Forian(US:FORA)2024-05-14 20:54Revenue Performance - Revenues for Q1 2024 were $4,877,378, a slight increase of $6,991 compared to $4,870,387 in Q1 2023, primarily driven by increased sales in the healthcare industry[127]. - The company reported revenue of $4,877,378 for the three months ended March 31, 2024, compared to $4,870,387 in the same period of 2023[145]. Cost and Expenses - Cost of revenues increased to $1,703,357 in Q1 2024, up $451,142 from $1,252,215 in Q1 2023, resulting in a gross profit margin decrease to 65% from 74% year-over-year[128]. - Research and development expenses decreased to $389,889 in Q1 2024, down $141,800 from $531,689 in Q1 2023, reflecting a shift in focus to healthcare analytics[129]. - Sales and marketing expenses were $1,055,141 in Q1 2024, a decrease of $141,051 compared to $1,196,192 in Q1 2023, attributed to lower salaries and scaling expenses[130]. - General and administrative expenses decreased to $3,492,454 in Q1 2024, down $147,372 from $3,639,826 in Q1 2023, mainly due to reduced personnel and consulting costs[132]. Profitability and Loss - The operating loss from continuing operations improved to $(1,772,350) in Q1 2024 from $(2,387,797) in Q1 2023[126]. - Adjusted EBITDA for the three months ended March 31, 2024, was $104,417, an increase of $291,200 compared to a loss of $186,783 for the same period in 2023, primarily due to higher revenues and lower operating expenses[146]. - The company generated a net loss of $1,212,615 for the three months ended March 31, 2024, compared to a net loss of $2,248,799 for the same period in 2023[145]. Cash Flow and Investments - Net cash used in operating activities increased to $2,208,070 for the three months ended March 31, 2024, up by $1,006,293 from $1,201,777 in the same period of 2023[149]. - Net cash used in investing activities increased to $1,774,425 for the three months ended March 31, 2024, compared to $633,003 in the same period of 2023[150]. - Net cash used in financing activities rose to $1,031,363 for the three months ended March 31, 2024, compared to $94,599 in the same period of 2023, primarily due to $950,000 used to redeem convertible securities[152]. - Cash and marketable securities totaled $47,434,985 as of March 31, 2024, with outstanding principal and accrued interest on the Notes amounting to $23,981,788[147]. Strategic Focus and Future Plans - The company plans to continue investing in marketing and sales to build brand awareness and attract new clients[123]. - The company has shifted its focus away from the cannabis industry, following the sale of its subsidiary BioTrack in 2023[118]. - The company expects to continue funding operations and potential future acquisitions through cash flow from operations, available cash, marketable securities, debt financing, and/or additional equity issuances[147]. - The company sold BioTrack for $30,000,000, consisting of $20,000,000 in cash at closing and $10,000,000 in future payments[147]. Non-Recurring Expenses - The company recorded severance expenses of $250,000 related to the resignation of its CEO, which are excluded from Adjusted EBITDA as they are not recurring[145]. - Adjusted EBITDA is used as a performance measure, excluding non-cash expenses like depreciation and stock-based compensation, which helps in evaluating operational performance[135]. - The company recognizes that interest expense from convertible notes of $24,000,000 will recur in future periods, impacting financial performance assessments[140].