Financial Performance - Revenue for the three months ended June 30, 2025, was $299,000, representing an increase of $289, or 2,891% compared to $10,000 in the same period of 2024, primarily due to revenue from the acquisition of Evoke Neuroscience[133] - For the six months ended June 30, 2025, revenue was $342,000, an increase of $320, or 1,453% compared to $22,000 in the same period of 2024, primarily due to the Evoke acquisition[141] - Cost of goods sold for the three months ended June 30, 2025, was $25,000, compared to $0 in the same period of 2024, reflecting product costs related to Evoke product sales[134] - General and administrative expenses for the three months ended June 30, 2025, were $1,373,000, an increase of $747, or 119% from $626,000 in the same period of 2024, primarily due to payroll increases and professional fees related to the Evoke acquisition[138] - Other (income) expense for the three months ended June 30, 2025, was $195,000, an increase of $190, or 3,800% from $5,000 in the same period of 2024, mainly due to a settlement with a former consultant[139] - Net cash used in operating activities for the six months ended June 30, 2025, was $4,901,000, an increase of $2,483, or 103% from $2,418,000 in the same period of 2024, attributed to higher operating costs and costs related to the Evoke acquisition[154] - Net cash used in investing activities for the six months ended June 30, 2025, was $2,379,000, an increase of $2,067, or 663% from $312,000 in the same period of 2024, primarily due to the acquisition of Evoke Neuroscience[155] - Net cash provided from financing activities for the six months ended June 30, 2025, was $11,388,000, an increase of $10,443, or 1,105% from $945,000 in the same period of 2024, mainly due to warrant exercises and unit offerings[157] Acquisitions and Financing - The company acquired Evoke for approximately $6,000,000, consisting of $3,000,000 in cash and 857,142 shares valued at $3.50 per share[116] - The company issued and sold 400,000 Units at a purchase price of $3.00 per Unit, totaling $1,200,000 on June 16, 2025[115] - In the March 2025 Units Offering, the company sold 547,737 Units at the same purchase price of $3.00 per Unit[159] - The company received total proceeds of $8,825 from the exercise of warrants for 1,623,530 shares at exercise prices of $6.83 and $4.00[163] - The prefunded warrants have a nominal exercise price of $0.0001 and may be exercised on a cashless basis, with a beneficial ownership limitation of 4.99%[160] Operational Strategy and Market Focus - The company plans to generate revenue through healthcare professionals and collaborations with pharmaceutical companies, utilizing a base service fee and per-use fee model[110] - The company is focusing on targeted outreach and client engagement to secure new accounts in the medical community[110] - The company aims to enhance accurate diagnosis and predict optimal therapies for patients with mental illnesses and cognitive disorders through advanced AI and clinical data[113] - The company believes that its products can improve response rates and reduce medication switching among patients[113] - The company is committed to maintaining adequate cybersecurity and protecting proprietary rights as part of its operational strategy[111] Risks and Challenges - The company acknowledges risks including market volatility, regulatory challenges, and the ability to sustain profitability[104] - The ongoing geopolitical situation, including the war between Israel and Hamas, may adversely impact the company's business and operations[165] - The company has no committed source of financing and may face challenges in raising funds necessary for operations[165] Internal Controls and Compliance - Management identified material weaknesses in internal controls over financial reporting, including inadequate IT General Controls and lack of segregation of duties[173] - Remediation efforts for the identified weaknesses began in Q1 2025 and will continue throughout the remainder of 2025[174] - The company has committed to enhancing processes surrounding ITGCs and hiring additional resources to support financial reporting[175] - The company’s disclosure controls and procedures were deemed not effective as of June 30, 2025[168]
WaveDancer(WAVD) - 2025 Q2 - Quarterly Report