Cognigen Corp.

Fiscal 2024 revenue grew 18% year-over-year to $70 million, with diluted earnings per share (EPS) of $0.49 Provides fiscal 2025 revenue guidance of $90 to $93 million (+28% to +33%) and adjusted diluted EPS guidance of $1.07 to $1.20 LANCASTER, Calif.--(BUSINESS WIRE)--Simulations Plus, Inc. (Nasdaq: SLP) (“Simulations Plus”), a leading provider of biosimulation, simulation-enabled performance and intelligence solutions, and medical communications to the biopharma industry, today reported financial results for its fourth quarter and fiscal 2024, ended August 31, 2024. Fourth Quarter 2024 Financial Highlights (compared to fourth quarter 2023) Total revenue increased 19% to $18.7 million Software revenue increased 6% to $9.9 million, representing 53% of total revenue Services revenue increased 39% to $8.8 million, representing 47% of total revenue Gross profit of $6.8 million; gross margin was 37% Adjusted EBITDA of $4.1 million, representing 22% of total revenue, compared to $4.9 million, representing 31% of total revenue Net income of $0.8 million and diluted EPS of $0.04 versus net income of $0.5 million and diluted EPS of $0.03 Adjusted diluted EPS of $0.06, excluding the impact of acquisition costs, versus adjusted diluted EPS of $0.18 Full Year 2024 Financial Highlights (compared to full year 2023) Total revenue increased 18% to $70.0 million Software revenue increased 12% to $41.0 million, representing 59% of total revenue Services revenue increased 26% to $29.0 million, representing 41% of total revenue Gross profit of $43.2 million; gross margin was 62% Adjusted EBITDA of $20.3 million, representing 29% of total revenue, compared to $20.6 million, representing 35% of total revenue Net income of $10.0 million and diluted EPS of $0.49, equivalent to the prior period Adjusted diluted EPS of $0.53, excluding the impact of acquisition costs, versus adjusted diluted EPS of $0.67 Management Commentary “Our fiscal year 2024 results reflected strong performance in both our software and services segments,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Total revenue increased 18%, driven by upgrade releases that advanced our biosimulation leadership across all of our main platforms, including GastroPlus ® , MonolixSuite™ and ADMET Predictor ® . Organic revenue growth, excluding the fourth quarter revenue contribution from Pro-ficiency , was 14%. Software revenue increased 12%, led by our Clinical Pharmacology & Pharmacometrics (CPP) business unit with its MonolixSuite platform expanding by 20%. Our services segment delivered notable strength, increasing by 26% and exceeding our internal expectations, led by robust growth in our Quantitative Systems Pharmacology (QSP) and CPP business units. “In June, we acquired Pro-ficiency, the largest and most significant M&A transaction in our Company’s history. This acquisition doubled our total addressable market to $8 billion and is expected to accelerate future growth by expanding our ability to support clients across clinical operations, medical affairs, and commercialization. The integration is progressing ahead of schedule, and we anticipate that our newly combined go-to-market strategies will drive additional business development opportunities. Additionally, our shared scientific and technological capabilities are expected to deliver enhanced products and services, further benefiting our clients. “Overall, we had a successful year and furthered our leadership position with a one-of-a-kind platform that spans the drug development value chain. I want to thank our expanded team for their unwavering dedication to create value for our customers through innovative science-based software and consulting solutions that optimize treatment options and improve patient lives. “Looking ahead, we anticipate healthy revenue growth in fiscal 2025. Based upon current market conditions, organic growth is expected to be in the range of 10% to 15%. In addition, the Pro-ficiency acquisition – which encompasses our Adaptive Learning and Insights (ALI) and Medical Communications (MC) business units – is expected to contribute $15 to $18 million. Our fiscal 2025 guidance is as follows: Fiscal 2025 Guidance Fiscal 2025 Guidance Revenue $90M - $93M Revenue growth 28 - 33% Software mix 55 - 60% Adjusted EBITDA margin 31 - 33% Adjusted diluted EPS $1.07 - $1.20 “Moving on to market conditions, the funding environment in both pharma and biotech has been constrained for two consecutive years. While we are encouraged by initial budget discussions with our clients for calendar year 2025, we are maintaining our cautiously optimistic approach, consistent with the strategy we’ve employed over the past few years. Importantly, we believe that we are well-positioned to respond if there is an uptick in spending during the year. “Finally, our near-term priorities include completing the acquisition integration, expanding cross-selling opportunities, and driving towards our historical adjusted EBITDA margin target of 35-40% and corresponding profitability levels. We remain committed to executing our disciplined growth strategy and delivering long-term value for our stakeholders,” concluded O’Connor. Webcast and Conference Call Details Shawn O’Connor, Chief Executive Officer, and Will Frederick, Chief Financial and Operating Officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of the Company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international) or by clicking on this Call me™ link to request a return call. The webcast can be accessed on the investor relations page of the Simulations Plus website where it will also be available for replay approximately one hour following the call. Non-GAAP Definitions This press release contains “non-GAAP financial measures,” which are measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). A further explanation and reconciliation of these non-GAAP financial measures is included below and in the financial tables in this release. