Forian Inc.

Greetings and welcome to 4EON, Inc.' 's first quarter 2022 financial results conference call and webcast. At this time, all participants are on a listening mode. A question and answer session will follow the formal comments and webcast. Participating today from 4EON are Max Swagat, executive chairman and co-founder, Daniel Barton, chief executive officer, and Michael Vesey, chief financial officer. Before we begin, I would like to remind you that management's remarks today may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by those forward-looking statements due to a variety of important factors, including those discussed in the risk factors section of the company's annual report on Form 10-K filed with the SEC on March 31, 2022. in particular management with a reaffirmed estimate of the company's full year 2022 revenue outlook as of today. Estimating financial performance accurately for future performance is difficult as it involves assumptions and internal estimates that may prove to be incorrect and is based on plans and circumstances that may change. There is therefore a significant risk that actual results could differ materially from the outlook provided today. Any forward-looking statements made on the call today represent the company's views of this date, and the company undertakes no obligation to update them except for required by law. Words such as estimate, projected, expect, anticipate, forecast, plan, intend, believe, seeks, may, will, should, future, proposed, and variations of the words or similar expressions or versions of such words or expressions are intended to identify forward-looking statements. The statements include but are not limited to statements regarding future growth, anticipated performance, and prospects. Today's presenters will also refer to non-GAAP financial measures on our call, such as just EBITDA, which the company believes may be important to investors to assess its 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 measures can be found in today's press release and webcast, both of which are available on the company's website. Those numbers are unaudited, and any statement regarding the company's anticipated performance may be subject to change, including as a result of risks related to changes in the cannabis and healthcare market and risks related to the impact of the COVID-19 pandemic and the events in Ukraine. Today's call and webcasts are being recorded. A copy of the recording, webcast, as well as a full transcript and copies of today's press release and SEC files will be available at foreign.com forward slash investors. I now please introduce the company's executive chairman, Max Weigert. Sir, you may begin.

Good afternoon, and I would like to thank everyone for joining us today. Torian had a good start to 2022 by continuing the momentum generated over the past several quarters and delivering strong financial performance in the first quarter. Our rapid organic growth in our healthcare information segment demonstrates our ability to serve needs in a large, established, addressable market. As a young company, we are excited that we serve businesses across the healthcare industry from smaller biopharma and medtech companies to specialty distribution and clinical trial service providers. In the quarter, we were successful in adding new customers as well as upselling incremental offerings to existing customers. Our suite of analytics and insights products helps our customers navigate the complex healthcare environment from preclinical insights to support for commercialization and ultimately affords them a platform to study health economics and outcomes with real-world evidence. We believe that insight into patient journeys enables our customers to improve their operational and business performance by delivering a deep understanding of their customers, their products, and the emergence of new therapeutic and treatment alternatives that will impact their market in years to come. Similarly, emerging markets, in our view, need to adopt the analytics and intelligent solutions that have been long established in the healthcare market to effectively plan, run, and market their products. This is why FOREIGN is positioned at the intersection of healthcare and emerging markets, like the legal, cannabis, and psychedelic markets. Our growth strategy is to continue to penetrate the respective spaces, but also be uniquely positioned long-term to enable industries to merge or compete effectively. We are in the early stages of seeing this thesis come to fruition. In the first quarter, the company generated revenue of $6.4 million and a net loss and adjusted EBITDA loss of $11.9 million and $3.4 million, respectively. These improved results were accomplished during a tough time in the capital markets. We believe our current price and recent trading are the result of many factors affecting the public markets generally, including systematic and technical trading tied to the market reaction to inflation, rising interest rates, and the war in Ukraine. With particular effect, it seems, on growth companies that have yet to achieve profitability. More specifically to the company, publicly available information suggests the company will see continued selling pressure from the pending Russell reconstitution, with rebalancing likely continuing through June 2022. We will continue to execute our plan to deliver industry-leading revenue growth while reaching profitability in 2023. I'm now going to hand it over to our CEO, Dan Barton, to talk about our first quarter results and key developments.

