Revenue Performance - Revenues for the three months ended March 31, 2025, were $7,056,116, an increase of $2,178,738 (approximately 44.7%) compared to $4,877,378 for the same period in 2024[138]. - Revenue for Q1 2025 was $7,056,116, up from $4,877,378 in Q1 2024, indicating a significant increase in sales[154]. Cost and Expenses - Cost of revenues for the three months ended March 31, 2025, was $3,131,622, an increase of $1,428,265 (approximately 83.8%) compared to $1,703,357 for the same period in 2024, resulting in a gross profit margin decrease to 56% from 65%[140]. - Research and development expenses increased to $606,237 for the three months ended March 31, 2025, up $216,348 (approximately 55.5%) from $389,889 in 2024, primarily due to the Kyber acquisition[141]. - Sales and marketing expenses rose to $1,382,727 for the three months ended March 31, 2025, an increase of $327,586 (approximately 31%) compared to $1,055,141 in 2024, driven by the Kyber acquisition and higher compensation expenses[142]. - General and administrative expenses slightly decreased to $3,279,094 for the three months ended March 31, 2025, down $4,395 (approximately 0.1%) from $3,283,489 in 2024[143]. Operating Performance - The operating loss for the three months ended March 31, 2025, was $1,394,665, an improvement compared to an operating loss of $1,772,350 for the same period in 2024[138]. - Adjusted EBITDA for Q1 2025 was $(50,778), a decrease of $155,195 compared to $104,417 in Q1 2024, primarily due to higher costs of revenues and operating expenses[155]. - Adjusted EBITDA is used by management as a performance measure, excluding items such as depreciation, stock-based compensation, and interest expenses, to provide a clearer view of operational performance[146]. Cash Flow and Financial Position - Net cash provided by operating activities increased to $448,180 in Q1 2025, a rise of $2,656,250 compared to cash used of $(2,208,070) in Q1 2024[159]. - Net cash provided by investing activities was $838,125 in Q1 2025, an increase of $2,612,550 compared to $(1,774,425) in Q1 2024[160]. - As of March 31, 2025, the company's cash and marketable securities totaled $35,666,432, with outstanding principal and accrued interest on notes amounting to $6,750,326[156]. - The company sold BioTrack for $30,000,000, consisting of $20,000,000 in cash at closing and $10,000,000 in future payments, enhancing liquidity[156]. - Net cash used in financing activities decreased to $172,295 in Q1 2025, down by $859,068 from $(1,031,363) in Q1 2024, primarily due to changes in tax payments[161]. - The company expects to fund future operations and acquisitions through a combination of cash flow, available cash, marketable securities, and debt financing[156]. - The company redeemed $18,881,466 in outstanding principal and interest on its notes during 2024, improving its financial position[156]. Strategic Initiatives - The company acquired all outstanding equity interests of Kyber Data Science, LLC on October 31, 2024, which is expected to enhance its data management capabilities[128]. - The company plans to license data from additional vendors due to a vendor exiting the data licensing business by the end of 2026, which may impact future operations[132]. - The company continues to focus on expanding its marketing and sales efforts to build brand awareness and attract new clients[134]. Accounting and Compliance - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements and disclosures[173].
Forian(FORA) - 2025 Q1 - Quarterly Report