Business Overview - Forian's subscription and services-based solutions cover life sciences, pharmaceutical services, healthcare payer and provider, and financial services industries[25]. - As of February 10, 2023, Forian completed the sale of BioTrack, resulting in the cessation of software solutions for the cannabis industry, while retaining certain license rights[27]. - On October 31, 2024, Forian acquired 100% of Kyber Data Science LLC, enhancing its offerings in healthcare information products for the financial services industry[27]. - Forian's databases include billions of de-identified patient events dating back to 2014, representing the majority of the U.S. population, updated regularly to enhance data offerings[38]. - The U.S. healthcare spending is approximately 17% of GDP, with a growing emphasis on digitizing medical records and integrating disparate data sources[32]. - Forian's information products are largely subscription-based, with multi-year contracts providing tailored solutions to clients[41]. - The company aims to drive growth by acquiring new customers and increasing usage within the existing customer base through cross-selling additional information solutions[45]. - Forian's technology platform processes and integrates various data sources to produce a longitudinal database, enhancing its competitive edge in the market[44]. - The healthcare analytics market is segmented into clinical analytics, commercial analytics, and technology platform solutions, with increasing demand for integrated data solutions[33]. - Forian's competitive strengths include deep domain expertise, a diverse customer base, and a flexible approach to privacy-focused analytics software[44]. Financial Performance - Revenues for the year ended December 31, 2024, were $20,153,263, a decrease of $1,063,721 (approximately 5%) compared to $21,216,984 in 2023[150]. - Cost of revenues increased to $7,334,163 in 2024, up $1,857,131 (approximately 34%) from $5,477,032 in 2023, largely due to the Kyber acquisition and higher information licensing expenses[151]. - Gross profit as a percentage of revenues decreased to 64% in 2024 from 74% in 2023[151]. - Research and development expenses rose to $1,444,745 in 2024, an increase of $37,165 (approximately 3%) compared to $1,407,580 in 2023, influenced by the Kyber acquisition[152]. - Sales and marketing expenses decreased to $4,334,289 in 2024, down $623,544 (approximately 13%) from $4,957,833 in 2023, due to lower severance and commissions[153]. - General and administrative expenses were $12,536,940 in 2024, a slight decrease of $63,268 (approximately 0.5%) from $12,600,208 in 2023[154]. - Litigation settlements and related expenses decreased to $669,955 in 2024, down $363,030 (approximately 35%) from $1,032,985 in 2023[155]. - Adjusted EBITDA for the year ended December 31, 2024, was $489,134, a decrease of $2,509,334 compared to $2,998,468 for 2023[168]. - Net loss from continuing operations for 2024 was $(3,771,070), compared to a net income of $2,395,518 in 2023[167]. - Net cash provided by operating activities decreased to $282,827 in 2024 from $787,893 in 2023, a decline of $505,066[171]. Risks and Challenges - The company faces risks related to its limited operating history and may require additional capital for operations and expansion[59][60]. - The company depends on external data sources for its information products, which poses risks if access to this data is lost or restricted[61]. - The company’s growth strategy includes acquisitions, which may involve risks related to identifying suitable candidates and successful integration[62][63]. - The company faces risks related to the evolving federal and state privacy and data protection laws, which may increase operating costs and impact service delivery[84]. - Compliance with new privacy laws may require significant investment and could expose the company to liabilities if not adhered to properly[85]. - Cybersecurity threats pose significant risks to the company's systems and data, potentially leading to substantial costs related to rebuilding systems and defending against litigation[92]. - The competitive market for qualified personnel poses a challenge for the company in attracting and retaining necessary expertise, which could impact business continuity[77]. - Consolidation among customers may reduce service purchases, negatively affecting the company's revenue and financial condition[83]. - The company may struggle to accurately forecast operating results and growth rates, which could lead to lower-than-anticipated financial performance and stock price declines[82]. Compliance and Governance - The company has identified material weaknesses in its internal control over financial reporting, which could lead to inaccuracies in financial statements and loss of investor confidence[78]. - As of December 31, 2024, the company concluded that its disclosure controls and procedures were not effective, particularly regarding payables transactions and revenue recognition under ASC 606[79]. - The company intends to remediate identified material weaknesses, but insufficient remediation efforts could adversely affect financial reporting accuracy and compliance with SEC rules[80]. - The company has implemented practices to comply with applicable privacy laws, including engaging third parties for guidance on data de-identification[88]. - The company does not intend to pay dividends on its common stock, limiting returns to stockholders to stock price appreciation[97]. - Directors and management own approximately 46% of the company's common stock, allowing them to exert significant control over stockholder approval matters[98]. - The company is classified as an emerging growth company, allowing it to take advantage of reduced reporting requirements, which may affect its attractiveness to investors[105]. Cybersecurity and Data Management - The company prioritizes a strong cybersecurity program to safeguard sensitive information and protect its operations[110]. - The company maintains an enterprise-wide information systems security program to safeguard its information systems and assist in reporting cybersecurity incidents[115]. - The company evaluates third-party providers to manage risks associated with data breaches or cybersecurity incidents[118]. - The company has established oversight mechanisms for managing cybersecurity risks, involving regular assessments and engagement with external experts[117]. - The company relies on third-party vendors for data security, and any breaches in their systems could materially impact the company's operations and financial results[94]. Employee and Workforce - As of April 9, 2025, the company had 48 employees, with a positive relationship with its workforce and no organized work stoppages[55]. - Severance expenses for the year ended December 31, 2023, included $250,000 related to salary continuation for the former CEO[31]. - Separation expenses related to the CEO's resignation included $250,000 for salary continuation and $349,832 for accelerated vesting of stock for the six months ended June 30, 2023[218].

