Spectral Ai, Inc. · NASDAQ:MDAI
Spectral Ai — Rosecliff Acquisition Corp I — SPAC Merger (August 2023)
35 slides from Spectral Ai's SPAC merger presentation, Aug 10, 2023
Slide 1: AI company focusing on predictive medical diagnostics
An artificial intelligence company focusing on predictive medical diagnostics to deliver faster and more accurate treatment decisions
Slide 2: Today's Presenters
Wensheng Fan Co - Founder and Chief Executive Officer Vincent Capone General Counsel and Corporate Secretary Today’s Presenters Spectral MD Rosecliff Acquisition Corp I Michael Murphy Chief Executive Officer 2
Slide 3: Investment Highlights
Spectral MD is building on $130+mm U.S. Government contracts for the Burn Indication and to expand our AI technology platform into Diabetic Foot Ulcers (DFU) and multiple other clinical indications • AI Driven Assessment: DeepView System empowers healthcare providers to make an immediate, informed a
Slide 4: About Rosecliff Acquisition Corp I
4 About Rosecliff Acquisition Corp I (NASDAQ: RCLF) • Michael Murphy, CEO • Founder & Managing Partner, Rosecliff Ventures • Jordan Zimmerman, President • Founder & Chairman, Zimmerman Advertising • Brian Radecki, Chairman of the Board • CEO, Rapa Therapeutics; Previously CFO, CoStar Experienced Man
Slide 5: Seeing what the naked eye cannot, thinking what the human brain cannot
Seeing what the naked eye cannot Thinking what the human brain cannot
Slide 6: DeepView imaging and AI wound healing prediction
• Patented proprietary multi - spectral imaging data acquisition in milliseconds • Obtain wound tissue physiology and viability biomarkers • Extraction of AI model features from raw imaging data • Combined with Patient health matrix data • Pre - processing for AI • AI model trained and tested agains
Slide 7: Multispectral Clinical Image Database for AI Model Building
Multispectral Clinical Image Database for AI Model Building • Pattern recognition for tissue pathology • Patient health matrix data • AI Model is inclusive of Fitzpatrick scale of skin tones AI Architecture Algorithm Update • Comparison of AI output to Ground Truth identifies differences • Backpropa
Slide 8: One Imaging Platform, Many Indications
D EEP V IEW D ATA AI M ODEL Burn DFU Burn indication investment accelerates expansion into DFU and other indications TAM $11bn CAGR 6.8% (2) TAM $3.7bn CAGR 6.9% (1) Military Miniaturized Mobile Home Healthcare Snapshot M (fully handheld) 3D Measurement (POC ready) Digital Guided Therapy VLU Cosmeti
Slide 9: Burn wounds: current market problem and DeepView impact
Average length of stay (LOS): (1) 8.1 days Burn Professional Diagnostic accuracy: (2)(3) 50 - 75% Average cost of stay: (1) $24,000 Wait to determine the need for surgery: up to 21 days C URRENT M ARKET P ROBLEM Burn Wounds DeepView Diagnostic accuracy: (4) 92% in seconds Reduce average length of st
Slide 10: Diabetic Foot Ulcers: current market problem and DeepView impact
No diagnostic tool available Standard of Care (SOC) for DFU wound care: Wait 30 days Requires advanced therapy or revascularization 40% non - responsive (3) Diabetic Foot Ulcers (DFU) SOC effectiveness: 5.2 million DFU patients/year (1) 15.5 visits per year (1) Cost of up to $63,100 per DFU patient
Slide 11: BARDA funding for Burn indication
Burn I 2013 – 2019 Total BARDA Funding of $26mm Burn II 2019 - 2023 Total BARDA Funding of $96.9mm Base Option 1A Option 1B Options 1B Mod Option 2 Goal Proof of concept Prototype development Human clinical trials Gen 1&2 development and FDA clearance Gen 3 development Faster, more accurate performa
Slide 12: BARDA Burn Sources Sought Notice
Under this SSN, BARDA is specifically seeking burn wound imaging technologies that could enable physicians to efficiently triage burn patients and make more informed treatment decisions. The technologies sought are expected to function in routine healthcare settings such as emergency departments (ED
