Spectral AI Provides Update to Investors

Rhea-AI Summary

Spectral AI (NASDAQ: MDAI), developer of the DeepView® System for burn healing prediction, has announced positive preliminary financial results for 2024. The company expects to report annual revenue surpassing its $28 million market guidance, marking the highest revenue in its history. The growth is attributed to increased focus on completing its BARDA contract, which has also led to improved gross profit margins. The company anticipates reporting over $5.0 million in cash. The DeepView® System, which received FDA Breakthrough Device Designation in 2018, utilizes multi-spectral imaging and algorithms to predict burn healing potential.

Positive

• Expected annual revenue to exceed $28M guidance (highest in company history)
• Improved gross profit margin in 2024
• Cash position over $5.0M
• Progress in BARDA contract completion

Negative

• None.

Insights

Financial Analyst

The preliminary financial results from Spectral AI reveal several key positive indicators for investors. The company's ability to exceed its $28 million revenue guidance demonstrates strong execution and market penetration for their DeepView® System. The improved gross profit margins suggest better operational efficiency and scaling of their business model.

The $5 million cash position, while modest, provides a reasonable runway for near-term operations. However, given the company's relatively small market cap of about $41 million, investors should monitor the burn rate and potential need for additional capital to fund growth initiatives.

The BARDA (Biomedical Advanced Research and Development Authority) contract completion progress is particularly noteworthy, as government contracts typically provide stable, long-term revenue streams and validate the technology's potential for widespread adoption in emergency preparedness and healthcare settings. The FDA Breakthrough Device Designation for their AI-driven burn assessment system positions them favorably in the medical imaging market, potentially accelerating the regulatory approval process and subsequent commercialization.

Looking ahead, key metrics to watch include:

• Conversion rate of the breakthrough designation into full FDA approval
• Expansion of BARDA contract scope or new government partnerships
• Gross margin sustainability and operating leverage improvements
• Cash runway relative to R&D and commercialization needs

DALLAS, Jan. 22, 2025 (GLOBE NEWSWIRE) -- Spectral AI (NASDAQ: MDAI) (“Spectral AI” or the “Company”), developer of the AI-driven DeepView^® System, which received Breakthrough Device Designation from the U.S. FDA in 2018, that uses multi-spectral imaging and algorithms to predict burn healing potential, today announced an update on its operating results.

Pending the completion of its audited financial statements, the Company anticipates reporting annual revenue exceeding its $28 million market guidance. This represents the highest revenue in the Company’s history. This growth is partly driven by the Company’s increased focus on the completion of its BARDA contract, which has also contributed to an improved gross profit margin for the 2024 calendar year. In addition, the Company expects to report over $5.0 million in cash.

About Spectral AI

Spectral AI, Inc. is a Dallas-based predictive AI company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, with initial applications involving patients with burns and diabetic foot ulcers. The Company is working to revolutionize the management of wound care by “Seeing the Unknown^®” with its DeepView^® System. DeepView is a predictive device that offers clinicians an objective and immediate assessment of a wound’s healing potential prior to treatment or other medical intervention. With algorithm-driven results and a goal of exceeding the current standard of care in the future, DeepView is expected to provide faster and more accurate treatment insight towards value care by improving patient outcomes and reducing healthcare costs. For more information about DeepView, visit www.spectral-ai.com.

Forward-Looking Statements

The estimated, projected or anticipated financial results, financial condition or other financial information discussed in this press release are based on management’s preliminary unaudited analysis of financial results for the year ended December 31, 2024. As of the date of this press release, the Company has not completed its financial statement reporting process for the year ended December 31, 2024, and the Company’s independent registered accounting firm has not audited the preliminary financial data discussed in this press release. During the course of the Company’s year-end closing procedures and review process, including the finalization of its financial statements for and as of the year ended December 31, 2024, the Company may identify items that would require it to make adjustments, which may be material to the information presented above. As a result, the estimates above constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to preliminary results. The Company expects to report complete full year 2024 financial results during March 2025.

Certain statements made in this release are “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s intention to separate its Spectral IP subsidiary from the Company, and each Company’s strategy, plans, objectives, initiatives, strategic goals, financial outlook or other non-historical matters. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements. Investors should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” sections of the Company’s filings with the SEC, including the Registration Statement and the other documents filed by the Company. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Spectral AI undertakes no obligation to update any forward-looking statements except as otherwise required by law.

For Media and Investor Relations, please contact:

David Kugelman
Atlanta Capital Partners LLC
(866) 692-6847 Toll Free - U.S. & Canada
(404) 281-8556 Mobile and WhatsApp
Email: dk@atlcp.com

FAQ

What is Spectral AI's (MDAI) expected revenue for 2024?

Spectral AI expects to report annual revenue exceeding $28 million for 2024, which represents the highest revenue in the company's history.

How much cash does Spectral AI (MDAI) expect to report in 2024?

Spectral AI expects to report over $5.0 million in cash.

What factors contributed to Spectral AI's (MDAI) revenue growth in 2024?

The revenue growth was partly driven by the company's increased focus on completing its BARDA contract, which also led to improved gross profit margins.

When did Spectral AI's (MDAI) DeepView System receive FDA Breakthrough Device Designation?

Spectral AI's DeepView System received FDA Breakthrough Device Designation in 2018.