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KENMORE, N.Y. - Firefly Neuroscience, Inc. (NASDAQ: AIFF), a $38 million market cap company known for its Artificial Intelligence (AI) solutions in brain health, has acquired Evoke Neuroscience, Inc., a medical device company focused on technologies for brain health assessment. The acquisition, announced today, is a strategic move for Firefly to advance its proprietary Brain Network Analytics (BNA™) technology and expand its database and patent portfolio. The company’s stock has shown significant volatility, trading at $3.27, down over 60% from its 52-week high.
The transaction includes a $6 million purchase price, half in cash and half in Firefly common stock, priced at $3.50 per share. Additionally, Evoke investors may receive a $500,000 earn-out if the acquired business achieves $3 million in annualized revenues within three years. According to InvestingPro analysis, Firefly’s short-term obligations currently exceed its liquid assets, with a concerning current ratio of 0.53, making this cash deployment particularly significant. InvestingPro offers 6 additional key insights about AIFF’s financial position.
Firefly’s acquisition of Evoke has significantly expanded its assets, with the company now possessing over 180,000 EEG/ERP assessment records, 27 granted patents, and more than 60 commercial users. These figures represent a substantial increase in Firefly’s proprietary brain scans, patents, and commercial sites.
David Hagedorn Ph.D., CEO and CSO of Evoke, remarked on the technological and commercial synergies between the two companies, seeing the merger as a natural evolution. Greg Lipschitz, CEO of Firefly, expressed enthusiasm about the acquisition, anticipating rapid growth and innovation. He emphasized the importance of the NVIDIA Connect program, which provides access to advanced software resources, in achieving their goals.
Firefly’s BNA™ technology, which is FDA-510(k) cleared, aims to revolutionize the diagnosis and treatment monitoring of various conditions, including depression, dementia, and ADHD. With a comprehensive database of brain wave tests and secured patent protection, Firefly is now commercially launching BNA™, targeting pharmaceutical companies and medical practitioners for clinical use.
The news of this acquisition is based on a press release statement and includes forward-looking statements concerning Firefly’s future plans and potential effects. These statements involve risks and uncertainties, and actual results may differ materially from those projected.
Investors and media seeking further information can contact Stephen Kilmer at Firefly Neuroscience. With Firefly’s next earnings report due on May 14, InvestingPro subscribers can access comprehensive financial health metrics and valuation analysis to better understand the company’s position. The platform’s analysis indicates an overall WEAK financial health score, reflecting challenges in profitability and cash flow management.
In other recent news, Firefly Neuroscience, Inc. has made significant strides in its financial and strategic initiatives. The company successfully raised $8.8 million through the exercise of existing warrants, enhancing its cash reserves and extending its financial runway into mid-2026. This capital is earmarked for advancing their Brain Network Analytics (BNA™) technology, which has already received FDA clearance. In leadership changes, Greg Lipschitz has been appointed as the new CEO, with an annual base salary of $300,000 and potential bonuses tied to performance. Additionally, Arun Menawat has taken on the role of Chairman, following Lipschitz’s resignation from the position, though Lipschitz remains on the board.
Furthermore, Firefly has been accepted into the NVIDIA Connect program, which will aid in developing a foundational model of the human brain using their BNA™ technology. The company also gained stockholder approval for two major stock issuances, which are part of its broader financing strategy. These developments highlight Firefly’s ongoing efforts to bolster its leadership and financial position while advancing its strategic goals. The company remains focused on commercializing its BNA™ platform, targeting its application in drug research and clinical trials.
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