FAIRFAX, Va. - Firefly Neuroscience, Inc. has developed an artificial intelligence (AI) algorithm that has received FDA approval for objectively measuring brain activity in mental health and cognitive disorders. The company, which is poised to merge with WaveDancer, Inc. (NASDAQ: WAVD), has spent over a decade and $60 million developing the Brain Network Analytics (BNA™) software platform. This tool is based on electroencephalogram (EEG) data and is designed to provide healthcare professionals with objective assessments of brain function.
The BNA™ Platform enables clinicians to compare a patient's brain activity with a normative, age-matched database that has been cleared by the FDA. The goal is to support accurate diagnoses and treatment management. Firefly's database, which is claimed to be the largest standardized, longitudinal, multi-task EEG database in the world, comprises over 77,000 brain scans from more than 17,000 patients across 106 sites in over 20 countries.
Firefly's BNA™ Platform is commercially available in the U.S. and uses a subscription model aimed at the over 13,800 active neurologists in the country as of 2021. The company estimates the market opportunity for this segment at over $1 billion. Furthermore, Firefly is exploring partnerships with pharmaceutical companies to aid in neuroactive drug development, leveraging the objective brain activation data processed by the BNA™ Platform.
The proposed merger with WaveDancer, a company that has provided IT services since 1979, is subject to stockholder approval. A special meeting of WaveDancer stockholders is scheduled to be held virtually on March 14, 2024, to vote on the merger and other proposals.
This news article is based on a press release statement.
InvestingPro Insights
As WaveDancer, Inc. (NASDAQ: WAVD) prepares for a crucial stockholder vote on its proposed merger with Firefly Neuroscience, investors are keeping a close eye on the company's financial health and stock performance. According to InvestingPro Tips, WAVD has been experiencing significant price volatility, with the stock taking a considerable hit over the last week. This trend aligns with a broader pattern of high price volatility that the stock generally trades with, which could be a factor for investors to consider as they weigh the potential risks and rewards associated with the merger.
On the financial front, WAVD's market capitalization stands at a modest 3.8 million USD, reflecting the challenges the company faces in a competitive market. The InvestingPro Data also reveals a concerning revenue decline, with a -21.6% drop in revenue growth over the last twelve months as of Q1 2023. This financial metric might raise questions about the company's ability to capitalize on the merger and sustain growth in the long term. Additionally, the company's price-to-book ratio as of the last twelve months is 1.32, suggesting that WAVD's market valuation is relatively close to its book value, which may appeal to value-oriented investors.
For those interested in further analysis and tips, InvestingPro offers additional insights on WAVD, including a comprehensive look at the company's cash flow, debt levels, and profitability. Subscribers can access these insights and more by visiting InvestingPro's WAVD page. Moreover, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a total of 13 additional InvestingPro Tips that could provide a deeper understanding of WaveDancer's investment potential.
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