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. Adjusted EBITDA and Adjusted Diluted EPS represent measures that we believe are 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 these measures are useful in evaluating our core operating results. However, Adjusted EBITDA and Adjusted Diluted EPS are not measures of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to net income, operating income, or diluted EPS as indicators of our operating performance or to net cash provided by operating activities as a measure of our liquidity. We believe the Company’s Adjusted EBITDA and Adjusted Diluted EPS measures provide information that is directly comparable to that provided by other peer companies in our industry, but other companies may calculate non-GAAP financial results differently, particularly related to nonrecurring, unusual items. Please note that the Company has not reconciled the adjusted EBITDA or adjusted diluted earnings per share forward-looking guidance included in this press release to the most directly comparable GAAP measures because this cannot be done without unreasonable effort due to the variability and low visibility with respect to costs related to acquisitions, financings, and employee stock compensation programs, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results. Adjusted EBITDA Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, (gain) loss on currency exchange, any acquisition- or financial-transaction-related expenses, change in value of contingent consideration, and any asset impairment charges. Currency exchange excluded represents the exchange rate fluctuations on the foreign-currency-denominated transactions. The impact of transactions in foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. Adjusted Diluted EPS Adjusted Diluted EPS is calculated based on net income excluding the impact related to the previous items. Adjusted Diluted EPS for fiscal 2024 is calculated based on net income excluding the impact of any acquisition- or financial-transaction-related expenses, any asset impairment charges, change in value of contingent consideration, and tax provisions/benefits related to the previous items. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. About Simulations Plus With more than 25 years of experience serving clients globally, Simulations Plus stands as a premier provider in the biopharma sector, offering advanced software and consulting services that enhance drug discovery, development, research, clinical trial operations, regulatory submissions, and commercialization. Our comprehensive biosimulation solutions integrate artificial intelligence/machine learning (AI/ML), physiologically based pharmacokinetics, physiologically based biopharmaceutics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. We also deliver simulation-enabled performance and intelligence solutions alongside medical communications support for clinical and commercial drug development. Our cutting-edge technology is licensed and utilized by leading pharmaceutical, biotechnology, and regulatory agencies worldwide. For more information, visit our website at . Follow us on LinkedIn | X | YouTube . Environmental, Social, and Governance 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 2023 ESG update . 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 successfully integrate the Pro-ficiency business with our own as well as expenses we may incur in connection therewith, 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, market conditions, macroeconomic factors, 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. SIMULATIONS PLUS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Years ended August 31, (in thousands, except per common share amounts) 2024 2023 2022 Revenues Software $ 41,024 $ 36,517 $ 32,642 Services 28,989 23,060 21,264 Total revenues 70,013 59,577 53,906 Cost of revenues Software 6,478 3,627 3,060 Services 20,384 8,003 7,762 Total cost of revenues 26,862 11,630 10,822 Gross profit 43,151 47,947 43,084 Operating expenses Research and development 5,754 4,504 3,208 Sales and marketing 8,915 6,558 4,879 General and administrative 22,351 28,160 20,086 Total operating expenses 37,020 39,222 28,173 Income from operations 6,131 8,725 14,911 Other income 6,280 2,970 204 Income before income taxes 12,411 11,695 15,115 Provision for income taxes (2,457 ) (1,734 ) (2,632 ) Net income $ 9,954 $ 9,961 $ 12,483 Earnings per share Basic $ 0.50 $ 0.50 $ 0.62 Diluted $ 0.49 $ 0.49 $ 0.60 Weighted-average common shares outstanding Basic 19,987 20,075 20,196 Diluted 20,301 20,465 20,749 Other comprehensive (loss) income, net of tax Foreign currency translation adjustments (105 ) 167 (265 ) Unrealized losses on available-for-sale securities $ (5 ) $ — $ — Comprehensive income $ 9,844 $ 10,128 $ 12,218 SIMULATIONS PLUS, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) August 31, 2024 August 31, 2023 ASSETS Current assets Cash and cash equivalents $ 10,311 $ 57,523 Accounts receivable, net of allowance for credit losses of $149 and $46 9,136 10,201 Prepaid income taxes 2,197 804 Prepaid expenses and other current assets 7,753 3,904 Short-term investments 9,944 57,940 Total current assets 39,341 130,372 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $18,727 and $17,199 12,499 11,335 Property and equipment, net 812 671 Operating lease right-of-use assets 1,027 1,247 Intellectual property, net of accumulated amortization of $5,490 and $9,301 23,130 8,689 Other intangible assets, net of accumulated amortization of $3,177 and $2,107 23,210 