[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Q3 and YTD May 31, 2022, including balance sheets, operations, equity, and cash flows [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | (in thousands) | May 31, 2022 | August 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $144,854 | $139,313 | | **Total Assets** | $186,223 | $179,978 | | **Total Current Liabilities** | $5,915 | $11,574 | | **Total Liabilities** | $8,664 | $14,196 | | **Total Shareholders' Equity** | $177,559 | $165,782 | - Total assets increased to **$186.2 million** as of May 31, 2022, from **$180.0 million** at August 31, 2021, while total liabilities decreased significantly from **$14.2 million** to **$8.7 million**, primarily due to the settlement of contracts payable[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) | (in thousands) | Three Months Ended May 31, 2022 | Three Months Ended May 31, 2021 | Nine Months Ended May 31, 2022 | Nine Months Ended May 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $14,959 | $12,777 | $42,172 | $36,625 | | **Gross Profit** | $12,400 | $10,306 | $34,027 | $28,810 | | **Income from Operations** | $4,946 | $4,542 | $14,217 | $11,079 | | **Net Income** | $4,087 | $3,787 | $11,522 | $9,477 | | (per share) | Three Months Ended May 31, 2022 | Three Months Ended May 31, 2021 | Nine Months Ended May 31, 2022 | Nine Months Ended May 31, 2021 | | :--- | :--- | :--- | :--- | :--- | | **Diluted EPS** | $0.20 | $0.18 | $0.56 | $0.46 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | (in thousands) | Nine Months Ended May 31, 2022 | Nine Months Ended May 31, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,973 | $10,930 | | Net cash provided by investing activities | $2,002 | $865 | | Net cash used in financing activities | $(6,606) | $(2,191) | | **Net increase in cash and cash equivalents** | **$5,369** | **$9,604** | - For the nine months ended May 31, 2022, cash used in financing activities increased significantly to **$6.6 million**, primarily due to **$3.7 million** in payments on contracts payable related to the Lixoft acquisition and **$3.6 million** in dividend payments[16](index=16&type=chunk)[163](index=163&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed information on accounting policies, revenue recognition, segment reporting, shareholder equity, and commitments - As of May 31, 2022, the company had remaining performance obligations of approximately **$13.2 million**, with **89%** expected to be recognized as revenue over the next 12 months[25](index=25&type=chunk) - The company's goodwill balance of **$12.9 million** is attributed to the Cognigen, DILIsym, and Lixoft reporting units, with no impairment charges recognized during the period[48](index=48&type=chunk)[49](index=49&type=chunk) - In May 2022, the final earnout and holdback payments for the Lixoft acquisition were settled, resulting in the contracts payable liability being reduced to zero[53](index=53&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk) | (in thousands) | Nine Months Ended May 31, 2022 | Nine Months Ended May 31, 2021 | | :--- | :--- | :--- | | **Software Revenue** | $26,767 | $22,337 | | **Services Revenue** | $15,405 | $14,288 | | **Total Revenue** | **$42,172** | **$36,625** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial performance for Q3 and YTD FY2022, covering revenue, gross profit, operating expenses, liquidity, and cash flows [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q3 2022 revenue grew 17% to $15.0 million and net income rose 8% to $4.1 million, driven by software and services growth, with increased SG&A expenses Comparison of Three Months Ended May 31 | (in thousands) | 2022 | 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $14,959 | $12,777 | $2,182 | 17% | | **Gross Profit** | $12,400 | $10,306 | $2,094 | 20% | | **Net Income** | $4,087 | $3,787 | $300 | 8% | Comparison of Nine Months Ended May 31 | (in thousands) | 2022 | 2021 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $42,172 | $36,625 | $5,547 | 15% | | **Gross Profit** | $34,027 | $28,810 | $5,217 | 18% | | **Net Income** | $11,522 | $9,477 | $2,045 | 22% | - Selling, general, and administrative (SG&A) expenses increased by **$1.7 million (33%)** for the three months ended May 31, 2022, primarily due to higher personnel costs (**$537k**), travel costs (**$193k**), and insurance expense (**$154k**)[126](index=126&type=chunk) [Segment Results of Operations by Business Unit](index=30&type=section&id=Segment%20Results%20of%20Operations%20by%20Business%20Unit) Software revenue increased 16% in Q3 and 20% YTD, while Services revenue grew 19% in Q3 and 8% YTD, driven by specific product and consulting services - For the three months ended May 31, 2022, Software revenue grew **16%** YoY, largely due to a **$1.0 million** increase in GastroPlus sales[142](index=142&type=chunk)[145](index=145&type=chunk) - Services revenue for the third quarter increased by **19%** YoY, driven by growth in PBPK services (**$612k**) and PKPD services (**$557k**)[142](index=142&type=chunk)[146](index=146&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong financial position with $42.4 million cash, $80.1 million short-term investments, and $138.9 million working capital, completing Lixoft acquisition payments - As of May 31, 2022, the company had **$42.4 million** in cash and cash equivalents, **$80.1 million** in short-term investments, and **$138.9 million** in working capital[152](index=152&type=chunk) - In April and May 2022, the company settled the final holdback and earnout considerations for the Lixoft acquisition, paying a total of **$5.5 million** (**$3.6M cash**, **$1.9M stock**)[154](index=154&type=chunk) - Net cash provided by operating activities was **$10.0 million** for the nine months ended May 31, 2022, a slight decrease from **$10.9 million** in the prior year period[159](index=159&type=chunk)[160](index=160&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk exposure since the Annual Report on Form 10-K for fiscal year ended August 31, 2021 - As of May 31, 2022, there has been no material change in the company's exposure to market risk from that described in its most recent Annual Report[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of May 31, 2022, with no material changes to internal control over financial reporting - Based on an evaluation as of May 31, 2022, management concluded that the company's disclosure controls and procedures were effective[173](index=173&type=chunk) - No material changes to the company's internal controls over financial reporting were identified