Financial Performance - Total revenue for Q2 2024 was $1,903,602, a decrease of $121,020 or 6.0% compared to $2,024,622 in Q2 2023[113] - Professional services revenue decreased by $93,860 or 4.8% to $1,874,097 in Q2 2024 from $1,967,957 in Q2 2023[113] - Gross profit for Q2 2024 was $682,695, down by $22,318 or 3.2% from $705,013 in Q2 2023[114] - 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[116] - Total revenue for the six months ended June 30, 2024, was $3,818,975, a decrease of $365,770 or 8.7% from $4,184,745 in the prior year[118] - Professional services revenue for the six months ended June 30, 2024, decreased by $311,449 or 7.6% to $3,759,966 from $4,071,415 in the same period in 2023[118] - Gross profit for the six months ended June 30, 2024, increased by $20,142 or 1.5% to $1,381,953 compared to $1,361,811 in the prior year[119] - Operating loss from continuing operations for the six months ended June 30, 2024, was $1,056,041, compared to a loss of $461,614 in the prior year, an increase of $594,427 or 128.8%[122] - The company reported a net loss from continuing operations of $1,056,041 for the six months ended June 30, 2024[127] 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 amounting to $244,137[127] - The company anticipates using between $1.0 million to $1.5 million in operating activities over the next twelve months[128] - Negative cash flows from operations are expected to continue for the remainder of fiscal year 2024 and the first half of 2025 due to investments in sales, marketing, and R&D for the BNA Platform[129] - The company expects to incur significant costs for at least two to four years to commercialize and distribute its flagship product, the BNA Platform[130] - The company plans to finance operations through equity sales, debt financing, or other sources until adequate revenues are generated[131] - There is substantial doubt about the company's ability to continue as a going concern due to ongoing losses and capital requirements[130] - The company had $300,000 outstanding under its bank line of credit as of June 30, 2024, which expired on July 16, 2024[127] Product Development and Strategic Initiatives - The BNA Platform, developed over 15 years with an investment of approximately $60 million, is positioned for commercial launch, targeting pharmaceutical companies and medical practitioners[108] - The merger transaction with Firefly on August 12, 2024, is expected to impact the company's control environment and future reporting[136] - There were no material changes in the company's internal control over financial reporting during the quarter ended June 30, 2024[135]
Firefly Neuroscience, Inc.(AIFF) - 2024 Q2 - Quarterly Report