Firefly Neuroscience, Inc.(AIFF) - 2024 Q4 - Annual Report

Financial Performance - Revenue for the year ended December 31, 2024, was $108,000, a decrease of$390,000 or 76% compared to $498,000 in 2023[380]. - Cash used in operating activities was$6,155,000 in 2024, an increase of $3,983,000 or 183$2,172,000 in 2023, attributed to rising operating costs and research expenses[395]. - Net cash provided from financing activities was $6,299,000 in 2024, an increase of$1,656,000 or 36% from $4,643,000 in 2023, primarily due to proceeds from a convertible note[397]. - The company had an accumulated deficit of$87,084,000 as of December 31, 2024, raising substantial doubt about its ability to continue as a going concern[387]. - The company expects to continue incurring negative cash flows from operations over the next 12 months while investing in sales, marketing, and research for the BNA Platform[389]. Capital Raising - The company raised approximately $3.5 million from a private placement prior to the merger with WaveDancer, with the purchase price of each PIPE Share set at$4.25[358]. - A total of $3,039,000 was raised from the private placement of 246,919 Series C units, sold at a combined purchase price of$12.31 per unit[359]. - The company entered into a convertible promissory note agreement for $2,400,000, with a purchase price of$2,040,000, and issued 800,000 shares of common stock upon conversion[360]. - The ELOC Purchase Agreement allows the company to sell up to $10,000,000 of common stock to Arena, providing flexibility in capital raising[361]. - Subsequent to December 31, 2024, the company raised$10.4 million through the exercise of stock warrants and additional sales of common stock[388]. Expenses - Research and development expenses are expected to increase as the company refines the BNA Platform and explores strategic partnerships[370]. - Selling and marketing expenses include employee-related costs and consulting fees, reflecting the company's commitment to market the BNA Platform[371]. - General and administrative expenses will rise due to public company operations, including compliance and investor relations costs[372]. - Research and development expenses increased to $1,954,000 in 2024, up$1,213,000 or 164% from $741,000 in 2023, primarily due to management options vesting related to the Merger[381]. - Selling and marketing expenses rose to$1,201,000 in 2024, an increase of $562,000 or 88$639,000 in 2023, driven by professional marketing services and brand awareness initiatives[382]. - General and administration expenses increased to $6,113,000 in 2024, up$3,937,000 or 179% from $2,196,000 in 2023, largely due to costs associated with the Merger[383]. - Impairment of intangible assets was recorded at$874,000 in 2024, compared to $0 in 2023, due to a change in management direction[385]. Business Development - The BNA Platform is in pre-commercial stages, with a planned commercial launch in 2025, targeting revenue generation from U.S. neurologists and pharmaceutical collaborations[353]. - The company plans to generate revenue through BNA testing, equipment rental, and collaborations with pharmaceutical companies for neuroscience drug development[369]. - The company aims to enhance patient outcomes through the BNA Platform by identifying clinically relevant biomarkers and optimizing therapy[356].