Core Insights - PAVmed Inc. has stabilized its corporate structure and balance sheet, positioning itself to execute its strategic vision as a diversified commercial life sciences company with multiple independently-financed subsidiaries [4] - Lucid Diagnostics has recognized $0.8 million in revenue from its EsoGuard® Esophageal DNA Test for the first quarter of 2025, processing a total of 3,034 tests [5] - Veris Health has resumed development of its implantable physiological monitor and is set to launch a commercial partnership with a major cancer center [4][7] Financial Performance - PAVmed ended the first quarter of 2025 with over $40 million in pro forma cash, following stock offerings that netted approximately $30.6 million [7] - For the three months ended March 31, 2025, PAVmed reported revenues of $8,000, a significant decrease from $1,010,000 in the same period of 2024 [11] - The company incurred operating expenses of approximately $5.5 million, which included stock-based compensation expenses of $1.0 million [8] Strategic Initiatives - PAVmed is actively evaluating clinical and late preclinical stage assets to expand into the biopharma sector [4] - The company has launched a campaign targeting gastroenterologists and gained traction in cash-pay concierge medicine and employer markets [7] - An NCI-sponsored study indicated that EsoGuard effectively detects esophageal precancer in at-risk patients, potentially expanding its market opportunity [7] Subsidiary Developments - Lucid Diagnostics is focused on cancer prevention through its EsoGuard® and EsoCheck® products, which are designed for early detection of esophageal precancer [16] - Veris Health is enhancing personalized cancer care through remote patient monitoring and is developing an implantable physiological monitor to interface with its Cancer Care Platform [16]

Part I - Financial Information [Financial Statements](index=3&type=section&id=Item%201%2E%20Financial%20Statements) The company reported a Q1 2025 net income of $17.7 million, reversing a prior-year loss, driven by a significant gain on its Lucid Diagnostics investment and reduced operating expenses [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $52.8 million and stockholders' equity turned positive to $38.9 million, driven by an increased investment value and a significant reduction in liabilities from a debt-for-equity exchange Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $2,700 | $1,185 | | Total current assets | $3,638 | $2,164 | | Equity method investment - at fair value | $46,641 | $25,637 | | **Total assets** | **$52,823** | **$30,660** | | **Liabilities & Equity** | | | | Senior Secured Convertible Notes - at fair value | $6,600 | $29,100 | | Total current liabilities | $9,781 | $35,446 | | **Total liabilities** | **$11,891** | **$37,693** | | **Total Stockholders' Equity (Deficit)** | **$38,932** | **($7,033)** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company shifted to a $17.7 million net income in Q1 2025 from a $22.8 million loss in Q1 2024, mainly due to a $21.0 million gain on its Lucid investment and lower operating expenses post-deconsolidation Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $8 | $1,010 | | Total operating expenses | $5,454 | $15,046 | | Operating loss | ($5,446) | ($14,036) | | Change in fair value - equity method investment | $21,004 | $— | | Management fee income | $3,150 | $— | | Net income (loss) attributable to PAVmed Inc. | $18,968 | ($15,212) | | Net income (loss) per share attributable to common stockholders – basic | $1.28 | ($2.62) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operations significantly decreased to $1.6 million from $13.1 million year-over-year, while financing activities provided $3.1 million, ending the quarter with $2.7 million in cash Q1 2025 vs Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Category | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash flows used in operating activities | ($1,581) | ($13,109) | | Net cash flows used in investing activities | ($6) | ($42) | | Net cash flows provided by financing activities | $3,102 | $19,048 | | **Net increase in cash** | **$1,515** | **$5,897** | | **Cash, end of period** | **$2,700** | **$25,536** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes highlight a 'going concern' risk, detail accounting changes from the Lucid Diagnostics deconsolidation, and describe significant debt restructuring and equity financing activities - The company's financial statements raise **substantial doubt about its ability to continue as a going concern** due to recurring losses, negative working capital of $6.1 million, and dependence on raising additional capital[24](index=24&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - PAVmed ceased consolidating Lucid Diagnostics