Company: FORA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042313
Chunk: 12

Company: Forian Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 12
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 the evaluation of new information resulting in the recognition, derecognition, or re-measurement of a tax position taken in a prior annual period is recognized separately in the period of the change.

   For the three and nine months ended September 30, 2025, the Company recognized a net income tax benefit of $18,647 and net income tax expense of $104,282. For the three and nine months ended September 30, 2024, the Company recognized a net income tax benefit of $95,896 and net income tax expense of $14,865. The Company claims R&D tax credits on eligible R&D expenditures. The R&D tax credits are recognized as a reduction to income tax expense. 

   The Company files a consolidated U.S. income tax return and tax returns in certain state and local jurisdictions. As of September 30, 2025, the Company is not currently under any examination in any tax jurisdiction.

   Tax contingencies are recorded, if needed, to address potential exposure involving tax positions the Company has taken that could be challenged by tax authorities. These potential exposures could result from applications of various statutes, rules, regulations and interpretations. Any estimates of tax contingencies contain assumptions and judgments about potential actions by taxing jurisdictions. Any interest and penalties related to uncertain tax positions would be included as part of the income tax provision. The Company’s conclusions regarding uncertain tax positions may be subject to review and adjustment at a later date based upon ongoing analysis of or changes in tax laws, regulations and interpretations thereof as well as other factors.

   On July 4, 2025, the One Big Beautiful Bill was enacted (“OBBBA”), introducing significant and wide-ranging changes to the U.S. federal tax system. Significant components include restoration of 100% accelerated tax depreciation on qualifying property including expansion to cover qualified production property and the return to immediate expensing of domestic research and experimental expenditures (“R&E”). With respect to the immediate expensing of domestic R&E, the Company expects to file a method of accounting change for the capitalized domestic 174 R&E expenditures as of January 1, 2025 with a 481(a) adjustment in the 2025 taxable year. The Company recorded a credit to income taxes related to the accounting change during the period ended September 30, 2025. The change in accounting method did not materially impact the Company’s deferred tax assets or income tax expense due to the existing valuation allowance. 

   Litigation Settlements and Related Expenses 

   Litigation settlements and related expenses