8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

November 13, 2019

(Date of the earliest event reported)

Simulations Plus, Inc.

(Exact name of registrant as specified in its charter)

California	001-32046	95-4595609
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

42505 10^th Street West, Lancaster, California 93534-7059

(Address of principal executive offices) (Zip Code)

661-723-7723

Registrant's telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14z-12 under Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company □

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Item 8.01 Other Events

On November 13, 2019, Simulations Plus, Inc., a California corporation (the "Company"), issued a press release announcing financial results for its fourth quarter and fiscal year ended August 31, 2019. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

On November 13, 2019, Simulations Plus, Inc., a California corporation (the "Company"), held an investor conference call reporting its financial results for its fourth quarter and fiscal year ended August 31, 2019. The PowerPoint slides, which were used for this Investor Conference Call, are attached herein as exhibit 99.2 to this Current Report on Form 8-K.

The information contained in this Current Report on Form 8-K shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. The information set forth in this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information in this report on Current Report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

This report on Form 8-K (the "Report"), including the disclosures set forth herein, contains certain forward-looking statements that involve substantial risks and uncertainties. When used herein, the terms "anticipates," "expects," "estimates," "believes" and similar expressions, as they relate to us or our management, are intended to identify such forward-looking statements.

Forward-looking statements in this Report or hereafter, including in other publicly available documents filed with the Securities and Exchange Commission (the "Commission"), reports to the stockholders of Simulations Plus, Inc., a California corporation (the "Company" or "us," "our" or "we") and other publicly available statements issued or released by us involve known and unknown risks, uncertainties and other factors which could cause our actual results, performance (financial or operating) or achievements to differ from the future results, performance (financial or operating) or achievements expressed or implied by such forward-looking statements. Such future results are based upon management's best estimates based upon current conditions and the most recent results of operations. These risks include, but are not limited to, the risks set forth herein and in such other documents filed with the Commission, each of which could adversely affect our business and the accuracy of the forward-looking statements contained herein. Our actual results, performance or achievements may differ materially from those expressed or implied by such forward-looking statements.

Item 9.01 Financial Statements and Exhibits

(d)       Exhibits

99.1 Press release issued on November 13, 2019.

99.2 PowerPoint presentation at the Investor Conference Call on November 13, 2019.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	SIMULATIONS PLUS, INC.
Dated: November 13, 2019	By: /s/ John R. Kneisel
	John R. Kneisel
	Chief Financial Officer

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EX-99.1

EXHIBIT 99.1

For Further Information:

Simulations Plus, Inc.

42505 10^th Street West

Lancaster, CA 93534-7059

CONTACT:
Simulations Plus Investor Relations	Hayden IR
Ms. Renee Bouche	Mr. Cameron Donahue
661-723-7723	651-653-1854
renee@simulations-plus.com	cameron@haydenir.com

For Immediate Release:

November 13, 2019

Simulations Plus Reports FY2019 and Fourth Quarter FY2019 Financial Results

Full-Year Revenue Increased 14.5% to $34 Million

Fourth Quarter Revenue Up 20.0% to $8 Million

LANCASTER, CA, November 13, 2019 – Simulations Plus, Inc. (Nasdaq: SLP), the leading provider of modeling and simulation solutions for the pharmaceutical, biotechnology, chemicals, and consumer goods industries, today reported financial results for its 2019 fiscal year (FY19) and fourth quarter (4Q19) ended August 31, 2019.

Full Year FY19 highlights compared with Full Year FY18:

· Revenues were $34.0 million, up 14.5% over $29.7 million in FY18

· Gross profit was up 15.1%, or $3.3 million, to $24.9 million, from $21.7 million in FY18

· SG&A was $11.8 million, an increase of $2.2 million, or 23.1%, over $9.6 million

· Total R&D expenditures were $4.3 million, an increase of $363,000, or 9.2% over $3.9 million

o For FY19, $1.8 million was capitalized and $2.5 million was expensed

o For FY18, $2.1 million was capitalized and $1.8 million was expensed

· Income before taxes increased 4.1% to $10.6 million, an increase of $418,000 over $10.1 million

· Net income decreased 3.9% to $8.6 million, a decrease of $351,000 from $8.9 million; FY18 included the one-time second-quarter tax benefit of $1.5 million

· Diluted earnings per share decreased 5.0% to $0.48 from $0.50. In FY18, the major change in diluted earnings per share came from the $1.5 million tax adjustment that accounted for an $0.08 increase in diluted earnings per share

· Cash was $11.4 million, an increase of $2.0 million, or 21.6%, from $9.4 million at the end of FY18.