12,825 Goodwill 96,078 19,099 Deferred tax assets — 1,438 Other assets 542 425 Total assets $ 196,639 $ 186,101 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable $ 602 $ 144 Accrued compensation 4,513 4,392 Accrued expenses 2,043 659 Contracts payable 2,440 3,250 Operating lease liability - current portion 475 442 Deferred revenue 1,996 3,100 Total current liabilities 12,069 11,987 Long-term liabilities Deferred income taxes, net 1,608 — Operating lease liability 531 755 Contracts payable – net of current portion — 3,330 Total liabilities 14,208 16,072 Commitments and contingencies — — Shareholders’ equity Preferred stock, $0.001 par value - 10,000,000 shares authorized; no shares issued and outstanding $ — $ — Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 20,051,134 and 19,937,961 shares issued and outstanding 152,328 144,974 Retained earnings 30,354 25,196 Accumulated other comprehensive loss (251 ) (141 ) Total shareholders’ equity 182,431 170,029 Total liabilities and shareholders’ equity $ 196,639 $ 186,101 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full Year Full Year Full Year Revenue Software $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 7.6 $ 11.6 $ 11.9 $ 9.9 $ 32.7 $ 36.5 $ 41.0 Services $ 5.9 $ 5.3 $ 5.6 $ 6.3 $ 6.9 $ 6.7 $ 6.6 $ 8.8 $ 21.2 $ 23.1 $ 29.0 Total $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 18.3 $ 18.5 $ 18.7 $ 53.9 $ 59.6 $ 70.0 Gross Margin Software 85.4 % 92.0 % 91.5 % 89.4 % 86.9 % 88.4 % 88.2 % 72.4 % 90.6 % 90.1 % 84.2 % Services 69.7 % 66.2 % 63.4 % 62.1 % 47.0 % 44.2 % 41.4 % -4.0 % 63.5 % 65.3 % 29.7 % Total 77.7 % 83.4 % 81.8 % 78.4 % 67.9 % 72.2 % 71.5 % 36.6 % 79.9 % 80.5 % 61.6 % Income from operations $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 1.0 $ 4.4 $ 1.9 $ (1.2 ) $ 14.9 $ 8.7 $ 6.1 Operating Margin 7.3 % 25.6 % 25.2 % -1.8 % 6.6 % 24.3 % 10.1 % -6.2 % 27.7 % 14.6 % 8.8 % Net Income $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 3.1 $ 0.8 $ 12.5 $ 10.0 $ 10.0 Diluted Earnings Per Share $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.20 $ 0.15 $ 0.04 $ 0.60 $ 0.49 $ 0.49 Adjusted EBITDA $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 7.1 $ 5.6 $ 4.1 $ 21.5 $ 20.6 $ 20.3 Adjusted Diluted EPS $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.09 $ 0.22 $ 0.17 $ 0.06 $ 0.63 $ 0.67 $ 0.53 Cash Flow from Operations $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 0.2 $ 5.8 $ 5.7 $ 1.6 $ 17.9 $ 21.9 $ 13.3 Revenue Breakdown by Region Americas $ 8.5 $ 10.6 $ 10.8 $ 11.0 $ 10.9 $ 12.5 $ 12.4 $ 14.7 $ 37.7 $ 40.8 $ 50.4 EMEA 2.1 3.6 3.4 2.6 2.3 4.7 4.5 2.6 10.4 11.7 14.1 Asia Pacific 1.3 1.5 2.1 2.1 1.3 1.2 1.6 1.4 5.8 7.0 5.5 Total $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 18.3 $ 18.5 $ 18.7 $ 53.9 $ 59.6 $ 70.0 Software Performance Metrics Average Revenue per Customer (in thousands) Commercial $ 68.0 $ 110.0 $ 97.0 88.0 $ 79.0 $ 113.0 $ 97.0 $ 89.0 Services Performance Metrics Backlog (in millions) $ 15.8 $ 15.4 $ 15.7 $ 19.5 $ 18.9 $ 18.0 $ 19.6 $ 14.1 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full Year Full Year Full Year Net Income $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 3.1 $ 0.8 $ 12.5 $ 10.0 $ 10.0 Excluding: Interest income and expense, net (0.8 ) (1.0 ) (1.1 ) (1.3 ) (1.3 ) (1.3 ) (1.5 ) (0.2 ) (0.7 ) (4.1 ) (4.4 ) Provision for income taxes 0.4 0.9 0.9 (0.5 ) 0.5 1.2 0.8 — 2.6 1.7 2.5 Depreciation and amortization 0.9 0.9 0.9 1.1 1.1 1.1 1.3 2.2 3.6 3.9 5.7 Stock-based compensation 0.9 1.2 1.1 1.1 1.3 1.6 1.7 1.4 2.7 4.2 5.9 (Gain) loss on currency exchange — — 0.3 0.2 — 0.1 — (0.4 ) 0.2 0.5 (0.4 ) Impairment of other intangibles — — — 0.5 — — — — — 0.5 — Change in value of contingent consideration — — — 0.7 (0.1 ) 0.4 (0.6 ) (1.4 ) 0.3 0.7 (1.6 ) Mergers & Acquisitions expense 0.3 0.1 0.4 2.5 — — 0.9 1.7 0.3 3.3 2.6 Adjusted EBITDA $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 7.1 $ 5.6 $ 4.1 $ 21.5 $ 20.6 $ 20.3 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted Diluted EPS to Diluted EPS* (Unaudited) (in millions, except Diluted EPS and Adjusted Diluted EPS) FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Full Year Full Year Full Year Net Income (GAAP) $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 3.1 $ 0.8 $ 12.5 $ 10.0 $ 10.0 Excluding: Mergers & Acquisitions expense 0.3 0.1 0.4 0.9 — — 0.9 1.7 0.3 1.7 2.6 Immunetrics transaction costs — — — 1.6 — — — — — 1.6 — Change in value of contingent consideration — — — 0.7 (0.1 ) 0.4 (0.6 ) (1.4 ) 0.3 0.7 (1.6 ) Cognigen trade name write-off — — — 0.5 — — — — — 0.5 — Tax effect on above adjustments (0.1 ) — (0.1 ) (0.5 ) — (0.1 ) (0.1 ) (0.1 ) (0.1 ) (0.7 ) (0.2 ) Adjusted Net income (Non-GAAP) $ 1.5 $ 4.2 $ 4.3 $ 3.7 $ 1.8 $ 4.4 $ 3.4 $ 1.1 $ 13.0 $ 13.8 $ 10.8 Weighted-average common shares outstanding: Diluted 20.8 20.5 20.4 20.4 20.3 20.3 20.4 20.3 20.7 20.5 20.3 Diluted EPS (GAAP) $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.20 $ 0.15 $ 0.04 $ 0.60 $ 0.49 $ 0.49 Adjusted Diluted EPS (Non-GAAP) $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.09 $ 0.22 $ 0.17 $ 0.06 $ 0.63 $ 0.67 $ 0.53 *Numbers may not add due to rounding Contacts Investor Relations Contacts : Lisa Fortuna Financial Profiles 310-622-8251 slp@finpro Renee Bouche Simulations Plus Investor Relations 661-723-7723 renee.bouche@simulations-plus.com

