FORIAN: Administration report and evaluation of the monetary scenario and working outcomes (Kind 10-Q)

Warning concerning forward-looking info

The next dialogue of our monetary situation and outcomes of operations
for the three and 6 months ended June 30, 2021 and 2020, respectively, ought to
be learn at the side of our unaudited condensed consolidated monetary
statements and the notes to these statements which can be included elsewhere on this
report. Our dialogue consists of forward-looking statements primarily based upon present
expectations that contain dangers and uncertainties, reminiscent of our plans,
aims, expectations and intentions. Precise outcomes and the timing of occasions
may differ materially from these anticipated in these forward-looking
statements on account of plenty of components, together with these set forth beneath
Merchandise 1A. Threat Components showing in our Annual Report on Kind 10-Ok for the yr
ended December 31, 2020, as filed with the SEC on March 31, 2021. We use phrases
reminiscent of "anticipate," "estimate," "plan," "mission," "persevering with," "ongoing,"
"anticipate," "consider," "intend," "could," "will," "ought to," "may," and comparable
expressions to establish forward-looking statements.

Except expressly indicated or the context signifies in any other case, the phrases “Forian”, the “Firm”, “we”, “our” and “our” discuss with Forian Inc.

Overview

The Firm was initially included in Delaware on October 15, 2020 as a
wholly owned subsidiary of Medical Outcomes Analysis Analytics, LLC ("MOR"),
which was based in Delaware on Might 6, 2019, in reference to the Enterprise
Mixture described beneath. On October 16, 2020, the Firm entered right into a
definitive settlement with Helix Applied sciences, Inc. ("Helix") and MOR, pursuant
to which DNA Merger Sub, Inc., a completely owned subsidiary of the Firm ("Merger
Sub"), merged with and into Helix, with Helix surviving the merger as a completely
owned subsidiary of the Firm (the "Merger"). On March 2, 2021, the Firm
entered right into a definitive settlement with the fairness holders of MOR, pursuant to
which the fairness holders of MOR contributed their pursuits in MOR to the
Firm in trade for shares of Firm widespread inventory (the "Contribution" and
along with the Merger, the "Enterprise Mixture"). Following consummation of
the Enterprise Mixture on March 2, 2021, the Firm grew to become the father or mother firm
of each Helix and MOR. Helix supplies traceability and level of sale expertise,
analytics options and different merchandise to clients inside every vertical of the
hashish business to assist them enhance the efficiency of their enterprise.

The Firm supplies revolutionary software program options, proprietary knowledge and
predictive analytics to optimize the operational and monetary efficiency of
our clients. Given the prior expertise of our administration workforce, our preliminary
focus is on stakeholders inside the healthcare and hashish industries. Nonetheless,
we consider the appliance of our choices throughout different verticals to reinforce
the transparency and efficacy of our clients' relationships with their
communities and clients is equally compelling.

                                       30

————————————————– ——————————

Contents

The Firm represents the distinctive convergence of proprietary healthcare,
client and hashish knowledge, SaaS analytics, revolutionary knowledge administration
capabilities and clever knowledge science with a number one hashish expertise
platform yielding the mixed energy to drive innovation and transparency throughout
the industries we serve. In MOR, there was early recognition of the chance
to carry the sophistication of confirmed knowledge science expertise and analytics
options to a distinguished hashish expertise platform supplier, creating
innovation in each the purposes which can be key to supporting buyer success
inside the hashish business and to the info science powered insights that drive
healthcare and different mature regulated development industries. In Helix, there was
realization that the potential set of a expertise options supplier inside
extra advanced sectors along with the observe report of the MOR administration workforce
supplied a novel alternative to reinforce the worth that Helix brings to its
hashish clients and to the business typically.

The Firm's mission is to offer our clients with the best-in-class
important expertise providers by a single built-in Forian platform that
permits our clients inside the healthcare and hashish industries to function
their companies extra safely, effectively and profitably and to serve our
clients and our clients' stakeholders and constituencies extra
comprehensively.

