PAVmed Provides Business Update and Reports Fourth Quarter and Full Year 2024 Financial Results
Lucid processed record test volume, saw rapid initial uptake in concierge medicine contracts, and secured first commercial insurance coverage policies
Veris Health secured financing to resume advancement of implantable physiological monitor through FDA clearance and commercial launch
PAVmed completed debt restructuring and Lucid deconsolidation to regain Nasdaq compliance and strengthen balance sheet
Conference call and webcast to be held today, March 25th, at 8:30 AM EDT
NEW YORK, March 25, 2025 /PRNewswire/ -- 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 reported financial results for the fourth quarter and full year ended December 31, 2024.
Conference Call and Webcast
The webcast will take place on Tuesday, March 25, 2025, 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.
Following 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.
Business Update Highlights
"Following the critical steps taken to stabilize PAVmed's corporate structure and balance sheet, PAVmed is now in a very strong position to operate as it was designed—as a diversified commercial life sciences company with multiple independently-financed subsidiaries operating under a shared services model," said Lishan Aklog, M.D., PAVmed's Chairman and Chief Executive Officer. "With Lucid and Veris both having sufficient capital to advance their commercial strategies, we expect PAVmed to directly benefit from their success. The performance of PAVmed's subsidiaries, particularly Lucid and its recent achievements with EsoGuard, serve as key drivers of PAVmed's long-term success and sustainability."
Highlights from the fourth quarter and recent weeks:
Lucid Diagnostics, PAVmed's single largest asset, continues to deliver operational milestones and drive increased market value (link to Lucid press release), thereby strengthening PAVmed's balance sheet:
Recognized $1.2 million in EsoGuard® Esophageal DNA Test revenue for 4Q24 and processed a single-quarter record of 4,042 EsoGuard tests, which represents a 45% sequential increase and 84% annual increase.
Executed over 20 cash-pay concierge medicine contracts in the first few weeks following the launch of new sales channels targeting contractually-guaranteed revenue.
Secured first positive commercial insurance coverage policy for EsoGuard from Highmark Blue Cross Blue Shield, and an agreement with Blue Cross Blue Shield of Rhode Island to pay for EsoGuard under state biomarker legislation.
Updated National Comprehensive Cancer Network® (NCCN) Clinical Practice Guidelines now includes a section on esophageal precancer screening.
CLUE and ENVET-BE clinical utility studies accepted for peer-reviewed publication, further strengthening EsoGuard's already robust clinical evidence package.
Case Western Reserve University and University Hospitals investigators awarded $8 million NIH grant to study EsoGuard for expanded indication in patients without GERD, potentially increasing the total addressable market opportunity beyond the current ~$60 billion.
Completed a convertible debt refinancing and common stock financing, yielding sufficient net proceeds to extend cash runway beyond key reimbursement milestones.
Regained compliance with Nasdaq minimum bid price requirement for continued listing on the Nasdaq Capital Market.
PAVmed and Veris completed private placement financing with gross proceeds of approximately $2.4 million at a Veris pre-money valuation of $35 million. Proceeds will be used to resume efforts to advance implantable physiological monitor through FDA clearance and commercial launch, and supplements a recent $1.8 million NIH grant.
Veris' pilot program with The Ohio State's James Cancer Hospital extended through April 2025. Definitive long-term strategic and commercial agreement imminent.
PMX Incubator is engaged in ongoing discussions with both financial and strategic investors regarding a direct investment to finance PortIO.
PAVmed regained compliance with Nasdaq minimum equity requirement through the deconsolidation of Lucid and the restructuring of PAVmed's convertible debt, which will add approximately $25 million to PAVmed's equity in 1Q25.
Financial Results:
For the three months ended December 31, 2024, PAVmed's revenues reflect approximately 125 patients on the Veris Cancer Care Platform. EsoGuard-related revenues are no longer consolidated with PAVmed's results due to the deconsolidation effective September 10, 2024. PAVmed's management service income from Lucid Diagnostics, amounting to $3.2 million post-deconsolidation, is reflected in Other Income. Operating expenses were approximately $5.2 million, which includes stock-based compensation expenses of $0.7 million. GAAP net income attributable to common stockholders was approximately $1.3 million, or approximately $0.12 per common share on a diluted basis
As shown below, and for the purpose of illustrating the effect of stock-based compensation and other non-cash income and expenses on the Company's financial results, the Company's non-GAAP adjusted loss was approximately $0.7 million, or $(0.06) per common share.
As of December 31, 2024, PAVmed had cash and cash equivalents of $1.2 million. On a pro forma basis, including the first quarter 2025 private placement, PAVmed's cash is approximately $3.6 million to begin 2025.
The audited financial results for the year ended December 31, 2024 were filed with the SEC on Form 10-K on March 24, 2025, and are available at www.pavmed.com or www.sec.gov.
PAVmed Non-GAAP Measures
To supplement our 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.
Non-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 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 measures.
Non-GAAP 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.
A 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, 2024 and 2023 are as follows:
Condensed Consolidated Statement of Operations (Unaudited)
For the three months ended
December 31,
For the year ended
December 31,
2024
2023
2024
2023
(in thousands except per-share amounts)
Revenue
$ 10
$ 1,049
$ 2,995
$ 2,452
Operating expenses
5,198
17,433
47,482
71,247
