Spotlight 🔍 Light AI

App-solutely Revolutionary:
Light AI Brings AI-Powered
Rapid Tests to Your Smartphone

• Newly listed on the CBOE/NEO Canada Exchange (symbol: ALGO), Light AI Inc. is set to launch its disruptive AI-powered app in 2025, which will turn smartphones into powerful tools for rapid test disease detection — a market forecasted to exceed US$30 billion by 2030.
• Starting with a focus on Group A Streptococcus (“GAS” or “Strep A”), which infects over 600 million people annually worldwide, killing as many children as malaria, Light AI has developed multiple go-to-market strategies aligned with global efforts to combat antibiotic overuse and the rise of drug-resistant infections.
• As the first-and-only AI-enabled mover in the massive rapid test market, Light AI’s patented, app-based solution provides highly accurate results in under a minute without the need for swabs, lab tests, or proprietary hardware. All you need is a smartphone, and the app will guide you through the process.  
• Supported by expert leadership and five granted patents, Light AI is poised for rapid scaling in the AI healthcare market, leveraging the global installed base of over 4 billion smartphones to bring smartphone diagnostics to the world, bringing a dramatic improvement to healthcare access globally.  

"Light AI’s model eliminates the traditional barriers of distributing hardware and test strips or swabs that have hindered many diagnostic companies in the past. Imagine partnering with a global smartphone company like Samsung or Apple — our app could be on over 1 billion smartphones overnight with a simple software update."
— Hugh Cleland, Light AI Inc.

The transformative impacts of Light AI’s technology will be myriad, revolutionizing rapid diagnostics with fast, affordable, and highly accurate testing solutions worldwide.

Imagine this: A mother arrives at school to pick up her child, only to find them sitting in the nurse's office with a sore throat.

The nurse suggests it could be Strep throat, but without a lab test, there’s no way to know for sure. Instead of rushing to a clinic or waiting days for results, the mother takes out her smartphone, opens an app, and snaps a quick photo of her child’s throat.

Within seconds, the app delivers the answer: No Strep A detected. Relieved, she knows it’s safe to take her child home for some rest and fluids — no doctor’s visit or unnecessary antibiotics required.

This is the kind of transformation Light AI Inc. will bring to healthcare around the world — where smartphones become portable diagnostic labs.

Freshly listed on the CBOE/NEO Exchange, under the symbol ALGO, Light AI Inc. is developing a next-generation technology platform that uses AI algorithms to analyze smartphone images for rapid disease detection.

Starting with Group A Streptococcus (“GAS” or “Strep A”), Light AI’s patented, app-based solution delivers results in seconds — eliminating the need for swabs, lab tests, or proprietary hardware.

In pre-FDA validation studies, Light AI’s algorithm showcased exceptional performance in distinguishing between viral and bacterial pharyngitis, specifically targeting Strep A.

The algorithm achieved over 96% accuracy and a 97% match to the “Gold Standard” swab culture testing method. It also demonstrated a 100% Negative Predictive Value (NPV), underscoring its reliability in confirming the absence of infection.

“This level of precision is crucial in reducing the unnecessary use of antibiotics. Our solution can quickly tell you that you don’t have Strep, and as such, you don’t need antibiotics,” said Hugh Cleland, a Light AI director.

This approach, he said, not only protects patients from unnecessary medication but also aligns with global healthcare initiatives aimed at combating the rise of drug-resistant infections.

A 2005 study by the World Health Organization concluded that Strep A infects over 600 million people annually and claims more than half a million lives, killing as many children each year as malaria. Additionally, the agency estimates that the growing threat of antimicrobial resistance could cost the world up to $1 trillion in healthcare expenses by 2050.

Health data from the U.S. shows that antibiotics are given to six out of 10 patients with sore throats, while only two of these cases are actually bacterial infections. This over-prescription of antibiotics, which leads to microbial resistance to drugs, is a top five global health threat, according to WHO.