A novel pressure of coronavirus (COVID-19) was first recognized in December 2019,
and subsequently declared a pandemic by the World Well being Group. Our
enterprise has largely operated in a work-from-home surroundings for the reason that
inception of the pandemic and, because of this, has skilled restricted enterprise
disruption so far. Our administration workforce continues to deal with the best stage
of security measures to guard our staff. We've got not skilled a cloth
affect to our monetary outcomes so far, nevertheless, COVID-19 continues to current
vital uncertainty sooner or later financial outlook for our clients and the
markets we serve.

Overview of economic transactions

The next dialogue presents sure components of our earnings statements and the components that have an effect on these components.

Revenue

Revenues are derived from Info and Software program Merchandise, Providers and Different
Merchandise. Info and Software program revenues are generated from licensing charges
for our proprietary info and software program merchandise. The Firm acknowledges
revenues from Info and Software program merchandise as efficiency obligations beneath
buyer contracts are glad. Providers revenues are primarily from contracts
with authorities companies and income is acknowledged upon completion of the
varied milestones inside the contract. Different revenues are primarily from
safety monitoring providers choices and the supply of net advertising and marketing
providers. Contracts for these providers have a acknowledged transaction value for
month-to-month providers and are acknowledged because the providers are offered.

Price of earnings

Price of income is generated from direct prices related to the supply of
our services to our clients. The price of income relates
primarily to labor prices, internet hosting and infrastructure prices and consumer service
workforce prices. We report the price of direct success as price of income.
Infrastructure and licensed knowledge prices, that are shared throughout all initiatives or
teams of initiatives, aren't charged to price of income.

                                       31

————————————————– ——————————-

Contents

Analysis and improvement

Analysis and improvement prices primarily include personnel prices, guide and subcontractor charges and hosted infrastructure prices. We proceed to focus our analysis and improvement efforts on including new options and purposes to our product choices. As soon as our prototypes are confirmed, we start to capitalize eligible prices with related improvement moderately than recording these prices as analysis and improvement.

Gross sales and Advertising and marketing

Gross sales and advertising and marketing expense is primarily salaries and associated bills,
together with commissions, for our gross sales, advertising and marketing and product administration workers.
Advertising and marketing program prices are additionally recorded as gross sales and advertising and marketing expense
together with promoting, market analysis and occasions (reminiscent of commerce reveals,
company communications, model constructing, and so forth.). The Firm plans to proceed
to spend money on advertising and marketing and gross sales by increasing our promoting and advertising and marketing workers,
constructing model consciousness, attracting new purchasers and sponsoring extra
advertising and marketing occasions. The timing of those advertising and marketing occasions will have an effect on our advertising and marketing
prices in any explicit quarter.

Normal and administrative bills

Normal and administrative bills embody salaries and advantages and different
prices of departments serving administrative features, reminiscent of executives,
finance and accounting and human assets. As well as, normal and
administrative expense consists of non-personnel prices, reminiscent of skilled charges,
authorized charges, accounting and finance advisory charges and different supporting company
bills not allotted to price of income, product and improvement or gross sales and
advertising and marketing.

Depreciation prices

Depreciation and Amortization relate to lengthy lived belongings utilized in our enterprise.
Depreciation expense relates primarily to furnishings and gear, computer systems and
automobiles. Amortization expense relates primarily to identifiable intangibles of
acquired firms.

Transaction bills

Transaction associated bills relate to the acquisition of Helix on March 2, 2021
and embody skilled, authorized, accounting and finance advisory charges and different
direct bills.

Crucial accounting insurance policies and use of estimates

Our administration's dialogue and evaluation of our monetary situation and outcomes
of operations relies on our monetary statements, which we have now ready in
accordance with U.S. typically accepted accounting ideas ("U.S. GAAP"). We
consider that a number of accounting insurance policies are essential to understanding our
historic and future efficiency. We refer to those insurance policies as important
as a result of these particular areas typically require us to make judgments and
estimates about issues which can be unsure on the time we make the estimate, and
completely different estimates - which additionally would have been cheap - may have been
used. On an ongoing foundation, we consider our estimates and judgments, together with
these described in higher element beneath. We base our estimates on historic
expertise and different market-specific or different related assumptions that we
consider to be cheap beneath the circumstances, the outcomes of which kind the
foundation for making judgments concerning the carrying worth of belongings and liabilities
that aren't readily obvious from different sources. Precise outcomes could differ from
these estimates beneath completely different assumptions or circumstances.

