Company: FORA
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001140361-25-042313
Chunk: 33

Company: Forian Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 8
Chunk 33
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 As a result, the Company recorded an adjustment of $175,000 included in cost of revenues during the three months ended June 30, 2025, representing previously recorded charges under the contract that will not be paid.

   Research and Development

   Research and development expenses consist primarily of employee-related expenses, subcontractor and third-party consulting fees and hosted infrastructure costs. The Company continues to focus research and development efforts on adding new features and applications to its product offerings.

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   Sales and Marketing

   Sales and marketing expense is primarily salaries and related expenses, including commissions, for sales, marketing and product management staff. Marketing program costs are also recorded as sales and marketing expense including advertising, market research and events (such as trade shows, corporate communications, brand building, etc.). The Company plans to continue investing in marketing and sales by expanding selling and marketing staff, building brand awareness, attracting new clients and sponsoring additional marketing events. The timing of these marketing events may affect marketing costs in any particular period.

   General and Administrative Expenses

   General and administrative expenses include salaries, benefits and other costs of departments serving administrative functions, such as executives, finance and accounting and human resources. In addition, general and administrative expense includes non-personnel costs, such as professional fees, legal fees, accounting and finance advisory fees and other supporting corporate expenses not allocated to cost of revenues, product and development or sales and marketing.

   Litigation Settlements and Related Expenses

   Litigation settlements and related expenses result from the defense and settlement of legacy claims assumed in the Helix merger.

   Strategic Review and Acquisition Related Expenses

   Strategic review and acquisition related expenses are primarily related to professional fees incurred related to an unsolicited offer to take the Company private in 2025 and a strategic review of the Company’s operations and acquisition of Kyber in 2024.

   Depreciation and Amortization Expenses

   Depreciation and amortization relate to long lived assets used in the Company’s business. Depreciation expense relates primarily to furniture and equipment and computers.

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   Results of Operations For the Three and Nine Months Ended September 30, 2025 and 2024

   The following table summarizes the results of operations for the periods indicated:

      For the Three Months Ended September 30,     
      For the Nine Months Ended September 30,     

      2025

      2024

      2025

      2024

      Revenues

     $7,762