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4QFY19 highlights compared with 4QFY18:

· Revenues increased 20.0% to $8.0 million, an increase of $1.3 million over $6.7 million

· Gross profit was up 25.6% to $5.7 million, an increase of $1.2 million over $4.6 million

· SG&A was $3.2 million, an increase of 42.6%, or $951,000, over $2.2 million

· Total R&D expenditures were $1.0 million, an increase of $89,000, or 9.4%, over $951,000

o For 4QFY19, $437,000 was capitalized and $603,000 was expensed

o For 4QFY18, $514,000 was capitalized and $437,000 was expensed

· Income before taxes increased 7.9% to $2.0 million, an increase of $146,000 over $1.8 million

· Net income increased 53.9% to $2.1 million, an increase of $721,000 over $1.3 million

· Earnings per fully diluted share increased $0.03 to $0.11 from $0.08

Shawn O’Connor, chief executive officer of Simulations Plus, said: “We delivered 20% fourth quarter growth, a strong end to a solid year of growth for Simulations Plus as full-year revenue grew 14.5%. This progress is due to targeted investments in our sales and marketing infrastructure, which enabled us to achieve an increased revenue growth rate in excess of historical levels while maintaining excellent gross margins and overall profitability. We enter our fiscal year 2020 with strong market momentum, high backlogs and successful progress across our key objectives to extend our sales and marketing resources and capacity to deliver our strategic consulting services efficiently to our clients.”

John Kneisel, chief financial officer of Simulations Plus, added: “Continued investment in our sales and marketing and supporting teams’ infrastructure and higher R&D spending led to increases in our operating expenses. We believe these investments will help us continue to accelerate our revenue growth. Of special note, in the fourth quarter we benefited from tax deductions from stock compensation expense as employees took advantage of the increased value of their options. Overall, we continue to generate solid profitability and free cash flow, even after paying our regular quarterly dividend.”

Investor Conference Call

The Company invites all interested persons to attend its conference call at 4:15 p.m. Eastern Time on November 13, 2019. The live webcast/teleconference will be accessible by registering here. Please dial in five to ten minutes prior to the scheduled start time. A live, listen-only webcast will also be available by dialing (914) 614-3221, and entering access code 588-454-748. A replay of the webcast will be available at the Investors section of the Simulations Plus website following the call.

About Simulations Plus, Inc.

Simulations Plus, Inc., is a premier developer of drug discovery and development software as well as a leading provider of both preclinical and clinical pharmacometric consulting services for regulatory submissions and quantitative systems pharmacology/toxicology models for drug-induced liver injury and nonalcoholic fatty liver disease. The company is a global leader focused on improving the ways scientists use knowledge and data to predict the properties and outcomes of pharmaceutical, biotechnology, and chemical agents. Our software is licensed to and used in the conduct of research by major pharmaceutical, biotechnology, chemical, consumer goods companies, and regulatory agencies worldwide. Our innovations in integrating new and existing science in medicinal chemistry, computational chemistry, artificial intelligence, pharmaceutical science, biology, and physiology into our software have made us the leading software provider for molecular property prediction from structure and physiologically based pharmacokinetic modeling and simulation. For more information, visit our website at www.simulations-plus.com.

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Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 – With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. Words like “believe,” “expect” and “anticipate” mean that these are our best estimates as of this writing, but that there can be no assurances that expected or anticipated results or events will actually take place, so our actual future results could differ significantly from those statements. Factors that could cause or contribute to such differences include, but are not limited to: our ability to maintain our competitive advantages, acceptance of new software and improved versions of our existing software by our customers, the general economics of the pharmaceutical industry, our ability to finance growth, our ability to continue to attract and retain highly qualified technical staff, our ability to identify and close acquisitions on terms favorable to the Company, and a sustainable market. Further information on our risk factors is contained in our quarterly and annual reports and filed with the U.S. Securities and Exchange Commission.

