Forian Inc.

Greetings and welcome to 4E and Inc.' 's first quarter 2021 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. On the line from 4E today, we have Max Ligott, Executive Chairman, Co-Founder, Daniel Barton, Chief Executive Officer, Clifford Farron, Chief Financial Officer, Adam Dublin, Chief Strategy Officer, Co-Founder, Edward Spaniel, Executive Vice President and General Counsel. Before we begin, I'd like to remind you that management's marks on this call may contain forward-looking statements within the meaning of the private securities litigation reform act of 1995. Our actual results may differ materially from those indicated by those forward-looking statements as a result of various important factors, including those discussed in the risk factor section of our form 10-K, followed by the Securities and Exchange Commission. Any forward-looking statement made on this call represents our views only as of today, and we undertake no obligation to update them. Words such as estimates, project, expect, anticipate, forecast, plans, intend, believe, seek, may, will, should, future, propose, and variations of those words or similar expressions or versions of such expressions are intended to identify forward-looking statements. These statements included but are not limited to statements regarding future growth or prospects. We will also refer to certain non-GAAP financial measures on today's call, such as adjusted EBITDA, which we believe which we believe may be important to investors to assess our operating performance and should be considered a supplement to and not a substitute for financial measures prepared in accordance with GAAP. A reconciliation of the comparable GAAP metric can be found in today's press release, which is available on our website. I remind you that these numbers are unaudited and may be subject to change, including risks related to changes in the cannabis market and risks related to the impact of the COVID-19 pandemic. These risk factors are more fully described in our current funds for the Securities and Exchange Commission. This morning's call is being recorded. A copy of the recording as well as a full transcript and copies of today's press release and SEC funds will be available at forian.com slash investors. I am now pleased to introduce our Executive Chairman, Max Weigod.

Thank you. Good morning, everyone, and welcome to Forian's first earnings call as a NASDAQ publicly traded company. We would like to thank all of our shareholders for their support and express our appreciation for the belief that they have demonstrated in Forian's mission and the business combination of Helix and Moore Analytics. The success of the transaction enables us to further execute on our vision to be the most trusted source of technology and mission-critical analytics for the emerging cannabis market while building innovative solutions for customers across the healthcare market. Forian is now uniquely positioned to generate significant value for traditional healthcare and cannabis companies as well as those seeking to operate at the intersection of the healthcare and legal cannabis markets. For traditional healthcare companies, Forian delivers data-driven commercial and clinical information solutions based on years of experience across the industry to improve business and clinical performance. In the legal cannabis market, Forian is a trusted leader in point of sale, seed to sale, cultivation, and traceability technologies. As the use of alternative therapeutics, including cannabinoid-based therapies, continues to grow and become more widely accepted, the understanding of how these alternative therapies impact clinical outcomes, standards of care, cost efficiency, and quality of life will be required to successfully integrate these new therapies into patient journey and achieve acceptance and adoption for patients, providers, and payers. Forian's offerings deliver unique and unparalleled insights for the companies operating at the intersection of traditional and emergent therapeutics, enhancing their ability to understand, optimize, and measure customer needs, the clinical value of their products, and the dynamics of a rapidly evolving marketplace. As the legal market continues to expand rapidly, consolidate, and mature at an estimated 20% compounded annual growth rate, the competitive differentiation of players across the industry will require more sophisticated technology and analytic solutions. Retailers, cultivators, and manufacturers require an improved understanding of their customers, products, and the markets in which they operate or intend to operate. Leveraging these technologies will allow the legal cannabis market to drive product innovation, competitive differentiation, and responsible commercial growth. Forient possesses the technology, proprietary, integrated data sets, data science, and domain expertise to drive both commercial and clinical performance for customers across the cannabis and healthcare industries. We are excited to bring groundbreaking products to market and become leaders in these large and growing markets. We have assembled a team with unrivaled experience and proven success in our market segments, all of which are committed to long-term financial success. I will now turn the call over to our CEO, Dan Barton.

