Spectral AI 4Q Loss/Shr 22c >MDAI

By Josh Beckerman

Spectral AI shares slipped 17% Tuesday after the company said it received $1 million of financing for its recently formed intellectual-property unit Spectral IP.

The stock was recently at $2.34 and is down about 5% this year.

Spectral AI, which focuses on AI for medical diagnostics, said the investment is structured as a note payable with a one-year maturity and an interest rate of 8%. It requires earlier prepayment if Spectral IP is spun off to shareholders or sold.

Write to Josh Beckerman at josh.beckerman@wsj.com

Spectral AI, Inc. shares are trading higher Tuesday after the company announced a new U.S. government contract to provide additional support for the development of the handheld version of its DeepView Wound Imaging System.

The Details:

The contract is with the Defense Health Agency and the US Army Medical Material Development Activity and is valued at over $500,0000. The contract provides additional support for the development of the handheld version of DeepView Wound Imaging System called DeepView SnapShot.

“Spectral AI is proud to partner with DHA and the USAMMDA on this crucial initiative. This award further validates Spectral AI’s technology and the importance of a battlefield burn solution we are focusing on,” stated Pete Carlson, CEO of Spectral AI.

“We firmly believe that this collaboration will make a profound impact, as the miniaturization of medical devices is essential for introducing innovative medical care to a wider range of clinical settings and patients. This development reaffirms Spectral AI’s dedication to shaping the future of accessible medical care and solidifies its position as a trailblazer in AI-driven healthcare innovation,” Carlson added.

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Is MDAI A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Spectral AI‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Spectral AI does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Spectral AI will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

MDAI Price Action: According to Benzinga Pro, Spectral AI shares are up 13.4% at $1.95 at the time of publication.

Image: Brian Penny from Pixabay

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Spectral AI said its board appointed Chief Financial Officer Peter Carlson as its chief executive officer, the company said late Thursday.

Carlson succeeds Wensheng Fan, who is transitioning to chief innovation strategist and senior advisor to the CEO.

Vincent Capone, Spectral's general counsel and corporate secretary, will assume the additional role of the CFO.

Carlson joined the company as CFO in January, following its debut on the NASDAQ Global Market. Before Spectral, he served as the CFO of MiMedx Group.

Additionally, Spectral reaffirmed preliminary sales guidance of about $28 million for 2024. Analysts polled by Capital IQ expect $34.7 million.

The company also said preliminary research and development revenue will be about $18 million for the year ended Dec. 31.

"Recent company milestones are expected to generate revenue across four separate platforms covering burn and DFU within the next three years, with the potential for initial commercial revenue as soon as the second half of 2024," the company said.

Spectral AI said in a letter to shareholders Monday that it expects promising interim results from ongoing clinical trials for its predictive diagnostic device DeepView System.

These tests are evaluating DeepView for wound healing assessments in burn victims and individuals with diabetic foot ulcers.

The use of AI-powered DeepView for these cases, subject to regulatory review in the US and the UK, is expected to generate revenue within three years through four separate platforms, with initial commercial revenue as early as this year, the company said.

Spectral AI also secured a $149 million contract from the US Department of Health and Human Services. Other details of the contract were not disclosed.

The company's shares were down 3% in recent trading.

OneMedNet Corp. shares more than doubled Monday premarket following a 10.2% drop in the previous session.

Revelation Biosciences shares surged 54% after Friday's 5.1% slide.

TuanChe shares were 41% higher, adding to gains from the previous session.

Hub Cyber Security shares rose 30%, adding to a 6.3% gain in the previous session.

Spectral AI shares increased 17%, extending Friday's rally.