MDAI - Earnings call transcript Q1 2024

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Operator

Good day, and welcome to the Spectral AI First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Devin Sullivan, Managing Director of the Equity Group. Please go ahead.

Devin Sullivan

Thank you, Chad. thank quarter joining financial and AI's for everyone, first XXXX results afternoon, you us for Spectral Good conference call.

today AI; the for Officer speakers will Carlson, Peter Our Chief of Spectral Chief and company's Capone, Vince Financial Officer. be Executive

including of used remind the financial like outlook. certain be believes, of regarding intended Private are these United safe statements and future, estimates, the constitute those initiatives forward-looking harbor such begin, that during words identify will, within statements Securities may similar that Act States to to provisions versions we projected, strategy, this may, anticipates, everyone When propose Litigation words of company's intends, in plans, or Before the or plans, discussions, of variations or made words forward-looking I'd call, forecasts, statements meaning expressions the XXXX, statements. and should, Reform the of the expects, expressions seeks, negative objectives,

guarantees results and the materially could company's documents with other of Investors future other company. actual conditions cautioned and outcomes actual outside uncertainties other risks, These materially from the risks not listeners uncertainties or in forward-looking described the known on filings contained important number filings of Factors including discussed statement differ and unknown company's differ of undue the those and control. performance, statements. factors in the and place from are statements cause to many in or risks and and factors, should These involve uncertainties, forward-looking carefully statements. those other the and the reliance and assumptions that address by results events foregoing of consider a which not forward-looking cause the Risk are the to important results to filed section are forward-looking statements identify and SEC registration

go Pete, Chief said, to Pete I'd ahead. turn like AI's call Officer. over Spectral that Executive Carlson, please to With now the

Peter Carlson

Thank us call. everyone. first We appreciate afternoon, joining results you, conference Devin, you our for financial today and good quarter

start areas of product year We significant executive a clinical the appointments. accomplishments strong with had to advancement deployment, and studies and in the

strengthened growth and profile well-defined support financial initiatives. also created cash runway our to We our a

to business evolve have for beyond. to XXXX are environment commercialization continuing and the a from clinical focus We well-defined and

announced, previously to U.K. UKCA As the DeepView sales in February XXXX, in we authorization received AI-Burn commence of

are of deployment Mandaville share DeepView Essex. Stoke X We Victoria excited the and Hospital hospitals; Buckinghamshire, Infirmary in in U.K. at Royal Broomfield in Newcastle, to Hospital

these provide foremost, more First and at facilities deployments and more efficient professionals care effective to we help patients. believe these

increases related the clinician having its device integrates Additionally, provides machines deployed our familiarity to real-world and workflow data outcomes. into and with usage the facility's technology

locations second We we the initiate customer a devices to will the period U.K. total this DeepView expect deploy across a evaluation, After of half of of summer. in transactions commercial year. this X

we While to significant to a represent do begin to activities. contribution pleased not we XXXX, revenues commercial transactions are expect these in

these to develop platform the and clinical updates. share work me let Our continues, DeepView

the U.S. adult we patients, pivotal for expected study emergency burn XXX across The multiple and a burn, at For both centers patients departments is pediatric. enrolling enroll to study are and

approval today, final of the burn clinical be trial towards are expected is our seeking to before As enrollment goal. approximately This we FDA for XXXX. XX% in

and For patients enrolled studies the clinical are in completing XX diabetic have total studies both both and anticipate XXX To and we in foot year. ulcers validation we or enrollment training this our across date, advancing DFUs, sites U.K. U.S. the

Burn II have partnership. $XXX the BARDA, payments XXXX, flows which timing cash and in minutes from about XXXX received of of from that and respectively. Through and XX, summarize million with and to approximately want cash asked are contracts the I were we contracts related BARDA, to few to critical most take We often a Burn this completed March I XXXX, in

