Full Press Release Details
Provides Business Update and Preliminary Fourth Quarter and Full Year 2022 Financial Results
call and webcast to be held tomorrow, March 15th at 8:30 AM EST
YORK, March 14, 2023 - PAVmed Inc. (Nasdaq: PAVM, PAVMZ) ("PAVmed" or the "Company"), a diversified
commercial-stage medical technology company, operating in the medical device, diagnostics, and digital health sectors, today provided
a business update for the Company and its subsidiaries, Lucid Diagnostics Inc. (Nasdaq: LUCD) ("Lucid") and Veris Health
Inc. ("Veris"), and presented financial results for the year ended December 31, 2022.
webcast will be available at the investor relations section of the Company's website at pavmed.com. Alternatively, to access
the conference call by telephone, U.S.-based callers should dial 877-550-1858 and international listeners should dial 1-848-488-9160.
All listeners should provide the operator with the conference call name "PAVmed, Inc. Business Update Conference Call" to
seeking further details on Lucid are encouraged to visit the company's website at luciddx.com to view the webcast of its
business update call held yesterday, and its corresponding press release.
the past two months, the PAVmed team has executed on its strategic restructuring plan to protect long-term shareholder interests during
challenging market conditions by tightly focusing its efforts and resource allocation on near-term commercial activities and milestones,"
said Lishan Aklog, M.D., PAVmed's Chairman and Chief Executive Officer. "The plan is working and appears to have been
right-sized-extending cash runway while assuring the commercial efforts are adequately resourced. Lucid continues to deliver steady
EsoGuard test volume growth through organic sales and now high-volume testing events and is gaining traction with commercial payors.
Veris' momentum is accelerating with an exciting commercial product, strong customer interest and a powerful business model which
is not dependent on securing third-party reimbursement. I am proud how the team has battled through these challenges and emerged stronger
with a bright commercial future for what remains a diversified portfolio."
from the fourth quarter and recent weeks include:
supplement our unaudited financial results presented in accordance with U.S. generally accepted accounting principles (GAAP), management
provides certain non-GAAP financial measures of the Company's financial results. These non-GAAP financial measures include net
loss before interest, taxes, depreciation, and amortization (EBITDA) and non-GAAP adjusted loss, which further adjusts EBITDA for stock-based
compensation expense, loss on the issuance or modification of convertible securities, the periodic change in fair value of convertible
securities, and loss on debt extinguishment. The foregoing non-GAAP financial measures of EBITDA and non-GAAP adjusted loss are not recognized
terms under U.S. GAAP.
financial measures are presented with the intent of providing greater transparency to the information used by us in our financial performance
analysis and operational decision-making. We believe these non-GAAP financial measures provide meaningful information to assist investors,
shareholders, and other readers of our unaudited financial statements in making comparisons to our historical financial results and analyzing
the underlying performance of our results of operations. These non-GAAP financial measures are not intended to be, and should not be,
a substitute for, considered superior to, considered separately from, or as an alternative to, the most directly comparable GAAP financial
financial measures are provided to enhance readers' overall understanding of our current financial results and to provide further
information for comparative purposes. Management believes the non-GAAP financial measures provide useful information to management and
investors by isolating certain expenses, gains, and losses that may not be indicative of our core operating results and business outlook.
Specifically, the non-GAAP financial measures include non-GAAP adjusted loss, and its presentation is intended to help the reader understand
the effect of the loss on the issuance or modification of convertible securities, the periodic change in fair value of convertible securities,
the loss on debt extinguishment and the corresponding accounting for non-cash charges on financial performance. In addition, management
believes non-GAAP financial measures enhance the comparability of results against prior periods.
reconciliation to the most directly comparable GAAP measure of all non-GAAP financial measures included in this press release for the
three months and year ended December 31, 2022, and 2021 is as follows:
| For the three months ended December 31, | For the year ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue | $ | 112 | $ | 300 | $ | 377 | $ | 500 | ||||||||
| Operating expenses | 24,616 | 19,979 | 91,304 | 54,893 | ||||||||||||
| Other (Income) Expense | 68 | - | 12,311 | 1,733 | ||||||||||||
| Net Loss | 24,572 | 19,679 | 103,238 | 56,126 | ||||||||||||
| Net income (loss) per common share, basic and diluted | $ | (0.23 | ) | $ | (0.21 | ) | $ | (1.00 | ) | $ | (0.42 | ) | ||||
| Net loss attributable to common stockholders | (20,532 | ) | (17,285 | ) | (89,264 | ) | (50,630 | ) | ||||||||
| Preferred Stock dividends and deemed dividends | 71 | 67 | 281 | 283 | ||||||||||||
| Net income (loss) as reported | (20,461 | ) | (17,218 | ) | (88,983 | ) | (50,347 | ) | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization expense 1 | 1,426 | 198 | 2,457 | 226 | ||||||||||||
| Interest expense, net | 223 | - | 1,272 | 53 | ||||||||||||
| EBITDA | (18,812 | ) | (17,020 | ) | (85,254 | ) | (50,068 | ) | ||||||||
| Other non-cash or financing related expenses: | ||||||||||||||||
| Stock-based compensation expense 2 | 4,949 | 4,380 | 19,532 | 15,009 | ||||||||||||
| Debt extinguishment 2 | 311 | - | 5,434 | 3,715 | ||||||||||||
| Acquisition related | 226 | - | 653 | 133 | ||||||||||||
| Change in FV convertible debt | (466 | ) | - | 1,273 | (1,682 | ) | ||||||||||
| Offering costs convertible debt | - | - | 4,332 | - | ||||||||||||
| Other non-cash charges | - | - | - | (300 | ) | |||||||||||
| Non-GAAP adjusted (loss) | (13,792 | ) | (12,640 | ) | (54,030 | ) | (33,193 | ) | ||||||||
| Basic and Diluted shares outstanding | 89,759 | 83,307 | 89,076 | 77,516 | ||||||||||||
| Non-GAAP adjusted (loss) income per share | $ | (0.15 | ) | $ | (0.15 | ) | $ | (0.61 | ) | $ | (0.43 | ) |
Included in general and administrative expenses in the financial statements.
