Spectral AI Announces New US Government Contract to Further Accelerate the Development of the Handheld Version of DeepView™ Wound Imaging System

Rhea-AI Summary

Spectral AI, Inc. (MDAI) secures a new $500,000 contract with the Defense Health Agency and the US Army Medical Material Development Activity for the development of the handheld version of DeepView™ Wound Imaging System. The Company has received over $149 million in non-dilutive financing in the past six months, bringing the total government support to over $250 million. The contract aims to optimize the device's functionality and size for combat readiness and potential use in home health care, reinforcing Spectral AI's position as a leader in AI-driven healthcare innovation.

Medical Research Analyst

The recent contract awarded to Spectral AI by the Defense Health Agency (DHA) and the US Army Medical Material Development Activity (USAMMDA) signifies a strategic investment in medical diagnostics technology, specifically in the area of wound care. The focus on the DeepView SnapShot® M, a handheld version of the DeepView™ Wound Imaging System, highlights a trend towards portable diagnostic tools that can be used in a variety of settings, including battlefield conditions.

The funding aims to optimize the device for combat readiness, which implies a robust, easy-to-use tool capable of functioning in challenging environments. This development is likely to have a ripple effect, as the technology could eventually permeate into civilian healthcare markets, particularly in home health care, where there is a growing demand for portable diagnostic devices. The non-dilutive nature of the funding preserves shareholder value by avoiding equity dilution, which is a significant financial consideration.

Market Research Analyst

Given the substantial non-dilutive financial support from the US Government, which now totals over $250 million, Spectral AI's market position is likely to be strengthened. This level of government backing not only provides capital necessary for development but also serves as a strong endorsement of Spectral AI's technology. The investment in the miniaturization of medical devices aligns with market trends towards personalized and mobile healthcare solutions.

From a market perspective, this could lead to increased adoption rates and potentially open up new markets for Spectral AI. The company's focus on AI-driven healthcare innovation positions it at the forefront of a niche yet expanding segment of the medical diagnostics market. The financial backing and the technology's potential applications could make Spectral AI an attractive partner for other healthcare entities, potentially leading to further collaborations or even acquisitions.

Financial Analyst

The announcement of this contract and its value to Spectral AI's ongoing project indicates a positive financial trajectory for the company. The $500,000 contract, while modest in comparison to the total funding, is a part of a larger pool of non-dilutive capital that the company has secured for the DeepView SnapShot® M, which now exceeds $6 million. This targeted funding is aimed at enhancing a specific product line, which could lead to an increase in the company's asset valuation.

Investors should consider the implications of this funding on Spectral AI's research and development expenses, as well as the potential for future revenue streams from the DeepView SnapShot® M. The investment by the US Government may also reduce financial risk associated with the development of the technology, which could be appealing to both current and prospective investors. It is important to monitor how Spectral AI manages this influx of capital and whether it translates into successful product development and commercialization.

In the past six months, the Company has announced over $149 million of non-dilutive financing from the US Government for the DeepView™ Wound Imaging System

DALLAS, March 12, 2024 (GLOBE NEWSWIRE) -- Spectral AI, Inc. (Nasdaq: MDAI) (“Spectral AI” or the “Company”), an artificial intelligence (AI) company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, today announced a new contract with the Defense Health Agency (DHA) and the US Army Medical Material Development Activity (USAMMDA) that provides significant additional support for the development of the handheld version of DeepView™ Wound Imaging System called DeepView SnapShot^® M.

This newly secured contract is valued at over $500,000 and will build on the previous awards from other U.S. Government Agencies focused on advancing the handheld, DeepView Snapshot^® M, that bring this total for just the DeepView SnapShot^® M to greater than $6 million. The ultimate goal of the contract and this targeted non-dilutive funding is to optimize the functionality and size of the device and to ensure its combat readiness. These optimizations will, in turn, increase the device’s potential for a portable, handheld version for home health care and related invaluable assistance to medical professionals in many settings.

“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.”

The Company has previously announced other significant non-dilutive financial support from the US Government that with this award announced today, now totals over $250 million, including $150 million awarded in the last six months.

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 diagnostic 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 substantially 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
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 strategy, plans, objectives, initiatives and financial outlook. 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.

Contacts:

Investors:

The Equity Group
Devin Sullivan
Managing Director
dsullivan@equityny.com

Conor Rodriguez
Analyst
crodriguez@equityny.com

Media:
Russo Partners
David Schull
Russo Partners
(858) 717-2310
david.schull@russopartnersllc.com

FAQ

How much non-dilutive financing has Spectral AI received from the US Government in the past six months?

Spectral AI has received over $149 million of non-dilutive financing from the US Government in the past six months.

What is the value of the new contract with the Defense Health Agency and the US Army Medical Material Development Activity?

The new contract with the Defense Health Agency and the US Army Medical Material Development Activity is valued at over $500,000.

What is the total government support received by Spectral AI including the recent award?

Spectral AI has received over $250 million in total government support, including $150 million awarded in the last six months.

What is the ultimate goal of the newly secured contract with the US Government agencies?

The ultimate goal of the contract is to optimize the functionality and size of the handheld version of DeepView™ Wound Imaging System for combat readiness and potential use in home health care.

Who is the CEO of Spectral AI?

Pete Carlson is the CEO of Spectral AI.