Company: FORA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042313
Chunk: 3

Company: Forian Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 3
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 assets. The allowance for credit losses for accounts receivable was $225,000 at September 30, 2025 and $225,000 at December 31, 2024. The allowance for credit losses for contract assets was $279,167 at September 30, 2025 and $225,000 at December 31, 2024. 

   Management charges account balances against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

   Proceeds Receivable From Sale of Discontinued Operations, Net 

   In February 2023, the Company received a note for $10,000,000 payable in twelve equal monthly installments as partial consideration for the sale of Bio-Tech Medical Software, Inc., a Florida corporation (“BioTrack”). As of February, 2024 the note has been fully paid. The Company recognized $0 and $0 and $0 and $20,712 of amortization of the $410,000 original discount recorded on the note interest as investment income for the three and nine months ended September 30, 2025 and 2024, respectively. 

   Business Combinations 

   The Company accounts for its business combinations under the provisions of ASC Topic 805-10, which requires that the acquisition method of accounting be used for all business combinations. Assets acquired and liabilities assumed, including non-controlling interests, are recorded at the date of acquisition at their respective fair values. Any excess fair value of the net tangible and intangible assets acquired over the purchase price is recorded as bargain purchase gain in the statements of operations at the acquisition closing date. During the measurement period, which extends no later than one year from the acquisition date, the Company may record certain adjustments to the carrying value of the assets acquired and liabilities assumed. After the measurement period, all adjustments are recorded in the condensed consolidated statements of operations as operating expenses or income. Acquisition-related expenses are recognized separately from the business combinations and are expensed as incurred.

   Revenue Recognition 

   The Company recognizes revenue in accordance with FASB Topic 606, Revenue from Contracts with Customers (“ASC 606”).

   Under ASC 606, the Company recognizes revenue when (or as) customers obtain control of promised goods or services, in an amount that reflects the consideration which is expected to be received in exchange for those goods or services. The Company recognizes revenue following the five-step model prescribed under ASC 606: (i) identify contract(s) with a customer; (ii) identify the performance obligation