AI Company Unlocks Breakthrough Medical Diagnostics Platform

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You have a sore throat. Is it a bacterial infection requiring antibiotics? A company being listed on Cboe Canada starting on January 8 said it can help you find out with just your smartphone — and no swabs — in about 45 seconds.

By using artificial intelligence (AI) and your phone's camera, Light AI Inc.'s (ALGO:CBOE) patented app-based solution has attained almost 97% accuracy in pre-FDA validation studies for identifying Streptococcus A (Strep A).

More than 600 million people per year are infected by the disease globally, which kills as many children annually as malaria, the company said in its investor presentation. However, in the U.S., antibiotics are given to six out of 10 patients with sore throats, while only two are actually bacterial infections. Over-prescription of antibiotics, which leads to microbial resistance to the drugs, is a top five global health threat, according to the World Health Organization.

The company, which will be listed under the symbol "ALGO," said strep A is just the start.

"Light AI's approach to applying AI to smartphone images can be expanded to other throat conditions, as well as other areas of analysis, such as the human eye and skin," the company said. "Light AI's vision is to combine the smartphone with AI in-the-Cloud to create a Digital Clinical Lab that provides quick and accessible diagnosis for countless conditions that today require expensive and time-consuming imaging or lab processes."

Process Takes Less Than a Minute

Light AI Chief Executive Officer and founder Peter Whitehead invented the VELscope, a device that uses tissue fluorescence to improve oral screenings for cancer, in 2000.

According to Light AI, it has been used in over 60 million oral health examinations by 12,000 dentists in 25 countries. Whitehead has been integrating large data sets with algorithms for differentiating diseases since 1995.

According to the Centers for Disease Control and Prevention, the rates of serious Strep A infections have been increasing since 2014, with preliminary data from 2023 indicating the number of serious infections has reached a 20-year high.

"Light AI has patented an AI platform to detect infectious diseases by analyzing smartphone images in seconds" and has an "initial target Strep A valuable cloud-based library of 300,000 images" the platform has learned from, the company said.

To use Light AI's app, the patient follows basic instructions for a process that takes less than a minute. It takes seconds for the image to be analyzed in the cloud to give the patient a diagnosis. The same process with doctor's visits and lab tests can take from 24 to 72 hours, Light AI said.

It plans to offer three products: 1) One that provides a positive or negative Strep A result and would require FDA approval; 2) One that provides a viral vs. bacterial infection result that would require regulatory approval in some markets; and 3) A triage function that simply tells the patient their throat "looks abnormal" and they should see a doctor.

It has taken eight years, 14 partners, and US$20 million in capital to get the company where it is today, not including grants and subsidized research.

This year, the company said it plans a clinical study of the platform and to submit an FDA application with possible approval as early as Q4 2025.

CDC: Infections Reach 20-Year High

Common tests for Strep A like throat swabs require expensive testing capabilities that are limited in many countries, Light AI said. Doctors are also not able to accurately identify the disease through a visual inspection.

AI is 99% cheaper than doctor visits, instant, and eliminates contagion risk, ER congestion, and lost wages, the company said.

The agency quoted CDC numbers estimating several million mild Strep A infections, 11,000 to 13,000 severe cases, and 1,100 to 1,600 deaths each year in the U.S.

"With only one-fifth of tests showing a bacterial infection, most doctor visits are unnecessary and could be avoided with digital screening," according to Light AI.

According to the Centers for Disease Control and Prevention, the rates of serious Strep A infections have been increasing since 2014, with preliminary data from 2023 indicating the number of serious infections has reached a 20-year high.

The California Health and Human Services Agency reported many illnesses are caused by Group A Strep, including strep throat, scarlet fever, pneumonia, necrotizing fasciitis, meningitis, and Streptococcal Toxic Shock Syndrome.

The agency quoted CDC numbers estimating several million mild Strep A infections, 11,000 to 13,000 severe cases, and 1,100 to 1,600 deaths each year in the U.S.

"Severe group A strep infections often require hospitalization as these infections require rapid treatment to prevent complications or death," agency officials wrote. "Infections can progress rapidly, so it is very important to see your healthcare provider as soon as possible. Although rare, severe illness or death may occur even with proper antibiotic treatment."

Global Healthcare AI Market to Surge

According to a report by ZDNet's Stephanie Condon, Google also is working on similar technology using smartphones and AI modeling. "The pictures on your camera roll could one day help determine whether you have diabetes," she wrote. "Or you could use your phone's microphone to listen to your heart."

Google researchers are exploring whether photos of the exterior of a person's eye could be used to detect diabetes-related diseases, she noted.

The global AI in healthcare market is expected to reach US$164.16 billion by 2030 from US$14.92 billion in 2024, a CAGR of 49.1%, Markets and Markets reported.

"While this is in the early stages of research and development, our engineers and scientists envision a future where people, with the help of their doctors, can better understand and make decisions about health conditions from their own homes," Greg Corrado, Head of Google Health AI said, according to Condon.

Priori Data reported that there were about 4.88 billion smartphone users worldwide, accounting for about 60% of the world's population. The total number of phones in use is more than 7 billion.

The global AI in healthcare market is expected to reach US$164.16 billion by 2030 from US$14.92 billion in 2024, a CAGR of 49.1%, Markets and Markets reported.

"The rising incidence of chronic diseases, coupled with an increasing geriatric population puts significant financial pressure on healthcare providers," the research firm noted. "Consequently, there is a growing need for the early detection of conditions such as dementia and cardiovascular disorders. This can be achieved by analyzing imaging data to identify patterns, which helps create personalized treatment plans."

The report continued, "The rapid proliferation of AI in the healthcare sector, the rising need for early disease detection, and the growing support from government and private organizations are key factors driving the market growth."

Public Offering Completed

On December 30, 2024, Light AI announced in a release that it had completed a "best efforts" public offering of 30,878,200 units at US$0.55 per unit for aggregate gross proceeds of US$16.98 million, encompassing the primary offering of 29,248,000 units for gross proceeds of US$16.09 million, and partial exercise of the over-allotment option amounting to 1,630,200 units for gross proceeds of US$896,610.

Each unit is comprised of one share and one-half of one share purchase warrant entitling the holder to acquire one share at US$0.80 per share until June 30, 2026.

According to the Light AI investor presentation, the combined companies have a total of 78.4 million shares outstanding.

Formerly Mojave Brands Inc., the offering was part of a business combination move with Light AI Inc., and LAI SPV Corp. Mojave has delisted from the CSE in anticipation of the start of trading of ALGO shares on Cboe Canada on January 8.