Slide 13: BARDA requirements met by DeepView
The system BARDA is looking for needs to handle “%TBSA” (percentage of body burned) – which is a triage component - and quickly show “non - healing and healing” burn injury elements “with a high degree of sensitivity” The product needs to have clinical data from a “variety of adult and pediatric pop
Slide 14: DeepView AI – Systemwide Benefits
DeepView AI – Systemwide Benefits Improve health and cost outcomes for all Clinician I MPROVED P ATIENT O UTCOMES • Increase Efficiency Hospital D ECREASED C OSTS P ER I NPATIENT • Uniformed Clinical decisions • Equality of Care • Government Digital Initiatives Patient I MPROVE E XPERIENCE • Reduce
Slide 15: Go To Market Strategy – Burn
To c hange the standard of care through real world evidence of how burns are diagnosed and treated Emergency Depts. Trauma I & II Units Hospital Burn Centers Providers Reduce LOS (3+ Days) (3) US Sites of Service (1) 5,418 Savings per unnecessary surgery (4) $165,000 Go To Market Strategy - Burn Eur
Slide 16: Reimbursement and Revenue Model for DeepView AI Burn
Reimbursement and Revenue Model for DeepView AI Burn Go To Market Strategy – Burn (continued) Short – Term: DRG Reimburse under existing inpatient codes Intermediate: NTAP Gain additional payment for new technology adoption Long - term: Interpretation Code Gain additional payment for new AI interpre
Slide 17: Go To Market Strategy – Diabetic Foot Ulcer
To c hange the standard of care through real world evidence for diagnosis and treatment of DFU Emergency Depts. Community Nursing Wound Care Clinic Foot & Ankle Clinic Podiatry Providers Saving 28 Days to use of Advanced Wound Care products and procedures and surgery (3) US Sites of Service (1) 4,21
Slide 18: Go To Market Strategy – DFU (continued)
To c hange the standard of care through real world evidence for diagnosis and treatment of DFU Go To Market Strategy – DFU (continued) Short – Term: CPT Reimburse under existing inpatient codes Intermediate: APC Gain additional payment for new technology adoption Long - term: Unique AI Code Incremen
Slide 19: Anticipated Regulatory Submissions
3D Measurement DeepView SnapShot M AI DFU AI Burn 2023 2024 2025 2026 D EEP V IEW G EN 3 A NTICIPATED R EGULATORY S UBMISSIONS (1) 19 FDA Breakthrough Designated Status for Burn Indication allows for prioritized reviews and a dedicated line of communication with reviewing members of the FDA. • DeepV
Slide 20: DeepView Snapshot M
Objective : Develop a digital burn assessment tool for military and combat use DeepView Snapshot M is the fully handheld wireless version of the current cart - based DeepView System solution Supported by m ultiple non - dilutive US Department of Defense awards totaling $6+mm since 2017 Designed to t
Slide 21: Upcoming Indications
Additional indications/areas of interest: • 3D Measurement (POC Ready) • Digital Guided Therapy • VLU • Cosmetics • CLI • Amputation • Debridement • Others Upcoming Indications B urn indication investment accelerates expansion into DFU and other indications 21
Slide 22: DeepView 3D wound measurement
DeepView captures a 3D point cloud of imaged tissue and provides accurate wound size measurements Wound size measurements are important for treatment decisions, documentation and compliance Current wound size measurement technologies are lacking clinical adoption: • L imited in accurately/easily mea
Slide 23: DeepView Guided Therapy
DeepView can tell the clinician the “what/when/how” of using a wound therapy D EEP V IEW G UIDED T HERAPY What & When: There are no tools to provide clinicians with objective data for determining the optimal type and timing of therapy for a specific patient and wound. Therapy decisions are based on
Slide 24: Strategic Partnerships