Core Insights - Forian Inc. has announced a partnership with Databricks to provide access to its Chartis™ product through the Databricks Marketplace, enhancing visibility into healthcare data and analytics solutions [1][4] - The Chartis™ product utilizes a proprietary scoring algorithm to track provider connections, improving decision-making in the healthcare ecosystem [2] - The collaboration aims to empower healthcare organizations, researchers, and pharmaceutical companies with tools to enhance patient care and outcomes [4][5] Company Overview - Forian Inc. specializes in data management and analytics solutions for the life sciences, healthcare, and financial services sectors, recently expanding its capabilities through the acquisition of Kyber Data Science [6] - The company integrates and commercializes large-scale healthcare information, providing insights through Real World Evidence (RWE) studies and market analytics [6] Partnership Details - The partnership with Databricks allows Forian to extend the reach of its data products, making high-quality healthcare support more accessible [4] - Databricks Marketplace facilitates the sharing of live data across platforms, enhancing security and governance [3][5] - The integration of Chartis™ into the Databricks Marketplace is expected to drive innovation and efficiency in healthcare and life sciences [5]

Financial Data and Key Metrics Changes - Revenue in Q3 2024 was $4.7 million, down from $5.3 million year-over-year, indicating a decrease of approximately 11.3% [7][10] - Net loss for the quarter was $0.2 million compared to a net income of $4.3 million in the same quarter last year, reflecting a significant decline [7][11] - Adjusted EBITDA was $0.2 million, down from $1.2 million year-over-year, primarily due to lower revenue and higher costs [11] Business Line Data and Key Metrics Changes - The company experienced increased sales wins in healthcare services and life sciences, although the revenue impact from these sales has not yet been fully realized [6] - Quarterly revenue has remained between $4.6 million and $5.4 million since Q1 2024, attributed to macroeconomic factors and customer attrition [6][10] Market Data and Key Metrics Changes - The company noted improved sales momentum and a higher rate of contract renewals and expansions, suggesting a more favorable market environment [14][15] - The acquisition of Kyber Data Science is expected to expand the addressable market to include financial service customers, enhancing the company's market position [8] Company Strategy and Development Direction - Forian aims to strengthen its data relationships and continue investing in its information platform to drive innovation and growth [9][11] - The acquisition of Kyber is seen as a strategic move to enhance data science capabilities and provide unique insights derived from healthcare data [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in breaking out of the current revenue range in 2025, driven by improved sales momentum and the impact of the Kyber acquisition [6][10] - The company anticipates that the revenue for 2024 will be at the top end of the previously provided range of $19 million to $20 million, while maintaining adjusted EBITDA within the previously provided range [12] Other Important Information - The company ended the period with $49.4 million in cash and marketable securities, indicating a strong balance sheet [12] - A nonrecurring benefit of $0.5 million related to the termination of an inbound information contract was noted, which impacted the financial results for the quarter [11] Q&A Session Summary Question: Can you elaborate on the revenue trends and expected breakout in 2025? - Management indicated that the commentary on revenue was excluding Kyber, and noted improved sales momentum with expanded relationships and larger contract renewals expected to impact future revenue [14][15] Question: What factors are contributing to the higher rate of wins? - Management attributed the improved market conditions and seasonal trends, noting that the appetite for information contracts has increased [15][16] Question: With significant cash reserves, will the company invest more aggressively in sales and marketing? - Management stated that while they are looking for strong sales individuals, they believe the recent acquisition will help enhance their sales capabilities without necessarily increasing headcount [18] Question: What were the terms of the Kyber acquisition? - Management clarified that the acquisition involved assuming normal operating liabilities and that more details on revenue will be available in Q1 [19]

