Earnings call transcript Q1 2023

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Operator

Welcome to the PAVmed business update and first quarter 2023 financial results conference call.

At this time, all participants are in a listen-only mode. Later we will conduct a question and answer session.

As a reminder, this call is being recorded.

I would now like to turn the conference over to your host, Michael Parks, Vice President of Investor Relations. Mr. begin. may you Parks,

Michael Parks

quarter and first everyone. call. quarter this the release Betsy, the available participating website. PAVmed The you in announcing first and update today’s XXXX business financials good you is Thank on morning for press XXXX Thank business update

take to disclaimer read Please about the in statements a release. moment press the forward-looking

actual known to include filings and Exchange results Securities could that forward-looking statements These The press business statements. uncertainties from materially release update, differ described in U.S. cause Commission. and subject to and the and to statements forward-looking may that our risks conference and the disclaimer cause differ call both Factors in unknown are with made. are results

risks expectations or X or required that results on see Except Form the updates recent filed a statements. the likelihood will future operations, SEC, X(a) in affect any Item annual to contained subsequent obligation the expectations or those reflect revise and XX-Q in PAVmed events, actual subsequent statements update law, forward-looking uncertainties XX-Q and in that description or list report other For or may and PAVmed’s Part may conditions with filing. any and X-K Risk of affect intention publicly any quarterly those Form changes based, disclaims entitled which Factors these forward-looking Form most reports by on may in that on as be to circumstances the important differ from filed and

CEO of now Lishan to turn Chairman I and Dr. like call over to would the PAVmed. Aklog,

Lishan Aklog

call. conversation. look for Thank you forward today’s good to morning business joining for Thanks good everyone. us Mike a today I update and

highlights. with start I’ll recent some

this a call website commercial to dedicated who about on are for for content refocusing earlier term had be of Lucid. webinar strategic would go of a yesterday those and and restructuring the this Health the Lucid. today year subsidiaries, will of our view our and know, I we been for efforts limited. our for our have and two we Lucid, details half to all Veris a Yesterday further year proceeded from with focusing so you As investors encourage you long

Health, highlights, remote monitoring platform, recent including is we’ve had platform Veris Cancer live. With Care some our patient that Veris now

expanding have strategy of We software-as-a-service President begun payments with recurring we have nationwide business and Subscription an commercial to Manning, model, commercial robust and under Gary pipeline. the footprint a revenue hone appointed horizons. expand a new Veris,

those a new you A story. segments to medical PAVmed technology, all be three and diagnostics medical We technology digital PAVmed health. operate slides of few who for in might of here devices, the is introductory diversified in commercial-stage company.

structure Veris is corporate digital held, traded two our which is publicly company, diagnostics that subsidiaries, and such subsidiary Health, our mentioned, a PAVmed As at Diagnostics. health has Lucid privately

an Let developed. the are platform me There focused company we developed looking monitor to digital Veris that the and commercialize on start have with our--there products enhancing care. is two to that’s that’s year. Veris. Veris health and implantable cancer two elements One Health is are Care a other Cancer is personalized next commercial-stage being

generalized Our improve to detection of remote tools early or of mission to through trends, complications, longitudinal monitoring, is modern patient care RPM and tracking management. utilize risk

that portal, integrated quality as The allows a create devices where physiologic the care of app the parts: Veris to That’s link patient Cancer and of part to cloud-based to that a includes can patient. track record well provider box. Cancer functionalities Care team. the sent essentially communicate patient two allows from Cancer patients patients, Care health on receives their clinician and being specialist platform smartphone providers, with are team consists patient the telehealth as married the that a of electronic screen the It Care of as as reporting symptom is permanent to the view from with one EHR there to which everything parameters of connected and them their part integration life, symptoms, track report

Health attractive The very business the both for model us, is for as well as Veris for customers.

