Firefly Neuroscience (AIFF) AI Stock Analysis

• Market Cap: $37.66M
• Dividend Yield: N/A
• Average Volume (3M): 795.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.63
• Revenue Growth: -51.08%
• EPS Growth: 11.31%
• Country: US
• Employees: 7
• Sector: Technology
• Sector Strength: 55
• Industry: Software - Application
• EPS (TTM): -2.64
• Shares Outstanding: 11,622,952
• 10 Day Avg. Volume: 378,460
• 30 Day Avg. Volume: 795,651
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 7.41
• Price to Cash Flow (P/CF): -2.20
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Firefly Neuroscience faces significant financial challenges with persistent losses and negative cash flow. The technical analysis indicates a strong downward trend in the stock price, compounded by high volatility. The valuation metrics further highlight the company's lack of profitability. Overall, the stock presents considerable risks due to its financial instability and negative market momentum.

Firefly Neuroscience Business Overview & Revenue Model

Company Description

Firefly Neuroscience, Inc., a medical technology and artificial intelligence company, provides neuroscientific solutions that improve outcomes for patients with mental illnesses and neurological disorders. The company offers Brain Network Analytics, a software that focuses on diagnostic and treatment for people suffering from mental illnesses and cognitive disorders, including depression, dementia, anxiety disorders, concussions, and attention-deficit/hyperactivity disorder. It serves pharmaceutical companies and medical practitioners. Firefly Neuroscience, Inc. is based in Toronto, Canada.

How the Company Makes Money

Firefly Neuroscience generates revenue through the sale of its neurotechnology products and solutions. The company targets both individual consumers and healthcare institutions, offering devices that are either purchased outright or through subscription-based models. Key revenue streams include direct sales of brain-computer interface devices, licensing of proprietary neurofeedback software, and subscription services for ongoing access to cognitive enhancement programs. Additionally, Firefly Neuroscience may engage in strategic partnerships with healthcare providers and technology companies to expand its market reach and enhance product offerings, thereby contributing to its revenue growth.

Firefly Neuroscience Financial Statement Overview

Summary

Firefly Neuroscience is currently facing substantial financial challenges, characterized by persistent losses, negative equity, and cash flow deficits. The financial outlook is concerning, with significant risks associated with its current leverage and inability to generate positive cash flows from operations.

Income Statement

Firefly Neuroscience demonstrates a significant challenge in achieving profitability, with consistent negative net income and EBIT over the years. The company experienced a sharp decline in revenue from 2023 to 2024, paired with widening losses, indicating challenges in revenue generation and cost management.

Balance Sheet

The balance sheet shows a concerning negative stockholders' equity, indicating the company is over-leveraged relative to its assets. The debt-to-equity ratio is also not calculable due to negative equity, further highlighting financial instability.

Cash Flow

Cash flow analysis reveals negative free cash flow throughout the years, suggesting ongoing operational cash deficits. Although the company has managed to secure financing, operational cash flow remains negative, indicating a reliance on external funding.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement		Total Revenue
108.00K	498.00K	0.00	32.00K
	Gross Profit
108.00K	498.00K	0.00	32.00K
	EBIT
-10.05M	-3.08M	-3.33M	-4.65M
	EBITDA
-10.32M	-2.58M	-3.20M	-3.82M
	Net Income Common Stockholders
-10.46M	-2.60M	-3.79M	-4.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.81M	2.14M	58.00K	653.00K
	Total Assets
4.60M	2.64M	135.00K	953.00K
	Total Debt
694.00K	0.00	0.00	1.79M
	Net Debt
-1.12M	-2.14M	-58.00K	1.14M
	Total Liabilities
4.98M	2.53M	2.25M	3.97M
	Stockholders Equity
-375.00K	109.00K	-2.11M	-3.01M
Cash Flow		Free Cash Flow
-6.57M	-2.56M	-2.89M	-3.82M
	Operating Cash Flow
-6.16M	-2.17M	-2.89M	-3.82M
	Investing Cash Flow
-477.00K	-386.00K	262.00K	1.60M
	Financing Cash Flow
6.30M	4.64M	2.04M	2.04M

Firefly Neuroscience Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIFF, the sentiment is Negative. The current price of 3 is below the 20-day moving average (MA) of 3.75, below the 50-day MA of 4.91, and below the 200-day MA of 4.25, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 39.41 is Neutral, neither overbought nor oversold. The STOCH value of 37.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AIFF.

Firefly Neuroscience Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACAD	76 Outperform	$2.48B	11.02	38.89%	―	31.85%	―
NBIX	68 Neutral	$9.39B	29.22	14.16%	―	24.81%	33.67%
BIIB	65 Neutral	$17.12B	10.31	10.36%	―	-1.60%	39.71%
VRTX	64 Neutral	$128.67B	―	-3.15%	―	11.64%	-114.72%
Sector *	58 Neutral	$11.04B	9.83	-6.56%	3.16%	7.59%	-10.43%
SAGE	48 Neutral	$454.96M	―	-63.37%	―	-52.30%	27.13%
AIFF	18 Underperform	$37.66M	―	-965.06%	―	-51.08%	11.31%

Firefly Neuroscience Corporate Events

Firefly Neuroscience Appoints Greg Lipschitz as CEO

Firefly Neuroscience has appointed Greg Lipschitz as the new Chief Executive Officer, effective March 26, 2025. The company has entered into an Executive Employment Agreement with Lipschitz, which includes a base salary of $300,000 per year, potential bonuses, and stock units. The agreement outlines conditions for severance and equity compensation in case of termination, and includes a confidentiality agreement to protect the company’s proprietary information.

Firefly Neuroscience Appoints New Chairman Amid Leadership Changes

On March 10, 2025, Greg Lipschitz resigned as Executive Chairman of Firefly Neuroscience, Inc., though he remains a director. His resignation was not due to any disagreements with the company’s operations. Arun Menawat was elected as the new Chairman, leading to changes in board committee memberships, including David DeCaprio and Stella Vnook taking new roles. Additionally, Paul Krzywicki, the CFO, received stock options and restricted stock units under the company’s 2024 Long-Term Incentive Plan.