Crucial accounting insurance policies and estimates are additional mentioned in our Annual
Report on Kind 10-Ok for the yr ended December 31, 2020, as filed with the SEC
on March 31, 2021.

                                       32

————————————————– ——————————

Contents

Outcomes of operations for the three and 6 months ended June 30, 2021 and 2020

The next desk summarizes our condensed working outcomes for the intervals indicated:

                                                For the Three Months Ended,              For the Six Months Ended,
                                            June 30, 2021         June 30, 2020      June 30, 2021       June 30, 2020
Revenues                                   $      4,547,985$       108,750$    6,168,594$       175,417
Prices and Bills
Price of Revenues                                  1,232,790                    -          1,690,676                   -
Analysis and improvement                          1,949,926              426,398          3,447,764             815,391
Gross sales and advertising and marketing                               1,177,035               55,978          1,776,010             111,044
Normal and administrative                        6,577,696              326,832          9,362,258             629,085
Depreciation and amortization                       595,488                1,419            783,072               1,873
Transaction associated bills                              -               90,506          1,210,279              90,506
Loss from operations                       $     (6,984,950 )    $      

(792,383) $ (12 101 465)$ (1,472,482)

Comparability of the three accomplished months June 30, 2021 and 2020

Revenue

Revenues for the three months ended June 30, 2021 have been $4,547,985, which
represented a rise of $4,439,235, in comparison with complete income of $108,750 for
the three months ended June 30, 2020. These revenues have been primarily from
Info and Software program merchandise. The rise is because of the inclusion of
revenues from the Helix acquisition, which contributed 71% of the rise, and
greater revenues from the Firm's Info merchandise, which contributed 29%
of the rise. Revenues from the Firm's Info merchandise elevated
$1,286,881 or 1183% in comparison with the three months ended June 30, 2020.

Price of earnings

Price of revenues elevated by $1,232,790 for the three months ended June 30,
2021 from $0 for the three months ended June 30, 2020. The rise associated to
direct prices associated to the supply of revenues. This improve was primarily
from elevated revenues of the Firm's Info and Software program merchandise. The
improve is because of the inclusion of the Helix acquisition, which contributed 92%
of the rise, and better price of revenues from the Firm's Info
merchandise, which contributed 8% of the rise.

Analysis and improvement

Analysis and improvement bills for the three months ended June 30, 2021 have been
$1,949,926, which represented a rise of $1,523,528 in comparison with complete
analysis and improvement bills of $426,398 for the three months ended June
30, 2020. The rise is because of greater R&D bills associated to scaling the
Firm's merchandise, which contributed 80% of the rise, stock-based
compensation bills associated to fairness awards granted to new Firm staff
after we grew to become a public firm on March 2, 2021, which contributed
roughly 5% of the rise, and the inclusion of the Helix acquisition,
which contributed 15% of the rise.

                                       33

————————————————– ——————————

Contents

Gross sales and Advertising and marketing

Gross sales and advertising and marketing bills for the three months ended June 30, 2021 have been
$1,177,035, which represented a rise of $1,121,057 in comparison with complete gross sales
and advertising and marketing bills of $55,978 for the three months ended June 30, 2020. The
improve is because of greater bills associated to scaling the Firm's merchandise,
which contributed 60% of the rise, stock-based compensation bills associated
to fairness awards granted to new Firm staff after we grew to become a public
firm on March 2, 2021, which contributed roughly 16% of the rise,
and the inclusion of the Helix acquisition, which contributed 24% of the
improve.

Normal and administrative

Normal and administrative bills for the three months ended June 30, 2021
have been $6,577,696, which represented a rise of $6,250,864 in comparison with normal
and administrative bills of $326,832 for the three months ended June 30,
2020. The rise is because of greater bills associated to scaling the Firm's
administration group, which contributed 40% of the rise, stock-based
compensation bills associated to fairness awards granted to key Helix staff
and new Firm hires after we grew to become a public firm on March 2, 2021, which
contributed roughly 40% of the rise, and the inclusion of the Helix
acquisition, which contributed 20% of the rise.