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--Tables follow –

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Simulations Plus, Inc.

Condensed Consolidated Balance Sheets

	August 31,		August 31,
	2019		2018
ASSETS
Current assets
Cash and cash equivalents	$	11,435,499	$	9,400,701
Accounts receivable, net of allowance for doubtful accounts of $0		5,026,558		5,514,528
Revenues in excess of billings		3,233,659		1,985,596
Prepaid income taxes		765,110		312,593
Prepaid expenses and other current assets		704,316		610,439
Total current assets		21,165,142		17,823,857
Long-term assets
Capitalized computer software development costs, net of accumulated amortization of $12,356,055 and $11,095,903		4,959,736		5,152,594
Property and equipment, net (note 4)		341,145		335,224
Intellectual property, net of accumulated amortization of $3,948,750 and $3,019,584		5,026,249		5,905,416
Other intangible assets net of accumulated amortization of $1,210,000 and $852,500		3,280,000		3,637,500
Goodwill		10,387,198		10,387,198
Other assets		37,227		37,227
Total assets	$	45,196,697	$	43,279,016
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	204,075	$	351,605
Accrued payroll and other expenses		1,639,038		1,152,176
Current portion - Contracts payable (note 5)		1,761,028		2,556,644
Billings in excess of revenues		798,549		384,603
Deferred revenue		380,787		381,928
Total current liabilities		4,783,477		4,826,956
Long-term liabilities
Deferred income taxes,net		2,731,616		3,195,139
Payments due under Contracts payable (note 5)		–		3,334,296
Total liabilities		7,515,093		11,356,391
Commitments and contingencies (note 6)
Shareholders' equity (note 7)
Preferred stock, $0.001 par value 10,000,000 shares authorized no shares issued and outstanding		–		–
Common stock, $0.001 par value 50,000,000 shares authorized 17,591,834 and 17,416,445 shares issued and outstanding		7,595		7,417
Additional paid-in capital		15,319,474		13,453,668
Retained earnings		22,354,535		18,461,540
Total shareholders' equity		37,681,604		31,922,625
Total liabilities and shareholders' equity	$	45,196,697	$	43,279,016

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Simulations Plus, Inc.

Condensed Consolidated Statements of Operations

	Three months ended August 31,					Year ended August 31,
	2019		2018			2019			2018
	(unaudited)		(unaudited)
Revenues	$	8,025,895	$	6,687,959		$	33,970,440		$	29,666,524
Cost of revenues		2,290,813		2,120,165			9,025,704			7,994,228
Gross margin		5,735,082		4,567,794			24,944,736			21,672,296
Operating expenses
Selling, general, and administrative		3,182,238		2,231,446			11,796,027			9,583,852
Research and development		603,054		437,153			2,499,980			1,790,656
Total operating expenses		3,785,292		2,668,599			14,296,007			11,374,508
Income from operations		1,949,790		1,899,195			10,648,729			10,297,788
Other income (expense)
Interest income		13,225		8,808			33,522			27,122
Interest expense				(38,188	)		(109,078	)		(153,034	)
(Loss) income on currency exchange		23,769		(29,115	)		(16,697	)		(32,934	)
Total other income (expense)		36,994		(58,495	)		(92,253	)		(158,846	)
Income before provision for income taxes		1,986,784		1,840,700			10,556,476			10,138,942
(Provision) benefit for income taxes		72,443		(502,714	)		(1,973,147	)		(1,204,130	)
Net Income	$	2,059,227	$	1,337,986		$	8,583,329		$	8,934,812
Earnings per share
Basic	$	0.12	$	0.08		$	0.49		$	0.52
Diluted	$	0.11	$	0.08		$	0.48		$	0.50
Weighted-average common shares outstanding
Basic		17,549,636		17,265,976			17,492,258			17,328,707
Diluted		18,265,585		17,733,044			18,057,431			17,860,392

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Simulations Plus, Inc.