during the most recent fiscal quarter[174](index=174&type=chunk) [PART II. OTHER INFORMATION](index=36&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is not a party to any material legal proceedings and is unaware of any pending or threatened actions - The company is not a party to any material legal proceedings[84](index=84&type=chunk)[177](index=177&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors, highlighting new risks from economic uncertainty, geopolitical instability, and inflation's potential impact on cost structure - The company identifies new risks related to economic uncertainty and capital market disruption stemming from geopolitical instability, specifically the military conflict between Russia and Ukraine[179](index=179&type=chunk) - Inflation is cited as a potential risk that could adversely affect business and financial results by increasing the overall cost structure, which may not be fully offset by price increases[182](index=182&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports issuance of $1.9 million in unregistered common stock in April and May 2022 to former Lixoft shareholders for holdback and earnout payments - On April 1, 2022, the company released **20,326 unregistered shares** valued at **$0.7 million** as part of a holdback payment to former Lixoft shareholders[183](index=183&type=chunk) - On May 5, 2022, the company issued **23,825 unregistered shares** valued at **$1.2 million** as part of an earnout payment to former Lixoft shareholders[184](index=184&type=chunk) [Item 3. Defaults upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[186](index=186&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with Form 10-Q, including agreements and certifications by CEO and CFO as per Sarbanes-Oxley Act - The report includes certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[190](index=190&type=chunk)

Financial Data and Key Metrics Changes - The company reported a 17% revenue growth for the quarter, with software growth at 16% and services growth at 19% [6][23] - Earnings per share (EPS) increased to $0.20, and adjusted EBITDA margin was 42% [7][36] - Net income rose to $4.1 million compared to $3.8 million last year, reflecting a modest increase [35] Business Line Data and Key Metrics Changes - GastroPlus revenue increased by 19%, contributing 67% of software revenue for the quarter [8][25] - MonolixSuite revenue grew by 8% for the quarter and 31% year-to-date, with 10 new commercial clients signed [10] - ADMET Predictor saw a 7% revenue growth in the quarter, with a year-to-date increase of 14% [11] - PK/PD services revenue surged by 29%, reversing recent trends [12] - PBPK revenue increased by 83% for the quarter, reflecting deeper implementation of PBPK modeling [17] Market Data and Key Metrics Changes - The company experienced growth across all client segments, particularly in smaller customer accounts, indicating deeper adoption of modeling and simulation [6] - The services backlog grew by 34% during the quarter, indicating a positive trend in project demand [17] Company Strategy and Development Direction - The company aims to expand its geographic presence and enhance cross-selling initiatives to drive software business growth [6] - There is a focus on increasing the use of modeling and simulation solutions in drug development, with a notable rebound in the service business [44][45] - The company is evaluating M&A opportunities, noting a rationalization in valuations [20][64] Management's Comments on Operating Environment and Future Outlook - Management expressed a positive outlook for small pharma and biotech investments in modeling and simulation, despite funding challenges in the biotech segment [51][52] - The company is comfortable narrowing its revenue guidance range for the full year to $52 million to $53 million, anticipating software to represent approximately 60% of total revenue [18][19] Other Important Information - The company ended the quarter with cash and short-term investments of $122.5 million and no debt, indicating strong financial health [42] - The average revenue per customer dipped slightly but remains in line with historical trends [27] Q&A Session Summary Question: Market conditions in pharma and biotech - Management noted a positive visibility in small pharma and biotech investments in modeling and simulation, despite funding challenges [51][52] Question: Expectations for gross margins in Q4 - Management indicated that service margins have been flat, with software revenues expected to maintain a low-90s gross margin range [53][54] Question: Guidance for next year - Management expressed confidence in robust performance across both software and services, anticipating continued strength into the next fiscal year [60] Question: Softness in service bookings - Management clarified that any softness in the service side is due to seasonal vacation impacts rather than project cancellations [71] Question: Business development and acquisitions - Management stated that opportunities exist on both the software and services sides for potential acquisitions [75][76] Question: Strategy in Asia - The company is expanding its presence in Asia, hiring direct employees to support distributors and consulting opportunities [78]

Table of Contents SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended February 28, 2022 OR ☐ Transmission Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ______ to ______ Commission file number: 001-32046 Simulations Plus, Inc. (Name of registrant as specified in its charter) (State or other jurisdiction of Incorpo ...

Simulations Plus, Inc. (NASDAQ:SLP) Q2 2022 Earnings Conference Call April 6, 2022 5:00 PM ET Company Participants Brian Siegel - Hayden IR Shawn O'Connor - Chief Executive Officer Will Frederick - Chief Financial Officer Conference Call Participants Francois Brisebois - Oppenheimer Lucas Baranowski - Craig-Hallum Capital Group Operator Greetings, and welcome to the Simulations Plus Second Quarter Fiscal 2022 Financial Results Conference Call. At this time, all participants are listen-only mode. A brief que ...

1 | NASDAQ: SLP SH SimulationsPlus Earnings Call – Q2 FY22 April 6, 2022 1 Safe Harbor Statement With the exception of historical information, the matters discussed in this presentation are forwardlooking 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 c ...

Investor Presentation NASDAQ: SLP January 2022 1 1 | NASDAQ: SLP Safe Harbor Statement 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, the following: continuing demand for the Company's products, competitive factor ...

