Firefly Confirms Public-Private Partnership with the Department of War
Rhea-AI Summary
Firefly (NASDAQ: AIFF) announced a public-private partnership with the Department of War on March 26, 2026, to deploy its FDA 510(k)-cleared, AI-powered EEG/ERP platform for assessment and treatment of PTSD and TBI in U.S. service members and veterans.
The deal expands Firefly’s commercial footprint into U.S. government and defense health sectors, builds on the May 2025 Evoke acquisition, and cites large military health burdens to justify deployment.
AI-generated analysis. Not financial advice.
Positive
- FDA 510(k) clearance for AI-powered EEG/ERP
- Partnership expands commercial footprint into U.S. government/defense
- Acquisition of Evoke in May 2025 supports program genesis
Negative
- Specific partnership terms remain confidential, creating investor uncertainty
- No disclosed revenue, pricing, or contract value tied to the DoW programs
News Market Reaction – AIFF
On the day this news was published, AIFF gained 79.76%, reflecting a significant positive market reaction. Argus tracked a peak move of +95.0% during that session. Our momentum scanner triggered 49 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $20M to the company's valuation, bringing the market cap to $44.35M at that time. Trading volume was very high at 4.2x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
AIFF was down 7.69% with peers NTCL (-3.08%) and WETO (-6.48%) also moving down. Sector scanner notes 2 peers lower (median about -4.8%), pointing to broader Services-prepackaged Software weakness alongside the company-specific partnership news.
Previous Partnership Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Sep 05 | Clinical network partnership | Positive | +3.7% | HealingMaps deal to offer EEG analytics to 2,500+ alternative therapy clinics. |
| Aug 21 | Neurology partnership | Positive | -10.0% | Strategic partnership with NCD to enhance early detection of cognitive disorders. |
Partnership headlines have produced mixed reactions: one positive move and one notable selloff, yielding an average negative move despite generally positive strategic messaging.
Over recent years, Firefly has used partnerships to extend deployment of its FDA-cleared EEG/ERP technology. A Sep 5, 2025 agreement with HealingMaps targeted over 2,500 alternative therapy clinics, while a Aug 21, 2024 collaboration with Neurology Consultants of Dallas focused on cognitive disorder detection and management. Market reactions were inconsistent, with one modest gain and one double‑digit decline. Today’s U.S. government and defense health partnership continues this strategy of embedding the platform into specialized care networks.
Historical Comparison
In the past, partnership news for AIFF led to average moves of about -3.15%. Today’s -7.69% pre-news decline is weaker than typical for this tag.
Earlier partnerships expanded Firefly’s EEG/ERP platform into clinic networks; the current announcement extends that model into U.S. government and defense health channels for PTSD and TBI.
Regulatory & Risk Context
An effective mixed shelf filed on Dec 3, 2025 registers up to $250,000,000 of various securities. It has already supported at least one at-the-market facility via a Feb 3, 2026 prospectus supplement, indicating the company has established capacity to raise additional capital as needed.
Market Pulse Summary
The stock surged +79.8% in the session following this news. A strong positive reaction aligns with prior enthusiasm for Firefly’s AI-driven EEG/ERP milestones and partnerships. Earlier collaborations produced price spikes on select announcements, though outcomes were mixed. Investors have also faced dilution capacity via a $250,000,000 shelf and at-the-market facilities, which can temper sustainability if tapped aggressively. Historical variability around partnership news suggests that follow‑through on deployment scale and government adoption metrics would be key to sustaining any large upside move.
Key Terms
eeg medical
erp medical
ptsd medical
tbi medical
fda 510(k) regulatory
biomarker medical
foundation model technical
gpu technical
AI-generated analysis. Not financial advice.
Firefly’s AI-powered, FDA-cleared EEG/ERP Technology is Being Deployed to Support Assessment and Treatment of PTSD and TBI in U.S. Service Members
Partnership Represents a Significant Expansion of Company’s Commercial Footprint into the U.S. Government and Defense Health Sectors
KENMORE, N.Y., March 26, 2026 (GLOBE NEWSWIRE) -- Firefly Neuroscience, Inc. (NASDAQ: AIFF) (“Firefly,” or the “Company”), today announced a partnership with the Department of War (“DoW”) to support the assessment and treatment of active-duty U.S. service members and veterans suffering from Post-Traumatic Stress Disorder (“PTSD”) and/or Traumatic Brain Injury (“TBI”).