PBS awarded XXXX. support million or will approximately Project the total nearly take quarter BioShield approval portion XXXX, $XX the under September for This the PBS from first of first and us The in the burn through of $XX clinical initial indication. in contract the million of validation contract the processes includes award of FDA

BARDA. several with subject which annual commence devices departments deployed. The Final be to fees we discussions to procurement amounts next select for license emergency award, centers are with the award of in this million expect deployment estimated across half U.S. the first along is burn of for $XX and to years to funding of devices under next XXXX, the and

In million, to has paid the totaling summary, contracts. company $XXX to million XXXX, contracts BARDA these has to Spectral $XXX AI awarded date, and since under

to new Avida, of executive of prior to running, Spectral more updates say the welcome Officer nationally on am Board. Chicago Johnson, & Healthpoint Annual Johnson in team ground Sparks, and Commercial as Burn marketing than at Medical leadership X, Jeremiah medical Meeting continued at both joining years including team and our April Jeremiah including strengthening strategy, worked products, Prior joining We I brings in an to beginning Jeremiah experience and he globally. Avida the the launching Association. American the business XX at the and Turning and device hit of Allergan. AI our pleased and Chief to

providing skills. deployments ] Stan Micek teams. management Interim Additionally, engineering April on Chief project experience to with extensive Officer along X, brings we our leadership strong in named continuing as [ Operating Stan product

med Senior disease. in device pharmaceuticals nominated filing [ experience cardiovascular Board last Director executive, Marion a month, As with Medical, at ] is of both accomplished is our we ShackWave Directors. focused device Marion positions on ] [ executive and MiMedx Snyder at Pfizer. Corporate in prior and Pro serving care of the proxy treatment to health highly disclosed our currently medical a as Accounts

our Spectral formed subsidiary, health newly My last is intellectual care update about IP. property-focused

a as to [ property, our intellectual are largest Spaninberg in well-known fortunate We expert Eric shareholder. have ],

value his resources capital exploring subsidiary potential acquire management of spin-off and and of providing As know primary IP shareholders, subsidiary, of to the Spectral named It Eric focus additional be company. investors. this to for additional we this assets will is current you the limited activities this and to saw, require no identifying the important CEO entity our for that IP-focused from as

core subsidiary. operating the will of no the assets in Additionally, involved company be

and better payers information lower for through long-term clinicians decisions I and appropriate complications stress improved over Before Vince. believe for for that and our to want we care and validated we suffering the benefits plans deliver turning pain to and to more patients, shareholders. meaningful health reduce things are risk path reduced value for treatment economic faster assessments efficiencies facilities, costs delivery for on and proper by objective from treatment

Capone, I update provide that, Vince Chief Officer, our Vince? financial have With results. Financial an will on our

Vincent Capone

this release I With which and of contains my highlights results, on that SEC all today Pete, thank mind, items. detail and We with remarks are filing we additional you in Thanks, our as joining issued our us operating today. the will our select well. for afternoon, press key XX-Q focus and

report company activity reflects development We level are rose $X.X and quarter an million that to was BARDA to the first in XX.X% This from last first contracting, $X.X for of which the increased pleased Project under BioShield million year. the growth to revenue XXXX. quarter the research September awarded of in

BARDA the Burn quarter reimbursement under from rate in to XX.X% first year's Gross Project last which contract XX.X% the to in BARDA higher under II reimbursement the quarter. due compared we year rising last of BioShield the in to margin first the contract also as improved, operated rate

ended quarter of $XXX,XXX X X XXXX. General by were first and quarter of first related months March months and approximately as for by XXXX, to decreased quarter increase in administrative compared compared that's for and the and $XXX,XXX the expenses expenses XX, Nonrevenue-generating the other to administrative an offset first research $X.X XXXX, ended million. of the to the XXXX March approximately at flat activities development XX,

or reflected first Other quarter were March share loss expenses million XXXX quarter or the arrangements. transaction our net for At outstanding. as of announced borrowing company's last $XXX,XXX related for XXXX, of and $X the per loss $XXX,XXX the from first costs compared of to per share to of related previously $X.XX XX,XXX,XXX net of XX, approximately costs the each to shares financing had $X.X quarter million up year. and XXXX million $X.XX trimmed we $X.X We a

