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SEGMENT REPORTING
 12 Months Ended
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 Profit36,176 10,045 46,221 
Gross Margin79 %30 %58 %
Less:
Research and Development6,884 
Sales and Marketing11,904 
General and administrative (2)20,941 
Impairments77,221 
Loss from operations(70,729)
Add:
Interest income and other, net722 
Change in value of contingent consideration640 
Gain (loss) on disposal of fixed assets(23)
Income (loss) on currency exchange13 
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 Profit34,546 8,605 43,151 
Gross Margin84 %30 %62 %
Less:
Research and Development5,754 
Sales and Marketing8,915 
General and administrative (2)22,351 
Income from operations6,131 
Add:
Interest income and other, net4,375 
Change in value of contingent consideration1,639 
Gain (loss) on disposal of fixed assets(120)
Income (loss) on currency exchange386 
Income before income taxes12,411 
(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 Profit32,890 15,057 47,947 
Gross Margin90 %65 %80 %
Less:
Research and Development4,504 
Sales and Marketing6,558 
General and administrative (2)27,660 
Impairments500 
Income from operations8,725 
Add:
Interest income and other, net4,131 
Change in value of contingent consideration(680)
Gain (loss) on disposal of fixed assets(6)
Income (loss) on currency exchange(475)
Income before income taxes11,695 
(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, 2025August 31, 2024August 31, 2023
GastroPlus$22,091 $21,828 $20,786 
MonolixSuite TM9,361 8,242 6,895 
ADMET Predictor7,716 7,357 6,970 
Other Software6,660 3,597 1,866 
Total Software45,828 41,024 36,517 
PKPD Services13,049 12,422 10,463 
Medical Communications8,116 1,124 — 
QSP/QST Services6,536 8,892 5,677 
PBPK Services5,650 6,551 6,920 
Total Services33,351 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)202520242023
$% of total*$% of total $% of total
Americas$57,701 73 %$50,473 72 %$40,817 69 %
EMEA14,192 18 %14,072 20 %11,713 20 %
Asia Pacific7,286 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.