Earnings call transcript Q4 2022

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Operator

Welcome to the Lucid Diagnostics Business Update and Fourth Quarter 2022 Financial Results Conference Call. At this time, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session.

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

Michael Parks

and Thank Lucid you, in The you participating is the everyone. release ended the December XX, Good fourth quarter morning, XXXX, company for today’s update call. on our Thank results XXXX for announcing year the for available business Paul. financial website. business press update

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

Item may subsequent in on Form uncertainties filed and For in operations, see a risks important the Form list and X-K Form I entitled report quarterly -- and the any other filed Q description affect and XX-Q annual SEC report future and with most fillings. recent these XA Risk that updates Q-XX of on Part subsequent Lucid’s Factors

that circumstances required or publicly on law, or in the which changes affect forward-looking reflect contained differ in as expectations any likelihood may any forward-looking from to the results conditions obligations will statements. disclaims the update be intentions Except by Lucid to statements revise that or or those based or in events, actual may expectations

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

Dr. Lishan Aklog

activities this on everybody look you thank you to the recent quarter I and morning. and our past a forward positive weeks. Mike, for joining giving you, us update for Thank

our of shareholders press for calls in part us noticed, the in As evening the prior. better our morning changed releases serve to while with have of you who’ve the have we’ve to our the been timing a open hopefully those in quarterly

then start into doing So recent and diving further highlights of background I’ll before details. some with a bit

significant the made over excited really quarter. about the steady We’re strides we’ve past

EsoGuard a Center remained strong nice and nearly satellite growth As and rapidly Lucid you’ll quarter acceleration volume testing we’ve that some increasing one-third in particularly is this now volumes. Test see, the seen our activity of driving has test

we’ve PPO, We’re provides secondary MultiPlan, very report access XX EsoGuard participated excited networks. the EsoGuard approximately largest that to to in-network with that and contract this the consumers to of in million secured

over claims per are Medicare payer or is the $X,XXX commercial PPO accelerating. of In-network are history contracts all engagement test we’ve and now above Our and EsoGuard secured rate. the averaging contracts at priced

this but I’ll dive a bit really us. we’ve important launched initiative little further later, for into a

Strategic We’re self-insured Administrative ASO and entities. unions other the Only calling it such with Initiative and our Services Direct is directly or goal large engage to Contracting here employers,

As press up near-term two. we events CheckYourFoodTube we and a coming in the or we robust events reported of had high-volume a of the additional release, pipeline month our successful next have in launch

reflects a efficiencies. Our our the say, we’ve of event volumes enhancing this lot peak these handle we’re record laboratory, operational from to and effort proud in made unexpectedly very

We associated received issues non-sterile with chain sterilization. increases FDA potential mitigate version clearance supply to our margins of EsoCheck. and market These a

secured we’ll million, a key cash under which We’re future payer describe collecting financing runway which as our clinical making just utility XXXX. good extends data, commercial more $XX contracting, of in progress into is and in-network well driver we of detail,

in which precancer some to focused are on give is And chronic gastroesophageal Lucid or reflux to cancer. patients cancer our developing who prevent heartburn. very highly with you For from to are GERD company as at story, background few heartburn a those risk just lethal cancer of simple, with stage, the we’re medical death gastroesophageal patients a of specifically slides disease, detection, you diagnostics chronic who longstanding commercial Diagnostics in here is known early new of mission this prevention, also just at-risk and is

on it to mortality. a about in in slight prevalent, similar far outstripping and more second adenocarcinoma an lethal over all incident and and other highly and with the mortality increased uptick rate, XX% number XXX% continues X data cancer the It’s last awful. very, most has with It’s deaths decades XX,XXX the lethal four It’s become a esophageal The Stage the condition. XXXX, is -- XXXX. over the lethal five-year cancers very five-year it’s importantly, most

So right XX% rate. over at the mortality stages, at carries still it early

precancer an impact to who order occurring. currently we that’s occurred patients X% early those historically are recommended traditional of hasn’t necessary So and are screening on death than is and and endoscopic where those have detection undergoing for in price. cut It that’s not less

through lead our and of esophageal the tool the precancer. of capable detection that’s test a and serving screening So commercially available products, EsoCheck death to prevent are EsoGuard early first only esophageal widespread cancer as

esophageal detect that an next-generation sequencing in early test EsoGuard that a an set. in-office cell be and as changes is noninvasive device as collection the accurately EsoCheck performed allows to conditions, precancerous the to is DNA in cancer uses well samples

alternative to of We an EsoCheck detection are American prevent the deaths that we’re last to endoscopy very precancer from gastroenterology the acceptable proud this Association societies, for the as early and College excited support Gastroenterological alternative American year of and cancer. major both and Gastroenterology now

results of dollars. minimum in and of tens large. Medicare recent guidelines. of is later very most commercial The addressable million. being that, guidelines The that in opportunity $XX these and market will payment flow The a the millions at-risk established updated here defined show payment has $X,XXX population large respected by that is is

greater over a highlight we’ve margin again and high progress. We getting or COGS some also XX% that us numbers. We’ll XX% down made have and very at gross in towards our getting

commercial is really Our well owned. now strategy very

just them primary is we and with specialty two primary we’re interaction different, you have discuss we encouraging here -- target, that them. that institutions. sources specialists And physicians when with We our referral care care physicians, see can and

encouraging or and them the order would then still test as educating them other test. to any screening they cancer other test DNA we’re or like So testing

to with esophageal there’s institutions, build consolidated precancer and EsoGuard opportunity centered an around the focused specialist program cancer, the With reflux. and on gastroesophageal that’s a

have performed We EsoCheck modalities also performed, where that by the -- and where and procedures is cell the operator which different. procedure the -- three collection now the is

and and We which Lucid robust. in now states are have our test continues remain physical practitioners XX perform own centers, to testing that XX nurse locations our there

