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CONTRACTS PAYABLE | 9 Months Ended
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May 31, 2021
Other Liabilities Disclosure [Abstract] |
CONTRACTS PAYABLE | NOTE 6: CONTRACTS PAYABLE DILIsym Acquisition Liabilities: On June 1, 2017, we acquired DILIsym. The agreement provided for a working capital adjustment, an eighteen-month $1.0 million holdback provision against certain representations and warranties, and an earnout agreement of up to an additional $5.0 million in earnout payments based on earnings over three years following acquisition. The earnout liability has been recorded at an estimated fair value. Payments under the earnout liability started in fiscal year 2019. In September 2018, $1.6 million was paid out under the first earnout payment, a second earnout payment was made in August 2019 in the amount of $1.7 million. The final payment of $1.8 million was paid in August 2020. In addition, no claims were made against the holdback and the $1.0 million holdback provision was released eighteen months after June 1, 2017. Lixoft Acquisition Liabilities: On April 1, 2020, we acquired Lixoft. The agreement provided for a 24-month $2.0 million holdback provision against certain representations and warrantees, comprised of $1.3 million of cash and shares of stock valued at $667 thousand 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 earnout payments of up to $5.5 million (two-thirds cash and one-third newly issued, unregistered shares of our common stock). The former shareholders of Lixoft can earn up to $2.0 million the first year and $3.5 million in year two. In June 2021, $2.0 million was paid to former Lixoft shareholder under the first earnout payment. As of May 31, 2021 and August 31, 2020 the following liabilities have been recorded:
Schedule of Liabilities |  |  |  |  |  |  |  |
(in thousands) |  | May 31, 2021 |  |  | August 31, 2020 |
Holdback liability |  | $ | 1,333 |  |  | $ | 1,333 |
Earnout liability |  |  | 5,095 |  |  |  | 4,731 |
Sub total |  | $ | 6,428 |  |  | $ | 6,064 |
Less: current portion |  |  | 3,333 |  |  |  | 2,000 |
Long-term portion |  | $ | 3,095 |  |  | $ | 4,064 |

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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=120391452&loc=d3e13212-122682 + Details
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