Forian(FORA) - 2025 Q2 - Quarterly Report

PART I FINANCIAL INFORMATION This section presents Forian Inc.'s unaudited condensed consolidated financial statements and related notes for Q2 2025 and FY2024 Item 1. Financial Statements This section presents Forian Inc.'s unaudited condensed consolidated financial statements and related notes for Q2 2025 and FY2024 Condensed Consolidated Balance Sheets This section details the company's financial position, including assets, liabilities, and equity, as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (Selected Items) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $5,369,817 | $4,590,661 | | Marketable securities | $30,279,208 | $30,492,088 | | Total current assets | $46,541,103 | $44,460,091 | | Total assets | $48,462,637 | $47,169,843 | | Total current liabilities | $17,520,976 | $16,604,690 | | Total liabilities | $17,520,976 | $17,116,827 | | Total stockholders' equity | $30,941,661 | $30,053,016 | - Total assets increased by approximately $1.3 million from December 31, 2024, to June 30, 2025, driven by increases in cash and accounts receivable, partially offset by a slight decrease in marketable securities[10] - Total liabilities increased by approximately $0.4 million, primarily due to higher accounts payable and deferred revenues, while total stockholders' equity increased by approximately $0.9 million[10] Condensed Consolidated Statements of Operations This section outlines the company's revenues, expenses, and net income (loss) for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations (Selected Items) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $7,476,140 | $4,777,101 | $14,532,256 | $9,654,479 | | Total costs and expenses | $7,430,064 | $7,747,579 | $15,880,845 | $14,397,307 | | Operating Income (Loss) | $46,076 | $(2,970,478) | $(1,348,589) | $(4,742,828) | | Net income (loss) | $224,793 | $(2,553,259) | $(901,069) | $(3,765,874) | | Basic net income (loss) per common share | $0.01 | $(0.08) | $(0.03) | $(0.12) | | Diluted net income (loss) per common share | $0.01 | $(0.08) | $(0.03) | $(0.12) | - Revenue increased significantly for both the three-month (56.5%) and six-month (50.5%) periods ended June 30, 2025, compared to the same periods in 2024[12] - The company reported net income of $224,793 for the three months ended June 30, 2025, a substantial improvement from a net loss of $(2,553,259) in the prior year period[12] - For the six months, the net loss narrowed from $(3,765,874) to $(901,069)[12] Condensed Consolidated Statements of Stockholders' Equity This section details changes in stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit, for the reported periods Condensed Consolidated Statements of Stockholders' Equity (Selected Items) | Item | Balance at Jan 1, 2025 | Balance at June 30, 2025 | Balance at Jan 1, 2024 | Balance at June 30, 2024 | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Common Stock (Shares) | 31,010,788 | 31,202,312 | 30,920,450 | 31,110,187 | | Common Stock (Par Value) | $31,011 | $31,203 | $30,920 | $31,110 | | Additional Paid In Capital | $79,937,115 | $81,726,637 | $73,834,300 | $77,054,999 | | Accumulated Deficit | $(49,915,110) | $(50,816,179) | $(46,144,040) | $(49,909,914) | | Total Stockholders' Equity | $30,053,016 | $30,941,661 | $27,721,180 | $27,176,195 | - Total stockholders' equity increased from $30,053,016 at January 1, 2025, to $30,941,661 at June 30, 2025, primarily due to stock-based compensation expense and net income, partially offset by vesting of restricted stock[13] - The accumulated deficit increased from $(49,915,110) at January 1, 2025, to $(50,816,179) at June 30, 2025, reflecting the net loss for the six-month period[13] Condensed Consolidated Statements of Cash Flows This section presents the cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Six Months Ended June 30) | Activity | 2025 | 2024 | | :------------------------------------ | :----------- | :------------ | | Net cash provided by (used in) operating activities | $103,649 | $(2,231,180) | | Net cash provided by (used in) investing activities | $840,081 | $(762,026) | | Net cash used in financing activities | $(164,574) | $(1,050,662) | | Net change in cash and cash equivalents | $779,156 | $(4,043,868) | | Cash and cash equivalents, end of period | $5,369,817 | $1,999,118 | - Operating activities generated cash of $103,649 in the first six months of 2025, a significant improvement from cash used of $(2,231,180) in the same period of 2024[16] - Investing activities provided $840,081 in cash in 2025, reversing from cash used of $(762,026) in 2024, primarily due to changes in marketable securities[16] - Cash used in financing activities decreased