Financial Performance - Consolidated revenue increased by approximately $1.7 million or 16% to $12.4 million for the three months ended November 30, 2021, compared to $10.7 million for the same period in 2020[118] - Software-related revenue increased by $1.2 million or 19%, while service-related revenue increased by $566 thousand or 13% during the same period[119] - Gross profit rose by approximately $1.4 million or 17% to $9.7 million, driven by a 23% increase in software gross profit and a 6% increase in services gross profit[122] - Net income for the three months ended November 30, 2021, was $3.0 million, an increase of $547 thousand or 22% compared to the same period in 2020[118] - Overall gross margin percentage increased to 78% for the three months ended November 30, 2021, up from 77% for the same period in 2020[123] Operating Expenses - Total operating expenses increased by approximately $653 thousand or 13% to $5.9 million, with research and development costs rising by $221 thousand[125] Cash Flow and Investments - Net cash provided by operating activities was $3.6 million for the three months ended November 30, 2021, primarily from net income[138] - Net cash provided by investing activities during the three months ended November 30, 2021, was approximately $2.0 million, mainly due to proceeds from the sale of short-term investments of $16.1 million[140] - Cash used for investing activities during the three months ended November 30, 2020, was $25.9 million, primarily due to the purchase of short-term investments of $31.0 million[141] - As of November 30, 2021, the company had $41.7 million in cash and cash equivalents and $82.7 million in short-term investments[134] - Net cash provided by operating activities was $5.3 million for the three months ended November 30, 2020, primarily from net income of $2.5 million[139] Financial Position - Working capital as of November 30, 2021, was $130.3 million, with a current assets to current liabilities ratio of 14.6[144] - Total contractual obligations as of November 30, 2021, amounted to $5.895 million, with $5.044 million due within one year[146] - The effective tax rate increased to 21.5% for the three months ended November 30, 2021, up from 17.3% during the same period of the previous year[128] Market and Strategic Outlook - The company continues to seek opportunities for strategic acquisitions, which may require a substantial portion of cash reserves[136] - The company experienced a reduction in PKPD services during the year ended August 31, 2021, due to project disruptions and cancellations[147] - The company believes that the need for improved productivity in research and development will continue to drive the adoption of simulation and modeling tools[149] - The potential for growth in new markets, such as healthcare, remains uncertain, and the company will continue to explore these opportunities[150] - There has been no material change in the company's exposure to market risk from the previous reporting period[153]

Simulations Plus, Inc. (NASDAQ:SLP) Q1 2022 Results Conference Call January 6, 2022 5:00 PM ET Company Participants Shawn O'Connor - CEO Will Frederick - CFO Conference Call Participants Francois Brisebois - Oppenheimer Matt Hewitt - Craig-Hallum Dane Leone - Raymond James Mitra Ramgopal - Sidoti David Larsen - BTIG David Windley - Jefferies Brian Siegel - Hayden IR Operator Greetings, and welcome to the Simulations Plus First Quarter Fiscal 2022 Financial Results Conference Call. At this time, all particip ...

PART I [ITEM 1 – BUSINESS](index=5&type=section&id=ITEM%201%20%E2%80%93%20BUSINESS) Simulations Plus develops AI-driven drug discovery software and consulting services, with software comprising **60%** of FY2021 revenue - Simulations Plus, Inc. is a premier developer of modeling and simulation software for drug discovery and development, leveraging AI and machine learning, and offers consulting services from early discovery to regulatory submissions[25](index=25&type=chunk) Revenue Contribution by Segment (FY2019-FY2021) | Segment | 2021 | 2020 | 2019 | | :----------------- | :---- | :---- | :---- | | Simulations Plus, Inc. | 54% | 53% | 58% | | Cognigen | 23% | 26% | 27% | | DILIsym | 13% | 17% | 15% | | Lixoft | 10% | 4% | —% | | **Total** | **100%**| **100%**| **100%**| - The **software business** generated **60%** of total revenue in FY2021, while **consulting services** accounted for **40%**[36](index=36&type=chunk)[46](index=46&type=chunk) [OVERVIEW](index=5&type=section&id=OVERVIEW) Provides a general introduction to the company's business and operations [SEGMENT INFORMATION](index=5&type=section&id=SEGMENT%20INFORMATION) Details the company's business segments and their financial contributions [PRODUCTS](index=6&type=section&id=PRODUCTS) Describes the company's software and consulting service offerings [Software Business](index=7&type=section&id=Software%20Business) Focuses on the company's core software products and their applications [Consulting Services Business](index=9&type=section&id=Consulting%20Services%20Business) Outlines the range of consulting services provided by the company [SALES AND MARKETING](index=10&type=section&id=SALES%20AND%20MARKETING) Describes the company's strategies for sales and marketing its products and services [COMPETITION](index=10&type=section&id=COMPETITION) Analyzes the competitive landscape within the life science software and consulting market [TRAINING AND TECHNICAL SUPPORT](index=11&type=section&id=TRAINING%20AND%20TECHNICAL%20SUPPORT) Details the training and technical support services offered to customers [RESEARCH AND DEVELOPMENT](index=11&type=section&id=RESEARCH%20AND%20DEVELOPMENT) Outlines the company's investments and activities in research and development [CUSTOMERS](index=11&type=section&id=CUSTOMERS) Describes the company's customer base and target markets [SEASONALITY](index=12&type=section&id=SEASONALITY) Discusses any seasonal trends affecting the company's business operations [ENVIRONMENTAL MATTERS](index=12&type=section&id=ENVIRONMENTAL%20MATTERS) Addresses the company's approach to environmental considerations [HUMAN CAPITAL RESOURCES](index=12&type=section&id=HUMAN%20CAPITAL%20RESOURCES) Details the company's human capital management, including diversity and training [Diversity, Equity and Inclusion](index=12&type=section&id=Diversity%2C%20Equity%20and%20Inclusion) Details the company's initiatives and policies regarding diversity, equity, and inclusion [Training and Awareness Programs](index=12&type=section&id=Training%20and%20Awareness%20Programs) Describes the company's programs for employee training and awareness [Health & Safety](index=13&type=section&id=Health%20%26%20Safety) Outlines the company's policies and measures for employee health and safety [INTELLECTUAL PROPERTY AND OTHER PROPRIETARY RIGHTS](index=13&type=section&id=INTELLECTUAL%20PROPERTY%20AND%20OTHER%20PROPRIETARY%20RIGHTS) Describes the company's intellectual property and proprietary rights protection [EFFECT OF GOVERNMENT REGULATIONS](index=13&type=section&id=EFFECT%20OF%20GOVERNMENT%20REGULATIONS) Discusses the impact of government regulations on the company's operations [COMPANY WEBSITE](index=13&type=section&id=COMPANY%20WEBSITE) Provides information regarding the company's official website [ENVIRONMENTAL, SOCIAL, GOVERNANCE](index=14&type=section&id=ENVIRONMENTAL%2C%20SOCIAL%2C%20GOVERNANCE) Outlines the company's commitments and initiatives in environmental, social, and governance areas [COVID-19 Response](index=14&type=section&id=COVID-19%20Response) Details the company's actions and strategies in response to the COVID-19 pandemic [Environmental Matters](index=14&type=section&id=Environmental%20Matters) Discusses the company's specific environmental initiatives and impacts [Social Impact and Supporting our Communities](index=15&type=section&id=Social%20Impact%20and%20Supporting%20our%20Communities) Describes the company's social responsibility efforts and community engagement [Customer Privacy & Data Security](index=15&type=section&id=Customer%20Privacy%20%26%20Data%20Security) Outlines the company's policies and measures for protecting customer privacy and data security [Business Ethics](index=16&type=section&id=Business%20Ethics) Details the company's commitment to ethical business practices [Human Rights](index=16&type=section&id=Human%20Rights) States the company's stance and policies regarding human rights [Governance](index=16&type=section&id=Governance) Describes the company's corporate governance structure and practices [ITEM 1A – RISK FACTORS](index=17&type=section&id=ITEM%201A%20%E2%80%93%20RISK%20FACTORS) The company faces risks from epidemics, market competition, operational issues, financial vulnerabilities, and stock volatility - The COVID-19 pandemic has not materially adversely affected business operations as of the report date, but future impacts are uncertain and could disrupt supply chains and global economic conditions[103](index=103&type=chunk) - The company's ability to sustain or increase revenues depends on successfully entering new markets, expanding its customer base, and increasing revenue from existing customers[104](index=104&type=chunk) - The company faces strong competition in the life science market for modeling and simulation software from other software providers, larger technology companies, in-house development, academic institutions, and open-source initiatives[108](index=108&type=chunk) - Three customers accounted for a significant portion of revenue in fiscal year 2021 (**11%**, **4%**, and **3%**), making the company vulnerable to the loss of major customers[140](index=140&type=chunk) [Risk Factor Summary](index=17&type=section&id=Risk%20Factor%20Summary) Provides an overview of the key risks facing the company [Certain Risks Related to Our Business](index=19&type=section&id=Certain%20Risks%20Related%20to%20Our%20Business) Details specific risks inherent to the company's business model and operations [Certain Risks Related to Our Marketplace and Environment](index=20&type=section&id=Certain%20Risks%20Related%20to%20Our%20Marketplace%20and%20Environment) Addresses risks arising from the market and external operating environment [Certain Risks Related to Our Operations](index=23&type=section&id=Certain%20Risks%20Related%20to%20Our%20Operations) Covers operational risks, including software defects and global business complexities [Certain Risks Related to Ownership of Our Common Stock](index=33&type=section&id=Certain%20Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Discusses risks associated with owning the company's common stock [ITEM 1B – UNRESOLVED STAFF COMMENTS](index=36&type=section&id=ITEM%201B%20%E2%80%93%20UNRESOLVED%20STAFF%20COMMENTS) The company has no unresolved staff comments from the SEC - There are **no unresolved staff comments**[175](index=175&type=chunk) [ITEM 2 – PROPERTIES](index=36&type=section&id=ITEM%202%20%E2%80%93%20PROPERTIES) The company leases offices in multiple locations, with FY2021 rent expense of **$655 thousand** and a new Buffalo lease in 2021 - The company leases office spaces in Lancaster, CA (headquarters), Buffalo, NY, Research Triangle Park, NC, and Paris, France[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk) Rent Expense (FY2019-FY2021) | Fiscal Year | Rent Expense (in thousands) | | :---------- | :-------------------------- | | 2021 | $655 | | 2020 | $644 | | 2019 | $584 | - A new five-year lease agreement for a different property in Buffalo, NY, was signed in August 2021, with an expected move-in by November 2021[177](index=177&type=chunk) [ITEM 3 – LEGAL PROCEEDINGS](index=37&type=section&id=ITEM%203%20%E2%80%93%20LEGAL%20PROCEEDINGS) The company is not currently a party to any legal proceedings and is unaware of any pending legal actions - The company is **not a party to any legal proceedings** and is not aware of any pending legal proceedings[182](index=182&type=chunk) [ITEM 4 – MINE SAFETY DISCLOSURES](index=37&type=section&id=ITEM%204%20%E2%80%93%20MINE%20SAFETY%20DISCLOSURES) This item is not applicable to the company - Mine Safety Disclosures are **not applicable** to the registrant[183](index=183&type=chunk) PART II [ITEM 5 – MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=38&type=section&id=ITEM%205%20%E2%80%93%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) SLP common stock trades on Nasdaq, with **20.1 million** shares outstanding and **$0.06** quarterly dividends declared in FY2021 - The company's common stock (SLP) has traded on the **Nasdaq Global Select Market** since May 13, 