UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ TO ______________ Commission File Number 001-41092 Firefly Neuroscience, Inc. (Exact name of registrant as specified in its charter) (State or othe ...

Financial Performance - Revenue for the three months ended March 31, 2025, was $43,000, compared to $12,000 for the same period in 2024, representing an increase of $31,000 or 258%[96] - Operating expenses totaled $2,108,000 for the three months ended March 31, 2025, compared to $1,103,000 in 2024, an increase of $1,005,000 or 91%[95] - Research and development expenses increased by $23,000 or 8%, totaling $312,000 for the three months ended March 31, 2025[97] - Selling and marketing expenses decreased by $41,000 or 16%, totaling $208,000 for the three months ended March 31, 2025[98] - General and administration expenses rose by $1,023,000 or 181%, totaling $1,588,000 for the three months ended March 31, 2025[99] - Net cash used in operating activities was $2,511,000 for the three months ended March 31, 2025, an increase of $1,192,000 or 90% compared to $1,319,000 in 2024[107] - Net cash provided from financing activities was $10,253,000 for the three months ended March 31, 2025, an increase of $9,308,000 or 985% compared to $945,000 in 2024[109] - The company reported a net loss of $12,930,000 for the three months ended March 31, 2025, compared to a net loss of $1,122,000 in 2024, an increase of $11,808,000[95] Business Development - The BNA Platform is in pre-commercial stages and is expected to launch in 2025, with no material additional development costs anticipated[79] - The company plans to generate revenue through two segments: use of the BNA Platform by U.S. neurologists and collaborations with pharmaceutical companies[79] - On April 30, 2025, the company acquired Evoke Neuroscience, Inc. for approximately $6 million, consisting of $3 million in cash and 857,149 shares valued at $3.50 each[84] - The company acquired all outstanding stock of Evoke for approximately $6,000,000, consisting of $3,000,000 in cash and 857,142 shares of common stock[101] - The company expects to incur significant costs for at least two to four years to commercialize and distribute its flagship product, the BNA Platform[102] Operational Expenses - Research and development expenses are expected to continue to be the largest component of operating expenses as the company updates and maintains the BNA Platform[88] - Selling and marketing expenses include employee-related costs and consulting fees, which are expected to increase as the company expands its market presence[89] - General and administrative expenses are anticipated to rise due to compliance with SEC and Nasdaq regulations, as well as increased investor relations costs[90] Product Impact - The BNA Platform aims to improve patient outcomes by providing objective baseline measurements of brain function, enhancing diagnostic accuracy[82] - The company is focused on building strong client relationships and driving adoption of the BNA Platform through follow-up efforts by its Neurological Team[81]

Financial Performance - Revenue for the year ended December 31, 2024, was $108,000, a decrease of $390,000 or 76% compared to $498,000 in 2023[380] - Cash used in operating activities was $6,155,000 in 2024, an increase of $3,983,000 or 183% from $2,172,000 in 2023[395] - Net cash provided from financing activities was $6,299,000 in 2024, up by $1,656,000 or 36% from $4,643,000 in 2023[397] - The company had an accumulated deficit of $87,084,000 as of December 31, 2024, raising substantial doubt about its ability to continue as a going concern[387] - The company expects to continue incurring negative cash flows from operations for the next 12 months while investing in sales, marketing, and R&D for the BNA Platform[389] Capital Raising - The company raised approximately $3.5 million from a private placement prior to the merger with WaveDancer, with the purchase price of each PIPE Share set at $4.25[358] - A total of $3,039,000 was raised from the private placement of 246,919 Series C units, sold at a combined purchase price of $12.31 per unit[359] - The company entered into a convertible promissory note agreement for $2,400,000, with a purchase price of $2,040,000, and issued 800,000 shares of common stock upon conversion[360] - The ELOC Purchase Agreement allows the company to sell up to $10,000,000 of common stock to Arena, providing flexibility in capital raising[361] - Subsequent to December 31, 2024, the company raised $10.4 million through the