Simulations Plus, Inc. 10-K

ITEM 5 – MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock, par value $0.001 per share, trades on the Nasdaq Capital Market under the symbol “SLP.” Price Range of Common Stock The following table shows high and low sales prices for the Company’s common stock for each quarter during the past two fiscal years: High Low FY19: Quarter ended November 30, 2018 $ 21.25 $ 18.04 Quarter ended February 28, 2019 $ 21.66 $ 17.18 Quarter ended May 31, 2019 $ 27.33 $ 19.74 Quarter ended August 31, 2019 $ 41.95 $ 24.08 FY20: Quarter ended November 30, 2019 $ 38.32 $ 31.53 Quarter ended February 29, 2020 $ 40.22 $ 27.71 Quarter ended May 31, 2020 $ 52.73 $ 26.00 Quarter ended August 31, 2020 $ 73.58 $ 46.77 Holders As of November 16, 2020, there were 46 shareholders of record. Dividends We paid a total of approximately $4.3 million in cash dividends during fiscal year 2020, and $4.2 million in fiscal year 2019 as set forth in the table below. We expect to pay quarterly dividends of $0.06 per share of common stock each quarter, subject to declaration by our Board of Directors. However, there can be no assurances that our Board of Directors will continue the dividend distributions for any specified number of quarters. Fiscal Year Record Date Distribution Date # of Shares Outstanding on Record Date Dividend per Share Total Amount 2019 11/01/2018 11/08/2018 17,417,875 $ 0.06 $ 1,045,073 1/25/2019 2/01/2019 17,481,450 $ 0.06 $ 1,048,887 4/24/2019 5/01/2019 17,515,228 $ 0.06 $ 1,050,914 7/25/2019 8/01/2019 17,536,454 $ 0.06 $ 1,052,181 2020 10/25/2019 11/01/2019 17,606,314 $ 0.06 $ 1,056,379 1/27/2020 2/03/2020 17,645,639 $ 0.06 $ 1,058,740 4/24/2020 5/01/2020 17,769,134 $ 0.06 $ 1,066,148 7/27/2020 8/03/2020 17,820,057 $ 0.06 $ 1,069,203 30 Shareholder Return Performance Graph The following graph compares the cumulative total stockholder return on our common stock of a $100 investment from August 31, 2016 through August 31, 2020 assuming reinvestment of dividends, with a similar investment in the Russell 3000 index (the “Russell 3000”) and with the companies listed in the Nasdaq Composite - Total Returns (“IXIC”), and the S&P600 Health Care Equipment & Services Industry Group Index (SP600-3510). The historical information set forth below is not necessarily indicative of future performance. This performance graph shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended or incorporated by reference into any of our filings under the Securities Act of 1933, as amended, of the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Repurchases There is currently no share repurchase program pending, and the Company has made no repurchases of its securities since fiscal year 2011. 31 ITEM 6 – SELECTED FINANCIAL DATA The following tables set forth the selected consolidated financial data for each of the fiscal years in the five-year period ended August 31, 2020. We derived the selected consolidated financial data from our audited consolidated financial statements, which should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II of this Annual Report on Form 10-K and our consolidated financial statements and the related notes included elsewhere in this report. Year ended August 31, Statements of operations data 2020[c][d] 2019 2018[b] 2017[a] 2016 Net Revenues $ 41,589,084 $ 33,970,440 $ 29,666,524 $ 24,137,913 $ 19,972,079 Cost of revenues 10,649,230 9,025,704 7,994,228 6,307,800 4,601,513 Gross margin 30,939,854 24,944,736 21,672,296 17,830,113 15,370,566 SG&A expenses 16,360,053 11,796,027 9,583,852 8,198,184 6,693,691 R&D 2,974,623 2,499,980 1,790,656 1,367,645 1,445,069 Total operating expenses 19,334,676 14,296,007 11,374,508 9,565,829 8,138,760 Income from operations 11,605,178 10,648,729 10,297,788 8,264,284 7,231,806 Other income (expense) (218,129 ) (92,253 ) (158,846 ) (24,017 ) 4,586 Income from operations before income taxes 11,387,049 10,556,476 10,138,942 8,240,267 7,236,392 Provision for income taxes (2,054,989 ) (1,973,147 ) (1,204,130 ) (2,452,670 ) (2,286,256 ) Net Income $ 9,332,060 $ 8,583,329 $ 8,934,812 $ 5,787,597 $ 4,950,136 Earnings per share Basic $ 0.52 $ 0.49 $ 0.52 $ 0.34 $ 0.29 Diluted $ 0.50 $ 0.48 $ 0.50 $ 0.33 $ 0.29 Weighted-average common shares outstanding Basic 17,819,064 17,492,258 17,328,707 17,239,490 17,028,566 Diluted 18,538,373 18,057,431 17,860,392 17,515,917 17,209,506 Dividend per common share $ 0.24 $ 0.24 $ 0.24 $ 0.20 $ 0.20 Dividends $ 4,250,470 $ 4,197,055 $ 4,161,740 $ 3,448,489 $ 3,413,274 Other comprehensive Income (Loss), net of tax Foreign currency translation adjustments $ 58,467 $ – $ – $ – $ – 32 As of August 31, Balance sheet data at year end 2020 2019 2018 2017 2016 Cash and cash equivalents $ 49,207,314 $ 11,435,499 $ 9,400,701 $ 6,215,718 $ 8,030,284 Net working capital $ 123,586,788 $ 16,381,665 $ 12,996,901 $ 10,625,437 $ 10,574,712 Total assets $ 168,421,517 $ 45,196,697 $ 43,279,016 $ 38,512,468 $ 27,814,317 Total liabilities associated with business and intangible acquisitions $ 6,063,833 $ 1,761,028 $ 5,890,940 $ 5,985,516 $ 1,000,000 Total liabilities $ 12,385,572 $ 7,515,093 $ 11,356,391 $ 12,707,581 $ 5,081,723 Total shareholders’ equity $ 156,035,945 $ 37,681,604 $ 31,922,625 $ 25,804,887 $ 22,732,594 Notes to Five-Year Summary [a] Effective June 1, 2017, we acquired DILIsym Services, Inc. and incurred approximately $620,000 of acquisition related costs in FY2017. [b] In FY2018 we posted a $1.5 million deferred tax benefit due to the effect of new tax rates enacted under the Tax Cuts and Jobs Act of 2017. [c] Effective April, 2020, we acquired Lixoft and incurred approximately $1,416,000 of acquisition-related costs in FY2020. [d] In August 2020 the company issued 2,090,909 of shares in a follow-on public offering, priced at $55.00 per share. Net proceeds from this offering after underwriting discounts and commissions and other offering expenses were $107.7 million.