2021[186](index=186&type=chunk) Common Stock Outstanding and Dividends Declared (FY2021) | Metric | Value | | :----------------------------------- | :------------- | | Shares Outstanding (Oct 25, 2021) | 20,147,714 | | Shareholders of Record (Oct 25, 2021)| 43 | | Quarterly Dividend per Share (FY2021)| $0.06 | | Total Dividends Declared (FY2021) | $4,811 thousand| - In June 2021, **11,540** unregistered shares, valued at **$666 thousand**, were issued as an earnout payment related to the Lixoft acquisition[191](index=191&type=chunk) [Market Information](index=38&type=section&id=Market%20Information) Provides details on the trading market for the company's common equity [Holders](index=38&type=section&id=Holders) Reports on the number of shareholders of record [Dividends](index=38&type=section&id=Dividends) Details the company's dividend policy and payments [Shareholder Return Performance Graph](index=39&type=section&id=Shareholder%20Return%20Performance%20Graph) Presents a graphical comparison of shareholder returns [Recent Sales of Unregistered Securities; Use of Proceeds from Registered Securities](index=39&type=section&id=Recent%20Sales%20of%20Unregistered%20Securities%3B%20Use%20of%20Proceeds%20from%20Registered%20Securities) Discloses recent issuances of unregistered securities [Repurchases](index=39&type=section&id=Repurchases) Provides information on any share repurchase programs [ITEM 6 – [RESERVED]](index=40&type=section&id=ITEM%206%20%E2%80%93%20%5BRESERVED%5D) This item is reserved and contains no information [ITEM 7 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=40&type=section&id=ITEM%207%20%E2%80%93%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) FY2021 revenue grew **11.7%** to **$46.5 million**, with **4.8%** net income growth and strong liquidity Fiscal Year 2021 Financial Highlights | Metric | FY2021 (in millions) | FY2020 (in millions) | Change ($) | Change (%) | | :-------------------------- | :------------------- | :------------------- | :--------- | :--------- | | Consolidated Revenues | $46.5 | $41.6 | $4.9 | 11.7% | | Consolidated Gross Profit | $35.9 | $30.9 | $5.0 | 15.9% | | Income from Operations | $11.3 | $11.6 | ($0.352) | (3.0%) | | Net Income | $9.8 | $9.3 | $0.450 | 4.8% | | Diluted EPS | $0.47 | $0.50 | ($0.03) | (6.0%) | - Software-related revenue increased by **$6.1 million** (**28%**) in FY2021, while **consulting services** revenue decreased by **$1.2 million** (**6%**)[201](index=201&type=chunk) - The company's strategy includes pursuing collaborations, expanding marketing and sales, recruiting scientific talent, and seeking accretive acquisitions[197](index=197&type=chunk) [Management Overview](index=40&type=section&id=Management%20Overview) Presents management's perspective on the company's financial performance and strategic direction [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance over specified fiscal periods [Comparison of fiscal year 2021 and fiscal year 2020](index=41&type=section&id=Comparison%20of%20fiscal%20year%202021%20and%20fiscal%20year%202020) Compares the financial results between fiscal years 2021 and 2020 [Comparison of fiscal year 2020 and fiscal year 2019](index=43&type=section&id=Comparison%20of%20fiscal%20year%202020%20and%20fiscal%20year%202019) Compares the financial results between fiscal years 2020 and 2019 [Segment Results of Operations](index=44&type=section&id=Segment%20Results%20of%20Operations) Provides a detailed breakdown of financial results by business segment [Comparison of fiscal year 2021 and fiscal year 2020](index=44&type=section&id=Comparison%20of%20fiscal%20year%202021%20and%20fiscal%20year%202020) Compares the financial results between fiscal years 2021 and 2020 [Comparison of fiscal year 2020 and fiscal year 2019](index=46&type=section&id=Comparison%20of%20fiscal%20year%202020%20and%20fiscal%20year%202019) Compares the financial results between fiscal years 2020 and 2019 [LIQUIDITY AND CAPITAL RESOURCES](index=48&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Discusses the company's financial liquidity, cash position, and capital management [Cash Flows](index=49&type=section&id=Cash%20Flows) Analyzes the company's cash inflows and outflows from operating, investing, and financing activities [Operating Activities](index=49&type=section&id=Operating%20Activities) Details cash flows generated from the company's primary business operations [Investing Activities](index=49&type=section&id=Investing%20Activities) Describes cash flows related to the purchase and sale of long-term assets and investments [Financing Activities](index=49&type=section&id=Financing%20Activities) Outlines cash flows from debt, equity, and dividend transactions [DIVIDENDS](index=49&type=section&id=DIVIDENDS) Details the company's dividend declarations and payments [KNOWN TRENDS OR UNCERTAINTIES](index=49&type=section&id=KNOWN%20TRENDS%20OR%20UNCERTAINTIES) Identifies significant trends or uncertainties that may impact future financial results [OFF-BALANCE SHEET ARRANGEMENTS](index=50&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) Discloses any material off-balance sheet arrangements [CONTRACTUAL OBLIGATIONS](index=50&type=section&id=CONTRACTUAL%20OBLIGATIONS) Outlines the company's material contractual obligations [RECENTLY ISSUED OR NEWLY ADOPTED ACCOUNTING STANDARDS](index=51&type=section&id=RECENTLY%20ISSUED%20OR%20NEWLY%20ADOPTED%20ACCOUNTING%20STANDARDS) Discusses the impact of new accounting standards on the financial statements [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=51&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Explains the significant accounting policies and estimates requiring management judgment [Estimates](index=51&type=section&id=Estimates) Discusses the use of estimates in financial reporting and their impact [Revenue Recognition](index=51&type=section&id=Revenue%20Recognition) Explains the specific accounting policies for recognizing revenue [Capitalized Computer Software Development Costs](index=52&type=section&id=Capitalized%20Computer%20Software%20Development%20Costs) Details the accounting treatment for capitalized software development costs [Intangible Assets and Goodwill](index=52&type=section&id=Intangible%20Assets%20and%20Goodwill) Describes the accounting for intangible assets and