"Our mission at Light AI is to change that by delivering fast, accurate testing so healthcare professionals can make informed decisions about when antibiotics are truly necessary,” said Cleland.

To get to where it is today, Light AI has spent close to $20 million in research and development since 2016, collaborating with 13 leading research and educational institutions, including the UCLA Health Network and the University of Rhode Island Health Network.

Through these partnerships, Light AI has gathered a robust dataset of approximately 300,000 images and corresponding Gold Standard swab results from nearly 20,000 patients, which has been instrumental in training its advanced AI model to detect Strep A via smartphones.

Light AI’s dataset is believed to be the largest cloud-based repository of clinical images of the Oropharynx, the middle part of the throat, behind the mouth.

“Our large and expanding database of images can potentially be used to detect other diseases, enabling quick and accessible diagnosis for countless conditions that today require expensive and time-consuming lab processes,” said Cleland.

Beyond Strep A, Light AI’s vision extends to diagnosing other conditions, including cardiovascular, neurological and autoimmune conditions, by applying AI algorithms to images of the eye and skin, as well as images of the throat.  It is possible to detect markers for such a wide range of conditions because the eyes, skin and throat are all windows to one’s systemic health. 

According to MarketsandMarkets.com, the global artificial intelligence (AI) in healthcare market, valued at $14.92 billion in 2024, is expected to grow to a massive $164.16 billion by 2030.

The market research firm notes that rising demand for enhanced health services incorporating AI, machine learning (ML), and data analytics, along with growing government support, has heightened awareness of diagnostic imaging. Together, these factors are driving the increasing adoption of AI tools in the healthcare industry.

Against this backdrop, Light AI has secured three US patents, one European patent, and one Australian patent for its core technology, bringing the company closer to its ultimate goal of integrating smartphones with AI-powered cloud technology to develop a "Digital Clinical Lab.

The company’s most recently granted patent, titled "Infection Detection Using Image Data Analysis," positions Light AI’s intellectual property as a comprehensive package, collectively patenting the ability to diagnose diseases using smartphone images.

“This underscores the natural trajectory for Light AI: acquisition by a global smartphone player seeking to dominate the smartphone diagnostics market,” said Cleland.

Cleland emphasized that Light AI’s team is one of the best he has ever seen for a company of this size:
“Members of the company’s management, directors, officers, and advisory teams come from senior roles at organizations such as Johnson & Johnson, Medtronic, Bristol Myers Squibb, the CDC, and WHO,” he said.

“For instance, our regulatory advisor spent 16 years navigating regulatory issues at Medtronic, including serving as Vice President of Regulatory Affairs.”

The company’s founder and CEO, Peter Whitehead, is a globally recognized leader in applying algorithms to healthcare data and images.  Whitehead is best known for inventing the VELscope, the market-dominating oral cancer and oral disease visualization and assessment system: The VELscope has been utilized in more than 50 million clinical examinations by over 10,000 dental practitioners worldwide and is a five-time winner of the American Dental Association’s ‘Best of Class’ Technology Award.

Thomas Scarnecchia, Light AI’s COO, is the former VP of Johnson & Johnson R&D with over three decades of expertise in building data science and computational science teams.

Light AI’s board includes Emmanuel Blin, the former Chief Strategy Officer at Bristol Myers Squibb.   Blin founded TC4A, the global digital healthcare platform that is Light AI’s primary distribution partner in African and India. “It is rare to find a small company with such a well-connected global luminary as Mr.  Blin,” said Cleland.

Steve Semmelmayer, the former CEO of LED Medical Diagnostics, Mark Attanasio, co-founder of investment bank Eight Capital, and Cleland, co-founder of VC firm Roadmap Capital, round out the Board.

With this team and its advisory group, Cleland said Light AI is set to launch its patented platform to detect diseases, starting with Strep A, this year.

“It will be simple to use for an accurate Strep A result in less than a minute — no swabs, labs, or proprietary hardware required — just a smartphone,” said Cleland, who specializes in disruptive technologies.

