Firefly Neuroscience (AIFF) AI Stock Analysis

• Market Cap: $13.90M
• Dividend Yield: N/A
• Average Volume (3M): 316.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 3.05
• 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: 13,492,928
• 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: 0.50
• 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: 44 Neutral
• Price Target: $1.00 ▼(-4.86% Downside)

The score is driven primarily by weak financial fundamentals—very large losses and ongoing cash burn—despite strong recent revenue growth and improved gross margin. Technicals are also bearish with the stock well below key moving averages and negative MACD, while valuation offers limited support due to negative earnings and no dividend. The warrant restructuring is a small liquidity positive but highlights continued reliance on external capital.

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: 1.05
• 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 1.05 is below the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.40, and below the 200-day MA of 2.52, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 36.01 is Neutral, neither overbought nor oversold. The STOCH value of 42.75 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	51 Neutral	$5.39B	-103.13	-53.15%	―	25.45%	66.62%
NMTC	50 Neutral	$45.51M	-11.51	-91.34%	―	250.35%	83.06%
AIFF	44 Neutral	$13.90M	-0.41	-404.29%	―	-86.22%	24.44%
CGTX	44 Neutral	$128.88M	-3.07	-109.73%	―	―	50.39%

Firefly Neuroscience Corporate Events

Firefly Neuroscience Restructures Warrants to Raise New Capital

On December 16, 2025, Firefly Neuroscience, Inc. entered into a Warrants Cancellation and Exchange Agreement with certain investors to restructure previously issued equity warrants. The company agreed to cancel June 16, 2025 warrants covering 800,000 common shares at exercise prices of $3.50 and $4.00 per share and replace them with new 2025 warrants for the same total number of shares at a significantly reduced exercise price of $0.50 per share, in a private placement relying on exemptions from Securities Act registration.

Under the new arrangement, the warrant holders committed to exercise the new warrants to the maximum extent allowed by specified beneficial ownership limits within ten business days of the exercise date and to continue exercising remaining warrants over time until fully exercised, which could generate up to approximately $400,000 in gross proceeds for Firefly Neuroscience. The company plans to use any proceeds for working capital and general corporate purposes, and disclosed that there were no prior material relationships between the company and the warrant investors, signaling a balance-sheet-focused transaction designed to secure additional capital on more exercise-friendly terms for investors.

Firefly Neuroscience Approves Increase in Authorized Shares

On October 27, 2025, Firefly Neuroscience, Inc. held its annual meeting of stockholders where several proposals were voted on, including the election of directors and amendments to the company’s long-term incentive plan. The meeting was adjourned to allow further consideration of a proposal to significantly increase the number of authorized shares, which was later approved on October 31, 2025. This approval is expected to impact the company’s capital structure and provide flexibility for future growth initiatives.