Moving balance to sheet. the

million XXXX, and $X.X cash to stock under The million equivalents the with agreement purchase year-end. investment totaled company access facility. $XX.X an which March million. company a enhanced up to from additional million, We cash an XX, under the still ability this our at of draw down $X bank, capital common As by $X.X has netted completing

includes into entered a prepaid investor. long-owned purchase we advances. That $XX.X million addition, standby a agreement with In of equity

Meeting and $X million, from As XXXX XX, the final received the after of and advance our XXXX, Annual XX, thereafter. million purchase agreement, company company $X.X XX standby of net May days receiving the million shortly March anticipates $X.X the equity

of drawdowns any company. $XX.X the above million advances the is As prepaid solely discretion of the reminder, a at

revenue we the million, are XXXX, the handheld of reflects $XX.X Project BARDA BioShield XX% $XX reported For This our increase in work with ongoing we an contract expected contributions reaffirming XXXX. our million from on of the approximately growth additional from guidance contract.

of U.K. the does not for additional we Health for a development second the recently the in DeepView reminder, the contract than device This half to sales announced XXXX, of handheld of a is valued provides to the use guidance device over development system from the for Defense a the which greater this not $X in at that material. version bringing deep As million. of support be our contributions expected total Agency significant $XXX,XXX, system new of the with burn include

the Thank you turn to for conversation Pete. your I over time. that, will back with And

Peter Carlson

Thank you, Vince.

our our achievements progress welcome first as and date We entire horizon I thank both are and our to promise develop to to quarter leadership to Stan in want and strengthened position. team those and our and to success. the commitment financial pleased our for our team Jeremiah DeepView Their system. with drive in dedication our commercialize we their the

Chad, let's the for call questions. open

Operator

be And from Instructions] will first Ryan [Operator question Zimmerman from the BTIG.

Unknown Analyst

Vince, on progress Pete, Ryan. Izzy is far. the on Congrats for so this

I great these that you any from feedback system? about U.K. could what you guys initial guys to those start placements just provide out, wondering what you are placements, surgeons to the if So just see initial on thinking the in hearing are have it's qualitatively And was

Peter Carlson

the had economics aspect with system, you. in single just the than to the Surgeons from in are to U.K. they as the to tool. U.S. a positive the opportunity payer the of use the focused Interesting care. quality are is excited different reactions so Good about talk And field. here We've very are

and to the and all in all So use, They easy in talked it about use them to device find people receive improving and quality the as to hit all is this by easy the usable we've feedback, it as of is we care. clinics.

back diagnosis gives from do nurses get device, to nurse ability So these which diagnosis are on the images how -- and essentially the the critical burn. to assessing they are that regardless practitioners, take able of to skilled get a them

enjoy of the device. consistency the quality happens So that using the assessment the by the facilities and

Unknown Analyst

Good. next for is burn see. to the That's helpful to others hear. which We've XX%, the on you were burns some from U.S. trial, I saying guys great U.S. heard down that up industry say of heard commentary in to that the in quarter is enrollment And incidence the first

So I any in you was seen pace terms if wondering far? of guys so in enrollment impact the just have

Peter Carlson

We same industry and agree We incidence the the of with would updates. hear that burn. about analysis

some is it. we holiday is we seasonality see things that did some the like But of can indications that going the getting and there yes, other be just quarter. aspect weekends in burns to were burns. us, fewer For There were

things the burns unfortunately, of in concentration greater a of we've is, One seen pediatrics.

incidence quicker in the was So first But we're that's assessment would we rate do is expect your think -- to in second than that anticipated. correct and the be months U.S. in quarter, here higher lower we the and burn summer the I gone it

