PAVmed(US:PAVM)2025-05-15 01:32Part I - Financial Information Financial Statements 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 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 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 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 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 capital242627 - 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 presentation3046 - 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 Stock788587 - 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 equity115119130 Management's Discussion and Analysis of Financial Condition and Results of Operations 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 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 commercialization166 - Lucid Diagnostics submitted a clinical evidence package to MolDx to secure Medicare coverage for EsoGuard and noted positive updates to NCCN Guidelines168169 - In February 2025, PAVmed and Veris completed a joint offering, raising gross proceeds of $2.37 million for Veris's development and general working capital175 - Lucid Diagnostics conducted two separate offerings, raising combined net proceeds of approximately $31 million for working capital and general corporate purposes176177178 Results of Operations Comparison (Q1 2025 vs. Q1 2024) 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 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 year203 - The company's financing strategy is to obtain capital directly into its subsidiaries (Lucid, Veris) while retaining flexibility to raise capital at the parent level202 - 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 sheet214 - 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 million208211 Controls and Procedures 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, 2025232 - No material changes in internal control over financial reporting occurred during the quarter ended March 31, 2025233 Part II - Other Information Legal Proceedings 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 Company235 Other Information 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, 2025240 Exhibits 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 certifications241247