $ 500,000 | |
Accumulated amortization | 0 | |
Net book value | $ 500,000 | |
Trade Names [Member] | D I L Isym [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | None | |
Acquisition value | $ 860,000 | |
Accumulated amortization | 0 | |
Net book value | $ 860,000 | |
Trade Names [Member] | Lixoft [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | None | |
Acquisition value | $ 1,550,000 | |
Accumulated amortization | 0 | |
Net book value | $ 1,550,000 | |
Noncompete Agreements [Member] | Cognigen [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | Straight line 5 years | |
Acquisition value | $ 50,000 | |
Accumulated amortization | 50,000 | |
Net book value | $ 0 | |
Noncompete Agreements [Member] | D I L Isym [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | Straight line 4 years | |
Acquisition value | $ 80,000 | |
Accumulated amortization | 65,000 | |
Net book value | $ 15,000 | |
Noncompete Agreements [Member] | Lixoft [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization period | Straight line 3 years | |
Acquisition value | $ 60,000 | |
Accumulated amortization | 8,333 | |
Net book value | 51,667 | |
Other Intangible Assets [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Acquisition value | 8,650,000 | |
Accumulated amortization | 1,641,725 | $ 1,210,000 |
Net book value | $ 7,008,275 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Amortization schedule) - Other Intangible Assets [Member] | Aug. 31, 2020USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 545,000 |
2022 | 530,000 |
2023 | 384,000 |
2024 | 372,000 |
2025 | $ 372,000 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Fair value measurements) - Fair Value, Recurring [Member] - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Cash and Cash Equivalents [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value assets | $ 49,207,314 | $ 11,435,499 |
Short-term Investments [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value assets | 66,803,595 | 0 |
Aquisition Related Contingent Consideration Obligations [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value liabilities | 4,730,500 | 1,761,028 |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value assets | 49,207,314 | 11,435,499 |
Fair Value, Inputs, Level 1 [Member] | Short-term Investments [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value assets | 66,803,595 | 0 |
Fair Value, Inputs, Level 1 [Member] | Aquisition Related Contingent Consideration Obligations [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Short-term Investments [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value assets | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Aquisition Related Contingent Consideration Obligations [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Short-term Investments [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value assets | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Aquisition Related Contingent Consideration Obligations [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value liabilities | $ 4,730,500 | $ 1,761,028 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Reconciliation of contingent consideration) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Accounting Policies [Abstract] | |||
Contingent consideration, beginning balance | $ 1,761,028 | ||
Purchase price contingent consideration | 4,528,000 | ||
Contingent consideration payments | (1,761,028) | ||
Change in value of contingent consideration | 202,500 | $ 109,060 | $ 152,752 |
Contingent consideration, ending balance | $ 4,730,500 | $ 1,761,028 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Amortization expenses) - Intellectual Property [Member] | Aug. 31, 2020USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2021 | $ 1,429,792 |
2022 | 1,426,042 |
2023 | 1,422,292 |
2024 | 1,247,292 |
2025 | 822,292 |
T S R L [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2021 | 600,000 |
2022 | 600,000 |
2023 | 600,000 |
2024 | 425,000 |
2025 | 0 |
Enslien [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2021 | 7,500 |
2022 | 3,750 |
2023 | 0 |
2024 | 0 |
2025 | 0 |
D I L I [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2021 | 316,667 |
2022 | 316,667 |
2023 | 316,667 |
2024 | 316,667 |
2025 | 316,667 |
Lixoft [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2021 | 500,625 |
2022 | 500,625 |
2023 | 500,625 |
