Forian appoints BDO USA as new auditor following dismissal of CBIZ

Forian Inc. (NASDAQ:FORA), a technology company whose stock has declined over 11% in the past week and is currently trading near its 52-week low, announced the appointment of BDO USA, P.C. as its independent registered public accounting firm, effective for the fiscal year ending December 31, 2025, and for the interim periods ending June 30 and September 30, 2025. The decision was approved by the company’s Audit Committee on Thursday. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt.

This appointment follows the dismissal of CBIZ (NYSE:CBZ) CPAs P.C. as Forian’s independent auditor, also effective Thursday. Forian had previously engaged CBIZ on April 24, 2025, after CBIZ acquired the attest business of the company’s former auditor, Marcum LLP.

According to the company’s statement, there were no disagreements with CBIZ on accounting principles, financial statement disclosures, or auditing procedures during its engagement. The filing notes that no audit report was issued by CBIZ during its tenure.

The company did identify material weaknesses in its internal controls during recent financial periods. These included issues related to information technology controls, validation of payables transactions, and revenue recognition under Accounting Standards Codification Topic 606. Forian reported that the weakness concerning information technology controls was remediated as of December 31, 2024. The revenue recognition control issue led to a restatement of previously issued audited and unaudited financial statements for the year ended December 31, 2023, and for the quarterly periods ended March 31, June 30, and September 30, 2023.

Forian stated it did not consult BDO regarding any accounting principles, auditing matters, or reportable events prior to this appointment.

The information in this article is based on a statement from the company’s filing with the Securities and Exchange Commission.

In other recent news, VerticalScope Holdings Inc. announced significant leadership changes with Chris Goodridge stepping in as the new Chief Executive Officer, succeeding founder Rob Laidlaw. This move aligns with the company’s strategy to enhance its focus on generative AI. Meanwhile, shareholders at VerticalScope’s annual general meeting elected all five nominated directors, including Rob Laidlaw and Cory Janssen, to the board, and reappointed MNP LLP as the company’s auditor.

Forian Inc. has expanded its 2020 Equity Incentive Plan by 4 million shares, bringing the total available shares to 10.4 million. This amendment aims to improve talent acquisition and retention through equity compensation. Additionally, Forian disclosed material weaknesses in its internal controls over financial reporting, specifically in payables transactions and revenue recognition, although some issues have been remediated. The company has appointed CBIZ CPAs P.C. as its new independent auditor, following the acquisition of its previous auditor, Marcum LLP, by CBIZ.

Lastly, Forian announced the upcoming departure of Edward Spaniel, Jr., its Executive Vice President, General Counsel, and Corporate Secretary, effective May 23, 2025. The company has not yet provided information on a successor for Spaniel’s roles.

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