Unknown Analyst

jump for one I back in queue. last then And it. Got before me

revenue for a in came shy estimates. quarter our the bit BARDA Your little just of

the wondering commentary expecting rest you that of some around about you given year, the you're guys revenue million of could year. for are see the how So cadence I $XX if still just to for thinking provide was the full

Peter Carlson

of I One revenue trial. the as in a is That specific a the date the anticipated, think slower the drivers for the That current revenue said, enrollment the with had where what of we're are half billings bit we the and period pleased momentum. was, a to trigger little back-ended touch we of just the ramp-up be said, in the first would and but we do year. is than to second so being the quarter very

get So maybe an as the the year. to the a quarters. the up half about half there's more second somewhat may amount than quarter, the would of for would remaining think half of we in -- think increase, you that -- the And is think so next of X not slight but second rata that see revenue I we pro

Operator

from And the Ramakanth H.C. next question [ Wainwright. ] will come from RK

Unknown Analyst

from This is HCW. RK

thoughts continuing clinical completed. got some to So that study in trials, study you the half. on so on plan training second get the of the validation And DFU the completed also, the

So sort file that And X comes pivotal studies expect to for studies? of that is Or these so what what try the -- try any FDA. and you from for One can with the this should these data plan data X filings? that things. out that X studies, a is to enough we to two, you use think of data

Peter Carlson

of the of done we think done kind couple Okay. well, here. I the the question. information work date, data It's study different The prepared, us things we've submission to appreciate the training needed prepare date, to for a -- combined, we've U.K. provides the to to talk a good

on probably a submission our that months that. for away data have we're in data the synthesize X U.K. So begin couple do enough that and to But track prepare in months, of submission. we we hand the It's preparation of as X,

that It validation completion would a for the is will study of need we submission. U.S. information believe we the be

complete foot foot we very the of we year the So preparing a is may burn something again, to diabetic first next year, this to -- be well this early that submission and we thus think the look burn a in think What submission from would and I about spot position that's begin as diabetic where up end ulcer, to we is, say for ulcer. year will better in FDA. end

for data a XX-plus of on going We're And burn. application novo have de years here. we

the here And point leverage the first to U.S. race in so that's Crown strong Triple our

in. You ride horse your good

diabetic information of this. considering and the for with submission think the order, I we'll kind work would also timing but foot there the all so needed of we're the the be separately, And of data and on FDA ulcer

Unknown Analyst

just that's Very the the U.S.? in what this conducted later assuming you take is Or the being good. patient of on indication Is need point, Ireland, from into should at that once in think about And how that also for in you're U.S., And talking then it? plugs we it the you you I'm said, get is through U.S. up study do about kind use study just going the other question that XX what and can of to a you of do data burn some kind separate studies? the

Peter Carlson

We U.K. with can associated and the procurement. from the for use U.S. in the activities data reimbursement

data. set and to again, So training we And for FDA we the think with the of look payers have us data. buyers, U.S. does a robust with or have

subset the We we have more about the with work here give that and it way what threshold the group to concentrated does assess a think U.S. on a on think some us potentially the to which specific side is U.K. overall in publications. of to do do validation U.S. data. the it's The to in but maybe meet work is about think study

Unknown Analyst

Okay.

experience in reimbursement? with. back Jeremiah are because of and to one have in But Now stated, commercialization learnings he different, work reimbursement from on Jeremiah we weird would side And tasked things to kind of once the because that board, deployment U.K. entity the kind of only I'm in have both kind be this terms is so what you come of terms pond, terms of you watching the of with as of in looking sort also U.K. of quite is that sure we

Peter Carlson

Yes.

