Business Context and Reporting Period
This Form 8-K filing by Simulations Plus, Inc. (SLP) is dated July 9, 2025. The report addresses a change in the Company's independent registered public accounting firm to facilitate the timely completion of the Quarterly Report on Form 10-Q for the period ended May 31, 2025.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. The document focuses exclusively on auditor transition details and does not contain financial statement data.
Material Changes
- Termination of Auditor: Grant Thornton LLP was dismissed as the independent public accounting firm effective July 9, 2025.
- Reason for Change: The Audit Committee determined a change was necessary to ensure the timely filing of the Q2 2025 Form 10-Q. Specific issues preventing timely finalization included segment reporting, reporting unit determinations, and internal controls over financial reporting (SOX Section 404(a)).
- Appointment of New Auditor: Rose, Snyder & Jacobs LLC (RSJ) was appointed to audit the fiscal year ending August 31, 2025, and review interim periods.
- Historical Context: RSJ previously served as the Company's auditor for fiscal years ended August 31, 2024, and 2023, and for the interim period from September 1, 2024, through April 15, 2025.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on business outlook, or specific risk factors beyond the operational risk of delayed reporting which prompted the auditor change. The Company confirmed there were no "reportable events" or disagreements with Grant Thornton regarding accounting principles or audit opinions during the engagement period.
Investor Verification Checklist
- Verify the status of the Form 10-Q for the period ended May 31, 2025, to confirm if the filing delay has been resolved.
- Review the specific nature of the "segment reporting" and "reporting unit determination" issues cited as reasons for the auditor dismissal.
- Examine the letter from Grant Thornton LLP (Exhibit 16.1) to confirm their agreement with the Company's statements regarding the termination.
- Monitor future filings for any restatements or adjustments related to the internal control evaluations mentioned.