Spectral AI (MDAI) S-1 10 Apr 24 IPO registration Financial data

Document And Entity Information

Document And Entity Information	12 Months Ended
	Dec. 31, 2023
Document Information Line Items
Entity Registrant Name	Spectral AI, Inc.
Document Type	S-1
Amendment Flag	false
Entity Central Index Key	0001833498
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Incorporation, State or Country Code	DE

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Current assets:
Cash	$ 4,790	$ 14,174
Accounts receivable, net	2,346	2,294
Inventory	230
Unbilled revenue		618
Deferred offering costs	283
Prepaid expenses	1,452	331
Other current assets	801	270
Total current assets	9,902	17,687
Non-current assets:
Property and equipment, net	12	21
Right-of-use assets	778	1,008
Total Assets	10,692	18,716
Commitments and contingencies (Note 8)
Current liabilities:
Accounts payable	2,683	2,759
Accrued expenses	4,300	2,631
Deferred revenue	2,311
Lease liabilities, short-term	853	680
Notes payable	436	175
Warrant liabilities	1,818	129
Total current liabilities	12,401	6,374
Lease liabilities, long-term		346
Total Liabilities	12,401	6,720
Stockholders’ Equity (Deficit)
Preferred stock ($0.0001 par value); 1,000,000 shares authorized; no shares issued and outstanding as of December 31, 2023 and December 31, 2022
Common stock ($0.0001 par value); 80,000,000 shares authorized; 16,294,935 and 13,170,148 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively	2	1
Additional paid-in capital	31,065	23,929
Accumulated other comprehensive income	12
Accumulated deficit	(32,788)	(11,934)
Total Stockholders’ Equity (Deficit)	(1,709)	11,996
Total Liabilities and Stockholders’ Equity (Deficit)	$ 10,692	$ 18,716

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value (in Dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	16,294,935	13,170,148
Common stock, shares outstanding	16,294,935	13,170,148

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Research and development revenue	$ 18,056	$ 25,368
Cost of revenue	(10,176)	(14,531)
Gross profit	7,880	10,837
Operating costs and expenses:
General and administrative	20,864	13,484
Total operating costs and expenses	20,864	13,484
Operating loss	(12,984)	(2,647)
Other income (expense):
Net interest income	172	21
Change in fair value of warrant liability	335	57
Foreign exchange transaction loss, net	(24)	(237)
Transaction costs	(8,342)
Total other expense, net	(7,859)	(159)
Loss before income taxes	(20,843)	(2,806)
Income tax provision	(11)	(106)
Net loss	$ (20,854)	$ (2,912)
Net loss per share of common stock
Basic net loss per share of common stock (in Dollars per share)	$ (1.48)	$ (0.22)
Weighted-average common shares outstanding
Weighted-average common shares outstanding basic (in Shares)	14,087,586	13,136,965
Other comprehensive income:
Foreign currency translation adjustments	$ 12
Total comprehensive loss	$ (20,842)	$ (2,912)

Consolidated Statements of Op_2

Consolidated Statements of Operations and Comprehensive Loss (Parentheticals) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Diluted net loss per share of common stock	$ (1.48)	$ (0.22)
Weighted-average common shares outstanding diluted	14,087,586	13,136,965

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders’ Equity (Deficit) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total
Balance at Dec. 31, 2021	$ 135	$ 22,640		$ (9,022)	$ 13,753
Balance (in Shares) at Dec. 31, 2021	135,034,564
Balance at December 31, 2021, after effect of Business Combination	$ 1	22,774		(9,022)	13,753
Balance at December 31, 2021, after effect of Business Combination (in Shares)	13,097,404
Stock-based compensation		1,155			1,155
Stock-based compensation (in Shares)	72,744
Net loss				(2,912)	(2,912)
Balance at Dec. 31, 2022	$ 1	23,929		(11,934)	$ 11,996
Balance (in Shares) at Dec. 31, 2022	13,170,148				13,170,148
Retroactive application of recapitalization	$ (134)	134
Retroactive application of recapitalization (in Shares)	(121,937,160)
Issuance of common stock upon Business Combination	$ 1	(2,375)			(2,374)
Issuance of common stock upon Business Combination (in Shares)	1,154,173
Issuance of common stock to settle accounts payable		150			150
Issuance of common stock to settle accounts payable (in Shares)	33,333
Issuance of shares for transaction costs		4,350			4,350
Issuance of shares for transaction costs (in Shares)	966,667
Private placement equity issuance		3,351			3,351
Private placement equity issuance (in Shares)	744,667
Financing equity issuance		101			101
Financing equity issuance (in Shares)	40,000
Stock option exercises		316			$ 316
Stock option exercises (in Shares)	155,629				126,247
Cumulative translation adjustment			12		$ 12
Stock-based compensation		1,243			1,243
Stock-based compensation (in Shares)	30,318
Net loss				(20,854)	(20,854)
Balance at Dec. 31, 2023	$ 2	$ 31,065	$ 12	$ (32,788)	$ (1,709)
Balance (in Shares) at Dec. 31, 2023	16,294,935				16,294,935

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net loss	$ (20,854)	$ (2,912)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	9	11
Stock-based compensation	1,243	1,155
Amortization of right-of-use assets	713	557
Issuance of shares for transaction costs	4,350
Change in fair value of warrant liabilities	(335)	(57)
Changes in operating assets and liabilities:
Accounts receivable	(52)	(859)
Inventory	(230)
Unbilled revenue	618	(547)
Prepaid expenses	(377)	615
Other assets	(404)	40
Accounts payable	(935)	1,345
Accrued expenses	1,359	51
Deferred revenue	2,311
Lease liabilities	(656)	(561)
Net cash used in operating activities	(13,240)	(1,162)
Cash flows from financing activities:
Proceeds from issuance of common stock for Equity Raise	3,351
Cash received in Business Combination	660
Payments for notes payable	(483)	(785)
Stock option exercises	316
Net cash provided by (used in) financing activities	3,844	(785)
Effect of exchange rate changes on cash	12
Net decrease in cash	(9,384)	(1,947)
Cash, beginning of period	14,174	16,121
Cash, end of period	4,790	14,174
Supplemental cash flow information:
Cash paid for interest	29	23
Cash paid for taxes	114	53
Noncash operating and financing activities disclosure:
Recognition of Right-of-use assets and related lease liabilities upon adoption of ASC 842		610
Recognition of Right-of-use assets and related lease liabilities upon lease amendment	483	955
Issuance of common stock for net liabilities upon Business Combination	3,034
Prepaid asset acquired, net of cancellation, for debt and accounts payable	744	376
Issuance of common stock to settle accounts payable	150
Deferred offering costs included in accrued expenses	182
Issuance of common stock to settle deferred offering costs	$ 101

