# EDGAR Filing Document

**Accession Number:** 0001023459
**File Stem:** 0001023459-23-000009
**Filing Date:** 2023-1
**Character Count:** 36824
**Document Hash:** 1748572f1098d84c98a74e2e5f39c61a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001023459-23-000009.hdr.sgml**: 20230104

**ACCESSION NUMBER**: 0001023459-23-000009

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 35

**CONFORMED PERIOD OF REPORT**: 20230104

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230104

**DATE AS OF CHANGE**: 20230104

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Simulations Plus, Inc.
- **CENTRAL INDEX KEY:** 0001023459
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
- **IRS NUMBER:** 954595609
- **FISCAL YEAR END:** 0831

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32046
- **FILM NUMBER:** 23506406

**BUSINESS ADDRESS:**
- **STREET 1:** 42505 10TH STREET WEST
- **CITY:** LANCASTER
- **STATE:** CA
- **ZIP:** 93534-7059
- **BUSINESS PHONE:** 661-723-7723

**MAIL ADDRESS:**
- **STREET 1:** 42505 10TH STREET WEST
- **CITY:** LANCASTER
- **STATE:** CA
- **ZIP:** 93534-7059

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SIMULATIONS PLUS INC
- **DATE OF NAME CHANGE:** 19960923

?xml version="1.0" ? slp-20230104

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

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

**January 4, 2023**

(Date of the earliest event reported)

![slp-20230104_g1.gif](slp-20230104_g1.gif)

**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 10th 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:

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Common Stock, par value $0.001 per share | SLP | The Nasdaq Stock Market LLC |

---

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 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition**

On January 4, 2023, Simulations Plus, Inc., a California corporation (the "Company"), issued a press release announcing financial results for its first quarter of fiscal year 2023 ended November 30, 2022. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this "Report").

**Item 7.01&nbsp;&nbsp;&nbsp;&nbsp;Regulation FD Disclosure**

On January 4, 2023, as part of the press release referenced above, the Company announced (i) that its board of directors ("Board") has declared a quarterly cash dividend of $0.06 per share of common stock, payable on February 6, 2023 to shareholders of record as of January 30, 2023, and (ii) that its Board has approved a share repurchase plan, which is discussed in additional detail in Item 8.01 of this Report, below.

In addition, on January 4, 2023, the Company held an investor conference call reporting its financial results for its first quarter of fiscal year 2023 ended November 30, 2022. The PowerPoint presentation, which was used for this investor conference call, is attached as Exhibit 99.2 to this Report.

In accordance with General Instructions B.2 of Form 8-K, the information in this Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Report.

**Item 8.01&nbsp;&nbsp;&nbsp;&nbsp;Other Events**

On December 29, 2022, the Company's Board authorized and approved a share repurchase program for up to $50 million of the outstanding shares of the Company's common stock. The authorization permits the Company to repurchase shares of its common stock from time-to-time through a combination of open market repurchases, privately negotiated transactions, 10b5-1 trading plans, accelerated stock repurchase transactions and/or other transactions, in accordance with federal securities laws. No time limit was set for the completion of the share repurchase program, and the stock repurchase program may be modified, extended, suspended or discontinued at any time, in the sole discretion of the Company. The exact means, number and timing of share repurchases will depend on market conditions, applicable legal requirements and other factors, and will be funded through available cash balances. The Company is not obligated to repurchase any shares under the repurchase program.

The Board also authorized the Company to enter into an accelerated share repurchase transaction ("ASR") for the repurchase of up to $20 million of its outstanding common shares as part of the new share repurchase program. The Company is currently in discussions with potential brokers to administer the ASR transaction, but has not yet entered into a definitive agreement related thereto.

Information regarding share repurchases will be disclosed by the Company in its periodic reports on Form 10-Q and 10-K filed with the Securities and Exchange Commission, as required by the applicable rules of the Exchange Act.

