Slide 1: Simulations Plus, Inc. Corporate Overview
Simulations Plus, Inc. (AMEX:SLP) Corporate Overview June 21, 2006
Slide 2: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
With the exception of historical information, the matters discussed in this presentation are forward looking statements that involve a number of risks and uncertainties. The actual results of the Company could differ significantly from those statements. Factors that could cause or contribute to such
Slide 3: Two Companies
•Simulations Plus, Inc. (AMEX:SLP) - Global business founded 1996 - IPO June 1997 -no further financing to date - Software for pharmaceutical research and development-Consulting studies for pharmaceutical and drug delivery companies - FutureLab simulations for middle-and high-school science (small)
Slide 4: Simulations Plus, Inc.
•Simulation and modeling software for pharmaceutical research - ADMET Predictor™-ADMET Modeler™ - ClassPharmer™ - DDDPlus™ - GastroPlus™ -MembranePlus (in development) • Contract services to the pharmaceutical industry-Structure-property modeling-Simulation studies • Troubleshooting problem compound
Slide 5: GastroPlus
•Most advanced and widely used simulation of oral absorption and pharmacokinetics - the industry’s “Gold Standard” • Recent addition of physiologically based pharmacokinetics (PBPK)accomplished via 2 ½year collaboration with Hoffmann LaRoche • FDA now has through a Material Transfer Agreement (MTA)G
Slide 6: ADMET Predictor
•Predicts properties of molecules from just their structures (drawings)•Recently ranked #1 in accuracy for predicting solubility and logP • Outstanding new pKa prediction -complete microspecies equilibria • Seven toxicity models and more in development -new area • >200,000 compounds/hour typical pro
Slide 7: ADMET Modeler
•Effortless creation of artificial neural network ensemble and support vector machine ensemble structure-property models • Improved graphical user interface with unique display of descriptor sensitivities • Speed and model quality unsurpassed -contract studies have shown ability to find useful model
Slide 8: ClassPharmer
•Acquired from creditors of Bioreason in November 2005 -merged with ChemTK™ and released as ClassPharmer 4.0 during 2ndquarter -greatly improved speed and flexibility • Helps identify what it is about molecular structure that causes good or bad properties -finds “maximum common substructures” in cla
Slide 9: DDDPlus
•Version 1.0 was not a great seller last year, but afforded the opportunity to get feedback from over 60 industry scientists about what they wanted to see to make it more useful in their jobs•All requested modifications have now been made, as well as the ability to handle new formulations, and versi
Slide 10: Core Capabilities and Strengths
-Growing team of exceptional scientists and engineers•Chemistry, biochemistry, molecular biology•Chemical engineering, biomedical engineering•Computer science-Recognized world-class expertise in oral drug delivery, pharmacokinetics, pharmacodynamics-Large scale system simulations-Applied numerical s
Slide 11: Some of Our International Pharma Customers
Some of Our International Pharma Customers
Slide 12: Selected Income Statement Data
3Q Ended 5/31 * 2Q ended 2/28:2006 *2005 2006 2005 Revenues $1.789 * $1.424 $1.48 1.03 Cost of Sales * 0.43 0.39 0.37 Gross Profit * 0.99 1.09 0.66 S,G&A * 0.65 0.69 0.54 R&D * 0.13 0.12 0.13 NIBT 0.32 ~ 0.50 * 0.22 0.30 0.09 Net Earnings 0.26 ~ 0.40 * 0.18 0.25 0.09 Net Earnings per Share $0.07 ~ $
Slide 13: Balance Sheet
As of May 31, 2006 ASSETS LIABILITIES Cash & cash equivalents $ 1.099* Accounts payable$ 0.160* Accounts receivable 1.572* Accrued expenses 0.361* Other current assets __0.256* Current portion deferred revenue 0.014* TOTAL CURRENT ASSETS__2.927* Other current liabilities 0.012* TOTAL CURRENT LIAB.__
Slide 14: Revenue History
Revenue History -1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 $ 1998 2000 2002 2004 2006 (9mos) Fiscal Year Revenue Words+Simulations PlusConsolidated
Slide 15: Management & Directors
Management & Directors • Walter S. Woltosz , M.S., M.A.S., Chairman & CEO • Momoko A. Beran, B.S., M.B.A., CPA qualified, CFO • Ronald Creeley, B.S., Vice President, Marketing & Sales • Jeffrey A. Dahlen, B.E.E., President, Words+, Inc. • Michael B. Bolger, Ph.D., Director, Life Sciences • Board of
Slide 16: Investment Highlights
•Emerging, high-growth market•Proprietary multi-platform software•Recurring revenue business model•Fast-growing and profitable•Debt-free•Experienced management team and boardInvestment Highlights