Total revenue of $18.5 million and diluted earnings per share (EPS) of $0.15 Maintains full-year revenue guidance of $69 to $72 million and updates EPS guidance LANCASTER, Calif.--(BUSINESS WIRE)-- Simulations Plus, Inc., (Nasdaq: SLP) (“Simulations Plus”), a leading provider of biosimulation, simulation-enabled performance and intelligence solutions, and medical communications for the biopharma industry, today reported financial results for its third quarter fiscal 2024, ended May 31, 2024. Third Quarter 2024 Financial Highlights (compared to third quarter 2023) Total revenue increased 14% to $18.5 million Software revenue increased 12% to $11.9 million, representing 64% of total revenue Services revenue increased 18% to $6.6 million, representing 36% of total revenue Gross profit was constant at $13.3 million; gross margin was 71% Adjusted EBITDA of $5.7 million, representing 31% of total revenue Net income of $3.1 million and diluted earnings per share (EPS) of $0.15 versus net income of $4.0 million and diluted EPS of $0.20 Adjusted diluted EPS excluding the impact of acquisition costs of $0.19 versus adjusted diluted EPS of $0.21 Nine Months 2024 Financial Highlights (compared to nine months 2023) Total revenue increased 17% to $51.3 million Software revenue increased 14% to $31.1 million, representing 61% of total revenue Services revenue increased 21% to $20.2 million, representing 39% of total revenue Gross profit increased 2% to $36.3 million; gross margin was 71% Adjusted EBITDA of $16.2 million, representing 32% of total revenue Net income of $9.1 million and diluted EPS of $0.45 versus net income of $9.4 million and diluted EPS of $0.46 Adjusted diluted EPS excluding the impact of acquisition costs was constant at of $0.49 Management Commentary “Our third quarter results reflected continued solid performance in both our software and services segments,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Total revenue increased 14%, led by higher software sales in our Cheminformatics and Clinical Pharmacology & Pharmacometrics (CPP) business units, with strong growth in our ADMET Predictor® and MonolixSuite™ platforms, respectively. Our Physiologically Based Pharmacokinetics (PBPK) business unit also performed well, reflecting higher revenues from GastroPlus®. During the quarter, we were excited to launch GastroPlus X, the next generation of physiologically based pharmacokinetics/biopharmaceutics (PBPK/PBBM) modeling and simulation software and believe it will become a meaningful addition to our suite of leading-edge solutions. The 18% increase in services revenue was driven by strong growth in our Quantitative Systems Pharmacology (QSP) and CPP business units. “Biotech funding is starting to show signs of recovery, most notably for companies that have drug candidates in the clinic. We continue to be cautiously optimistic about the funding environment for our biotech clients. We see a range of spending patterns among large pharmaceutical companies. Some are increasing expenditures, while others remain conservative, with most falling in between depending on various internal and external market factors. Overall, the market is in a better position today compared to a year ago. “Our acquisition of Pro-ficiency on June 11th brings together our collective expertise in simulations, AI technologies and focus on science, creating a one-of-a-kind platform that spans across the drug development continuum. The Pro-ficiency integration and collaboration is progressing in-line with our internal plan and schedule with positive responses from our clients. “Our performance in the first nine months of the year remains aligned with our original fiscal 2024 revenue guidance. The newly formed Clinical Simulations and Medical Communications (CSMC) business unit is expected to contribute approximately $3 million to our fiscal 2024 revenue. We are entering our final fiscal quarter of 2024 with a healthy pipeline and remain confident that Simulations Plus is well positioned to achieve its goals for the fiscal year. Going forward, we remain committed to a disciplined growth strategy that will deliver long-term returns for our shareholders.” Fiscal 2024 Guidance Fiscal 2024 Guidance Revenue $69M - $72M Revenue growth 15 - 20% Software mix 55 - 60% Services mix 40 - 45% Diluted EPS $0.46 - $0.48 Adjusted diluted EPS $0.54 - $0.56 Quarterly Dividend The Simulations Plus Board of Directors has determined to discontinue the Company’s quarterly cash dividend and reallocate these funds to our capital allocation strategy for investing in growth initiatives that are intended to generate long-term shareholder value. The final dividend of $0.06 per share of the Company’s common stock will be paid on August 5, 2024, to shareholders of record as of July 29, 2024. Environmental, Social, and Governance 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 2023 ESG update. Webcast and Conference Call Details Shawn O’Connor, Chief Executive Officer, and Will Frederick, Chief Financial and Operating Officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of the Company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international) or by clicking on this Call me™ link to request a return call. The webcast will be available on our website on the investor relations page of the Simulations Plus website at . A replay of the webcast will be available on the website approximately one hour following the call. Non-GAAP Definitions Adjusted EBITDA Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, (gain) loss on currency exchange, any acquisition- or financial-transaction-related expenses, and any asset impairment charges. Currency exchange excluded represents the exchange rate fluctuations on the foreign currency denominated transactions. The impact of transactions in foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. 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 nonrecurring, unusual items. Adjusted Diluted EPS Adjusted diluted EPS is calculated based on net income excluding the impact of any acquisition- or financial-transaction-related expenses, any asset impairment charges, and tax provisions / benefits related to the previous items. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. The Company believes that the use of non-GAAP measures helps investors to gain a better understanding of the Company’s core operating results and future prospects, consistent with how management measures and forecasts the Company’s performance, especially when comparing such results to previous periods or forecasts. About Simulations Plus With more than 25 years of experience serving clients globally, Simulations Plus stands as a premier provider in the Biopharma sector, offering advanced software and consulting services that enhance drug discovery, development, research, clinical trial operations, regulatory submissions, and commercialization. Our comprehensive biosimulation solutions integrate artificial intelligence/machine learning (AI/ML), physiologically based pharmacokinetics, quantitative systems pharmacology/toxicology, and population PK/PD modeling approaches. We also deliver simulation-enabled performance and intelligence solutions alongside medical communications support for clinical and commercial drug development. Our cutting-edge technology is licensed and utilized by leading pharmaceutical, biotechnology, and regulatory agencies worldwide. For more information, visit our website at . Follow us on LinkedIn | X | YouTube. 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 successfully integrate the Pro-ficiency business with our own, as well as expenses we may incur in connection therewith, 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, market conditions, macroeconomic factors, 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. SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended Nine Months Ended (in thousands, except per common share amounts) May 31, 2024 May 31, 2023 May 31, 2024 May 31, 2023 Revenues Software $ 11,908 $ 10,632 $ 31,111 $ 27,193 Services 6,636 5,602 20,238 16,755 Total revenues 18,544 16,234 51,349 43,948 Cost of revenues Software 1,400 908 3,739 2,636 Services 3,887 2,053 11,284 5,616 Total cost of revenues 5,287 2,961 15,023 8,252 Gross profit 13,257 13,273 36,326 35,696 Operating expenses Research and development 1,300 945 3,829 3,428 Sales and marketing 2,399 1,683 6,337 4,898 General and administrative 7,678 6,548 18,878 18,361 Total operating expenses 11,377 9,176 29,044 26,687 Income from operations 1,880 4,097 7,282 9,009 Other income 2,010 843 4,266 2,617 Income before income taxes 3,890 4,940 11,548 11,626 Provision for income taxes (753 ) (932 ) (2,437 ) (2,199 ) Net income $ 3,137 $ 4,008 $ 9,111 $ 9,427 Earnings per share Basic $ 0.16 $ 0.20 $ 0.46 $ 0.47 Diluted $ 0.15 $ 0.20 $ 0.45 $ 0.46 Weighted-average common shares outstanding Basic 19,995 19,972 19,972 20,123 Diluted 20,433 20,355 20,324 20,512 Other comprehensive (loss) income, net of tax Foreign currency translation adjustments (56 ) 144 (125 ) 174 Unrealized losses on available-for-sale securities $ (39 ) $ — $ (39 ) $ — Comprehensive income $ 3,042 $ 4,152 $ 8,947 $ 9,601 SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited) (in thousands, except share and per share amounts) May 31, 2024 August 31, 2023 ASSETS Current assets Cash and cash equivalents $ 109,092 $ 57,523 Accounts receivable, net of allowance for credit losses of $149 and $46 10,144 10,201 Prepaid income taxes 1,202 804 Prepaid expenses and other current assets 5,303 3,904 Short-term investments 9,875 57,940 Total current assets 135,616 130,372 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $18,502 and $17,199 12,614 11,335 Property and equipment, net 882 671 Operating lease right-of-use assets 948 1,247 Intellectual property, net of accumulated amortization of $10,498 and $9,301 7,492 8,689 Other intangible assets, net of accumulated amortization of $2,862 and $2,107 12,712 12,825 Goodwill 19,099 19,099 Deferred tax assets 2,804 1,438 Other assets 524 425 Total assets $ 192,691 $ 186,101 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 658 $ 144 Accrued compensation 4,111 4,392 Accrued expenses 894 659 Contracts payable 3,810 3,250 Operating lease liability - current portion 410 442 Deferred revenue 1,437 3,100 Total current liabilities 11,320 11,987 Long-term liabilities Operating lease liability 512 755 Contracts payable – net of current portion — 3,330 Total liabilities 11,832 16,072 Commitments and contingencies — — Shareholders' equity Preferred stock, $0.001 par value - 10,000,000 shares authorized; no shares issued and outstanding $ — $ — Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 20,007,488 and 19,937,961 shares issued and outstanding 150,451 144,974 Retained earnings 30,713 25,196 Accumulated other comprehensive loss (305 ) (141 ) Total shareholders' equity 180,859 170,029 Total liabilities and shareholders' equity $ 192,691 $ 186,101 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2023 FY 2024 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Full Year YTD Revenue Software $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 7.6 $ 11.6 $ 11.9 $ 36.5 $ 31.1 Services $ 5.9 $ 5.3 $ 5.6 $ 6.3 $ 6.9 $ 6.7 $ 6.6 $ 23.1 $ 20.2 Total $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 18.3 $ 18.5 $ 59.6 $ 51.3 Gross Margin Software 85.4 % 92.0 % 91.5 % 89.4 % 86.9 % 88.4 % 88.2 % 90.1 % 88.0 % Services 69.7 % 66.2 % 63.4 % 62.1 % 47.0 % 44.2 % 41.4 % 65.3 % 44.2 % Total 77.7 % 83.4 % 81.8 % 78.4 % 67.9 % 72.2 % 71.5 % 80.5 % 70.7 % Income from operations $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 1.0 $ 4.4 $ 1.9 $ 8.7 $ 7.3 Operating Margin 7.3 % 25.6 % 25.2 % -1.8 % 6.6 % 24.3 % 10.1 % 14.6 % 14.2 % Net Income $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 3.1 $ 10.0 $ 9.1 Diluted Earnings Per Share $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.20 $ 0.15 $ 0.49 $ 0.45 