Nature of the Business

Nature of the Business	12 Months Ended
	Dec. 31, 2023
Nature of the Business [Abstract]
NATURE OF THE BUSINESS	1. NATURE OF THE BUSINESS Business Combination Spectral AI, Inc., a Delaware corporation formerly known as Rosecliff Acquisition Corp I (“Spectral AI” or the “Company”) was formed as a blank check company on November 17, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On September 11, 2023, the Company consummated a business combination (the “Business Combination”), pursuant to the business combination agreement dated April 11, 2023 (the “Business Combination Agreement”) by and among the Company, Ghost Merger Sub I, a Delaware Corporation, Ghost Merger Sub II, a Delaware corporation and Spectral MD Holdings, Ltd., a Delaware corporation incorporated on March 9, 2009 and headquartered in Dallas, Texas (“Legacy Spectral”). Upon closing of the Business Combination (the “Closing”), in sequential order: (a) Ghost Merger Sub I merged with and into the Legacy Spectral, with Legacy Spectral continuing as the surviving company as a wholly owned subsidiary of the Company (the “Spectral Merger”) and then, (b) Legacy Spectral merged with and into Ghost Merger Sub II (renamed Spectral MD Holdings LLC) (the “SPAC Merger”, together with the Spectral Merger (the “Business Combination”)), with Ghost Merger Sub II surviving the SPAC Merger as a direct wholly -owned In conjunction with the Business Combination, the Company cancelled the redeemable warrants that it issued to Rosecliff Acquisition Sponsor I LLC, a Delaware limited liability company (the “Sponsor”), in a private placement (the “Private Warrants”) in connection with the Company’s initial public offering on February 17, 2021 (the “Initial Public Offering”) at Closing, but the 8,433,333 redeemable warrants issued to the public in the Initial Public Offering (the “Public Warrants”) remain outstanding. Prior to the Business Combination, Rosecliff Acquisition Corp I (“Rosecliff”) had 280,485 Prior to the Business Combination, Legacy Spectral’s shares of common stock, par value $0.001 per share (“Legacy Spectral Common Stock”) were listed on the AIM market on the London Stock Exchange (delisted on September 7, 2023). In September 2023, prior to the Closing, Legacy Spectral issued 7,679,198 shares of Legacy Spectral Common Stock to certain investors in a private placement, in exchange for $3.4 million (the “Equity Raise”).Upon the Closing, all of Legacy Spectral’s issued and outstanding 145,380,871 shares of Legacy Spectral Common Stock, including the shares from the Equity Raise, were exchanged for 14,094,450 On September 12, 2023, the Company began trading the Company Common Stock and the Public Warrants on the NASDAQ Capital Market (“NASDAQ”) under the symbols “MDAI” and “MDAIW”, respectively. Prior to the Business Combination, the Company’s shares of Company Common Stock and Public Warrants were listed on the NASDAQ under the symbols “RCLF” and “RCLFW”, respectively. Nature of Operations Spectral AI is devoting substantially all of its efforts towards research and development of its DeepView ® In September 2023, the Company executed its third contract with BARDA for a multi -year -year ® In April, 2023, the Company received a $4.0 million grant from MTEC for a project that is expected to be completed by April 2025 (the “MTEC Agreement”). The MTEC project is for the development of a handheld device for the DeepView System which is to be used to support military battlefield burn evaluation. The project has three phases, beginning with planning, design and testing; followed by development, design modification and buildout of the handheld device; and then the manufacturing of the handheld device. The Company operates in one segment. Risks and Uncertainties The Company is subject to a number of risks common to development stage companies in the medical technology industry, including, but not limited to, risks of failure of preclinical studies and clinical trials, dependence on key personnel, protection of proprietary technology, reliance on third party organizations, risks of obtaining regulatory approval for any products that it may develop, development by competitors of technological innovations, compliance with government regulations and the need to obtain additional financing. Liquidity As of December 31, 2023 and December 31, 2022, the Company had approximately $4.8 million and $14.2 million, respectively, in cash, and an accumulated deficit of $32.8 million and $11.9 million, respectively. The Company has historically funded its operations through the issuance of notes and the sale of preferred stock and common stock. In December 2023, the Company entered into a Common Stock Purchase Agreement (the “Purchase Agreement”) and a related Registration Rights Agreement (the “Registration Rights Agreement”), each dated as of December 26, 2023, with B. Riley Principal Capital II, LLC (“B. Riley Principal Capital II”). Upon the terms and subject to the satisfaction of the conditions set forth in the Purchase Agreement, the Company will have the right, in its sole discretion, to sell to B. Riley Principal Capital II up to $10.0 million in aggregate gross purchase price of newly issued shares of the Company’s common stock, par value $0.0001 per share (the “B. Riley Common Stock”). This amount of newly issued shares is subject to the 19.99% threshold of the aggregate number of shares of Common Stock issued pursuant to the relative agreement (the “Exchange Cap”), unless approval of the Company’s shareholders is otherwise received. Together with the new PBS BARDA Contract, executed in September 2023, for a total value of up to approximately $150.0 million, the Company’s total potential support from BARDA is nearly $251.0 million if all future options are executed. The base phase of the PBS BARDA Contract, valued at $54.9 million, was exercised concurrently with the contract award in September 2023. To date, for the 2013, 2019, and 2023 BARDA contracts, the Company has committed funding of $155.9 million of which the Company has received $106.5 million. In April 2023, the Company received a $4.0 million grant under the MTEC Agreement. In March 2024, the Company entered into a Standby Equity Purchase Agreement (“SEPA”) with YA II PN, Ltd. (“Yorkville”), whereby the Company has the right, but not the obligation, to sell to Yorkville up to $30.0 million of Common Stock. This amount of newly issued shares is subject to the Exchange Cap (as previously defined), unless approval of the Company’s shareholders is otherwise received. In connection with the SEPA, Yorkville has agreed to a prepaid advance of $12.5 million (the “Pre -Paid -Paid -Paid With the PBS BARDA Contract, the MTEC Agreement, the B. Riley financing, and the Yorkville financing, the Company believes it will have sufficient working capital to fund operations for at least one year beyond the release date of the consolidated financial statements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2023
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company’s consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) or an Accounting Standards Update (“ASU”). The Business Combination was accounted for as a reverse recapitalization in accordance with GAAP. Legacy Spectral was determined as the accounting acquirer and the Company as the acquired company for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination is treated as the equivalent of a capital transaction in which Legacy Spectral issued stock for the net assets of the Company. Upon the Closing, the net assets of the Company are stated at fair value, with no goodwill or other intangible assets recorded. See Note 3. Legacy Spectral was determined to be the accounting acquiror based on evaluation of the following facts and circumstances: (i) (ii) (iii) (iv) (v) All historical financial information presented in the consolidated financial statements represents the accounts of Legacy Spectral at their historical values as if Legacy Spectral is the predecessor to the Company. The consolidated financial statements following the Closing reflect the results of the combined entity’s operations. All issued and outstanding shares of Legacy Spectral Common Stock and warrants, stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) of Legacy Spectral and the per share amounts contained in the consolidated financial statements for the periods presented prior to the Closing have been retroactively restated to reflect the Exchange Ratio (as defined in Note 1). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Spectral MD Holdings LLC, Spectral MD Inc., Spectral MD UK Limited (“Spectral MD UK”), and Spectral DeepView Limited. Significant inter -company Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, revenue recognition, warrant liabilities, stock -based -of-use Segments Operating segments are defined as components of an enterprise for which separate and discrete information is available for evaluation by the chief operating decision -maker Cash The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. All cash is held in US, UK, & Ireland financial institutions. Accounts Receivable, Net and Unbilled Revenue Accounts receivable represent amounts due from US government agencies pursuant to research and development contracts associated with the Company’s DeepView ® The Company evaluates the collectability of its receivables based on a variety of factors, including the length of time the receivables are past due, the financial health of its customers and historical experience. Based upon the review of these factors, the Company recorded no allowance for doubtful accounts as of December 31, 2023 and December 31, 2022. Certain third -party Comprehensive Loss Comprehensive loss includes net loss, as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders. Concentrations of Credit Risk Financial instruments which potentially subject the Company to credit risk consist principally of cash and accounts receivable. Primarily all cash is held in US financial institutions which, at times, exceed federally insured limits. The Company has not recognized any losses from credit risks on such accounts. The Company believes it is not exposed to significant credit risk on cash. Additional credit risk is related to the Company’s concentration of receivables. As of December 31, 2023 and December 31, 2022, receivables were concentrated from one customer (which is a US. government agency) representing 92% and 96% of total net receivables, respectively. No allowance for doubtful accounts were recorded as of December 31, 2023 and December 31, 2022. One customer (which is a U.S. government agency) accounted for 95% for the year ended December 31, 2023 and 98% for the year ended December 31, 2022 of the recognized research and development revenue. Inventory Inventory is comprised of finished goods, purchased from a third -party -downs Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Assets and liabilities that are measured at fair value are reported using a three -level Level 1 Unadjusted quoted prices in active markets that are assessable at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Foreign Currency The reporting currency for the consolidated financial statements of the Company is the US dollar. The functional currency of the Company and its wholly owned subsidiaries Spectral MD Holdings LLC and Spectral MD, Inc. is the US dollar. The functional currency of Spectral MD UK is its local currency, the British pound. The functional currency of Spectral DeepView Ltd. is its local currency, the Euro. The assets and liabilities of Spectral MD UK and Spectral DeepView Ltd, are translated into US. dollars at exchange rates in effect at the end of each reporting period, and the revenues and expenses are translated at average exchange rates in effect during the applicable period. Translation adjustments are included in accumulated other comprehensive income as a component of stockholders’ equity. As of December 31, 2023 and December 31, 2022, the Company’s translation adjustments are not material. Monetary assets and liabilities denominated in currencies other than the functional currency are translated at exchange rates in effect at the balance sheet date. Resulting unrealized gains and losses are included in other income (expense), net in the consolidated statements of operations. For the year ended December 31, 2023 the Company recorded approximately $24,000 of net foreign exchange transaction losses. For the year ended December 31, 2022, the Company recorded approximately $0.2 million of net foreign exchange transaction losses primarily related to the Company’s bank account denominated in British Pounds and accounts payable denominated in British Pounds. Property and Equipment, Net Property and equipment, net is recorded at cost less accumulated depreciation. Depreciation expense is recorded using the straight -line Estimated Useful Life Computer equipment 3 years Manufacturing equipment 5 years Furniture and equipment 5 years Laboratory equipment 5 years Leasehold improvements Shorter of remaining lease term or useful life Purchased assets that are not yet in service are recorded to construction -in-process Impairment of Long-Lived Assets Long -lived -lived -lived -lived -party Leases Under lease guidance, arrangements meeting the definition of a lease are classified as operating or financing leases. Operating leases are recorded in the consolidated balance sheets as both a right -of-use -of-use -of-use -line -of-use -lease -term -of-use During the years ended December 31, 2023 and 2022, the Company did not have any financing leases. Warrant Liabilities On September 11, 2023, in conjunction with the Business Combination, the Company assumed the Public Warrants which have an exercise price of $11.50 per share, are exercisable 30 days after the Business Combination and expire five years after the Business Combination or upon redemption. The Company may redeem the Public Warrants if the Company’s common stock equals or exceeds $18.00 per share for 20 trading days within a 30 -trading In September 2021, Legacy Spectral issued 73,978 warrants, with a strike price of $7.75 and a five -year The Company accounts for its Public Warrants and the Angel Warrants as derivative liabilities. Accordingly, the Company recognizes the instruments as liabilities at fair value, determined using the closing price of the observable market quote in an active market (the NASDAQ) for the Public Warrants and the Black -Scholes -pricing -measurement Research and Development Revenue The Company recognizes revenue when the Company’s customers obtain control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services by analyzing the following five steps: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. The Company generates research and development revenue, primarily from the contracts with BARDA and MTEC. Each contract for BARDA and MTEC has a single performance obligation. The contracts with BARDA are cost -plus-fee The MTEC Agreement provides for installment payments after the completion of milestone events. The installment payments are considered variable consideration as the entitlement depends on successful completion of research. However, the payments are not constrained from inclusion in the transaction price as it not probable that a significant reversal of cumulative revenue will be reversed when the underlying uncertainty is resolved. Revenue for the MTEC Agreement is recognized over time based upon the cost -to-cost -date The Company elected the practical expedient not to adjust the transaction price for the effects of a significant financing component as the period between performance (satisfaction of a performance obligation) and payment is one year or less. Payments from customers are generally received within 30 days of when the invoice is sent. Research and Development Expense The Company expenses research and development costs as incurred. These expenses include salaries for research and development personnel, consulting fees, product development, pre -clinical Stock-Based Compensation The Company accounts for all stock -based -employees -Scholes -based -based -based -line -date Income Taxes The Company records its deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company has no uncertain tax positions as of December 31, 2023 and December 31, 2022 that qualify for either recognition or disclosure in the consolidated financial statements under this guidance. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and administrative expenses in the consolidated statements of operations. The Company did not have any interest and penalties during the years ended December 31, 2023 and 2022 and did not have any interest or penalties accrued as of December 31, 2023. Net Loss per Share of Common Stock Basic net loss per share of common stock is computed by dividing the net loss attributable to common stockholders by the weighted -average options and warrants. Securities having an anti -dilutive -classified Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes foreign currency translation adjustments. For the purposes of comprehensive income (loss) disclosures, the Company does not record tax provisions or benefits for the net changes in the foreign currency translation adjustment, as it intends to indefinitely reinvest undistributed earnings of its foreign subsidiaries. Accumulated other comprehensive income (loss) is reported as a component of stockholders’ equity. Recently Adopted Accounting Standards In September 2016, the FASB issued ASU No. 2016 -13 -19 -10 -than-temporary -for-sale -useful In February 2016, the FASB issued ASU No. 2016 -02 -02 -02 -02 -02 -of-use -02 Recently Issued Accounting Standards In August 2020, the FASB issued ASU No. 2020 -06 -20 -40 In June 2022, the FASB issued ASU 2022 -03 -03 beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the consolidated financial statements. In October 2023, the FASB issued ASU 2023 -06 -06 -X -K -06 In November 2023, the FASB issued ASU 2023 -07 -07 -07 In December 2023, the FASB issued ASU 2023 -09 -09 -09