as a mentioned, it’s monitoring are year. remote I model, will that where we device a be clinical technical from recurring revenue also launched As the software-as-a-service support, and patients enhanced platform uses opportunities fee that established as there revenue on that has support, additional charge patient subscription the next well implantable codes,

facilitates to established. that as well. billing $XXX also point customer’s month RPM well revenue the participation provide CMS either oncology patient codes value-based per is per established administrative for approximately view, well others, They’re CTT of in per of enhancing approximately for revenue. the Care opportunity again opportunities collectively Cancer the practice, nets There providing by models practice to are the workload additional but From payment center practice opportunity or decrease patient, and and $XXX

the addressable on of cancer the that, every based treatment and $X approximately number with total believe billion. diagnosed opportunity, We be year market for undergo patients to

have research, well tasked pharma so Gary which with health. the as we’re he extensive implantable commercial platform, of experience and been mentioned, wearables, in to earlier in executive leadership strategy, about tools, and accelerating experience term launch a experiences data we’re as developing three year, in digital monitor Health launched and President the excited join in commercializing roles, commercial horizons monetization, commercialization as expanded as of has the as Care really medical experience has that. devices spans which the excited of global advancing recently to includes PAVmed of longer in other supporting this Gary’s His us, more decades a Veris As biomedical Cancer market. products new well I - Gary the Manning. such

expanded. footprint commercial The has added accounts. We’ve

helm. starting the as future so at we’re under subscription and receive the We platform, have model, this of on payments Gary excited the patients month, for we’re with to the

to the time is extend designed vascular access It’s monitor a to monitor placement. port the be power Veris that’s at platform. the Our Next implantable implanted of of slide? designed a

an designed Bluetooth purple As continuous the a together has here, activity, monitoring, to is snap event port, image to the and cardiac has measures is see patient respiratory you can temperature, monitor. and rate, vascular on monitor, smartphone. implantable has monitor with physiologic triggered access the cardiac The device, connectivity measures which the patient’s

We recently completed excellent the chronic and which studies be measured. animal showed performance one of the several features key parameters across to

had early year. pre-submission discussions have the submit and with are to next We looking We’ve active multiple half in first of FDA. meetings

compliance of requirements, a which of XXX% the platform XXX% XX Care with out patient days data, overall of physiologic the are terms The system key or data how provides compliance patient is feature with submit monitoring billing it month, that and this with Cancer it this assures that. patient remote in the a integrates for that

continue highlights A details. has Lucid - key few But annually slides some we the tests would some slide? webinar on a brief - again, EsoGuard encourage in yesterday, quarter. I which review testing to over XXX% further to growth Next total fourth you XX% and on of to from here the first volume in good have X,XXX increase testing quarter a volume, increase performed the

for and physician detection physical Approximately a or physician day nurse about also performs by practitioners proportion, office. [indiscernible]. half The institutions. referral patients two-thirds regard centers of are the of shift has over We’ve some are where shift operators. LTC, testing is one at a Lucid their early a broader about a this at referred scheduled being esophageal really, to practice. volume trends at of stabilized. third at as by sources Still, practitioner of by by XX% to see procedure physician’s has physicians--by at are procedure and for practitioners increasing a and test collection a of or either specialists substantial substantial Lucid XX% physicians’ Lucid satellite a you operators, office which EsoGuard is Next the procedure, total staff There increase approximately actually nurse cancer the source of have undergoing here with care referred or undergoing slide? been Lucid in patients physicians, on being being performed an referred at the by referral aspect offices test what’s--and trends a nurse patients The the scheduled burgeoning the documented center, EsoCheck Lucid new the being now that of procedure by test a business, patients is can cell - primary performed

them Next year events to detection with slide? volume of earlier pre-cancer have date our scheduled, Food We this announced very Check Tube been high first firefighters. event. all which and are are Your testing These

The from the underwent testing first department and firefighter the where EsoCheck approximately collection San Antonio were cell over there patients pictures XXX two weekends. the with one,

be to of expand and portion this volume. program it We the continue to an overall increasing expect

robust we are there that dots different red see events pipeline, including that can that nine completed and had in a of sizes scheduled. are You the we’ve five have already

things for Dennis With an over financials. on that, to hand update I’ll our

Dennis McGrath

Thanks Lishan.