on September 10, 2024, and now accounts for its investment using the **equity method with a fair value option**, significantly changing its financial presentation[30](index=30&type=chunk)[46](index=46&type=chunk) - In January 2025, the company consummated a debt exchange, satisfying **$27.5 million in senior convertible notes** by issuing 22,347 shares of new Series C Convertible Preferred Stock[78](index=78&type=chunk)[85](index=85&type=chunk)[87](index=87&type=chunk) - The company issued new **Series C Convertible Preferred Stock** with a 7.875% dividend and complex conversion features, a portion of which was temporarily classified as mezzanine equity[115](index=115&type=chunk)[119](index=119&type=chunk)[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202%2E%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial impact of the Lucid Diagnostics deconsolidation, strategic priorities for its subsidiaries, and the 'going concern' issue requiring future capital raises [Overview and Recent Developments](index=36&type=section&id=Overview%20and%20Recent%20Developments) The company is focused on supporting its subsidiaries' product commercialization and technology incubation, highlighted by recent regulatory submissions for EsoGuard and multiple financing activities - The company's current strategy is to **raise capital directly into its subsidiaries**, such as Lucid and Veris, to fund product development and commercialization[166](index=166&type=chunk) - Lucid Diagnostics submitted a clinical evidence package to MolDx to secure **Medicare coverage for EsoGuard** and noted positive updates to NCCN Guidelines[168](index=168&type=chunk)[169](index=169&type=chunk) - In February 2025, PAVmed and Veris completed a joint offering, raising **gross proceeds of $2.37 million** for Veris's development and general working capital[175](index=175&type=chunk) - Lucid Diagnostics conducted two separate offerings, raising combined **net proceeds of approximately $31 million** for working capital and general corporate purposes[176](index=176&type=chunk)[177](index=177&type=chunk)[178](index=178&type=chunk) [Results of Operations Comparison (Q1 2025 vs. Q1 2024)](index=39&type=section&id=Results%20of%20Operations%20Comparison) The Q1 2025 versus Q1 2024 comparison shows a sharply lower operating loss due to the deconsolidation of Lucid Diagnostics and a significant unrealized gain on the remaining investment Operating Results Comparison (in millions) | Item | Q1 2025 | Q1 2024 | Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | <$0.1 | $1.0 | ($1.0) | Deconsolidation of Lucid | | Cost of Revenue | <$0.1 | $1.7 | ($1.7) | Deconsolidation of Lucid | | Sales & Marketing | $0.2 | $4.3 | ($4.1) | Deconsolidation of Lucid | | General & Admin | $4.4 | $6.7 | ($2.3) | Deconsolidation of Lucid | | R&D Expenses | $0.8 | $1.9 | ($1.1) | Deconsolidation of Lucid | | Change in fair value of Equity Method Investment | $21.0 | $0.0 | +$21.0 | Unrealized gain on Lucid investment post-deconsolidation | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position raises 'going concern' doubts, with future operations dependent on cost control, revenue growth, and securing additional capital through recent and planned financing - Management has concluded that recurring losses and negative cash flows raise **substantial doubt about the Company's ability to continue as a going concern** for the next year[203](index=203&type=chunk) - The company's financing strategy is to **obtain capital directly into its subsidiaries** (Lucid, Veris) while retaining flexibility to raise capital at the parent level[202](index=202&type=chunk) - In January 2025, the company **exchanged $22.3 million of its Senior Convertible Notes** for newly created Series C Convertible Preferred Stock, significantly deleveraging its balance sheet[214](index=214&type=chunk) - During Q1 2025, the company issued over 1.2 million shares through its at-the-market (ATM) facility for **net proceeds of approximately $0.8 million**[208](index=208&type=chunk)[211](index=211&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of the quarter-end, with no material changes to internal controls over financial reporting - The principal executive and financial officers concluded that the company's **disclosure controls and procedures were effective** as of March 31, 2025[232](index=232&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended March 31, 2025[233](index=233&type=chunk) Part II - Other Information [Legal Proceedings](index=47&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is not currently aware of any pending legal proceedings that would materially impact its financial condition - The Company is not aware of any pending legal proceedings that are **reasonably likely to have a material impact** on the Company[235](index=235&type=chunk) [Other Information](index=47&type=section&id=Item%205%2E%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans during the first quarter of 2025 - **No directors or officers adopted or terminated** a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter ended March 31, 2025[240](index=240&type=chunk) [Exhibits](index=47&type=section&id=Item%206%2E%20Exhibits) This section lists all exhibits filed with the report, including required CEO and CFO certifications - The report includes an index of all filed exhibits, such as material contracts and **Sarbanes-Oxley certifications**[241](index=241&type=chunk)[247](index=247&type=chunk)

