Financial Results - Firefly Neuroscience, Inc. reported financial results for Q3 2024, ending September 30, 2024[4]. - The financial results include key metrics that will be detailed in the press release, which is referenced as Exhibit 99.1[4]. Compliance and Regulations - The report is filed under Form 8-K, indicating compliance with the Securities Exchange Act of 1934[5]. - The company is not classified as an emerging growth company under the relevant regulations[3]. - The financial results and updates are not deemed "filed" under the Exchange Act, limiting liability under Section 18[5]. Company Information - The trading symbol for Firefly Neuroscience, Inc. is AIFF, listed on the Nasdaq Capital Market[2]. - The company’s principal executive offices are located at 1100 Military Road, Kenmore, NY 14217[1]. - Jon Olsen serves as the Chief Executive Officer, signing the report on November 14, 2024[7]. Press Release - The company issued a press release on November 14, 2024, detailing its stockholder update[4]. - The report includes an Interactive Data File formatted as Inline XBRL as part of its exhibits[6].

Core Viewpoint - Firefly Neuroscience, Inc. has successfully listed on Nasdaq under the symbol "AIFF" and is focused on improving brain health outcomes through innovative AI solutions for neurological and mental disorders [1][5]. Company Overview - Firefly is dedicated to enhancing outcomes for individuals with brain health issues by providing objective measurements of brain activity [2]. - The company has developed FDA-cleared Brain Network Analytics (BNA™) technology, which aims to revolutionize diagnostic and treatment monitoring methods for conditions such as depression, dementia, anxiety disorders, concussions, and ADHD [5][6]. Strategic Partnerships - Firefly is pursuing a dual go-to-market strategy by partnering with neuroscience pharmaceutical companies and supporting US neurologists [3]. - Collaborations with notable pharmaceutical companies such as Bright Minds, Novartis, and Takeda are expected to accelerate growth and enhance capabilities [3]. Recent Developments - In Q3 2024, Firefly announced several key collaborations, including a partnership with Bright Minds Bioscience for a Phase 2 trial of BMB-101 and the use of BNA™ technology in Arrivo BioVentures' Phase 1 study of SP-624 [4]. - The company has integrated BNA™ technology at Neurology Consultants of Dallas to improve early detection and disease management for cognitive disorders [4]. Financial Highlights - As of September 30, 2024, Firefly reported cash reserves of $1.2 million and had 8,503,365 shares of common stock outstanding as of November 12, 2024 [4].

Financial Performance - Revenue for the three months ended September 30, 2024, was $33,000, up 43% from $23,000 in the same period of 2023[13] - Operating loss for the nine months ended September 30, 2024, was $6,675,000, compared to a loss of $1,526,000 for the same period in 2023, indicating a significant increase in losses[13] - Net loss for the three months ended September 30, 2024, was $4,289,000, compared to a loss of $650,000 in the same period of 2023, representing 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] - 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, representing a significant increase in losses[18] - The net loss for the period ending September 30, 2024, is $(6,675,000), compared to a net loss of $(1,526,000) for the same period in 2023[15] - Total operating expenses for the three months ended September 30, 2024, were $4,301,000, up from $670,000 in the same period of 2023, indicating a significant increase of 541.6%[13] Assets and Liabilities - Total assets increased to $5,311,000 as of September 30, 2024, compared to $2,641,000 as of December 31, 2023, representing a growth of 101%[9] - Cash decreased to $1,230,000 as of September 30, 2024, from $2,143,000 as of December 31, 2023, a decline of 43%[9] - Total current liabilities remained stable at $2,535,000 as of September 30, 2024, compared to $2,532,000 as of December 31, 2023[9] - The company reported an accumulated deficit of $83,299,000 as of September 30, 2024, compared to $76,624,000 as of December 31, 2023[10] Expenses - Research and development expenses rose to $1,517,000 for the nine months ended September 30, 2024, compared to $712,000 in the same period of 2023, reflecting a 113% increase[13] - Selling and marketing expenses increased to $973,000 for the nine months ended September 30, 2024, compared to $399,000 in the same period of 2023, a rise of 144%[13] - General and administration expenses for the three months ended September 30, 2024, were $2,992,000, an increase of $2,809,000 or 1535% from $183,000 in the same period of 2023[13] Cash Flow - The company experienced negative cash flow from operating activities of $4,937,000 for the nine months ended September 30, 2024, compared to $1,662,000 for the same period in 2023, indicating a worsening cash burn situation[29] - 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] Shareholder Equity - Total shareholders' equity increased to $2,776,000 as of September 30, 2024, from $109,000 as of December 31, 2023[10] - The number of shares outstanding as of September 30, 2024, is 8,476,202[15] - The weighted average number of shares outstanding for basic and diluted was 7,080,897 as of September 30, 2024, compared to 3,678,906 for the same period in 2023, reflecting an increase of 92.5%[13] Mergers and Acquisitions - The merger with WaveDancer, completed on August 12, 2024, was treated as a reverse recapitalization, with Private Firefly deemed the accounting acquirer[25] - Following the merger, there were 7,472,555 shares of the New Firefly Common Stock outstanding as of August 12, 2024[27] - The merger between Private Firefly and WaveDancer was completed on August 12, 2024, with Private Firefly being treated as the accounting acquirer[39] Future Outlook - 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[131] - The company anticipates significant costs for at least two to four years to commercialize and distribute its flagship product, the BNA Platform, requiring substantial capital to support ongoing operations[132] - Firefly Neuroscience is focused on negotiating further funding with existing and new investors to raise additional capital and has implemented cost control measures to reduce operational cash burn[29] - The company aims to commercialize its products to generate recurring sales as part of its strategy to strengthen liquidity[29] Product Development - Firefly Neuroscience's Brain Network Analytics (BNA) product received FDA clearance for marketing in the USA in July 2014 and CE approval for use in the European Union in September 2014, indicating ongoing product development and market presence[22] - 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 and neurological disorders[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 BNA Platform utilizes AI and a proprietary database of over 17,000 patients to enhance diagnostic capabilities for mental illnesses and cognitive disorders[105]