Transaction associated bills

Transaction associated bills for the three months ended June 30, 2021 have been $0,
which represented a lower of $90,506 in comparison with transaction associated bills
of $90,506 for the three months ended June 30, 2020. These bills associated to
the acquisition of Helix, which was accomplished on March 2, 2021.

Comparability of the finished six months June 30, 2021 and 2020

Revenue

Revenues for the six months ended June 30, 2021 have been $6,168,594, which
represented a rise of $5,993,177 in comparison with complete income of $175,417 for
the six months ended June 30, 2020. These revenues have been primarily from
Info and Software program merchandise. The rise is because of the inclusion of
revenues from the Helix acquisition since March 2, 2021, which contributed 70%
of the rise, and better revenues from the Firm's merchandise, which
contributed 30% of the rise. Revenues from the Firm's Info
merchandise elevated $1,794,050 or 1023% in comparison with the six months ended June 30,
2020.

Price of Revenues

Price of revenues elevated by $1,690,676 for the six months ended June 30, 2021
from $0 for the six months ended June 30, 2020. The rise associated to direct
prices associated to the supply of revenues. This improve was primarily from
elevated revenues of the Firm's Info and Software program merchandise. The
improve is because of the inclusion of the Helix acquisition since March 2, 2021,
which contributed 87% of the rise, and better price of revenues from the
Firm's Info merchandise, which contributed 13% of the rise.

Analysis and improvement

Analysis and improvement bills for the six months ended June 30, 2021 have been
$3,447,764, which represented a rise of $2,632,373 in comparison with complete
analysis and improvement bills of $815,391 for the six months ended June 30,
2020. The rise is because of greater R&D bills associated to scaling the
Firm's merchandise, which contributed 83% of the rise, stock-based
compensation bills associated to fairness awards granted to new Firm staff
after we grew to become a public firm on March 2, 2021, which contributed
roughly 5% of the rise, and the inclusion of the Helix acquisition
since March 2, 2021, which contributed 12% of the rise.

                                       34

————————————————– ——————————

Contents

Gross sales and Advertising and marketing

Gross sales and advertising and marketing bills for the six months ended June 30, 2021 have been
$1,776,010, which represented a rise of $1,664,966 in comparison with complete gross sales
and advertising and marketing bills of $111,044 for the six months ended June 30, 2020. The
improve is because of greater bills associated to scaling the Firm's merchandise,
which contributed 67% of the rise, stock-based compensation bills associated
to fairness awards granted to new Firm staff after we grew to become a public
firm on March 2, 2021, which contributed roughly 12% of the rise,
and the inclusion of the Helix acquisition since March 2, 2021, which
contributed 21% of the rise.

Normal and administrative

Normal and administrative bills for the six months ended June 30, 2021 have been
$9,362,258, which represented a rise of $8,733,173 in comparison with normal and
administrative bills of $629,085 for the six months ended June 30, 2020. The
improve is because of greater bills associated to scaling the Firm's administration
group, which contributed 45% of the rise, stock-based compensation
bills associated to fairness awards granted to key Helix staff and new Firm
hires after we grew to become a public firm on March 2, 2021, which contributed
roughly 37% of the rise, and the inclusion of the Helix acquisition
since March 2, 2021, which contributed 18% of the rise.

Transaction associated bills

Transaction associated bills for the six months ended June 30, 2021 have been
$1,210,279, which represented a rise of $1,119,773 in comparison with transaction
associated bills of $90,506 for the six months ended June 30, 2020. These
bills associated to the acquisition of Helix, which was accomplished on March 2,
2021.

Non-GAAP Monetary Measures

On this Quarterly Report on Kind 10-Q, we have now offered a non-GAAP measure,
which we outline as monetary info that has not been ready in
accordance with U.S. GAAP. The non-GAAP monetary measure offered herein is
earnings earlier than curiosity, taxes, non-cash and different gadgets ("Adjusted EBITDA")
introduced on each a historic foundation and a "professional forma" foundation reflecting the
acquisition of Helix as of the start of the intervals introduced. Adjusted
EBITDA must be seen as supplemental to, and never as a substitute for web
earnings or loss calculated in accordance with U.S. GAAP (referred to beneath as
"Internet loss").

