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Firefly Neuroscience, Inc.(AIFF) - 2025 Q1 - Quarterly Report

Product Development and Launch - The BNA Platform has been developed using AI and includes a database of over 18,000 patients, focusing on twelve disorders[78] - The company plans to commercially launch the BNA Platform in 2025, with no expected material additional development costs[79] - The company aims to enhance patient outcomes through the BNA Platform by establishing objective baseline measurements of brain function[82] - The company expects to incur significant costs for at least two to four years to commercialize and distribute its flagship product, the BNA Platform[102] Financial Performance - Revenue for the three months ended March 31, 2025, was 43,000,comparedto43,000, compared to 12,000 for the same period in 2024, representing an increase of 31,000or25831,000 or 258%[96] - Research and development expenses increased to 312,000 for the three months ended March 31, 2025, from 289,000in2024,anincreaseof289,000 in 2024, an increase of 23,000 or 8%[97] - Selling and marketing expenses decreased to 208,000inQ12025from208,000 in Q1 2025 from 249,000 in Q1 2024, a decrease of 41,000or1641,000 or 16%[98] - General and administration expenses rose significantly to 1,588,000 in Q1 2025 from 565,000inQ12024,anincreaseof565,000 in Q1 2024, an increase of 1,023,000 or 181%[99] - Other income (expense) for the three months ended March 31, 2025, was (10,865,000),comparedto(10,865,000), compared to (31,000) in 2024, representing an increase in expenses of 10,834,000[100]Netcashusedinoperatingactivitieswas10,834,000[100] - Net cash used in operating activities was (2,511,000) for Q1 2025, compared to (1,319,000)inQ12024,anincreaseof(1,319,000) in Q1 2024, an increase of 1,192,000 or 90%[107] - Net cash provided from financing activities was 10,253,000inQ12025,comparedto10,253,000 in Q1 2025, compared to 945,000 in Q1 2024, an increase of 9,308,000or9859,308,000 or 985%[109] Acquisitions and Financing - On April 30, 2025, the company acquired Evoke Neuroscience, Inc. for approximately 6 million, consisting of 3millionincashand857,149sharesvaluedat3 million in cash and 857,149 shares valued at 3.50 each[84] - The company acquired all outstanding stock of Evoke for approximately 6,000,000,consistingof6,000,000, consisting of 3,000,000 in cash and 857,142 shares of common stock[101] - The company has no committed source of financing and may not be able to raise funds as needed to continue operations[113] Operational Expenses - Research and development expenses are expected to continue to be the largest component of operating expenses as the company updates and maintains the BNA Platform[88] - Selling and marketing expenses include employee-related costs and consulting fees, which are expected to increase as the company expands its market presence[89] - General and administrative expenses will rise due to compliance with SEC and Nasdaq regulations, as well as other public company-related costs[90] Revenue Generation Strategy - Revenue generation will focus on two segments: use of the BNA Platform by neurologists in the U.S. and collaborations with pharmaceutical companies[87] Capital Raising Activities - A private placement agreement was entered into on March 28, 2025, to issue 547,737 units at a price of 3.00perunit[86]Thecompanyreceivedtotalproceedsof3.00 per unit[86] - The company received total proceeds of 8.825 million from the exercise of warrants to purchase 1,623,530 shares of common stock[85]