Company Overview - PAVmed Inc. is a diversified commercial-stage medical technology company operating in the medical device, diagnostics, and digital health sectors [4] - The company has two subsidiaries: Lucid Diagnostics, which focuses on cancer prevention diagnostics, and Veris Health, which enhances personalized cancer care through remote patient monitoring [4] Upcoming Conference Call - PAVmed will host a business update conference call and webcast on May 15, 2025, at 8:30 AM ET [1] - The call will feature Lishan Aklog, M.D., providing an overview of the company's operations and growth strategy, and Dennis McGrath discussing the first quarter 2025 financial results [1] Access Information - The webcast will be available on the investor relations section of the company's website [2] - U.S.-based callers can join the conference call by dialing 1-800-836-8184, while international listeners should dial 1-646-357-8785 [2] Replay Availability - A replay of the conference call will be available for 30 days on the investor relations section of the company's website [3]

Core Viewpoint - PAVmed Inc. has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for PAVmed suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7][9]. - PAVmed's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for PAVmed - For the fiscal year ending December 2025, PAVmed is expected to earn -$1.14 per share, reflecting a 50.9% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for PAVmed has increased by 48.5%, indicating a positive shift in analyst sentiment [8].

PAVmed (PAVM) Q4 2024 Earnings Call March 25, 2025 02:49 PM ET Company Participants Matt Riley - Director - Investor RelationsLishan Aklog - Chairman & CEODennis McGrath - President & CFOMatthew Park - Equity Research Associate Conference Call Participants Jeremy Pearlman - Equity AnalystEdward Woo - Director of Research & Senior Analyst Operator Good morning, and welcome to PAVmed Fourth Quarter twenty twenty four Business Update Conference Call. At this time, all lines are in a listen only mode. Following ...

Financial Data and Key Metrics Changes - PAVmed reported a GAAP net income of approximately $1.3 million or about $0.12 per common share on a diluted basis for the fourth quarter [35] - The company achieved a non-GAAP loss of $688,000, offset by NIH grant proceeds of $900,000 [33] - The deconsolidation of Lucid Diagnostics resulted in a significant net income of $28.4 million before non-controlling interest, reflecting the elimination of Lucid's cumulative historical losses [31] Business Line Data and Key Metrics Changes - Lucid Diagnostics generated $1.2 million in revenue with a test volume of over 4,000 tests, representing a 45% growth quarter-on-quarter [11] - EsoGuard revenue was approximately $1.2 million, with record test volume of 4,042 tests, exceeding the target of 2,500 to 3,000 tests per quarter [11] - PAVmed's management service income from Lucid Diagnostics was $3.2 million for the quarter, reflected in other income [34] Market Data and Key Metrics Changes - Highmark Blue Cross Blue Shield in New York established the first positive commercial insurance coverage policy for EsoGuard, indicating progress in market acceptance [12] - The National Comprehensive Cancer Network updated clinical practice guidelines to include esophageal precancer screening, which may drive positive commercial insurance coverage decisions [12] Company Strategy and Development Direction - PAVmed completed a strategic transformation to solidify its position as a diversified commercial life sciences company with independently financed subsidiaries [9] - The company is focusing on advancing the implantable physiologic monitor and regulatory clearance submission by the end of this year or early next year [16] - PAVmed is actively seeking direct financing for PortIO and engaging with angel investors and strategic partners [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's strong position following the restructuring and the successful completion of strategic initiatives [8] - The company anticipates significant milestones that will drive shareholder