exercise of stock warrants and additional sales of common stock[388] Expenses - Research and development expenses increased by $1,213,000 or 164% to $1,954,000 in 2024, primarily due to management options vesting related to the Merger[381] - Selling and marketing expenses rose by $562,000 or 88% to $1,201,000 in 2024, driven by professional marketing services and brand awareness initiatives[382] - General and administration expenses increased by $3,937,000 or 179% to $6,133,000 in 2024, largely due to costs associated with the Merger and legal fees[383] - Impairment expenses for intangible assets were $874,000 in 2024, compared to nil in 2023, due to a change in management direction[385] BNA Platform Development - The BNA Platform is in pre-commercial stages with a planned commercial launch in 2025, targeting revenue generation through U.S. neurologists and pharmaceutical collaborations[353] - The BNA Platform aims to improve patient outcomes by providing objective assessments of brain function, addressing historical limitations in EEG adoption[354] - The company plans to enhance research and development expenses as it refines the BNA Platform and explores strategic partnerships[370] Marketing and Client Engagement - Selling and marketing expenses include employee-related costs and consulting fees, indicating a focus on client engagement and market penetration[371] - The company is focused on building strong client relationships through targeted outreach and personalized marketing efforts[353]

Financial Results - Firefly Neuroscience, Inc. reported financial results for Q3 2024, ending September 30, 2024[4]. - The report does not provide specific financial metrics or performance indicators in the extracted content[4]. Corporate Information - The company issued a press release on November 14, 2024, detailing its stockholder update[4]. - The trading symbol for Firefly Neuroscience, Inc. is AIFF, listed on the Nasdaq Capital Market[2]. - The company’s principal executive office is located at 1100 Military Road, Kenmore, NY 14217[1]. - Jon Olsen serves as the Chief Executive Officer of Firefly Neuroscience, Inc.[7]. Regulatory Compliance - The report is filed under Form 8-K, indicating compliance with the Securities Exchange Act of 1934[5]. - The company is not classified as an emerging growth company under the relevant regulations[3]. - The press release is included as Exhibit 99.1, which is not deemed "filed" under the Exchange Act[5]. - The document includes a cover page interactive data file formatted as Inline XBRL as Exhibit 104[6].

Financial Performance - Revenue for the three months ended September 30, 2024, was $33,000, compared to $23,000 for the same period in 2023, marking a 43% increase[13]. - The net loss for the three months ended September 30, 2024, was $4,289,000, compared to a net loss of $650,000 for the same period in 2023, indicating a 558% increase in losses[13]. - Basic and diluted loss per share for the three months ended September 30, 2024, was $(0.61), compared to $(0.18) for the same period in 2023[13]. - The net loss for the third quarter of 2024 is reported at $6.675 million, compared to a net loss of $1.526 million for the same period in 2023[15]. - For the nine months ended September 30, 2024, Firefly Neuroscience reported a net loss of $6,675,000, compared to a net loss of $1,526,000 for the same period in 2023, indicating a significant increase in losses[18]. - The total net loss for the nine months ended September 30, 2024, was $(6,675,000), compared to $(1,526,000) for the same period in 2023, reflecting a 338.5% increase in losses[13]. Expenses - Operating expenses for the three months ended September 30, 2024, totaled $4,301,000, a significant rise from $670,000 in the prior year, reflecting a 541% increase[13]. - Research and development expenses for the three months ended September 30, 2024, were $878,000, up from $392,000 in the same period last year, representing a 124% increase[13]. - Selling and marketing expenses rose to $431,000 for the three months ended September 30, 2024, compared to $95,000 in the prior year, a 354% increase[13]. - General and administration expenses surged to $2,992,000 for the three months ended September 30, 2024, compared to $183,000 in the same period of 2023, an increase of 1,533.9%[13]. - Total expenses for the three months ended September 2024 were $878 million, up from $392 million in the same period in 2023, indicating a 124% increase[97]. - Research and development expenses for the nine months ended September 