Financial Performance - Firefly Neuroscience, Inc. reported a total revenue of $1,200,000 from the sale of 400,000 units at a price of $3.00 per unit in June 2025[117]. - Revenue for the three months ended September 30, 2025, was $388, compared to $33 for the same period in 2024, representing an increase of $355, or 1,076%[137]. - Revenue for the nine months ended September 30, 2025, was $730, compared to $55 for the same period in 2024, representing an increase of $675, or 1,227%[146]. - Other income for the three months ended September 30, 2025, was $17, compared to $(21) for the same period in 2024, representing an increase of $38, or 543%[144]. Expenses - Cost of goods sold for the three months ended September 30, 2025, was $242, up from $nil in the same period of 2024, reflecting Evoke product sales and related operating costs[138]. - Research and development expenses for the three months ended September 30, 2025, were $378, a decrease of $500, or 57%, compared to $878 for the same period in 2024[140]. - Selling and marketing expenses for the three months ended September 30, 2025, were $265, a decrease of $166, or 39%, compared to $431 for the same period in 2024[141]. - General and administration expenses for the three months ended September 30, 2025, were $2,007, a decrease of $985, or 33%, compared to $2,992 for the same period in 2024[142]. - Cost of goods sold for the nine months ended September 30, 2025, was $267, up from $nil in the same period of 2024, reflecting Evoke product sales and related operating costs[147]. - General and administration expenses for the nine months ended September 30, 2025, were $4,968, an increase of $785, or 19%, compared to $4,183 for the same period in 2024, primarily due to additional D&O insurance costs[150]. - Impairment expenses for the three months ended September 30, 2025, were $152, compared to $nil for the same period in 2024, representing an increase of $152[143]. Cash Flow - The company reported an accumulated deficit of $108,896 and negative cash flows from operating activities of $6,389 as of September 30, 2025[157]. - Net cash used in operating activities increased by $1,452, or 29%, to $6,389 for the nine months ended September 30, 2025, compared to $4,937 for the same period in 2024[162]. - Net cash used in investing activities surged by $2,064, or 515%, to $2,465 for the nine months ended September 30, 2025, primarily due to the acquisition of Evoke Neuroscience[163]. - Net cash provided from financing activities increased by $6,944, or 157%, to $11,369 for the nine months ended September 30, 2025, compared to $4,425 for the same period in 2024[164]. 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[118]. - The company is increasingly reliant on machine learning models for EEG/ERP interpretation, with performance depending on training data diversity and ongoing monitoring[171]. - The company has no committed source of financing and may face challenges in raising funds as needed to continue operations[172]. - The company experienced a total of $8,825 in proceeds from the exercise of warrants to purchase 1,623,530 shares of common stock during the week of February 21, 2025[170]. Business Strategy and Operations - The company plans to generate revenue through a base service fee and per-use fee model for healthcare providers, and tailored models for pharmaceutical companies[112]. - Firefly's products are FDA-510(k) cleared, enhancing neurological assessments and enabling early detection of neurophysiological deviations[111]. - The company aims to improve patient outcomes by utilizing AI to analyze EEG data, potentially transforming brain health management[116]. - The sales team is focused on targeted outreach and client engagement to drive adoption of the platform in the medical community[112]. - The company emphasizes the importance of establishing an objective baseline measurement of brain function to optimize patient care[115]. - Firefly's business strategy includes collaborations with neuroscience drug development companies to support clinical strategies[112]. Risks and Challenges - The company faces risks including market volatility, regulatory challenges, and the ability to maintain sufficient funding for operations[106]. - Management has identified material weaknesses in internal controls over financial reporting, which are being addressed with a remediation plan projected for completion by Q1 2026[181].
Firefly Neuroscience, Inc.(AIFF) - 2025 Q3 - Quarterly Report