Included in other income and expenses.
| Non-GAAP Operating Expenses | For the three months ended December 31, | For the year ended December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Cost of revenue | 1,618 | 441 | 3,614 | 585 | ||||||||||||
| Stock-based compensation expense | (7 | ) | - | (16 | ) | - | ||||||||||
| Net cost of revenue | 1,611 | 441 | 3,598 | 585 | ||||||||||||
| Amortization of acquired intangible assets | 506 | 123 | 1,784 | 146 | ||||||||||||
| Sales and marketing expense | 5,759 | 3,340 | 19,318 | 8,895 | ||||||||||||
| Stock-based compensation expense | (605 | ) | (363 | ) | (2,464 | ) | (1,177 | ) | ||||||||
| Net sales and marketing expense | 5,154 | 2,977 | 16,854 | 7,718 | ||||||||||||
| General and administrative expense total | 10,059 | 9,106 | 41,041 | 25,420 | ||||||||||||
| Depreciation and amortization expense | (920 | ) | (75 | ) | (673 | ) | (80 | ) | ||||||||
| Stock-based compensation expense | (3,985 | ) | (3,711 | ) | (16,001 | ) | (12,799 | ) | ||||||||
| Net general and administrative expense | 5,154 | 5,320 | 24,367 | 12,541 | ||||||||||||
| Research and development expense total | 6,674 | 6,969 | 25,547 | 19,847 | ||||||||||||
| Stock-based compensation expense | (352 | ) | (306 | ) | (1,051 | ) | (1,033 | ) | ||||||||
| Net research and development expense | 6,322 | 6,663 | 24,496 | 18,814 | ||||||||||||
| Total operating expenses | 24,616 | 19,979 | 91,304 | 54,893 | ||||||||||||
| Depreciation and amortization | (1,426 | ) | (198 | ) | (2,457 | ) | (226 | ) | ||||||||
| Stock-based compensation expense | (4,949 | ) | (4,380 | ) | (19,532 | ) | (15,009 | ) | ||||||||
| Net Non-GAAP operating expenses | 18,241 | 15,401 | 69,315 | 39,658 |
PAVmed and its Subsidiaries
Inc. is a diversified commercial-stage medical technology company operating in the medical device, diagnostics, and digital health sectors.
Its majority-owned subsidiary, Lucid Diagnostics Inc. (Nasdaq: LUCD), is a commercial-stage cancer prevention medical diagnostics company
that markets the EsoGuard Esophageal DNA Test and EsoCheck Esophageal Cell Collection Device-the
first and only commercial tools for widespread early detection of esophageal precancer to prevent esophageal cancer deaths. Its other
majority-owned subsidiary, Veris Health Inc., is a digital health company focused on enhanced personalized cancer care through remote
patient monitoring using implantable biologic sensors with wireless communication along with a custom suite of connected external devices.
Veris is concurrently developing an implantable physiological monitor, designed to be implanted alongside a chemotherapy port, which
will interface with the Veris Cancer Care Platform.
more and for more information about PAVmed, please visit pavmed.com.
more information about Lucid Diagnostics, please visit luciddx.com.
more information about Veris Health, please visit verishealth.com.
press release includes forward-looking statements that involve risk and uncertainties. Forward-looking statements are any statements
that are not historical facts. Such forward-looking statements, which are based upon the current beliefs and expectations of PAVmed's
management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Risks
and uncertainties that may cause such differences include, among other things, volatility in the price of PAVmed's common stock;
general economic and market conditions; the uncertainties inherent in research and development, including the cost and time required
to advance PAVmed's products to regulatory submission; whether regulatory authorities will be satisfied with the design of and
results from PAVmed's clinical and preclinical studies; whether and when PAVmed's products are cleared by regulatory authorities;
market acceptance of PAVmed's products once cleared and commercialized; PAVmed's ability to raise additional funding as needed;
and other competitive developments. In addition, PAVmed has been monitoring the COVID-19 pandemic and the pandemic's impact on
PAVmed's businesses. These factors are difficult or impossible to predict accurately and many of them are beyond PAVmed's
control. In addition, new risks and uncertainties may arise from time to time and are difficult to predict. For a further list and description
of these and other important risks and uncertainties that may affect PAVmed's future operations, see Part I, Item 1A, "Risk
Factors," in PAVmed's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as the same
may be updated in Part II, Item 1A, "Risk Factors" in any Quarterly Report on Form 10-Q filed by PAVmed after its most recent
Annual Report. PAVmed disclaims any intention or obligation to publicly update or revise any forward-looking statement to reflect any
change in its expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the
likelihood that actual results will differ from those contained in the forward-looking statements.
PAVmed and Lucid Diagnostics