Full Press Release Details
Provides Business Update and Second Quarter 2024 Financial Results
reports record quarterly EsoGuard test volume and held productive meeting with CMS Medicare Administrative Contractor
(MAC) Palmetto GBA's MolDX Program
Health actively pursuing financing following launch of pilot program with The Ohio State's James Cancer Hospital
call and webcast to be held today, August 13th at 8:30 AM EDT
YORK, August 13, 2024 - 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 Company for the three months ended June 30, 2024.
webcast will take place on Tuesday, August 13, 2024, at 8:30 AM and is accessible in 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 1-800-836-8184
and international listeners should dial 1-646-357-8785. All listeners should provide the operator with the conference call name "PAVmed
Business Update" to join.
the conclusion of the conference call, a replay will be available for 30 days on the investor relations section of the Company's
website at pavmed.com.
strategy for PAVmed remains to strengthen its finances and long-term stability by seeking to have each of its subsidiaries become independently
financeable and well-positioned to leverage PAVmed's shared infrastructure," said Lishan Aklog, M.D., PAVmed's
Chairman and Chief Executive Officer. "Lucid remains PAVmed's strongest asset and it has been able to independently finance
its operations and continue to make solid progress over multiple fronts towards fulfilling its large commercial potential. PAVmed's
two other subsidiaries, Veris Health and the PMX incubator are also advancing consistent with this strategy, with Veris and PMX asset
PortIO actively pursuing independent financing.
from the second quarter and recent weeks:
Condensed Consolidated Statement of Operations (Unaudited)
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in thousands except per-share amounts) | ||||||||||||||||
| Revenue | $ | 979 | $ | 166 | $ | 1,989 | $ | 612 | ||||||||
| Operating expenses | 14,663 | 16,650 | 29,711 | 37,496 | ||||||||||||
| Other (Income) Expense | 1,230 | 1,408 | 5,704 | 3,222 | ||||||||||||
| Net Loss | 14,914 | 17,892 | 33,426 | 40,106 | ||||||||||||
| Net income (loss) per common share, basic and diluted | $ | (1.19 | ) | $ | (2.10 | ) | $ | (3.78 | ) | $ | (4.86 | ) | ||||
| Net loss attributable to common stockholders | (10,908 | ) | (14,612 | ) | (33,696 | ) | (32,617 | ) | ||||||||
| Preferred Stock dividends and deemed dividends | 81 | 75 | 7,657 | 149 | ||||||||||||
| Net income (loss) as reported | (10,827 | ) | (14,537 | ) | (26,039 | ) | (32,468 | ) | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization expense 1 | 305 | 747 | 891 | 1,474 | ||||||||||||
| Interest expense, net 2 | (99 | ) | 65 | (156 | ) | 128 | ||||||||||
| NCI ownership share of Interest and Depreciation adjustments | (40 | ) | (225 | ) | (180 | ) | (403 | ) | ||||||||
| EBITDA | (10,661 | ) | (13,950 | ) | (25,484 | ) | (31,269 | ) | ||||||||
| Other non-cash or financing related expenses: | ||||||||||||||||
| Stock-based compensation expense 3 | 1,904 | 2,507 | 3,786 | 6,926 | ||||||||||||
| ResearchDx acquisition/settlement paid in stock 1 | - | - | - | 713 | ||||||||||||
| Operating expenses issued in stock 1 | 140 | 625 | 163 | 625 | ||||||||||||
| Change in FV convertible debt 2 | 566 | 340 | 2,728 | 1,380 | ||||||||||||
| Offering costs convertible debt 2 | - | - | - | 1,186 | ||||||||||||
| Loss on debt extinguishment 2 | 763 | 743 | 1,132 | 1,268 | ||||||||||||
| Debt modification expense | - | - | 2,000 | - | ||||||||||||
| Other non-cash charges | - | - | - | - | ||||||||||||
| NCI ownership share of non-GAAP adjustments | (363 | ) | (450 | ) | (602 | ) | (2,192 | ) | ||||||||
| Non-GAAP adjusted (loss) | $ | (7,651 | ) | $ | (10,185 | ) | $ | (16,277 | ) | $ | (21,363 | ) | ||||
| Basic and Diluted shares outstanding | 9,153 | 6,957 | 8,924 | 6,716 | ||||||||||||
| Non-GAAP adjusted (loss) income per share | $ | (0.84 | ) | $ | (1.46 | ) | $ | (1.82 | ) | $ | (3.18 | ) |
Included in general and administrative expenses in the financial statements.