Core Insights - Firefly Neuroscience, Inc. is participating in the Capital Event Management Conference from November 22-24, 2024, in Aventura, Florida [1] - The company specializes in developing AI solutions aimed at improving brain health outcomes for patients with neurological and mental disorders [4][5] Company Overview - Firefly is focused on innovative solutions that enhance diagnostic and treatment monitoring methods for conditions such as depression, dementia, anxiety disorders, concussions, and ADHD [4] - The company has developed the FDA-510(k) cleared Brain Network Analytics (BNA™) technology, which utilizes a proprietary database of brain wave tests and has secured patent protection [4][5] - BNA™ leverages artificial intelligence and machine learning on a database of standardized, high-definition longitudinal electroencephalograms (EEGs) from over 17,000 patients, providing comprehensive insights into brain function [5] Market Engagement - Firefly is launching BNA™ commercially, targeting pharmaceutical companies involved in drug research and clinical trials, as well as medical practitioners for clinical use [4] - The company aims to enhance clinicians' ability to accurately diagnose mental and cognitive disorders and evaluate optimal therapies for patients [5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-41092 FIREFLY NEUROSCIENCE, INC. (Exact name of registrant as specified in its charter) Delaware 54-1167364 (State or other jurisdiction of incorporation or organization) (I. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-41092 WaveDancer, Inc. (Exact name of registrant as specified in its charter) Delaware 54-1167364 (State or other jurisdiction of incorporation or organization) (I.R.S. Empl ...

Merger and Acquisitions - The company entered into a merger agreement with Firefly Neuroscience, Inc. in an all-stock transaction, requiring the raising of $0.8 million to $1.1 million in additional capital[17] - The company plans to sell its Tellenger subsidiary to WaveTop Solutions, Inc. as part of the merger process[17] - If the merger does not close, the company will pursue organic growth and acquisitions, necessitating capital raising to fund these strategies[18] Business Operations and Services - The company aims to modernize legacy systems and cloud services, having provided solutions to over 40 government and private sector clients[25] - Tellenger's modernization services include cloud assessment and migration, utilizing platforms like Amazon Web Services and Microsoft Azure[26] - The cybersecurity market is a focus area, with Tellenger involved in significant initiatives for the U.S. Department of Homeland Security[27] Financial Performance - The company has incurred net losses of $2,034,435, $17,753,838, $1,131,449, and $717,246 during the years ended December 31, 2023, 2022, 2021, and 2019, respectively[57] - A significant portion of the company's revenues is derived from U.S. government contracting, with higher revenues typically experienced in the third and fourth fiscal quarters[58] - The company has faced operating losses in four of the last five years and may not achieve or maintain profitability in the future[56] Competition and Market Challenges - The company faces strong competition in the IT services market, particularly in conversion and modernization, from larger firms with more resources[36] - The company is subject to intense competition in software development and cloud services, which could negatively impact its operational results[80] - Changes in U.S. federal government funding priorities may materially and adversely affect the company's revenue and earnings[70] Risks and Liabilities - Future acquisitions may result in debt, contingent liabilities, and other expenses that could harm the company's financial condition[55] - The company must accurately estimate costs and timelines for contracts to maintain profitability, as inaccuracies could lead to adverse financial impacts[82] - The company frequently utilizes subcontractors, which may adversely affect contracts if they fail to perform, potentially leading to unintended expenses and loss of future contracts[85] Compliance and Regulatory Issues - The company must maintain effective internal controls over financial reporting to ensure accuracy; failure to do so could adversely affect business and stock price[95] - Compliance with public company regulations has increased legal and financial compliance costs, diverting management's attention and resources[118] Human Resources and Hiring - As of December 31, 2023, the company had 42 full-time and one part-time employees, with plans for future hiring to meet growth requirements[42] - The company faces intense competition for hiring qualified personnel, which is critical for its future success[121] Capital and Financing - The company does not intend to pay dividends for the foreseeable future, focusing instead on retaining earnings for business expansion[104] - The issuance of additional stock could dilute existing shareholders' investments, potentially leading to a decline in the market price of common stock[102] - The company may seek credit facilities to fund operations, which could expose it to additional risks associated with leverage and affect operational flexibility[111] Operational Variability and Risks - Variability in operational results is expected due to factors such as customer retention, seasonal buying patterns, and changes in market needs[126] - The company may face significant fluctuations in financial results, making historical performance unreliable for future expectations[127] - Legal proceedings and claims could result in substantial costs and divert management's attention, potentially harming the business[130] - The company is subject to risks from natural disasters and geopolitical unrest, which could disrupt supply chains and impact sales[132] Technological Adaptation - Rapid technological changes in the IT industry necessitate continuous development and adaptation of services to avoid negative impacts on operations[133]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-41092 WaveDancer, Inc. (Exact name of registrant as specified in its charter) Delaware 54-1167364 (State or other jurisdiction of incorporation or orga ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-41092 WaveDancer, Inc. (Exact name of registrant as specified in its charter) Delaware 54-1167364 (State or other jurisdiction of incorporation or organization) (I.R.S. Emplo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-41092 WaveDancer, Inc. (Exact name of registrant as specified in its charter) Delaware 54-1167364 (State or other jurisdiction of incorporation or organization) (I.R.S. Empl ...