**CAUTION REGARDING FORWARD-LOOKING STATEMENTS**

This Report, including the disclosures set forth herein and Exhibits 99.1 and 99.2 attached hereto, 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 reports hereafter furnished, including in other publicly available documents filed with the Securities and Exchange Commission (the "Commission"), to the Company's stockholders 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&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits**

(d)&nbsp;&nbsp;&nbsp;&nbsp;Exhibits

---

| | |
|:---|:---|
| 99.1 | <u>[Press release issued on January 4, 2023.](slp-20221130xexx991x231.htm)</u> |
| 99.2 | <u>[PowerPoint presentation used at the Investor Conference Call on January 4, 2023.](slpearningscalldeck231-f.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**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: January 4, 2023 | <u>By: /s/</u> *<u>Will Frederick</u>* |
|  | Will Frederick |
|  | Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![slp_toplogo.gif](slp_toplogo.gif)

**Simulations Plus Reports First Quarter Fiscal 2023 Financial Results**

***Total revenue of $12 million; Diluted Earnings Per Share (EPS) of $0.06; Both in line with fiscal 2023 guidance and Q1 expectations for revenue seasonality shift***

***Provides capital allocation strategy update focusing on corporate development activities, $50 million share repurchase program, and internal investment***

**LANCASTER, CA, January 4, 2023** – Simulations Plus, Inc. (Nasdaq: SLP), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its first quarter of fiscal 2023, ended November 30, 2022.

Shawn O'Connor, chief executive officer of Simulations Plus, said, "Despite a $0.3 million FX negative impact on our revenue, our first quarter results were in line with the new seasonal expectations we introduced on our last earnings call in November. At the time, we said we were taking deliberate actions to align software renewal timing for diverse groups and products within each customer, which we expected to impact our first quarter revenue seasonality while boosting our second through fourth quarter results. We also said some new sales were expected to push into our second quarter to align with customers' new calendar year budgets. The renewal patterns are progressing as expected and we signed 15 new customers across our software portfolio and saw 15 upsells in the first quarter, the latter indicating our cross-selling strategy is working.

"I was also encouraged that our services business generated strong quarterly results, growing by nearly 17% while building our backlog to nearly $16 million. Our pipeline here remains strong, and we were also able to bring on several new consultants during the quarter to help satisfy the strong demand for our services."

**First Quarter Financial Highlights** (Fiscal 2023 vs. Fiscal 2022):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue decreased 4% to $12.0 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Software revenue decreased 17% to $6.1 million, representing 51% of total revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Services revenue increased 17% to $5.9 million, representing 49% of total revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Gross profit decreased 4% to $9.3 million; gross margin was 78%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income of $1.2 million and diluted EPS of $0.06, compared to net income of $3.0 million and diluted EPS of $0.15;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted EBITDA of $3.0 million, representing 25% of total revenue.

**Capital Allocation Strategy Update**

The Company is providing an update to its capital allocation strategy, including corporate development, capital return to shareholders, and internal investment.

1. Evolving the corporate development strategy to include strategic investments and partnerships

In August 2020, the Company sold 2.1 million shares of its common stock at $55 per share in a follow-on public offering, for net proceeds of $108 million for strategic acquisitions. Highly disciplined acquisitions have historically been the focus for the Company's corporate development strategy. Since August 2020, management identified more than 60 candidates

that initially met the Company's acquisition criteria, which includes strategic and cultural fit, immediate EPS accretion and attractive valuations. Company management engaged in discussions with many of these candidates, and while ongoing communications continue with certain identified targets, none have resulted in an acquisition to date. While acquisitions will remain the top priority for inorganic growth, the Company is now expanding its corporate development strategy to allow for strategic investments and partnerships with companies that could lead to software and services portfolio innovation, increased leadership in computational biology, Total Addressable Market (TAM) expansion, and become potential future acquisitions. This change is expected to allow the Company to target a wider network of relevant companies with the goal of gaining access to leading edge trends and technologies in biosimulation or adjacent markets that were previously not considered.

2. Returning capital to shareholders through a $50 million share repurchase program

While corporate development remains a key focus for the Company, management believes acquisitions can be achieved with less capital than raised in August 2020. As such, the Board of Directors has authorized a share repurchase program allowing the Company to repurchase up to $50 million of its outstanding common shares. No time limit was set for the completion of the share repurchase program, and the stock repurchase program may be modified, extended, suspended or discontinued at any time, in the sole discretion of the Company. The exact number and timing of share repurchases will depend on market conditions, applicable legal requirements and other factors, and will be funded through available cash balances.