Thanks, Max. Good afternoon, everyone. We delivered strong financial results in line with our expectations for the quarter and started the year on track to achieve our full year 2022 top-line revenue guidance of $25.5 million to $27 million. First quarter 2022 revenue on a reported basis was $6.4 million, up from $1.6 million in the first quarter of 2021, representing 300% growth. On a pro forma basis, our first quarter revenue grew 76% year over year. These results were driven by our information and software business, with continued accelerated growth in the healthcare information business. Healthcare information revenue grew $3.5 million in the first quarter of 2022 versus $600,000 in the first quarter of 2021, or nearly 500% year-over-year growth. It is important to note that this is all organic growth. Our information product offerings are based on our proprietary database of medical claims, pharmacy claims, and consumer profiling information coupled with our cannabis ontology and point-of-sale transaction database, all of which are underpinned by our innovative data science technologies. By leveraging HIPAA-compliant processes, proprietary algorithms, and technology, we have created a suite of product offerings integrating data from siloed, disparate sources and platforms. This includes the intersection of traditional healthcare therapies with alternative therapeutics, including cannabinoid products. We believe these offerings deliver unique and innovative insights and value to our customers. Our information products are largely subscription-based multi-year contracts, providing solutions tailored to specific client needs to power innovative solutions driving clinical and commercial performance. Our recent subscription-based contracts typically run two to three years, and our ARR averages over $1 million. Information products are also purchased on a one-time basis as a custom report to meet a specific analytic need. These products typically provide normalized and aggregated market measures, which our clients use to make investment, product, clinical, or commercial decisions. We continue to invest in healthcare information, recently launching our Kronos product, a differentiated information asset offering unparalleled insights into the healthcare marketplace. Kronos is Forin's proprietary HIPAA-compliant hybrid longitudinal patient insights product. Kronos combines both provider- and pharmacy-based and payer-based healthcare claims data to address the issue of patient coverage completeness due to frequent health plan switching. Plan switching degrades the capture of the continuum of care for patients studied in many traditional healthcare data sources. Kronos addresses these challenges for a more comprehensive approach to generating clinical and commercial insights. In the first quarter, Kronos had several key client wins. These customers were able to study patient cohorts with specific diagnoses and drug profiles, along with racial diversity inclusion criteria for active clinical investigation work underway in the U.S. Our information offerings are sticky because they power key internal business processes and workflows for our customers that require comprehensive data with low latency and longitudinal tracking of customer, product, and market dynamics that few others are able to deliver. This stickiness is evidenced by a growing contracted backlog and an increasing number of clients. We have also seen new sales into existing clients, further demonstrating our strong customer relationships. We are seeing good penetration into life sciences customers, primarily small and emerging biotech, with the opportunity to begin to work with large pharma companies. We also have seen success in the provider and hospital market through partnerships leveraging our provider profiling solutions. Our client portfolio diversified in the first quarter, adding medical device, specialty pharmacy distribution, and clinical trial services providers. To support this rapid growth in healthcare, we've added data assets, sales resources, engineering, and delivery talent to the team. We continue to focus on expanding our advanced analytics services to retailers and manufacturers with innovations in customer segmentation and targeting and market measurement, as well as predictive analytics solutions, including propensity modeling and forecasting. These solutions can be sold as recurring standard deliverables that meet a specific use case or a one-time custom analysis to answer more complex questions our clients may have about their product, market, or customers. The uptake of Canalytics, our SaaS-based analytics platform for the cannabis segment, was not expected to materially add to our revenue in the first quarter of 2022. With that said, we have successfully sold into multiple clients in the first quarter. We expect the uptake to ramp up over the next year as cannabis stakeholders continue to evolve and mature in their use of clinical and commercial analytics to drive product and business performance. Canalytics is planned to be launched for other customer segments, financial, healthcare, and psychedelics, further increasing the total addressable market for this product. As I said earlier, there is keen interest in understanding the convergence of traditional therapies like ethical pharmaceuticals and the use of alternative therapies such as cannabinoids in treating many healthcare conditions. There is growing evidence of the use of these alternative treatments in combination with or in a replacement of traditional therapies. BioTrack software solutions continue to be flat as expected. We had a record quarter of new sales driven by enhanced go-to-market efforts with small and independent operators in targeted geographies. These efforts were partially offset by churn in this market. This churn is a result of the point-of-sale market being highly competitive and more fragmented than ever before. We are continuing to invest in our BioTrack solutions at the same level for the next few months. as we bring to market our next generation BioTrak 2.0 product. Following that rollout, we can begin to ramp down investment as we focus on opportunities to bring BioTrak 2.0 to market. First quarter services revenue was $400,000, which on a pro forma basis showed modest growth based upon new state wins and implementations and project work. As I mentioned on last quarter's call, The state business revenue can fluctuate quarterly based upon installation and one-time service items. We are in the RFP process for multiple states, continue to make the state track and trace business a priority. The revenue outlook for the balance of the year looks very promising. We are managing our operating expense and cash burn in order to achieve a cash flow positive position by the end of 2023 as previously discussed. To focus our investment spend over the next few quarters, we looked at the organizations for ways to enhance productivity and accelerate efficiency, which resulted in a further reduction to our burn rate moving forward. We're in a good position with a strong balance sheet, excellent revenue growth, and the appropriate laser focus on managing operating expenses. I will now turn the call over to Mike, who will provide more detail on our financial performance for the quarter.