Adjusted EBITDA $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 7.1 $ 5.7 $ 20.6 $ 16.2 Adjusted Diluted EPS $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.20 $ 0.19 $ 0.67 $ 0.10 Cash Flow from Operations $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 0.2 $ 5.8 $ 5.7 $ 21.9 $ 11.7 Revenue Breakdown by Region Americas $ 8.5 $ 10.6 $ 10.8 $ 11.0 $ 10.9 $ 12.5 $ 12.4 $ 40.8 $ 35.8 EMEA 2.1 3.6 3.4 2.6 2.3 4.7 4.5 11.7 11.5 Asia Pacific 1.3 1.5 2.1 2.1 1.3 1.2 1.6 7.0 4.1 Total $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 18.3 $ 18.5 $ 59.6 $ 51.3 Software Performance Metrics Average Revenue per Customer (in thousands) Commercial $ 68.0 $ 110.0 $ 97.0 88.0 $ 79.0 $ 113.0 $ 97.0 Services Performance Metrics Backlog (in millions) $ 15.8 $ 15.4 $ 15.7 $ 19.5 $ 18.9 $ 18.0 $ 19.6 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Full Year Full Year YTD Net Income $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 3.1 $ 12.5 $ 10.0 $ 9.1 Excluding: Interest income and expense, net (0.8 ) (1.0 ) (1.1 ) (1.3 ) (1.3 ) (1.3 ) (1.5 ) (0.7 ) (4.1 ) (4.2 ) Provision for income taxes 0.4 0.9 0.9 (0.5 ) 0.5 1.2 0.8 2.6 1.7 2.4 Depreciation and amortization 0.9 0.9 0.9 1.1 1.1 1.1 1.3 3.6 3.9 3.5 Stock-based compensation 0.9 1.2 1.1 1.1 1.3 1.6 1.7 2.7 4.2 4.6 (Gain) loss on currency exchange — — 0.3 0.2 — 0.1 — 0.2 0.5 — Impairment of other intangibles — — — 0.5 — — — — 0.5 — Change in value of contingent consideration — — — 0.7 (0.1 ) 0.4 (0.6 ) 0.3 0.7 (0.3 ) Mergers & Acquisitions expense 0.3 0.1 0.4 2.5 — — 0.9 0.3 3.3 0.9 Adjusted EBITDA $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 7.1 $ 5.7 $ 21.5 $ 20.6 $ 16.2 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted Diluted EPS to Diluted EPS* (Unaudited) (in millions, except Diluted EPS and Adjusted Diluted EPS) FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Full Year Full Year YTD Net Income (GAAP) $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 3.1 $ 12.5 $ 10.0 $ 9.1 Excluding: Mergers & Acquisitions expense 0.3 0.1 0.4 0.9 — — 0.9 0.3 1.7 0.9 Immunetrics transaction costs — — — 2.3 — — — — 2.3 — Cognigen trade name write-off — — — 0.5 — — — — 0.5 — Tax effect on above adjustments (0.1 ) — (0.1 ) (0.5 ) — — (0.2 ) (0.1 ) (0.7 ) (0.2 ) Adjusted Net income (Non-GAAP) $ 1.5 $ 4.2 $ 4.3 $ 3.7 $ 1.9 $ 4.0 $ 3.9 $ 12.8 $ 13.8 $ 9.9 Weighted-average common shares outstanding: Diluted 20.8 20.5 20.4 20.4 20.3 20.3 20.4 20.7 20.5 20.3 Diluted EPS (GAAP) $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.20 $ 0.15 $ 0.60 $ 0.49 $ 0.45 Adjusted Diluted EPS (Non-GAAP) $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.20 $ 0.19 $ 0.61 $ 0.67 $ 0.49 *Numbers may not add due to rounding

Total revenue of $18.3 million and diluted earnings per share (EPS) of $0.20 Maintains full-year revenue guidance of $66 to $69 million (+10-15%) and EPS guidance of $0.66 to $0.68 LANCASTER, Calif.--(BUSINESS WIRE)-- Simulations Plus, Inc. (NASDAQ: SLP) (“Simulations Plus”), a leading provider of modeling and simulation software and services for pharmaceutical safety and efficacy, today reported financial results for its second quarter fiscal 2024, ended February 29, 2024. Second Quarter 2024 Financial Highlights (compared to second quarter 2023) Total revenue increased 16% to $18.3 million Software revenue increased 11% to $11.6 million, representing 63% of total revenue Services revenue increased 27% to $6.7 million, representing 37% of total revenue Gross profit increased to $13.2 million; gross margin was 72% Adjusted EBITDA of $7.1 million, representing 39% of total revenue Net income of $4.0 million and diluted earnings per share (EPS) of $0.20 versus net income of $4.2 million and diluted EPS of $0.20 Six Months 2024 Financial Highlights (compared to six months 2023) Total revenue increased 18% to $32.8 million Software revenue increased 16% to $19.2 million Services revenue increased 22% to $13.6 million Gross profit increased 3% to $23.1 million; gross margin was 70% Adjusted EBITDA of $10.5 million, representing 32% of total revenue Net income of $6.0 million and diluted EPS of $0.29 versus net income of $5.4 million and diluted EPS of $0.26 Management Commentary “Our second quarter results reflected strong performance in both our software and services segments,” said Shawn O’Connor, Chief Executive Officer of Simulations Plus. “Total revenue increased 16%, driven by higher software revenues in our Clinical Pharmacology & Pharmacometrics (CPP) business unit and the Cheminformatics business unit, whose ADMET Predictor® platform continued to gain adoption and added another new Artificial Intelligence (AI) biotech customer in the second quarter. Services revenue growth was primarily driven by higher revenues in our Quantitative Systems Pharmacology (QSP) and Physiologically Based Pharmacokinetics (PBPK) business units. “Since the beginning of calendar 2024, we have seen encouraging signs in biotech funding with notable strength from biotech companies that have candidates undergoing clinical trials. Regarding large pharmaceutical companies, funding continues to vary depending on their near-term direction and business outlook, but the overall market is healthier compared to a year ago. For the balance of 2024, we remain cautiously optimistic that demand for our comprehensive suite of modeling and simulation software products and services will continue to gain momentum as the funding environment improves. “During the quarter, we also launched our corporate development initiative to intensify our focus on strategic investments and partnerships in early-state technology companies. While strategic acquisitions to complement organic growth remain a priority, we believe there are hidden gems among early-stage