2024 | 500,625 |
2025 | 500,625 |
Entelos [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
2021 | 5,000 |
2022 | 5,000 |
2023 | 5,000 |
2024 | 5,000 |
2025 | $ 5,000 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Earnings per share) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Numerator | |||||||||||
Net income attributable to common shareholders | $ 2,188,000 | $ 2,936,000 | $ 2,150,000 | $ 2,058,000 | $ 2,059,000 | $ 2,889,000 | $ 2,099,000 | $ 1,536,000 | $ 9,332,060 | $ 8,583,329 | $ 8,934,812 |
Denominator | |||||||||||
Weighted-average number of common shares outstanding during the year | 17,819,064 | 17,492,258 | 17,328,707 | ||||||||
Dilutive effect of stock options | 719,309 | 565,173 | 531,685 | ||||||||
Common stock and common stock equivalents used for diluted earnings per share | 18,538,373 | 18,057,431 | 17,860,392 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 7 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Feb. 28, 2012 | Apr. 02, 2020 | May 15, 2014 | Jun. 02, 2017 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of software development | $ 1,225,544 | $ 1,331,753 | $ 1,300,434 | |||||
Advertising costs | 63,944 | 83,213 | 67,848 | |||||
Stock-based compensation | 1,576,525 | 1,077,837 | 709,083 | |||||
Impairment losses | 0 | 0 | 0 | |||||
Equity Option [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Stock-based compensation | 1,286,625 | 865,848 | 562,078 | |||||
Goodwill [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Impairment of long-lived assets | 0 | 0 | 0 | |||||
Other Intangible Assets [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | 431,725 | 357,500 | 357,500 | |||||
Intangible asset acquisition value | 8,650,000 | |||||||
Accumulated amortization of intellectual property | 1,641,725 | 1,210,000 | ||||||
Royalty Agreements [Member] | Enslien [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 75,000 | |||||||
Amortization period | 10 years under the straight-line method | |||||||
Intellectual Property [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | 1,138,280 | 929,167 | $ 924,167 | |||||
Accumulated amortization of intellectual property | 5,087,031 | 3,948,750 | ||||||
Intellectual Property [Member] | Enslien [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | 7,500 | 7,500 | ||||||
Accumulated amortization of intellectual property | 63,750 | 56,250 | ||||||
Intellectual Property [Member] | T S R L [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | 600,000 | 600,000 | ||||||
Accumulated amortization of intellectual property | 3,775,000 | 3,175,000 | ||||||
Intellectual Property [Member] | D I L Isym [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | 316,667 | 316,667 | ||||||
Accumulated amortization of intellectual property | 1,029,167 | 712,500 | ||||||
Intellectual Property [Member] | Entelos [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | 5,000 | 5,000 | ||||||
Accumulated amortization of intellectual property | 10,000 | $ 5,000 | ||||||
Intellectual Property [Member] | Lixoft [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization of intangible assets | 208,594 | |||||||
Accumulated amortization of intellectual property | $ 208,594 | |||||||
Term And Nonassertion Agr [Member] | T S R L [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 6,000,000 | |||||||
Amortization period | 10 years under the straight-line method | |||||||
Certain Developed Technologies [Member] | D I L Isym [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 2,850,000 | |||||||
Amortization period | 9 years under the straight-line method | |||||||
Certain Developed Technologies [Member] | Lixoft [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 8,010,000 | |||||||
Amortization period | 16 years under the straight-line method | |||||||
Certain Intellectual Property Rights [Member] | FY 2016 3rd Qtr [Member] | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Intangible asset acquisition value | $ 50,000 | |||||||
Amortization period | 10 years under the straight-line method |
REVENUE RECOGNITION (Details -
REVENUE RECOGNITION (Details - Disaggregation) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 9,540,000 | $ 12,298,000 | $ 10,350,000 | $ 9,401,000 | $ 8,026,000 | $ 9,937,000 | $ 8,472,000 | $ 7,536,000 | $ 41,589,084 | $ 33,970,440 | $ 29,666,524 |
Software Licenses [Member] | Transferred at Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 20,668,195 | 17,425,353 | |||||||||
