Company: FORA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042313
Chunk: 5

Company: Forian Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 5
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 each reporting period. The effect of revisions in recognized estimated variable consideration in excess of minimums are recorded beginning in the period in which the estimates are revised. Actual results could differ from periodic estimates.

   Significant judgments and estimates are sometimes necessary for the determination of whether performance obligations in a contract are distinct and whether they are delivered at a point in time or over time. Judgement is also necessary to assess revenue recognized under variable revenue arrangements.

   Contract acquisition costs, which consist of sales commissions paid or payable, are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial and renewal contracts are deferred and then amortized on a straight-line basis over the contract term.

   Contract assets and deferred revenues consist of the following as of September 30, 2025 and December 31, 2024: 

      Contract Assets

      Contract Liability

      Costs of obtaining contracts

      Unbilled revenue

      Total

      Deferred Revenue

      Balance at January 1, 2024

    $107,332 
     $2,543,477 
     $2,650,809 
     $2,225,009 

      Beginning deferred revenue balance recognized during the period

      —  
       —  
       —  
      (1,975,009) 

      Net change due to acquisition

      —  
       —  
       —  
      2,059,560 

      Net change due to timing of billings, payments and recognition

     (44,882) 
      (19,215) 
      (64,097) 
      2,178,126 

      Balance at December 31, 2024

     62,450 
      2,524,262 
      2,586,712 
      4,487,686 

      Beginning deferred revenue balance recognized during the period

      —  
       —  
       —  
      (4,230,014) 

      Net change due to timing of billings, payments and recognition

     82,925 
      75,085 
      158,010 
      3,786,601 

      Balance at September 30, 2025

    $145,375 
     $2,599,347