Firefly Neuroscience Reports 258% Revenue Growth but Incurred $17.34 Million Net Loss in Q1 2025

Firefly Neuroscience, Inc. reported its financial results for the first quarter of 2025, revealing a significant increase in revenue and notable changes in its financial position compared to the previous fiscal period. The company generated revenue of $43,000 for the three months ended March 31, 2025, a substantial increase of 258% from $12,000 in the same period of 2024. This growth is attributed to an increase in customer counts and the number of BNA scans conducted per customer, as well as revenue from clinical studies.

Despite the revenue growth, Firefly Neuroscience experienced a net loss of $17.34 million for the first quarter of 2025, compared to a net loss of $1.12 million in the prior year. The increase in losses was primarily driven by higher operating expenses, which totaled $2.11 million, up from $1.10 million in the previous year. The rise in operating expenses was largely due to increased general and administrative costs, which surged by 181% to $1.59 million, reflecting expenses related to management options and other compensation, as well as higher audit and investor relations costs.

In terms of strategic developments, Firefly Neuroscience completed the acquisition of Evoke Neuroscience, Inc. on April 30, 2025, for approximately $6 million, consisting of $3 million in cash and shares of common stock. This acquisition is expected to enhance the company's capabilities in measuring brain activity and further its product offerings. Additionally, the company has been actively engaging in financing activities, raising $10.25 million through the exercise of warrants and a private placement of common stock, which has bolstered its cash position to $9.55 million as of March 31, 2025, compared to $1.81 million at the end of 2024.

Operationally, Firefly Neuroscience has made strides in expanding its customer base and enhancing product adoption. The company reported an increase in accounts receivable, indicating a growing demand for its services. However, it also noted a significant accumulated deficit of $104.42 million, raising concerns about its ability to continue as a going concern without additional funding. The company plans to focus on the commercialization of its BNA Platform in 2025, targeting neurologists and pharmaceutical companies to drive revenue growth.

Looking ahead, Firefly Neuroscience anticipates continued investment in research and development, as well as sales and marketing efforts to support the launch of its BNA Platform. The company acknowledges the challenges of achieving profitability and the need for ongoing capital to sustain operations. Management remains optimistic about the potential for future growth, contingent on successful commercialization and the ability to secure additional funding.