Forian Inc. Reports $20.2 Million Revenue Decline and Expands Offerings with Kyber Acquisition

Forian Inc. reported a revenue of $20.2 million for the fiscal year ending December 31, 2024, a decline of approximately 5% from the $21.2 million recorded in 2023. The decrease in revenue was attributed to the expiration and attrition of certain customer contracts, alongside $514,000 in service credits issued to customers due to disruptions related to the termination of upstream data contracts. The company's operating loss from continuing operations widened to $7.0 million in 2024, compared to a loss of $4.9 million in the previous year, primarily driven by increased costs associated with the acquisition of Kyber Data Science LLC and higher information licensing expenses.

In terms of strategic developments, Forian completed the acquisition of Kyber on October 31, 2024, which is expected to enhance its offerings in the financial services sector. The acquisition was accounted for as a bargain purchase, resulting in a gain of $1.2 million. Additionally, the company divested its cannabis-related operations, including the sale of BioTrack, which was finalized in February 2023. This strategic shift has allowed Forian to focus on its core analytics solutions for healthcare and financial services.

Operationally, Forian's customer base remains concentrated, with two customers accounting for 28.5% of total revenue in 2024. The company reported a total of 48 employees as of April 9, 2025, with no employees represented by a labor union. Engagement metrics showed that the company’s information products are primarily utilized in the United States, which accounted for 90% of total sales in 2024, up from 88% in 2023. The company continues to explore new data sources to mitigate the impact of vendor changes on its operations.

Looking ahead, Forian aims to enhance its product offerings and expand its customer base through increased marketing and sales efforts. The company plans to invest in research and development to innovate its analytics solutions further. However, it faces challenges, including the need to address material weaknesses in its internal controls over financial reporting, which could impact its operational effectiveness. The management is actively working on remediation strategies to strengthen these controls and ensure compliance with regulatory requirements.