Included in other income and expenses.
Stock-based compensation ("SBC") expense included in operating expenses is detailed as follows in the table below by
category within operating expenses for the non-GAAP Net operating expenses:
Reconciliation of GAAP Operating Expenses to Non-GAAP Net Operating Expenses
| (in thousands except per-share amounts) | For the three months ended June 30, | For the six months ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Cost of revenue | $ | 1,666 | $ | 1,685 | $ | 3,411 | $ | 3,030 | ||||||||
| Stock-based compensation expense 3 | (44 | ) | (31 | ) | (80 | ) | (54 | ) | ||||||||
| Net cost of revenue | 1,622 | 1,654 | 3,331 | 2,976 | ||||||||||||
| Amortization of acquired intangible assets | 105 | 505 | 477 | 1,010 | ||||||||||||
| Sales and marketing | 4,242 | 4,339 | 8,552 | 8,877 | ||||||||||||
| Stock-based compensation expense 3 | (387 | ) | (455 | ) | (790 | ) | (899 | ) | ||||||||
| Net sales and marketing | 3,855 | 3,884 | 7,762 | 7,978 | ||||||||||||
| General and administrative | 7,009 | 6,652 | 13,688 | 17,060 | ||||||||||||
| Depreciation expense | (200 | ) | (242 | ) | (414 | ) | (464 | ) | ||||||||
| ResearchDx acquisition/settlement paid in stock | - | - | - | (713 | ) | |||||||||||
| Operating expenses issued in stock | (140 | ) | (625 | ) | (163 | ) | (625 | ) | ||||||||
| Stock-based compensation expense 3 | (1,214 | ) | (1,674 | ) | (2,292 | ) | (5,262 | ) | ||||||||
| Net general and administrative | 5,455 | 4,111 | 10,819 | 9,996 | ||||||||||||
| Research and development | 1,641 | 3,469 | 3,583 | 7,519 | ||||||||||||
| Stock-based compensation expense 3 | (259 | ) | (347 | ) | (624 | ) | (711 | ) | ||||||||
| Net research and development | 1,382 | 3,122 | 2,959 | 6,808 | ||||||||||||
| Total operating expenses | 14,663 | 16,650 | 29,711 | 37,496 | ||||||||||||
| Depreciation and amortization expense | (305 | ) | (747 | ) | (891 | ) | (1,474 | ) | ||||||||
| ResearchDx acquisition/settlement paid in stock | - | - | - | (713 | ) | |||||||||||
| Operating expenses issued in stock | (140 | ) | (625 | ) | (163 | ) | (625 | ) | ||||||||
| Stock-based compensation expense 3 | (1,904 | ) | (2,507 | ) | (3,786 | ) | (6,926 | ) | ||||||||
| Net operating expenses | $ | 12,314 | $ | 12,771 | $ | 24,871 | $ | 27,758 |
PAVmed and its Subsidiaries
Inc. is a diversified commercial-stage medical technology company operating in the medical device, diagnostics, and digital health sectors.
Its 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 mitigate the risks of esophageal cancer deaths. Its other
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 risks 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
and Lucid'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
and Lucid's common stock; PAVmed's Series Z warrants; general economic and market conditions; the uncertainties inherent
in research and development, including the cost and time required to advance PAVmed's and Lucid's products to regulatory
submission; whether regulatory authorities will be satisfied with the design of and results from PAVmed's and Lucid's clinical
and preclinical studies; whether and when PAVmed's and Lucid's products are cleared by regulatory authorities; market acceptance
of PAVmed's and Lucid's products once cleared and commercialized; PAVmed's and Lucid's ability to raise additional
funding as needed; and other competitive developments. 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 and
Lucid's future operations, see Part I, Item 1A, "Risk Factors," in PAVmed's and Lucid'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 or Lucid after its most recent Annual Report. PAVmed and Lucid disclaim 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.
and Lucid Diagnostics