Software Licenses [Member] | Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 919,344 | 1,053,562 | |||||||||
Consulting Services [Member] | Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 20,001,545 | $ 15,491,525 |
REVENUE RECOGNITION (Details _2
REVENUE RECOGNITION (Details - Contracts in Progess) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Revenues in excess of billings | $ 3,093,343 | $ 3,233,659 |
Billings in excess of revenues | (140,991) | (798,549) |
Revenues over billings on uncompleted contracts | 2,952,352 | 2,435,110 |
Revenues earned to date on uncompleted contracts | 20,235,573 | 19,254,928 |
Billings to date on uncompleted contracts | $ (17,283,221) | $ (16,819,818) |
REVENUE RECOGNITION (Details Na
REVENUE RECOGNITION (Details Narrative) | 12 Months Ended |
Aug. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 3,303,461 |
Revenues included in contract liabilities | $ 1,146,000 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,687,294 | $ 1,424,273 |
Less accumulated depreciation and amortization | 1,249,507 | 1,083,128 |
Net Book Value | 437,787 | 341,145 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 864,560 | 741,486 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 547,738 | 411,632 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 160,991 | 160,990 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 114,005 | $ 110,165 |
PROPERTY AND EQUIPMENT (Detai_2
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 166,379 | $ 131,827 | $ 139,202 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Net Investment Income [Line Items] | ||
Short term investment, amortized cost | $ 66,803,595 | $ 0 |
Gross unrealized gains | ||
Gross unrealized loss | (60,977) | |
Short term investment, fair value | 66,742,618 | |
Commercial Paper [Member] | ||
Net Investment Income [Line Items] | ||
Short term investment, amortized cost | 66,803,595 | |
Gross unrealized gains | ||
Gross unrealized loss | (60,977) | |
Short term investment, fair value | $ 66,742,618 |
INVESTMENTS (Details Narrative)
INVESTMENTS (Details Narrative) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Short-term investments | $ 66,803,595 | $ 0 |
CONTRACTS PAYABLE (Details)
CONTRACTS PAYABLE (Details) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total contract with customer | $ 6,063,833 | $ 1,761,028 |
Less: Current Portion | 2,000,000 | 1,761,028 |
Long-Term | 4,063,833 | 0 |
Holdback Liability Lixoft [Member] | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total contract with customer | 1,333,333 | 0 |
Earnout Liability Lixoft [Member] | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total contract with customer | 4,730,500 | 0 |
Earnout Liability Dilisym [Member] | ||
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total contract with customer | $ 0 | $ 1,761,028 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Aug. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2021 | $ 486,000 |
2022 | 217,000 |
2023 | 172,000 |
2024 | 75,000 |
2025 | 11,000 |
Future minimum lease payments | $ 961,000 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 7 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Summary of Investment Holdings [Line Items] | ||||
Rent expense | $ 644,000 | $ 584,000 | $ 567,000 | |
Royalties expense | (26,055) | $ 195,828 | $ 175,740 | |
Wells Fargo [Member] | ||||
Summary of Investment Holdings [Line Items] | ||||
Line of credit maximum amount | $ 3,500,000 | |||
Line of credit expiration date | Apr. 15, 2022 | |||
Line of credit amount outstanding | $ 0 |
SHAREHOLDERS EQUITY (Details -
SHAREHOLDERS EQUITY (Details - Dividends) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Dividends Payable [Line Items] | |||
Total Amount | $ 4,250,470 | $ 4,197,055 | $ 4,161,740 |
Record Date 20181 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Nov. 13, 2017 | ||
Distribution Date | Nov. 20, 2017 | ||
Number of Shares Outstanding on Record Date | 17,284,792 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,037,088 | ||
Record Date 20182 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Jan. 26, 2018 | ||
Distribution Date | Feb. 2, 2018 | ||
Number of Shares Outstanding on Record Date | 17,317,752 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,039,065 | ||
Record Date 20183 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Apr. 25, 2018 | ||
