Product Development and Launch - The BNA Platform has been developed using AI and includes a database of over 18,000 patients, focusing on twelve disorders[78] - The company plans to commercially launch the BNA Platform in 2025, with no expected material additional development costs[79] - The company aims to enhance patient outcomes through the BNA Platform by establishing objective baseline measurements of brain function[82] - 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] 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] - Research and development expenses increased to $312,000 for the three months ended March 31, 2025, from $289,000 in 2024, an increase of $23,000 or 8%[97] - Selling and marketing expenses decreased to $208,000 in Q1 2025 from $249,000 in Q1 2024, a decrease of $41,000 or 16%[98] - General and administration expenses rose significantly to $1,588,000 in Q1 2025 from $565,000 in Q1 2024, an increase of $1,023,000 or 181%[99] - Other income (expense) for the three months ended March 31, 2025, was $(10,865,000), compared to $(31,000) in 2024, representing an increase in expenses of $10,834,000[100] - Net cash used in operating activities was $(2,511,000) for Q1 2025, compared to $(1,319,000) in Q1 2024, an increase of $1,192,000 or 90%[107] - Net cash provided from financing activities was $10,253,000 in Q1 2025, compared to $945,000 in Q1 2024, an increase of $9,308,000 or 985%[109] Acquisitions and Financing - 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 has no committed source of financing and may not be able to raise funds as needed to continue operations[113] 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 will rise due to compliance with SEC and Nasdaq regulations, as well as other public company-related costs[90] Revenue Generation Strategy - Revenue generation will focus on two segments: use of the BNA Platform by neurologists in the U.S. and collaborations with pharmaceutical companies[87] Capital Raising Activities - A private placement agreement was entered into on March 28, 2025, to issue 547,737 units at a price of $3.00 per unit[86] - The company received total proceeds of $8.825 million from the exercise of warrants to purchase 1,623,530 shares of common stock[85]
Firefly Neuroscience, Inc.(AIFF) - 2025 Q1 - Quarterly Report