DALLAS - Spectral AI, Inc. (NASDAQ:MDAI), a company specializing in AI-driven medical diagnostics for wound care, has alerted Nasdaq and state securities regulators in Florida, Louisiana, and Texas about potential illegal market manipulation of its stock. The company's board member and largest shareholder, Erich Spangenberg, is spearheading the inquiry into suspected naked short selling activities.
Naked short selling is the sale of shares that have not been affirmatively determined to be available to borrow, which is generally prohibited under SEC Regulation SHO. According to Spectral AI's recent SEC filing, there appears to be an artificial increase of over 40% in the company's public float, which Spangenberg attributes to this illicit practice.
Spectral AI's initiative underscores its commitment to investor protection and market integrity. The company is collaborating with regulatory authorities to investigate these concerns and enforce compliance measures.
The Dallas-based Spectral AI is known for its predictive AI technology in the medical field, particularly for its DeepView System. This device provides clinicians with a predictive assessment of wound healing potential, which can lead to improved patient outcomes and potentially lower healthcare costs.
The company's press release also contains forward-looking statements regarding its strategies and financial outlook, which are subject to various risks and uncertainties. These statements are not guarantees of future performance and are cautioned against reliance by investors.
The information in this article is based on a press release statement from Spectral AI, Inc.
In other recent news, Spectral AI, Inc. has seen a flurry of activity. The Dallas-based company is set to join the Russell Microcap Index, reflecting its growth as a public company. The company's DeepView™ System, an AI-driven predictive medical device, recently received UKCA Authorization, marking a significant step towards commercial revenue generation. Spectral AI has also reported a 24.6% increase in Research & Development revenue to $6.3 million, reflecting a solid financial footing.
In addition to these developments, Spectral AI insiders have shown their confidence in the company's progress by purchasing approximately 113,000 shares. However, the company experienced a revision in its stock outlook as BTIG adjusted its price target on the company's shares, largely due to slower-than-expected enrollment in the company's pivotal Burn trial in the United States.
Spectral AI has also made key appointments, naming Erich Spangenberg as the CEO of its healthcare IP subsidiary, Spectral IP, and Jeremiah A. Sparks as its new Chief Commercialization Officer. These appointments come at a critical time as the company moves towards the commercialization of its DeepView™ System. These are the recent developments in Spectral AI, Inc.'s journey.
InvestingPro Insights
In the face of challenges, Spectral AI, Inc. (NASDAQ:MDAI) has shown resilience with certain financial metrics that could be of interest to investors. With a current market capitalization of 27.8 million USD, the company's valuation reflects the competitive and volatile nature of the AI-driven medical diagnostics sector.
An important note for investors is that Spectral AI holds more cash than debt on its balance sheet, which could provide a cushion against short-term market fluctuations and fund ongoing research and development efforts. This is a positive sign of the company's liquidity and financial health. Despite this, it is worth noting that Spectral AI's short-term obligations exceed its liquid assets, which could pose challenges for meeting immediate financial liabilities.
From a profitability standpoint, analysts are not anticipating the company to be profitable this year, and it has not been profitable over the last twelve months. Moreover, the company's stock is trading near its 52-week low, and its price has fallen significantly over the last year.
For those considering an investment in Spectral AI, it is also relevant to mention that the company does not pay a dividend to shareholders, which may influence the investment strategy of income-focused investors.
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