by $886,088, from $(1,050,662) in 2024 to $(164,574) in 2025, mainly due to lower tax payments for vested restricted stock units and convertible note redemptions[16] Notes to Unaudited Condensed Consolidated Financial Statements This section provides detailed explanations of the company's business, accounting policies, acquisitions, and specific financial line items Note 1 BUSINESS ORGANIZATION AND NATURE OF OPERATIONS This note describes Forian Inc.'s business and the nature of its operations - Forian Inc. provides data management and analytics solutions for healthcare, life sciences, and financial services industries[18] - On October 31, 2024, Forian acquired Kyber Data Science, LLC, which offers data management and analytics solutions for the financial services industry, accounted for using the acquisition method[19] Note 2 BASIS OF PRESENTATION This note outlines the basis for preparing the condensed consolidated financial statements - The condensed consolidated financial statements are prepared in accordance with U.S. GAAP, with certain footnotes and information condensed or omitted per Form 10-Q instructions[20] - Management considers all necessary adjustments for fair presentation, and operating results are not necessarily indicative of full-year expectations[20] Note 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note summarizes the key accounting policies used in preparing the financial statements - The consolidated financial statements include Forian LLC, Kyber Data Science LLC (effective Oct 31, 2024), and Helix Technologies, Inc. and their subsidiaries, with all intercompany transactions eliminated[21] - Revenue is recognized following the five-step model of ASC 606, primarily from information products, with recognition occurring when customers obtain control of goods/services[38][39] - The company operates as a single reportable segment providing analytic and information services to healthcare, life science, and financial services industries[49] - Sales for the three months ended June 30, 2025, were primarily from the United States (94%), Australia (5%), and Great Britain/others (1%)[47] - The company faces vendor concentration risk, with two vendors representing 21.3% and 12.7% of purchases and expenses for the three months ended June 30, 2025[56] - The 2020 Equity Incentive Plan was amended on June 11, 2025, increasing authorized shares for issuance by 4,000,000 to a total of 10,400,000 shares[63] - The company is evaluating the impact of new FASB ASUs 2023-09 (Income Tax Disclosures), 2024-03 (Expense Disaggregation Disclosures), and 2025-05 (Credit Losses for Accounts Receivable and Contract Assets) on its financial statements[71][73][74] Note 4 ACQUISITION This note provides details regarding the acquisition of Kyber Data Science, LLC - Forian acquired Kyber Data Science, LLC on October 31, 2024, for no consideration other than the assumption of certain normal course working capital liabilities[76][78] - The acquisition resulted in a bargain purchase gain of $1,204,830, as the fair value of net assets acquired exceeded the purchase price[78][80] - Kyber contributed revenues of $1,859,566 and $3,552,913 for the three and six months ended June 30, 2025, respectively[81] Note 5 MARKETABLE SECURITIES This note describes the company's marketable securities holdings - Marketable securities, primarily U.S. Treasury Bills, are classified as available-for-sale and stated at estimated fair value (Level 2 inputs)[84] Marketable Securities (U.S. Treasury Bills) | Item | June 30, 2025 | December 31, 2024 | | :---------------- | :------------ | :---------------- | | Amortized Cost | $30,276,659 | $30,476,729 | | Fair Market Value | $30,279,208 | $30,492,088 | Note 6 PREPAID EXPENSES AND OTHER CURRENT ASSETS This note details the components of prepaid expenses and other current assets - Prepaid expenses increased to $1,561,617 at June 30, 2025, from $1,111,234 at December 31, 2024, mainly for software, information licenses, and insurance[85] - Other current assets at June 30, 2025, included income taxes receivable of $362,560 and deferred license costs of $969,184[86] Note 7 PROPERTY AND EQUIPMENT, NET This note provides information on the company's property and equipment Property and Equipment, Net | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Personal computing equipment | $48,143 | $94,521 | | Office equipment and capitalized software | $73,260 | $73,260 | | Total | $121,403 | $167,781 | | Less: Accumulated depreciation | $(83,899) | $(121,129) | | Property and equipment, net | $37,504 | $46,652 | - Depreciation expense for the three and six months ended June 30, 2025, was $4,254 and $9,148, respectively[87] Note 8 