Firefly Neuroscience Reports Significant Asset Growth, Revenue Decline, and Operating Loss in Latest Quarter

As of September 30, 2024, Firefly Neuroscience, Inc. reported total assets of $5.3 million, a significant increase from $2.6 million at the end of 2023. Current assets rose to $2.7 million, up from $2.3 million, while cash decreased from $2.1 million to $1.2 million. Non-current assets saw a substantial increase from $386,000 to $2.6 million, primarily due to a rise in intangible assets, which grew from $386,000 to $1.1 million. Total shareholders’ equity also improved markedly, rising from $109,000 to $2.8 million.

In terms of revenue, the company generated $33,000 for the three months ending September 30, 2024, compared to $23,000 for the same period in 2023, marking a 43% increase. However, for the nine months ended September 30, 2024, revenue plummeted to $55,000 from $479,000 in the prior year, reflecting an 89% decrease. This decline was attributed to reduced service revenue and a significant drop in revenue recognized over time.

Operating expenses surged dramatically, totaling $4.3 million for the three months ended September 30, 2024, compared to $670,000 in the same period of 2023. For the nine-month period, operating expenses increased to $6.7 million from $2.0 million. The operating loss for the three months was $4.3 million, up from $647,000, while the nine-month operating loss escalated to $6.6 million from $1.5 million. The net loss for the three months was $4.3 million, compared to $650,000 in the previous year, and for the nine months, it rose to $6.7 million from $1.5 million.

Research and development expenses increased significantly, reaching $878,000 for the three months ended September 30, 2024, compared to $392,000 in 2023, and $1.5 million for the nine months, up from $712,000. Selling and marketing expenses also rose sharply, totaling $431,000 for the three months and $973,000 for the nine months, compared to $95,000 and $399,000, respectively, in the prior year. General and administrative expenses skyrocketed to $2.99 million for the three months and $4.18 million for the nine months, compared to $183,000 and $879,000 in 2023.

The company underwent a merger with Firefly Neuroscience 2023, Inc. on August 12, 2024, which resulted in a new trading symbol, "AIFF," on the Nasdaq Capital Market. The merger was structured as a reverse recapitalization, with significant changes to the equity structure. The company is actively seeking additional funding to support operations and has implemented cost control measures to manage cash burn.