which the a prepared and couple start are my how of It's clinicians So to capturing a the were in several is It's are aspects using remarks. device. data. also it, there transactions. facilities of real-world It commercial

you for the place. conditions, understanding takes and caregivers. facilities ebb good that into transactions get or a certainly And us. so of and with help get commercial terms is Anytime puts commercial through flow financial and terms and begin And in can entering

the into All the payers to have leveraging the of also real-world discussions. think the will as we receive in FDA our U.S. U.K. while facilities helpful those be here very useful, in the in we We U.S. data that and look leverage very are And those input for trial the continuing do for here conversations. for strategy we

Unknown Analyst

question One Okay. force is is last from me. a BARDA huge excellent. behind company, which the

to they the So help but run help any approved. I'm only certainly involved way part regulatory it terms get all process, commercial where much of are trying in a of trying the is make plan Or in in that how process, in to way regulatory understand you such studies the also of can sure in process, terms in actually BARDA can they that you you? can you your the in not product

they Of take as understand terms they're the the U.S. long in approval, process course, sort still regulatory and are of the trying I'm care to getting the for about as don't of what comfortable just product. BARDA, data the they can But help in utility the with the of you product

Peter Carlson

BARDA company partner. very enjoy We a interaction discipline with is interacting great federal agency. much with created with a them. a has think them working We our for inside good our

So the to do working certainly companies with they informed BARDA with believe is us by clinical a the They I for think do appropriate FDA. standards we're other the well experience holding have we for interactions relationship. trials. think working with that their that's prepared And FDA. are

between somewhat it's the formalized document think in a I X groups.

but They're pediatrics. focused from we to for clinical relative of like specific those wanting the FDA. think those to But informative are by on, centers good emergency the for both the trial only approval on receive in mission been They've the burn departments. instance, work. things device we the we BARDA And support BARDA's not -- the are so participation and advice -- the the having

far we channel they that then encouraging on. users, of of funding as distribution deployment, think are but bit in And facilities as as device take a the supporting and to a BARDA also

facilities of with emergency Project So U.S. the within there we'll BioShield some across next option of this on number in departments the penetration and covered be together round or further BARDA will contract then work

Operator

will question the And John Zacks. Vandermosten from next be from

John Vandermosten

of factors hole a are and diagnosing Pete to how burn and relates going that. and when the and and systems system that. I've -- how do how been and the relates been the Great. to provider there tease DFU are how consider like aware rabbit correlation diagnosis providers AI down that how and triaging those to Vince, that things Any you've of that the that able making out? the And would X between

Peter Carlson

between department reimbursement. difference burn an I that with you correlation don't tease schemes, or early on Obviously, say the in setting center U.S. X is important I'd and we've to the Those a approaches. know the able just of here the be going matters, a or days if care we're there's our are the as been to working even still reimbursement been emergency out in will, payers different

does What better informs this diagnoses. tool is we existing believe device

the be skin a informed So consistent, you we're more the process as doing, is to same, you some what into the will viability, is device just this edge think, of still is. once assessment going from viability departments specific allow to ways, where practitioners the a certainly, of think, the for measurements better a caregiving, as informed well of get be better nonviability do in emergency and pretty away we I couple into as of get what experts the

can less there instance, of less important already through needs precise to so patient, something or much grafts traumatic generally, skin burn, else to these you have dozen. how for autologous, So of the be are skin there time. their the a to impact be a is more the you is patient versus what's in grafts the impact And have you body somewhere else the addressed what

John Vandermosten

of I products. my we're of sense, the still AI, payers, been of assessment? works the for early for and mean, days kind at are Okay. know sense and In kind you just that it do how And they regulatory high percentage in end sense they same well? to type has AI those as at. want accurate have that ML been it's what looking of result of Or it's authorities my kind approval looking looking