Thanks, Max. Before I start with my prepared remarks, I would like to thank all of our tremendously talented employees who have quickly adapted to new working conditions in a very challenging environment due to the pandemic, while simultaneously merging two businesses together. Our success is the result of their efforts, and we look forward with confidence, thanks in large part to our team. I'd like to cover a couple of topics today. First, I will provide a brief summary of our product portfolio and how we are positioned for growth. Second, I will outline our major priorities for the year. The foundation of our business is built upon our proprietary databases and technologies. Driven by data science, we are developing intelligent technologies that deliver innovative and disruptive solutions. Our technologies are designed to service the needs of multiple market segments, and our database delivers near real-time information at industry-leading scale. We have developed an integrated HIPAA-compliant repository of longitudinal de-identified healthcare data consumer demographic information, lifestyle and behavioral data representing the majority of U.S. healthcare patients, providers, and payers. That is coupled with one of the largest cannabis transactional databases of the U.S., covering over 10 million cannabis consumers. These integrated and interoperable data are used to power our product portfolio. Our products assist our customers in better understanding the value and efficacy of both healthcare and cannabis products. while providing critical business insights into clients' products, services, customers, and the dynamics of a rapidly changing marketplace. Turning to an overview of three of our information and software products, our healthcare-centric information products are primarily leveraged by life science and provider clients, providing them with comprehensive coverage of the U.S. healthcare market coupled with a view across the healthcare continuum which depicts a more complete patient journey through the inclusion of alternative therapies. By leveraging HIPAA-compliant de-identification processes, proprietary algorithms, sophisticated data management and technology, we have integrated normalized data that historically has been siloed and unstructured on various platforms. Because of our ability to integrate this disparate and often unstructured information, our customers are able to develop more robust insights into their clinical offering and to become more competitive in their commercial efforts. BioTrac is a vertically integrated, SOC-compliant, point-of-sale cultivation and processor software solution for the cannabis industry. First introduced in 2010, it is among the largest, most tenured, trusted, stable and secure technology platforms in the cannabis industry. Serving over 2,300 dispensaries, cultivators, manufacturers and distributors in 38 states and Puerto Rico, BioTrak's point of sale software has been used to administer approximately 20 billion of legal cannabis transactions since 2010. The integration of 4EN's expertise in data science and massive proprietary databases will drive product innovation, leading to more intelligent, efficient, and effective technology, which in turn will drive business performance improvements for our customers. Canalytics is a foreign SaaS-based analytics platform built on machine learning algorithms that provides our dispensary and manufacturing clients with a comprehensive, customized, and flexible business intelligence tool to evaluate their customers, outlets, employees, products, and markets to optimize business performance. Canalytics enables dispensaries across the legal cannabis industry to better attract and retain customers, manage inventory, purchase, distribute, price, and invest in products. and understand complete marketplace dynamics. Forian has been investing in the Canalytics platform since its inception in 2019. In our next generation Canalytics 2.0 offering, we will provide Forian's proprietary technology to further our integrated healthcare cannabis data assets and give our cannabis clients a more holistic view of their product, customer, and marketplace dynamics. We are excited to be able to bring this product to BioTracks customers. Additionally, we will be releasing custom versions of the platform for cultivators, processors, and regulators. I'd like to now turn to discussing three of our services offerings, government traceability, real-world evidence solutions, and data management solutions. FOREAN's traceability platform, running in nine states, including Puerto Rico, manages the tracking and tracing of all cannabis products from cultivation to their eventual sale at retail. As legalization at the state level in the United States continues, seed-to-sale tracking will be the foundational compliance tool used by governments to regulate the legal cannabis market. The government traceability and enforcement monitoring system includes all the components needed to ensure transparency and accountability through the entire cannabis supply chain. Our real-world evidence solutions assist customers seeking to understand the safety, efficacy, and cost effectiveness of traditional, alternative, and emerging therapies. Our solutions integrate otherwise unconnected, unstructured, and disparate data to enable near real-time surveillance of adverse events and to study the clinical, economic, and social impacts of various therapeutic alternatives, like those derived from cannabinoids. First-of-its-kind clinical-grade observational research can be conducted to evaluate the impact of emerging therapies on patient outcomes and as alternatives to or concomitant use with existing therapy. Our customers will understand the therapeutic value by condition of various products, dosages, and formulations and gain insight into how to best develop, position, and market products that offer empirical healthcare benefits based on evidence and not conjecture. Government customers can extend their focus from transparency and compliance to include surveillance relating to cannabis-related adverse health events and product safety as well as the economic, and social equity benefits associated with the utilization and sale of cannabinoid-based products in their states. Our data management solutions enable customers to turn raw, transactional, non-standard data into actionable insights. Customers can leverage their proprietary data independently or integrated with foreign proprietary data assets. As there is no industry-wide standards for data capture, storage, structure, product classification, or product ontologies, Customers are challenged in generating accurate and meaningful analytics. FORIEN's data management solutions clean, standardize, normalize, enhance, and deduplicate customer data, enabling integration with FORIEN and other third-party data to maximize the utility and accuracy in analytics, all while ensuring customer privacy and regulatory compliance. We are developing proprietary customer product and dispensary master files that enables superior analytics and can set the standard for how the industry captures and codifies data relating to cannabis-related transactions. Now I would like to share with you our key priorities for the year. In 2021, our priorities are to invest in our growth by, one, developing innovative and groundbreaking products, two, delivering exceptional service to our clients, three, ensuring continuous operational improvements, and four, creating a culture that attracts and retains best-in-class talent. First, our product development initiatives are focused on BioTrack, Canalytics, and our traceability offerings. For BioTrack, we are enhancing the user experience and adding features and functionality to the software. As mentioned before, 4N is launching a next-generation version of Canalytics later this year, which will demonstrate the power of leveraging the technology, data science, and proprietary data coming together from both organizations. Our traceability offerings will be enhanced through sophisticated patient registries, adverse event surveillance solutions, and product quality, safety, and efficacy measurements. Second, client success is a top priority, and as such, we are investing in technology, processes, and human capital to provide unparalleled customer service, differentiate our business, and optimize customer acquisition and retention. Critical infrastructure integration activities, such as building out our financial, HR, and operational systems are well underway, and the first phases are expected to be completed in this calendar year. Finally, we have and will continue to add, as Max said, some of the best talent across industries to improve performance, drive growth, and realize our vision. We're investing in people to help drive the key priorities I just outlined, as well as to bolster our marketing and sales capabilities. Now that I've given you some background on the business and our key upcoming priorities, I'd like to introduce our CFO, Cliff Farren, to detail our Q1 performance results.