Company: FORA
Filing Date: 2025-03-31
Form Type: 8-K
Source: 0001140361-25-011363
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Company: Forian Inc.
Filing Date: 2025-03-31
Form: 8-K
Item: Item 4.02
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Item 4.02      Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review  

On March 30, 2025, the Audit Committee (the “ Audit Committee”) of the Board of Directors of the Company (the “ Board”), based
on the recommendation of, and after consultation with, the Company’s management and independent auditors, determined that the Company’s previously issued unaudited and audited consolidated financial statements as of and for each of the
quarterly and year to date periods in 2023 and the quarterly period ended September 30, 2024 (the “ Non-Reliance Periods”) should no longer be relied upon. Similarly, any previously issued or filed reports, press releases, earnings releases, and
investor presentations or other communications describing the Company’s financial statements and other related financial information covering the Non-Reliance Periods should no longer be relied upon.

During the course of the audit of the Company’s 2024 financial statements, management of the Company, after discussion
with its independent auditors, determined that under ASC 606, Revenue from Contracts with Customers(“ ASC 606”), aggregate annual minimum payments for certain contracts should be recognized on a straight line basis over the life of the contract, as opposed to individually in the year in
which the minimum fee applies under the terms of the contract. As a result, the Company will restate its previously reported financial statements for the periods that were affected. This restatement applied only to the technical application
of ASC 606 to a limited number of contracts where the Company may earn variable fees based on customer sales over certain thresholds specified in the contract and had no impact on the Company’s cash flows. This restatement is expected to
result in an increase to previously reported revenues and net income for all periods since 2021.

The Company will disclose in itsAnnual Report on Form
10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), the restated financial statements for each of the Non-Reliance Periods (the “ Restatements”),
and is currently working to complete the filing of the 2024 Form 10-K as soon as practicable.

The Company’s management and the Board have discussed the matters disclosed in this Current Report on Form 8-K pursuant to this Item 4.02 with Marcum
LLP, the Company’s independent registered public accounting firm.

Cautionary Note Regarding Forward-Look