Spectral AI Inc (NASDAQ:MDAI) reported a 76% year-over-year jump in revenue for the second quarter as it advanced its AI-driven DeepView System for the burn indication.
The company said its Q2 research and development revenue was $7.5 million up from $4.3 million due to increased activity under its Project BioShield contract with BARDA for the advanced development of the DeepView System.
Gross margin improved to $44.3% from $42.1% due to a higher reimbursement rate under the BARDA contract.
It narrowed its net loss to $2.9 million or a loss per share of $0.16 from $3.1 million or $0.23 per share in the year-ago quarter.
The company continues to expect revenue of $28 million for fiscal 2024 but noted that this does not reflect contributions from the sale of the DeepView System in the UK, expected to begin in Q4 2024.
The company is on track to commence commercial operations in the UK later this year following the deployment of five DeepView devices.
Additionally, the company reported that patient enrollment in its US burn study, designed to validate the DeepView System for burn wounds, now exceeds 85%.
The study is expected to be the final clinical trial before Spectral AI seeks regulatory approval in 2025 for the DeepView System, expected in the second quarter of 2025.
“This is one of the most exciting and consequential periods in our history, and I am proud to see the teams advancing our proprietary, AI-driven DeepView System for burn indication along multiple fronts, including clinical, developmental and commercial,” Spectral AI CEO Peter Carlson said in a statement.
“The upcoming completion of enrollment at burn centers for our US Burn Pivotal Study, continued development of both our cart-based device and the handheld diagnostic tool, and anticipation of our first commercial revenues in the UK later this year validate our vison and reinforce our strategic imperatives.”