Company Performance - Forian Inc. reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of $0.01 per share, representing an earnings surprise of 200% [1] - The company posted revenues of $4.69 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 2.58%, and down from $5.35 million year-over-year [2] - Over the last four quarters, Forian has surpassed consensus EPS estimates only once and has not beaten consensus revenue estimates during the same period [2] Stock Outlook - Forian shares have declined approximately 30.3% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $0.01 on revenues of $4.97 million, and $0.04 on revenues of $19.43 million for the current fiscal year [7] - The current Zacks Rank for Forian is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Computer - Services industry, to which Forian belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Forian's stock performance [5]

Revenue Performance - Forian's revenues for the three months ended September 30, 2024, were $4,686,312, a decrease of $662,157 compared to $5,348,469 for the same period in 2023[144] - Revenues for the nine months ended September 30, 2024, were $14,340,791, representing a decrease of $771,607 from $15,112,398 for the same period in 2023[151] Cost of Revenues - Cost of revenues for the three months ended September 30, 2024, was $1,402,920, an increase of $40,365 compared to $1,362,555 for the same period in 2023[146] - Cost of revenues for the nine months ended September 30, 2024, was $4,913,195, an increase of $1,021,713 from $3,891,482 for the same period in 2023[153] Gross Profit - Gross profit as a percentage of revenues decreased to 70% for the three months ended September 30, 2024, compared to 75% for the same period in 2023[146] Operating Expenses - Research and development expenses for the three months ended September 30, 2024, were $291,962, an increase of $27,181 compared to $264,781 for the same period in 2023[147] - Sales and marketing expenses for the three months ended September 30, 2024, were $956,983, a decrease of $356,229 compared to $1,313,212 for the same period in 2023[148] - General and administrative expenses for the three months ended September 30, 2024, were $2,822,253, a decrease of $65,518 compared to $2,887,771 for the same period in 2023[149] Litigation Expenses - Litigation settlements and related expenses for the nine months ended September 30, 2024, were $1,152,670, an increase of $401,190 compared to $751,480 for the same period in 2023[157] Adjusted EBITDA - Adjusted EBITDA for the three months ended September 30, 2024 was $185,916, a decrease of $886,231 compared to $1,072,147 for the same period in 2023[179] - Adjusted EBITDA for the nine months ended September 30, 2024 was $368,535, down $934,197 from $1,302,732 for the same period in 2023[180] - The decrease in Adjusted EBITDA is primarily due to lower revenues and higher cost of sales, partially offset by decreases in operating expenses[179][180] - Management excludes depreciation and amortization, stock-based compensation, interest expense, and other items from Adjusted EBITDA to provide a clearer view of operational performance[162][164][165][168] - The Company recognizes that Adjusted EBITDA has limitations and should not be considered a substitute for U.S. GAAP financial measures[175][177] Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2024, was $1,467,084, an increase of $2,854,434 compared to $1,387,350 for the same period in 2023[183] - Net cash used in investing activities was $730,177 for the nine months ended September 30, 2024, an increase of $3,091,229 compared to cash provided by investing activities of $2,361,052 for the same period in 2023[185] - Net cash used in financing activities was $1,138,037 for the nine months ended September 30, 2024, an increase of $30,046 compared to $1,107,991 for the same period in 2023[186] - The total net decrease in cash and cash equivalents for the nine months ended September 30, 2024, was $3,335,298, compared to an increase of $2,640,411 for the same period in 2023[182] Asset Sales - The Company sold BioTrack for $30,000,000, consisting of $20,000,000 in cash at closing and $10,000,000 in future payments[181] - The Company sold a minority equity interest in a customer for cash proceeds of $5,805,858, with future contingent earnout payments of up to $3,600,000 in 2025 and 2026[181] Cash and Debt - As of September 30, 2024, the Company's cash and marketable securities totaled $49,357,888[181] - Outstanding principal and accrued interest on the Notes, due September 1, 2025, amounted to $24,370,509[181] - The Company expects to fund operations and potential acquisitions through cash flow from operating activities, available cash, marketable securities, debt financing, and/or additional equity issuances[181]