Peter Carlson

things the to devices, not is think what of want this for very a not I much our that's iterative It instantaneous have And way, that going bots so loop of as against about that. running millions thing they power making to approach a important AI. within Said algorithm understand algorithm the intelligence or is. what some the data understand AI, like points to some a And concerns AI considering database. does risks artificial database. closed is you an people is on. millions an such closed chat tool different these it with is And the different that's our it and an have of and of assessment is

the the want That to adding is understand closed what learning database, and each it's call ways. going this we amount start that's much your technical from a again, is going the in helping is into there's within term. point, data a finite There iterative environment. But to indication. data the with closed, on. to the human where see it's said, want on needed approval want each as know now, being closed additional per set it indication practitioner they it learning device think, even is of it see. still eye regulators understand most because I what's don't think to an going they really not And do different where process data understand very I'll within I there but So a what iterative loop. is cannot But

John Vandermosten

to will I the about sales ask -- also And how forward. wanted go

there's hospitals that they a sales and explain that would to that it in to out little target buying. burn. there it, can could and approved might then I U.S. and sales then for assume there how bit probably Maybe ready there are better. related be are you understand you I the is you deployed when non-BARDA another from there be certain As to to apply I want and appropriate locations first, Or understand also that expect BARDA that that Is to sold. just methodology works? other candidates it's expand

Peter Carlson

it's on with Yes, partnership you next PBS think generally is of what be it a together a sale John, device of working because say them. a next this for contract You're point, that deployment as phase, I and for would revenue would option of commercial the has would annual license fees.

together and We what would BARDA with departments, the will work on centers go. what devices emergency

have first get So and they will they're significant where sites the say a we in that which wave paying. for

the And again, in it's be direct get do, population the of we'll situation, we department penetrated to But have contacts be priority locations way. lead those it. sort this and this BARDA working not we to through warm a That's emergency the emergency we would is in working a funding across them with goal across what to with significant -- locations. leverage departments way wants in about X,XXX is have if their a strategize and them even the to the U.S. us think on the

John Vandermosten

ones Would guess, BARDA go that first other the Okay. may some contract be the I sell might that then part limit you that do What of the is play capacity And sell on there -- units kind out? sense incremental aren't you contract? how the included your you you of all to do be, would as capacity the all would to constraints. targets parallel? might and to could constraints there that. of I to Or in mean,

Peter Carlson

a partner can we needed -- work know with any capacity constraints the -- think quarter we We the to not contract, within to lead I would produce to somewhat our BARDA X. be time out. we something anticipated it with think do a but parallel. devices locations process. others, BARDA the devices deployment don't relative relatively these where the I or whether a work see can work overall, would getting there's be manufacturing But for think well, our it parallel distribute we within We only to to exclusively

John Vandermosten

for X IT Okay. me And last the subsidiary. on is

bit there exchanging I a call little the any hands. this in I think cash, guess, you that alluded be to wouldn't

that or or any So maybe it -- off was will entity, that? work entities allocate between cash spins terms it they off. to X after cash something when might cash flow I you will like wondering the guess, I or in of how separately spun the raise just debt

Peter Carlson

Yes.

we're our is he of and would for X any And do going we cash separate for for through the flow no, different $X cash to be to and entities. subsidiary. don't organization. anticipate also of X we flow shareholder. CEO funding is that secure don't go additional would that an So that That be capital the funding the than work will being we our activities sources the between would see And it's there would demonstrated between of be large entities he -- from part as looking Eric's, self-funding, affiliate million as

Operator

next Instructions] question is from [Operator Rakoso PartnerCap The Christopher ] from Group. [

Unknown Analyst

brief Peter of, I questions. couple and a Vincent, think, I have

made spent the in any the fair from world? Middle regions apart time the on done comment know you you've one, can first in of that -- a of you've United obviously The in you've efforts States, efforts other that I East. amount the

are you and full If for efforts? how timing going I year on potential know to could characterize guidance terms those those next years growth efforts yield, if company it out the revenues? terms aspiration rates is beyond your in your And terms not given over least so Is XXXX. possible you've few that to that? citing any in in of Also, speak, of what nominal of at numbers look

