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Spectral AI Inc. (MDAI-5.04%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details Spectral AI's focus on developing its DeepView System, an AI-driven diagnostic tool for wound healing. The company has been working on clinical validation and regulatory clearance, primarily funded by the Biomedical Advanced Research and Development Authority (BARDA).
Spectral AI reported research and development revenue of $29.6 million for 2024, a significant increase from $18.1 million in 2023. This growth is attributed to the execution of the PBS BARDA Contract and other U.S. government contracts.
The company incurred a net loss of $15.3 million in 2024, an improvement from a $20.9 million loss in 2023. This reduction in net loss is due to increased revenue and reduced non-operating expenses.
Spectral AI's gross profit for 2024 was $13.3 million, with a gross margin of 44.9%, slightly higher than the previous year's 43.6%. This increase is primarily due to a higher reimbursement rate under the PBS BARDA Contract.
Operating expenses, mainly general and administrative costs, were $19.9 million in 2024, slightly lower than the $20.9 million reported in 2023. The decrease is due to a shift in focus towards revenue-generating research activities.
The company raised funds through a Standby Equity Purchase Agreement with YA II PN, LTD, and a Common Stock Purchase Agreement with B. Riley Principal Capital II, LLC. These agreements provided additional liquidity to support ongoing operations.
Spectral AI's cash balance as of December 31, 2024, was $5.2 million, with notes payable of $2.8 million. The company continues to rely on government contracts for funding its research and development activities.
The company faces risks related to its dependence on government funding, regulatory approval processes, and the commercialization of its DeepView System. These risks are detailed in the risk factors section of the filing.
Spectral AI's management is focused on addressing material weaknesses in internal controls over financial reporting, as identified in the filing. The company is implementing measures to improve these controls.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Spectral AI Inc. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.