Recapitalization

Recapitalization	12 Months Ended
	Dec. 31, 2023
Recapitalization [Abstract]
RECAPITALIZATION	3. RECAPITALIZATION As discussed in Note 1, on September 11, 2023, the Company consummated the Business Combination, with Legacy Spectral surviving the merger as a wholly -owned On the date of the Business Combination, the Company recorded net liabilities of $2.4 million, with an offsetting decrease to additional paid -in Cash $ 660 Other current assets 127 Accounts payable (860 ) Accrued expenses (277 ) Warrant liabilities (2,024 ) Net liabilities assumed in exchange for common stock (2,374 ) Less: Cash (660 ) Non-cash net liabilities assumed in exchange for common stock $ (3,034 ) Upon the Closing, the Company issued 33,333 The Company recorded transaction costs, consisting of legal, accounting and other professional services incurred by Legacy Spectral related to the Business Combination, of $7.6 million (the “Transaction Costs”), in other income (expense) in the consolidated statement of operations for the year ended December 31, 2023 and no costs were capitalized. As of December 31, 2023, $0.8 million of the Transaction Costs are included accounts payable and $0.5 million are included in accrued expenses. The Company paid $1.9 million of Transaction Costs in cash and issued 966,667 Prior to the Business Combination the Company incurred $0.7 million of transaction costs, included in other income (expense) in the consolidated statement of operations for the year ended December 31, 2023, for professional services incurred by Legacy Spectral that were related to potential business combinations that did not occur.

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 2023
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	4. FAIR VALUE MEASUREMENTS The following table presents information about the Company’s financial liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022, by level within the fair value hierarchy (in thousands): Fair value measured as of December 31, 2023 Fair value at Quoted prices Significant other Significant Warrant liabilities $ 1,818 $ 1,771 $ — $ 47 Fair value measured as of December 31, 2022 Fair value at Quoted prices Significant other Significant Warrant liabilities $ 129 $ — $ — $ 129 There were no transfers between Level Fair values of cash, accounts receivable, accounts payable, accrued expenses and short -term -term The following table presents changes in Level 3 liabilities measured at fair value for the years ended December 31, 2023 and 2022 (in thousands): Balance – January 1, 2022 $ 186 Change in fair value (57 ) Balance – January 1, 2023 $ 129 Change in fair value (82 ) Balance – December 31, 2023 $ 47 Both observable and unobservable inputs were used to determine the fair value of warrants that the Company has classified within the Level 3 category. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long- dated volatilities) inputs. The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement: December 31, December 31, Strike price (per share) $ 7.32 $ 7.32 Contractual term (years) 3.5 4.5 Volatility (annual) 71.2 % 72.6 % Risk-free rate 4.0 % 4.0 % Dividend yield (per share) 0.0 % 0.0 %

Research and Development Revenu

Research and Development Revenue	12 Months Ended
	Dec. 31, 2023
Research and Development Revenue [Abstract]
RESEARCH AND DEVELOPMENT REVENUE	5. RESEARCH AND DEVELOPMENT REVENUE For the years ended December 31, 2023 and 2022, the Company’s revenues disaggregated by the major sources was as follows (in thousands): Year Ended 2023 2022 BARDA $ 17,027 $ 24,827 Other U.S governmental authorities 1,029 541 Total revenue $ 18,056 $ 25,368

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2023
Accrued Expenses [Abstract]
ACCRUED EXPENSES	6. ACCRUED EXPENSES Accrued expenses consist of the following as of December 31, 2023 and December 31, 2022 (in thousands): December 31, December 31, Salary and wages $ 1,910 $ 1,135 Operating expenses 1,563 736 Benefits 720 650 Taxes 107 110 Total accrued expenses $ 4,300 $ 2,631

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2023
Notes Payable [Abstract]
NOTES PAYABLE	7. NOTES PAYABLE Insurance Note The Company entered into financing arrangements for a portion of its Directors and Officers (“D&O”) insurance premiums, as follows (in thousands): Amount Interest Principal Repayments Outstanding Balance Year Ended December 31, December 31, December 31, 2023 2022 New 2023 Insurance Note $ 632 8.6 % $ 195 $ — $ 436 $ — 2023 Insurance Note 151 9.7 % 113 — — — 2022 Insurance Note 376 6.7 % 175 201 — 175 2021 Insurance Note 474 5.7 % — 160 — — $ 483 $ 361 $ 436 $ 175 In September 2023, in connection with the Business Combination, the Company cancelled the 2023 Insurance Note and replaced it with the New 2023 Insurance Note. Accordingly, the Company reversed the unpaid balance of approximately $38,000 from notes payable and prepaid expenses. The Company determined that the carrying amounts of all of the insurance notes approximate fair value due to the short -term PPP Loan On April 13, 2020, the Company entered into a promissory note with JPMorgan Chase Bank, N.A., as lender, pursuant to the Paycheck Protection Program (“PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for $0.7 million (the “PPP Loan”). The PPP Loan matured on April 13, 2022 and bore interest at 1% per annum. Beginning on September 13, 2021, the Company was required to make equal monthly payments of principal and interest until the loan maturity on April 13, 2022. The PPP Loan was subject to customary terms for payment defaults and breaches of representations and warranties. The Company did not request the PPP Loan to be forgiven. During the year ended December 31, 2022, the Company repaid the remaining $0.4 million of principal and interest for the PPP Loan. There was no outstanding balance for the PPP Loan as of December 31, 2022.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2023
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Legal Matters The Company is not a party to any material legal proceedings or pending claims. The Company is aware of a material threatened claim that it believes is without merit. From time to time, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities, none of which we believe are material or would be expected to have, individually or in the aggregate, a material adverse effect on our business, financial condition, cash flows or results of operations.

Leases

Leases	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
LEASES	9. LEASES The Company adopted ASC 842 on January 1, 2022 using the modified retrospective approach with no restatement of prior periods or cumulative adjustment to accumulated deficit. The reported results for 2023 and 2022 reflect the application of ASC 842. Upon adoption, the Company elected the package of transition practical expedients, which allowed the Company to carry forward prior conclusions related to whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases, and initial direct costs for existing leases. The Company also made an accounting policy election not to recognize leases with an initial term of 12 months or less within its consolidated balance sheets and to recognize those lease payments on a straight -line The Company leases office space for its principal office in Dallas, Texas, which was extended during 2022 to expire in May 2024. This lease was extended again in 2023 to expire in December 2024. During 2022, the Company entered into a lease for office space in the United Kingdom under a lease that expired in May 2023. During 2023, the Company entered into a lease for office space in the United Kingdom for annual payments of $0.1 million under a lease that expires in March 2024. The lease has been excluded from the tables below as the term is twelve The following table summarizes quantitative information about the Company’s operating leases for the years ended December 31, 2023 and 2022 (dollars in thousands): Year Ended 2023 2022 Operating cash flows used in operating leases $ 744 $ 594 Right-of-use assets exchanged for operating lease liabilities $ 483 $ 1,565 Weighted average remaining lease term (in years) 1.0 1.5 Weighted average discount rate 8.5 % 8.5 % The following table provides the components of the Company’s lease cost included in general and administrative expense in the consolidated statement of operations (in thousands): Year Ended 2023 2022 Operating leases Operating lease cost $ 802 $ 590 Variable lease cost 357 126 Operating lease expense 1,159 716 Short-term lease rent expense 110 — Total rent expense $ 1,269 $ 716 Variable lease cost is primarily attributable to amounts paid to lessors for utility charges, parking, and property taxes under an office space lease. As of December 31, 2023, future minimum payments under the non -cancelable Year ending December 31, 2024 $ 894 Total 894 Less: imputed interest (41 ) Operating lease liabilities $ 853

Stockholders_ Equity

Stockholders’ Equity	12 Months Ended
	Dec. 31, 2023
Stockholders’ Equity [Abstract]
STOCKHOLDERS’ EQUITY	10. STOCKHOLDERS’ EQUITY In conjunction with the Closing, the Company’s certificate of incorporation was amended and restated to authorize the issuance of 80,000,000