30, 2024, were $973 million, compared to $399 million for the same period in 2023, reflecting a 144% increase[98]. - General and administration expenses for the nine months ended September 30, 2024, were $4,183,000, an increase of $3,304,000 or 376% from $879,000 in the same period of 2023[129]. Assets and Liabilities - As of September 30, 2024, total assets increased to $5,311,000 from $2,641,000 as of December 31, 2023, representing a growth of 101%[9]. - Total liabilities remained relatively stable at $2,535,000 as of September 30, 2024, compared to $2,532,000 as of December 31, 2023[9]. - Shareholders' equity increased to $2,776,000 as of September 30, 2024, from $109,000 as of December 31, 2023, reflecting a substantial growth in equity[10]. - The company reported an accumulated deficit of $83,299,000 as of September 30, 2024, compared to $76,624,000 at the end of 2023[29]. - The company has no material off-balance sheet arrangements that could materially affect its financial condition[135]. Cash Flow - The net cash used in operating activities for the nine months ended September 30, 2024, was $4,937,000, up from $1,662,000 in the prior year, reflecting a worsening cash flow situation[18]. - The balance of cash at the end of the period was $1,230,000, an increase from $893,000 at the end of the same period in 2023[18]. - Net cash used in investing activities for the nine months ended September 30, 2024, was $401,000, compared to no cash used in the same period in 2023, primarily due to investments in the next generation of the BNA Platform[138]. - Net cash provided from financing activities was $4,425,000 for the nine months ended September 30, 2024, representing an increase of $1,928,000 or 77% compared to $2,497,000 for the same period in 2023, mainly due to secured private financing related to the Merger[140]. Capital Raising and Financing - The company raised $3,448,000 through private placement and $945,000 from the sale of shares, net of issuance costs, during the nine months ended September 30, 2024[18]. - The company is actively negotiating further funding with existing and new investors to raise additional capital to strengthen liquidity[29]. - The company has taken measures to strengthen liquidity, including negotiating further funding and implementing cost control measures[29]. - The company issued shares for consulting services amounting to $209 thousand and for prepaid services totaling $2.440 million during the period[15]. Strategic Initiatives - Firefly Neuroscience has implemented cost control measures to reduce operational cash burn and is focused on commercializing products to generate recurring sales[29]. - The BNA Platform, developed over 15 years with an investment of approximately $60 million, aims to improve brain health outcomes for patients with mental illnesses[105]. - The BNA Platform is expected to be commercially launched in the first half of 2025, with no material additional development costs anticipated[106]. - The company plans to generate revenue through the use of the BNA Platform by U.S. neurologists and collaborations with pharmaceutical companies[106]. - The company expects to continue incurring negative cash flows from operations over the next 12 months while investing in sales, marketing, and research and development of the BNA Platform[131]. - The company anticipates significant costs for at least two to four years to commercialize and distribute its products, requiring substantial capital to support ongoing operations before achieving profitability[132]. Shareholder Information - The balance of common stock increased to 8,476,202 shares as of September 30, 2024, reflecting a significant increase from previous periods[15]. - The weighted average number of shares outstanding increased to 7,080,897 for the three months ended September 30, 2024, from 3,678,906 in the same period of 2023[13]. - Following the merger, there were 7,472,555 shares of the New Firefly Common Stock outstanding as of August 12, 2024[27]. - The company issued 86,953 Series C Units during the nine-month period ended September 30, 2024, generating aggregate gross proceeds of $1,070, with associated costs of $125[54]. Contingent Liabilities - The company has a contingent liability estimated at $5,702 as of September 30, 2024, related to royalties owed to the Israeli Innovation Authority based on future sales of products[50]. - The company has not recognized any liability for royalties as of September 30, 2024, due to the uncertainty of commercialization outcomes[50].

