Company: FORA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042313
Chunk: 42

Company: Forian Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 42
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 Comparison of the Nine Months Ended September 30, 2025 and 2024

   Adjusted EBITDA

   Adjusted EBITDA for the nine months ended September 30, 2025, was $1,010,940 compared to $368,535 for the nine months ended September 30, 2024, an increase of $642,405. The increase is primarily due to higher revenues, partially offset by the increased cost of revenues and other operating expenses discussed above.

   Liquidity and Capital Resources

   Historically, the Company’s operations have been financed primarily from cash flow from operating activities, cash proceeds received from the sale of investments, equity issuances and the issuance of the Notes. On February 10, 2023, the Company sold BioTrack for $30,000,000 consisting of $20,000,000 in cash at closing and twelve unconditional monthly payments aggregating $10,000,000 thereafter. On July 21, 2023, the Company sold a minority equity interest in a customer for cash proceeds of $5,805,858 and future contingent earnout payments aggregating up to $3,600,000 in 2025 and 2026. These transactions have provided additional cash and liquidity to the Company. During 2024 and 2025, the Company redeemed $18,881,466 and $6,840,000 in outstanding principal and interest on its Notes, respectively. As of September 30, 2025, the Company’s balance of cash and marketable securities aggregated $28,225,038 and there was no remaining outstanding principal and accrued interest on the Notes, which had a maturity date of September 1, 2025. The Company expects to continue to fund its operations and potential future acquisitions through a combination of cash flow generated from operating activities, available cash and marketable securities, debt financing and/or additional equity issuances.

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   Cash Flows

   The following table summarizes selected information about sources and uses of cash and cash equivalents for the periods presented:

     For the Nine Months Ended September 30,     

      2025

      2024

      Net cash used in operating activities

     $(336,017) 
     $(1,467,084) 

      Net cash provided by (used in) investing activities

      7,838,178 
      (730,177) 

      Net cash used in financing activities