Firefly Neuroscience Reports 2,891% Revenue Increase and Acquisition of Evoke Neuroscience

Firefly Neuroscience, Inc. reported significant financial developments in its latest 10-Q filing for the second quarter of 2025, showcasing a substantial increase in revenue and notable changes in its operational structure. For the three months ended June 30, 2025, the company generated revenue of $299,000, a remarkable increase of 2,891% compared to $10,000 in the same period last year. For the six months ending June 30, 2025, revenue reached $342,000, up from $22,000 in the prior year, primarily driven by contributions from the recently acquired Evoke Neuroscience, Inc.

The company’s operating expenses also saw a significant rise, totaling $1.9 million for the three months ended June 30, 2025, compared to $1.3 million in the same quarter of 2024. This increase was largely attributed to higher general and administrative expenses, which surged by 119% to $1.4 million, reflecting costs associated with the Evoke acquisition and increased professional fees. Despite the revenue growth, Firefly reported a net loss of $1.8 million for the quarter, compared to a loss of $1.3 million in the prior year, indicating ongoing challenges in achieving profitability.

In terms of strategic developments, Firefly completed the acquisition of Evoke Neuroscience on April 30, 2025, for a total consideration of approximately $6.2 million, which included $3 million in cash and 857,142 shares of common stock. This acquisition is expected to enhance Firefly's product offerings and expand its customer base in the neurotechnology market. The integration of Evoke's technology is anticipated to bolster Firefly's capabilities in measuring brain activity, which aligns with its goal of improving patient outcomes in mental health and neurological disorders.

Operationally, Firefly reported an increase in its cash position, with cash and cash equivalents rising to $5.9 million as of June 30, 2025, compared to $1.8 million at the end of 2024. The company also noted a decrease in total liabilities from $4.9 million to $2.8 million during the same period, reflecting a reduction in accrued liabilities and the conversion of a convertible promissory note into equity. However, Firefly continues to face challenges, including an accumulated deficit of $106.3 million and negative cash flow from operations of $4.9 million for the first half of 2025.

Looking ahead, Firefly's management expressed cautious optimism regarding its ability to raise additional capital to support ongoing operations and product commercialization efforts. The company plans to focus on expanding its market presence and enhancing product adoption among healthcare professionals. However, there remains substantial doubt about its ability to continue as a going concern, as highlighted in the filing, emphasizing the need for successful execution of its business strategy to achieve sustainable growth and profitability.