Distribution Date | May 2, 2018 | ||
Number of Shares Outstanding on Record Date | 17,354,005 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,041,240 | ||
Record Date 20184 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Jul. 26, 2018 | ||
Distribution Date | Aug. 2, 2018 | ||
Number of Shares Outstanding on Record Date | 17,405,775 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,044,347 | ||
Record Date 20191 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Nov. 1, 2018 | ||
Distribution Date | Nov. 8, 2018 | ||
Number of Shares Outstanding on Record Date | 17,417,875 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,045,073 | ||
Record Date 20192 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Jan. 25, 2019 | ||
Distribution Date | Feb. 1, 2019 | ||
Number of Shares Outstanding on Record Date | 17,481,450 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,048,887 | ||
Record Date 20193 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Apr. 24, 2019 | ||
Distribution Date | May 1, 2019 | ||
Number of Shares Outstanding on Record Date | 17,515,228 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,050,914 | ||
Record Date 20194 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Jul. 25, 2019 | ||
Distribution Date | Aug. 1, 2019 | ||
Number of Shares Outstanding on Record Date | 17,536,454 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,052,181 | ||
Record Date 20201 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Oct. 25, 2019 | ||
Distribution Date | Nov. 1, 2019 | ||
Number of Shares Outstanding on Record Date | 17,606,314 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,056,379 | ||
Record Date 20202 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Jan. 27, 2020 | ||
Distribution Date | Feb. 3, 2020 | ||
Number of Shares Outstanding on Record Date | 17,645,639 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,058,740 | ||
Record Date 20203 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Apr. 24, 2020 | ||
Distribution Date | May 1, 2020 | ||
Number of Shares Outstanding on Record Date | 17,769,134 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,066,148 | ||
Record Date 20204 [Member] | |||
Dividends Payable [Line Items] | |||
Record Date | Jul. 27, 2020 | ||
Distribution Date | Aug. 3, 2020 | ||
Number of Shares Outstanding on Record Date | 17,820,057 | ||
Dividend per Share | $ 0.06 | ||
Total Amount | $ 1,069,203 |
SHAREHOLDERS EQUITY (Details _2
SHAREHOLDERS EQUITY (Details - Option activity) - $ / shares | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | $ 39.23 | $ 22.78 | |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option outstanding, beginning balance | 1,163,259 | 1,134,976 | 1,249,126 |
Outstanding | $ 12.63 | $ 9.44 | $ 8.51 |
Outstanding, beginning of period | 7 years 1 month 17 days | 7 years 3 months 21 days | 7 years 8 months 26 days |
Granted | 223,000 | 263,500 | 52,000 |
Granted | $ 39.23 | $ 22.78 | $ 22.36 |
Exercised | (121,647) | (166,703) | (130,006) |
Exercised | $ 9.29 | $ 7.15 | $ 5.97 |
Canceled/Forfeited | (40,951) | (68,514) | (30,144) |
Canceled/Forfeited | $ 14.19 | $ 12.17 | $ 9.10 |
Expired | (6,000) | ||
Expired | $ 5.06 | ||
Awards Outstanding, ending balance | 1,223,661 | 1,163,259 | 1,134,976 |
Outstanding | $ 17.76 | $ 12.63 | $ 9.44 |
Outstanding, end of period | 6 years 9 months 14 days | 7 years 1 month 17 days | 7 years 3 months 21 days |
Vested and Exercisable, end of period | 596,311 | 515,394 | 483,696 |
Vested and Exercisable, end of period | $ 10.69 | $ 8.57 | $ 7.79 |
Vested and Exercisable | 5 years 7 months 2 days | 6 years 1 month 2 days | 6 years 5 months 23 days |
Vested and Expected to Vest, end of period | 1,194,239 | 1,101,800 | 1,069,807 |
Vested and Expected to Vest, end of period | $ 17.75 | $ 12.39 | $ 9.35 |
Vested and Expected to Vest | 6 years 9 months 7 days | 7 years 25 days | 7 years 3 months 3 days |
Expired | 6,000 |
SHAREHOLDERS EQUITY (Details _3
SHAREHOLDERS EQUITY (Details - Intrinsic Value) - Equity Option [Member] - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic Value of Options Outstanding | $ 51,272,966 | $ 27,312,742 | $ 13,064,884 |
Intrinsic Value of Options Exercisable | 29,150,912 | 14,194,724 | 6,315,086 |
Intrinsic Value of Options Exercised | $ 4,085,753 | $ 3,224,454 | $ 1,495,313 |
SHAREHOLDERS EQUITY (Details _4
