Financial Performance - Revenue for the three months ended September 30, 2024, was 33,000,comparedto23,000 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,comparedtoanetlossof650,000 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),comparedto(0.18) for the same period in 2023[13]. - The net loss for the third quarter of 2024 is reported at 6.675million,comparedtoanetlossof1.526 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,comparedtoanetlossof1,526,000 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),comparedto(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,asignificantrisefrom670,000 in the prior year, reflecting a 541% increase[13]. - Research and development expenses for the three months ended September 30, 2024, were 878,000,upfrom392,000 in the same period last year, representing a 124% increase[13]. - Selling and marketing expenses rose to 431,000forthethreemonthsendedSeptember30,2024,comparedto95,000 in the prior year, a 354% increase[13]. - General and administration expenses surged to 2,992,000forthethreemonthsendedSeptember30,2024,comparedto183,000 in the same period of 2023, an increase of 1,533.9%[13]. - Total expenses for the three months ended September 2024 were 878million,upfrom392 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 973million,comparedto399 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,anincreaseof3,304,000 or 376% from 879,000inthesameperiodof2023[129].AssetsandLiabilities−AsofSeptember30,2024,totalassetsincreasedto5,311,000 from 2,641,000asofDecember31,2023,representingagrowthof1012,535,000 as of September 30, 2024, compared to 2,532,000asofDecember31,2023[9].−Shareholders′equityincreasedto2,776,000 as of September 30, 2024, from 109,000asofDecember31,2023,reflectingasubstantialgrowthinequity[10].−Thecompanyreportedanaccumulateddeficitof83,299,000 as of September 30, 2024, compared to 76,624,000attheendof2023[29].−Thecompanyhasnomaterialoff−balancesheetarrangementsthatcouldmateriallyaffectitsfinancialcondition[135].CashFlow−ThenetcashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was4,937,000, up from 1,662,000intheprioryear,reflectingaworseningcashflowsituation[18].−Thebalanceofcashattheendoftheperiodwas1,230,000, an increase from 893,000attheendofthesameperiodin2023[18].−NetcashusedininvestingactivitiesfortheninemonthsendedSeptember30,2024,was401,000, 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 4,425,000fortheninemonthsendedSeptember30,2024,representinganincreaseof1,928,000 or 77% compared to 2,497,000forthesameperiodin2023,mainlyduetosecuredprivatefinancingrelatedtotheMerger[140].CapitalRaisingandFinancing−Thecompanyraised3,448,000 through private placement and 945,000fromthesaleofshares,netofissuancecosts,duringtheninemonthsendedSeptember30,2024[18].−Thecompanyisactivelynegotiatingfurtherfundingwithexistingandnewinvestorstoraiseadditionalcapitaltostrengthenliquidity[29].−Thecompanyhastakenmeasurestostrengthenliquidity,includingnegotiatingfurtherfundingandimplementingcostcontrolmeasures[29].−Thecompanyissuedsharesforconsultingservicesamountingto209 thousand and for prepaid services totaling 2.440millionduringtheperiod[15].StrategicInitiatives−FireflyNeurosciencehasimplementedcostcontrolmeasurestoreduceoperationalcashburnandisfocusedoncommercializingproductstogeneraterecurringsales[29].−TheBNAPlatform,developedover15yearswithaninvestmentofapproximately60 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,withassociatedcostsof125[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].