INTANGIBLE ASSETS This note details the company's intangible assets Intangible Assets (Net Book Value) | Item | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :---------------- | | Customer relationships | $898,667 | $983,016 | | Tradenames and trademarks | $199,074 | $209,028 | | Total | $1,097,741 | $1,192,044 | - Amortization expense for the three and six months ended June 30, 2025, was $48,097 and $94,303, respectively[88] - The weighted average remaining amortization period for intangible assets was 5.88 years as of June 30, 2025[89] Note 9 DEPOSITS AND OTHER ASSETS This note describes the company's deposits and other assets - Deposits and other assets included $582,617 related to information license vendors as of June 30, 2025, down from $1,357,482 at December 31, 2024[90] Note 10 ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES This note details the components of accrued expenses and other current liabilities Accrued Expenses and Other Current Liabilities | Item | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Employee compensation | $1,752,332 | $1,570,205 | | Information Contracts | $1,085,170 | $1,296,315 | | Other accrued expenses | $1,068,821 | $1,546,747 | | Total | $3,906,323 | $4,413,267 | - Total accrued expenses decreased by approximately $0.5 million from December 31, 2024, to June 30, 2025, primarily due to decreases in information contracts and other accrued expenses[91] Note 11 CONVERTIBLE NOTES This note provides information on the company's convertible promissory notes - The company has $6,000,000 in principal outstanding on 3.5% Convertible Promissory Notes due September 1, 2025[92] - Interest expense on the Notes was $52,356 and $103,701 for the three and six months ended June 30, 2025, respectively, significantly lower than the prior year due to 2024 redemptions[92] - The company redeemed $1,000,000 in principal and $87,356 of accrued interest on February 28, 2024, resulting in a gain of $137,356[95] Note 12 STOCK-BASED COMPENSATION This note details the company's stock-based compensation arrangements Unvested Restricted Stock Awards and Units | Item | Number of Shares and Units | | :-------------------------- | :------------------------- | | Unvested at January 1, 2025 | 1,647,248 | | Issued | 200,000 | | Vested | (263,750) | | Canceled | (539,250) | | Unvested at June 30, 2025 | 1,044,248 | Stock-Based Compensation Expense | Period | 2025 | 2024 | | :------------------------------------ | :----------- | :----------- | | Three Months Ended June 30, Total | $661,502 | $1,662,636 | | Six Months Ended June 30, Total | $1,954,288 | $3,321,551 | - Total unrecognized stock compensation expense related to unvested awards was $4,283,136 at June 30, 2025, expected to be recognized over approximately 1.5 years[102] Note 13 NET INCOME (LOSS) PER SHARE This note provides the calculation of basic and diluted net income (loss) per share Net Income (Loss) Per Share | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to common shareholders | $224,793 | $(2,553,259) | $(901,069) | $(3,765,874) | | Basic net income (loss) per common share | $0.01 | $(0.08) | $(0.03) | $(0.12) | | Diluted net income (loss) per common share | $0.01 | $(0.08) | $(0.03) | $(0.12) | | Weighted average common shares outstanding - basic | 31,202,312 | 31,098,497 | 31,163,137 | 31,049,647 | | Weighted average common shares outstanding - diluted | 31,293,644 | 31,098,497 | 31,163,137 | 31,049,647 | - Potentially dilutive securities, including warrants, stock options, convertible notes, and unvested restricted stock, were excluded from diluted EPS calculation for periods with net losses as their impact would be antidilutive[105][106] Note 14 RELATED PARTY TRANSACTIONS This note discloses transactions involving related parties - Adam Dublin, Chief Strategy Officer, received runoff commissions from a former vendor, totaling $7,975 for the six months ended June 30, 2025[107] - A director's spouse holds $6,000,000 of the 3.5% Convertible Promissory Notes[108] - The company entered a customer agreement with an entity controlled by a director, generating $113,391 and $217,856 in revenues for the three and six months ended June 30, 2025, respectively[109] Note 15 LEASES This note provides information on the company's lease arrangements - The company has operating leases, primarily for facilities, with remaining terms of 1-2 years, and has elected the short-term lease exemption for leases of 12 months or less[110][112] Operating Lease Liabilities | Item | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Right of use assets, net | $23,988 | $35,560 | | Short-term operating lease liabilities | $23,988 | $23,423 | | Long-term operating lease liabilities | $0 | $12,137 | | Total lease liabilities | $23,988 | $35,560 | - Total operating lease costs for the three and six months ended June 30, 2025, were $12,365 and $23,969, respectively[116] Note 16 COMMITMENTS AND CONTINGENCIES This note describes the company's commitments and contingent liabilities - The company has remaining payment obligations under service and license agreements totaling $12,701,625 as of June 30, 2025[117] - Two significant legal proceedings, Audet v. Green Tree International, et. al. and Grant Whitus et al. v. Forian Inc., Zachary Venegas and Scott Ogur, were settled and dismissed with prejudice in March and June 2024, respectively[121][122] Note 17 SUBSEQUENT EVENTS This note discloses events occurring after the balance sheet date - On July 15, 2025, the Board approved the grant of 600,000 restricted stock units to certain employees[125] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on Forian Inc.'s financial condition and results of operations for the three and six months ended June 30, 2025 and 2024 Overview This section provides a general overview of Forian Inc.'s business and recent developments - Forian Inc. provides data management and analytics solutions for healthcare, life sciences, and financial services industries[127] - The company acquired Kyber Data Science, LLC on October 31, 2024, which offers financial services data solutions[128] Financial Operations Overview This section describes the key components of the company's financial operations - Revenues are primarily from proprietary information products and services, recognized as performance obligations are satisfied[130] - Cost of revenues includes labor, information licensing, hosting, infrastructure, and client service team costs[132] - Research and development efforts focus on adding new features and applications to product offerings[135] - Sales and marketing expenses are mainly salaries, commissions, and marketing program costs, with plans for continued investment[136] - General and administrative expenses cover administrative functions, professional fees, and other corporate support[137] - Litigation settlements and related expenses are associated with legacy claims from the Helix merger[138] - Depreciation and amortization relate to long-lived assets, including furniture, equipment, computers, and intangible assets[139] Results of Operations For the Three and Six Months Ended June 30, 2025 and 2024 This section analyzes the company's financial performance for the three and six months ended June 30, 2025 and 2024 Comparison of three months ended June 30, 2025 and 2024 This section compares the financial results for the three months ended June 30, 2025, and 2024 Key Financials (Three Months Ended June 30) | Item | 2025 | 2024 | Change ($) | Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Revenues | $7,476,140 | $4,777,101 | $2,699,039 | 56.5% | | Cost of Revenues | $3,228,169 | $1,806,918 | $1,421,251 | 78.6% | | Research and Development | $675,731 | $307,201 | $368,530 | 120.0% | | Sales and Marketing | $1,495,710 | $1,017,659 | $478,051 | 47.0% | | General and Administrative | $1,971,959 | $3,229,757 | $(1,257,798) | (39.0%) | | Litigation settlements and related expenses | $0 | $942,311 | $(942,311) | (100.0%) | | Interest and Investment Income | $347,968 | $618,316 | $(270,348) | (43.7%) | | Interest Expense | $53,689 | $193,306 | $(139,617) | (72.2%) | - Revenue growth was primarily driven by the Kyber acquisition and organic growth in information products[142] - Gross profit as a percentage of revenues decreased to 57% from 62% due to higher information licensing and processing expenses[143] - General and administrative expenses decreased significantly due to lower stock compensation and credit loss expenses[147] Comparison of six months ended June 30, 2025 and 2024 This section compares the financial results for the six months ended June 30, 2025, and 2024 Key Financials (Six Months Ended June 30) | Item | 2025 | 2024 | Change ($) | Change (%) | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Revenues | $14,532,256 | $9,654,479 | $4,877,777 | 50.5% | | Cost of Revenues | $6,359,791 | $3,510,275 | $2,849,516 | 81.2% | | Research and Development | $1,281,968 | $697,090 | $584,878 | 83.9% | | Sales and Marketing | $2,878,437 | $2,072,800 | $805,637 | 38.9% | | General and Administrative | $5,251,053 | $6,513,246 | $(1,262,193) | (19.4%) | | Litigation settlements and related expenses | $0 | $1,151,276 | $(1,151,276) | (100.0%) | | Interest and Investment Income | $676,816 | $1,293,473 | $(616,657) | (47.7%) | | Interest Expense | $106,367 | $392,269 | $(285,902) | (72.9%) | - Revenue growth for the six-month period was also primarily