SHAREHOLDERS EQUITY (Details - Fair value of options) - USD ($) | 12 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Equity [Abstract] | ||
Estimated fair value of awards granted | $ 2,997,120 | $ 1,928,820 |
Unvested Forfeiture Rate | 0.00% | 6.20% |
Weighted average grant price | $ 39.23 | $ 22.78 |
Weighted average market price | $ 39.23 | $ 22.69 |
Weighted average volatility | 33.56% | 31.61% |
Weighted average risk-free rate | 1.39% | 2.59% |
Weighted average dividend yield | 0.65% | 1.10% |
Weighted average expected life | 6 years 8 months 1 day | 6 years 7 months 20 days |
SHAREHOLDERS EQUITY (Details _5
SHAREHOLDERS EQUITY (Details - Options outstanding and exercisable) - Equity Option [Member] - $ / shares | 12 Months Ended | |||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards outstanding | 1,223,661 | 1,163,259 | 1,134,976 | 1,249,126 |
Awards outstanding weighted average remaining contractual life | 6 years 9 months 18 days | |||
Awards outstanding weighted average exercise price | $ 17.76 | $ 12.63 | $ 9.44 | $ 8.51 |
Awards exercisable | 596,311 | 515,394 | 483,696 | |
Awards exercisable weighted average remaining contractual life | 5 years 7 months 6 days | |||
Awards exercisable weighted average exercise price | $ 10.69 | $ 8.57 | $ 7.79 | |
$1.00 to $1.50 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price low | 6.75 | |||
Exercise price high | $ 8 | |||
Awards outstanding | 177,730 | |||
Awards outstanding weighted average remaining contractual life | 4 years | |||
Awards outstanding weighted average exercise price | $ 6.85 | |||
Awards exercisable | 177,730 | |||
Awards exercisable weighted average remaining contractual life | 4 years | |||
Awards exercisable weighted average exercise price | $ 6.85 | |||
$7.51 to $9.00 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price low | 8.01 | |||
Exercise price high | $ 16 | |||
Awards outstanding | 547,901 | |||
Awards outstanding weighted average remaining contractual life | 6 years | |||
Awards outstanding weighted average exercise price | $ 9.98 | |||
Awards exercisable | 350,721 | |||
Awards exercisable weighted average remaining contractual life | 6 years | |||
Awards exercisable weighted average exercise price | $ 9.97 | |||
$3.01 to $4.50 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price low | 16.01 | |||
Exercise price high | $ 24 | |||
Awards outstanding | 230,280 | |||
Awards outstanding weighted average remaining contractual life | 7 years 9 months 18 days | |||
Awards outstanding weighted average exercise price | $ 20.70 | |||
Awards exercisable | 50,560 | |||
Awards exercisable weighted average remaining contractual life | 7 years 2 months 12 days | |||
Awards exercisable weighted average exercise price | $ 21.18 | |||
$4.51 to $6.00 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price low | 24.01 | |||
Exercise price high | $ 38 | |||
Awards outstanding | 204,950 | |||
Awards outstanding weighted average remaining contractual life | 9 years 1 month 6 days | |||
Awards outstanding weighted average exercise price | $ 33.45 | |||
Awards exercisable | 17,300 | |||
Awards exercisable weighted average remaining contractual life | 8 years 10 months 24 days | |||
Awards exercisable weighted average exercise price | $ 34.23 | |||
Price 5 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price low | 38.01 | |||
Exercise price high | $ 52 | |||
Awards outstanding | 19,800 | |||
Awards outstanding weighted average remaining contractual life | 9 years 7 months 6 days | |||
Awards outstanding weighted average exercise price | $ 38.64 | |||
Awards exercisable | 0 | |||
Awards exercisable weighted average exercise price | $ 0 | |||
Price 6 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price low | 52.01 | |||
Exercise price high | $ 61.84 | |||
Awards outstanding | 43,000 | |||
Awards outstanding weighted average remaining contractual life | 9 years 10 months 24 days | |||
Awards outstanding weighted average exercise price | $ 61.84 | |||
Awards exercisable | 0 | |||
Awards exercisable weighted average exercise price | $ 0 |
SHAREHOLDERS' EQUITY (Details N
SHAREHOLDERS' EQUITY (Details Narrative) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued under public offering | 2,090,909 | ||
Shares issued price per share | $ 55 | ||
Proceeds from public offering | $ 107,747,338 | $ 0 | $ 0 |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining contractual life | 6 years 9 months 14 days | ||