Condensed Consolidated Statements of Cash Flows

	Year ended August 31,
	2019			2018
Cash flows from operating activities
Net income	$	8,583,329		$	8,934,812
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		2,750,245			2,721,304
Change in value of contingent consideration		109,060			152,752
Stock-based compensation		1,077,837			709,083
Deferred income taxes		(299,098	)		(1,731,821	)
(Increase) decrease in
Accounts receivable		487,970			(1,465,803	)
Revenues in excess of billings		(1,248,063	)		(504,514	)
Prepaid income taxes		(452,517	)		149,850
Prepaid expenses and other assets		(93,877	)		(153,682	)
Increase (decrease) in
Accounts payable		(147,521	)		110,713
Accrued payroll and other expenses		436,862			168,883
Billings in excess of revenues		413,946			167,645
Accrued income taxes		0			–
Deferred revenue		(29,747	)		27,966
Net cash provided by operating activities		11,638,420			9,287,188
Cash flows used in investing activities
Purchases of property and equipment		(137,745	)		(183,291	)
Purchases of intellectual property		(50,000	)		–
Capitalized computer software development costs		(1,767,996	)		(2,145,429	)
Net cash used in investing activities		(1,955,741	)		(2,328,720	)
Cash flows used in financing activities
Payment of dividends		(4,197,055	)		(4,161,740	)
Payments on Contracts Payable		(4,238,973	)		(247,328	)
Proceeds from the exercise of stock options		788,147			635,583
Net cash used in financing activities		(7,647,881	)		(3,773,485	)
Net increase (decrease) in cash and cash equivalents		1,995,304			3,184,983
Cash and cash equivalents, beginning of year		9,400,701			6,215,718
Cash and cash equivalents, end of period	$	11,435,499		$	9,400,701
Supplemental disclosures of cash flow information
Income taxes paid	$	2,673,475.04		$	2,712,988

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EX-99.2

EXHIBIT 99.2

Q4FY2019 Investor Conference Call Shawn O’Connor, CEO John Kneisel, CFO November 13, 2019 (NASDAQ:SLP)

2 With the exception of historical information, the matters discussed in this presentation are forward - looking statements that involve a number of risks and uncertainties . The actual results of the Company could differ significantly from those statements . Factors that could cause or contribute to such differences include but are not limited to : continuing demand for the Company’s products, competitive factors, the Company’s ability to finance future growth, the Company’s ability to produce and market new products in a timely fashion, the Company’s ability to continue to attract and retain skilled personnel, and the Company’s ability to sustain or improve current levels of productivity . Further information on the Company’s risk factors is contained in the Company’s quarterly and annual reports and filed with the Securities and Exchange Commission . Safe Harbor Statement

Highlights • Strong revenue growth for the quarter and full year – 15% growth for the full year at high end of historical 10 - 15% range and comparable to 10% organic growth last year – 20% growth for the quarter reflects goal of moving to 15 - 20% consistent range • Software business steady consistent growth – Q4 growth at 21% made up for Q3 shortfall – Full year growth at 11% consistent with prior years • Consulting business revenue growth strong – 21 % yr / yr growth in consulting capacity – 19% revenue growth for quarter; 19% revenue growth for full year – Key new service business closures in each division • Key initiatives – Progress in each area – Increased investment in sales and marketing resources – Increased consulting service resources to support demand - driven growth – Increased international opportunities • 4 th quarter performance and results for the full year reflect strong market demand and the impact of key initiatives to accelerate beyond historical revenue growth rates profitably 3

Steady and Consistent Revenue Growth 4 Organic Revenue Growth accelerating to new 15 - 20% range $13.8 $14.9 $16.9 $18.5 $6.1 $9.2 $12.8 $15.5 $19.9 $24.1 $29.7 $34.0 2016 2017 2018 2019 12 Months Revenue $ in millions Software Consulting Key Highlights • Q4 FY2019 Financial Highlights – Revenue up 20% for the quarter; 15% for full year – Gross profit 71.5% Q4FY19 vs 68.3% Q4FY18 – Net income before taxes 24.8% Q4FY19 vs 27.5% Q4FY18 – EPS $0.1 1 Q4FY19 vs $0.08 Q4FY18 – Cash generated from operations during the quarter of ~$4.1M with cash on hand at end of quarter of $11.4M • Operational Highlights – Software revenue: 48% of total revenue, 11% yr / yr growth – Service revenue: 52% of total revenue, 19% yr / yr growth – 111 Employees (including 76 with advanced degrees) up 18% yr / yr (76% of that growth is billable consulting staff) $2.6 $2.9 $3.4 $3.8 $1.4 $3.3 $3.4 $4.2 $4.0 $6.2 $6.8 $8.0 16.4 17.4 18.4 19.4 Fourth Quarter Revenue $ in millions

