v3.25.2
SIGNIFICANT ACCOUNTING POLICIES (Tables)
 9 Months Ended
May 31, 2025
Accounting Policies [Abstract]  
Disaggregation of Revenue
The components of revenue for the three and nine months ended May 31, 2025, and May 31, 2024, respectively, were as follows:
Three Months EndedNine Months Ended
(in thousands)May 31, 2025May 31, 2024May 31, 2025May 31, 2024
Software licenses
Point in time$11,974 $11,678 $34,505 $30,353 
Over time641 230 2,309 758 
Services   
Over time7,748 6,636 24,905 20,238 
Total revenues$20,363 $18,544 $61,719 $51,349 
Accounts Receivable, Allowance for Credit Loss
The activity in the allowance for credit losses related to our accounts receivable is summarized as follows:
Three Months EndedNine Months Ended
(in thousands)May 31, 2025May 31, 2024May 31, 2025May 31, 2024
Balance, beginning of period$179 $37 $149 $46 
Provision for credit losses92 112 114 103 
Write-offs(16)— (8)— 
Balance, end of period$255 $149 $255 $149 
Property and Equipment Estimated Useful Lives Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows:
Equipment5 years
Computer equipment
3 to 7 years
Furniture and fixtures
5 to 7 years
Leasehold improvementsShorter of the asset life or lease term
Schedule of Goodwill
The below is a reconciliation of Goodwill for the nine months ended May 31, 2025:
(in thousands)Software Services Total
Balance, August 31, 2024$37,795 $58,283 $96,078 
Addition— — — 
Measurement period adjustment*(290)(439)(729)
Impairments(15,133)(36,729)(51,862)
Balance, May 31, 2025$22,372 $21,115 $43,487 
*The Company had measurement period adjustments due to additional knowledge gained since June 11, 2024. The adjustments included a net working capital & excess cash settlement ($0.2 million) and deferred taxes related to the Pro-ficiency acquisition ($1.0 million). These have been allocated to the ALI/MC Software and Services reporting units.
Schedule of Finite-Lived Intangible Assets
The following table summarizes other intangible assets as of May 31, 2025:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		ImpairmentNet Book Value
Trade namesIndefinite$12,610 $— $5,430 $7,180 
Covenants not to compete
Straight line 2 to 3 years
100 53 47 — 
Other internal use software
Straight line 3 to 13 years
977 96 270 611 
Customer relationships
Straight line 8 to 14 years
10,540 3,487 3,873 3,180 
ERP
Straight line 15 years
2,528 510 621 1,397 
$26,755 $4,146 $10,241 $12,368 
The Company reviews indefinite-lived intangible assets, consisting of trade names in accordance with ASC 350 Intangibles - Goodwill and other, for impairment annually or when an event occurs that may indicate potential impairment. In connection with the identified triggering event as of May 31, 2025, the Company performed, prior to the goodwill impairment test, a quantitative assessment of its indefinite-lived assets by comparing discounted future cash flows to the net carrying value of the underlying assets, and concluded that its indefinite-lived intangible assets were impaired. The Company recorded impairment charges for its indefinite lived intangible assets for its ALI/MC Software and QSP Software reporting units of $4.6 million and $0.9 million, respectively, during the period ended May 31, 2025. Such charges are recorded in Impairments on the condensed consolidated statements of operations and comprehensive (loss) income.
The Company accounts for the impairment and disposition of long-lived assets in accordance with ASC 360, Property, Plant, and Equipment. Long-lived assets to be held and used are reviewed for events or changes in circumstances that indicate that their carrying value may not be recoverable. The Company measures recoverability by comparing the carrying amount of an asset to the expected future undiscounted net cash flows generated by the asset. If the Company determines that the asset may not be recoverable, or if the carrying amount of an asset exceeds its estimated future undiscounted cash flows, it recognizes an impairment charge to the extent of the difference between the fair value and the asset's carrying amount. In connection with the identified triggering event as of May 31, 2025, the Company performed, prior to the goodwill impairment test, a quantitative assessment of its long-lived assets and concluded that its long-lived assets were impaired at certain reporting units. The Company recorded impairment charges for its long-lived assets for its PBPK Services, QSP Services, ALI/MC Software, and MC Services reporting units of $0.3 million, $2.2 million, $15.7 million and $1.7 million, respectively, during the period ended May 31, 2025. Such charges are recorded in Impairments on the condensed consolidated statements of operations and comprehensive (loss) income. No impairment losses were recorded for the three and nine months ended May 31, 2024.