companies developing high-potential technologies. We believe that our ability to identify and evaluate commercial applications for emerging technologies will complement our own R&D efforts and position Simulations Plus at the forefront of innovation. “Our strong performance in the first half of the year, combined with market improvement, puts us on track to achieve our guidance for fiscal 2024. We entered the third quarter with a healthy pipeline and a solid balance sheet, and we are confident that Simulations Plus is firmly positioned to advance its critical role in drug development workflow. Our unwavering focus remains on delivering disciplined growth and achieving long-term returns for our shareholders.” Fiscal 2024 Guidance Fiscal 2024 Guidance Annual Increase Revenue $66M - $69M 10 - 15% Software mix 55 - 60% — Services mix 40 - 45% — Diluted earnings per share $0.66 - $0.68 35 - 39% 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 May 6, 2024, to shareholders of record as of April 29, 2024. 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 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 2023 ESG update. Webcast and Conference Call Details Shawn O’Connor, chief executive officer, and Will Frederick, chief financial and operations officer, will host a conference call and webcast today at 5 p.m. Eastern Time to discuss the details of the Company’s performance for the quarter and certain forward-looking information. The call may be accessed by registering here or by calling 1-877-451-6152 (domestic) or 1-201-389-0879 (international) or by clicking on this Call me™ link to request a return call. The webcast will be available on our website under Conference Calls & Presentations. A replay of the webcast will be available on the website approximately one hour following the call. Non-GAAP Definitions Adjusted EBITDA Adjusted EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization, stock-based compensation, (gain) loss on currency exchange, any acquisition- or financial-transaction-related expenses, and any asset impairment charges. Currency exchange excluded represents the exchange rate fluctuations on the foreign currency denominated transactions. The impact of transactions in foreign currency represents the effect of converting revenue and expenses occurring in a currency other than the functional currency. The Company believes that the non-GAAP financial measures presented facilitate an understanding of operating performance and provide a meaningful comparison of its results between periods. The Company’s management uses non-GAAP financial measures to, among other things, evaluate its ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of performance-based compensation. 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 nonrecurring, unusual items. Adjusted Diluted EPS Adjusted diluted EPS is calculated based on net income excluding the impact of any acquisition- or financial-transaction-related expenses, any asset impairment charges, and tax provisions / benefits related to the previous items. The Company excludes the above items because they are outside of the Company’s normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. The Company believes that the use of non-GAAP measures helps investors to gain a better understanding of the Company’s core operating results and future prospects, consistent with how management measures and forecasts the Company’s performance, especially when comparing such results to previous periods or forecasts. 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 artificial intelligence (AI)/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 . Follow us on LinkedIn | X | YouTube. 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 successfully integrate the Immunetrics business with our own, as well as expenses we may incur in connection therewith, 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, market conditions, macroeconomic factors, 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. SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended Six Months Ended (in thousands, except per common share amounts) February 29, 2024 February 28, 2023 February 29, 2024 February 28, 2023 Revenues Software $ 11,614 $ 10,487 $ 19,203 $ 16,561 Services 6,691 5,263 13,602 11,153 Total revenues 18,305 15,750 32,805 27,714 Cost of revenues Software 1,348 843 2,339 1,728 Services 3,736 1,777 7,397 3,563 Total cost of revenues 5,084 2,620 9,736 5,291 Gross profit 13,221 13,130 23,069 22,423 Operating expenses Research and development 1,312 1,317 2,529 2,483 Sales and marketing 1,949 1,730 3,938 3,215 General and administrative 5,518 6,049 11,200 11,813 Total operating expenses 8,779 9,096 17,667 17,511 Income from operations 4,442 4,034 5,402 4,912 Other income 810 1,034 2,256 1,774 Income before income taxes 5,252 5,068 7,658 6,686 Provision for income taxes (1,223 ) (894 ) (1,684 ) (1,267 ) Net income $ 4,029 $ 4,174 $ 5,974 $ 5,419 Earnings per share Basic $ 0.20 $ 0.21 $ 0.30 $ 0.27 Diluted $ 0.20 $ 0.20 $ 0.29 $ 0.26 Weighted-average common shares outstanding Basic 19,975 20,112 19,961 20,200 Diluted 20,315 20,529 20,288 20,657 Other comprehensive (loss) income, net of tax Foreign currency translation adjustments (15 ) (23 ) (69 ) 30 Comprehensive income $ 4,014 $ 4,151 $ 5,905 $ 5,449 SIMULATIONS PLUS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Audited) (in thousands, except share and per share amounts) February 29, 2024 August 31, 2023 ASSETS Current assets Cash and cash equivalents $ 37,031 $ 57,523 Accounts receivable, net of allowance for credit losses of $30 and $46 13,114 10,201 Prepaid income taxes 1,364 804 Prepaid expenses and other current assets 4,975 3,904 Short-term investments 71,473 57,940 Total current assets 