SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Aug. 31, 2025

Accounting Policies [Abstract]

Schedule of Disaggregation of Revenue

The components of revenue for the fiscal years ended August 31, 2025, 2024, and 2023 were as follows:

	Years ended August 31,
(in thousands)	2025		2024		2023
Software licenses
Point in time	$	42,792	$	40,068	$	35,369
Over time	3,036		956		1,148
Services
Over time	33,351		28,989		23,060
Total revenues	$	79,179	$	70,013	$	59,577

Schedule of Accounts Receivable, Allowance for Credit Loss

The activity in the allowance for credit losses related to our trade receivables is summarized as follows:

	Years ended August 31,
(in thousands)	2025		2024		2023
Balance, beginning of period	$	149	$	46	$	12
Provision for credit losses	95		189		77
Write-offs	(57)		(86)		(43)
Balance, end of period	$	187	$	149	$	46

Schedule of Property and Equipment Estimated Useful Lives

Depreciation and amortization are calculated using the straight-line method over the estimated useful lives as follows:

Equipment	5 years
Computer equipment	3 to 7 years
Furniture and fixtures	5 to 7 years
Leasehold improvements	Shorter of the asset life or lease term

Property and equipment consisted of the following:

(in thousands)	August 31, 2025		August 31, 2024
Equipment	$	9	$	67
Computer equipment	1,435		1,272
Furniture and fixtures	3		56
Leasehold improvements	10		20
Construction in progress	—		—
Subtotal	1,457		1,415
Less accumulated depreciation	(577)		(603)
Total	$	880	$	812

Schedule of Lease, Cost

Supplemental information related to operating leases was as follows as of August 31, 2025 and 2024:

(in thousands)	2025			2024
ROU assets	$	407		$	1,027
Lease liabilities, current	$	206		$	475
Lease liabilities, long-term	$	410		$	531
Operating lease costs	$	475		$	503
Weighted-average remaining lease term	6.29 years			2.42 years
Weighted-average discount rate	3.98		%	5.46		%

Schedule of Goodwill

Below is a reconciliation of the changes in Goodwill carrying value per reportable segment:

(in thousands)	Software		Services		Total
Balance, August 31, 2023	$	3,598	$	9,323	$	12,921
Addition	34,197		48,960		83,157
Balance, August 31, 2024	$	37,795	$	58,283	$	96,078
Addition	—		—		—
Measurement period adjustment*	(290)		(439)		(729)
Impairments	(15,704)		(35,928)		(51,632)
Balance, August 31, 2025	$	21,801	$	21,916	$	43,717

*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 Software and Services reporting units.

Schedule of Finite-Lived Intangible Assets

The following table summarizes other intangible assets as of August 31, 2025:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Impairment		Net Book Value
Trade names	Indefinite	$	12,610	$	—	$	5,660	$	6,950
Covenants not to compete	Straight line 2 to 3 years	100		53		47		—
Other internal use software	Straight line 3 to 13 years	988		110		270		608
Customer relationships	Straight line 8 to 14 years	10,540		3,693		3,873		2,974
ERP	Straight line 15 years	2,528		543		621		1,364
		$	26,766	$	4,399	$	10,471	$	11,896

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 Software and Services reporting units of $4.9 million and $0.8 million, respectively, during the period ended May 31, 2025. Such charges are recorded in impairments on the Consolidated Statements of Operations and Comprehensive (Loss) Income.

During the third quarter of fiscal 2025, the Company recognized an impairment charge of $77.2 million. Subsequent to the quarter-end, the Company refined the allocation of this impairment between goodwill and indefinite-lived intangible assets as the valuation was finalized. The total impairment charge remains unchanged.

The following table summarizes other intangible assets as of August 31, 2024:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Net Book Value
Trade names	Indefinite	$	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

Schedule of Finite-lived Intangible Assets Amortization Expense

The estimated future amortization of finite-lived intangible assets for the next five fiscal years are as follows:

(in thousands)
Years Ending August 31,	Amount
2026	$	874
2027	$	844
2028	$	815
2029	$	380
2030	$	380

Schedule of Debt Securities, Available-for-Sale

The following tables summarize our short-term investments and cash equivalents as of August 31, 2025 and 2024:

	August 31, 2025
(in thousands)	Amortized cost		Unrealized gains		Unrealized losses		Fair value
Level 1:
Term deposits (due within one year)	$	3,500	$	—	$	—	$	3,500
Money Market	13,159		—		—		13,159
Total Level 1	16,659		—		—		16,659
Level 2:	—		—		—		—
Level 3:	—		—		—		—
Total securities	$	16,659	$	—	$	—	$	16,659

	August 31, 2024
(in thousands)	Amortized cost		Unrealized gains		Unrealized losses		Fair 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
Money Market	1,975		—		—		1,975
Total Level 1	11,923		—		(4)		11,919
Level 2:	—		—		—		—
Level 3:	—		—		—		—
Total securities	$	11,923	$	—	$	(4)	$	11,919

Schedule of 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 August 31, 2025	$	—

Schedule of Business Combination, Intangible Asset, Acquired, Finite-Lived and Indefinite-Lived

The following table summarizes intellectual property as of August 31, 2025:

(in thousands)	Amortization Period	Acquisition Value		Accumulated Amortization		Impairment		Net Book Value
Developed technologies–DILIsym acquisition	Straight line 9 years	$	2,850	$	2,610	$	—	$	240
Intellectual rights of Entelos Holding Company	Straight line 10 years	50		36		—		14
Developed technologies–Lixoft acquisition	Straight line 16 years	8,010		2,670		—		5,340
Developed technologies–Immunetrics acquisition	Straight line 5 years	1,080		477		—		603
Developed technologies–Pro-ficiency acquisition	Straight line 5 years	16,630		3,228		13,402		—
		$	28,620	$	9,021	$	13,402	$	6,197

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 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

The following table presents the details of intangible assets acquired.

(in thousands)	Estimated useful life	Amount
Indefinite-lived:
Trade names	Indefinite	$	1,800
Definite-lived:
Customer relationships	9 years	3,780
Developed technologies	5 years	1,080
Covenants not to compete	2 years	30
Total definite-lived intangible assets		4,890
Total intangible assets		$	6,690

The following table presents the details of intangible assets acquired.

	Estimated useful life	Amount
Indefinite-lived:
Trade names	Indefinite	$	8,400
Definite-lived:
Customer relationships	10 years	2,310
Developed technologies	5 years	16,630
Non-competes	3 years	70
Total definite-lived intangible assets		19,010
Total intangible assets		$	27,410

Schedule of Future Amortization Expenses

The estimated future amortization of intellectual property for the next five fiscal years is as follows:

(in thousands)
Years Ending August 31,	Amount
2026	$	988
2027	$	748
2028	$	703
2029	$	530
2030	$	528

Schedule of Earnings Per Share, Basic and Diluted

The components of basic and diluted earnings per share for the fiscal years ended August 31, 2025, 2024, and 2023 were as follows:

	Years ended August 31,
(in thousands)	2025		2024		2023
Numerator
Net (loss) income attributable to common shareholders	$	(64,718)	$	9,954	$	9,961
Denominator
Weighted-average number of common shares outstanding during the period	20,101		19,987		20,075
Dilutive effect of stock options	—		314		390
Common stock and common-stock equivalents used for diluted earnings per share	20,101		20,301		20,465