Adjusted EBITDA is utilized by our administration as a further measure of our
Firm's efficiency for functions of enterprise decision-making, together with
growing budgets, managing expenditures and evaluating potential acquisitions
or divestitures. Interval-to-period comparisons of Adjusted EBITDA assist our
administration establish extra developments in our Firm's monetary outcomes that
will not be proven solely by period-to-period comparisons of web earnings. In
addition, we could use Adjusted EBITDA within the incentive compensation applications
relevant to a few of our staff so as to consider our Firm's
efficiency. Our administration acknowledges that Adjusted EBITDA has inherent
limitations due to the excluded gadgets, notably these gadgets which can be
recurring in nature. With the intention to compensate for these limitations, administration
additionally evaluations the precise gadgets which can be excluded from Adjusted EBITDA, however
included in web earnings, in addition to developments in these gadgets contained in
Administration's Dialogue and Evaluation of Monetary Situation and Outcomes of
Operations.

                                       35

————————————————– ——————————-

Contents

We consider that the presentation of Adjusted EBITDA is beneficial to buyers in
their evaluation of our outcomes for causes much like the the reason why our
administration finds it helpful and since it helps facilitate investor
understanding of selections made by administration in mild of the efficiency
metrics utilized in making these selections. As well as, as extra totally described
beneath, we consider that offering Adjusted EBITDA, along with a reconciliation
of web loss to Adjusted EBITDA, helps buyers make comparisons between our
firm and different firms that will have completely different capital buildings,
completely different efficient earnings tax charges and tax attributes, completely different capitalized
asset values and/or completely different types of worker compensation. Nonetheless, Adjusted
EBITDA is just not meant as an alternative choice to comparisons primarily based on web loss. In
making any comparisons to different firms, buyers have to be conscious that
firms use completely different non-GAAP measures to judge their monetary
efficiency. Buyers ought to pay shut consideration to the precise definition
getting used and to the reconciliation between such measures and the corresponding
U.S. GAAP measures offered by every firm beneath relevant SEC guidelines.

The next is a proof of things excluded by us from Adjusted EBITDA however included in web loss:

? Depreciation and amortization. The depreciation cost is a

non-cash expenditures associated to capital expenditures and associated intangible belongings

from acquisitions acknowledged as bills on a straight-line foundation over the estimated length

helpful lifetime of the belongings involved. We exclude depreciation and amortization

cost of adjusted EBITDA as a result of we consider that (i) the quantity of those

bills throughout a given interval will not be immediately correlated to the underlying

the efficiency of our enterprise operations and (ii) these bills could fluctuate

considerably between intervals as a consequence of new acquisitions and

amortization of beforehand acquired tangible and intangible belongings.

Subsequently, we consider this exclusion helps administration and buyers to

make period-to-period comparisons of working efficiency. Buyers ought to

be aware that using tangible and intangible belongings contributed to gross sales in

intervals introduced and can contribute to future earnings era and

It also needs to be famous that these bills will recur in future intervals.

? Inventory-based compensation expense. Inventory-based compensation expense is a

non-cash cost ensuing from the granting of stock-based awards to staff. We

consider that excluding the impact of stock-based compensation from

EBITDA helps administration and buyers make period-to-period comparisons

within the operational efficiency of our Firm as a result of (i) the quantity of those bills

over a time frame will not be immediately correlated to the underlying efficiency

of our enterprise operations and (ii) these bills could fluctuate considerably

between intervals because of the schedule of recent share-based awards,

together with grants in reference to acquisitions. As well as, we consider that

the exclusion of stock-based compensation from Adjusted EBITDA assists administration and

buyers to make significant comparisons between the working actions of our firm

efficiency and operational efficiency of different firms that will use

completely different types of worker compensation or completely different evaluation methodologies

for his or her stock-based compensation. Buyers ought to be aware that shares

compensation is a key incentive supplied to staff whose efforts have contributed

to the outcomes of operations for the intervals introduced and will

contribute to the working outcomes of future intervals. Buyers also needs to be aware

   that such bills will recur sooner or later.



