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SEGMENT REPORTING | 12 Months Ended
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Aug. 31, 2025
Segment Reporting [Abstract] |
SEGMENT REPORTING | SEGMENT REPORTING The Company applies ASC 280, Segment Reporting, in determining reportable segments. We define our reportable segments based on the way the chief operating decision maker (“CODM”), which is our Chief Executive Officer, manages the operations for purposes of allocating resources and assessing segment performance. Our reportable segments include the following: •Software: Supports pharmaceutical research, development, and commercialization through simulation, modeling, and AI-driven prediction. Its main products include GastroPlus®, ADMET Predictor®, and MonolixSuite™, along with tools like DDDPlus™, MembranePlus™, DILIsym®, and others for disease modeling and training. The company also advances partnerships with institutions like the FDA, NIEHS, PAS, and SACF to drive innovation in virtual drug testing, chemical safety, and AI-enabled discovery. •Services: Advanced consulting services across the drug development lifecycle. Its scientists and engineers specialize in pharmacokinetics, pharmacodynamics, drug modeling, and regulatory strategy, supporting clients from discovery through clinical development. The CODM reviews revenue and gross profit to evaluate current-period performance versus budget and prior periods at each reportable segment and assesses management performance for purposes of annual incentive compensation. Gross profit is defined as revenue less cost of revenue incurred by the segment. No operating segments have been aggregated to form the reportable segments. The Company does not allocate assets at the reportable segment level, as these are managed on an entity-wide group basis and, accordingly, the Company does not report asset information by segment. The Company does not allocate operating expenses (R&D, S&M, and G&A) that are managed on an entity-wide group basis and, accordingly, the Company does not allocate and report operating expenses at a segment level. There are no intersegment revenue transactions between the Company’s segments. Other segment items for each segment primarily include depreciation, income tax expense, and other income not reviewed by the CODM at the segment level. These are not allocated to segments and are presented below segment gross profit. There are no differences in measurement between the segment profit measure used by CODM and consolidated (loss) income before income taxes. The following schedule reconciles the total of reportable segments’ gross profit and significant expenses to consolidated income (loss) before income taxes.
|  | Year ended August 31, 2025
(in thousands) |  | Software |  | Services |  | Total
Revenue |  | $ | 45,828 |  |  | $ | 33,351 |  |  | $ | 79,179 |
Less: |  |  |  |  |  |
Cost of revenue (1) |  | 9,652 |  |  | 23,306 |  |  | 32,958 |
Gross Profit |  | 36,176 |  |  | 10,045 |  |  | 46,221 |
Gross Margin |  | 79 | % |  | 30 | % |  | 58 | %
Less: |  |  |  |  |  |
Research and Development |  |  |  |  |  | 6,884 |
Sales and Marketing |  |  |  |  |  | 11,904 |
General and administrative (2) |  |  |  |  |  | 20,941 |
Impairments |  |  |  |  |  | 77,221 |
Loss from operations |  |  |  |  |  | (70,729) |
Add: |  |  |  |  |  |
Interest income and other, net |  |  |  |  |  | 722 |
Change in value of contingent consideration |  |  |  |  |  | 640 |
Gain (loss) on disposal of fixed assets |  |  |  |  |  | (23) |
Income (loss) on currency exchange |  |  |  |  |  | 13 |
Income (loss) before income taxes |  |  |  |  |  | (69,377) |
(1) Cost of revenue includes $6.7 million of amortization within our Software reportable segment. (2) General and administrative includes $0.3 million of depreciation and $1.2 million of amortization, respectively.
|  | Year ended August 31, 2024
(in thousands) |  | Software |  | Services |  | Total
Revenue |  | $ | 41,024 |  |  | $ | 28,989 |  |  | $ | 70,013 |
Less: |  |  |  |  |  |
Cost of revenue (1) |  | 6,478 |  |  | 20,384 |  |  | 26,862 |
Gross Profit |  | 34,546 |  |  | 8,605 |  |  | 43,151 |
Gross Margin |  | 84 | % |  | 30 | % |  | 62 | %
Less: |  |  |  |  |  |
Research and Development |  |  |  |  |  | 5,754 |
Sales and Marketing |  |  |  |  |  | 8,915 |
General and administrative (2) |  |  |  |  |  | 22,351 |
Income from operations |  |  |  |  |  | 6,131 |
Add: |  |  |  |  |  |
Interest income and other, net |  |  |  |  |  | 4,375 |
Change in value of contingent consideration |  |  |  |  |  | 1,639 |
Gain (loss) on disposal of fixed assets |  |  |  |  |  | (120) |
Income (loss) on currency exchange |  |  |  |  |  | 386 |
Income before income taxes |  |  |  |  |  | 12,411 |
(1) Cost of revenue includes $4.5 million of amortization within our Software reportable segment. (2) General and administrative includes $0.3 million of depreciation and $0.9 million of amortization, respectively.