As part of its ongoing commitment to drive shareholder value, the Company further announced that its Board of Directors has authorized it to enter into an accelerated share repurchase (ASR) transaction as part of the new share repurchase program. The Company is currently in discussions with potential brokers to administer the ASR, and intends to enter into an ASR transaction during the second quarter of fiscal 2023 for the repurchase of $20 million of its outstanding common shares leaving $30 million available for additional share repurchases under the repurchase program. Company management believes acquisitions can still be achieved with the remaining funds on hand after the repurchase program has been completed, plus free cash flow generated by the Company.

3. Continuing internal investment to drive revenue growth, increase efficiencies and lower costs

The company intends to continue to invest in scientific employee retention and recruiting and selectively add new headcount (sales and marketing) and technology.

**Fiscal 2023 Guidance and Commentary**

---

| | | |
|:---|:---|:---|
| | **Fiscal 2023 Guidance** | **Annual Increase** |
| Revenue | $59.3M - 62.0M | 10-15% |
| Software mix | 60-65% | - |
| Services mix | 35-40% | - |
| Diluted earnings per share | $0.63-$0.67 | 5-10% |

---

"We believe we remain on-pace to achieve our full-year guidance of 10-15% organic revenue growth and 5-10% diluted EPS growth. As previously communicated, this will be a year of transition as we invest in our organization and streamline our software renewal process to facilitate even higher rates of cross-selling. From a full-year perspective, we expect to maintain high gross margins and robust renewal rates in the face of these changes, while the operating leverage inherent in our business is expected to be temporarily reduced.

"We're also introducing a meaningful share repurchase authorization that gives us the ability to re-acquire outstanding shares of our common stock at a discount to our August 2020 offering price. We believe these actions will set the groundwork for continued low to mid-teens organic long-term revenue growth rates, drive even higher profit growth rates and free cash flow, and create significant value in the years to come," concluded O'Connor.

**Quarterly Dividend**

The company's Board of Directors declared a cash dividend of $0.06 per share of the company's common stock, payable on February 6, 2023, to shareholders of record as of January 30, 2023. The declaration of any future dividends will be determined by the Board of Directors each quarter and will depend on earnings, financial condition, capital requirements, and other factors.

**Environmental, Social, and Governance (ESG)**

We focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our website to read our <u>ESG Report</u><u>.</u>

**Webcast and Conference Call Details**

Shawn O'Connor, chief executive officer, and Will Frederick, chief financial officer, will host a conference call and webcast today at 5 p.m. Eastern Standard Time to discuss details of the company's performance for the quarter and certain forward-looking information. The call may be accessed by registering <u>here</u> or by calling 1-201-389-0879. The webcast will be available on our website under <u>Conference Calls & Presentations</u>. A replay of the webcast will be available on the website approximately one hour following the call.

**Non-GAAP Definition**

Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, and any acquisition or financial transaction-related expenses. Adjusted EBITDA represents a measure that we believe is customarily used by investors and analysts to evaluate the financial performance of companies in addition to the GAAP measures that we present. Our management also believes that Adjusted EBITDA is useful in evaluating our core operating results. However, Adjusted EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income or operating income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. The company's Adjusted EBITDA measure may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring, unusual items.

**About Simulations Plus**

Serving clients worldwide for more than 25 years, Simulations Plus is a leading provider in the biosimulation market providing software and consulting services supporting drug discovery, development, research, and regulatory submissions. We offer solutions that bridge machine learning, physiologically based pharmacokinetics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. Our technology is licensed and applied by major pharmaceutical, biotechnology, and regulatory agencies worldwide. For more information, visit our website at <u>www.simulations-plus.com</u>. Follow us on <u>LinkedIn</u> \| <u>Twitter</u> \| <u>YouTube</u>.

**Forward-Looking Statements**

Except for historical information, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Words like "believe," "expect," and "anticipate" mean that these are our best estimates as of this writing, but 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, market conditions, our ability to identify and enter into a definitive agreement with a broker to administer the share repurchase plan authorized by our Board, 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.

