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Firefly Neuroscience (AIFF)
NASDAQ:AIFF
US Market

Firefly Neuroscience (AIFF) AI Stock Analysis

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Firefly Neuroscience

(NASDAQ:AIFF)

Rating:25Underperform
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.

Firefly Neuroscience (AIFF) vs. SPDR S&P 500 ETF (SPY)

Firefly Neuroscience Business Overview & Revenue Model

Company DescriptionFirefly 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 MoneyFirefly 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
15
Very Negative
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
10
Very Negative
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
20
Very Negative
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 2024Dec 2023Dec 2022Dec 2021
Income StatementTotal Revenue
108.00K498.00K0.0032.00K
Gross Profit
108.00K498.00K0.0032.00K
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 SheetCash, Cash Equivalents and Short-Term Investments
1.81M2.14M58.00K653.00K
Total Assets
4.60M2.64M135.00K953.00K
Total Debt
694.00K0.000.001.79M
Net Debt
-1.12M-2.14M-58.00K1.14M
Total Liabilities
4.98M2.53M2.25M3.97M
Stockholders Equity
-375.00K109.00K-2.11M-3.01M
Cash FlowFree 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-386.00K262.00K1.60M
Financing Cash Flow
6.30M4.64M2.04M2.04M

Firefly Neuroscience Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.26
Price Trends
50DMA
3.26
Positive
100DMA
4.11
Negative
200DMA
3.70
Negative
Market Momentum
MACD
-0.03
Negative
RSI
49.71
Neutral
STOCH
38.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AIFF, the sentiment is Neutral. The current price of 3.26 is below the 20-day moving average (MA) of 3.27, above the 50-day MA of 3.26, and below the 200-day MA of 3.70, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.71 is Neutral, neither overbought nor oversold. The STOCH value of 38.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AIFF.

Firefly Neuroscience Risk Analysis

Firefly Neuroscience disclosed 60 risk factors in its most recent earnings report. Firefly Neuroscience reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We may not continue to meet the continued listing requirements of Nasdaq, which could result in a delisting of our common stock. Q3, 2024
2.
Our stockholders may not realize a benefit from the Merger commensurate with the ownership dilution they will experience in connection with the Merger. Q3, 2024
3.
We currently take advantage of reduced disclosure and governance requirements applicable to smaller reporting companies, which could result in our common stock being less attractive to investors. Q3, 2024

Firefly Neuroscience Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$30.14M8.0818.26%14.86%-5.54%-27.40%
66
Neutral
$50.06M8.4640.01%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
53
Neutral
$35.22M-16.05%-9.72%25.68%
25
Underperform
$43.34M-748.64%-51.08%11.31%
$26.48M
47
Neutral
$48.24M-198.18%-24.70%-371.57%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AIFF
Firefly Neuroscience
3.26
-3.55
-52.13%
AWRE
Aware
1.65
-0.18
-9.84%
MNDO
MIND CTI
1.48
-0.18
-10.84%
STEC
Santech Holdings
1.00
0.62
163.16%
SWVL
Swvl
4.46
-4.84
-52.04%
LGCL
Lucas GC Limited
0.60
-1.74
-74.36%

Firefly Neuroscience Corporate Events

M&A TransactionsBusiness Operations and Strategy
Firefly Neuroscience Acquires Evoke Neuroscience for $6 Million
Positive
May 5, 2025

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.

Executive/Board ChangesLegal ProceedingsBusiness Operations and Strategy
Firefly Neuroscience Appoints New President and COO
Neutral
Apr 24, 2025

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.

Executive/Board Changes
Firefly Neuroscience Appoints Greg Lipschitz as CEO
Neutral
Apr 1, 2025

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.

Executive/Board Changes
Firefly Neuroscience Appoints New Chairman Amid Leadership Changes
Neutral
Mar 12, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.