2 CURRENT PERIOD | --- | --- | --- | --- | |------------------------------|-------------|-------------|---------| | | | | | | Prior Year Comparison (1Q23) | | | | | $12.0M | $0.06 | 25% | $15.8M | | Revenue | Diluted EPS | Adjusted | Backlog | | | | EBITDA as % | | | | | of Revenue | | GastroPlus® (Physiologically Based Pharmacokinetics) Q1 Revenue Growth General | --- | --- | |--------------------|-------------------------------------------------------------------------------------------------------------- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended August 31, 2023 or o TRANSITION 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. (Exact name of registrant as specified in its charter) California (State or othe ...

Simulations Plus, Inc. (NASDAQ:SLP) Q4 2023 Earnings Conference Call October 25, 2023 5:00 PM ET Company Participants Tamara Gonzales - Investor Relations, Financial Profiles Shawn O'Connor - Chief Executive Officer Will Frederick - Chief Financial Officer Conference Call Participants Francois Brisebois - Oppenheimer Matt Hewitt - Craig-Hallum David Larsen - BTIG David Windley - Jefferies Operator Greetings, and welcome to the Simulations Plus Fourth Quarter Fiscal 2023 Financial Results Conference Call. At ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended May 31, 2023 OR o 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) California 95-4595609 (State o ...

Simulations Plus, Inc. (NASDAQ:SLP) Q3 2023 Earnings Conference Call July 6, 2023 5:00 PM ET Company Participants John Wilfong - Investor Relations, Financial Profiles Shawn O'Connor - Chief Executive Officer Will Frederick - Chief Financial Officer Conference Call Participants Matt Hewitt - Craig-Hallum David Larsen - BTIG Yuan Zhi - B. Riley Francois Brisebois - Oppenheimer Operator Greetings, and welcome to the Simulations Plus Third Quarter Fiscal 2023 Financial Results Conference Call. At this time, al ...

Increases breadth and depth of QSP expertise and range of therapeutic applications 3Q22 Software Revenue Mix 60% to 65% FY23 Mix 11 SH ls + 92% 91% 90% ↑ 83% 82% 81% 9 66% 63% 63% 3Q21 3Q22 3Q23 - ●= Software ► Services ▼ Total 12 $5.3 $9.6 $5.6 $10.6 73Q21 3Q23 +9% +10% +5% Total Revenue Software Revenue Services Revenue 3Q23 Mix 35% 65% Software Services 3Q22 Mix 36% 64% Software Services 10 Revenue - YTD (in millions) Software Services | --- | --- | --- | --- | --- | |---------------|------------------|- ...

PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The unaudited condensed consolidated financial statements show a 2% revenue increase to **$27.7 million** but a 27% net income decrease to **$5.4 million** for the six-month period, influenced by increased expenses and share repurchases [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows total assets decreased to **$173.2 million** and shareholders' equity declined to **$164.6 million**, primarily due to cash reduction and share repurchases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Feb 28, 2023 (Unaudited) | Aug 31, 2022 (Audited) | | :--- | :--- | :--- | | **Total Current Assets** | $131,474 | $146,790 | | Cash and cash equivalents | $39,292 | $51,567 | | **Total Assets** | **$173,201** | **$188,382** | | **Total Current Liabilities** | $6,002 | $7,735 | | **Total Liabilities** | **$8,608** | **$10,134** | | **Total Shareholders' Equity** | **$164,593** | **$178,248** | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Revenues increased to **$15.8 million** (3 months) and **$27.7 million** (6 months), but net income decreased to **$4.2 million** and **$5.4 million** respectively due to higher expenses Statement of Operations - Three Months Ended Feb 28 (in thousands, except EPS) | Metric | 2023 | 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $15,750 | $14,796 | +$954 | +6.4% | | Gross Profit | $13,130 | $11,966 | +$1,164 | +9.7% | | Income from Operations | $4,034 | $5,480 | -$1,446 | -26.4% | | Net Income | $4,174 | $4,409 | -$235 | -5.3% | | Diluted EPS | $0.20 | $0.21 | -$0.01 | -4.8% | Statement of Operations - Six Months Ended Feb 28 (in thousands, except EPS) | Metric | 2023 | 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $27,714 | $27,213 | +$501 | +1.8% | | Gross Profit | $22,423 | $21,627 | +$796 | +3.7% | | Income from Operations | $4,912 | $9,271 | -$4,359 | -47.0% | | Net Income | $5,419 | $7,435 | -$2,016 | -27.1% | | Diluted EPS | $0.26 | $0.36 | -$0.10 | -27.8% | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity decreased to **$164.6 million** due to a **$20 million** share repurchase and **$2.4 million** in dividends, offsetting **$5.4 million** in net income - A **$20 million** repurchase and retirement of common shares significantly impacted shareholders' equity, allocated as a **$4 million** reduction from common stock and **$16 million** from retained earnings[13](index=13&type=chunk) - The company paid cash dividends of **$0.12 per common share**, totaling **$2.413 million**, consistent with the prior year[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to **$10.2 million**, but financing activities used **$21.5 million** due to a **$20 million** share repurchase, resulting in a **$12.3 million** net cash decrease Cash Flow Summary - Six Months Ended Feb 28 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $10,248 | $6,179 | | Net cash (used in) provided by investing activities | ($1,073) | $19,089 | | Net cash used in financing activities | ($21,450) | ($1,879) | | **Net (decrease) increase in cash** | **($12,275)** | **$23,389** | | Cash and cash equivalents, end of period | $39,292 | $60,373 | - The primary driver for cash used in financing activities was the **$20.0 million** repurchase and retirement of common shares, which did not occur in the prior year[15](index=15&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue streams, and segment performance, highlighting **69%** of revenue from Americas and a **$20 million** accelerated share repurchase Segment Performance - Six Months Ended Feb 28, 2023 (in thousands) | Segment | Revenues | Gross Profit | Gross Margin | | :--- | :--- | :--- | :--- | | Software | $16,561 | $14,833 | 90% | | Services | $11,153 | $7,590 | 68% | | **Total** | **$27,714** | **$22,423** | **81%** | Geographical Revenue - Six Months Ended Feb 28 (in thousands) | Region | 2023 Revenue | % of Total | 2022 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | Americas | $19,089 | 69% | $18,155 | 67% | | EMEA | $5,748 | 21% | $6,731 | 25% | | Asia Pacific | $2,877 | 10% | $2,327 | 8% | - On January 11, 2023, the company initiated a **$20 million** accelerated share repurchase (ASR) agreement, receiving an initial **408,685 shares**[93](index=93&type=chunk)[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting a 2% revenue increase offset by a 42% rise in SG&A expenses, leading to a 47% drop in operating income, while maintaining strong liquidity [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Revenues increased 2% to **$27.7 million**, but operating income fell 47% to **$4.9 million** due to a 42% rise in SG&A and 39% in R&D expenses Comparison of Six Months Ended February 28, 2023 and 2022 (in thousands) | Metric | 2023 | 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $27,714 | $27,213 | $501 | 2% | | Gross profit | $22,423 | $21,627 | $796 | 4% | | Total operating expenses | $17,511 | $12,356 | $5,155 | 42% | | Income from operations | $4,912 | $9,271 | ($4,359) | (47)% | | Net income | $5,419 | $7,435 | ($2,016) | (27)% | - SG&A expenses increased by **$4.5 million (42%)**, primarily from a **$3.2 million** rise in employee costs due to a **14%** headcount increase and market compensation adjustments[132](index=132&type=chunk) - R&D costs increased by **$0.7 million (39%)**, driven by MonolixSuite 2023R1 development and higher personnel costs from market compensation adjustments[131](index=131&type=chunk) [Results of Operations by Business Unit](index=30&type=section&id=Results%20of%20Operations%20by%20Business%20Unit) Services revenue grew 11% to **$11.2 million**, while Software revenue declined 3% to **$16.6 million**, impacting overall gross profit Segment Gross Profit - Six Months Ended Feb 28 (in thousands) | Segment | 2023 | 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Software | $14,833 | $15,605 | ($772) | (5)% | | Services | $7,590 | $6,022 | $1,568 | 26% | | **Total** | **$22,423** | **$21,627** | **$796** | **4%** | - Services business revenue grew by **$1.1 million (11%)** year-over-year, driven by higher PKPD and PBPK services revenues[145](index=145&type=chunk) - Software business revenue decreased by **$0.6 million (3%)** year-over-year, primarily due to lower revenues from ADMET Predictor® and MonolixSuite[144](index=144&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$39.3 million** cash and **$76.1 million** investments, having executed a **$20 million** ASR as part of a **$50 million** share repurchase program - The company holds **$39.3 million** in cash and cash equivalents and **$76.1 million** in short-term investments[146](index=146&type=chunk) - On January 11, 2023, the company initiated a **$20 million** Accelerated Share Repurchase (ASR) agreement, part of a **$50 million** share repurchase program[147](index=147&type=chunk)[148](index=148&type=chunk) - Net cash from operations was **$10.2 million**, while financing activities used **$21.5 million**, primarily due to the **$20.0 million** share repurchase[154](index=154&type=chunk)[158](index=158&type=chunk) [Known Trends or Uncertainties](index=36&type=section&id=Known%20Trends%20or%20Uncertainties) Key trends include economic uncertainty and banking system instability, offset by the positive trend of increasing adoption of simulation tools in pharmaceutical R&D - The company acknowledges risks from the broader economic environment, including inflation, rising interest rates, and increased recession risk[163](index=163&type=chunk) - Recent failures of Silicon Valley Bank and Signature Bank raise concerns about U.S. banking system stability, potentially affecting cash access, though the company does not bank with regional banks[164](index=164&type=chunk) - A positive trend is the increasing adoption of simulation and modeling tools to improve R&D productivity in the pharmaceutical industry, expected to benefit the company[162](index=162&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes in its market risk exposure as of February 28, 2023, compared to its prior annual report - As of February 28, 2023, there has been no material change in the company's exposure to market risk from that described in its most recent Annual Report[169](index=169&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective with no material changes to internal controls - Management, including the CEO and CFO, concluded that as of February 28, 2023, the company's disclosure controls and procedures were effective[170](index=170&type=chunk) - There were no changes in internal controls over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[171](index=171&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings and is unaware of any pending or threatened actions - The company is not a party to any legal proceedings and is not aware of any pending or threatened legal proceedings[82](index=82&type=chunk)[173](index=173&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) Updated risk factors include potential stock price volatility from share repurchases and adverse impacts from financial services industry instability - A new risk factor notes that the company's **$50 million** share repurchase program cannot be guaranteed to enhance shareholder value and that repurchases could increase the volatility of the common stock price[175](index=175&type=chunk) - The company highlights risks from instability in the financial services industry, citing the March 2023 failures of Silicon Valley Bank and Signature Bank as events that could lead to market-wide liquidity problems and adversely affect business operations[176](index=176&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales occurred, and the company executed a **$20 million** Accelerated Share Repurchase as part of its **$50 million** program - There were no unregistered sales of the company's securities during the quarter ended February 28, 2023[177](index=177&type=chunk) - On January 11, 2023, the company entered into a **$20 million** Accelerated Share Repurchase (ASR) agreement and received an initial delivery of **408,685 shares**. After the ASR is settled, **$30 million** will remain under the repurchase authorization[178](index=178&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk) [Defaults upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) The company reported no defaults upon senior securities during the period - None[181](index=181&type=chunk) [Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[182](index=182&type=chunk) [Other Information](index=40&type=section&id=Item%205.%20Other%20Information) The company did not report any other information for this item - None[183](index=183&type=chunk) [Exhibits](index=41&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including ASR confirmation, plan amendments, and officer certifications - Key exhibits filed include: * Confirmation for Fixed Dollar Accelerated Share Repurchase Transaction (10.1) * First Amendment to 2021 Equity Incentive Plan (10.2) * Fourth Amendment to Lease (10.3) * Certifications of the Principal Executive Officer and Principal Financial Officer (31.1, 31.2, 32.1) * Inline XBRL documents (101 series)[184](index=184&type=chunk)

Simulations Plus, Inc. (NASDAQ:SLP) Q2 2023 Earnings Conference Call April 5, 2023 5:00 PM ET Company Participants Brian Siegel - IR, Hayden IR Shawn O'Connor - Chief Executive Officer Will Frederick - Chief Financial Officer Conference Call Participants François Brisebois - Oppenheimer Matt Hewitt - Craig-Hallum Mitra Ramgopal - Sidoti Dane Leone - Raymond James Operator Greetings, and welcome to the Simulations Plus Second Quarter Fiscal 2023 Financial Results Conference Call. At this time, all participan ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended November 30, 2022 OR o 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) California 95-4595609 (St ...

Simulations Plus, Inc. (NASDAQ:SLP) Q1 2023 Earnings Conference Call January 4, 2023 5:00 PM ET Company Participants Brian Siegel - Hayden IR Shawn O'Connor - Chief Executive Officer Will Frederick - Chief Financial Officer Conference Call Participants Matt Hewitt - Craig-Hallum Dane Leone - Raymond James François Brisebois - Oppenheimer Mitra Ramgopal - Sidoti Operator Greetings, and welcome to the Simulations Plus First Quarter Fiscal 2023 Financial Results Conference Call. At this time, all participants ...