Simulations Plus Division (Lancaster) 5 The genesis of the company… providing software, training and consulting services $13.6 $14.5 $15.7 $17.3 $0.9 $1.1 $1.8 $2.3 $14.5 $15.6 $17.5 $19.6 2016 2017 2018 2019 12 Months Revenue $ in millions Software Consulting Simulations Plus represented 52% of total revenue and 61% of EBITDA for Q4 FY2019 Simulations Plus represented 58% of total revenue and 71% of EBITDA for FY2019 Key Highlights • Q4 FY2019 Financial Highlights – Software revenue up 22% for the quarter; 10% for full year – Consulting revenue up 55% for the quarter; 24% for full year – Q4 Revenue breakdown: 61% Renewal; 22% New Licenses; 17% consulting – Renewal rates: 86% (accounts) and 94% (fees) – License Units (241) up 14% yr / yr – 20 new commercial companies and 13 non - profit groups – Projects with 27 companies and 5 funded collaborations • Operational Highlights – New funded collaboration with clinical stage biotech partner to develop an intra - articular delivery model in GastroPlus – New funded collaboration agreement with a large pharmaceutical company to develop The Virtual Bioequivalence Trial Simulator Module for GastroPlus $2.5 $2.6 $2.9 $3.5 $0.2 $0.3 $0.4 $0.7 $2.7 $2.9 $3.3 $4.2 16.4 17.4 18.4 19.4 Fourth Quarter Revenue $ in millions

Key Highlights • Q4 FY2019 Financial Highlights – Revenue up 14% for the quarter and 19% for the year – 11 new projects initiated during quarter – 32 proposals outstanding with 23 companies at the start of 1QFY20 • Operational Highlights – Announced the promotion of Cognigen Founder to President of the division – Increased our number of consultants in EU to 3 – 50 total projects in the fiscal year, across 27 companies – Exit the year with approximately $6M in project backlog Cognigen Division (Buffalo) 6 A leading provider of population modeling and simulation services for the pharma and biotech industries $0.2 $0.2 $0.2 $0.2 $5.4 $7.1 $7.7 $9.1 $5.6 $7.3 $7.9 $9.3 2016 2017 2018 2019 12 Months Revenue $ in millions Software Consulting Cognigen represented 30% of total revenue and 18% of EBITDA for Q4 FY2019 Cognigen represented 27% of total revenue and 14% of EBITDA for FY2019 $0.07 $0.07 $0.08 $0.04 $1.2 $2.0 $2.1 $2.4 $1.3 $2.1 $2.2 $2.4 16.4 17.4 18.4 19.4 Fourth Quarter Revenue $ in millions

$1.0 $1.0 $3.3 $4.1 $4.3 $5.1 2018 2019 12 Months Revenue $ in millions Software Consulting DILIsym Division (RTP) 7 A leading provider of software products and services in QST and QSP Key Highlights • Q4 FY2019 Financial Highlights – Revenue up 13% for the quarter and 19% for the year – Revenue breakdown: 57% DILIsym software and projects; 12% IPFsym software; 15% NAFLDsym software and projects; 11% RENAsym grant; 5% Other – 7 active consortium DILIsym contracts – 15 active DILIsym projects; 2 NAFLDsym projects in process • Operational Highlights – Released NAFLDsym version 2A, a NAFLD/NASH disease modeling platform for licensing and consulting use – New funded collaboration agreement with a large pharmaceutical company for the development of a QSP platform for acute radiation syndrome DILIsym represented 18% of total revenue and 22% of EBITDA for Q4 FY2019 DILIsym represented 15% of total revenue and 15% of EBITDA for FY2019 $0.4 $0.3 $0.9 $1.1 $1.3 $1.4 18.4 19.4 Fourth Quarter Revenue $ in millions