due to the Kyber acquisition and organic growth[152] - Gross profit as a percentage of revenues decreased to 56% from 64% for the six-month period due to increased costs[153] - Litigation settlements and related expenses were zero in 2025, down from over $1.1 million in 2024, reflecting the settlement of legacy claims[157] Non-GAAP Financial Measures This section provides a reconciliation of non-GAAP financial measures, specifically Adjusted EBITDA Limitations on the use of non-GAAP financial measures This section outlines the inherent limitations of using non-GAAP financial measures - Non-GAAP financial measures are not prepared in accordance with U.S. GAAP and may differ from those of other companies, having inherent limitations due to excluded items[167][168] - Management uses both GAAP and non-GAAP measures and encourages investors to review all financial information and compare non-GAAP measures with their most directly comparable GAAP counterparts[168][169] Adjusted EBITDA Reconciliation This section presents a reconciliation of net income (loss) to Adjusted EBITDA Adjusted EBITDA Reconciliation | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $224,793 | $(2,553,259) | $(901,069) | $(3,765,874) | | Depreciation and amortization | $52,350 | $7,889 | $103,451 | $16,776 | | Stock based compensation expense | $661,502 | $1,662,636 | $1,954,288 | $3,321,551 | | Interest and investment income | $(347,968) | $(618,316) | $(676,816) | $(1,293,473) | | Interest expense | $53,689 | $193,306 | $106,367 | $392,269 | | Litigation related expenses | $0 | $942,311 | $0 | $1,151,276 | | Strategic review and transaction related expenses | $6,145 | $435,844 | $6,145 | $435,844 | | Contract termination impacts | $(175,000) | $0 | $(175,000) | $0 | | Income tax expense | $115,562 | $8,221 | $122,929 | $110,761 | | Adjusted EBITDA | $591,073 | $78,202 | $540,295 | $182,619 | Comparison of the Three Months Ended June 30, 2025 and 2024 (Adjusted EBITDA) This section compares Adjusted EBITDA for the three months ended June 30, 2025, and 2024 - Adjusted EBITDA for the three months ended June 30, 2025, increased by $512,871 to $591,073, compared to $78,202 in the prior year, driven by higher revenues partially offset by increased costs[172] Comparison of the Six Months Ended June 30, 2025 and 2024 (Adjusted EBITDA) This section compares Adjusted EBITDA for the six months ended June 30, 2025, and 2024 - Adjusted EBITDA for the six months ended June 30, 2025, increased by $357,676 to $540,295, compared to $182,619 in the prior year, primarily due to higher revenues[173] Liquidity and Capital Resources This section discusses the company's ability to meet its short-term and long-term financial obligations - The company's operations have been financed by cash flow from operating activities, sale of investments, equity issuances, and convertible notes[174] - As of June 30, 2025, cash and marketable securities totaled $35,649,025, with outstanding principal and accrued interest on convertible notes aggregating $6,804,016[174] - Future operations and acquisitions are expected to be funded through operating cash flow, available cash/marketable securities, debt financing, and/or equity issuances[174] Cash Flows This section provides a detailed analysis of cash flows from operating, investing, and financing activities Net Cash Provided by (Used In) Operating Activities This section analyzes cash flows generated from or used in the company's primary business operations - Net cash provided by operating activities was $103,649 for the six months ended June 30, 2025, a $2,334,829 increase from cash used in operating activities of $2,231,180 in the prior year[176] - This improvement was due to increased Adjusted EBITDA, decreased litigation settlements, reduced strategic review expenses, and changes in working capital[176] Net Cash Provided by (Used In) By Investing Activities This section analyzes cash flows related to the acquisition and disposal of long-term assets and investments - Net cash provided by investing activities was $840,081 for the six months ended June 30, 2025, an increase of $1,602,107 from cash used in investing activities of $762,026 in the prior year[177] - The change was primarily due to net additions to marketable securities, partially offset by cash from the sale of a discontinued operation in 2024[177] Net Cash Used In Financing Activities This section analyzes cash flows related to debt, equity, and dividend transactions - Net cash used in financing activities decreased by $886,088 to $164,574 for the six months ended June 30, 2025, from $1,050,662 in the prior year[178] - This decrease was mainly due to changes in tax payments for vested restricted