Fair value of non-vested options | $ 22,122,054 | ||
Fair value amortization period | 3 years 4 months 20 days | ||
Numerator | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for issuance under the plan | 1,000,000 |
INCOME TAXES (Details - Income
INCOME TAXES (Details - Income tax provision) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Current | |||
Federal | $ 2,097,725 | $ 1,794,596 | $ 2,370,955 |
State | 477,744 | 426,364 | 460,619 |
Foreign | 39,038 | 51,285 | 104,377 |
Total current tax expense (benefit) | 2,614,507 | 2,272,245 | 2,935,951 |
Deferred | |||
Federal | (427,644) | (140,730) | (1,698,201) |
State | (131,874) | (158,368) | (33,620) |
Total deferred federal and state | (559,518) | (299,098) | (1,731,821) |
Total | $ 2,054,989 | $ 1,973,147 | $ 1,204,130 |
INCOME TAXES (Details - Reconci
INCOME TAXES (Details - Reconciliation) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax computed at federal statutory tax rate | 21.00% | 21.00% | 25.40% |
State taxes, net of federal benefit | 4.20% | 4.10% | 4.00% |
Meals & entertainment | 0.10% | 0.10% | 0.00% |
Stock based compensation | (1.20%) | (2.60%) | 0.50% |
Other permanent differences | (0.30%) | (0.70%) | 1.20% |
Research and development credit | (2.70%) | (2.30%) | (2.60%) |
Foreign tax related differences | (1.40%) | 0.00% | 0.00% |
Research & credit adjustments to expense | 0.30% | 0.00% | 0.00% |
Domestic production activities | 0.00% | 0.00% | (1.80%) |
Change in deferred income taxes due to statutory rate changes | 0.00% | 0.00% | (14.80%) |
Change in prior year estimated taxes | (1.80%) | (0.90%) | (0.00%) |
Total | 18.00% | 18.70% | 11.90% |
INCOME TAXES (Details - Deferre
INCOME TAXES (Details - Deferred taxes) - USD ($) | Aug. 31, 2020 | Aug. 31, 2019 |
Deferred tax assets | ||
Accrued payroll and other expenses | $ 402,355 | $ 236,455 |
Deferred revenue | 6,862 | 55,038 |
Capitalized merger costs | 742,056 | 361,103 |
Intellectual property | 7,677 | 9,301 |
State taxes | 100,326 | 89,537 |
Allowance for doubtful accounts | 13,450 | 0 |
State tax deferred | 125,417 | 146,815 |
Total deferred tax assets | 1,398,143 | 898,249 |
Less: Valuation allowance | 0 | 0 |
Deferred tax asset | 1,398,143 | 898,249 |
Deferred tax liabilities | ||
Property and equipment | (81,910) | (61,991) |
State tax deferred | (19,468) | (16,471) |
Intellectual property | (1,876,274) | (2,217,234) |
Capitalized computer software development costs | (1,774,349) | (1,334,169) |
Total deferred tax liabilities | (3,752,001) | (3,629,865) |
Net deferred tax liabilities | $ (2,353,858) | $ (2,731,616) |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Interest and penalties | $ 332 | $ 2,531 | $ 0 |
CONCENTRATIONS AND UNCERTAINT_2
CONCENTRATIONS AND UNCERTAINTIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Concentration Risk [Line Items] | |||
Cash and cash equivalents exceeding insured limits | $ 10,790,000 | ||
Sales [Member] | International Sales [Member] | |||
Concentration Risk [Line Items] | |||
Net sales concentration percentage | 29.00% | 34.00% | 39.00% |
Sales [Member] | Customer 1 [Member] | |||
Concentration Risk [Line Items] | |||
Net sales concentration percentage | 9.00% | 8.00% | 9.00% |
Sales [Member] | Customer 2 [Member] | |||
Concentration Risk [Line Items] | |||
Net sales concentration percentage | 7.00% | 8.00% | 7.00% |
Sales [Member] | Customer 3 [Member] | |||
Concentration Risk [Line Items] | |||
Net sales concentration percentage | 7.00% | 7.00% | 6.00% |
Sales [Member] | Denominator | |||
Concentration Risk [Line Items] | |||
Net sales concentration percentage | 5.00% | ||
Accounts Receivable [Member] | A Customer [Member] | |||
Concentration Risk [Line Items] | |||
Net sales concentration percentage | 13.00% | 10.00% | |
Accounts Receivable [Member] | B Customer [Member] | |||
Concentration Risk [Line Items] | |||
Net sales concentration percentage | 10.00% |
SEGMENT AND GEOGRAPHIC REPORT_3
SEGMENT AND GEOGRAPHIC REPORTING (Details - Segment reporting) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | $ 9,540,000 | $ 12,298,000 | $ 10,350,000 | $ 9,401,000 | $ 8,026,000 | $ 9,937,000 | $ 8,472,000 | $ 7,536,000 | $ 41,589,084 | $ 33,970,440 | $ 29,666,524 | |
Income (loss) from operations before income taxes | 11,605,178 | 10,648,729 | 10,297,788 | |||||||||
