Spectral AI (MDAI) Registration Filing summary

Company overview and business model

• Focuses on predictive medical diagnostics using proprietary AI algorithms to assess wound healing potential, targeting burn wounds and diabetic foot ulcers (DFU).

• DeepView System assists physicians in making more accurate and timely treatment decisions.

• Revenue is currently generated from contract development and research services for government agencies, primarily BARDA and MTEC.

• No product revenue to date; substantial efforts are devoted to R&D and clinical validation.

• Formed a subsidiary, Spectral IP, to advance AI intellectual property in healthcare, supported by a $1M note investment.

Financial performance and metrics

• As of October 15, 2024, public float is approximately $13.1 million, based on 10,364,727 shares at $1.26 per share.

• No product revenue has been generated; revenue is from government contracts and grants.

• Received a $4M grant from MTEC in April 2023 and an additional $800,000 in September 2024 for handheld device development.

Use of proceeds and capital allocation

• Net proceeds will be used for general corporate purposes, including R&D, working capital, expansion, strategic transactions, and potentially to repay the $1M Spectral IP Note.

• Management has broad discretion over allocation; specific uses will be detailed in future prospectus supplements.