**Investor Relations Contacts**:

Brian Siegel, IRC, MBA

Senior Managing Director

Hayden IR

346-396-8696

<u>brian@haydenir.com</u>

Renee Bouche

Simulations Plus Investor Relations

661-723-7723

<u>renee.bouche@simulations-plus.com</u>

--Tables follow—

------

**SIMULATIONS PLUS, INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

(Unaudited)

---

| | | |
|:---|:---|:---|
| | **Three Months Ended November 30,** | **Three Months Ended November 30,** |
|<br>(in thousands, except per common share amounts) | **2022** | **2021** |
| **Revenues** |  |  |
| &nbsp;&nbsp;Software | $6074 | $7362 |
| &nbsp;&nbsp;Services | 5890 | 5055 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 11964 | 12417 |
| **Cost of revenues** |  |  |
| &nbsp;&nbsp;Software | 885 | 735 |
| &nbsp;&nbsp;Services | 1786 | 2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cost of revenues | 2671 | 2756 |
| **Gross profit** | 9293 | 9661 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;Research and development | 1166 | 882 |
| &nbsp;&nbsp;Selling, general, and administrative | 7249 | 4988 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 8415 | 5870 |
| **Income from operations** | 878 | 3791 |
| Other income, net | 740 | 65 |
| **Income before income taxes** | 1618 | 3856 |
| Provision for income taxes | (373) | (830) |
| **Net income** | $1245 | $3026 |
| **Earnings per share** |  |  |
| &nbsp;&nbsp;Basic | $0.06 | $0.15 |
| &nbsp;&nbsp;Diluted | $0.06 | $0.15 |
| **Weighted-average common shares outstanding** |  |  |
| &nbsp;&nbsp;Basic | 20286 | 20150 |
| &nbsp;&nbsp;Diluted | 20825 | 20746 |
| **Other comprehensive (loss) income, net of tax** |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustments | 53 | (237) |
| **Comprehensive income** | $1298 | $2789 |

---

------

**SIMULATIONS PLUS, INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
| | (Unaudited) | (Audited) |
|<br>(in thousands, except share and per share amounts) | **November 30, 2022** | **August 31, 2022** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $49392 | $51567 |
| &nbsp;&nbsp;Accounts receivable, net of allowance for doubtful accounts of $12 and $12 | 11699 | 13787 |
| &nbsp;&nbsp;Prepaid income taxes | 992 | 1391 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | 4512 | 3377 |
| &nbsp;&nbsp;Short-term investments | 82139 | 76668 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 148734 | 146790 |
| **Long-term assets** |  |  |
| &nbsp;&nbsp;Capitalized computer software development costs, net of accumulated amortization of $16,060 and $15,672 | 10070 | 9563 |
| &nbsp;&nbsp;Property and equipment, net | 682 | 632 |
| &nbsp;&nbsp;Operating lease right-of-use assets | 1305 | 1420 |
| &nbsp;&nbsp;Intellectual property, net of accumulated amortization of $8,201 and $7,928 | 8709 | 9057 |
| &nbsp;&nbsp;Other intangible assets, net of accumulated amortization of $1,691 and $2,662 | 7470 | 7560 |
| &nbsp;&nbsp;Goodwill | 12921 | 12921 |
| &nbsp;&nbsp;Other assets | 570 | 439 |
| **Total assets** | $**190461** | $**188382** |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;Accounts payable | $238 | $225 |
| &nbsp;&nbsp;Accrued compensation | 2379 | 3254 |
| &nbsp;&nbsp;Accrued expenses | 1910 | 931 |
| &nbsp;&nbsp;Operating lease liability - current portion | 448 | 461 |
| &nbsp;&nbsp;Deferred revenue | 3064 | 2864 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 8039 | 7735 |
| **Long-term liabilities** |  |  |
| &nbsp;&nbsp;Deferred income taxes, net | 1456 | 1456 |
| &nbsp;&nbsp;Operating lease liability | 844 | 943 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 10339 | 10134 |
| Commitments and contingencies |  |  |
| Shareholders' equity |  |  |
| &nbsp;&nbsp;Preferred stock, $0.001 par value - 10,000,000 shares authorized; no shares issued and outstanding | $— | $— |
| &nbsp;&nbsp;Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 20,313,755 and 20,260,070 shares issued and outstanding | 140306 | 138512 |
| &nbsp;&nbsp;Retained earnings | 40071 | 40044 |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (255) | (308) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 180122 | 178248 |
| **Total liabilities and shareholders' equity** | $**190461** | $**188382** |