                                       36

————————————————– ——————————

Contents

? Curiosity and funding earnings and bills. Curiosity and funding earnings are

associated to the extent of negotiable debt securities and different pursuits

carrying accounts wherein we make investments, and the curiosity expense is linked to our

debt assumed within the context of our acquisition of Helix associated to the financing of sure

its mounted belongings. Curiosity and funding earnings and bills could fluctuate over time

as a consequence of a wide range of financing transactions, adjustments in rates of interest, liquidity

used to fund operations, capital expenditures and acquisitions that we have now

concluded or may conclude sooner or later. We exclude curiosity and

Adjusted EBITDA (i) funding earnings and bills as a result of this stuff are

in a roundabout way attributable to the efficiency of our enterprise operations and,

subsequently, their exclusion helps administration and buyers to make

period-to-period comparisons of working efficiency and (ii) to help

administration and buyers to make comparisons with firms with

capital buildings. Buyers ought to be aware that curiosity earnings and bills

   recur in future intervals.



? Different components. We have interaction in different actions and transactions that will affect our

web loss. In the course of the intervals introduced, these different gadgets included (i) the change

within the honest worth of the legal responsibility associated to the warrants assumed within the

acquisition of Helix; (ii) transaction-related bills which include

skilled charges and different bills incurred in reference to the

acquisition of Helix; and (iii) different earnings which consists of income on

negotiable safety investments. We exclude these different gadgets from Adjusted

EBITDA as a result of we consider that these actions or transactions aren’t immediately

attributable to the efficiency of our enterprise operations and, subsequently,

their exclusion helps administration and buyers to make

working efficiency comparisons. Buyers ought to be aware that a few of these

different components could recur in future intervals.

? The earnings tax cost. MOR was organized as a restricted legal responsibility firm till the

completion of the acquisition of Helix. Because of this, we have been handled as a

partnership for federal and state earnings tax functions by March 2, 2021,

and our taxable earnings and losses are declared by our members on their

particular person tax returns for this era. Subsequently, we have now not recorded any earnings

tax cost or profit by March 2, 2021. We anticipate to incur a web loss for

for monetary reporting and earnings tax reporting functions for that yr.

Because of this, any federal and state earnings tax profit has been

totally offset by a valuation allowance on the corresponding web deferred taxes

belongings. We exclude the earnings tax expense from Adjusted EBITDA (i) as a result of we

   consider that the earnings tax expense is just not immediately attributable to the
   underlying efficiency of our enterprise operations and, accordingly, its
   exclusion assists administration and buyers in making period-to-period
   comparisons of working efficiency and (ii) to help administration and

buyers to make comparisons with firms with completely different tax traits.

Limitations on using non-GAAP monetary measures

There are limits to using non-GAAP monetary measures as a result of non-GAAP monetary measures aren’t ready in accordance with we GAAP and will differ from non-GAAP monetary measures offered by different firms.

The non-GAAP monetary measures are restricted in worth as a result of they exclude
sure gadgets that will have a cloth affect upon our reported monetary
outcomes. As well as, they're topic to inherent limitations as they mirror
the train of judgments by administration about which gadgets are adjusted to
calculate our non-GAAP monetary measures. We compensate for these limitations
by analyzing present and future outcomes on a U.S. GAAP foundation in addition to a
non-GAAP foundation and in addition by offering U.S. GAAP measures in our public
disclosures.

Non-GAAP monetary measures shouldn't be thought of in isolation from, or as a
substitute for, monetary info ready in accordance with U.S. GAAP. We
encourage buyers and others to assessment our monetary info in its
entirety, to not depend on any single monetary measure to judge our enterprise
and to view our non-GAAP monetary measures at the side of probably the most
immediately comparable U.S. GAAP monetary measures.

                                       37

————————————————– ——————————

Contents

The next tables reconcile the precise components excluded from we GAAP metrics within the calculation of non-GAAP metrics for the intervals proven beneath.