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
	Dec. 31, 2023
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	11. STOCK-BASED COMPENSATION Each option and warrant to purchase common stock of Legacy Spectral was converted into an option and warrant, respectively, to purchase Spectral AI’s common stock based on the Exchange Ratio, with corresponding adjustments to the exercise price. Accordingly, the options and warrants to purchase 46,592,862 and 762,712, respectively, shares of the common stock of Legacy Spectral were converted into options and warrants to purchase 4,519,191 and 73,978, respectively, shares of Spectral AI’s common stock. Legacy Spectral’s 600,000 RSUs were converted into 58,197 Spectral AI RSUs, based on the Exchange Ratio. 2018 Long Term Incentive Plan On July 24, 2018, Legacy Spectral’s Board of Directors adopted the 2018 Long Term Incentive Plan (the “2018 Plan”) which permits granting of incentive stock options (which must meet all statutory requirements), non -qualified -based -based 2022 Long Term Incentive Plan On September 27, 2022, Legacy Spectral’s stockholders approved the adoption of the 2022 Long Term Incentive Plan (the “2022 Plan”) which permits granting of incentive stock options (they must meet all statutory requirements), non -qualified -based -based Restricted Stock Awards The RSAs generally vest over four years. A summary of RSA activities for the year ended December 31, 2023 are presented below: Number of Weighted Nonvested as of January 1, 2023 30,318 $ 1.07 Vested (30,318 ) $ 1.07 Nonvested as of December 31, 2023 — $ — Restricted Stock Units The RSUs generally vest over three years. A summary of RSU activities for the year ended December 31, 2023 are presented below: Number of Weighted Nonvested as of January 1, 2023 — $ — Granted 58,197 $ 4.65 Nonvested as of December 31, 2023 58,197 $ 4.65 Stock Options The fair value of each employee and non -employee -Scholes -pricing -specific -employees -free The Company’s stock options generally vest ratably annually over 3 years and have a contractual term of 10 years. The weighted -average Year Ended Year Ended Fair value of common stock $ 4.57 $ 4.52 Expected term (years) 6.0 5.9 Expected volatility (annual) 72 % 68 % Risk-free interest rate 3.6 % 2.7 % Dividend yield (per share) 0 % 0 % A summary of stock options activity for the year ended December 31, 2023 is presented below: Stock Weighted Weighted Aggregate Outstanding at January 1, 2023 3,503,790 $ 2.06 7.3 $ 6,831 Options granted 253,250 $ 4.57 Options forfeited (31,846 ) $ 6.30 Options cancelled (20,368 ) $ 2.23 Options exercised (126,247 ) $ 2.13 Outstanding as of December 31, 2023 3,578,579 $ 2.20 6.5 $ 8,041 Options vested and exercisable as of December 31, 2023 2,898,508 $ 1.76 6.1 $ 6,636 The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the common stock as of the respective date. The weighted -average The Company recorded stock -based As of December 31, 2023, there was approximately $1.2 million and $0.2 million of unrecognized stock -based During the year ended December 31, 2018, the Company granted of 973,803 stock options to investors (the “Investor Options”) that were approved by the Board of Directors outside of the 2018 Plan, of which 939,024 Investor Options were outstanding as of December 31, 2022. During the year ended December 31, 2023, 34,779 of the Investor Options were exercised and the remaining 904,245 Investor Options expired in November 2023. The Investor Options had an exercise price of $2.06 per share. As of December 31, 2023, there is no unrecognized stock -based As of December 31, 2023, the stock options issued to an investor to purchase 20,368 shares of the Company’s common stock (the “Options”) at a price of $1.96 per share expired. The Options had a grant date fair value of $2.17 per share and were equity -classified -based On December 26, 2023, the Company entered into the Purchase Agreement and related Registration Rights Agreement with B. Riley Principal Capital II. Upon the terms and subject to the satisfaction of the conditions contained in the Purchase Agreement, the Company has the right to sell to B. Riley Principal Capital II up to $10.0 million of shares of Common Stock. In accordance with the Company’s obligations under the Registration Rights Agreement, the Company filed the registration statement to register under the Securities Act, the offer and resale by B. Riley Principal Capital II of up to 3,249,360 On March 20, 2024, the Company entered into the SEPA and related Registration Rights Agreement with Yorkville. Upon the terms and subject to the conditions contained in the SEPA, the Company has the right to sell to Yorkville up to $30.0 million of shares of Common Stock. In accordance with the Company’s obligations under the Registration Rights Agreement, the Company is required to file a registration statement to register under the Securities Act, the offer and resale by Yorkville of up to 6,369,937

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2023
Income Taxes [Abstract]
INCOME TAXES	12. INCOME TAXES Effective Tax Rate The overall effective tax rate (“ETR”) for the Company, as calculated under ASC 740 guidance for the tax period ended December 31, 2023, and 2022 is (0.05%) and (3.80%), respectively. The following table reconciles the federal statutory income rate to the Company’s effective income tax rate: 2023 2022 Federal income tax rate 21.00 % 21.00 % State income tax benefit (0.06 )% (2.80 )% Permanent items (9.27 )% (7.30 )% Return to provision adjustments 0.02 % (2.50 )% Other 0.08 % — % Change in valuation allowance (11.82 )% (12.20 )% Effective income tax rate (0.05 )% (3.80 )% The above schedule beaks out the key components of the ETR. The main drivers between the federal statutory rate of 21.00% and ETR of (0.06%) are permanent adjustments and change in valuation allowance. Components of Income Tax Expense The components of income tax expense for the periods ended December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Current US Federal $ (5 ) $ 5 US State 16 101 Total current provision 11 106 Total provision for income taxes $ 11 $ 106 The company is in a taxable loss position for the year ending December 31, 2023. The current tax expense results from the gross margin tax for the Company’s state filing in Texas. Deferred Income Taxes The main components of deferred tax assets/(liabilities) for the periods ended December 31, 2023 and 2022, are as follows (in thousands): 2023 2022 Deferred income tax assets: Net operating loss carryforwards $ 2,403 $ 429 Capitalized research expenses 717 420 Intangible assets 437 — Stock-based compensation 278 262 Lease liabilities 179 216 Tax credits 44 10 Other 438 269 Total deferred income tax assets 4,496 1,606 Valuation allowance (4,333 ) (1,388 ) Net deferred tax assets $ 163 $ 218 Deferred income tax liabilities: Right-of-use assets (163 ) (212 ) Other — (6 ) Total deferred income tax liabilities $ (163 ) $ (218 ) Net deferred income tax assets $ — $ — Valuation Allowance Considerations A valuation allowance against a deferred tax asset must be established when it is “more likely than not” that all, or a portion of, deferred tax assets will not be realized. A review of all available positive and negative evidence needs to be considered, including the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. After consideration of all the information available, management believes that uncertainty exists with respect to future realization of its deferred tax assets and has, therefore, established a full valuation allowance as of December 31, 2023 and 2022. The net change in valuation allowance for the years ended December 31, 2023 and 2022 was an increase of $2.9 million and $0.3 million, respectively. Section 174 Capitalization The Tax Cuts and Jobs Act of 2017 (“TCJA”) made a significant change to Section 174 that went into effect for taxable years beginning after December 31, 2021. The change eliminated the ability to currently deduct R&D expenses. Instead, taxpayers must now capitalize and amortize these costs. Capitalized Section 174 costs must be amortized over 5 years (15 years for expenditures attributable to foreign research) beginning with the midpoint of the tax year in which the expenditures are paid or incurred. The Company had an estimated $3.0 million and $1.7 million of domestic R&D expenses for the tax years ending December 31, 2023 and 2022, respectively. The domestic R&D expenses will be capitalized and amortized over a five -year Net Operating Losses As of December 31, 2023 and 2022, the Company had available federal net operating loss carryforwards (“NOLs”) of $11.0 million and $3.1 million, respectively, which are available to offset future federal taxable income. Under the TCJA, all NOLs incurred after December 31, 2017 are carried forward indefinitely for federal tax purposes. Utilization of net operating losses and credits may be subject to substantial annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses before utilization. Section 382 of the Internal Revenue Code limits the utilization of U.S. NOL carryforwards following a change of control. The Company has not performed an analysis of whether a change of control defined under Section 382 may have occurred. Upon performing an analysis of whether an ownership change has occurred, any future NOL deductions may be limited. However, the NOL carryforward discussed above does not expire. The Company is subject to taxation in the U.S and in various state, local and foreign jurisdictions. The Company’s tax returns for years 2020 through present are open to tax examinations by U.S. Federal, state, local, and foreign tax authorities; however, carryforward attributes that were generated prior to January 1, 2018, remain subject to adjustment upon examination if they either have been utilized or will be utilized in a future period.

Net Loss Per Common Share

Net Loss Per Common Share	12 Months Ended
	Dec. 31, 2023
Net Loss Per Common Share [Abstract]
NET LOSS PER COMMON SHARE	13. NET LOSS PER COMMON SHARE Basic and diluted net loss per common share attributable to common stockholders are the same for the years ended December 31, 2023 and 2022, since the inclusion of all potential shares of common stock outstanding would have been anti -dilutive The table below summarizes potentially dilutive securities that were excluded from the computation of net loss per common share as of the periods presented because including them would be anti -dilutive 2023 2022 Common stock options 3,578,579 4,442,770 Common stock warrants 8,507,311 73,978 Unvested restricted stock units 58,197 — Unvested restricted stock — 30,318 Potentially dilutive securities 12,144,087 4,547,066

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2023
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	14. RELATED PARTY TRANSACTIONS For the years ended December 31, 2023 and 2022, the Company did not have any transactions with related parties.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2023
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	15. SUBSEQUENT EVENTS Proceeds from sales of Common Stock through B. Riley Committed Equity Facility Through March 25, 2024, the Company utilized the B Riley Committed Equity Facility to sell 1,187,398 Proceeds from New Government Contract On March 12, 2024, the Company entered into a new contract with the Defense Health Agency that provides significant additional support for the development of the handheld version of the Company’s Deepview System. The contract was valued at approximately $500,000 and will build on the previous awards from other governmental agencies focused on advancing the handheld version of the Deepview System. Spectral IP, Inc. On March 7, 2024, the Company formed a new wholly -owned -year Yorkville Standby Equity Purchase Agreement On March 20, 2024, the Company entered into the SEPA with Yorkville pursuant to which the Company has the right to sell to Yorkville up to $30.0 million of its shares of Common Stock, subject to certain limitations and conditions set forth in the SEPA, from time to time during the term of the SEPA. Sales of the shares of Common Stock to Yorkville under the SEPA, and the timing of any such sales, are at the Company’s option, and the Company is under no obligation to sell any shares of Common Stock to Yorkville under the SEPA except in connection with notices that may be submitted by Yorkville, as described in the SEPA. In connection with the SEPA, and subject to the conditions set forth therein, Yorkville has agreed to advance to the Company in the form of Convertible Notes an aggregate principal amount of up to $12.5 million (the “Pre -Paid -Paid -Paid -Advance -Paid -Advance -Paid -Paid -Paid -Paid