Financial Performance - Revenue for Q3 2024 was $4.7 million, a decrease of 12% from $5.3 million in Q3 2023[3] - Net loss from continuing operations for the quarter was $0.2 million, or $0.01 per share, compared to net income of $4.3 million, or $0.14 per share, in the prior year[3] - Adjusted EBITDA for the quarter was $0.2 million, down 83% from $1.1 million in the prior year[3] - Forian Inc. reported revenue of $4,686,312 for the three months ended September 30, 2024, a decrease from $5,348,469 in the same period of 2023, representing a decline of approximately 12.4%[13] - The total costs and expenses for the three months ended September 30, 2024, were $5,482,141, compared to $6,155,737 in the prior year, reflecting a decrease of about 10.9%[13] - The operating loss from continuing operations for the three months ended September 30, 2024, was $(795,829), slightly improved from $(807,268) in the same period of 2023[13] - For the nine months ended September 30, 2024, the net loss income was $(3,970,781), compared to a net income of $9,717,744 in the same period of 2023[14] - Forian Inc. recorded a total other income of $495,026 for the three months ended September 30, 2024, significantly lower than $6,354,102 in the same period of 2023[13] - Adjusted EBITDA for the three months ended September 30, 2024, was $185,916, compared to $1,072,147 for the same period in 2023, indicating a significant decline[31] - Net loss from continuing operations for the three months ended September 30, 2024, was $(204,907), compared to a net income of $5,453,643 for the same period in 2023[31] Cash and Assets - Cash, cash equivalents, and marketable securities totaled $49.4 million as of September 30, 2024[3] - The cash and cash equivalents at the end of the period were $2,707,688, down from $5,377,079 at the end of September 30, 2023, indicating a decrease of approximately 49.7%[14] - Total assets decreased to $57.5 million from $58.9 million year-over-year[12] Liabilities and Equity - Total current liabilities were $30.1 million as of September 30, 2024, compared to $6.8 million in the prior year[9] - Total stockholders' equity increased to $26.9 million from $26.2 million year-over-year[11] Acquisitions and Strategic Moves - Forian acquired Kyber Data Science on October 31, 2024, enhancing its analytics offerings and expanding market reach[4] - The company plans to leverage its acquisition to capitalize on emerging opportunities in the financial services industry[4] - The company redeemed 3.5% Convertible Notes and outstanding equity of over $15 million in October and November 2024[4] Expenses and Adjustments - The company incurred research and development expenses of $291,962 for the three months ended September 30, 2024, compared to $264,781 in the same period of 2023, marking an increase of approximately 10.3%[13] - Stock-based compensation expense for the three months ended September 30, 2024, was $1,552,042, slightly up from $1,551,997 in the same period of 2023[31] - Interest expense related to convertible notes was $195,415 for the three months ended September 30, 2024, compared to $211,333 in the same period of 2023[31] - The company incurred severance expenses of $250,000 related to the resignation of the CEO during the nine months ended September 30, 2023[23] - The company recorded an adjustment of $542,389 for the impact of contract termination during the quarter ended September 30, 2024[26] - Interest and investment income for the three months ended September 30, 2024, was $(658,339), compared to $(646,832) in the same period of 2023[31] Non-GAAP Measures - Forian Inc. provided a non-GAAP measure of Adjusted EBITDA, which is intended to supplement the net loss calculated in accordance with U.S. GAAP[15] - The company excluded depreciation and amortization expenses from Adjusted EBITDA, which were $6,629 for the three months ended September 30, 2024[31] - The company believes that the presentation of Adjusted EBITDA helps investors understand management's decisions based on performance metrics[17]

NEWTOWN, Pa., Nov. 13, 2024 (GLOBE NEWSWIRE) -- NEWTOWN, Pa.  Forian Inc. (Nasdaq: FORA), a leading provider of data science driven information and analytics solutions to the life science, healthcare and financial services industries, today announced results for the quarter ended September 30, 2024. “While this quarter’s revenue remained steady, our team’s commitment to driving long-term value has resulted in progress in our strategic vision. The addition of Kyber Data Science enhances the momentum we are b ...

NEWTOWN, Pa., Nov. 08, 2024 (GLOBE NEWSWIRE) -- Forian Inc. (Nasdaq: FORA) announces that Max Wygod, Chief Executive Officer and Executive Chairman, and Mike Vesey, Chief Financial Officer, will attend ROTH MKM’s 13th annual Technology Event, which will be held on November 19th – 20th, 2024, at the Hard Rock Hotel in New York City. This year’s event will consist of 1-on-1 / small group meetings with over 70 innovative growth companies spanning the technology landscape. The format will provide investors with ...

NEWTOWN, Pa., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Forian Inc. (Nasdaq: FORA), a provider of data science driven information and analytics solutions to the healthcare and life sciences industries, will announce its third quarter 2024 financial results on Wednesday, November 13, 2024, after the close of the market. The Company will host a conference call and webcast at 4:30 p.m. (ET) on November 13, 2024 to discuss the results. To register for the conference call, click here. The webcast will be available live ...

NEWTOWN, PA, Nov. 01, 2024 (GLOBE NEWSWIRE) -- Forian Inc. (Nasdaq: FORA), a provider of data science driven information and analytics solutions to the healthcare and life sciences industries, today announced it has acquired Kyber Data Science LLC (“Kyber”), a trusted provider of advanced healthcare data analytics and machine learning solutions to the financial services industry, from TD Cowen. This strategic acquisition strengthens Forian’s position in the healthcare information marketplace through the add ...