DALLAS - Spectral AI, Inc. (NASDAQ:MDAI), a Dallas-based company specializing in artificial intelligence for medical diagnostics, is poised to join the Russell Microcap Index after markets close on June 28, 2024. The inclusion follows the annual reconstitution of the Russell US Indexes, which ranks the 4,000 largest US stocks by market capitalization as of April 30, 2024.
Membership in the Russell Microcap Index is determined primarily by objective market-capitalization rankings and style attributes, as defined by FTSE Russell. This inclusion is set to last for one year and also means automatic placement in the appropriate growth and value style indexes.
Peter M. Carlson, CEO of Spectral AI, remarked on the milestone, saying, "Spectral AI’s inclusion in the Russell Microcap Index represents the latest milestone in our evolution as a public company." He expressed optimism that this development would raise the company's profile among investment professionals during a transformational period.
Spectral AI's proprietary DeepView™ System is an AI-driven predictive medical device designed to assess the healing potential of wounds, with initial applications for burns and diabetic foot ulcers (DFU). The company recently received UKCA Authorization to commence sales of its DeepView™ AI® Burn in the UK, with expectations to generate its first commercial product revenue in the latter half of 2024. The company has placed devices in multiple UK facilities for evaluation and plans further deployments through the summer.
In the United States, Spectral AI is advancing clinical studies to support the efficacy of the DeepView™ System and is preparing to file additional regulatory submissions in the US and UK in 2024 and 2025.
In September 2023, the US Government awarded Spectral AI a multi-year contract valued at up to $150 million for the development of the DeepView™ System for burn treatment. This is part of over $250 million in non-dilutive financial support the company has received from the government.
For the first quarter ending March 31, 2024, the company reported a 24.6% increase in Research & Development revenue to $6.3 million, with an improved cash position of $10.2 million.
Russell indexes, part of FTSE Russell, serve as benchmarks for approximately $10.5 trillion in assets as of December 2023 and are widely used by investment managers and institutional investors for index funds and active investment strategies.
This news article is based on a press release statement from Spectral AI, Inc.
InvestingPro Insights
As Spectral AI, Inc. (NASDAQ:MDAI) prepares to join the Russell Microcap Index, a look at the company's financials through InvestingPro provides a deeper understanding of its current market position.
With a market capitalization of $28.15M, Spectral AI is a relatively small player in the industry, reflecting the nature of the Microcap Index. Despite the company's recent strides in product development and government contracts, analysts are not expecting profitability this year, which is further underscored by a negative P/E ratio of -1.17. The adjusted P/E ratio for the last twelve months as of Q1 2024 stands at -2.12, indicating challenges in turning revenue into profit.
The company's stock has been trading near its 52-week low, which could be a point of concern or potential interest for investors looking for entry points. With a price that has significantly fallen over the last year, and a 1-year price total return of -84.44%, the market sentiment appears to be cautious. This could be attributed to the fact that the company holds more cash than debt, yet short-term obligations exceed liquid assets, as highlighted by the InvestingPro Tips. Additionally, Spectral AI does not pay a dividend, which might deter income-focused investors.
For those interested in further analysis, InvestingPro offers more tips that could help in making a well-informed investment decision. To access these additional tips and real-time metrics, investors can visit https://www.investing.com/pro/MDAI. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock a total of 7 InvestingPro Tips related to Spectral AI, Inc.
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