Spectral AI Announces Spinoff of IP Subsidiary to Focus on AI and Healthcare Intellectual Property

Spectral AI announces spinoff of IP subsidiary By Investing.com

DALLAS - Spectral AI, Inc. (NASDAQ:MDAI), a company specializing in artificial intelligence for medical diagnostics, has announced its plan to spin off Spectral IP, Inc., its subsidiary focused on intellectual property (IP) management and monetization. The decision is part of a strategic move to enhance shareholder value and concentrate on Spectral AI's core business of medical diagnostics. The spinoff will see Spectral IP transition into an independent, publicly-traded entity through a distribution of stock to Spectral AI shareholders. The move is expected to be completed within the next 90 days, subject to necessary regulatory approvals and other closing conditions. Spectral AI's Chairman, Dr. J. Michael DiMaio, stated that the spinoff aims to create a distinct pathway for targeted IP investments, allowing Spectral IP to pursue opportunities beyond the company's primary focus. The spinoff is intended to provide strategic and financial benefits, such as a more focused allocation of resources and the potential for enhanced shareholder returns. Spectral IP, to be renamed SIM IP Inc. post-separation, will be led by Erich Spangenberg as CEO and David Kutcher as CFO. The company will offer IP-based financing and monetization solutions across several industries, with a particular interest in sectors like healthcare, semiconductors, AI, and IoT. Spectral AI, headquartered in Dallas, is advancing its DeepView System, a predictive device aimed at improving treatment decisions for patients with burns and diabetic foot ulcers. The system is designed to provide clinicians with an objective assessment of a wound's healing potential. The announcement follows the formation of Spectral IP in March 2024 and a $1 million investment into the subsidiary. The spinoff is based on a press release statement and the completion is not guaranteed, as it is subject to final approvals and conditions. This strategic realignment reflects Spectral AI's commitment to its medical diagnostics focus while enabling Spectral IP to independently pursue its growth in the broader AI and IP landscape. In other recent news, Spectral AI, Inc., a Dallas-based artificial intelligence company specializing in medical diagnostics, has made significant progress in various projects. The company has completed the final clinical visits for its U.S. Burn Pivotal Study, a significant step towards the planned submission for U.S. Food and Drug Administration (FDA) approval of its DeepView AI®-Burn system in the first half of 2025. The company has also successfully completed a proof-of-concept for a module within its DeepView System, designed to enhance burn care treatment decisions. Spectral AI has expanded its clinical trial sites for its U.S. Burn Pivotal Study, which aims to validate the AI-driven algorithm of its DeepView System. The company plans to submit a De Novo request to the FDA in the second quarter of 2025 for classification of the device. In financial news, Spectral AI has secured over $850,000 from the Medical (TASE:PMCN) Technology Enterprise Consortium for the development of its handheld predictive burn wound healing device, DeepView SnapShot M®. The company's R&D revenue is projected to reach approximately $28 million for the full-year 2024, marking a 55% year-over-year increase, according to an analysis by BTIG. The company's patent portfolio has grown by 30%, now totaling 26 patents. Lastly, Spectral AI has urged Nasdaq and state securities regulators in Florida, Louisiana, and Texas to investigate possible manipulative trading practices affecting its stock. These are the recent developments for Spectral AI, Inc. Spectral AI's strategic decision to spin off Spectral IP comes at a time when the company is navigating financial challenges. According to InvestingPro data, Spectral AI has a market capitalization of $27.4 million USD, reflecting its current market valuation. The company's revenue for the last twelve months as of Q2 2024 stands at $22.53 million USD, with a notable quarterly revenue growth of 75.91% in Q2 2024. Despite this growth, InvestingPro Tips indicate that Spectral AI is not currently profitable, with a negative P/E ratio of -2.1 for the last twelve months as of Q2 2024. This aligns with the InvestingPro Tip that analysts do not anticipate the company to be profitable this year. The spinoff strategy could be seen as an attempt to streamline operations and focus on core competencies to improve profitability. Another relevant InvestingPro Tip highlights that Spectral AI operates with a moderate level of debt. This financial structure may provide the company with some flexibility as it undergoes this significant organizational change. Investors considering Spectral AI should note that there are 6 additional InvestingPro Tips available, offering a more comprehensive analysis of the company's financial health and market position. These insights could be particularly valuable in understanding the potential impacts of the spinoff on both Spectral AI and the soon-to-be-independent Spectral IP.