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	12 Months Ended
	Dec. 31, 2023
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) or an Accounting Standards Update (“ASU”). The Business Combination was accounted for as a reverse recapitalization in accordance with GAAP. Legacy Spectral was determined as the accounting acquirer and the Company as the acquired company for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination is treated as the equivalent of a capital transaction in which Legacy Spectral issued stock for the net assets of the Company. Upon the Closing, the net assets of the Company are stated at fair value, with no goodwill or other intangible assets recorded. See Note 3. Legacy Spectral was determined to be the accounting acquiror based on evaluation of the following facts and circumstances: (i) (ii) (iii) (iv) (v) All historical financial information presented in the consolidated financial statements represents the accounts of Legacy Spectral at their historical values as if Legacy Spectral is the predecessor to the Company. The consolidated financial statements following the Closing reflect the results of the combined entity’s operations. All issued and outstanding shares of Legacy Spectral Common Stock and warrants, stock options, restricted stock units (“RSUs”) and restricted stock awards (“RSAs”) of Legacy Spectral and the per share amounts contained in the consolidated financial statements for the periods presented prior to the Closing have been retroactively restated to reflect the Exchange Ratio (as defined in Note 1).
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Spectral MD Holdings LLC, Spectral MD Inc., Spectral MD UK Limited (“Spectral MD UK”), and Spectral DeepView Limited. Significant inter -company
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, revenue recognition, warrant liabilities, stock -based -of-use
Segments	Segments Operating segments are defined as components of an enterprise for which separate and discrete information is available for evaluation by the chief operating decision -maker
Cash	Cash The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. All cash is held in US, UK, & Ireland financial institutions.
Accounts Receivable, Net and Unbilled Revenue	Accounts Receivable, Net and Unbilled Revenue Accounts receivable represent amounts due from US government agencies pursuant to research and development contracts associated with the Company’s DeepView ® The Company evaluates the collectability of its receivables based on a variety of factors, including the length of time the receivables are past due, the financial health of its customers and historical experience. Based upon the review of these factors, the Company recorded no allowance for doubtful accounts as of December 31, 2023 and December 31, 2022.
Comprehensive Loss	Comprehensive Loss Comprehensive loss includes net loss, as well as other changes in stockholders’ equity (deficit) that result from transactions and economic events other than those with stockholders.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments which potentially subject the Company to credit risk consist principally of cash and accounts receivable. Primarily all cash is held in US financial institutions which, at times, exceed federally insured limits. The Company has not recognized any losses from credit risks on such accounts. The Company believes it is not exposed to significant credit risk on cash. Additional credit risk is related to the Company’s concentration of receivables. As of December 31, 2023 and December 31, 2022, receivables were concentrated from one customer (which is a US. government agency) representing 92% and 96% of total net receivables, respectively. No allowance for doubtful accounts were recorded as of December 31, 2023 and December 31, 2022. One customer (which is a U.S. government agency) accounted for 95% for the year ended December 31, 2023 and 98% for the year ended December 31, 2022 of the recognized research and development revenue.
Inventory	Inventory Inventory is comprised of finished goods, purchased from a third -party -downs
Fair Value	Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Assets and liabilities that are measured at fair value are reported using a three -level Level 1 Unadjusted quoted prices in active markets that are assessable at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
Foreign Currency	Foreign Currency The reporting currency for the consolidated financial statements of the Company is the US dollar. The functional currency of the Company and its wholly owned subsidiaries Spectral MD Holdings LLC and Spectral MD, Inc. is the US dollar. The functional currency of Spectral MD UK is its local currency, the British pound. The functional currency of Spectral DeepView Ltd. is its local currency, the Euro. The assets and liabilities of Spectral MD UK and Spectral DeepView Ltd, are translated into US. dollars at exchange rates in effect at the end of each reporting period, and the revenues and expenses are translated at average exchange rates in effect during the applicable period. Translation adjustments are included in accumulated other comprehensive income as a component of stockholders’ equity. As of December 31, 2023 and December 31, 2022, the Company’s translation adjustments are not material. Monetary assets and liabilities denominated in currencies other than the functional currency are translated at exchange rates in effect at the balance sheet date. Resulting unrealized gains and losses are included in other income (expense), net in the consolidated statements of operations. For the year ended December 31, 2023 the Company recorded approximately $24,000 of net foreign exchange transaction losses. For the year ended December 31, 2022, the Company recorded approximately $0.2 million of net foreign exchange transaction losses primarily related to the Company’s bank account denominated in British Pounds and accounts payable denominated in British Pounds.
Property and Equipment, Net	Property and Equipment, Net Property and equipment, net is recorded at cost less accumulated depreciation. Depreciation expense is recorded using the straight -line Estimated Useful Life Computer equipment 3 years Manufacturing equipment 5 years Furniture and equipment 5 years Laboratory equipment 5 years Leasehold improvements Shorter of remaining lease term or useful life Purchased assets that are not yet in service are recorded to construction -in-process
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long -lived -lived -lived -lived -party
Leases	Leases Under lease guidance, arrangements meeting the definition of a lease are classified as operating or financing leases. Operating leases are recorded in the consolidated balance sheets as both a right -of-use -of-use -of-use -line -of-use -lease -term -of-use During the years ended December 31, 2023 and 2022, the Company did not have any financing leases.
Warrant Liabilities	Warrant Liabilities On September 11, 2023, in conjunction with the Business Combination, the Company assumed the Public Warrants which have an exercise price of $11.50 per share, are exercisable 30 days after the Business Combination and expire five years after the Business Combination or upon redemption. The Company may redeem the Public Warrants if the Company’s common stock equals or exceeds $18.00 per share for 20 trading days within a 30 -trading In September 2021, Legacy Spectral issued 73,978 warrants, with a strike price of $7.75 and a five -year The Company accounts for its Public Warrants and the Angel Warrants as derivative liabilities. Accordingly, the Company recognizes the instruments as liabilities at fair value, determined using the closing price of the observable market quote in an active market (the NASDAQ) for the Public Warrants and the Black -Scholes -pricing -measurement
Research and Development Revenue	Research and Development Revenue The Company recognizes revenue when the Company’s customers obtain control of promised goods or services, in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services by analyzing the following five steps: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the Company satisfies a performance obligation. The Company generates research and development revenue, primarily from the contracts with BARDA and MTEC. Each contract for BARDA and MTEC has a single performance obligation. The contracts with BARDA are cost -plus-fee The MTEC Agreement provides for installment payments after the completion of milestone events. The installment payments are considered variable consideration as the entitlement depends on successful completion of research. However, the payments are not constrained from inclusion in the transaction price as it not probable that a significant reversal of cumulative revenue will be reversed when the underlying uncertainty is resolved. Revenue for the MTEC Agreement is recognized over time based upon the cost -to-cost -date The Company elected the practical expedient not to adjust the transaction price for the effects of a significant financing component as the period between performance (satisfaction of a performance obligation) and payment is one year or less. Payments from customers are generally received within 30 days of when the invoice is sent.
Research and Development Expense	Research and Development Expense The Company expenses research and development costs as incurred. These expenses include salaries for research and development personnel, consulting fees, product development, pre -clinical
Stock-Based Compensation	Stock-Based Compensation The Company accounts for all stock -based -employees -Scholes -based -based -based -line -date
Income Taxes	Income Taxes The Company records its deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to the extent that the benefit would more likely than not be realized assuming examination by the taxing authority. The determination as to whether the tax benefit will more likely than not be realized is based upon the technical merits of the tax position as well as consideration of the available facts and circumstances. The Company has no uncertain tax positions as of December 31, 2023 and December 31, 2022 that qualify for either recognition or disclosure in the consolidated financial statements under this guidance. The Company’s policy is to classify assessments, if any, for tax related interest as interest expense and penalties as general and administrative expenses in the consolidated statements of operations. The Company did not have any interest and penalties during the years ended December 31, 2023 and 2022 and did not have any interest or penalties accrued as of December 31, 2023.
Net Loss per Share of Common Stock	Net Loss per Share of Common Stock Basic net loss per share of common stock is computed by dividing the net loss attributable to common stockholders by the weighted -average options and warrants. Securities having an anti -dilutive -classified
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss), which includes foreign currency translation adjustments. For the purposes of comprehensive income (loss) disclosures, the Company does not record tax provisions or benefits for the net changes in the foreign currency translation adjustment, as it intends to indefinitely reinvest undistributed earnings of its foreign subsidiaries. Accumulated other comprehensive income (loss) is reported as a component of stockholders’ equity.
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In September 2016, the FASB issued ASU No. 2016 -13 -19 -10 -than-temporary -for-sale -useful In February 2016, the FASB issued ASU No. 2016 -02 -02 -02 -02 -02 -of-use -02
Recently Issued Accounting Standards	Recently Issued Accounting Standards In August 2020, the FASB issued ASU No. 2020 -06 -20 -40 In June 2022, the FASB issued ASU 2022 -03 -03 beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this pronouncement on the consolidated financial statements. In October 2023, the FASB issued ASU 2023 -06 -06 -X -K -06 In November 2023, the FASB issued ASU 2023 -07 -07 -07 In December 2023, the FASB issued ASU 2023 -09 -09 -09

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2023
Summary of Significant Accounting Policies [Abstract]
Schedule of Property and Equipment	Property and equipment, net is recorded at cost less accumulated depreciation. Depreciation expense is recorded using the straight -line Estimated Useful Life Computer equipment 3 years Manufacturing equipment 5 years Furniture and equipment 5 years Laboratory equipment 5 years Leasehold improvements Shorter of remaining lease term or useful life

Recapitalization (Tables)

Recapitalization (Tables)	12 Months Ended
	Dec. 31, 2023
Recapitalization [Abstract]
Schedule of Recapitalization	The following table provides the elements of the Business Combination and reconciles these elements to the consolidated statements of stockholders’ equity and the consolidated statements of cash flows for the year ended December 31, 2023: Cash $ 660 Other current assets 127 Accounts payable (860 ) Accrued expenses (277 ) Warrant liabilities (2,024 ) Net liabilities assumed in exchange for common stock (2,374 ) Less: Cash (660 ) Non-cash net liabilities assumed in exchange for common stock $ (3,034 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2023
Fair Value Measurements [Abstract]
Schedule of Financial Liabilities that are Measured at Fair Value on a Recurring Basis	The following table presents information about the Company’s financial liabilities that are measured at fair value on a recurring basis as of December 31, 2023 and December 31, 2022, by level within the fair value hierarchy (in thousands): Fair value measured as of December 31, 2023 Fair value at Quoted prices Significant other Significant Warrant liabilities $ 1,818 $ 1,771 $ — $ 47 Fair value measured as of December 31, 2022 Fair value at Quoted prices Significant other Significant Warrant liabilities $ 129 $ — $ — $ 129
Schedule of Changes in Level 3 Liabilities Measured at Fair Value	The following table presents changes in Level 3 liabilities measured at fair value for the years ended December 31, 2023 and 2022 (in thousands): Balance – January 1, 2022 $ 186 Change in fair value (57 ) Balance – January 1, 2023 $ 129 Change in fair value (82 ) Balance – December 31, 2023 $ 47
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs	The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement: December 31, December 31, Strike price (per share) $ 7.32 $ 7.32 Contractual term (years) 3.5 4.5 Volatility (annual) 71.2 % 72.6 % Risk-free rate 4.0 % 4.0 % Dividend yield (per share) 0.0 % 0.0 %