stock units and redemptions of convertible notes[178] Critical Accounting Estimates This section discusses accounting estimates that require significant judgment and could materially impact financial results - Critical accounting estimates include judgments for revenue recognition (distinct performance obligations, variable revenue), share-based payments (fair value assumptions), income taxes (valuation allowance for deferred tax assets), and business combinations (fair value allocation of acquired assets and liabilities)[183][184][185][186] - These estimates are based on historical experience and assumptions, but actual results may differ, potentially impacting financial statements[181][187] Recent Accounting Pronouncements This section outlines recently issued accounting pronouncements and their potential impact - The company is evaluating the impact of ASU 2023-09 (Income Tax Disclosures), ASU 2024-03 (Expense Disaggregation Disclosures), and ASU 2025-05 (Credit Losses for Accounts Receivable and Contract Assets) on its financial statements[189][190][191] Recently Adopted Accounting Pronouncements This section details accounting pronouncements recently adopted by the company - All new applicable accounting pronouncements in effect have been implemented and did not have a material impact on the financial statements[192] JOBS Act This section discusses the company's status and elections under the Jumpstart Our Business Startups Act - As an 'emerging growth company' under the JOBS Act, Forian Inc. elects to use the extended transition period for new or revised accounting standards[193] - The company benefits from reduced reporting requirements, including exemptions from auditor attestation on internal controls and certain compensation disclosures, until December 31, 2026, or when it no longer qualifies as an 'emerging growth company'[194] Item 3. Quantitative and Qualitative Disclosures About Market Risk This item is not required for the company Item 4. Controls and Procedures This section discusses the evaluation of the company's disclosure controls and procedures and changes in internal control over financial reporting Evaluation of Disclosure Controls and Procedures This section details management's evaluation of the effectiveness of the company's disclosure controls and procedures - Management concluded that the company's disclosure controls and procedures were ineffective as of June 30, 2025, due to material weaknesses in internal controls over financial reporting[197] - Remediation efforts include implementing controls to validate accuracy of payables transactions, prevent fraudulent payments, and ensure proper application of ASC 606 for revenue recognition[198][199] - The weaknesses will not be considered fully remediated until controls operate for a sufficient period and are tested for operating effectiveness[200] Changes in Internal Control Over Financial Reporting This section reports any material changes in the company's internal control over financial reporting - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025, other than the ongoing remediation efforts described[201] PART II OTHER INFORMATION This section contains other information not included in the financial statements, such as legal proceedings and exhibits Item 1. Legal Proceedings The company is not currently involved in any pending material litigation - The company does not currently have any pending litigation that it believes to be material[202] Item 1A. Risk Factors This item is not required for the company Item 2. Unregistered Sales of Equity Securities and Use of Proceeds There were no unregistered sales of equity securities or use of proceeds to report Item 3. Defaults Upon Senior Securities There were no defaults upon senior securities to report Item 4. Mine Safety Disclosures This item is not applicable to the company Item 5. Other Information No directors or executive officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the reported periods - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the reported periods[207] Item 6. Exhibits This section lists the exhibits filed with the Quarterly Report on Form 10-Q - Exhibits include the Certificate of Incorporation, Bylaws, Section 302 and 906 certifications, and Inline XBRL documents[208] SIGNATURES The report is duly signed on behalf of Forian Inc. by Max Wygod, Chief Executive Officer, and Michael Vesey, Chief Financial Officer, on August 14, 2025 Signatures The report is duly signed on behalf of Forian Inc. by Max Wygod, Chief Executive Officer, and Michael Vesey, Chief Financial Officer, on August 14, 2025 - The report was signed by Max Wygod, CEO, and Michael Vesey, CFO, on August 14, 2025[211][213]