---

------

**SIMULATIONS PLUS, INC.**

**Trended Financial Information\***

(Unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| (in millions except earnings per share amounts) | **FY 2022** | **FY 2022** | **FY 2022** | **FY 2022** | **FY 2023** | **2022** |
| (in millions except earnings per share amounts) | **Q1** | **Q2** | **Q3** | **Q4** | **Q1** | **FY** |
| **<u>Revenue</u>** |  |  |  |  |  |  |
| &nbsp;&nbsp;Software | $7.4 | $9.8 | $9.6 | $5.9 | $6.1 | $32.7 |
| &nbsp;&nbsp;Services | 5.0 | 5.0 | 5.3 | 5.8 | 5.9 | 21.2 |
| &nbsp;&nbsp;Total | $12.4 | $14.8 | $15.0 | $11.7 | $12.0 | $53.9 |
| **<u>Gross Margin</u>** |  |  |  |  |  |  |
| &nbsp;&nbsp;Software | 90.0% | 92.0% | 92.4% | 86.1% | 85.4% | 90.6% |
| &nbsp;&nbsp;Services | 60.0% | 59.3% | 65.6% | 68.2% | 69.7% | 63.5% |
| &nbsp;&nbsp;Total | 77.8% | 80.9% | 82.9% | 77.2% | 77.7% | 79.9% |
| Income from operations | $3.8 | $5.5 | $4.9 | $0.7 | $0.9 | $14.9 |
| Operating Margin | 30.6% | 37.0% | 33.1% | 5.9% | 7.3% | 27.7% |
| Net Income | $3.0 | $4.4 | $4.1 | $1.0 | $1.2 | $12.5 |
| Diluted Earnings Per Share | $0.15 | $0.21 | $0.20 | $0.05 | $0.06 | $0.60 |
| Adjusted EBITDA | $5.3 | $7.2 | $6.3 | $2.3 | $3.0 | $21.0 |
| Cash Flow from Operations | $3.6 | $2.6 | $3.8 | $7.9 | $4.7 | $17.9 |
| **<u>Revenue Breakdown by Region</u>** |  |  |  |  |  |  |
| &nbsp;&nbsp;Americas | $8.5 | $9.7 | $11.2 | $8.4 | $8.5 | $37.7 |
| &nbsp;&nbsp;EMEA | 3.0 | 3.7 | 1.9 | 1.7 | 2.1 | 10.4 |
| &nbsp;&nbsp;Asia Pacific | 0.9 | 1.4 | 1.9 | 1.6 | 1.3 | 5.8 |
| &nbsp;&nbsp;Total | $12.4 | $14.8 | $15.0 | $11.7 | $12.0 | $53.9 |
| **<u>Software Performance Metrics</u>** |  |  |  |  |  |  |
| &nbsp;&nbsp;Average Revenue per Customer (in 000s) |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial | $71.0 | $101.0 | $95.0 | $65.0 | $68.0 |  |
| **<u>Services Performance Metrics</u>** |  |  |  |  |  |  |
| &nbsp;&nbsp;Backlog | $15.4 | $17.0 | $16.7 | $15.9 | $15.8 |  |

---

*\*Numbers may not add due to rounding*

------

**SIMULATIONS PLUS, INC.**

**Reconciliation of Adjusted EBITDA to Net Income\***

(Unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **FY 2022** | **FY 2022** | **FY 2022** | **FY 2022** | **FY 2023** | **2022** |
| (in millions) | **Q1** | **Q2** | **Q3** | **Q4** | **Q1** | **FY** |
| Net Income | $3 | $4.4 | $4.1 | $1 | $1.2 | $12.5 |
| Excluding: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income and expense, net | (0.1) | (0.1) | (0.1) | (0.4) | (0.8) | (0.7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | 0.8 | 1.1 | 0.7 | (0.1) | 0.4 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 0.8 | 1.0 | 0.9 | 0.9 | 0.9 | 3.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 0.6 | 0.7 | 0.7 | 0.7 | 0.9 | 2.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mergers & Acquisitions expense |  |  |  | 0.3 | 0.3 | 0.3 |
| Adjusted EBITDA | $5.3 | $7.2 | $6.3 | $2.3 | $3.0 | $21.0 |

