Funding and Contracts - The company has received approximately $280.2 million in funding awards from government contracts since 2013, with $272.9 million coming from BARDA[128]. - The company executed a multi-year Project BioShield agreement with BARDA in September 2023, valued at up to approximately $150.0 million, including an initial award of nearly $54.9 million[129]. - The PBS BARDA Contract, valued at up to $150.0 million, includes an initial award of nearly $54.9 million for the clinical validation and FDA clearance of the DeepView system[170]. - The company received a $4.0 million grant under the MTEC Agreement for developing a handheld version of the DeepView System, expected to be completed by April 2025[171]. Financial Performance - Research and development revenue for the three months ended March 31, 2024, was $6.3 million, an increase of $1.2 million from $5.1 million in the same period in 2023[138]. - Gross profit for the same period was $2.9 million, with a gross margin of 46.6%, up from 42.9% in 2023[138]. - The operating loss for the three months ended March 31, 2024, was $2.1 million, a decrease of $755,000 compared to a loss of $2.9 million in 2023[138]. - The net loss for the same period was $3.2 million, a reduction of $404,000 from a net loss of $3.6 million in 2023[138]. - Adjusted EBITDA for the three months ended March 31, 2024, was $(2.1) million, an improvement from $(2.6) million in 2023[165]. - Net cash used in operating activities decreased by approximately $1.1 million to $(2,680) thousand for the three months ended March 31, 2024, compared to $(3,755) thousand in the same period of 2023[175]. - Net cash provided by financing activities increased by approximately $8.2 million to $8,049 thousand for the three months ended March 31, 2024, compared to $(104) thousand in the same period of 2023[176]. Product Development and Commercialization - The company has not generated any product revenue to date, focusing on research and development for the DeepView System[128]. - The DeepView System is expected to begin commercialization in the UK in the second half of 2024 following the receipt of the UKCA mark[125]. - The company anticipates two revenue streams from the DeepView System: a software as a medical device model and an imaging device component[131]. Corporate Structure and Governance - The business combination completed in September 2023 resulted in the company being listed on the Nasdaq under the symbols "MDAI" and "MDAIW"[133]. - The Company formed a new subsidiary, Spectral IP, and received a $1.0 million investment for the development of its artificial intelligence intellectual property portfolio[180]. Capital and Financing - As of March 31, 2024, the company had approximately $10.2 million in cash and notes payable of $5.8 million, with no long-term debt[166]. - The company entered into a Common Stock Purchase Agreement with B. Riley to sell up to $10.0 million in newly issued shares and a Standby Equity Purchase Agreement with Yorkville to sell up to $30.0 million in shares[167][168]. - The Company entered into a SEPA allowing the sale of up to $30.0 million of its shares, with an initial Pre-Paid Advance of $5.0 million at a fixed conversion price of $3.16[178]. - The Insurance Note, entered into in September 2023, has an interest rate of 8.6% per annum, with a remaining balance of $0.2 million as of March 31, 2024[177]. Risks and Challenges - The Company is exposed to credit risk, with one U.S. government agency representing the majority of its research and development revenue and accounts receivable[194]. - Inflation has contributed to increased costs in research and development and operating expenses, potentially affecting gross margins and cash flows[195]. - The Company has not recognized any losses from credit risks on cash, which is primarily held in U.S. financial institutions[193]. - The Company maintains a large amount of cash, with fixed interest rates on current borrowings, making it less sensitive to interest rate changes[191]. - The Company is classified as an emerging growth company, allowing it to delay the adoption of certain accounting standards[185].
ROSECLIFF ACQU(RCLF) - 2024 Q1 - Quarterly Report