Total assets | 168,421,517 | 45,196,697 | 168,421,517 | 45,196,697 | ||||||||
Goodwill | 12,921,185 | 10,387,198 | 12,921,185 | 10,387,198 | 10,387,198 | $ 10,387,198 | ||||||
Consolidation, Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total assets | (40,095,000) | (17,702,000) | (40,095,000) | (17,702,000) | (17,702,000) | |||||||
Simulations Plus, Inc. [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | 21,961,000 | 19,585,000 | 17,553,000 | |||||||||
Income (loss) from operations before income taxes | 7,374,000 | 7,752,000 | 7,533,000 | |||||||||
Total assets | 162,807,000 | 38,535,000 | 162,807,000 | 38,535,000 | 38,000,000 | |||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | |||||||
Capital expenditures | 111,000 | 39,000 | 65,000 | |||||||||
Capitalized software costs | 2,028,000 | 1,482,000 | 2,028,000 | 1,482,000 | 1,365,000 | |||||||
Depreciation and Amortization | 1,713,000 | 1,806,000 | 1,748,000 | |||||||||
Cognigen [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | 11,105,000 | 9,321,000 | 7,857,000 | |||||||||
Income (loss) from operations before income taxes | 1,770,000 | 1,481,000 | 1,902,000 | |||||||||
Total assets | 11,654,000 | 11,196,000 | 11,654,000 | 11,196,000 | 8,733,000 | |||||||
Goodwill | 4,789,000 | 4,789,000 | 4,789,000 | 4,789,000 | 4,789,000 | |||||||
Capital expenditures | 87,000 | 79,000 | 100,000 | |||||||||
Capitalized software costs | 40,000 | 114,000 | 40,000 | 114,000 | 625,000 | |||||||
Depreciation and Amortization | 349,000 | 364,000 | 401,000 | |||||||||
D I L Isym [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | 6,948,000 | 5,065,000 | 4,257,000 | |||||||||
Income (loss) from operations before income taxes | 1,744,000 | 1,416,000 | 863,000 | |||||||||
Total assets | 14,084,000 | 13,168,000 | 14,084,000 | 13,168,000 | 14,248,000 | |||||||
Goodwill | 5,598,000 | 5,598,000 | 5,598,000 | 5,598,000 | 5,598,000 | |||||||
Capital expenditures | 31,000 | 20,000 | 18,000 | |||||||||
Capitalized software costs | 124,000 | 172,000 | 124,000 | 172,000 | 155,000 | |||||||
Depreciation and Amortization | 600,000 | 580,000 | 572,000 | |||||||||
Lixoft [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | 1,575,000 | 0 | 0 | |||||||||
Income (loss) from operations before income taxes | 717,000 | |||||||||||
Total assets | 19,972,000 | 19,972,000 | ||||||||||
Goodwill | 2,534,000 | 2,534,000 | ||||||||||
Capital expenditures | 2,000 | |||||||||||
Capitalized software costs | 160,000 | 160,000 | ||||||||||
Depreciation and Amortization | 300,000 | |||||||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net Revenues | 41,589,000 | 33,970,000 | 29,667,000 | |||||||||
Income (loss) from operations before income taxes | 11,605,000 | 10,648,000 | 10,298,000 | |||||||||
Total assets | 168,422,000 | 45,197,000 | 168,422,000 | 45,197,000 | 43,279,000 | |||||||
Goodwill | 12,921,000 | 10,387,000 | 12,921,000 | 10,387,000 | 10,387,000 | |||||||
Capital expenditures | 231,000 | 138,000 | 183,000 | |||||||||
Capitalized software costs | $ 2,353,000 | $ 1,768,000 | 2,353,000 | 1,768,000 | 2,145,000 | |||||||
Depreciation and Amortization | $ 2,962,000 | $ 2,750,000 | $ 2,721,000 |
SEGMENT AND GEOGRAPHIC REPORT_4
SEGMENT AND GEOGRAPHIC REPORTING (Details - geographic) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 9,540,000 | $ 12,298,000 | $ 10,350,000 | $ 9,401,000 | $ 8,026,000 | $ 9,937,000 | $ 8,472,000 | $ 7,536,000 | $ 41,589,084 | $ 33,970,440 | $ 29,666,524 |
Simulations Plus, Inc. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 21,961,000 | 19,585,000 | 17,553,000 | ||||||||
Cognigen [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 11,105,000 | 9,321,000 | 7,857,000 | ||||||||
D I L Isym [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,948,000 | 5,065,000 | 4,257,000 | ||||||||
Lixoft [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,575,000 | 0 | 0 | ||||||||
North And South America [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 29,674,000 | 22,577,000 | 18,876,000 | ||||||||
North And South America [Member] | Simulations Plus, Inc. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 11,124,000 | 9,381,000 | 7,856,000 | ||||||||
North And South America [Member] | Cognigen [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 11,105,000 | 9,321,000 | 7,857,000 | ||||||||
North And South America [Member] | D I L Isym [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,057,000 | 3,875,000 | 3,163,000 | ||||||||
