Firefly Neuroscience, Inc.(AIFF) - 2024 Q3 - Quarterly Report

Financial Performance - Revenue for the three months ended September 30, 2024, was $33,000, up 43% from$ 23,000 in the same period of 2023[13] - Operating loss for the nine months ended September 30, 2024, was $6,675,000, compared to a loss of$ 1,526,000 for the same period in 2023, indicating a significant increase in losses[13] - Net loss for the three months ended September 30, 2024, was $4,289,000, compared to a loss of$ 650,000 in the same period of 2023, representing 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] - 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, representing a significant increase in losses[18] - The net loss for the period ending September 30, 2024, is $(6,675,000), compared to a net loss of$ (1,526,000) for the same period in 2023[15] - Total operating expenses for the three months ended September 30, 2024, were $4,301,000, up from$ 670,000 in the same period of 2023, indicating a significant increase of 541.6%[13] Assets and Liabilities - Total assets increased to $5,311,000 as of September 30, 2024, compared to$ 2,641,000 as of December 31, 2023, representing a growth of 101%[9] - Cash decreased to $1,230,000 as of September 30, 2024, from$ 2,143,000 as of December 31, 2023, a decline of 43%[9] - Total current liabilities remained stable at $2,535,000 as of September 30, 2024, compared to$ 2,532,000 as of December 31, 2023[9] - The company reported an accumulated deficit of $83,299,000 as of September 30, 2024, compared to$ 76,624,000 as of December 31, 2023[10] Expenses - Research and development expenses rose to $1,517,000 for the nine months ended September 30, 2024, compared to$ 712,000 in the same period of 2023, reflecting a 113% increase[13] - Selling and marketing expenses increased to $973,000 for the nine months ended September 30, 2024, compared to$ 399,000 in the same period of 2023, a rise of 144%[13] - General and administration expenses for the three months ended September 30, 2024, were $2,992,000, an increase of$ 2,809,000 or 1535% from $183,000 in the same period of 2023[13] Cash Flow - The company experienced negative cash flow from operating activities of$ 4,937,000 for the nine months ended September 30, 2024, compared to $1,662,000 for the same period in 2023, indicating a worsening cash burn situation[29] - Net cash used in investing activities for the nine months ended September 30, 2024, was$ 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 $2,497,000 for the same period in 2023, mainly due to secured private financing related to the Merger[140] Shareholder Equity - Total shareholders' equity increased to$ 2,776,000 as of September 30, 2024, from $109,000 as of December 31, 2023[10] - The number of shares outstanding as of September 30, 2024, is 8,476,202[15] - The weighted average number of shares outstanding for basic and diluted was 7,080,897 as of September 30, 2024, compared to 3,678,906 for the same period in 2023, reflecting an increase of 92.5%[13] Mergers and Acquisitions - The merger with WaveDancer, completed on August 12, 2024, was treated as a reverse recapitalization, with Private Firefly deemed the accounting acquirer[25] - Following the merger, there were 7,472,555 shares of the New Firefly Common Stock outstanding as of August 12, 2024[27] - The merger between Private Firefly and WaveDancer was completed on August 12, 2024, with Private Firefly being treated as the accounting acquirer[39] Future Outlook - The company expects to continue incurring negative cash flows from operations over the next 12 months while investing in sales, marketing, and research and development[131] - The company anticipates significant costs for at least two to four years to commercialize and distribute its flagship product, the BNA Platform, requiring substantial capital to support ongoing operations[132] - Firefly Neuroscience is focused on negotiating further funding with existing and new investors to raise additional capital and has implemented cost control measures to reduce operational cash burn[29] - The company aims to commercialize its products to generate recurring sales as part of its strategy to strengthen liquidity[29] Product Development - Firefly Neuroscience's Brain Network Analytics (BNA) product received FDA clearance for marketing in the USA in July 2014 and CE approval for use in the European Union in September 2014, indicating ongoing product development and market presence[22] - The BNA Platform, developed over 15 years with an investment of approximately$ 60 million, aims to improve brain health outcomes for patients with mental illnesses and neurological disorders[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 BNA Platform utilizes AI and a proprietary database of over 17,000 patients to enhance diagnostic capabilities for mental illnesses and cognitive disorders[105]