Financial Performance - Total revenue for Q2 2024 was $1,903,602, a decrease of $121,020 or 6.0% compared to Q2 2023[131] - Professional services revenue decreased by $93,860 or 4.8% to $1,874,097 in Q2 2024 from $1,967,957 in Q2 2023[131] - Gross profit for Q2 2024 was $682,695, a decrease of $22,318 or 3.2% from $705,013 in Q2 2023[132] - Operating loss from continuing operations was $382,070 in Q2 2024, compared to operating income of $493,116 in Q2 2023, a decrease of $875,186[134] - Total revenue for the six months ended June 30, 2024, was $3,818,975, a decrease of $365,770 or 8.7% from the prior year[136] - Professional services revenue for the six months ended June 30, 2024, decreased by $311,449 or 7.6% to $3,759,966[136] - Gross profit for the six months ended June 30, 2024, increased by $20,142 or 1.5% to $1,381,953[137] - Operating loss from continuing operations for the six months ended June 30, 2024, was $1,056,041, an increase of $594,427 or 128.8% from the prior year[140] - For the six months ended June 30, 2024, the company reported a net loss from continuing operations of $1,056,041[145] Expenses and Cost Management - Significant reductions in SG&A expenses were noted, totaling $2,437,994 for the six months ended June 30, 2024, down $827,899 from $3,265,893 in the prior year[139] Cash Flow and Financial Position - As of June 30, 2024, the company had a net working capital deficit of $746,040, with cash and cash equivalents totaling $244,137[145] - The company anticipates cash usage from operations to be between $1.0 million to $1.5 million over the next twelve months[146] - The company expects to continue incurring negative cash flows from operations while investing in sales, marketing, and research and development of the next generation BNA Platform[147] - Significant costs are expected for at least two to four years to commercialize and distribute the BNA Platform, raising doubts about the company's ability to continue as a going concern[148] - The company plans to finance operations through equity sales, debt financing, or other sources until adequate revenues are generated[149] Development and Future Outlook - The BNA Platform is positioned for commercial launch, having taken 15 years and an investment of approximately $60 million to develop[126] Legal and Regulatory Matters - There were no changes in the company's internal control over financial reporting during the quarter ended June 30, 2024[152] - The merger on August 12, 2024, will affect the company's control environment and future reporting[153] - The company has no pending legal proceedings against it[156]

Company Overview - WaveDancer, Inc. will change its name to Firefly Neuroscience, Inc. as part of a merger agreement with Firefly Neuroscience, Inc. and FFN Merger Sub, Inc. [1][6] - Firefly Neuroscience Inc. focuses on medical technology, specifically developing diagnostic and treatment approaches for mental illnesses and cognitive disorders using its FDA-510(k) cleared Brain Network Analytics (BNA™) software platform [5] Reverse Stock Split Details - The company intends to implement a reverse stock split at a ratio of one post-split share for every three pre-split shares, effective at 12:01 p.m. on August 12, 2024 [1][3] - The number of outstanding shares will decrease from approximately 2,013,180 to about 671,060 shares, with adjustments for fractional shares [4] - Stockholders will not need to exchange existing stock certificates, as shares held in brokerage accounts will be automatically adjusted [3][4] Stockholder Impact - The reverse stock split will uniformly affect all stockholders, maintaining their percentage interest in the company's equity, except for fractional shares which will be rounded up [4] - Proportional adjustments will be made to equity awards, convertible preferred stock, and warrants in line with the reverse stock split [4] Future Operations - Following the merger, WaveDancer's current business will be sold, and the company will solely focus on advancing the Firefly business [6]

Mergers and Acquisitions - The Company entered into a merger agreement with Firefly Neuroscience, Inc. in an all-stock transaction, expected to close in late May or early June 2024[25] - The Company plans to sell its Tellenger subsidiary to WaveTop Solutions, Inc. as part of the merger[25] - The merger agreement includes the sale of Tellenger subsidiary for $1.5 million in cash, which is expected to contribute to the company's liquidity[91] - The company entered into a merger agreement with Firefly Neuroscience, Inc. in November 2023, contingent upon shareholder approval and other closing conditions[91] Financial Performance - Total revenue for the three months ended March 31, 2024, was $1,915,372, a decrease of 11.3% from $2,160,123 in the same period of 2023[50] - Professional services revenue decreased by $217,591 or 10.3%, from $2,103,458 in Q1 2023 to $1,885,867 in Q1 2024[99] - Gross profit increased by $42,460 or 6.5%, to $699,258 for Q1 2024, with professional services gross profit as a percentage of revenue rising from 31.2% to 37.1%[100] - Operating loss from continuing operations improved by $280,759 or 29.4%, from a loss of $954,730 in Q1 2023 to a loss of $673,971 in Q1 2024[102] - The company generated a net loss from continuing operations of $673,950 for the quarter ended March 31, 2024, with a net working capital deficit of $480,073[106] Revenue Sources - The Company reported that its prime contracts with U.S. government agencies represented 8.9% of revenue