                                                 Historic (Unaudited)              Historic (Unaudited)
                                              Three Months Ended June 30,          Six Months Ended June 30,
                                                  2021               2020            2021              2020
Revenues:
Info and Software program                    $      3,763,671$  108,750$   5,172,649$    175,417
Providers                                             492,336      $        -           588,647                -
Different                                                291,978      $        -           407,298                -
Complete revenues                              $      4,547,985$  108,750$   6,168,594$    175,417

Internet loss                                    $     (7,134,196 )$ (791,639 )$ (11,625,843 )$ (1,466,775 )

Depreciation & amortization                          595,488           1,419           783,072            1,873
Inventory primarily based compensation expense                   2,751,547           6,542         3,618,173           11,770
Change in honest worth of warrant legal responsibility            128,800               -          (494,827 )              -
Loss on impairment of goodwill                             -               -                 -                -
Transaction associated bills                               -          90,506         1,210,279           90,506
Curiosity and funding earnings, web                   20,446            (744 )          19,205           (5,707 )
Different earnings                                               -               -                 -                -
Revenue tax expense                                         -               -                 -                -

Adjusted EBITDA                             $     (3,637,915 )$ (693,916 )$  (6,489,941 )$ (1,368,333 )

Three months ended June 30, 2021 (Historic)

Adjusted EBITDA

Adjusted EBITDA for the three months ended June 30, 2021 was a lack of
$3,637,915 in comparison with a lack of $693,916 for the three months ended June 30,
2020, a rise of $2,943,999. The rise is primarily as a consequence of investments in
product improvement, customer support, infrastructure and human capital and the
inclusion of the Helix acquisition since March 2, 2021.

                                       38

————————————————– ——————————

Contents

Six months ended June 30, 2021 (Historic)

Adjusted EBITDA

Adjusted EBITDA for the six months ended June 30, 2021 was a lack of $6,489,941
in comparison with a lack of $1,368,333 for the six months ended June 30, 2020, an
improve of $5,121,608. The rise is primarily as a consequence of investments in product
improvement, customer support, infrastructure and human capital and the
inclusion of Helix.

                                                 Professional Forma (Unaudited)               Professional Forma (Unaudited)
                                              Three Months Ended June 30,          Six Months Ended June 30,
                                                 2021               2020           2021 (1)            2020

Revenue:

Info and Software program                    $     3,763,671$  2,378,605$   6,801,326$  4,784,373
Providers                                            492,336          283,732           822,336          651,455
Different                                               291,978          286,544           553,840          636,888
Complete revenues                              $     4,547,985     $ 

2 948 881 $ 8,177,502$ 6,072,716

Internet loss                                    $    (7,134,196 )   $ 

(2,907,056) $ (14,388,547)$ (6,140,962)

Depreciation & amortization                         595,488          589,688         1,204,300        1,184,848
Inventory primarily based compensation expense                  2,751,547          322,314         3,781,116        1,071,604
Change in honest worth of warrant legal responsibility           128,800           41,847           721,397         (615,678 )
Loss on impairment of goodwill                            -                -                 -        1,369,978
Transaction associated bills                              -          141,385         2,096,054          175,810
Curiosity and funding earnings, web                  20,446          170,960            24,060          668,803
Different earnings                                              -                -           (55,006 )              -
Revenue tax expense                                        -                -                 -                -

Adjusted EBITDA                             $    (3,637,915 )   $

(1,640,862) $ (6,616,626)$ (2,285,597)

(1) Professional Forma info for the closed semester June 30, 2021 above embody revisions to the quantities of non-GAAP monetary measures included in our quarterly report on Kind 10-Q for the three months ended March 31, 2021, as filed with the SECOND on Might 17, 2021. The web affect of those revisions on adjusted EBITDA was (147,596) $.

Three months ended June 30, 2021 (Professional Forma)

Revenue

Professional forma revenues for the three months ended June 30, 2021 have been $4,547,985,
which represented a rise of $1,599,104 in comparison with complete income of
$2,948,881 for the three months ended June 30, 2020. The rise was primarily
as a consequence of development within the variety of clients using the Firm's Info
merchandise.