Our financial night. for results release in published are the first reported last our quarter was press that summary

with encourage the Over in from those the on PAVmed SEC remarks XX-Q quarterly filed disclosures website. few to afternoon is full the we’ll our I’d the Monday there next you of a Form quarter. the slides, report on key the consider was emphasize in highlights that available context and on covered

Other $X.X million. from the the million the On of shares to unvested at reflects well GAAP Slide the the awards convertible including of Payables quarter capitalized is $XX.X balance XXX.X on our sheet approximately The a of Diagnostics. the long office reflecting restricted XXX.X slide, are increase a addition cash debt as million of net see Lucid $X.X sequential XX, outstanding, lab sequentially. reflected The shares term use The related of shares. balance leases convertible will million of had as are on today, and increase sequentially, face end as of outstanding decreased in million the inside $XX.X spaces. of XX-Q. the $XX.X liabilities cash our stock of million you million a note year-end

in the Both of years structures the $XX.X studies long the In in likely the to improving case Lucid which reimbursements. Lucid preferred a addition and debt keep $XX work Lucid’s convertible board initial completed clinical utility on of two of in market first We closing allows offering. to authorized for preferred the the the periods time, complete of of quarter, the million preferred, Lucid stock Lucid million. the out its amount

these the of beginning financings XXXX. is elongated quarter cash forma with runway on Combining January cash consolidated pro $XX.X the million the at results of into in Our X.

quarter, of million and first particularly which for achievable indicated cash rate the which the since the quarter balance year, $XX.X ending of with line would forma we’d previously million, rate effect between we burn full $XX million pro million, it be is burn reflect first on the about the R&D runway have $X.X terminating $XX does elongate This wrap-up approximately the quarter expected incurred for does of $XX.X Lucid’s in was middle the the million $XX for we the year. With cuts for is remaining in with not paused and Furthermore, severance our the projects. our nor it with place lender one-time in costs serve costs put million relationship will purchase for securities agreement $XX that debt million further. ResearchDx, in to reflect convertible costs,

Slide supplemental the XX review [indiscernible] first this information, to first the year’s my non-GAAP of items, and on year’s last quarter bottom at information. slide this quarter the the in about cautionary P&L information light compares disclosure of about particularly comments certain key

party before first quarter. cash when The claims lab third Lucid used for is reflects lab Lucid’s monthly out-of-network patient means fee actually the is claim of for of the a the quarter patient collected for Revenue prior the year majority from when policy, revenue submission determinant is quarter. year’s our actual that own key The the at of and the submitted collection. end vast we revenue first occurs last Lucid’s up received recognition report The reimbursement. setting invoiced fixed recognition collections versus Lucid the reflects probability

As XX-Q, to recognition invoiced. is called XXX in the ASC insufficient see data when of you’ll recognize variable guidelines, is jargon our revenue revenue predictive this and GAAP’s consideration, there presently

we this are for revenue customize we and have they billing additional helping our first just activities ROI, clients. we revenue, for on-boarding customer in will benefit us Veris and system as site company which as first to not for recognized As customer March the this optimize us are started client March

revenue, revenue an expect normal to rules. we GAAP We expect basis once to Lucid’s as-invoiced initial through that unlike phase, recognize this on subject are we

A non-GAAP opex and net loss. and couple GAAP comments on

by sequentially quarter first Our is and million respectively. GAAP and $X.X opex GAAP lower loss $X.X million

Our non-GAAP $X.X lower opex loss also are first and million quarter by million sequentially non-GAAP and respectively. $X.X

from first quarter per fourth Our $X.XX, from is quarter. the loss a non-GAAP share decrease $X.XX

in detail illustration as presented graphic operating a is of XX expenses press release. our in Slide our

marketing. First driven $X.X terminate decreases and approximately future with decrease decrease quarter which in sequential an $X.X past sales in save and $X.X were non-GAAP opex decreased decrease $XXX,XXX million million sequentially. approximately a us in significantly by by a million million led expenses. R&D The ResearchDx, increase G&A by relationship by approximately offset was Lucid’s in will to $X.X These

The XX-Q and companies. costs. cost consistent practices supplies of as lab fixed of also our revenue lab primarily it with recent other consists SEC Consistent of with in is expense, diagnostic presented filings, operating facility

that, With for open Operator, let’s up it questions.