for the three months ended March 31, 2024, while subcontracts under federal procurements accounted for 91.1%[34] - Three subcontracts under federal procurements represented 29.0%, 23.0%, and 17.0% of revenue, respectively, during the same period[34] - Revenue from services under time and materials arrangements was $1,654,001, accounting for 86.4% of total revenue, compared to 87.1% in the prior year[50] Assets and Liabilities - Accounts receivable as of March 31, 2024, totaled $776,025, down from $1,117,862 as of December 31, 2023[52] - The Company’s accounts receivable included receivables from three subcontracts that represented 24.0%, 20.7%, and 14.0% of outstanding accounts receivable, respectively[36] - Contract liabilities decreased to $85,035 as of March 31, 2024, from $114,540 at the end of 2023, with $55,531 recognized as revenue during the quarter[53] - Deferred costs of revenue were reported at $58,658 as of March 31, 2024, down from $87,988 at the end of 2023[54] - Cash equivalents, primarily in money market funds, were valued at $330,593 as of March 31, 2024, down from $631,258 at the end of 2023[60] - As of March 31, 2024, net identifiable intangible assets totaled $961,478, down from $1,005,539 as of December 31, 2023, reflecting a decrease of approximately 4.4%[65] Stock and Compensation - The company executed a reverse stock split at a ratio of one-for-ten on October 18, 2023, reducing issued and outstanding shares from approximately 19.8 million to about 1.98 million[27] - Total compensation expense related to stock-based compensation plans was $113,780 for the three months ended March 31, 2024, compared to $288,172 for the same period in 2023, indicating a decrease of approximately 60.6%[70] - The company sold no shares of common stock during the three months ended March 31, 2024, while it sold 7,429 shares at an average price of $7.20 per share in the same period of 2023, generating net proceeds of $53,453[76] Tax and Financial Health - The effective tax rate for the company was 0% for both the three months ended March 31, 2024 and 2023, primarily due to a full valuation allowance against all deferred tax assets[77] - The company has experienced operating losses in four of the last five years, raising concerns about future profitability[81] - The company is seeking a short-term extension on its new line of credit, which has a maximum availability of $500,000 and expires on May 16, 2024[72] - The company has no allowances for doubtful accounts recognized as of March 31, 2024, indicating no uncollectible accounts[51] Business Operations - The company has modernized over 100 million lines of COBOL code for over 35 governmental and commercial customers, showcasing its expertise in software modernization[87] - The company is focused on enterprise IT solutions, particularly in system modernization, cloud-based solutions, and cybersecurity protection[85] - The company anticipates using $1.0 million to $1.5 million in operating activities over the next twelve months[109] - The company is focusing on closing the merger and must have Parent Net Cash of no less than zero on the closing date[107] - If the merger does not close, the company may consider ceasing to be a reporting company, raising capital through private placement, or selling its business to satisfy liabilities[108]

Merger and Acquisitions - The Company entered into a merger agreement with Firefly Neuroscience, Inc. in an all-stock transaction, requiring the raising of $0.8 million to $1.1 million in additional capital[23] - Upon closing the merger, the combined entity will focus on developing and commercializing Firefly's AI-driven Brain Network Analytics platform, which has FDA clearance[23] - If the merger does not close, the Company will pursue organic growth and acquisitions, necessitating capital raising to fund operations and acquisitions[24] Growth Strategies - The Company aims to grow organically by becoming more proactive in bidding for government contracts and expanding outreach to larger prime contractors[27] - A significant portion of future revenue is expected to come from services provided to the Small Business Administration in connection with its 7A and 504 loan programs, highlighting dependency on key contracts[73] Financial Performance - The company has incurred net losses of $2,034,435, $17,753,838, $1,131,449, and $717,246 during the years ended December 31, 2023, 2022, 2021, and 2019, respectively, indicating ongoing financial challenges[62] - The company has experienced operating losses in four of the last five years, raising concerns about achieving or maintaining profitability in the future[62] - The company relies heavily on U.S. government contracting, which is subject to annual seasonality, with historically higher revenues in the third and fourth fiscal quarters[63] Market Competition - The Company faces strong competition in the IT services market, with many larger firms having more resources and established customer bases[43] - The company faces intense competition in software development and cloud services, which may affect its market position and profitability[79] - The company faces intense competition for hiring qualified personnel, which may hinder its ability to grow and meet client demands[110] Operational Risks - The company is dependent on third-party providers like AWS and Microsoft for its infrastructure, and any disruptions could adversely affect operations and financial results[64] - Changes in U.S. federal government funding priorities