Research and Development Reve_2

Research and Development Revenue (Tables)	12 Months Ended
	Dec. 31, 2023
Research and Development Revenue [Abstract]
Schedule of Research and Development Revenue	For the years ended December 31, 2023 and 2022, the Company’s revenues disaggregated by the major sources was as follows (in thousands): Year Ended 2023 2022 BARDA $ 17,027 $ 24,827 Other U.S governmental authorities 1,029 541 Total revenue $ 18,056 $ 25,368

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2023
Accrued Expenses [Abstract]
Schedule of Accrued Expenses	Accrued expenses consist of the following as of December 31, 2023 and December 31, 2022 (in thousands): December 31, December 31, Salary and wages $ 1,910 $ 1,135 Operating expenses 1,563 736 Benefits 720 650 Taxes 107 110 Total accrued expenses $ 4,300 $ 2,631

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2023
Notes Payable [Abstract]
Schedule of Financing Arrangements for a Portion of Its Insurance Premiums	The Company entered into financing arrangements for a portion of its Directors and Officers (“D&O”) insurance premiums, as follows (in thousands): Amount Interest Principal Repayments Outstanding Balance Year Ended December 31, December 31, December 31, 2023 2022 New 2023 Insurance Note $ 632 8.6 % $ 195 $ — $ 436 $ — 2023 Insurance Note 151 9.7 % 113 — — — 2022 Insurance Note 376 6.7 % 175 201 — 175 2021 Insurance Note 474 5.7 % — 160 — — $ 483 $ 361 $ 436 $ 175

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2023
Leases [Abstract]
Schedule of Operating Lease	The following table summarizes quantitative information about the Company’s operating leases for the years ended December 31, 2023 and 2022 (dollars in thousands): Year Ended 2023 2022 Operating cash flows used in operating leases $ 744 $ 594 Right-of-use assets exchanged for operating lease liabilities $ 483 $ 1,565 Weighted average remaining lease term (in years) 1.0 1.5 Weighted average discount rate 8.5 % 8.5 %
Schedule of General and Administrative Expense	The following table provides the components of the Company’s lease cost included in general and administrative expense in the consolidated statement of operations (in thousands): Year Ended 2023 2022 Operating leases Operating lease cost $ 802 $ 590 Variable lease cost 357 126 Operating lease expense 1,159 716 Short-term lease rent expense 110 — Total rent expense $ 1,269 $ 716
Schedule of Non-Cancelable Operating Lease	As of December 31, 2023, future minimum payments under the non -cancelable Year ending December 31, 2024 $ 894 Total 894 Less: imputed interest (41 ) Operating lease liabilities $ 853

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2023
Stock-Based Compensation [Abstract]
Schedule of Restricted Stock Awards	The RSAs generally vest over four years. A summary of RSA activities for the year ended December 31, 2023 are presented below: Number of Weighted Nonvested as of January 1, 2023 30,318 $ 1.07 Vested (30,318 ) $ 1.07 Nonvested as of December 31, 2023 — $ —
Schedule of Restricted Stock Units	The RSUs generally vest over three years. A summary of RSU activities for the year ended December 31, 2023 are presented below: Number of Weighted Nonvested as of January 1, 2023 — $ — Granted 58,197 $ 4.65 Nonvested as of December 31, 2023 58,197 $ 4.65
Schedule of Black Scholes Option Pricing Model	The Company’s stock options generally vest ratably annually over 3 years and have a contractual term of 10 years. The weighted -average Year Ended Year Ended Fair value of common stock $ 4.57 $ 4.52 Expected term (years) 6.0 5.9 Expected volatility (annual) 72 % 68 % Risk-free interest rate 3.6 % 2.7 % Dividend yield (per share) 0 % 0 %
Schedule of Stock Options Activity	A summary of stock options activity for the year ended December 31, 2023 is presented below: Stock Weighted Weighted Aggregate Outstanding at January 1, 2023 3,503,790 $ 2.06 7.3 $ 6,831 Options granted 253,250 $ 4.57 Options forfeited (31,846 ) $ 6.30 Options cancelled (20,368 ) $ 2.23 Options exercised (126,247 ) $ 2.13 Outstanding as of December 31, 2023 3,578,579 $ 2.20 6.5 $ 8,041 Options vested and exercisable as of December 31, 2023 2,898,508 $ 1.76 6.1 $ 6,636

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2023
Income Taxes [Abstract]
Schedule of Federal Statutory Income Rate to the Company's Effective Income Tax Rate	The following table reconciles the federal statutory income rate to the Company’s effective income tax rate: 2023 2022 Federal income tax rate 21.00 % 21.00 % State income tax benefit (0.06 )% (2.80 )% Permanent items (9.27 )% (7.30 )% Return to provision adjustments 0.02 % (2.50 )% Other 0.08 % — % Change in valuation allowance (11.82 )% (12.20 )% Effective income tax rate (0.05 )% (3.80 )%
Schedule of Components of Income Tax Expense	The components of income tax expense for the periods ended December 31, 2023 and 2022 are as follows (in thousands): 2023 2022 Current US Federal $ (5 ) $ 5 US State 16 101 Total current provision 11 106 Total provision for income taxes $ 11 $ 106
Schedule of Components of Deferred Tax Assets / Liabilities	The main components of deferred tax assets/(liabilities) for the periods ended December 31, 2023 and 2022, are as follows (in thousands): 2023 2022 Deferred income tax assets: Net operating loss carryforwards $ 2,403 $ 429 Capitalized research expenses 717 420 Intangible assets 437 — Stock-based compensation 278 262 Lease liabilities 179 216 Tax credits 44 10 Other 438 269 Total deferred income tax assets 4,496 1,606 Valuation allowance (4,333 ) (1,388 ) Net deferred tax assets $ 163 $ 218 Deferred income tax liabilities: Right-of-use assets (163 ) (212 ) Other — (6 ) Total deferred income tax liabilities $ (163 ) $ (218 ) Net deferred income tax assets $ — $ —

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	12 Months Ended
	Dec. 31, 2023
Net Loss Per Common Share [Abstract]
Schedule of Computation of Net Loss Per Common Share	The table below summarizes potentially dilutive securities that were excluded from the computation of net loss per common share as of the periods presented because including them would be anti -dilutive 2023 2022 Common stock options 3,578,579 4,442,770 Common stock warrants 8,507,311 73,978 Unvested restricted stock units 58,197 — Unvested restricted stock — 30,318 Potentially dilutive securities 12,144,087 4,547,066

Nature of the Business (Details

Nature of the Business (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended		12 Months Ended
	Mar. 20, 2024	Feb. 17, 2021	Sep. 30, 2023	Apr. 30, 2023	Dec. 31, 2023	Mar. 31, 2024	Dec. 31, 2022
Nature of the Business [Line Items]
Common stock, par value (in Dollars per share)					$ 0.0001		$ 0.0001
Common stock exchange ratio price (in Dollars per share)					$ 10.31
Contract value			$ 150,000
Contract initial award value					$ 54,900
Received amount				$ 4,000	106,500
Cash					4,790		$ 14,174
Accumulated deficit					(32,788)		(11,934)
Aggregate gross purchase price					$ 10,000
Percentage of shares of common stock issued					19.99%
Additional funding amount					$ 150,000
Aggregated funding options					$ 251,000
Private Placement [Member]
Nature of the Business [Line Items]
Sale of warrant (in Shares)		8,433,333
Public Share [Member]
Nature of the Business [Line Items]
Common stock shares issued (in Shares)					280,485
Common stock, par value (in Dollars per share)					$ 0.0001
Common Stock [Member]
Nature of the Business [Line Items]
Common stock, par value (in Dollars per share)					$ 0.0001
Class A Common Stock [Member]
Nature of the Business [Line Items]
Common stock shares issued (in Shares)					280,485
Common stock, par value (in Dollars per share)					$ 0.0001
Class B Common Stock [Member]
Nature of the Business [Line Items]
Common stock shares issued (in Shares)					6,325,000
Common stock, par value (in Dollars per share)					$ 0.0001
Subsequent Event [Member]
Nature of the Business [Line Items]
Common stock, par value (in Dollars per share)	$ 0.0001
Obligation to sell						$ 30,000
Prepaid advance	$ 5,000					$ 12,500
Conversion price (in Dollars per share)	$ 3.16
Percentage of Purchase Price for the Pre-Paid Advance	92%
Biomedical Advanced Research and Development Authority [Member]
Nature of the Business [Line Items]
Accumulated deficit					$ 32,800		$ 11,900
BARDA contracts [Member]
Nature of the Business [Line Items]
Received amount					155,900
Multi-year contract					$ 54,900
MTEC Agreement [Member]
Nature of the Business [Line Items]
Received amount				$ 4,000
Sponsor [Member]
Nature of the Business [Line Items]
Common stock shares issued (in Shares)					5,445,000
Letter Agreement [Member]
Nature of the Business [Line Items]
Common stock shares issued (in Shares)					880,000
Legacy Spectral Common Stock [Member]
Nature of the Business [Line Items]
Common stock shares issued (in Shares)			7,679,198
Issuance of private placement			$ 3,400
Common stock excess shares outstanding (in Shares)			145,380,871
Common stock excess shares issued (in Shares)			145,380,871
Common stock exchange ratio shares (in Shares)			14,094,450
Common stock exchange ratio price (in Dollars per share)			$ 10.31
Legacy Spectral Common Stock [Member] | Common Stock [Member]
Nature of the Business [Line Items]
Common stock, par value (in Dollars per share)					$ 0.001

