Forian Inc. announced it will restate its historical financial statements, affecting reporting periods from 2021 through 2024. The restatement stems from a technical adjustment in revenue recognition accounting under ASC 606, which requires recognizing aggregate annual minimum contract payments on a straight-line basis.
The accounting modification applies to a limited number of contracts with variable fee structures and will not impact the company's cash flows. Forian expects the restatement to result in increases to previously reported revenues and net income across all affected periods.
Despite the accounting adjustment, Forian maintains its original financial outlook for 2024. The company continues to project revenues between $19 million and $20 million, with Adjusted EBITDA expected to range from negative $0.5 million to positive $0.5 million.
The restatement will delay the company's annual report filing, with Forian planning to submit a notification of late filing. The company anticipates completing its 2024 Form 10-K within the SEC-provided 15-calendar-day extension period.
Consequently, Forian will defer its previously scheduled earnings conference call and webcast until it reports first-quarter 2025 financial results. The company emphasized that the accounting adjustment is technical in nature and does not signal broader financial irregularities.