goodwill, including impairment testing [Business Acquisitions](index=53&type=section&id=Business%20Acquisitions) Outlines the accounting policies for business combinations [Research and Development Costs](index=53&type=section&id=Research%20and%20Development%20Costs) Explains the accounting treatment for research and development expenses [Income Taxes](index=53&type=section&id=Income%20Taxes) Details the accounting policies related to income taxes [Stock-Based Compensation](index=53&type=section&id=Stock-Based%20Compensation) Describes the accounting for stock-based compensation plans [ITEM 7A – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=53&type=section&id=ITEM%207A%20%E2%80%93%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Market risk stems from interest rates and foreign currency, mitigated by price adjustments, not derivatives - The company's market risk is primarily related to changes in interest rates affecting short-term investments and foreign currency exchange rate fluctuations from international operations[283](index=283&type=chunk)[284](index=284&type=chunk) International Revenue (FY2019-FY2021) | Fiscal Year | International Revenue (in millions) | | :---------- | :-------------------------------- | | 2021 | $4.8 | | 2020 | $5.0 | | 2019 | $4.1 | - The company mitigates foreign currency risk by periodically adjusting prices in foreign markets and does not use derivative contracts for hedging[284](index=284&type=chunk) [ITEM 8 – FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=54&type=section&id=ITEM%208%20%E2%80%93%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section refers to the consolidated financial statements and supplementary data, incorporated by reference from page F-1 - The consolidated financial statements are included starting on page F-1 of this Annual Report on Form 10-K[285](index=285&type=chunk) [ITEM 9 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](index=54&type=section&id=ITEM%209%20%E2%80%93%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) There have been no changes in or disagreements with accountants on accounting and financial disclosure - There are **no changes in or disagreements with accountants** on accounting and financial disclosure[286](index=286&type=chunk) [ITEM 9A – CONTROLS AND PROCEDURES](index=54&type=section&id=ITEM%209A%20%E2%80%93%20CONTROLS%20AND%20PROCEDURES) Disclosure controls and internal control over financial reporting were effective as of August 31, 2021, with no material changes - The CEO and CFO concluded that **disclosure controls and procedures were effective** as of August 31, 2021[287](index=287&type=chunk) - Management assessed and concluded that **internal control over financial reporting was effective** as of August 31, 2021, based on the COSO (2013) framework[288](index=288&type=chunk)[289](index=289&type=chunk) - **No material changes in internal controls** over financial reporting occurred during the most recent fiscal quarter[291](index=291&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=54&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Reports on the effectiveness of the company's disclosure controls and procedures [Management Report on Internal Control over Financial Reporting](index=54&type=section&id=Management%20Report%20on%20Internal%20Control%20over%20Financial%20Reporting) Presents management's assessment of the effectiveness of internal control over financial reporting [Inherent Limitations on Effectiveness of Controls](index=54&type=section&id=Inherent%20Limitations%20on%20Effectiveness%20of%20Controls) Acknowledges the inherent limitations of any control system [Changes in Internal Control over Financial Reporting](index=54&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Discloses any material changes in internal control over financial reporting [ITEM 9B – OTHER INFORMATION](index=54&type=section&id=ITEM%209B%20%E2%80%93%20OTHER%20INFORMATION) There is no other information to report under this item - There is **no other information to report** under this item[292](index=292&type=chunk) PART III [ITEM 10 – DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE](index=55&type=section&id=ITEM%2010%20%E2%80%93%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%2C%20AND%20CORPORATE%20GOVERNANCE) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2022 proxy statement - Information for this item is incorporated by reference from the definitive proxy statement for the 2022 Annual Meeting of Shareholders[294](index=294&type=chunk) [ITEM 11 – EXECUTIVE COMPENSATION](index=55&type=section&id=ITEM%2011%20%E2%80%93%20EXECUTIVE%20COMPENSATION) Executive compensation information is incorporated by reference from the 2022 proxy statement - Information for this item is incorporated by reference from the definitive proxy statement for the 2022 Annual Meeting of Shareholders[295](index=295&type=chunk) [ITEM 12 – SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](index=55&type=section&id=ITEM%2012%20%E2%80%93%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS) Security ownership information is incorporated by reference from the 2022 proxy statement - Information for this item is incorporated by reference from the definitive proxy statement for the 2022 Annual Meeting of Shareholders[296](index=296&type=chunk) [ITEM 13 – CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](index=55&type=section&id=ITEM%2013%20%E2%80%93%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE) Related party transactions and director independence information is incorporated by reference from the 2022 proxy statement - Information for this item is incorporated by reference from the definitive proxy statement for the 2022 Annual Meeting of Shareholders[297](index=297&type=chunk) [ITEM 14 – PRINCIPAL ACCOUNTING FEES AND SERVICES](index=55&type=section&id=ITEM%2014%20%E2%80%93%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES) Principal accounting fees and services information is incorporated by reference from the 2022 proxy statement - Information for this item is incorporated by reference from the definitive proxy statement for the 2022 Annual Meeting of Shareholders[298](index=298&type=chunk) PART IV [ITEM 15 – EXHIBITS, FINANCIAL STATEMENT SCHEDULES](index=56&type=section&id=ITEM%2015%20%E2%80%93%20EXHIBITS%2C%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists financial statements and a comprehensive list of exhibits filed or furnished with the report - The consolidated financial statements are included in this Annual Report on Form 10-K beginning on page F-1[301](index=301&type=chunk) - All financial statement schedules have been omitted as the information is either not applicable, not required, or included in the financial statements or notes[301](index=301&type=chunk) - A list of exhibits required by Item 601 of Regulation S-K is provided, including merger agreements, stock option plans, employment agreements, and certifications[302](index=302&type=chunk)[303](index=303&type=chunk) [SIGNATURES](index=59&type=section&id=SIGNATURES) This section contains the signatures of the company's authorized representatives, certifying the report as of October 27, 2021 - The report is signed by the Chief Financial Officer, Chief Executive Officer, Chairman of the Board, and other Directors, dated October 27, 2021[309](index=309&type=chunk)[310](index=310&type=chunk) [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](index=61&type=section&id=REPORT%20OF%20INDEPENDENT%20REGISTERED%20PUBLIC%20ACCOUNTING%20FIRM) Auditors issued an **unqualified opinion** on financials and internal controls, highlighting consulting revenue recognition as a **critical audit matter** - Rose, Snyder & Jacobs LLP issued an **unqualified opinion** on the consolidated financial statements for the three-year period ended August 31, 2021[315](index=315&type=chunk) - An **unqualified opinion** was also expressed on the effectiveness of the company's internal control over financial reporting as of August 31, 2021[316](index=316&type=chunk)[327](index=327&type=chunk) - A **critical audit matter** identified was the complexity and judgment involved in revenue recognition, specifically the variability and uncertainty in assessing the measure of progress for **consulting service** agreements[320](index=320&type=chunk)[321](index=321&type=chunk) [FINANCIAL STATEMENTS](index=64&type=section&id=FINANCIAL%20STATEMENTS) This section presents consolidated financial statements including Balance Sheets, Operations, Equity, Cash Flows, and detailed notes - The financial statements include Consolidated Balance Sheets, Statements of Operations and Comprehensive Income, Statements of Shareholders' Equity, and Statements of Cash Flows[312](index=312&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Metric | August 31, 2021 | August 31, 2020 | | :-------------------------- | :-------------- | :-------------- | | Cash and cash equivalents | $36,984 | $49,207 | | Short-term investments | $86,620 | $66,804 | | Total assets | $179,978 | $168,422 | | Total liabilities | $14,196 | $12,387 | | Total shareholders' equity | $165,782 | $156,035 | Consolidated Statements of Operations Highlights (in thousands) | Metric | FY2021 | FY2020 | FY2019 | | :-------------------------- | :------- | :------- | :------- | | Revenues | $46,466 | $41,589 | $33,970 | | Gross profit | $35,866 | $30,940 | $24,944 | | Income from operations | $11,253 | $11,605 | $10,648 | | Net Income | $9,782 | $9,332 | $8,583 | | Diluted EPS | $0.47 | $0.50 | $0.48 | [Consolidated Balance Sheets](index=64&type=section&id=Consolidated%20Balance%20Sheets) Presents a snapshot of the company's assets, liabilities, and equity at specific points in time [Consolidated Statements of Operations and Comprehensive Income](index=65&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Reports the company's revenues, expenses, net income, and comprehensive income over periods [Consolidated Statements of Shareholders' Equity](index=66&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity) Details changes in the company's equity accounts over periods [Consolidated Statements of Cash Flows](index=67&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes the cash generated and used by the company from operating, investing, and financing activities [Notes to Consolidated Financial Statements](index=68&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and additional information for the financial statements [NOTE 1 – ORGANIZATION AND LINES OF BUSINESS](index=68&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20LINES%20OF%20BUSINESS) Describes the company's structure and primary business activities [NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=68&type=section&id=NOTE%202%20%E2%80%93%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Outlines the key accounting principles and methods used in preparing financial statements [Principles of Consolidation](index=68&type=section&id=Principles%20of%20Consolidation) Explains the basis for consolidating financial statements [Use of Estimates](index=68&type=section&id=Use%20of%20Estimates) Discusses the role of management estimates in financial reporting [Reclassifications](index=68&type=section&id=Reclassifications) Notes any reclassifications made in prior period financial statements [Revenue Recognition](index=68&type=section&id=Revenue%20Recognition) Explains the specific accounting policies for recognizing revenue [Deferred Commissions](index=69&type=section&id=Deferred%20Commissions) Explains the accounting for deferred commission expenses [Practical Expedients and Exemptions](index=69&type=section&id=Practical%20Expedients%20and%20Exemptions) Discusses the application of practical expedients and exemptions in accounting [Cash and Cash Equivalents](index=69&type=section&id=Cash%20and%20Cash%20Equivalents) Defines cash and cash equivalents and their presentation [Accounts Receivable](index=69&type=section&id=Accounts%20Receivable) Describes the accounting for accounts receivable and allowance for doubtful accounts [Investments](index=70&type=section&id=Investments) Details the accounting for the company's investment portfolio [Capitalized Computer Software Development Costs](index=70&type=section&id=Capitalized%20Computer%20Software%20Development%20Costs) Explains the accounting for capitalized software development costs [Property and Equipment](index=70&type=section&id=Property%20and%20Equipment) Details the accounting for property and equipment [Internal-use Software](index=71&type=section&id=Internal-use%20Software) Describes the accounting for software