Spectral AI Inc (NASDAQ:MDAI) stock is trading higher Thursday morning after the medical diagnostics company said it received $31.7 million in new funding from the Biomedical Advanced Research and Development Authority, or BARDA, to accelerate development of its DeepView System burn wound imaging platform.

Here’s what investors need to know.

BARDA Award Adds Immediate Non-Dilutive Funding For Spectral AI

The company said the award is immediate, non-dilutive funding and comes on top of the $54.9 million already committed under its existing BARDA contract, which carries a total potential value of up to $150 million. Spectral AI also said it will contribute an additional $9.7 million toward the overall development costs tied to these feature advancements.

Investors appeared to welcome the update because the funding supports product development without issuing new shares, while also reinforcing the company's relationship with a key U.S. government agency.

DeepView Features Support FDA Efforts And Burn Care

According to Spectral AI, the contract modification will help advance additional features of the DeepView System, support continued development and FDA clearance efforts, and speed Phase II initiatives including total body surface area mapping and analysis.

DeepView is being developed for emergency departments, trauma centers and burn centers, both for routine burn care and as a medical countermeasure for mass casualty burn incidents. Management said the technology is designed to help physicians make faster, data-driven clinical treatment decisions in wound care.

MDAI RSI Stays Mostly Neutral Over Past Year

Spectral AI's RSI mostly stayed in the neutral range, with periodic spikes into overbought territory above 70 and occasional dips near or below 30 indicating brief oversold conditions.

Overall, momentum appears cyclical rather than trending, with no sustained extreme signals over the period.

MDAI Shares Climb Thursday Morning

MDAI Price Action: Spectral AI shares were up 8.33% at $1.30 at the time of publication on Thursday, according to Benzinga Pro data.

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