Greetings, and welcome to Forian Inc. third quarter 2023 financial results conference call and webcast. [Operator Instructions]. Participating today from Forian are Max Wygod, Executive Chairman and 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 for the year ended December 31, 2022, as filed with the SEC on March 30, 2023. 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 represents the company's views as of this date, and the company undertakes no obligation to update them except as required by law. Words such as estimate, projected, expect, anticipate, forecast, plan, intend, believe, seek, may, will, should, future, propose and variations of these words or similar expressions or versions of such words or expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding future growth, anticipated performance and prospects. Today's presenters will also refer to certain non-GAAP financial measures on our call such as adjusted EBITDA, which the company believes may be important to investors to assess its operating performance and should be considered as supplement to and not a substitute for financial measures prepared in accordance with GAAP. A reconciliation of the comparable GAAP metric can be found on 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 discussed in the Risk Factors section of the company's annual report on Form 10-K filed with the SEC on March 30, 2023. Today's call and webcast is being recorded. A copy of the recording webcast as well as the full transcript and copies of today's press release and SEC filings will be available at Forian.com/investors. I am now pleased to introduce the company's Executive Chairman and Chief Executive Officer, Max Wygod. Sir, you may begin.

Thank you for joining us for Forian's third quarter earnings call this afternoon. We're pleased to report strong third-quarter performance. Our results reflect the operating scalability and strength of our young business in our success in improving our positive contribution to our clients as the healthcare landscape continues to evolve towards greater dependent on timely Healthcare Information Solutions, stakeholders access to comprehensive longitudinal health care information to drive insights built to improve health outcomes and business performance is more imperative than ever. In my prepared comments this afternoon, I have focused on two key themes that reflect the value we're delivering today and are poised to deliver in the years ahead. First, our third quarter results strengthen an already solid balance sheet that distinguishes us across the industry and especially from other earlier stage companies. Second, Forian is becoming synonymous with a trusted health care information partner, we are taking additional concrete steps to further differentiate our business and offerings by onboarding complementary and unique new data assets, while developing analytics that deliver mission critical value to our clients. Let's begin with third-quarter results. On the top line our consolidated revenue grew 24% on a year-over-year basis in the third quarter to $5.3 million and as a result of our continued efforts to drive margin improvements, our net income and consolidated adjusted EBITDA of $4.3 million and $755,000 respectively, continued to improve. The improvement in our adjusted EBITDA margins were driven by a combination of strong leverage over the cost structure, improved efficiency and a contribution from recurring contracts, which we believe demonstrates the scalability that inherent in the business model. Additionally, and as previously reported, a customer of Forian in which we hold an equity interest was acquired during the quarter. And as a result Forian receive approximately $5.8…

Thanks, Max. Today, I will provide an overview of Forian's financial results for the quarter ended September 30, 2023. As previously disclosed in our SEC filings, Forian completed the disposition of BioTrack on February 10, 2023. Through this transaction and the previous dispositions of our Engeni and Security Grade businesses, Forian no longer provides software solutions to the cannabis industry, representing a strategic shift, which has a significant impact on operations. Accordingly, we have accounted for the operations of the disposed of businesses as a discontinued operation effective with our first quarter in 2023 and have reclassified previous reported operating results on a consistent basis. My discussion today will reference comparative results for our continuing operations for the quarter ended September 30, 2023, unless noted otherwise. The press release issued today presents Forian's financial results on a GAAP basis. As in prior quarters, we have also reported adjusted EBITDA, which management uses as a measure to track the performance of the business. As noted, the press release and these presentation materials include a detailed reconciliation of adjusted EBITDA to net income or loss. Our consolidated revenues of $5.3 million for the quarter were up $1 million or 24% compared to the same quarter last year. The growth in revenue over the same quarter of last year was driven by both new customers and increased revenues from our existing relationships. As a reminder, the majority of our information contracts provide for continuing information deliverables to our customers over a multiyear period, providing a predictable recurring revenue stream on a going-forward basis. Net income from continuing operations for the quarter increased $8.4 million from the same quarter last year to $5.4 million. The increase in net income was primarily driven by a $5.8 million gain on sale of investment and a decrease…

[Operator Instructions]. One moment for our first question. it comes from the line of Mark Hagen with Lake Street Capital Markets.

Hi, thanks for taking my call. See, in June, you guys estimated you had about $17 million of remaining performance obligations over the next 12 months. Have you given any update or is there any color around how that looked at the end of the quarter?

Yeah, hey, this is Mike. Yeah, firm subrogation stayed about the same as they were in the previous quarter.

Got you. And just also, have you guys experienced any new attrition due to some customers being acquired?I know that in the past that's been something -- that's something you have to work through.

This is Max. There hasn't been any notification of new clients, but the notice what we were notified last quarter takes place several months later. So we see that impact starting in Q1 of '24, but there's no new terminations due to that.

Got you. That's all I had, thank you guys.

Thank you.

Thank you. [Operator Instructions]. Well I don't see any further questions in the queue sir. End of Q&A:

Great. Thank you, everybody. That concludes the earnings call today. Take care.

Thank you, everyone. You may now disconnect. Thank you for joining.