Financial Results

9 Income Statement: 4QFY19 Versus 4QFY18 (in millions) Lancaster Buffalo North Carolina FY19 FY18 Diff % chg Net sales $ 4.2 $ 2.4 $ 1.4 $ 8.0 $ 6.7 $ 1.3 20.0% Gross profit $ 3.4 $ 1.3 $ 1.1 $ 5.7 $ 4.6 $ 1.2 25.6% Gross profit margin 80.8% 53.1% 75.3% 71.5% 68.3% 3.2% 4.6% SG&A $ 1.9 $ 0.9 $ 0.4 $ 3.2 $ 2.2 $ 0.9 42. 6 % R&D $ 0.4 $ 0.0 $ 0.2 0.6 $ 0.4 0.2 38.0% Total operating expenses $ 2.2 $ 0.9 $ 0.6 3.7 $ 2.7 1.1 41.8 % Income from operations $ 1.2 $ 0.4 $ 0.4 2.0 $ 1.9 0.1 2.7% Other income (expense) $ 0.0 $ 0.0 $ 0.0 0.0 $ (0.1) 0.1 - 163.2% Income before income taxes $ 1.2 $ 0.4 $ 0.4 2.0 $ 1.8 0.2 7.9% Net income $ 1.3 $ 0.4 $ 0.3 $ 2.1 $ 1.3 $ 0.8 53.9% Diluted earnings per share (in dollars) $ 0.11 $ 0.08 $ 0.03 49.4% EBITDA $ 1.7 $ 0.5 $ 0.6 $ 2.7 $ 2.6 $ 0.1 2.9 %

10 Income Statement: FY19 Versus FY18 (in millions) Lancaster Buffalo North Carolina FY19 FY18 Diff % chg Net sales $ 19.6 $ 9.3 $ 5.1 $ 34.0 $ 29.7 $ 4.3 14.5% Gross profit 16.3 5.0 3.7 24.9 21.7 3.3 15.1% Gross profit margin 83.3% 53.2% 72.7% 73.4% 73.1% 0.3% 0.5% SG&A $ 6.8 $ 3.4 $ 1.6 $ 11.8 9.6 $ 2.2 23.1% R&D 1.7 0.1 0.7 2.5 1.8 0.7 39.6% Total operating expenses 8.5 3.5 2.3 14.3 11.4 2.9 25.7% Income from operations 7.8 1.5 1.4 10.7 10.3 0.4 3.4% Other income (expense) (0.1) 0.0 0.0 (0.1) (0.2) 0.1 - 42.1% Income before income taxes 7.7 1.5 1.4 10.6 10.1 0.5 4.1% Net income $ 6.3 $ 1.3 $ 1.1 $ 8.6 $ 8.9 $ (0.3) - 3.9% Diluted earnings per share (in dollars) $ 0.48 $ 0.50 $ (0.02) - 5.0 % EBITDA $ 9.6 $ 1.8 $ 2.0 $ 13.4 $ 13.0 $ 0.4 3.1%

11 Consolidated Revenues: Fiscal Quarter ( in millions) $4.0 $4.6 $5.9 $3.7 $4.8 $5.2 $6.0 $4.0 $5.4 $5.7 $6.8 $6.3 $7.1 $7.4 $8.6 $6.7 $7.5 $8.5 $9.9 $8.0 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 $11 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019

12 Consolidated Income from Operations: Fiscal Quarter (in millions) $0.7 $1.5 $2.9 $0.8 $1.7 $1.7 $2.8 $1.0 $1.9 $1.8 $3.1 $1.4 $2.6 $2.4 $3.4 $1.9 $2.0 $2.7 $3.9 $2.1 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019

$0.5 $1.0 $1.9 $0.5 $1.1 $1.2 $1.9 $0.8 $1.4 $1.2 $2.1 $1.2 $1.7 $3.5 $2.4 $1.3 $1.5 $2.1 $2.9 $2.1 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019 $2.0 13 Note: 2Q18 $1.5M tax benefit of deferred tax adjustment Consolidated Net Income: Fiscal Quarter (in millions)