value, particularly through Lucid and Veris [82] - Management highlighted the importance of the upcoming FDA clearance for the implantable device, which is expected to enhance commercial potential [16] Other Important Information - PAVmed secured a private placement financing with gross proceeds of $2.4 million at a $35 million pre-money valuation for Veris Health [14] - The company received a $1.8 million NIH grant for Veris, which will support development activities [27] Q&A Session Summary Question: What will the contract with Ohio State look like? - The contract will be a comprehensive commercial and strategic partnership, with Ohio State committing to enroll a substantial portion of patients over the first year [44] Question: What is the timeline for FDA approval of the implantable device? - The submission is expected by the end of this year or early 2026, with a clear understanding of FDA requirements [48] Question: What discussions are happening with other institutions regarding Veris? - Conversations are ongoing with about a dozen cancer centers, but the focus remains on the Ohio State engagement and implantable advancement [56] Question: Are there competing products in the market for Veris? - The competitive landscape is favorable, with Veris' platform specifically designed for cancer patients, differentiating it from generic remote patient monitoring tools [74]

Lucid Diagnostics - Lucid Diagnostics的EsoGuard在2024年第四季度的收入为120万美元[12]，测试量为4042，环比增长45%[12] - Highmark Blue Cross Blue Shield in New York 建立了EsoGuard的积极商业保险覆盖政策[12] - NCCN临床实践指南更新，包括食管癌前病变筛查，与ACG等专业协会指南保持一致[12] Veris Health - 完成了一项私募融资，总收益约为240万美元[16]，Veris普通股的定价为3500万美元的税前估值[16] - 与俄亥俄州立大学詹姆斯癌症医院的试点项目延长至2025年4月[16] Financial Performance - 截至2024年第四季度末，公司持有的现金为118.5万美元[21]，高于第三季度的76.5万美元[21]，增加了42万美元[21] - 2024年第四季度的收入为1万美元[23]，低于2023年第四季度的104.9万美元[23]，减少了103.9万美元[23] - 2024年第四季度的运营费用为519.8万美元[23]，低于2023年第四季度的1743.3万美元[23]，减少了1223.5万美元[23] - 2024年第四季度的净利润为114.2万美元[23]，而2023年第四季度的净亏损为1740.8万美元[23]，增加了1855万美元[23]

Financial Performance - Lucid Diagnostics recognized $1.2 million in EsoGuard Esophageal DNA Test revenue for Q4 2024, with a record of 4,042 tests processed, representing a 45% sequential increase and 84% annual increase [6]. - PAVmed's management service income from Lucid Diagnostics amounted to $3.2 million post-deconsolidation, reflected in Other Income [10]. - PAVmed's operating expenses for Q4 2024 were approximately $5.2 million, including stock-based compensation expenses of $0.7 million [10]. - GAAP net income attributable to common stockholders for Q4 2024 was approximately $1.3 million, or approximately $0.12 per common share on a diluted basis [10]. - Non-GAAP adjusted loss for Q4 2024 was approximately $0.7 million, or $(0.06) per common share [10]. - PAVmed's cash and cash equivalents as of December 31, 2024, were $1.2 million, projected to be approximately $3.6 million post-private placement [10]. Market Position and Product Development - The updated NCCN Clinical Practice Guidelines now include a section on esophageal precancer screening, enhancing EsoGuard's market position [6]. - An $8 million NIH grant was awarded to study EsoGuard for expanded indications, potentially increasing the total addressable market opportunity beyond $60 billion [6]. - Lucid Diagnostics markets the EsoGuard Esophageal DNA Test and EsoCheck Esophageal Cell Collection Device, the first tools for early detection of esophageal precancer [14]. - Veris Health secured approximately $2.4 million in private placement financing to advance the implantable physiological monitor through FDA clearance and commercial launch [6]. - Veris Health is developing an implantable physiological monitor to enhance personalized cancer care through remote patient monitoring [14]. Compliance and Regulatory Matters - PAVmed regained compliance with Nasdaq minimum bid price requirement, adding approximately $25 million to equity in Q1 2025 through debt restructuring [7]. - The company emphasizes the importance of regulatory authorities' satisfaction with clinical study designs and results for product clearance [18]. Risks and Challenges - PAVmed's future operations are subject to risks including stock price volatility, regulatory approval uncertainties, and market acceptance of its products [18]. - The company may face challenges in raising additional funding as needed for product development and commercialization [18]. - PAVmed and Lucid's management holds forward-looking statements that may differ from actual results due to various uncertainties [18]. - PAVmed and Lucid disclaim any obligation to publicly update or revise forward-looking statements based on changing expectations [18]. Contact Information - For more information, investors and media can contact Matt Riley at PAVmed and Lucid Diagnostics [19].