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*\*Numbers may not add due to rounding*

## Exhibit 99.2

![](slpearningscalldeck231-f001.jpg)

1 \| NASDAQ: SLP January 4, 2023 1 Earnings Call - Q1 - FY23

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2 \| NASDAQ: SLP With the exception of historical information, the matters discussed in this presentation 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. Safe Harbor Statement

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![](slpearningscalldeck231-f003.jpg)

3 \| NASDAQ: SLP • First quarter results in line with guidance • Revenue seasonality impacted by expected shift in software renewal timing ◦ Some slowdown in buying activity pushed to calendar 2023 budgets ◦ $0.3M constant currency negative impact on revenue • Profitability impacted by investment in people and seasonally low revenue quarter $0.06 Diluted EPS $12M Revenue 25% Adj. EBITDA as % of Revenue $16M Backlog First Quarter Highlights

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![](slpearningscalldeck231-f004.jpg)

4 \| NASDAQ: SLP • FDA collaborations to enhance product capabilities • Virtual Bioequivalence trial simulations for regulatory accelerated approval • GastroPlus® used to support new dosing regimens and accelerate approval • QSP clinical trial optimization • NAFLDsym® used to reprioritize pipeline • DILIsym® informs dosing for liver safety • Clinical trial simulation predictions used for investment prioritization • GastroPlus® used to support First in Human dose selection Supporting Client Success

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![](slpearningscalldeck231-f005.jpg)

5 \| NASDAQ: SLP GastroPlus® MonolixSuite®-1% • 10 new customers • 2 upsells to existing customers First Quarter Software Highlights -24% • 1 new customer • 8 upsells to existing customers • 14 peer reviewed journal articles published in Q1 ADMET Predictor® • 4 new customers • 5 upsells to existing customers -25% Q1 Revenue Decline Q1 Revenue Decline Q1 Revenue Decline General • Overall software revenue decline of 17% • Renewal pattern and revenue seasonality shifting as anticipated • Slower pace of new sales with new customers delaying purchases to new budget year • University+ program has 266 individual licenses across 54 countries

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![](slpearningscalldeck231-f006.jpg)

6 \| NASDAQ: SLP PBPK QSP/QST PKPD First Quarter Services Highlights +23% -28% +74% Q1 Revenue Growth Q1 Revenue Decline Q1 Revenue Growth General • Overall service revenue growth 17% • Total backlog $15.8M • Successful recruiting quarter despite continued competitive market • Shift to higher margin time and materials contracts vs fixed priced projects with positive margin impact • Multiple new client relationships • Nature of QSP/QST projects more volatile • Reflects deeper implementation of PBPK modeling – expanding use cases and perceived value/impact

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![](slpearningscalldeck231-f007.jpg)

7 \| NASDAQ: SLP Capital Allocation Strategy Update • Acquisitions • Strategic investments and partnerships • $50M share repurchase program • $25M under accelerated share repurchase (ASR) • Maintain current level • Product R&D • Employee Recruiting and Retention • Enterprise Technologies Corporate Development Share Repurchases Dividend Payments Internal Reinvestment

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![](slpearningscalldeck231-f008.jpg)

8 \| NASDAQ: SLP FY23 Guidance Total Revenue $59.3M to $62.0M Total Revenue Growth 10% to 15% Software Revenue Mix 60% to 65% Service Revenue Mix 35% to 40% Diluted EPS $0.63 to $0.67

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![](slpearningscalldeck231-f009.jpg)

9 \| NASDAQ: SLP Financial Results

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![](slpearningscalldeck231-f010.jpg)

10 \| NASDAQ: SLP Q4 Revenue (in millions) $6.2 $7.4 $6.1 $4.5 $5.1 $5.8 $10.7 $12.4 $12.0 Software Services 1Q21 1Q22 1Q23 51%49% Software Services (in millions) 59% 41% Software ServicesSoftware RevenueTotal Revenue Services Revenue Revenue - Q1 -4% -17% +17% 1Q23 Mix 1Q22 Mix

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![](slpearningscalldeck231-f011.jpg)

