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5. CONTRACTS PAYABLE | 12 Months Ended
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Aug. 31, 2018
Other Liabilities Disclosure [Abstract] |
CONTRACTS PAYABLE | NOTE 5: CONTRACTS PAYABLE TSRL Pursuant to the termination and non-assertion agreement with TSRL (See note 2), the Company paid TSRL $2,500,000 over a three-year period. The final payment of $1,000,000 was made in April 2017. Cognigen Acquisition Liability-Related Party On September 2, 2014, the Company acquired Cognigen Corporation (See note 13). As part of the consideration the Company agreed that within three business days following the two year anniversary of July 23, 2014 (the date of the Merger Agreement) and subject to any offsets, the Company will pay the former shareholders of Cognigen a total of $1,854,404, comprised of $720,000 of cash and the issuance of 170,014 shares of stock. The former shareholders of Cognigen are currently employed by the consolidated Company, one of whom served as the President of Simulations Plus, Inc. and Cognigen through the end of FY18. In July 2016 the final payment was made and the shares were issued. 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 next three years. The Earn-out liability has been recorded at an estimated fair value. Payments under the Earn-out liability will be due starting in FY 2018. In September 2018, $1,556,644 was paid out under the first earn-out payment, it is estimated that approximately $2,000,000 will be paid in FY 2020, and the remainder of the $5,000,000 Earn-out will be paid in FY 2021. As of August 31, 2018 and 2017 the following liabilities have been recorded:
|  | 2018 |  |  | 2017 |
Working Capital Liability |  | $ | – |  |  | $ | 247,328 |
Holdback Liability |  |  | 1,000,000 |  |  |  | 1,000,000 |
Earn-out Liability |  |  | 4,890,940 |  |  |  | 4,738,188 |
Sub Total |  | $ | 5,890,940 |  |  | $ | 5,985,516 |
Less: Current Portion |  |  | 2,556,644 |  |  |  | 247,328 |
Long-Term |  | $ | 3,334,296 |  |  | $ | 5,738,188 |

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- Definition The entire disclosure for other liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.20,24) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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