Core Viewpoint - PAVmed Inc. has made significant strides in stabilizing its corporate structure and balance sheet, positioning itself as a diversified commercial life sciences company with independently financed subsidiaries, particularly highlighting the achievements of Lucid Diagnostics and Veris Health [4]. Financial Results - For Q4 2024, PAVmed reported revenues of approximately $10,000, a decrease from $1,049,000 in Q4 2023. The total revenue for the year ended December 31, 2024, was $2,995,000, compared to $2,452,000 in 2023 [6]. - Operating expenses for Q4 2024 were approximately $5.2 million, down from $17.4 million in Q4 2023. For the full year, operating expenses were $47.5 million, compared to $71.2 million in 2023 [6]. - The GAAP net income attributable to common stockholders for Q4 2024 was approximately $1.3 million, or $0.12 per diluted share, compared to a loss of $1.98 per share in Q4 2023 [6]. - As of December 31, 2024, PAVmed had cash and cash equivalents of $1.2 million, which is projected to increase to approximately $3.6 million after a private placement in Q1 2025 [5]. Subsidiary Performance - Lucid Diagnostics has seen rapid uptake in concierge medicine contracts and has secured its first commercial insurance coverage policies, which are expected to drive future revenue growth [1]. - Veris Health has secured financing to advance its implantable physiological monitor through FDA clearance and commercial launch, indicating progress in its product development [1]. - The performance of Lucid, particularly with its EsoGuard product, is viewed as a key driver for PAVmed's long-term success and sustainability [4]. Corporate Developments - PAVmed completed a debt restructuring and deconsolidation of Lucid to regain Nasdaq compliance and strengthen its balance sheet [1]. - The company is set to hold a conference call and webcast to discuss its business updates and financial results, indicating a commitment to transparency with investors [2][3].

Clinical Evidence and Research - EsoGuard submitted a complete clinical evidence package to secure Medicare coverage, including six new peer-reviewed publications[348]. - EsoGuard demonstrated a 2.4-fold higher diagnostic yield for Barrett's Esophagus (BE) compared to expected yield from screening EGD alone, based on a cohort of 199 EsoGuard-positive patients[350]. - EsoGuard's sensitivity and negative predictive value for detecting BE were approximately 88% and 99%, respectively[352]. - Lucid received an $8 million NIH grant for a five-year clinical study evaluating EsoCheck and EsoGuard among at-risk individuals without GERD symptoms[354]. - Veris was awarded a $1.8 million NIH grant to optimize the Veris Cancer Care Platform for underserved cancer patients[356]. - EsoGuard is now referenced in the NCCN Guidelines as an acceptable alternative to invasive upper endoscopy for detecting esophageal precancer[349]. - A pilot program for the Veris Cancer Care Platform has been launched in collaboration with a National Cancer Institute-Designated Comprehensive Cancer Center[360]. - Research and development efforts will focus on the Veris Cancer Care Platform and other products in the pipeline as resources permit[394]. Financial Performance - Revenue for the year ended December 31, 2024, was $3.0 million, an increase of 20% compared to $2.5 million in the prior year, primarily driven by the EsoGuard Esophageal DNA Test[399]. - Cost of revenue decreased to $4.8 million in 2024 from $6.4 million in 2023, a reduction of 25% attributed to the limited inclusion of Lucid's results post-deconsolidation[400]. - The Company experienced net income before noncontrolling interests of approximately $28.4 million in 2024, while using approximately $33.6 million of cash in operations[414]. - Financing activities provided $31.3 million of cash during the year ended December 31, 2024[414]. - The Company ended the year with cash on-hand of $1.2 million as of December 31, 2024[414]. Stock and Shareholder Activities - The Company generated gross proceeds of $2.37 million from the sale of 2,574,350 shares of common stock and pre-funded warrants[361]. - The Company received shareholder approval to increase the total number of authorized shares from 50 million to 250 million on January 15, 2025[379]. - Lucid closed on the sale of 13,939,331 shares at $1.10 per share, generating net proceeds of approximately $14.5 million for working capital[380][381]. - The company raised a total of $18.16 million from the sale of 12,495 shares of Lucid Series B Preferred Stock at $1,000 per share and the exchange of existing preferred shares[422]. - The company issued approximately 11,634 shares of Lucid Series B-1 Preferred