Adjusted EBITDA

Professional forma Adjusted EBITDA for the three months ended June 30, 2021 was a lack of
$3,637,915 in comparison with a lack of $1,640,862 for the three months ended June 30,
2020, a rise of $1,997,053. The rise is primarily as a consequence of investments in
product improvement, customer support, infrastructure and human capital.

Six months ended June 30, 2021 (Professional Forma)

Revenue

Professional forma revenues for the six months ended June 30, 2021 have been $8,177,502, which
represented a rise of $2,104,786 in comparison with complete income of $6,072,716
for the six months ended June 30, 2020. The rise was primarily as a consequence of development
within the variety of clients using these merchandise.


                                       39

————————————————– ——————————

Contents

Adjusted EBITDA

Professional forma Adjusted EBITDA for the six months ended June 30, 2021 was a lack of
$6,616,626 in comparison with a lack of $2,285,597 for the six months ended June 30,
2020, a rise of $4,331,029. The rise is primarily as a consequence of investments in
product improvement, customer support, infrastructure and human capital.


Liquidity and capital assets

For the reason that Firm's inception in 2019, many of the Firm's assets have been
dedicated to scaling its analysis and improvement, gross sales and advertising and marketing, and
administration infrastructure. The Firm's operations have been financed primarily
from the money proceeds obtained from fairness issuances. The Firm expects to
proceed to fund its operations and future acquisitions by a mixture of
money circulation generated from working actions, debt financing, and/or extra
fairness issuances. Thus far, the Firm has generated restricted revenues from the
licensing of data merchandise. The Firm has incurred losses and generated
damaging money flows from operations since inception. As of June 30, 2021, the
Firm's principal supply of liquidity was money, which totaled $4,763,324 and
marketable securities which totaled $12,505,118.

Money circulation

The next desk summarizes the chosen info on our sources and makes use of of money and money equivalents for the intervals introduced:

                                                      For the Six Months 

Ended,

                                                  June 30, 2021       June 30, 2020
Internet money utilized in working actions             $   (8,248,764 )$    (1,518,139 )
Internet money utilized in investing actions                    (18,269 )        (1,144,884 )
Internet money offered by financing actions             12,294,355           

3,315,700

Impact of overseas trade price adjustments on money           70,539            

Internet improve in money and money equivalents $ 4,097,861 $

652 677

Internet money used in working actions

Internet money utilized in working actions elevated by $6,730,625 for the six months
ended June 30, 2021 in comparison with the six months ended June 30, 2020. The rise
was primarily the results of scaling up the Firm's operations from the preliminary
start-up section.

Internet money used in funding actions

Internet money utilized in investing actions decreased by $1,126,615 for the six months
ended June 30, 2021 in comparison with the six months ended June 30, 2020. That is the
results of a rise in additions to property and gear of $314,366 and an
improve within the buy of marketable securities of $9,616,140, offset by an
improve within the sale of marketable securities of $9,746,144 and money acquired of
$1,310,977 as a part of the Enterprise Mixture.


                                       40

————————————————– ——————————-

Contents

Internet money offered by financing actions

Internet money offered by financing actions elevated by $8,978,655 for the six
months ended June 30, 2021 in comparison with the six months ended June 30, 2020. The
improve was primarily associated to the money proceeds obtained from the Firm's
fairness issuance in April 2021.

Off-balance sheet provisions

The Firm doesn’t have relationships with different organizations and doesn’t course of any transaction that will represent off-balance sheet preparations.

Current accounting positions

The Firm has thought of all lately issued accounting pronouncements and
doesn't consider the adoption of such pronouncements could have a cloth affect
on its monetary statements.

See be aware 3 within the unaudited condensed consolidated monetary statements included elsewhere on this quarterly report on Kind 10-Q for extra info on latest accounting pronouncements.

© Edgar on-line, supply Previews

About Edith J.

Check Also

Omega Healthcare: Be grasping when others are afraid (OHI)

shining stars / E+ by way of Getty Pictures Funding thesis and background Omega Healthcare …