11 \| NASDAQ: SLP Gross Margin Trends - Q1 87% 90% 85% 64% 60% 70% 77% 78% 78% Software Services Total 1Q21 1Q22 1Q23

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![](slpearningscalldeck231-f012.jpg)

12 \| NASDAQ: SLP Software Product as % of Software Revenue 1Q23 Other 50% 26% 18% 6% 54% 21% 20% 5% 1Q22 Other Software Revenue by Product

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![](slpearningscalldeck231-f013.jpg)

13 \| NASDAQ: SLP Avg. Revenue per Customer (in thousands) Software Performance Metrics - Q1 Commercial Customers Renewal Rates $74 $71 $68 1Q21 1Q22 1Q23 87% 93% 82% 95% 96% 90% Accounts Fees 1Q21 1Q22 1Q23

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![](slpearningscalldeck231-f014.jpg)

14 \| NASDAQ: SLP Services as % of Service Revenue 1Q23 49% 18% 25% 8% 46% 29% 17% 8% 1Q22 Service Revenue by Type PKPD QSP/QST PBPK Other PKPD QSP/QST PBPK Other

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![](slpearningscalldeck231-f015.jpg)

15 \| NASDAQ: SLP Backlog Services Performance Metrics Total Projects 121 169 193 57 67 70 12 22 2438 55 73 14 25 26 PKPD QSP/QST PBPK Other 1Q21 1Q22 1Q23 $12 $15 $16 Backlog (in millions) 1Q21 1Q22 1Q23

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![](slpearningscalldeck231-f016.jpg)

16 \| NASDAQ: SLP Income Statement Summary - Q1 (in millions, except Diluted EPS) 1Q23 % of Rev 1Q22 % of Rev Revenue $12.0 100% $12.4 100% Revenue growth (4)% 16% Gross profit 9.3 78% 9.7 78% R&D 1.2 10% 0.9 7% SG&A 7.2 61% 5.0 40% Total operating exp 8.4 70% 5.9 47% Income from operations 0.9 7% 3.8 31% Income before income taxes 1.6 14% 3.9 31% Income taxes (0.4) 3% (0.8) 7% Effective tax rate 23% 22% Net income $1.2 10% $3.0 24% Diluted earnings per share (in dollars) 0.06 0.15 Adjusted EBITDA $3.0 25% $5.3 42%

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![](slpearningscalldeck231-f017.jpg)

17 \| NASDAQ: SLP Balance Sheet Summary (in millions) November 30, 2022 August 31, 2022 Cash and short-term investments $131.5 $128.2 Total current assets 148.7 146.8 Total assets $190.5 $188.4 Current liabilities 8.0 7.7 Long-term liabilities 2.3 2.4 Total liabilities 10.3 10.1 Shareholders' equity 180.1 178.2 Total liabilities and shareholders' equity $190.5 $188.4

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![](slpearningscalldeck231-f018.jpg)

18 \| NASDAQ: SLP FY23 Outlook Commentary Commentary • Q2 revenue growth 7% to 11% • Fixed total costs = cost of revenue + R&D expense + SG&A expense • Fiscal year trends on-track • Interest income and share repurchase • Q2 diluted EPS $0.17 to $0.19 Guidance Total Revenue $59.3M to $62.0M Total Revenue Growth 10% to 15% Software Revenue Mix 60% to 65% Service Revenue Mix 35% to 40% Diluted EPS $0.63 to $0.67

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19 \| NASDAQ: SLP Conclusion • Delivering on our commitment to scientific leadership ◦ Internal R&D investment ◦ Expanding industry and regulatory partnerships • Enhancing our client facing capabilities ◦ Growth and maturity of business development team ◦ Focus on expanding our local coverage of EU market ◦ Focus on supporting accelerated growth in distributor network • Challenges being addressed ◦ Evolving seasonality due to software renewal timing changes ◦ Continued competitive market for scientific talent ◦ General market dynamics: inflation, recession & forex • Focus on Capital Allocation ◦ Internal reinvestment ◦ Broader acquisition and strategic investment approach ◦ Stock repurchase program CONTINUED LEADERSHIP POSITION IN BIOSIMULATION MARKET WELL POSITIONED TO ACHIEVE OUR FY23 GOALS

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