127,957 130,372 Long-term assets Capitalized computer software development costs, net of accumulated amortization of $17,962 and $17,199 12,333 11,335 Property and equipment, net 843 671 Operating lease right-of-use assets 1,062 1,247 Intellectual property, net of accumulated amortization of $10,117 and $9,301 7,873 8,689 Other intangible assets, net of accumulated amortization of $2,606 and $2,107 12,935 12,825 Goodwill 19,099 19,099 Long-term investments 9,024 — Deferred tax assets 2,323 1,438 Other assets 524 425 Total assets $ 193,973 $ 186,101 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 360 $ 144 Accrued compensation 3,184 4,392 Accrued expenses 2,992 659 Contracts payable 5,110 3,250 Operating lease liability - current portion 425 442 Deferred revenue 2,457 3,100 Total current liabilities 14,528 11,987 Long-term liabilities Operating lease liability 607 755 Contracts payable – net of current portion 1,800 3,330 Total liabilities 16,935 16,072 Commitments and contingencies — — Shareholders' equity Preferred stock, $0.001 par value - 10,000,000 shares authorized; no shares issued and outstanding $ — $ — Common stock, $0.001 par value and additional paid-in capital —50,000,000 shares authorized; 19,983,703 and 19,937,961 shares issued and outstanding 148,472 144,974 Retained earnings 28,776 25,196 Accumulated other comprehensive loss (210 ) (141 ) Total shareholders' equity 177,038 170,029 Total liabilities and shareholders' equity $ 193,973 $ 186,101 SIMULATIONS PLUS, INC. Trended Financial Information* (Unaudited) (in millions except earnings per share amounts) FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Full Year Full Year YTD Revenue Software $ 7.4 $ 9.8 $ 9.6 $ 5.9 $ 6.1 $ 10.5 $ 10.6 $ 9.3 $ 7.6 $ 11.6 $ 32.7 $ 36.5 $ 19.2 Services 5.0 5.0 5.3 5.8 5.9 5.3 5.6 6.3 6.9 6.7 21.2 23.1 13.6 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 18.3 $ 53.9 $ 59.6 $ 32.8 Gross Margin Software 90.0 % 92.0 % 92.4 % 86.1 % 85.4 % 92.0 % 91.5 % 89.4 % 86.9 % 88.4 % 90.6 % 90.1 % 87.8 % Services 60.0 % 59.3 % 65.6 % 68.2 % 69.7 % 66.2 % 63.4 % 62.1 % 47.0 % 44.2 % 63.5 % 65.3 % 45.6 % Total 77.8 % 80.9 % 82.9 % 77.2 % 77.7 % 83.4 % 81.8 % 78.4 % 67.9 % 72.2 % 79.9 % 80.5 % 70.3 % Income from operations $ 3.8 $ 5.5 $ 4.9 $ 0.7 $ 0.9 $ 4.0 $ 4.1 $ (0.3 ) $ 1.0 $ 4.4 $ 14.9 $ 8.7 $ 5.4 Operating Margin 30.6 % 37.0 % 33.1 % 5.9 % 7.3 % 25.6 % 25.2 % -1.8 % 6.6 % 24.3 % 27.7 % 14.6 % 16.5 % Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 12.5 $ 10.0 $ 6.0 Diluted Earnings Per Share $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.20 $ 0.60 $ 0.49 $ 0.29 Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 7.1 $ 21.5 $ 20.6 $ 10.5 Adjusted Diluted EPS $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.20 $ 0.61 $ 0.67 $ 0.10 Cash Flow from Operations $ 3.6 $ 2.6 $ 3.8 $ 7.9 $ 4.7 $ 5.5 $ 8.5 $ 3.1 $ 0.2 $ 5.8 $ 17.9 $ 21.9 $ 6.0 Revenue Breakdown by Region Americas $ 8.5 $ 9.7 $ 11.2 $ 8.4 $ 8.5 $ 10.6 $ 10.8 $ 11.0 $ 10.9 $ 12.5 $ 37.7 $ 40.8 $ 23.4 EMEA 3.0 3.7 1.9 1.7 2.1 3.6 3.4 2.6 2.3 4.7 10.4 11.7 7.0 Asia Pacific 0.9 1.4 1.9 1.6 1.3 1.5 2.1 2.1 1.3 1.2 5.8 7.0 2.5 Total $ 12.4 $ 14.8 $ 15.0 $ 11.7 $ 12.0 $ 15.8 $ 16.2 $ 15.6 $ 14.5 $ 18.3 $ 53.9 $ 59.6 $ 32.8 Software Performance Metrics Average Revenue per Customer (in thousands) Commercial $ 71 $ 101 $ 95 $ 65 $ 68 $ 110 $ 97 $ 88 $ 79 $ 113 Services Performance Metrics Backlog (in millions) $ 15.4 $ 17.0 $ 16.7 $ 15.9 $ 15.8 $ 15.4 $ 15.7 $ 19.5 $ 18.9 $ 18.0 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted EBITDA to Net Income* (Unaudited) (in millions) FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Full Year Full Year YTD Net Income $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 12.5 $ 10.0 $ 6.0 Excluding: Interest income and expense, net (0.1 ) (0.1 ) (0.1 ) (0.4 ) (0.8 ) (1.0 ) (1.1 ) (1.3 ) (1.3 ) (1.3 ) (0.7 ) (4.1 ) (2.6 ) Provision for income taxes 0.8 1.1 0.7 (0.1 ) 0.4 0.9 0.9 (0.5 ) 0.5 1.2 2.6 1.7 1.7 Depreciation and amortization 0.8 1.0 0.9 0.9 0.9 0.9 0.9 1.1 1.1 1.1 3.6 3.9 2.2 Stock-based compensation 0.6 0.7 0.7 0.7 0.9 1.2 1.1 1.1 1.3 1.6 2.7 4.2 2.9 (Gain) loss on currency exchange (0.1 ) (0.1 ) 0.2 0.2 — — 0.3 0.2 — 0.1 0.2 0.5 0.1 Impairment of other intangibles — — — — — — — 0.5 — — — 0.5 — Change in value of contingent consideration 0.1 0.1 — — — — — 0.7 (0.1 ) 0.4 0.3 0.7 0.3 Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 2.5 — — 0.3 3.3 — Adjusted EBITDA $ 5.3 $ 7.2 $ 6.5 $ 2.5 $ 3.0 $ 6.2 $ 6.5 $ 4.9 $ 3.4 $ 7.1 $ 21.5 $ 20.6 $ 10.5 *Numbers may not add due to rounding SIMULATIONS PLUS, INC. Reconciliation of Adjusted Diluted EPS to Diluted EPS* (Unaudited) (in millions, except Diluted EPS and Adjusted Diluted EPS) FY 2022 FY 2023 FY 2024 FY 2022 FY 2023 FY 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Full Year Full Year YTD Net Income (GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.0 $ 1.2 $ 4.2 $ 4.0 $ 0.5 $ 1.9 $ 4.0 $ 12.5 $ 10.0 $ 6.0 Excluding: Mergers & Acquisitions expense — — — 0.3 0.3 0.1 0.4 0.9 — — 0.3 1.7 — Immunetrics transaction costs — — — — — — — 2.3 — — — 2.3 — Cognigen trade name write-off — — — — — — — 0.5 — — — 0.5 — Tax effect on above adjustments — — — (0.1 ) (0.1 ) — (0.1 ) (0.5 ) — — (0.1 ) (0.7 ) — Adjusted Net income (Non-GAAP) $ 3.0 $ 4.4 $ 4.1 $ 1.2 $ 1.5 $ 4.2 $ 4.3 $ 3.7 $ 1.9 $ 4.0 $ 12.8 $ 13.8 $ 6.0 Weighted-average common shares outstanding: Diluted 20.7 20.7 20.8 20.9 20.8 20.5 20.4 20.4 20.3 20.3 20.7 20.5 20.3 Diluted EPS (GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.05 $ 0.06 $ 0.20 $ 0.20 $ 0.03 $ 0.10 $ 0.20 $ 0.60 $ 0.49 $ 0.29 Adjusted Diluted EPS (Non-GAAP) $ 0.15 $ 0.21 $ 0.20 $ 0.06 $ 0.07 $ 0.21 $ 0.21 $ 0.18 $ 0.10 $ 0.20 $ 0.61 $ 0.67 $ 0.29 *Numbers may not add due to rounding