Yahoo Finance

By John Vandermosten, CFA

NASDAQ:MDAI

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Spectral AI, Inc. (NASDAQ:MDAI) reported first quarter 2025 financial and operational results in a May 13^th press release. The company recognized revenues of $6.7 million, ahead of the run rate for full year guidance of $21.5 million. Net income was $2.9 million or $0.15 per share. However, this included favorable non-cash changes in financial instruments’ fair value. Absent these items, net loss was ($1.6) million or ($0.08) per share. Over the last months, Spectral has been preparing the De Novo package for DeepView which is expected to be submitted to the FDA before the end of the second quarter. During the first quarter and to date, Spectral raised additional capital, completed multiple device installations in Australia, prepared for the intended spin-off of Spectral IP and attended the American Burn Association annual meeting.

1Q:25 Financial and Operational Results

Spectral reported first quarter 2025 results in a press release on May 13^th followed by a conference call to discuss results with investors. A Form 10-Q was subsequently filed with the SEC. For the quarter ending March 31^st, 2025, research and development revenues of $6.7 million were recognized. Net loss from operations was ($896,000) vs. ($2.1) million. For 1Q:25 versus the same prior year period:

• Revenues were $6.7 million up 6% from $6.3 million due to an increase in activity related to BARDA and other US government grant revenues. BARDA revenues totaled $6.4 ›million while other government contracts composed primarily of MTEC funds were $0.3 million;

• Cost of revenue, which can be thought of as research and development expense, totaled $3.5 million, rising 5% from $3.4 million due to higher activity levels related to the BARDA and MTEC contracts. Gross margin improved to 47.2% from 46.6% due to a higher concentration of direct labor as a component of reimbursement;

• General & Administrative expenses were $4.1 million, down 20% from $5.1 million reflecting less work performed outside of the BARDA contract;

• Net interest income was ($20,000) compared to $14,000;

• Other expense was a $3.9 million gain vs. a ($1.1) million loss related to a decrease in the fair value of the company’s warrants;

• Income tax was ($71,000) vs. ($22,000);

• Net loss was $2.9 million vs. ($3.2) million or $0.15 and ($0.19) per share, respectively. After removing changes in fair value of financial instruments, net loss was ($1.6) million vs. ($3.2) million or ($0.08) and ($0.20) per share respectively.