{"url_path":"/sec/fora/10-q/2026/item-1","section_key":"item-1","section_title":"Item 1 Legal Proceedings","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-15","source_url":"https://www.sec.gov/Archives/edgar/data/1829280/0001140361-26-021394-index.html","accession_number":"0001140361-26-021394","cik":"0001829280","ticker":"FORA","issuer_name":"Forian Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1829280/0001140361-26-021394-index.html","primary_entity_key":"0001829280","primary_entity_name":"Forian Inc."},"word_count":510,"has_tables":true,"body_markdown":"Item 1.\n\nLegal Proceedings\n\n \n\nFrom time to time the Company may be involved in claims that arise during the ordinary course of business. For any matters where management currently believes it is probable that the Company will incur a loss and that the probable loss or range of loss can be reasonably estimated, it records reserves in its condensed consolidated financial statements based on its best estimates of such loss. In other instances, because of the uncertainties related to either the probable outcome or the amount or range of loss, management is unable to make a reasonable estimate of a liability, if any. Regardless of the outcome, litigation can be costly and time consuming and it can divert management’s attention from important business matters and initiatives, negatively impacting overall operations. Although the results of litigation and claims cannot be predicted with certainty, the Company does not currently have any pending or recently resolved litigation to which it is a party or to which its property is subject that the Company believes to be material, except for the below.\n\n \n\nAs previously disclosed, on April 3, 2026, the Company filed a Current Report on Form 8 K regarding a proposed transaction (the “Transaction”). See our Current Report on Form 8 K filed April 3, 2026, for additional information about the Transaction. Following the announcement of the Transaction, beginning in April 2026, the Company and its directors have received numerous demand letters from purported Company stockholders relating to the Transaction. The demand letters generally allege, among other things, that disclosures concerning the Transaction are inadequate and/or that the Company’s directors breached their fiduciary duties in connection with the approval of the Transaction. The letters demand that the Company make supplemental disclosures and/or take other corrective action and, in some instances, indicate that the stockholders may file litigation (including putative class actions) in the absence of the requested relief. Some letters also include demands for the payment of attorneys’ fees and expenses allegedly incurred in connection with the demands.\n\n \n\nAs of May 12, 2026, no agreements have been reached to resolve these demands. The Company believes the allegations in the demand letters are without merit and, to the extent any litigation is filed, the Company intends to defend itself and its directors vigorously. The Company cannot predict the outcome of these matters or whether additional demands or lawsuits will be made or filed, nor can it estimate a reasonable range of potential loss or determine whether any such loss is probable. Adverse outcomes in any related litigation, if initiated, could result in injunctive or other equitable relief (including delaying, enjoining, or requiring additional disclosures regarding the Transaction), monetary damages, and/or the payment of plaintiffs’ attorneys’ fees and costs, which could be material to the Company’s financial condition, results of operations, or cash flows.\n\n \n\nThe Company provides the foregoing disclosure solely to keep investors informed. Nothing herein shall be construed as an admission of the merits of any allegation or demand, or as an admission concerning the materiality of any information.\n\n \n\n32\n\n*Table of Contents*"}