Operator

We begin answer will the question and now [Operator instructions] session.

with comes first The question Cantor ahead. from Osborn Please Ross Fitzgerald. go

Dennis McGrath

Ross. Morning

Ross Osborn

on progress. the Congrats morning. good Hi,

Maybe quarter to discuss during and if been many new how accounts you the you on-boarded date? on Can added the I’ll Veris. have of focus types patients, any, have

Lishan Aklog

right are close, practices, and fact now are have often with right total we locations. that’s medium-sized of now today, and of multiple they that Yes, three sort couple closing in one accounts, a a

first different The practice three locations. has

larger a lead have securing larger, might but conversations in you cancer centers with well. we’re strategic do traction of those bigger - terms accounts are, times as in and expect, process those We those getting as care longer accounts,

time In we’ve ready and you an start quite numbers, we not to account, when that dozens and tracking forth collaborative and the of the But is quarters. figuring of their so this risk is patients out also well. waves but far so mentioned, tool, in we figuring we’re we between our in patients as important higher is patients out important Generally benefit, our so integrate second a--as the IT coming team have of and of billing really theirs, Dennis a identify earlier patient sort will on properly out is system, how open an certainly might who of there RY delineate of they’ll model, expect, on-boarded practice really practice will to are gone it’s tool and their figuring they accounts. their and had and process terms clinical patients, think into an it number reporting

Ross Osborn

explain the from but you should a just of on-boarded PAVmed Okay, revenue could a patient maybe I again great. maybe works? is model, it’s just process revenue. Then the how realize until time SaaS recognize recognition

Dennis McGrath

patient, are and cash have we’re client Veris, is a basis. collection reimbursement client turn to the Because we’re recognize the will of The battle patient invoiced, that predictive that insurance Yes, they’ll bill on the value so platform. the from that patient We insurance platform, and has is on it’s will on bill around the company, client for patient don’t as-invoiced $XX so for the codes, each or a collection we the month is able collection, existing on will we where high on as appropriate this basis the to around Lucid the Veris, company. contracted pay the where when and fee patient’s unlike client collect presently evolution the measure we roughly. in have there the bill amount, which turn fight reimbursement here, we us an recognize in revenue revenue and to per

Ross Osborn

my Okay, great. Thank questions. you for taking

Lishan Aklog

Thanks Ross.

Operator

go The with Anthony from next question Maxim comes Please Vendetti ahead. Group.

Lishan Aklog

morning. good Anthony,

Dennis McGrath

Anthony. Hi

Anthony Vendetti

Lishan. Good morning Dennis, good are How you? morning

Lishan Aklog

Great, doing great.

Anthony Vendetti

Excellent.

Just and and pause you that, wherever following significantly on driving focusing perform centers. are Veris, Thanks. pipeline Can that? to the comment any it outside about would talk on can to Lucid of just like up the being up looks you what Lucid, this setting patients procedure? new at you tests looks like color can on the performed physician on the more centers test that on Then cause point, more

Lishan Aklog

Thanks Anthony.

pipeline The robust. Veris. with start is Let’s

of in the and the the the medium dozens it’s process planning some then a those. system. typical on a start for negotiations in seeing contractual don’t subscription onto bringing on but expect at their are range the client, executing number with one integration targets, the platform the As small is we and have early commercial total negotiations, a numbers, number in but demos, contractual and escalating midst on of getting of practice engagement, for stages, some of ultimately of of pipeline, to IT to are any concrete of nice fee, We terms of process

small as I up the there’s of the large--the couple which and practice a different. wide with to range accounts are oncologists, cancer large and process the securing those timelines to be obviously going of really practices a country, going are said, for way be all aren’t But sizes. centers the different There major all them, of across the to is

