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KENMORE, N.Y. - Firefly Neuroscience, Inc. (NASDAQ: AIFF), a micro-cap healthcare technology company currently valued at approximately $40 million, reported new research findings showing that combining electroencephalogram/event-related potential (EEG/ERP) technology with volumetric magnetic resonance imaging (vMRI) can accurately differentiate between stages of cognitive decline. According to InvestingPro data, the company maintains a strong cash position relative to debt, though it’s currently unprofitable with significant cash burn.
The study demonstrated that the combined approach achieved approximately 87% accuracy in distinguishing between subjective cognitive decline, mild cognitive impairment, and dementia. Using EEG measures alone provided about 80% accuracy. While the technology shows promise, InvestingPro analysis reveals the company’s revenue remains modest at $140,000 over the last twelve months, with a concerning -72% revenue decline.
The research, which examined 161 patients for EEG and 111 for MRI in memory clinic settings, identified three key EEG indicators: reaction time, commission errors, and P300b amplitude. For MRI assessment, left temporal lobe size emerged as a significant predictor of cognitive issues.
"This was not a lab study. It utilized patients in memory clinics, so it was real-world data," said Greg Lipschitz, CEO of Firefly, according to the company’s press release.
The findings potentially support broader clinical application of Firefly’s FDA-cleared Brain Network Analytics (BNA™) technology platform, which the company states utilizes artificial intelligence and machine learning based on a database of standardized electroencephalograms.
Firefly recently acquired Evoke Neuroscience and claims to now possess "the largest known proprietary database of >180,000 standardized, EEG/ERP assessment records."
The company suggests these technologies could provide a less invasive and more accessible alternative to traditional cognitive assessment methods, potentially enabling earlier detection and intervention for Alzheimer’s disease.
Firefly Neuroscience develops AI solutions for neurological and mental disorders, with its technology aimed at pharmaceutical companies conducting drug research and clinical trials, as well as medical practitioners.
In other recent news, Firefly Neuroscience has made a significant move by acquiring Evoke Neuroscience for $6 million, a deal structured with half in cash and half in Firefly stock. This acquisition is poised to enhance Firefly’s Brain Network Analytics technology, expanding its database to over 180,000 EEG/ERP assessment records and securing 27 patents. The acquisition also includes a potential $500,000 earn-out for Evoke investors, contingent on achieving $3 million in annualized revenues within three years. Concurrently, Firefly has appointed Greg Lipschitz as its new CEO, with a compensation package that includes a $300,000 base salary and potential bonuses. Lipschitz’s appointment is part of a broader strategy to drive innovation and market expansion. His employment agreement includes provisions for severance and equity compensation, highlighting the company’s commitment to leadership stability. These developments reflect Firefly’s strategic focus on leveraging technological synergies and expanding its market presence.
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