North And South America [Member] | Lixoft [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 1,388,000 | 0 | 0 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 5,827,000 | 5,829,000 | 5,276,000 | ||||||||
Europe [Member] | Simulations Plus, Inc. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 5,024,000 | 5,144,000 | 4,964,000 | ||||||||
Europe [Member] | Cognigen [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Europe [Member] | D I L Isym [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 646,000 | 685,000 | 312,000 | ||||||||
Europe [Member] | Lixoft [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 157,000 | 0 | 0 | ||||||||
Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 6,088,000 | 5,565,000 | 5,515,000 | ||||||||
Asia [Member] | Simulations Plus, Inc. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 5,812,000 | 5,060,000 | 4,733,000 | ||||||||
Asia [Member] | Cognigen [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Asia [Member] | D I L Isym [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | 246,000 | 505,000 | 782,000 | ||||||||
Asia [Member] | Lixoft [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Revenues | $ 30,000 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Apr. 02, 2020 | |
D I L Isym [Member] | Numerator | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Payment for acquisition | $ 1,704,000 | |||
Acquisition liabilities owed | 2,260,000 | |||
D I L Isym [Member] | Dilisym Employees [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Earn-out payments made | $ 587,000 | 664,506 | $ 1,599,534 | |
D I L Isym [Member] | Director [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Earn-out payments made | $ 10,000 | 11,346 | $ 27,312 | |
Lixoft [Member] | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Acquisition liabilities owed | $ 1,117,519 | |||
Lixoft [Member] | Numerator | ||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||
Payment for acquisition | 6,720,615 | |||
Acquisition liabilities owed | $ 947,220 | |||
Business acquisition, shares issued | 2,602,081 |
EMPLOYEE BENEFIT PLAN (Details
EMPLOYEE BENEFIT PLAN (Details Narrative) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Contribution by employer in benefit plan | $ 456,484 | $ 404,684 | $ 326,762 |
ACQUISITION_MERGER WITH SUBSI_3
ACQUISITION/MERGER WITH SUBSIDIARIES (Details - purchase price allocation) - USD ($) | 7 Months Ended | ||||
Apr. 02, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | Aug. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Estimated Goodwill acquired | $ 12,921,185 | $ 10,387,198 | $ 10,387,198 | $ 10,387,198 | |
Lixoft [Member] | |||||
Business Acquisition [Line Items] | |||||
Assets acquired, Including cash of $3,799,134 and accounts receivable of $629,481 | $ 5,006,892 | ||||
Developed Technologies Acquired | 8,010,000 | ||||
Estimated value of Intangibles assets acquired (Customer Lists, trade name etc.) | 4,160,000 | ||||
Estimated Goodwill acquired | 2,533,987 | $ 2,533,987 | $ 0 | $ 0 | $ 0 |
Liabilities Assumed | (1,117,519) | ||||
Total Consideration | $ 18,593,360 |
ACQUISITION_MERGER WITH SUBSI_4
ACQUISITION/MERGER WITH SUBSIDIARIES (Details - Proforma Information) - USD ($) | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Business Combinations [Abstract] | |||
Net Sales | $ 43,970 | $ 36,918 | $ 31,891 |
Net Income | $ 10,630 | $ 9,250 | $ 9,132 |
UNAUDTED QUARTERLY FINANCIAL DA
UNAUDTED QUARTERLY FINANCIAL DATA (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2020 | May 31, 2020 | Feb. 29, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 9,540,000 | $ 12,298,000 | $ 10,350,000 | $ 9,401,000 | $ 8,026,000 | $ 9,937,000 | $ 8,472,000 | $ 7,536,000 | $ 41,589,084 | $ 33,970,440 | $ 29,666,524 |
Gross Profit | 6,865,000 | 9,633,000 | 7,683,000 | 6,758,000 | 5,735,000 | 7,613,000 | 6,264,000 | 5,336,000 | 30,939,854 | 24,944,736 | 21,672,296 |
Net Income | $ 2,188,000 | $ 2,936,000 | $ 2,150,000 | $ 2,058,000 | $ 2,059,000 | $ 2,889,000 | $ 2,099,000 | $ 1,536,000 | $ 9,332,060 | $ 8,583,329 | $ 8,934,812 |
Earnings per share, Basic | $ 0.12 | $ 0.17 | $ 0.12 | $ 0.12 | $ 0.12 | $ 0.16 | $ 0.12 | $ 0.09 | $ 0.52 | $ 0.49 | $ 0.52 |
Earnings per share, Diluted | $ 0.11 | $ 0.16 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.16 | $ 0.12 | $ 0.09 | $ 0.50 | $ 0.48 | $ 0.50 |