Forian Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenue and a significant net loss compared to the previous fiscal period. The company generated revenue of $4.7 million for the third quarter of 2024, down from $5.3 million in the same quarter of 2023. For the nine months ended September 30, 2024, total revenue was $14.3 million, a decrease from $15.1 million in the prior year. This decline is attributed to contract expirations and customer attrition.

The company's operating loss from continuing operations for the third quarter of 2024 was $795,829, slightly improved from a loss of $807,268 in the same quarter of 2023. However, for the nine months ended September 30, 2024, the operating loss increased to $5.5 million, compared to a loss of $4.7 million for the same period in 2023. The net loss from continuing operations for the third quarter of 2024 was $(204,907), a stark contrast to a net income of $5.5 million in the same quarter of 2023. For the nine-month period, the net loss was $(3.97 million), compared to a net income of $2.1 million in the prior year.

Total assets decreased to $57.5 million as of September 30, 2024, from $58.9 million at the end of 2023. Current assets also fell to $55.8 million, with cash and cash equivalents significantly reduced to $2.7 million from $6.0 million. Total liabilities increased to $30.6 million, primarily due to a rise in current liabilities, which reached $30.1 million, compared to $6.8 million at the end of 2023. Notably, convertible notes payable amounted to $24.4 million, with $6.0 million held by a related party.

In terms of strategic developments, Forian has focused on its analytics solutions for the healthcare and life sciences sectors following the divestiture of its cannabis-related operations. The company completed the sale of its subsidiary BioTrack in February 2023, which has been classified as discontinued operations. Additionally, Forian has identified material weaknesses in its internal controls over financial reporting, prompting the implementation of new processes and the engagement of an outside consulting firm to assist in remediation efforts.

The company’s stockholders' equity increased to $26.9 million as of September 30, 2024, from $26.2 million at the end of 2023, despite an increase in the accumulated deficit to $(51.7 million). The financial results reflect ongoing challenges in revenue generation and operational efficiency, alongside strategic shifts in focus and management of financial controls.