developed for internal use [Leases](index=71&type=section&id=Leases) Explains the accounting for lease agreements [Intangible Assets and Goodwill](index=71&type=section&id=Intangible%20Assets%20and%20Goodwill) Details the accounting for intangible assets and goodwill [Other Intangible Assets](index=72&type=section&id=Other%20Intangible%20Assets) Provides specific details on other intangible assets [Business Acquisitions](index=73&type=section&id=Business%20Acquisitions) Explains the accounting for business acquisitions [Fair Value of Financial Instruments](index=74&type=section&id=Fair%20Value%20of%20Financial%20Instruments) Describes the methods used to determine the fair value of financial instruments [Marketing](index=75&type=section&id=Marketing) Details the accounting for marketing expenses [Research and Development Costs](index=75&type=section&id=Research%20and%20Development%20Costs) Explains the accounting for research and development costs [Income Taxes](index=75&type=section&id=Income%20Taxes) Details the accounting for income taxes [Intellectual property](index=75&type=section&id=Intellectual%20property) Describes the accounting for intellectual property [Earnings per Share](index=77&type=section&id=Earnings%20per%20Share) Explains the calculation of earnings per share [Stock-Based Compensation](index=77&type=section&id=Stock-Based%20Compensation) Details the accounting for stock-based compensation [Impairment of Long-lived Assets](index=77&type=section&id=Impairment%20of%20Long-lived%20Assets) Describes the accounting for impairment of long-lived assets [Recently Issued Accounting Standards](index=77&type=section&id=Recently%20Issued%20Accounting%20Standards) Discusses recently issued accounting standards [NOTE 3 – REVENUE RECOGNITION](index=78&type=section&id=NOTE%203%20%E2%80%93%20REVENUE%20RECOGNITION) Details the company's policies and methods for recognizing revenue [Components of Revenue](index=78&type=section&id=Components%20of%20Revenue) Details the various components that make up the company's revenue [Remaining performance obligations](index=79&type=section&id=Remaining%20performance%20obligations) Explains the accounting for remaining performance obligations under revenue contracts [Contract Liabilities](index=79&type=section&id=Contract%20Liabilities) Describes the accounting for contract liabilities [Disaggregation of Revenues](index=79&type=section&id=Disaggregation%20of%20Revenues) Provides a breakdown of revenues by various categories [Contracts in Progress](index=79&type=section&id=Contracts%20in%20Progress) Details the accounting for contracts in progress [NOTE 4 – PROPERTY AND EQUIPMENT](index=80&type=section&id=NOTE%204%20%E2%80%93%20PROPERTY%20AND%20EQUIPMENT) Provides information on the company's property and equipment, including depreciation policies [NOTE 5 – INVESTMENTS](index=80&type=section&id=NOTE%205%20%E2%80%93%20INVESTMENTS) Details the company's investment portfolio and related accounting policies [NOTE 6 – CONTRACTS PAYABLE](index=81&type=section&id=NOTE%206%20%E2%80%93%20CONTRACTS%20PAYABLE) Describes the company's contractual liabilities, including acquisition-related payments [DILIsym Acquisition Liabilities](index=81&type=section&id=DILIsym%20Acquisition%20Liabilities) Describes liabilities related to the DILIsym acquisition [Lixoft Acquisition Liabilities](index=81&type=section&id=Lixoft%20Acquisition%20Liabilities) Describes liabilities related to the Lixoft acquisition [NOTE 7 – COMMITMENTS AND CONTINGENCIES](index=81&type=section&id=NOTE%207%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) Discloses the company's material commitments and potential contingent liabilities [Leases](index=81&type=section&id=Leases) Details the company's lease commitments [Line of Credit](index=82&type=section&id=Line%20of%20Credit) Provides information on the company's line of credit [Employment Agreements](index=82&type=section&id=Employment%20Agreements) Describes key employment agreements [License Agreement](index=82&type=section&id=License%20Agreement) Details significant license agreements [Litigation](index=82&type=section&id=Litigation) Discusses any ongoing or potential litigation [NOTE 8 – SHAREHOLDERS' EQUITY](index=83&type=section&id=NOTE%208%20%E2%80%93%20SHAREHOLDERS%27%20EQUITY) Provides detailed information on the components of shareholders' equity, including stock options and dividends [Shares Outstanding](index=83&type=section&id=Shares%20Outstanding) Provides information on the number of shares outstanding [Dividends](index=83&type=section&id=Dividends) Details the company's dividend policy [Stock Option Plans](index=84&type=section&id=Stock%20Option%20Plans) Describes the company's stock option plans [NOTE 9 – INCOME TAXES](index=86&type=section&id=NOTE%209%20%E2%80%93%20INCOME%20TAXES) Details the company's income tax provisions, deferred taxes, and effective tax rates [NOTE 10 – CONCENTRATIONS AND UNCERTAINTIES](index=88&type=section&id=NOTE%2010%20%E2%80%93%20CONCENTRATIONS%20AND%20UNCERTAINTIES) Discusses significant concentrations of risk and other uncertainties affecting the company [NOTE 11 – SEGMENT AND GEOGRAPHIC REPORTING](index=89&type=section&id=NOTE%2011%20%E2%80%93%20SEGMENT%20AND%20GEOGRAPHIC%20REPORTING) Provides financial information disaggregated by business segment and geographic region [NOTE 12 – RELATED PARTY TRANSACTIONS](index=91&type=section&id=NOTE%2012%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) Discloses transactions between the company and its related parties [NOTE 13 – EMPLOYEE BENEFIT PLAN](index=91&type=section&id=NOTE%2013%20%E2%80%93%20EMPLOYEE%20BENEFIT%20PLAN) Describes the company's employee benefit plans [NOTE 14 – ACQUISITION](index=91&type=section&id=NOTE%2014%20%E2%80%93%20ACQUISITION) Provides details on recent business acquisitions [NOTE 15 – UNAUDITED QUARTERLY FINANCIAL DATA](index=93&type=section&id=NOTE%2015%20%E2%80%93%20UNAUDITED%20QUARTERLY%20FINANCIAL%20DATA) Presents unaudited financial data for recent fiscal quarters [NOTE 16 - SUBSEQUENT EVENTS](index=93&type=section&id=NOTE%2016%20-%20SUBSEQUENT%20EVENTS) Discloses significant events that occurred after the balance sheet date

Earnings Call – Q4 FY21 October 25, 20211 1 | NASDAQ: SLP | --- | --- | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...