Lucid Diagnostics(LUCD) - 2024 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2024, revenue was $1.2 million, an increase of 50$0.8 million for the same period in 2023[159]. - For the nine months ended September 30, 2024, revenue was $3.1 million, a significant increase of 121.4$1.4 million for the same period in 2023[167]. - The company experienced a net loss of approximately $34.0 million and used approximately$34.3 million of cash in operations during the nine-month period ended September 30, 2024[180]. - As of September 30, 2024, the company had cash on hand of $14.5 million and expects to continue experiencing recurring losses and negative cash flow from operations[180]. Expenses - The cost of revenue for the same period was approximately$1.7 million, up from $1.6 million, with a net increase of$0.1 million primarily due to increased third-party professional and IT-related expenses[160]. - Sales and marketing expenses for the three months ended September 30, 2024, were approximately $4.1 million, an increase of 7.9$3.8 million in the prior year[161]. - General and administrative expenses increased to approximately $5.4 million from$4.3 million, reflecting a net increase of $1.1 million primarily due to growth and expansion of business operations[161]. - Research and development expenses for the three months ended September 30, 2024, were approximately$1.7 million, compared to $1.6 million for the same period in the prior year, indicating a slight increase[162]. - The cost of revenue for the nine months ended September 30, 2024, was approximately$5.0 million, up from $4.5 million, with a net increase of$0.5 million attributed to various factors including increased compensation-related costs[168]. - Sales and marketing costs for the nine months ended September 30, 2024, were approximately $12.5 million, a slight increase of 4.2$12.0 million in the prior year[169]. - General and administrative costs decreased to approximately $14.3 million from$15.0 million, reflecting a net decrease of $0.7 million primarily due to a reduction in stock-based compensation[170]. - Research and development costs for the nine months ended September 30, 2024, were approximately$4.5 million, down from $5.3 million, indicating a decrease of$0.8 million[171]. Capital and Financing - The Company increased its authorized shares from 200,000,000 to 300,000,000, approved at the annual stockholders meeting[139]. - The Company plans to redeem the March 2023 Senior Convertible Note and has entered into a securities purchase agreement for 12.0% senior secured convertible notes due 2029[142]. - The company raised $18.16 million through the Series B Preferred Stock offering, selling 12,495 shares at a purchase price of$1,000 per share[181]. - The company issued approximately 11,634 shares of Series B-1 Preferred Stock, raising gross proceeds of $11.6 million[183]. - The company entered into a committed equity facility allowing for the purchase of up to$50 million of its common stock, with net proceeds of approximately $1.8 million raised as of September 30, 2024[190]. - The company is subject to financial covenants under the March 2023 Senior Convertible Note, requiring available cash to equal or exceed$5.0 million at all times[185]. Product Development and Market Strategy - EsoGuard Esophageal DNA Test demonstrates approximately 90% sensitivity and ~99% negative predictive value for detecting esophageal precancer and cancer[128]. - EsoGuard's recent study showed sensitivity of ~88% and negative predictive value of ~99% for Barrett's Esophagus detection, with specificity at ~81%[132]. - The Company received a Notice of Allowance for a patent covering its method of using methylation of the CCNA1 gene, a key component of EsoGuard[139]. - EsoCheck is an FDA 510(k) and CE Mark cleared device for noninvasive esophageal cell sampling, enhancing the diagnostic process[129]. - The Company has developed proprietary technology for targeted esophageal cell collection, ensuring contamination-free sampling[129]. - The Company is focused on expanding its market presence in cancer prevention diagnostics, particularly for esophageal adenocarcinoma[126]. - The company plans to pursue the development of other products and services as resources permit, focusing on the commercialization of EsoGuard[179]. - The company is actively working to expand insurance reimbursement coverage for its EsoGuard Esophageal DNA Test, which is critical for revenue generation[179]. Compliance and Regulatory - The Company aims to regain compliance with Nasdaq listing standards by addressing the closing bid price issue below $1 per share[138]. - The Company has increased the monthly fee in its management services agreement with PAVmed from$0.83 million to $1.05 million[133]. - The company expects to complete the issuance of the November 2024 Senior Convertible Notes and the redemption of the March 2023 Senior Convertible Note by the end of the Optional Redemption Notice Period[188].