WaveDancer(WAVD) - 2024 Q4 - Annual Report

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$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$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$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$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]