Forian Inc. announced on March 31, 2025, that its Audit Committee, in consultation with management and independent auditors, determined that previously issued financial statements for 2023 and the third quarter of 2024 should no longer be relied upon. This decision necessitates a restatement of these financial periods. The restatement is due to a technical application of ASC 606, Revenue from Contracts with Customers, regarding the recognition of aggregate annual minimum payments for certain contracts.
The company clarified that this restatement applied only to the technical accounting for a limited number of contracts where variable fees could be earned based on customer sales over specified thresholds. Forian confirmed that the restatement has no impact on the company's cash flows. The restatement is expected to result in an increase to previously reported revenues and net income for all periods since 2021.
Despite the restatement, Forian affirmed its business outlook for the full year ended December 31, 2024. The company continues to expect revenues to be between $19 million and $20 million, and Adjusted EBITDA to range from negative $0.5 million to positive $0.5 million. The company also announced a deferral of its previously scheduled conference call for fourth quarter and full year 2024 results until its first quarter 2025 results are reported.
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