Spectral AI Announces Plan to Spin Off Spectral IP Subsidiary Focused on Intellectual Property Investments and Monetization - Spectral AI (NASDAQ:MDAIW), Spectral AI (NASDAQ:MDAI)

DALLAS, Nov. 06, 2024 (GLOBE NEWSWIRE) -- Spectral AI, Inc. MDAI ("Spectral AI" or the "Company"), an artificial intelligence ("AI") company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, today announced its intent to spin off its Spectral IP, Inc. subsidiary ("Spectral IP") through a transaction with Sauvegarder Investment Management, Inc. ("SIM"), a development-stage company focused on IP-based financing and monetization. The spinoff aligns with Spectral AI's strategy to maximize shareholder value by fostering growth in its subsidiary, Spectral IP, to monetize intellectual property ("IP") assets relevant to the broader AI ecosystem with a specific emphasis on healthcare that present significant growth potential outside of the Company's core focus on medical diagnostics. All of Spectral AI's 26 patents and 38 patent applications will remain with Spectral AI. The spinoff is expected to deliver key advantages, including: a sharper strategic focus with supporting resources; optimized capital allocation priorities; enhanced shareholder value; and expanded strategic opportunities for Spectral IP. Details of the Spinoff Spectral AI anticipates that the transaction will be in the form of a distribution to its shareholders of stock of Spectral IP, which will become a new, independent publicly-traded company. Spectral AI currently expects the transaction to be completed within the next 90 days, subject to final approval by the Company's Board of Directors, a Form 10 registration statement being declared effective by the U.S. Securities and Exchange Commission, regulatory approvals, and the satisfaction of any remaining closing conditions. There can be no assurance regarding the ultimate timing or completion of the proposed spin off transaction. "We believe this spinoff represents an exceptional opportunity to unlock additional value for our shareholders," said Dr. J. Michael DiMaio, Chairman of Spectral AI's Board of Directors. "With the spinoff transaction, we are creating a distinct pathway for targeted intellectual property investments outside our core focus on medical diagnostics. This strategic move enables Spectral IP to explore and capitalize on significant opportunities beyond medical diagnostics while driving innovation and growth in the broader IP landscape." In March 2024, Spectral AI announced the formation of its Spectral IP subsidiary to advance intellectual property relevant to the broader AI ecosystem, with a specific emphasis on healthcare. Spectral AI also announced that Spectral IP had received a $1 million investment and that Board Member Erich Spangenberg was appointed Chief Executive Officer of the subsidiary. Mr. Spangenberg is Spectral AI's largest shareholder and has a strong track record in global IP investment, monetization, enforcement, acquisition, and licensing. Following the spinoff, Spectral IP (to be renamed SIM IP Inc.) will focus on providing IP-based financing and monetization solutions across various industries. SIM IP's approach will include licensing, litigation investment, structured financing, royalty acquisitions, and opportunistic transactions. While SIM IP will remain industry-agnostic, its target sectors include healthcare, semiconductors, AI, and IoT - "hard tech" sectors with longer replacement cycles commonly ignored by other investors and frequently infringed. Led by experienced professionals, it intends to leverage deep industry connections and expertise to identify and unlock value in IP assets. SIM IP will be led by Mr. Spangenberg as Chief Executive Officer and David Kutcher as Chief Financial Officer following the completion of the separation. SIM IP will be headquartered in Miami, Florida. About Spectral AI Spectral AI, Inc. is a Dallas-based predictive AI company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, with initial applications involving patients with burns and diabetic foot ulcers. The Company is working to revolutionize the management of wound care by "Seeing the Unknown®" with its DeepView System. DeepView is a predictive device that offers clinicians an objective and immediate assessment of a wound's healing potential prior to treatment or other medical intervention. With algorithm-driven results and a goal of exceeding the current standard of care in the future, DeepView is expected to provide faster and more accurate treatment insight towards value care by improving patient outcomes and reducing healthcare costs. For more information about DeepView, visit www.spectral-ai.com. About Spectral IP, Inc. Spectral IP will be a leading IP asset manager focused on providing IP-based financing and monetization solutions across various industries. Spectral IP's approach includes licensing, litigation investment, structured financing, royalty acquisitions, and opportunistic transactions. Led by experienced professionals, Spectral IP leverages deep industry connections and expertise to identify and unlock value in IP assets. Certain statements made in this release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995, including statements regarding the Company's intention to separate its Spectral IP subsidiary from the Company, and each Company's strategy, plans, objectives, initiatives, strategic goals, financial outlook or other non-historical matters. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Company's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to place undue reliance on any forward-looking statements. Investors should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" sections of the Company's filings with the SEC, including the Registration Statement and the other documents filed by the Company. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Spectral AI undertakes no obligation to update any forward-looking statements except as otherwise required by law. For Media and Investor Relations, please contact: David Kugelman Atlanta Capital Partners LLC (866) 692-6847 Toll Free - U.S. & Canada (404) 281-8556 Mobile and WhatsApp Email: [email protected] Market News and Data brought to you by Benzinga APIs