Stock, generating gross proceeds of $11.6 million, with a conversion price of $0.7228[424]. - The company realized gross proceeds of $21.95 million from the issuance of November 2024 Senior Convertible Notes, which were used to fully repay the Lucid March 2023 Senior Convertible Note[428]. - In the year ended December 31, 2024, the company sold 1,032,298 shares through its at-the-market equity facility for net proceeds of approximately $1.3 million[429]. - Cumulatively, the company issued 680,263 shares of common stock for net proceeds of approximately $1.8 million under a committed equity facility as of December 31, 2024[430]. - The company entered into an "at-the-market offering" for up to $6.5 million of its common stock, resulting in net proceeds of approximately $0.3 million from 230,068 shares sold as of December 31, 2024[431]. - The company issued 1,084,366 shares of common stock in satisfaction of approximately $1.4 million of principal repayments and $0.1 million of interest expense in 2024[415]. Compliance and Regulatory Matters - The Company regained compliance with Nasdaq's continued listing standard, maintaining at least $2.5 million in stockholders' equity[366]. - The Company achieved compliance through the exchange of $22.3 million in secured convertible notes for Series C Preferred Stock and a reduction in operating expenses due to the deconsolidation of Lucid[368]. - As of December 31, 2024, the company was in compliance with the Financial Tests, which require available cash to equal or exceed $8.0 million and market capitalization to be no less than $75 million[420]. - The company is subject to financial covenants under the Lucid March 2023 Senior Convertible Note, requiring available cash to equal or exceed $5.0 million and market capitalization to be no less than $30 million[427]. - The company has a Debt to Market Cap Ratio Test that should not exceed 30% based on the outstanding principal amount of notes and average market capitalization[420]. Expenses and Cost Management - The Company increased the monthly management services fee to Lucid from $0.83 million to $1.05 million[359]. - The Company anticipates a decrease in sales and marketing expenses due to the deconsolidation of Lucid, which will no longer be included in its operating results[391]. - Sales and marketing expenses decreased to approximately $11.6 million in 2024 from $17.6 million in 2023, a reduction of $6.0 million[401]. - General and administrative expenses were approximately $24.5 million in 2024, down from $30.9 million in 2023, reflecting a decrease of $6.4 million[401]. - Research and development costs fell to approximately $5.9 million in 2024 compared to $14.3 million in 2023, a decrease of $8.4 million[402]. Changes in Accounting Standards - The company adopted ASU No. 2023-07 for segment reporting, effective January 1, 2024, which did not materially impact its segment-related disclosures[441]. - The FASB issued ASU No. 2023-09 in December 2023, aimed at enhancing income tax disclosures, effective for annual periods beginning after December 15, 2024[443]. - ASU 2023-09 includes changes to rate reconciliation and income taxes paid information, but the company does not expect a significant impact on its consolidated financial statements[443]. - In October 2023, the FASB issued ASU No. 2023-06, which modifies disclosure requirements in response to the SEC's Disclosure Update and Simplification Initiative[444]. - The effective date for ASU 2023-06 amendments will align with the SEC's removal of related disclosures, with a potential removal of amendments if not enacted by June 30, 2027[444]. - The company is currently evaluating the potential impact of ASU 2023-06 on its consolidated financial statements[444]. Miscellaneous - The change in fair value of convertible debt resulted in approximately $0.5 million of income in 2024, compared to $6.0 million of expense in 2023[403]. - A gain on deconsolidation of Lucid Diagnostics was recognized at $72.3 million in 2024, with the value of the Company's shares in Lucid at $25.1 million[408]. - The outstanding principal balance of the September 2022 Senior Convertible Note was approximately $6.6 million after the exchange agreement[371]. - The conversion price for the September 2022 Convertible Note was reset to $1.068, with the maturity date extended to December 31, 2025[372]. - A deemed dividend of $7.5 million was recognized on the exchange of Lucid Series A and Series A-1 Convertible Preferred Stock for Series B Preferred Stock on March 13, 2024[412]. - The company does not have any off-balance sheet arrangements[446]. - There are no applicable quantitative and qualitative disclosures about market risk[447].