Light AI Inc. — A Top Pick at CEM’s 8th Annual Florida Capital Event

Before it’s IPO, Light AI was a private company based in British Columbia that gained recognition as a Top Pick at CEM’s 8th Annual Florida Capital Event last November. At the event's signature Investor Breakout Exchange, the consensus was clear: Light AI's innovative technology and approach hold immense potential to revolutionize traditional healthcare models by making diagnostics faster, cheaper, more efficient, and universally accessible.

Stock Information CBOE/NEO: ALGO

1. As of market close on Monday January 13, 2025
2. Listing date on January 8, 2025

Shortly after Light AI’s successful listing on the CBOE/NEO Exchange last week, I connected with company director Hugh Cleland, for this exclusive Spotlight Q&A.

What differentiates Light AI's technology and solutions from others in this space?

“Light AI has been able to crack the code of smartphone diagnostics, achieving diagnostic-level metrics in Strep A by applying AI algorithms to smartphone images, and delivering these capabilities through a smartphone app. Many companies have tried and failed to be able to diagnose disease using smartphone images, going all the way back to when the iPhone was first introduced in 2007.  It is a stunning achievement that Light AI stands apart in the healthcare industry with no direct competitors now or on the horizon. With the potential to expand into many other conditions over time, the  company’s patents not only protect the current scope of the company’s operations but also make Light AI an attractive acquisition candidate for one of the global smartphone players that may want to have the smartphone diagnostics market to itself.

Light AI’s model is powered by an extensive and growing database of over 300,000 clinical images, collected in partnership with leading healthcare and research institutions. This robust dataset enables exceptional accuracy and a 100% negative predictive value, making it highly reliable in distinguishing between viral and bacterial infections. Even if a competitor could replicate our database of throat images, they don’t know our trade secrets and confidential intellectual property, key aspects of which are not intuitive and are non-obvious.  It is our combination of algorithm development expertise, patents and trade secrets which gives me confidence that it will be years before a competitor can come close to Light AI’s achievements, let alone match them.

Moreover, Light AI’s solution is uniquely accessible running directly on a smartphone without requiring swabs, labs, or additional hardware. This capital-light approach eliminates traditional barriers to growth, positioning Light AI to scale rapidly and revolutionize healthcare diagnostics in ways that others in the field cannot achieve.”

What is the addressable market for Light AI's technology, current and future, and how does the company plan to capture a significant share of it?

“For the next two years, I expect we will be laser-focused on executing on the three go-to-market paths that we have already identified and for which we have developed plans.  We are the first-and-only-mover in each of these three markets, so we want to run as fast as possible. With Strep A being a life-threatening condition that infects over 600 million people per year globally, the opportunity right in front of us is more than enough to create a multi-billion-dollar company: each of our three go-to-market paths has an addressable market of over US$1 billion a year.

The first go-to-market path involves our Screening Product which targets lower-middle-income markets such as Africa and India where there is an urgent need for affordable and accessible healthcare solutions. For the screening product, Light AI has partnered with Tech Care For All (TC4A), a company dedicated to bringing life-changing, life-saving digital health technologies to underserved communities across Africa and Asia. TC4A was founded by Light AI Board member Emmanuel Blin.  TC4A operates a global medical learning platform with approximately 120,000 healthcare providers actively engaged in over 20 of Light AI’s target countries. This partnership will allow Light AI’s platform to be introduced as a screening tool in the non-FDA-regulated markets of Africa and India in 2025, contributing greatly to the ability to control Strep A in those countries, where Strep A kills as many children as malaria.  The market here is huge, with an addressable market of about 500 million tests per year, with revenue ranging from US$1 to US$5 per test. 