14 Consolidated Diluted Earnings Per Share: Fiscal Quarter $0.03 $0.06 $0.11 $0.03 $0.06 $0.07 $0.11 $0.05 $0.08 $0.07 $0.12 $0.06 $0.10 $0.19 $0.13 $0.07 $0.09 $0.12 $0.16 $0.11 $0.00 $0.02 $0.04 $0.06 $0.08 $0.10 $0.12 $0.14 $0.16 $0.18 $0.20 Q1 Q2 Q3 Q4 FY15 FY16 FY17 FY18 FY19 $0.11 Note: 2Q18 $0.08 tax benefit of deferred tax adjustment

15 Consolidated EBITDA: Fiscal Quarter (in millions) $1.2 $2.0 $3.3 $1.2 $2.2 $2.2 $3.3 $1.5 $2.5 $2.3 $3.6 $2.0 $3.2 $3.1 $4.1 $2.6 $2.8 $3.4 $4.6 $2.7 $0 $1 $2 $3 $4 $5 Q1 Q2 Q3 Q4 2015 2016 2017 2018 2019

Revenue by Region – YTD 2019 Europe 18 % North America 64 % Asia 18 % South America <1% Japan = 55% India = 17% China = 17% Other = 11% 16 A global and diversified base of revenue

17 Cash Position Remains Excellent (in millions) Over $30 million cash paid out over last five FYs $0.8 $0.8 $0.8 $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 $1.0 $1.0 $1.0 $1.1 $1.1 $1.1 $1.1 $1.1 $2.1 $0.8 $0.7 $0.8 $1.0 $5.0 $1.6 $1.0 $1.7 $5.8 $6.1 $6.4 $8.6 $7.2 $7.1 $8.8 $8.0 $8.8 $7.4 $8.2 $6.2 $7.0 $7.5 $7.2 $9.4 $9.4 $9.9 $10.3 $11.4 $12.6 Dividend Paid Acquisitions Cash on Hand Cash paid for DILIsym Earnout in 19.1 ($1.6) in Dec 2018 ($1.0M) * Chart covers period starting September 2014 . Cash paid for DILIsym earnout ($1.7M) Cash paid for Cognigen Final cash paid for Cognigen Cash paid for DILIsym Cash paid to TSRL Cash paid to TSRL Final cash paid to TSRL

18 Selected Consolidated Balance Sheet Items (in millions, except where indicated) August 31, 2019 August 31, 2018 Cash and cash equivalents $ 11.4* $ 9.4* Cash per share ( in Dollars ) $ 0.65 $ 0.54 Total current assets 21.2 17.8 Total assets 45.2 43.3 Total current liabilities 4.8 4.8 Total liabilities 7.5 11.4 Current ratio 4.42x 3.69x Shareholders’ equity 37.7 31.9 Total liabilities and shareholders’ equity 45.2 43.3 Shareholders’ equity per diluted share ( in Dollars ) $2.1 $1.79 * Cash as of November 11, 2019 ~$12.6 million.

1 No assurances can be made as the BOD makes its decision on a quarterly basis based on current financial condition and strateg ic plans Products & Services Software Portfolio • Modeling & simulation platform for drug R&D • Predictive software for >140 properties of chemical formulations • Analytical software for certain biological or disease states • Cloud - based web app for drug development lifecycle management Consulting Services • Provide multi - disciplinary modeling and simulation support Operating Divisions • Simulations Plus, Inc. • Cognigen • DILIsym Consistent Financial Results • > 10 years of consistent revenue growth • > 10 years of profitability • Cash generated from operations during FY2019 of $11.6 Million with cash on hand of $12.6 Million at 11/11/2019 • Dividend payout ratio of 49% 1. • Quarterly dividend of $0.06 per share 1 Customers and Market Pharmaceutical and biotech companies ranging from the largest in the world to a number of medium - sized and smaller companies in the U.S., Europe and Japan Corporate Information • The company was founded in 1996 and now has 111 employees* worldwide. • Primary offices located in Lancaster, CA; Buffalo, NY; and Raleigh, NC. * As of 8/31/2019 Simulations Plus Our mission is to improve the productivity of science - based research & development enterprises by delivering innovative modeling and simulation software and insightful consulting services 19

20 Thank you! https://www.linkedin.com/company/simulations - plus https://www.linkedin.com/company/cognigen https://www.linkedin.com/company/dilisym