The following table summarizes other intangible assets as of August 31, 2024:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book Value
Trade namesIndefinite$12,610 $— $12,610 
Covenants not to compete
Straight line 2 to 3 years
100 23 77 
Other internal use software
Straight line 3 to 13 years
608 47 561 
Customer relationships
Straight line 8 to 14 years
10,540 2,726 7,814 
ERP
Straight line 15 years
2,529 381 2,148 
$26,387 $3,177 $23,210 
Finite-lived Intangible Assets Amortization Expense
Estimated future amortization of finite-lived intangible assets for the next five fiscal years are as follows:
(in thousands)
Years Ending August 31,
Amount
Remainder of fiscal year 2025$140 
2026$560 
2027$551 
2028$524 
2029$524 
Debt Securities, Available-for-Sale
The following tables summarize our short-term investments as of May 31, 2025, and August 31, 2024:
May 31, 2025
(in thousands)Amortized costUnrealized gainsUnrealized lossesFair value
Level 1:
Term deposits (due within one year)$1,500 $— $— $1,500 
Money Market10,043 — — 10,043 
Total Level 111,543 — — 11,543 
Level 2:— — — — 
Level 3:— — — — 
Total available-for-sale securities$11,543 $— $— $11,543 
August 31, 2024
(in thousands)Amortized costUnrealized gainsUnrealized lossesFair value
Level 1:
Term deposits (due within one year)$1,500 $— $— $1,500 
Corporate debt securities (due within one year)8,448 — (4)8,444 
Total Level 19,948 — (4)9,944 
Level 2:— — — — 
Level 3:— — — — 
Total available-for-sale securities$9,948 $— $(4)$9,944 
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
The following is a reconciliation of contingent consideration at fair value:
(in thousands)Amount
Contingent consideration at August 31, 2024$640 
Contingent consideration payment— 
Change in fair value of contingent consideration(640)
 Contingent consideration at May 31, 2025$— 
Business Combination, Intangible Asset, Acquired, Finite-Lived and Indefinite-Lived
The following table summarizes intellectual property as of May 31, 2025:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		ImpairmentNet Book
Value
Developed technologies–DILIsym acquisition
Straight line 9 years
$2,850 $2,531 $— $319 
Intellectual rights of Entelos Holding Company
Straight line 10 years
50 34 — 16 
Developed technologies–Lixoft acquisition
Straight line 16 years
8,010 2,538 — 5,472 
Developed technologies–Immunetrics acquisition
Straight line 5 years
1,080 423 — 657 
Developed technologies–Pro-ficiency acquisition
Straight line 5 years
16,630 3,228 13,402 — 
$28,620 $8,754 $13,402 $6,464 
In connection with the identified triggering event as of May 31, 2025, the Company performed, prior to the goodwill impairment test, a quantitative assessment of its long-lived assets and concluded that its long-lived assets were impaired at certain reporting units. We measure recoverability by comparing the carrying amount of an asset to the expected future undiscounted net cash flows generated by the asset. If we determine that the asset may not be recoverable, or if the carrying amount of an asset exceeds its estimated future undiscounted cash flows, we recognize an impairment charge to the extent of the difference between the fair value and the asset's carrying amount. Developed technologies related to the Pro-ficiency acquisition were determined to be impaired. Such charges of $13.4 million are recorded in Impairments on the condensed consolidated statements of operations and comprehensive (loss) income.
The following table summarizes intellectual property as of August 31, 2024:
(in thousands)Amortization
Period		Acquisition
Value		Accumulated
Amortization		Net Book
Value
Developed technologies–DILIsym acquisition
Straight line 9 years
$2,850 $2,294 $556 
Intellectual rights of Entelos Holding Company
Straight line 10 years
50 30 20 
Developed technologies–Lixoft acquisition
Straight line 16 years
8,010 2,173 5,837 
Developed technologies–Immunetrics acquisition
Straight line 5 years
1,080 261 819 
Developed technologies–Pro-ficiency acquisition
Straight line 5 years
16,630 732 15,898 
$28,620 $5,490 $23,130 
Schedule of Future Amortization Expenses
Estimated future amortization of intellectual property for the next five fiscal years are as follows:
(in thousands)
Years Ending August 31,
Amount
Remainder of fiscal year 2025$253 
2026$936 
2027$696 
2028$651 
2029$476 
Schedule of Earnings Per Share, Basic and Diluted The components of basic and diluted earnings per share for the three and nine months ended May 31, 2025, and May 31, 2024, were as follows:
Three Months EndedNine Months Ended
(in thousands)May 31, 2025May 31, 2024May 31, 2025May 31, 2024
Numerator
Net (loss) income attributable to common shareholders$(67,317)$3,137 $(64,037)$9,111 
Denominator
Weighted-average number of common shares outstanding during the period20,113 19,995 20,092 19,972 
Dilutive effect of stock options— 438 — 352 
Common stock and common-stock equivalents used for diluted earnings per share20,113 20,433 20,092 20,324