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PAVmed(PAVM) - 2024 Q3 - Quarterly Report
PAVMPAVmed(PAVM)2024-11-14 02:29
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Product Performance - PAVmed's flagship product, EsoGuard, demonstrated a sensitivity of approximately 88% and a negative predictive value of 99% in detecting esophageal precancer in a recent study[161][162]. - Lucid received a Notice of Allowance for a patent application covering its method of using methylation of the cyclin-A1 gene for detecting esophageal precancer, a key component of EsoGuard[163]. Financial Performance - The Company recognized revenue of 1.0millionforthethreemonthsendedSeptember30,2024,comparedto1.0 million for the three months ended September 30, 2024, compared to 0.8 million for the same period in 2023, reflecting a 0.2millionincreaseduetohighervolumeofEsoGuardEsophagealDNATestsperformed[197].−IntheninemonthsendedSeptember30,2024,revenueincreasedto0.2 million increase due to higher volume of EsoGuard Esophageal DNA Tests performed[197]. - In the nine months ended September 30, 2024, revenue increased to 3.0 million from 1.4millioninthesameperiodofthepreviousyear,primarilydrivenbytheEsoGuardEsophagealDNATest[212].−ThecompanyrecognizedagainondeconsolidationofLucidamountingto1.4 million in the same period of the previous year, primarily driven by the EsoGuard Esophageal DNA Test[212]. - The company recognized a gain on deconsolidation of Lucid amounting to 72.3 million for the three months ended September 30, 2024, following the deconsolidation of its investment in Lucid Diagnostics[209]. Cost Management - Cost of revenue for the three months ended September 30, 2024, was approximately 1.4million,downfrom1.4 million, down from 1.8 million in the prior year, primarily due to a 0.4milliondecreaseinmanufacturingcostsassociatedwithEsoCheckdevicesandEsoGuardtests[198].−Salesandmarketingexpensesdecreasedtoapproximately0.4 million decrease in manufacturing costs associated with EsoCheck devices and EsoGuard tests[198]. - Sales and marketing expenses decreased to approximately 2.9 million in the three months ended September 30, 2024, from 4.0millionintheprioryear,anetdecreaseof4.0 million in the prior year, a net decrease of 1.1 million mainly due to reduced compensation-related costs[199]. - General and administrative expenses were approximately 6.6millionforthethreemonthsendedSeptember30,2024,comparedto6.6 million for the three months ended September 30, 2024, compared to 6.9 million in the same period last year, reflecting a decrease of 0.3million[200].−Researchanddevelopmentexpensesdecreasedtoapproximately0.3 million[200]. - Research and development expenses decreased to approximately 1.5 million for the three months ended September 30, 2024, from 3.2millionintheprioryear,anetdecreaseof3.2 million in the prior year, a net decrease of 1.7 million primarily due to reduced clinical trial activities[201]. Capital and Funding - The company received a 1.8milliongrantfromtheNationalInstituteonMinorityHealthandHealthDisparitiestooptimizetheVerisCancerCarePlatformforunderservedcancerpatients[165].−TheaggregategrossproceedsfromtheLucidSeriesBOfferingandExchangeamountedto1.8 million grant from the National Institute on Minority Health and Health Disparities to optimize the Veris Cancer Care Platform for underserved cancer patients[165]. - The aggregate gross proceeds from the Lucid Series B Offering and Exchange amounted to 18.16 million, including 5.67millionfromthesaleofSeriesA−1PreferredStockexchangedforSeriesBPreferredStock[184].−Thecompanyissued627,302sharesfornetproceedsofapproximately5.67 million from the sale of Series A-1 Preferred Stock exchanged for Series B Preferred Stock[184]. - The company issued 627,302 shares for net proceeds of approximately 1.0 million through its at-the-market equity facility with Cantor[241]. - The company entered into an "at-the-market offering" for up to 6.5million,issuing230,068sharesfornetproceedsofapproximately6.5 million, issuing 230,068 shares for net proceeds of approximately 0.3 million as of September 30, 2024[244]. Compliance and Regulatory - The FDA's final rule allows EsoGuard to remain under continued enforcement discretion, as it was marketed prior to May 6, 2024, and is NYS CLEP-approved[174]. - PAVmed was granted an extension until January 31, 2025, to regain compliance with Nasdaq listing standards after failing to meet the 35millionmarketvaluerequirement[175][176].−AsofSeptember30,2024,thecompanywasincompliancewiththefinancialcovenantsrequiringavailablecashtoequalorexceed35 million market value requirement[175][176]. - As of September 30, 2024, the company was in compliance with the financial covenants requiring available cash to equal or exceed 8.0 million and a market capitalization of no less than 75million[234].−AsofSeptember30,2024,LucidDiagnosticswasincompliancewithitsfinancialtests,includingmaintainingavailablecashofatleast75 million[234]. - As of September 30, 2024, Lucid Diagnostics was in compliance with its financial tests, including maintaining available cash of at least 5.0 million[239]. Debt Management - A debt extinguishment loss of approximately 1.4millionwasrecognizedinconnectionwiththeApril2022,September2022,andLucidMarch2023SeniorConvertibleNotesforthethreemonthsendedSeptember30,2024[205].−Thecompanyexperiencedadebtextinguishmentlossofapproximately1.4 million was recognized in connection with the April 2022, September 2022, and Lucid March 2023 Senior Convertible Notes for the three months ended September 30, 2024[205]. - The company experienced a debt extinguishment loss of approximately 2.5 million in the nine months ended September 30, 2024, related to its Senior Convertible Notes[220]. - The Company entered into a Note Amendment and Waiver, extending the maturity dates of certain Senior Convertible Notes to April 4, 2025, and September 8, 2025, and agreed to pay 2.0millionincashtothenoteholder[178].StrategicInitiatives−PAVmedlaunchedawhollyownedincubator,PMX,todevelopandcommercializeexistingportfoliotechnologies,startingwithPortIO,whichhasapremoneyvaluationof2.0 million in cash to the note holder[178]. Strategic Initiatives - PAVmed launched a wholly owned incubator, PMX, to develop and commercialize existing portfolio technologies, starting with PortIO, which has a premoney valuation of 42 million[172][173]. - The company is focused on commercial expansion of the Veris Cancer Care Platform and is seeking strategic partnerships with academic oncology systems[157]. - PAVmed is exploring external innovations that meet its project selection criteria without limiting itself to any specific sector or condition[157].