Firefly Neuroscience (AIFF) AI Stock Analysis

• Market Cap: $22.46M
• Dividend Yield: N/A
• Average Volume (3M): 316.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.92
• Revenue Growth: -86.22%
• EPS Growth: 24.44%
• Country: US
• Employees: 13
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -2.64
• Shares Outstanding: 13,448,848
• 10 Day Avg. Volume: 358,037
• 30 Day Avg. Volume: 316,761
• PEG Ratio: >-0.01
• Price to Book (P/B): -46.26
• Price to Sales (P/S): 160.64
• P/FCF Ratio: -2.64
• Enterprise Value/Market Cap: 0.31
• Enterprise Value/Revenue: 8.92
• Enterprise Value/Gross Profit: 13.53
• Enterprise Value/Ebitda: -0.36
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 25 Underperform
• Price Target: ―

Firefly Neuroscience's stock is heavily impacted by its significant financial instability, marked by persistent losses, negative equity, and cash flow deficits. The bearish technical indicators further weigh down the score. Although the acquisition of Evoke Neuroscience presents a positive strategic move, it does not sufficiently mitigate the fundamental financial and valuation challenges. Overall, the stock faces a challenging outlook with limited upside potential.

Positive Factors

New Product Launch

The launch of the CLEAR Platform enhances Firefly's product offerings, potentially strengthening its market position by providing advanced EEG data quality, which is crucial for clinical insights and could drive long-term growth.

Strategic Acquisition

The acquisition of Evoke Neuroscience expands Firefly's database and intellectual property, enhancing its competitive edge and supporting its growth strategy in the neurotechnology sector.

Leadership Strengthening

The appointment of a new CEO, Greg Lipschitz, with a structured executive agreement, could bring fresh strategic direction and leadership stability, potentially improving operational execution and long-term strategic planning.

Negative Factors

Financial Instability

Firefly's ongoing financial instability, marked by persistent losses and negative equity, poses significant risks to its operational sustainability and limits its ability to invest in growth opportunities.

Revenue Decline

The significant drop in revenue indicates challenges in market penetration and product adoption, which could hinder long-term growth prospects and affect the company's ability to achieve profitability.

Negative Cash Flow

Consistently negative cash flow suggests reliance on external funding, which may not be sustainable long-term and could impact the company's ability to finance operations and strategic initiatives.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	783.00K	108.00K	498.00K	0.00	32.00K	13.90M
Gross Profit	516.00K	41.00K	498.00K	0.00	32.00K	2.21M
EBITDA	-19.52M	-10.32M	-2.58M	-3.20M	-3.82M	425.44K
Net Income	-21.19M	-10.46M	-2.60M	-3.79M	-4.38M	413.38K
Balance Sheet
Total Assets	12.41M	4.60M	2.64M	135.00K	953.00K	3.77M
Cash, Cash Equivalents and Short-Term Investments	4.33M	1.81M	2.14M	58.00K	653.00K	1.86M
Total Debt	0.00	694.00K	0.00	0.00	1.79M	495.60K
Total Liabilities	2.75M	4.98M	2.53M	2.25M	3.97M	2.16M
Stockholders Equity	9.66M	-375.00K	109.00K	-2.11M	-3.01M	1.61M
Cash Flow
Free Cash Flow	-7.79M	-6.57M	-2.56M	-2.89M	-3.82M	358.72K
Operating Cash Flow	-7.61M	-6.16M	-2.17M	-2.89M	-3.82M	423.26K
Investing Cash Flow	-2.54M	-477.00K	-386.00K	262.00K	1.60M	-64.55K
Financing Cash Flow	13.24M	6.30M	4.64M	2.04M	2.04M	460.00K

Firefly Neuroscience Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 1.61 is below the 20-day moving average (MA) of 1.62, below the 50-day MA of 2.16, and below the 200-day MA of 3.05, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 43.17 is Neutral, neither overbought nor oversold. The STOCH value of 46.75 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IRTC	58 Neutral	$5.86B	―	-53.15%	―	25.45%	66.62%
NMTC	53 Neutral	$36.14M	-4.57	-95.39%	―	145.48%	67.36%
NURO	45 Neutral	―	―	―	―	-48.61%	32.18%
CGTX	41 Neutral	$138.51M	-2.39	-109.73%	―	―	50.39%
AIFF	25 Underperform	$22.46M	-0.57	-404.29%	―	-86.22%	24.44%

Firefly Neuroscience Corporate Events

Firefly Neuroscience Acquires Evoke Neuroscience for $6 Million

On April 30, 2025, Firefly Neurosciences Inc. acquired Evoke Neuroscience, Inc., a medical device company, for $6 million in a deal consisting of cash and stock. This acquisition significantly expands Firefly’s database, intellectual property, and commercial footprint, marking a major step toward building a proprietary foundation model of the human brain. The transaction closed on May 1, 2025, and is expected to enhance Firefly’s industry positioning by leveraging Evoke’s technology and resources, including a large proprietary database and numerous patents. This strategic move aligns with Firefly’s goal of rapid growth and innovation in brain health solutions.

Spark’s Take on AIFF Stock

According to Spark, TipRanks’ AI Analyst, AIFF is a Underperform.

Firefly Neuroscience faces significant financial hurdles, including widening losses and negative equity, which are the most critical factors impacting its stock score. The technical analysis further highlights bearish trends, with the stock trading below key moving averages. The negative P/E ratio and absence of dividends further reflect valuation concerns. Overall, the financial instability and bearish technical indicators result in a low stock score.

To see Spark’s full report on AIFF stock, click here.

Firefly Neuroscience Appoints New President and COO

Firefly Neuroscience has approved the issuance of shares to BPY Limited and Nomis Bay Ltd. as part of inducement agreements, and entered into settlement agreements with Ian McLean and 1128526 Alberta Ltd. to resolve employment-related disputes. Additionally, David DeCaprio has been appointed as the President and COO, with Arun Menawat filling his previous board committee roles. These developments are part of strategic moves to strengthen company operations and resolve outstanding legal matters.

Spark’s Take on AIFF Stock

According to Spark, TipRanks’ AI Analyst, AIFF is a Underperform.

Firefly Neuroscience faces significant financial hurdles, including widening losses and negative equity, which are the most critical factors impacting its stock score. The technical analysis further highlights bearish trends, with the stock trading below key moving averages. The negative P/E ratio and absence of dividends further reflect valuation concerns. Overall, the financial instability and bearish technical indicators result in a low stock score.

To see Spark’s full report on AIFF stock, click here.

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.