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]
Forian(FORA) - 2024 Q3 - Quarterly Results