our supplementing, far opportunity onto testing that testing I’ll care center for are tacking to physician but access said continuing expanding Let The Lucid adoption. primary patient with one. move test of events, the high to excited me about the a way specialists it regard all-of-the-above. and shifting question, in important steam one. from so to a test, our large on I before emphasis, is volume bring how to chunks in approach events, testing not the that’s repeat model we’re reps the we’re events an to test full because and this these It’s multi-pronged the in any patients or garner and Again, access traditional but physicians we’re calling really through

care in able the to of primary procedures test referring ability I’ve asked performing, the centers this it unmoors orientation. as said physician geographic the our we’re to from improves aspect us slide, that that mind specifically perform of physicians. That also efficiency centers these, and keep as about with very offices, the and being front nurse shifting the the increases showed at test as and tests, them tests in It is the the satellite location. span to, performed being the physical I You our an it physicians’ cell versus on attractive before, practitioners practice are test that’s of the of increasing physical a collection number are what the

large our adoption, so Lucid Thursday We’ve effort practitioner from for nurse the is is had think the reminding the test having they’re next as to success a with coming good about so patients, of really seeing be focus good and impetus that. physicians a

home, practitioner continue their the somewhat costs the is efficient those because greater nurse some We beyond of their sense, the are much location. the centers. go associated to location with more we’ve In physical now, calls test physical before Lucid now described economics which test the detail, because that sort actually right will even centers, that in they a can home, maintain of

I about think would others in encourage have so the you cities how to and past, forth. in how terms we test many many expansion the as and centers, not of

We angles that year, with can well as the earlier for as we volume the some the we plan year, of that have creative consistent this reps testing kept of of you test that centers see, of part sales we’ve test as to with but because continue the fixed this as number events. adopted the satellite volume high grow taken

Anthony Vendetti

Okay, queue. I’ll hop that’s the great. back helpful. in very Thanks,

Lishan Aklog

Anthony. Thanks

Operator

reminder, queue. ask question, to then a please if one to you question As enter star the press would a like

next comes from question Capital. The Ed Woo go ahead. Ascendiant Please with

Ed Woo

taking quickly do running? be? you you are everything know to progressing, an for it and things a could you getting up I still account Veris, my you as can how quickly think how Thank from get once for but get up signing is question early, it’s My pretty question. signed contract

Lishan Aklog

and early, depends it we’re the jointly Yes, as on and the a you the we’re so the of practices, bit of and practice. with complexity progressing the of course it’s practice size said, learning

several as the are is data, electronic patients them with actually learned running, we’re integration generating on has the might early in that some can the and complexities so. clients health do and thing system One which on we get experience their record, imagine that you up even with additional we’ve to as working first the this where

the is down we launch. patient for contract shortening. experience, weeks, early I process down still few system a over time us would first but a from that relatively think that to we’re with as That in to our learning have that’s still on time more could

Ed Woo

the you a area there guys is geographic the question already have, then have on you Is focusing country contracts of that my last first? signed. or that pipeline you on region or Great, that the are

Lishan Aklog

case, Yes, areas on we’re not we like consciously not. focus where the did in Lucid we’re here west, the in

entire of was but so Jersey several be We It have commercial northeast we’re turned not Florida, it country. our right the to in in targeting accounts as particular Pennsylvania, that the now. targeting the southeast as has and in west, active any out - well team geography in first the we’re the happened

at We’re opportunity country. looking any the across

Ed Woo

luck. answering you. for thanks you my and well guys wish questions, Thank good Great,

Lishan Aklog

thanks lot, Ed. a Yes,

Operator

answer Dr. This to concludes I like turn closing Aklog would our any conference session. question over remarks. the and to for back

Lishan Aklog

taking to free contact Thank is encourage on for mep@pavmed.com. and questions. this and you all you us follow thank joining to, I our course this address you for Operator, social to go the on would morning, further to Mike media, feel any email time of call. us website, His with information, Parks

a Thanks and have again day. great

Operator

The conference Thank today’s has for now concluded. presentation. attending you

You may now disconnect.

PAVmed (PAVM) 17 May 232023 Q1 Earnings call transcript