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Sep. 30, 2021	Dec. 31, 2023	Dec. 31, 2022	Sep. 11, 2023
Summary of Significant Accounting Policies [Line Items]
Net foreign exchange transaction losses		$ 4,350
Warrants price per share (in Dollars per share)				$ 11.5
Research and development expense		15,100	16,500
Cost of revenue		10,176	14,531
General and administrative expenses		5,300	$ 2,000
Right-of-use asset and lease liabilities		$ 600
Warrant [Member]
Summary of Significant Accounting Policies [Line Items]
Warrants price per share (in Dollars per share)		$ 0.1
Exceeds per share (in Dollars per share)		$ 11.5
Public warrants outstanding (in Shares)		73,978
Sale of Stock, Number of Shares Issued in Transaction (in Shares)		1
Number of warrants issued (in Shares)	73,978
Warrant per share (in Dollars per share)	$ 7.75
Public Warrants [Member]
Summary of Significant Accounting Policies [Line Items]
Exceeds per share (in Dollars per share)				$ 18
Public warrants outstanding (in Shares)		8,433,333
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Summary of Significant Accounting Policies [Line Items]
Net receivables percentage		92%	96%
One Customer [Member] | Research and Development Revenue [Member] | Customer Concentration Risk [Member]
Summary of Significant Accounting Policies [Line Items]
Net receivables percentage		95%	98%
British Pounds [Member]
Summary of Significant Accounting Policies [Line Items]
Net foreign exchange transaction losses		$ 24,000	$ 200

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - Schedule of Property and Equipment	Dec. 31, 2023
Computer equipment [Member]
Schedule of Property and Equipment [Line Items]
Estimated useful lives of the assets	3 years
Manufacturing equipment [Member]
Schedule of Property and Equipment [Line Items]
Estimated useful lives of the assets	5 years
Furniture and equipment [Member]
Schedule of Property and Equipment [Line Items]
Estimated useful lives of the assets	5 years
Laboratory Equipment [Member]
Schedule of Property and Equipment [Line Items]
Estimated useful lives of the assets	5 years
Leasehold improvements [Member]
Schedule of Property and Equipment [Line Items]
Leasehold improvements	Shorter of remaining lease term or useful life

Recapitalization (Details)

Recapitalization (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($) shares
Recapitalization [Line Items]
Accounts payable	$ 0.8
Accrued expenses	$ 0.5
Legacy Spectral [Member]
Recapitalization [Line Items]
Issuance of shares for transaction costs (in Shares) | shares	966,667
Series of Individually Immaterial Business Acquisitions [Member]
Recapitalization [Line Items]
Business combination, net liabilities	$ 2.4
Fair value	0.2
Transaction costs	7.6
Business combination transaction costs	0.7
Series of Individually Immaterial Business Acquisitions [Member] | Legacy Spectral [Member]
Recapitalization [Line Items]
Transaction costs	1.9
Business combination, issued	$ 4.4
Series of Individually Immaterial Business Acquisitions [Member] | Common Stock [Member]
Recapitalization [Line Items]
Issued of common shares (in Shares) | shares	33,333

Recapitalization (Details) - Sc

Recapitalization (Details) - Schedule of Recapitalization $ in Thousands	Dec. 31, 2023 USD ($)
Schedule of Recapitalization [Abstract]
Cash	$ 660
Other current assets	127
Accounts payable	(860)
Accrued expenses	(277)
Warrant liabilities	(2,024)
Net liabilities assumed in exchange for common stock	(2,374)
Less: Cash	(660)
Non-cash net liabilities assumed in exchange for common stock	$ (3,034)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Schedule of Financial Liabilities that are Measured at Fair Value on a Recurring Basis - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Schedule of Financial Liabilities that are Measured at Fair Value on a Recurring Basis [Line Items]
Warrant liabilities	$ 1,818	$ 129
Quoted prices in active markets (Level 1) [Member]
Schedule of Financial Liabilities that are Measured at Fair Value on a Recurring Basis [Line Items]
Warrant liabilities	1,771
Significant other observable inputs (Level 2) [Member]
Schedule of Financial Liabilities that are Measured at Fair Value on a Recurring Basis [Line Items]
Warrant liabilities
Significant unobservable inputs (Level 3) [Member]
Schedule of Financial Liabilities that are Measured at Fair Value on a Recurring Basis [Line Items]
Warrant liabilities	$ 47	$ 129

Fair Value Measurements (Deta_2

Fair Value Measurements (Details) - Schedule of Changes in Level 3 Liabilities Measured at Fair Value - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Changes in Level 3 Liabilities Measured at Fair Value [Abstract]
Balance beginning	$ 129	$ 186
Change in fair value	(82)	(57)
Balance ending	$ 47	$ 129

Fair Value Measurements (Deta_3

Fair Value Measurements (Details) - Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs - Level 3 [Member]	Dec. 31, 2023	Dec. 31, 2022
Measurement Input, Exercise Price [Member]
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs [Line Items]
Quantitative information fair value measurements inputs	7.32	7.32
Measurement Input, Expected Term [Member]
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs [Line Items]
Quantitative information fair value measurements inputs	3.5	4.5
Measurement Input, Price Volatility [Member]
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs [Line Items]
Quantitative information fair value measurements inputs	71.2	72.6
Measurement Input, Risk Free Interest Rate [Member]
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs [Line Items]
Quantitative information fair value measurements inputs	4	4
Measurement Input, Expected Dividend Rate [Member]
Schedule of Quantitative Information Regarding Level 3 Fair Value Measurements Inputs [Line Items]
Quantitative information fair value measurements inputs	0	0

Research and Development Reve_3

Research and Development Revenue (Details) - Schedule of Research and Development Revenue - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Research and Development Revenue [Line Items]
Total revenue	$ 18,056	$ 25,368
BARDA [Member]
Schedule of Research and Development Revenue [Line Items]
Total revenue	17,027	24,827
Other U.S governmental authorities [Member]
Schedule of Research and Development Revenue [Line Items]
Total revenue	$ 1,029	$ 541

Accrued Expenses (Details) - Sc

Accrued Expenses (Details) - Schedule of Accrued Expenses - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Schedule of Accrued Expenses [Abstract]
Salary and wages	$ 1,910	$ 1,135
Operating expenses	1,563	736
Benefits	720	650
Taxes	107	110
Total accrued expenses	$ 4,300	$ 2,631

Notes Payable (Details)

Notes Payable (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023	Apr. 13, 2022	Apr. 13, 2020
Notes Payable [Abstract]
Notes payable		$ 38,000
Loan				$ 700
Bears interest			1%
Principal and interest	$ 400

Notes Payable (Details) - Sched

Notes Payable (Details) - Schedule of Financing Arrangements for a Portion of Its Insurance Premiums - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Financing Arrangements for a Portion of Its Insurance Premiums [Line Items]
Principal Repayments, Insurance Note	$ 483	$ 361
Outstanding Balance, Insurance Note	436	175
New 2023 Insurance Note [Member]
Schedule of Financing Arrangements for a Portion of Its Insurance Premiums [Line Items]
Amount Financed, Insurance Note	$ 632
Interest Rate, Insurance Note	8.60%
Principal Repayments, Insurance Note	$ 195
Outstanding Balance, Insurance Note	436
2023 Insurance Note [Member]
Schedule of Financing Arrangements for a Portion of Its Insurance Premiums [Line Items]
Amount Financed, Insurance Note	$ 151
Interest Rate, Insurance Note	9.70%
Principal Repayments, Insurance Note	$ 113
Outstanding Balance, Insurance Note
2022 Insurance Note [Member]
Schedule of Financing Arrangements for a Portion of Its Insurance Premiums [Line Items]
Amount Financed, Insurance Note	$ 376
Interest Rate, Insurance Note	6.70%
Principal Repayments, Insurance Note	$ 175	201
Outstanding Balance, Insurance Note		175
2021 Insurance Note [Member]
Schedule of Financing Arrangements for a Portion of Its Insurance Premiums [Line Items]
Amount Financed, Insurance Note	$ 474
Interest Rate, Insurance Note	5.70%
Principal Repayments, Insurance Note		160
Outstanding Balance, Insurance Note

Leases (Details)

Leases (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Leases [Line Items]
Expiration term	12 months
United Kingdom [Member]
Leases [Line Items]
Lease	$ 0.1

Leases (Details) - Schedule of

Leases (Details) - Schedule of Operating Lease - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Operating Lease [Abstract]
Operating cash flows used in operating leases	$ 744	$ 594
Right-of-use assets exchanged for operating lease liabilities	$ 483	$ 1,565
Weighted average remaining lease term (in years)	1 year	1 year 6 months
Weighted average discount rate	8.50%	8.50%

Leases (Details) - Schedule o_2

Leases (Details) - Schedule of General and Administrative Expense - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Operating leases
Operating lease cost	$ 802	$ 590
Variable lease cost	357	126
Operating lease expense	1,159	716
Short-term lease rent expense	110
Total rent expense	$ 1,269	$ 716

Leases (Details) - Schedule o_3

Leases (Details) - Schedule of Non-Cancelable Operating Lease $ in Thousands	Dec. 31, 2023 USD ($)
Schedule of Non-Cancelable Operating Lease [Abstract]
Year ending December 31, 2024	$ 894
Total	894
Less: imputed interest	(41)
Operating lease liabilities	$ 853

Stockholders_ Equity (Details)

Stockholders’ Equity (Details) - $ / shares	Dec. 31, 2023	Dec. 31, 2022
Stockholders’ Equity [Abstract]
Common stock, shares authorized	80,000,000	80,000,000
Common stock par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock par value	$ 0.0001	$ 0.0001