could materially impact revenue and earnings, given that it is the largest customer[74] - Cybersecurity threats pose significant risks to the company's information technology systems, potentially affecting operations and financial results[87] - The company must maintain effective internal controls over financial reporting to ensure accuracy, as required by the Sarbanes-Oxley Act[90] - The company frequently utilizes subcontractors, which may adversely affect contracts if they fail to perform as required[82] Financial Management - Future acquisitions may result in dilutive issuances of equity securities and could incur additional debt or liabilities, impacting financial condition[60] - The company does not intend to pay dividends for the foreseeable future, focusing instead on retaining earnings for business expansion[98] - The issuance of additional stock could dilute existing shareholders' investments, impacting the market price of common stock[97] - The company may seek credit facilities to fund working capital needs, which could expose it to additional risks associated with leverage[104] - Violating covenants in credit facilities could lead to accelerated debt maturity and restrictions on distributions to shareholders[105] Compliance and Regulatory Risks - Compliance with public company regulations has increased legal and financial costs, potentially diverting management's attention from revenue-generating activities[108] - The company has already hired additional employees to comply with regulatory requirements, indicating a potential increase in operational costs[108] Technological and Market Adaptation - Failure to keep pace with technological changes may negatively impact the company's ability to compete in the market[120] - The company must accurately estimate costs and timelines for contracts to maintain profitability, as inaccuracies could adversely affect financial outcomes[81] - The company has modernized nearly all necessary forms for compliance, but opportunities for further modernization are nearing maturity, potentially leading to revenue decline[78] Miscellaneous Risks - The variability in the company's results of operations could lead to significant fluctuations in stock price and investor expectations[114] - The company is subject to various risks, including natural disasters and geopolitical unrest, which could adversely affect its business and financial condition[119] - The company may face costly legal proceedings that could divert management resources and harm its financial position[118] - The company’s success is dependent on its ability to retain key employees, and loss of such personnel could limit project completion and competitiveness[113]

Financial Performance - Total revenue for Q3 2023 was $1,967,277, a decrease of $339,102 or 14.7% from $2,306,379 in Q3 2022[100] - Professional services revenue decreased by $192,712 or 9.1% to $1,921,300 in Q3 2023 from $2,114,012 in Q3 2022[100] - Gross profit for Q3 2023 was $649,812, down by $88,784 or 12.0% compared to $738,596 in Q3 2022[101] - Total revenue for the nine months ended September 30, 2023, was $6,152,022, a decrease of $2,900,389 or 32.0% from $9,052,411 in the prior year[105] - Gross profit for the nine months ended September 30, 2023, decreased by $327,284 or 14.0% to $2,011,623 compared to $2,338,907 in the prior year[106] Operating Loss and Expenses - Operating loss from continuing operations improved to $516,845 in Q3 2023, a reduction of $613,273 or 54.3% from a loss of $1,130,118 in Q3 2022[103] - Total Selling, General and Administrative (SG&A) expenses decreased by $2,312,807, from $6,745,357 in 2022 to $4,432,550 in 2023, primarily due to reductions in salaries, stock-based compensation, and legal fees[108] - The operating loss from continuing operations decreased by 77.8%, from $4,406,450 in 2022 to $978,459 in 2023, attributed to a litigation settlement gain of $1,442,468 and reduced SG&A expenses[109] - Discontinued operations resulted in a net loss of $335,993 in 2023, a significant improvement compared to a loss of $3,052,648 in 2022, reflecting a decrease in operating expenses and the sale of GMI[110] Cash Flow and Liquidity - As of September 30, 2023, the company had a net working capital of $537,375, with cash and cash equivalents totaling $877,198[116] - The company anticipates using $1.0 million to $1.5 million in operating activities over the next twelve months, indicating potential liquidity challenges[118] - The company received $1,400,000 from GMDC in August 2023, which included proceeds from the sale of common stock and contingent consideration[119] Strategic Focus and Growth - The company is focusing on organic growth and acquisitions, particularly in professional services, which are viewed as higher margin[98] - The company plans to leverage resources from the acquisition of Tellenger to capitalize on growth in the cybersecurity market[95] - The company plans to raise additional capital to support growth and is exploring strategic alternatives, including potential mergers or sales[117] Financial Management and Compliance - The company has no commitments for capital spending or plans for material capital expenditures, indicating a conservative approach to financial management[119] - The company has effective disclosure controls and procedures in place as of September 30, 2023, ensuring compliance with SEC regulations[121] - The company sold its remaining 24.9% interest in Gray Matters, Inc. for $400,000 in cash, recognizing a gain of $64,525[91]