Full Press Release Details
Provides Business Update and Third Quarter Financial Results
quarterly revenue increased 392 percent sequentially
Health commercial expansion efforts underway, with next-generation Veris Cancer Care Platform launching in Q4
call and webcast to be held tomorrow, November 15th at 8:30 AM EST
YORK, November 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 Company for the three and nine months ended September 30, 2023.
webcast will take place on Wednesday, November 15, 2023, 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 1-833-816-1419
and international listeners should dial 412-317-0512. 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.
sustained commercial success and Veris's future commercial execution will be the primary drivers of PAVmed's long-term success,"
said Lishan Aklog, M.D., PAVmed's Chairman and Chief Executive Officer. "As noted in yesterday's Lucid business
update, Q3 was the most important quarter in Lucid's, and therefore PAVmed's, history, as we have now begun to translate
increasing commercial activity into revenue and revenue growth. Whether it be commercial execution, revenue cycle management, laboratory
operations, or clinical research productivity, Lucid is firing on all cylinders. As we have done with Lucid, we are now laying the foundation
for Veris's future commercial success. This includes upgrading the Veris Cancer Care Platform to incorporate early adopter feedback;
restructuring and expanding the commercial infrastructure; engaging with large academic cancer centers; and initiating dialogue with
large pharma companies to have our platform serve as a digital companion to novel cancer therapeutics undergoing market surveillance."
from the third quarter and recent weeks include:
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| (in thousands except per-share amounts) | ||||||||||||||||
| Revenue | $ | 791 | $ | 76 | $ | 1,403 | $ | 265 | ||||||||
| Operating expenses | 16,319 | 23,443 | 53,815 | 66,751 | ||||||||||||
| Other (Income) Expense | 6,222 | 6,565 | 9,443 | 12,180 | ||||||||||||
| Net Loss | 21,750 | 29,932 | 61,855 | 78,666 | ||||||||||||
| Net income (loss) per common share, basic and diluted | $ | (0.16 | ) | $ | (0.29 | ) | $ | (0.48 | ) | $ | (0.78 | ) | ||||
| Net loss attributable to common stockholders | (17,748 | ) | (26,197 | ) | (50,365 | ) | (68,732 | ) | ||||||||
| Preferred Stock dividends and deemed dividends | 77 | 71 | 226 | 209 | ||||||||||||
| Net income (loss) as reported | (17,671 | ) | (26,126 | ) | (50,139 | ) | (68,523 | ) | ||||||||
| Adjustments: | ||||||||||||||||
| Depreciation and amortization expense 1 | 733 | 700 | 2,207 | 1,731 | ||||||||||||
| Interest expense, net 2 | 35 | 471 | 162 | 986 | ||||||||||||
| NCI ownership share of Interest and Depreciation adjustments | (159 | ) | (136 | ) | (470 | ) | (312 | ) | ||||||||
| EBITDA | (17,062 | ) | (25,091 | ) | (48,240 | ) | (66,118 | ) | ||||||||
| Other non-cash or financing related expenses: | ||||||||||||||||
| Stock-based compensation expense 3 | 2,245 | 4,764 | 9,171 | 14,583 | ||||||||||||
| ResearchDx acquisition paid in stock | - | 188 | 713 | 427 | ||||||||||||
| Change in FV convertible debt 2 | 4,392 | (261 | ) | 5,772 | 1,739 | |||||||||||
| Offering costs convertible debt 2 | - | 1,232 | 1,186 | 4,332 | ||||||||||||
| Loss on debt extinguishment | 1,764 | 5,123 | 3,032 | 5,123 | ||||||||||||
| Change in fair value - derivative liability | 31 | - | 291 | - | ||||||||||||
| Other non-cash charges | - | 25 | - | 82 | ||||||||||||
| NCI ownership share of non-GAAP adjustments | (1,040 | ) | (864 | ) | (2,733 | ) | (2,721 | ) | ||||||||
| Non-GAAP adjusted (loss) | $ | (9,670 | ) | $ | (14,884 | ) | $ | (30,808 | ) | $ | (42,553 | ) | ||||
| Basic and Diluted shares outstanding | 111,941 | 89,759 | 104,516 | 87,724 | ||||||||||||
| Non-GAAP adjusted (loss) income per share | $ | (0.09 | ) | $ | (0.17 | ) | $ | (0.29 | ) | $ | (0.49 | ) |
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 September 30, | For the nine months ended September 30, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||
| Cost of revenue | $ | 1,779 | $ | 1,626 | $ | 4,809 | $ | 1,996 | ||||||||
| Stock-based compensation expense 3 | (32 | ) | (9 | ) | (86 | ) | (9 | ) | ||||||||
| Net cost of revenue | 1,747 | 1,617 | 4,723 | 1,987 | ||||||||||||
| Amortization of acquired intangible assets | 505 | 505 | 1,516 | 1,278 | ||||||||||||
| Sales and marketing | 4,016 | 4,736 | 12,893 | 13,559 | ||||||||||||
| Stock-based compensation expense 3 | (403 | ) | (643 | ) | (1,302 | ) | (1,859 | ) | ||||||||
| Net sales and marketing | 3,613 | 4,093 | 11,591 | 11,700 | ||||||||||||
| General and administrative | 6,858 | 10,374 | 23,916 | 31,254 | ||||||||||||
| Depreciation expense | (228 | ) | (195 | ) | (691 | ) | (453 | ) | ||||||||
| Stock-based compensation expense 3 | (1,499 | ) | (3,854 | ) | (6,761 | ) | (12,016 | ) | ||||||||
| Net general and administrative | 5,131 | 6,325 | 16,464 | 18,785 | ||||||||||||
| Research and development | 3,161 | 6,202 | 10,681 | 18,664 | ||||||||||||
| Stock-based compensation expense 3 | (311 | ) | (258 | ) | (1,022 | ) | (699 | ) | ||||||||
| Net research and development | 2,850 | 5,944 | 9,659 | 17,965 | ||||||||||||
| Total operating expenses | 16,319 | 23,443 | 53,815 | 66,751 | ||||||||||||
| Depreciation and amortization expense | (733 | ) | (700 | ) | (2,207 | ) | (1,731 | ) | ||||||||
| Stock-based compensation expense 3 | (2,245 | ) | (4,764 | ) | (9,171 | ) | (14,583 | ) | ||||||||
| Net operating expenses | $ | 13,341 | $ | 17,979 | $ | 42,437 | $ | 50,437 |
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 mitigate the risks of 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 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