The genesis of this innovative public-private brain health partnership was initial work by the founders of Evoke Neuroscience, Inc. (acquired by Firefly in May 2025) with the U.S. Naval Medical Center Camp Lejeune Family Medicine Residency program. Specific details of the partnership and related programs remain confidential in accordance with applicable agreements.
Addressing a Multi-Billion Dollar Military Mental Health Crisis
PTSD and TBI represent two of the most significant and pervasive health challenges facing the U.S. military. The total excess economic burden of PTSD in the United States has been estimated at
Despite the scale of this public and military health burden, objective, biomarker-driven diagnostic tools have remained largely absent from standard care — a gap that Firefly’s EEG/ERP technology is intended to help address.
FDA-Cleared AI Technology Supporting DoW Programs
Firefly’s FDA 510(k)-cleared, AI-powered EEG/ERP platform is being utilized across related DoW programs, providing military healthcare providers with objective, quantitative neurological data intended to support more precise diagnosis, individualized treatment planning, and measurable outcomes tracking. The platform is non-invasive, scalable across both clinical and operational environments, and designed for real-world deployment at scale. The DoW partnership represents a potentially significant channel for Firefly’s commercial strategy, expanding the Company’s footprint into the U.S. government and defense health sectors.
“Every U.S. service member who comes home carrying the invisible wounds of PTSD and/or TBI deserves to be truly seen — not just screened,” commented Dave DeCaprio, President and Chief Operating Officer of Firefly. “This partnership reflects our core mission: to bring the most advanced, objective brain health tools to the people who need them most, so that military healthcare providers may act earlier, treat more precisely, and give people a real path forward. We are proud that Firefly’s technology is being trusted to serve those who have sacrificed so much for this country.”
“We believe that this ongoing strategic partnership positions us well to benefit from the significant and growing U.S. government investment in military brain health — with a validated, FDA-cleared platform,” said Firefly’s Chief Executive Officer, Greg Lipschitz. “Our work with U.S. service members also complements our strategic initiative to build a proprietary foundation model of the human brain by combining a rapidly growing repository of brain scan data and important access to NVIDIA GPU acceleration to power next-generation EEG/ERP processing.”
Sources
1 Davis LL, Schein J, Cloutier M, et al. “The Economic Burden of Posttraumatic Stress Disorder in the United States From a Societal Perspective.” The Journal of Clinical Psychiatry, 2022.
2 Haarbauer-Krupa J, et al “Epidemiology of Chronic Effects of Traumatic Brain Injury." J Neurotrauma, 2021.
3 RAND Corporation. “Improving Care for Veterans with Traumatic Brain Injury Across the Lifespan.” Commissioned by Wounded Warrior Project, 2022.
About Firefly Neuroscience
Firefly (NASDAQ: AIFF) is an Artificial Intelligence (“AI”) company developing innovative solutions designed to provide clinicians and researchers with unparalleled insights into brain function. Firefly’s proprietary database currently consists of over 191,000 EEG/ERP brain scans, making it the world’s largest known standardized EEG/ERP repository. Firefly’s EEG-based, AI-driven, and FDA-510(k)-cleared brain analytics technology has the potential to revolutionize diagnostic and treatment monitoring methods for conditions such as depression, dementia, anxiety disorders, concussions, and ADHD.
Please visit www.fireflyneuro.com for more information.
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” for purposes of the federal securities laws concerning Firefly. These forward-looking statements include express or implied statements relating to Firefly’s management team’s expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on current expectations and beliefs concerning future developments and their potential effects. There can be no assurance that future developments affecting Firefly will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Firefly’s control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors” in the reports and other filings of Firefly with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of Firefly’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. It is not possible to predict or identify all such risks. Forward-looking statements included in this press release only speak as of the date they are made, and Firefly does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Investor & Media Contact
Stephen Kilmer
(646) 274-3580
stephen.kilmer@fireflyneuro.com
