Forian Inc.FORA

Forian Inc. Segments Disclosure

10-KFiled Mar 30, 20232 min read
Note 16
SEGMENT RESULTS


The Company provides innovative software and information solutions and proprietary predictive analytics to optimize the operational, clinical and financial performance of its customers within the healthcare and cannabis industries.


ASC 280 requires that public companies report profits and losses and certain other information on their “reportable operating segments” in their annual and interim financial statements. The internal organization used by the public company’s Chief Operating Decision Maker (CODM) to assess performance and allocate resources determines the basis for reportable operating segments. The Company’s CODM is the Chief Executive Officer. The CODM evaluates financial performance based on Revenues and Operating Income. The CODM does not review assets by operating segment for the purposes of assessing performance or allocated resources.


The Company has three operating and reportable segments, which are consistent with its reporting units as follows:


The “Information and Software” segment licenses information and software products to customers. Revenues in this segment are currently derived from customers in the healthcare or cannabis industries; however, the Company’s information may be licensed to other customer segments as the Company leverages its analytics platform.


The “Services” segment provides implementation, support and training on a contractual basis to customers. Revenues in this segment are primarily generated from the operation of cannabis related “seed to sale” traceability platforms for government entities.


The “Other” segment consists of certain other business operations, primarily in security and marketing services.


The following represents selected information for the Company’s reportable segments:

   
Year Ended December 31,
  
   
2022
    
2021
  
Information and Software
            
Revenue
  
$
26,185,945
    
$
14,952,247
  
Costs and expenses
    
28,437,463
      
26,412,188
  
Loss from operations
  
$
(2,251,518
)
  
$
(11,459,941
)
Total other income/(expense)
    
—
      
—
  
Loss before income taxes
  
$
(2,251,518
)
  
$
(11,459,941
)
                 
Services
                
Revenue
  
$
1,545,656
    
$
1,122,528
  
Costs and expenses
    
1,167,691
      
1,182,834
  
Income (loss) from operations
  
$
377,965
    
$
(60,306
)
Total other income/(expense)
    
—
      
—
  
Income (loss) before income taxes
  
$
377,965
    
$
(60,306
)
                 
                 
Other
                
Revenue
  
$
274,256
    
$
804,940
  
Costs and expenses
    
675,114
      
1,079,144
  
Loss from operations
  
$
(400,858
)
  
$
(274,204
)
Total other income/(expense)
    
50
      
(787
)
Loss before income taxes
  
$
(400,808
)
  
$
(274,991
)
                 
Centrally Managed Costs
                
Revenue
  
$
—
    
$
—
  
Costs and expenses
    
23,813,320
      
15,822,306
  
Loss from operations
  
$
(23,813,320
)
  
$
(15,822,306
)
Total other income/(expense)
    
139,690
      
1,088,950
  
Loss before income taxes
   $
(23,673,630
)
   $
(14,733,356
)
Income tax expense
     (23,980 )     (22,511 )
Net loss
   $ (23,697,610 )   $ (14,755,867 )
                 
Totals
                
Revenue
  
$
28,005,857
    
$
16,879,715
  
Costs and expenses
    
54,093,588
      
44,496,472
  
Loss from operations
  
$
(26,087,731
)
  
$
(27,616,757
)
Total other income/(expense)
    
139,740
      
1,088,163
  
Loss before income taxes
   $ (25,947,991 )   $ (26,528,594 )
Income tax expense
     (23,980 )     (22,511 )
Net loss
  
$
(25,971,971
)
  
$
(26,551,105
)


Approximately 99% and 98% of the Company’s revenues were attributable to customers in the United States for the years ended December 31, 2022 and 2021, respectively.

Historical Timeline

Fiscal YearFiled
2022Mar 30, 2023Showing above
2021Mar 31, 2022

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesEarnings Per SharePP&ELeasesDebtCommitmentsStock CompensationNew Standards