Forian(US:FORA)2025-11-14 21:17Revenue Performance - Revenues for the three months ended September 30, 2025, were $7,762,183, an increase of $3,075,871 (65.6%) compared to $4,686,312 for the same period in 2024, primarily due to the acquisition of Kyber and organic growth [153]. - Revenues for the nine months ended September 30, 2025, were $22,294,439, an increase of $7,953,648 (55.5%) compared to $14,340,791 for the same period in 2024, driven by the Kyber acquisition and organic growth [162]. - Revenue for the three months ended September 30, 2025, was $7,762,183, compared to $4,686,312 for the same period in 2024 [181]. - Revenue for the nine months ended September 30, 2025, reached $22,294,439, up from $14,340,791 in 2024 [181]. Cost and Expenses - Cost of revenues for the three months ended September 30, 2025, was $3,753,561, an increase of $2,350,641 (167.5%) compared to $1,402,920 for the same period in 2024, mainly due to the Kyber acquisition and higher licensing expenses [154]. - Cost of revenues for the nine months ended September 30, 2025, was $10,113,352, an increase of $5,200,157 (105.9%) compared to $4,913,195 for the same period in 2024, attributed to the Kyber acquisition and increased processing expenses [163]. - Research and development expenses for the three months ended September 30, 2025, were $676,172, an increase of $384,210 (131.4%) compared to $291,962 for the same period in 2024, primarily due to the Kyber acquisition [155]. - Sales and marketing expenses for the three months ended September 30, 2025, were $1,461,348, an increase of $504,365 (52.7%) compared to $956,983 for the same period in 2024, driven by the Kyber acquisition and increased compensation [156]. - General and administrative expenses for the three months ended September 30, 2025, were $2,118,273, a decrease of $739,911 (25.9%) compared to $2,858,184 for the same period in 2024, mainly due to lower stock compensation expenses [157]. Profitability and Loss - Gross profit as a percentage of revenues decreased to 52% for the three months ended September 30, 2025, down from 70% for the same period in 2024 [154]. - Net loss for the three months ended September 30, 2025, was $151,220, compared to a net loss of $204,907 for the same period in 2024, reflecting an improvement in financial performance [152]. - Adjusted EBITDA for the three months ended September 30, 2025, was $470,645, an increase of $284,729 compared to $185,916 for the same period in 2024 [182]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,010,940, reflecting an increase of $642,405 from $368,535 in the prior year [183]. Cash Flow and Financing - Net cash used in operating activities decreased to $336,017 for the nine months ended September 30, 2025, from $1,467,084 in 2024, a reduction of $1,131,067 [186]. - Net cash provided by investing activities increased to $7,838,178 for the nine months ended September 30, 2025, compared to cash used of $730,177 for the same period in 2024, reflecting a change of $8,568,355 [187]. - Net cash used in financing activities rose to $7,432,200 for the nine months ended September 30, 2025, an increase of $6,294,163 from $1,138,037 in the prior year [188]. - The company expects to fund future operations and acquisitions through cash flow from operations, available cash, marketable securities, debt financing, and equity issuances [184]. - As of September 30, 2025, the company's cash and marketable securities totaled $28,225,038, with no remaining outstanding principal on the convertible notes [184]. - The company redeemed $18,881,466 in outstanding principal and interest on its convertible notes during 2024 and $6,840,000 in 2025 [184]. Accounting and Compliance - The company evaluates its estimates related to revenues, stock-based compensation, income taxes, business combinations, and allowance for credit losses on an ongoing basis [190]. - The company utilizes judgment to determine performance obligations in contracts and assess revenue recognized under variable revenue arrangements [194]. - The company has implemented all new applicable accounting pronouncements, which did not have any material impact on the financial statements [203]. - The FASB issued ASU 2023-09, effective after December 15, 2024, requiring additional disclosures related to income taxes paid and rate reconciliation [200]. - The FASB issued ASU 2024-03, effective after December 15, 2026, requiring additional disclosures about income statement expenses [201]. - The FASB issued ASU 2025-05, effective after December 15, 2025, introducing a practical expedient for measuring credit losses on accounts receivable [202]. - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements and related disclosures [200]. - As an "emerging growth company," the company is utilizing the extended transition period for implementing new or revised accounting standards under the JOBS Act [204].