EU – Strategic alliance with Royal College of Surgeons Ireland (1) U.S. – Strategic partnership for clinical studies and clinical championship at 13 major centers (1)(2) Established key external development and manufacturing ecosystem for the production and delivery of our DeepView system • Medical
Slide 25: U.S. and Global IP
U.S. and Global IP • Burn/Wound classification on MSI and PPG • Tissue classification on MSI and PPG • Amputation site analysis on MSI, machine learning and healthcare matrix • DFU healing potential prediction and wound assessment on MSI, machine learning and healthcare matrix • High - precision, mu
Slide 26: Management Team
20 yrs+ managing emerging technologies in AI, Imaging and NLP at Sensata, Texas Instruments, and Philips Wensheng Fan Chief Executive Officer/Co - Founder 12 yrs+ of clinical R&D of tissue optics. Served as the PI on multiple NSF, NIH, DoD grants and BARDA contracts Jeffrey Thatcher, PhD Chief Scien
Slide 27: Board and Advisors
Martin Mellish Board of Directors Mike Murphy (1) Toby Cosgrove Strategic Advisory Board John Botts Richard Cotton Non - Executive Chairman • Former President and Chief Executive Officer of Cleveland Clinic and currently serves as an Executive Advisor for Cleveland Clinic • Former President of the A
Slide 28: Summary Financials
Summary Financials Income Statement ($USD mm) 2021A 2022A 2023E (1) Research and development revenue 15,239 25,368 26,433 Cost of revenue (8,187) (14,531) (15,978) Gross profit 7,052 10,837 10,454 Operating costs and expenses: General and administrative 11,231 13,484 19,204 Total operating costs and
Slide 29: SPAC Transaction Overview
$184mm enterprise valuation to market • Implied pro forma market capitalization of $207mm $ 23 M of cash held on the pro forma balance sheet (1)(2) • Assuming no redemptions, SMD will receive proceeds of $4.6mm from T rust Account • Rosecliff expenses capped at $3.25mm • SMD stockholders rolling 100
Slide 30: Public Comps
Public Comps 30 5.9x 21.8x 16.2x 15x 10.9x 6.7x 9.3x 8.5x 7.8x 7.3x 6.7x 6.3x 4.8x 4.3x 3x 1.3x EV/ 2023E Revenue Overall Median: 7.3x Median: 15.0x AI - Enabled Technology Median: 6.5x Healthcare Technology Source: S&P Capital IQ as of 6/13/23.
Slide 31: SpectralMD Key Takeaways
SpectralMD Key Takeaways • Substantial High - Growth Market Opportunities (Geography and Pipeline Applications) • Proprietary AI platform supports scalable recurring revenue model (SaaS) • Strategic clinical and manufacturing partnerships for upcoming regulatory submissions and US, UK and EU product
Slide 32: Appendix
a2 Appendix oa) & 5 ealthcare ogee ¥ ae ncaa _ — *™ Respect (=i Ollaboration Red 3 © 5ee, Q Patient Healing a Vi Unknown Research ep [ QW crestive ee 7e€ Innovation § 2 Inclusion 8Ye% Advanced § Als: = » Burn wn —_ (=) “= 3 Solutions = 3 eee: “Predict Ulcer 5 5 a <x = _ «
Slide 33: Forward Looking Statements
Forward Looking Statements Forward - Looking Statements This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . This includes, without limitation, all statements regarding (i) the proposed business combination (the “Transac
Slide 34: Shareholder Information: Special Information for U.K. Shareholders
Shareholder Information Special Information for U.K. Shareholders Reasons for the AIM Delisting The Company’s Board has resolved, subject to shareholder approval, to implement the AIM Delisting for the following reasons: Delisting from AIM would remove certain complexities and duplication that comes
Slide 35: Disclaimer
Disclaimer Additional Information and Where to Find It This presentation is provided for informational purposes only and contains information with respect to a proposed business co mbi nation among Spectral MD, Rosecliff, Ghost Merger Sub I Inc., a wholly - owned subsidiary of Rosecliff, and Ghost M
Rosecliff Acquisition Corp I — SPAC Merger (August 2023) on 6ix