|  | Year ended August 31, 2023
(in thousands) |  | Software |  | Services |  | Total
Revenue |  | $ | 36,517 |  |  | $ | 23,060 |  |  | $ | 59,577 |
Less: |  |  |  |  |  |
Cost of revenue (1) |  | 3,627 |  |  | 8,003 |  |  | 11,630 |
Gross Profit |  | 32,890 |  |  | 15,057 |  |  | 47,947 |
Gross Margin |  | 90 | % |  | 65 | % |  | 80 | %
Less: |  |  |  |  |  |
Research and Development |  |  |  |  |  | 4,504 |
Sales and Marketing |  |  |  |  |  | 6,558 |
General and administrative (2) |  |  |  |  |  | 27,660 |
Impairments |  |  |  |  |  | 500 |
Income from operations |  |  |  |  |  | 8,725 |
Add: |  |  |  |  |  |
Interest income and other, net |  |  |  |  |  | 4,131 |
Change in value of contingent consideration |  |  |  |  |  | (680) |
Gain (loss) on disposal of fixed assets |  |  |  |  |  | (6) |
Income (loss) on currency exchange |  |  |  |  |  | (475) |
Income before income taxes |  |  |  |  |  | 11,695 |
(1) Cost of revenue includes $3.0 million of amortization within our Software reportable segment. (2) General and administrative includes $0.3 million of depreciation and $0.6 million of amortization, respectively. Revenue, classified by significant product and service offerings, was as follows:
(in thousands) |  | August 31, 2025 |  | August 31, 2024 |  | August 31, 2023
GastroPlus |  | $ | 22,091 |  |  | $ | 21,828 |  |  | $ | 20,786 |
MonolixSuite TM |  | 9,361 |  |  | 8,242 |  |  | 6,895 |
ADMET Predictor |  | 7,716 |  |  | 7,357 |  |  | 6,970 |
Other Software |  | 6,660 |  |  | 3,597 |  |  | 1,866 |
Total Software |  | 45,828 |  |  | 41,024 |  |  | 36,517 |
PKPD Services |  | 13,049 |  |  | 12,422 |  |  | 10,463 |
Medical Communications |  | 8,116 |  |  | 1,124 |  |  | — |
QSP/QST Services |  | 6,536 |  |  | 8,892 |  |  | 5,677 |
PBPK Services |  | 5,650 |  |  | 6,551 |  |  | 6,920 |
Total Services |  | 33,351 |  |  | 28,989 |  |  | 23,060 |
Total |  | $ | 79,179 |  |  | $ | 70,013 |  |  | $ | 59,577 |
The Company allocates revenues to geographic areas based on the locations of its clients. Geographical revenues for the fiscal years ended August 31, 2025, 2024, and 2023, were as follows:
|  | Years ended August 31,
(in thousands) |  | 2025 |  | 2024 |  | 2023
|  | $ |  | % of total* |  | $ |  | % of total |  | $ |  | % of total
Americas |  | $ | 57,701 |  |  | 73 | % |  | $ | 50,473 |  |  | 72 | % |  | $ | 40,817 |  |  | 69 | %
EMEA |  | 14,192 |  |  | 18 | % |  | 14,072 |  |  | 20 | % |  | 11,713 |  |  | 20 | %
Asia Pacific |  | 7,286 |  |  | 9 | % |  | 5,468 |  |  | 8 | % |  | 7,047 |  |  | 12 | %
Total |  | $ | 79,179 |  |  | 100 | % |  | $ | 70,013 |  |  | 100 | % |  | $ | 59,577 |  |  | 100 | %
*Percentages may not add due to rounding As of August 31, 2025 and 2024, substantially all of the Company’s long-lived assets were located in the United States; long-lived assets located in any individual foreign country were not material.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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