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions			12 Months Ended
	Mar. 20, 2024	Dec. 26, 2023	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2018	Dec. 30, 2022
Stock Based Compensation [Line Items]
Fair value of stock options (in Dollars per share)			$ 3.2	$ 2.79
Unrecognized stock-based compensation (in Dollars)			$ 0.2
Weighted average period			1 year
Stock options, options granted			253,250
Investor options outstanding			3,578,579			3,503,790
Investor options exercised			126,247
Exercise price (in Dollars per share)			$ 2.2			$ 2.06
Common Stock [Member]
Stock Based Compensation [Line Items]
Investor options exercised			155,629
Right to sell to shares of common stock (in Dollars)		$ 10
2018 Long Term Incentive Plan [Member]
Stock Based Compensation [Line Items]
Common stock, authorized issuance			3,526,200
Stock remain available for issuance			193,889
Weighted average period			9 months 18 days
Exercise price (in Dollars per share)			$ 2.06
Purchase shares			20,368
Price per share (in Dollars per share)			$ 1.96
Grant date fair value (in Dollars per share)			$ 2.17
2022 Long Term Incentive Plan [Member]
Stock Based Compensation [Line Items]
Common stock, authorized issuance			88,749
Stock remain available for issuance			1,792,918
Forecast [Member]
Stock Based Compensation [Line Items]
Right to sell to shares of common stock (in Dollars)	$ 30
Shares of common stock	6,369,937
Forecast [Member] | Common Stock [Member]
Stock Based Compensation [Line Items]
Shares of common stock were sold	94,937
Shares of common stock	6,275,000
General and Administrative Expense [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense (in Dollars)				$ 1.2
B. Riley Principal Capital II [Member] | Common Stock [Member]
Stock Based Compensation [Line Items]
Shares of common stock were sold		3,209,360
Purchase Agreements [Member] | Common Stock [Member]
Stock Based Compensation [Line Items]
Shares of common stock were sold		40,000
Equity Option [Member]
Stock Based Compensation [Line Items]
Share purchased			46,592,862
Equity Option [Member] | Common Stock [Member]
Stock Based Compensation [Line Items]
Shares of common stock were sold		3,249,360
Equity Option [Member] | Parent Company [Member]
Stock Based Compensation [Line Items]
Share purchased			4,519,191
Warrant [Member]
Stock Based Compensation [Line Items]
Share purchased			762,712
Warrant [Member] | Parent Company [Member]
Stock Based Compensation [Line Items]
Purchase common stock			73,978
Restricted Stock Units (RSUs) [Member]
Stock Based Compensation [Line Items]
Stock-based compensation expense (in Dollars)			$ 1.2
Restricted Stock Units (RSUs) [Member] | 2022 Long Term Incentive Plan [Member]
Stock Based Compensation [Line Items]
Common stock, authorized issuance			58,197
Restricted Stock Units (RSUs) [Member] | Parent Company [Member]
Stock Based Compensation [Line Items]
Share purchased			58,197
Restricted Stock Units (RSUs) [Member] | Legacy Spectral [Member]
Stock Based Compensation [Line Items]
Share purchased			600,000
Share-Based Payment Arrangement [Member]
Stock Based Compensation [Line Items]
Unrecognized stock-based compensation (in Dollars)			$ 1.2
Investor [Member] | 2018 Long Term Incentive Plan [Member]
Stock Based Compensation [Line Items]
Stock options, options granted					973,803
Investor options outstanding				939,024
Investor options exercised			34,779
Investor options are outstanding			904,245

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details) - Schedule of Restricted Stock Awards - Restricted Stock Awards (RSAs) [Member] - Vest Over Four Years Member [Member]	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Schedule of RSAs Activities of Awards [Line Items]
Number of Shares, Nonvested beginning balance | shares	30,318
Weighted Average Grant Date Fair Value per Share,Nonvested beginning balance | $ / shares	$ 1.07
Number of Shares, Vested | shares	(30,318)
Weighted Average Grant Date Fair Value per Share, Vested | $ / shares	$ 1.07
Number of Shares, Nonvested ending balance | shares
Weighted Average Grant Date Fair Value per Share, Nonvested ending balance | $ / shares

Stock-Based Compensation (Det_3

Stock-Based Compensation (Details) - Schedule of Restricted Stock Units	12 Months Ended
	Dec. 31, 2023 $ / shares shares
Schedule of Restricted Stock Units [Abstract]
Number of Shares, Nonvested beginning balance | shares
Weighted Average Grant Date Fair Value per Share,Nonvested beginning balance | $ / shares
Number of Shares, Granted | shares	58,197
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares	$ 4.65
Number of Shares, Nonvested ending balance | shares	58,197
Weighted Average Grant Date Fair Value per Share, Nonvested ending balance | $ / shares	$ 4.65

Stock-Based Compensation (Det_4

Stock-Based Compensation (Details) - Schedule of Black Scholes Option Pricing Model - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Black Scholes Option Pricing Model [Abstract]
Fair value of common stock (in Dollars per share)	$ 4.57	$ 4.52
Expected term (years)	6 years	5 years 10 months 24 days
Expected volatility (annual)	72%	68%
Risk-free interest rate	3.60%	2.70%
Dividend yield (per share)	0%	0%

Stock-Based Compensation (Det_5

Stock-Based Compensation (Details) - Schedule of Stock Options Activity - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023
Schedule of Stock Options Activity [Abstract]
Stock Options, Outstanding Beginning Balance	3,503,790
Weighted Average Exercise Price, Outstanding Beginning Balance	$ 2.06
Weighted Average Remaining Contractual Life, Outstanding Beginning Balance	7 years 3 months 18 days	6 years 6 months
Aggregate Intrinsic Value, Outstanding Beginning Balance	$ 6,831
Stock Options, Options granted		253,250
Weighted Average Exercise Price, Options granted		$ 4.57
Stock Options, Options forfeited		(31,846)
Weighted Average Exercise Price, Options forfeited		$ 6.3
Stock Options, Options cancelled		(20,368)
Weighted Average Exercise Price, Options cancelled		$ 2.23
Stock Options, Options exercised		(126,247)
Weighted Average Exercise Price, Options exercised		$ 2.13
Stock Options, Outstanding Ending Balance		3,578,579
Weighted Average Exercise Price, Outstanding Ending Balance		$ 2.2
Weighted Average Remaining Contractual Life, Outstanding Ending Balance	7 years 3 months 18 days	6 years 6 months
Aggregate Intrinsic Value, Outstanding Ending Balance		$ 8,041
Stock Options, Options vested and exercisable		2,898,508
Weighted Average Exercise Price, Options vested and exercisable		$ 1.76
Weighted Average Remaining Contractual Life, Options vested and exercisable		6 years 1 month 6 days
Aggregate Intrinsic Value, Options vested and exercisable		$ 6,636

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Taxes [Abstract]
Effective tax rate percent	0.05%	3.80%
Federal statutory rate	21%	21%
Permanent adjustments	0.06%
Net change in valuation allowance	$ 2.9	$ 0.3
Amortization period	5 years
Amortization period expenditures	15 years
Estimated research and development expenses	$ 3	1.7
Net operating loss carryforwards	$ 11	$ 3.1

Income Taxes (Details) - Schedu

Income Taxes (Details) - Schedule of Federal Statutory Income Rate to the Company's Effective Income Tax Rate	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Federal Statutory Income Rate to the Company's Effective Income Tax Rate [Abstract]
Federal income tax rate	21%	21%
State income tax benefit	(0.06%)	(2.80%)
Permanent items	(9.27%)	(7.30%)
Return to provision adjustments	0.02%	(2.50%)
Other	0.08%
Change in valuation allowance	(11.82%)	(12.20%)
Effective income tax rate	(0.05%)	(3.80%)

Income Taxes (Details) - Sche_2

Income Taxes (Details) - Schedule of Components of Income Tax Expense - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Current
US Federal	$ (5)	$ 5
US State	16	101
Total current provision	11	106
Total provision for income taxes	$ 11	$ 106

Income Taxes (Details) - Sche_3

Income Taxes (Details) - Schedule of Components of Deferred Tax Assets / Liabilities - USD ($) $ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Deferred income tax assets:
Net operating loss carryforwards	$ 2,403	$ 429
Capitalized research expenses	717	420
Intangible assets	437
Stock-based compensation	278	262
Lease liabilities	179	216
Tax credits	44	10
Other	438	269
Total deferred income tax assets	4,496	1,606
Valuation allowance	(4,333)	(1,388)
Net deferred tax assets	163	218
Deferred income tax liabilities:
Right-of-use assets	(163)	(212)
Other		(6)
Total deferred income tax liabilities	(163)	(218)
Net deferred income tax assets

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - Schedule of Computation of Net Loss Per Common Share - shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Schedule of Computation of Net Loss Per Common Share [Line Items]
Potentially dilutive securities	12,144,087	4,547,066
Common stock options [Member]
Schedule of Computation of Net Loss Per Common Share [Line Items]
Potentially dilutive securities	3,578,579	4,442,770
Common stock warrants [Member]
Schedule of Computation of Net Loss Per Common Share [Line Items]
Potentially dilutive securities	8,507,311	73,978
Unvested restricted stock units [Member]
Schedule of Computation of Net Loss Per Common Share [Line Items]
Potentially dilutive securities	58,197
Unvested restricted stock [Member]
Schedule of Computation of Net Loss Per Common Share [Line Items]
Potentially dilutive securities		30,318

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	12 Months Ended
	Mar. 25, 2024	Mar. 12, 2024	Mar. 07, 2024	Mar. 20, 2024	Dec. 31, 2023
Subsequent Events [Line Items]
Percentage of shares of common stock issued					19.99%
Subsequent Event [Member]
Subsequent Events [Line Items]
Common stock, shares (in Shares)	1,187,398
Common stock for proceeds	$ 2,700
Incurred offering costs	700
Transactions payable	600
Common stock payable	$ 100
Contract valued		$ 500,000
Forecast [Member]
Subsequent Events [Line Items]
Received investment from an affiliate			$ 1,000
Interest rate			8%
Shares of common stock				$ 30,000
Percentage of pre-paid advance principal amount				92%
Outstanding balance of pre-paid advance				0%
Percentage of increase in convertible notes				18%
First Pre-Paid Advance [Member] | Forecast [Member]
Subsequent Events [Line Items]
Aggregate principal amount				$ 12,500
Aggregate principal amount				5,000
Second Prepaid Advance [Member] | Forecast [Member]
Subsequent Events [Line Items]
Aggregate principal amount				$ 5,000
Fixed conversion price (in Dollars per share)				$ 3.16
Percentage of shares of common stock issued				19.99%
Third Pre-Paid Advance [Member] | Forecast [Member]
Subsequent Events [Line Items]
Aggregate principal amount				$ 2,500