Peter Carlson

question. talk. for Thanks good Chris, to the

in there. different of couple a got You've ones

do That I as have far in but U.K. geographies, we primarily of a are the Council focused here. with I'd U.S. Gulf and parties amount there. as we the significant First, it on know don't the interactions time, that said, have going on characterize being we interacted countries.

attended market situation have conferences what think do where field and in understand testing devices opportunity the a might some opportunity and and some that's be. We an we begin there's get the some to

U.K. a approval Gulf the environment, look that for this have the council like That we mark CA countries will to regulatory. generally

a and decision regulatory where So almost of and different the allowing region. an that device it as removes in with maker can things particularly, can obviously, one the be in burden individual as there environment far you're dealing Saudi Arabia, in that sort totally make some happen say,

interest we the our in putting be in are a that the start nature. And the water, there little the trials to at bit. the primary of be I in U.K. here testing things and But would Whatever we focus U.S. that would would toe did to other say, understand going markets look and is and

Another mark. about a in the would approval to what go also one little after be -- and have country longer That's you than process Mainland you country That's us bit was by CE process talk a the hear that. Europe. U.K. then would seeking

want the to in meeting really the we that, the to U.K. lines do we focus want time but we've U.S. here and So on established

Secondly, going question, -- other I'm to I your didn't down. part write of the forgot it

Unknown Analyst

part was other The that of you... the I know question

Peter Carlson

XXXX $XX regarding Growth you R&D is I of right and has is contract the our talked first compounded growth revenue sorry. about not to runs the Project a what about shift. quarter now that about part the of that's would $XX million and revenue rates of rates. total as BioShield I talked growth value XXXX. this for nature it of remind first million through going would rate, we've I because Yes, think our What

and out figure of probably of from the order XXXX that. you some do math magnitude So revenues can

to along activity begin $XX And as several under reflected would contract. be the as about, well deployments, we to up Project with talked the a the over parallel as that commercialization years would BioShield in million be begin add and the our BARDA would we just would the U.K., then

wouldn't and So -- growth it's that. it's such but some chunky necessarily growth not that contract-driven revenue about almost there will necessarily rates, be talk in

It's some not DFU and for in XXXX for or have the would beginning item there's number, revenue R&D new we commercial in, for which you growth, then see then compounding for on not just of that but U.S. the And revenue have burn and a that not DFU. quarter would it's so have this first phase then commercial in the the to base will first we'll revenue grow, and recurring U.S. we'll U.K. coming there. the

that and building would be types in, until multiple the which to something transactions of growth we revenue get really would into rates. appropriate look on coming So commercial start not you it it's at

Unknown Analyst

more And I question, See. brief if may. one

terms if this an like gentleman subsidiary somewhat conceptualizing of spin-off from structure majority a or about be minority stake it? a in essentially city either as MDAI schematic area sidebar opco holds almost significant your is announcement it you I in think or true perspective, that it of where like In made. a holdco Should a this

Peter Carlson

sister It type would an be brother arrangement within a org chart.

our not IP. it's is is operating a company a whole and Spectral go to. There's no, company. Spectral So the company. AI the U.S., is Spectral U.S. there then MD a holding up in U.K.

they're So down from the all that holding company. one tier

Operator

and ladies concludes to like I the session. for remarks. over closing Pete And turn back conference gentlemen, this would any to Carlson today's question-and-answer

Peter Carlson

continued May hope and with some Sidoti Northland pleased later everyone, Meeting with of thank We XX for progress throughout Shareholders very to you, in that Growth June the prospects growth. remain X upcoming about we AI. interest our make conferences and We're including events, and good speak investor announce at we will participation the to on and Thank the Virtual this Spectral a Virtual your optimistic and Conference the various for of Microcap continue the in next you, Annual Chad, week, on to you, Thank year. other at Conference evening. have week May late our X

Operator

And presentation. thank for you has concluded. today's Thank now you, sir. The conference joining

disconnect. may You now

Spectral AI (MDAI) 7 May 242024 Q1 Earnings call transcript