The second go-to-market path is the path which requires FDA approval. This solution, for which we are targeting a pivotal trial in Q3 of this year, is aimed at doctor-mediated applications requiring regulatory compliance, including telehealth applications.  The market here is huge, too, with an addressable market of over US$ 1 billion a year from 70 million doctor visits per year in the United States that could involve our test, and revenue of US$16 per test from a pre-existing CPT code (Current Procedural Terminology code) for the existing Strep A rapid test - a test which my doctor insists is no more helpful than flipping a coin.

The third go-to-market path is a consumer-focused Wellness Product that we do not expect will require FDA approval, making it easier and faster for Light AI to enter this market.  In this market, we are not seeking to diagnose Strep A, but rather make suggestions around whether it may be prudent to see a doctor. This could turn out to be our largest market, if we can partner with a global smartphone player to distribute our tests to their entire ecosystem.”  

What’s next for Light AI?

“Being able to diagnose conditions using only images from smartphones represents a massive paradigm shift in the world of medicine and is the Holy Grail in the world of diagnostics. Light AI’s vision is to become the dominant provider of AI-enabled smartphone diagnostics, triage and wellness applications globally.  

With three currently targeted go-to-market opportunities, each having a TAM (Total Addressable Market) of over US$1 billion a year, and only one requiring FDA approval, Light AI is unique among the diagnostic companies I have looked at in my 27-year investment career.   As we expand into more and more indications in the US$30 billion rapid test market, the blue sky is enormous. 

Our recent listing on the CBOE/NEO Exchange in Canada marks a pivotal milestone in our growth journey, providing enhanced liquidity and visibility for our investors. We anticipate strong trading momentum as our technology, patents, and visionary solutions gain greater exposure in capital markets.

This listing strengthens our ability to execute on our long-term objectives, strengthen our market presence and unlock greater value for shareholders.

Our ultimate mission is to empower billions of people worldwide by delivering healthcare diagnostics literally at their fingertips — transforming their smartphones into tools that make quality healthcare affordable and accessible to all.”

Our View

• Disruptive Technology Addressing Global Healthcare Needs
  Light AI’s patented AI-powered technology offers rapid, accurate, and affordable disease detection using just a smartphone, making it uniquely positioned to address critical global health challenges. The technology is ideal for deployment in high-risk or high-traffic environments like hospitals, transportation hubs, long-term care facilities, and sports venues, where rapid screening can prevent the spread of infectious diseases. Its ability to eliminate the need for swabs, labs, or additional hardware disrupts traditional healthcare delivery models and offers convenience, cost savings, and accessibility.
• Massive Market Opportunity and Cost-Saving Potential
  In the U.S. alone, there are 15 million cases of pharyngitis annually, with an average cost of US$270 per visit. Light AI’s technology could potentially eliminate 13.5 million of these visits, saving the healthcare system billions of dollars while improving patient convenience. Globally, the company is addressing a substantial addressable market with 600 million annual Strep A cases. Its mobile-based solutions also tap into the 4 billion smartphones worldwide, providing unparalleled scalability for home diagnostics and healthcare access to enormous populations.
• Scalable Strategy, Strong Leadership, and Visionary Partnerships
  Light AI’s go-to-market strategies target underserved regions and consumer wellness markets, while regulatory-compliant diagnostic solutions are in development. Strategic partnerships, such as with Tech Care For All (TC4A), expand its reach to over 120,000 healthcare providers in Africa and Asia. Backed by a seasoned leadership team, including founder Peter Whitehead, and supported by its robust dataset of over 300,000 clinical images and five key patents, Light AI is well-positioned to scale globally and capture a significant share of the $164 billion AI healthcare market projected by 2030.

Coming this Week!

The AlphaNorth Capital Event in Bahamas
January 17 – January 19, 2025

The 11th Annual AlphaNorth Capital Event is your unmissable gateway to groundbreaking investment opportunities in 2025 and beyond. Set against the breathtaking backdrop of the newly renovated Atlantis Resort in Nassau, this event will feature curated one-on-one meetings that give capital market players direct access to insights from cutting-edge companies across critical sectors.

Warm Regards and Happy Investing,
Fabian Dawson