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].
WaveDancer(WAVD) - 2024 Q3 - Quarterly Report