Liquidity is under severe pressure as the company continues to experience persistent free cash flow deficits, with quarterly outflows consistently ranging between $1.3 million and $2.5 million.
| Cash from Operations | -7.63M | -8.19M | -6.16M | -2.17M | -2.89M | -3.82M | 423.26K |
| Operating CF Margin % | - | -717.51% | -5699.07% | -436.14% | - | -11937.5% | 3.04% |
| Operating CF Growth % | -102.31% | -33.13% | -183.38% | 24.9% | 24.29% | -1002.51% | - |
| Net Income | -8.96M | -19.88M | -10.46M | -2.6M | -3.79M | -4.38M | 413.38K |
| Depreciation & Amortization | 198K | 172K | 67K | 0 | 14K | 429K | 12.06K |
| Stock-Based Compensation | 534K | 781K | 2.72M | 295K | 60K | 608K | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 1.64M | 11.92M | 1.07M | 0 | 432K | -283K | 27.63K |
| Working Capital Changes | -961K | -1.18M | 445K | 136K | 391K | -193K | -29.8K |
| Change in Receivables | -48K | -28K | -37K | -65K | 27K | 26K | -984.21K |
| Change in Inventory | 5K | -37K | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | -444K | -630K | 883K | 35K | -80K | 206K | -112.58K |
| Cash from Investing | -2.54M | -2.49M | -477K | -386K | 262K | 1.6M | -64.55K |
| Capital Expenditures | -179K | -128K | -148K | -386K | 0 | 0 | -64.55K |
| CapEx % of Revenue | 11.3% | 11.21% | 137.04% | 77.51% | - | - | 0.46% |
| Acquisitions | -2.36M | -2.36M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - |
| Other Investing | 0 | 0 | -329K | 0 | 262K | 597K | 0 |
| Cash from Financing | 3.75M | 11.62M | 6.3M | 4.64M | 2.04M | 2.04M | 460K |
| Debt Issued (Net) | 0 | 2.53M | 1.96M | 0 | 1.75M | 2.04M | 450K |
| Equity Issued (Net) | 1.22M | 9.09M | 4.31M | 4.64M | 290K | 0 | 10K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -19K | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 2.53M | 0 | 36K | 0 | 0 | 0 | 0 |
| Net Change in Cash | -6.42M | 937K | -333K | 2.08M | -595K | -181K | 818.72K |
| Free Cash Flow | -7.81M | -8.32M | -6.57M | -2.56M | -2.89M | -3.82M | 358.72K |
| FCF Margin % | -493.06% | -728.72% | -6083.33% | -513.65% | - | -11937.5% | 2.58% |
| FCF Growth % | -0.4% | -26.67% | -156.84% | 11.55% | 24.29% | -1164.9% | - |
| FCF per Share | -0.48 | -0.62 | -1.00 | -0.33 | -0.37 | -0.49 | 0.05 |
| FCF Conversion (FCF/Net Income) | 0.87x | 0.41x | 0.59x | 0.83x | 0.76x | 0.87x | 1.02x |
| Interest Paid | 0 | 0 | 11K | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Critical liquidity runway depletion
As reported in quarterly filings, the relationship between net income and operating cash flow remains highly erratic, with the OCF/NI ratio fluctuating from 0.19 in 2025Q1 to 2.82 in 2024Q2, suggesting that accruals and non-cash adjustments are significantly distorting the underlying cash-generating capability of the business.
The wide variance in the OCF/NI ratio indicates that net income is currently a poor proxy for the company's actual cash position. Investors should monitor whether these swings are driven by lumpy milestone payments or changes in non-cash compensation, as the lack of consistent conversion suggests a business model that has not yet achieved operational maturity.
Based on the provided financial data, AIFF continues to experience a persistent free cash flow deficit, with quarterly outflows consistently ranging between $1.3 million and $2.5 million, indicating that the company is currently unable to fund its operations through internal cash generation alone.
The negative FCF margins, which reached as low as -120.8% in 2024Q1, underscore the heavy reliance on external capital to sustain the current research and development trajectory. This trend suggests that until the company can scale its revenue base significantly, it will remain inherently dependent on dilutive financing events.
According to recent SEC filings, working capital changes have been highly volatile, swinging from a $1.4 million inflow in 2024Q4 to a $971,000 outflow in 2025Q2, which suggests that the timing of client collections and project-related payables is creating significant instability in the company's short-term cash position.
This volatility in working capital likely reflects the project-based nature of the company's pharmaceutical contracts, where payment milestones may not align with ongoing operational expenses. Such fluctuations warrant further investigation into the company's ability to manage its cash conversion cycle effectively as it attempts to scale.
As indicated by the cash flow statements, the company's cash position is being impacted by significant non-operating items, including a $2.4 million net acquisition outflow in 2025Q2, which further strained the company's limited liquidity during a period of already negative operating cash flow.
The presence of these non-operating cash outflows, combined with the ongoing burn, suggests that the company's cash reserves are being depleted by both core operational losses and inorganic growth initiatives. This dual pressure on liquidity may limit management's flexibility to navigate future market volatility without seeking additional capital.
Quick answers to the most common questions about buying AIFF stock.
Firefly Neuroscience, Inc. (AIFF) generated $-8.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Firefly Neuroscience, Inc. (AIFF) reported negative free cash flow of $8.3M in 2025, indicating capital requirements exceeded cash from operations.
Firefly Neuroscience, Inc. (AIFF) spent $0.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.