EsoCheck of quarters, our already physician’s steadily days where offices at physical are horizon. In Lucid on scheduled who patients very what we at as referred have reach our our provides the overall physician’s the can they and the this expansion Centers expanded couple scheduled last nurse and and practitioners Test satellite to we’ve office attractive our a procedure perform in

or And one the physician particularly often nurses then, of the their the procedure, the and system. practitioners specialists physician -- or course, at perform at large their either institutions, of itself will practice nurse the

We show nice testing continue to steady EsoGuard growth in volume.

numbers quarter. by Here are the

we’re We’re XXX% rates. see numbers quite and this the end quarter approximately of the we’re growth to annualized a year as reporting estimated close steady now the at basis, per can on compounded for quarter an you

the referrals where To where is dive are performing procedure. on and testing who in deeper is this little coming these a from and bit occurring

because might will XX% up or this And gastroesophageal coming that’s think case physicians. quarters. our rarely with seen to managed these care continue by and most are reflux care coming primary specialists and they’re where be the patients of that -- referrals have over the up their that of We about to primary are generally from is are continue patients tick institutions that by physicians we

pie This the right Another in is EsoCheck procedure. chart. actually important trend of highlighted who’s the breakdown the is collection performing

and are are our Test Lucid in you see Centers. the satellite centers, XX% can test You XX% can see of that -- these physical where at that Lucid

overall If our collected both the being XX% these of the of performed well physician that practitioners nurse collected robust was satellite -- the that of the one you individual these, Test in recall, XX% venues. steadily are It being are quarter. increasing. still And Centers as But in proportion is being activity tests in we practice. by being Lucid or a the the XX% of sample third number, have that at so are

get model in to to as events to and patients CheckYourFoodTube to high-volume referring the testing Precancer Detection directly horizon, and adverse to We patients opportunity launched we’re another bring that another location for -- Events.

with first partnership was successful. in the Fire The Antonio Department. We’ve San been event highly

XXX You here, working at-risk Department, weekends. could and test the Fire over firefighters that’s Fire with see images in our practitioner, the two team nurse our to with Departments the practitioner working others nurse

And this positive. performed all was were tests and we’ve successful, seen the quite

positive seen in and results leading XXs. including a patients, few their in endoscopies in XXs to patients we’ve are So their that

we’ll endoscopy, and to opportunity the from cancer. biomarker those proper confirmed excited developing noninvasive to put the on is them get that had monitoring test an them So that surveillance patients prevent regimen esophageal in have

granting we this So we’re model are and -- taking we repeating. and where are

We near-term focus we’ll be targeting have is that Initiative us mentioned, Strategic the expect you country very of Direct previously and updating across in to events, the robust a I as Contracting for the conjunction I and area these unions months. other be on with a future pipeline in This, coming important of mentioned. groups doing and this

outside signed organization is As MultiPlan excited of of plans. the agreement and largest I provider mentioned, health an large we’re one secondary have in-network providers preferred independent to very MultiPlan. the with the largest

payers XXX XX the XX commercial They access to $XX including in across top EsoGuard in the billion and all MultiPlan plan with process country, partners million medical payers charges XXXX. million expands This X.X of healthcare providers. approximately customers. health

and payment with having The we’re is overall If regard. at really engagement in our you solid commercial this progress look contracting payers status, accelerating.

see of being have right our to pie XX% commercial the chart, the As own on performed payers. continue ordered you tests the and we in really

our immediate where So that’s is. focus

the holding. XX secured we’ve really payer these of and is have here the that EsoGuard point commercial We is contracts we’ve price gratifying done that now for enough in-network

Our $X,XXX. average contracted prices over

Our $X,XXX. list price is

at between are -- all between the $XX the of -- list are price. contracts somewhere contracts our $X,XXX somewhere PPO $XX Medicare, payment the all of Medicare $XX, rate and our So

therefore in-network So contracts.

out-of-network with is average planned. $X,XXX, payment a to about continue goes payments, out-of-network continue up charges. out-of-network -- with and the our contracts, out-of-network respect XX% that’s they XX% benefit nicely We’re lines most The that to payment

The primary expanding are generating drivers progressing two commercial payer well. key drivers histories. claims are These in-network to contracting future

We claims histories. are now generating

is coverage. data this you larger and the reach on in how that with and We have what plans many to a in-network this you -- claims hundreds the order these opportunity once us in-network coverage of threshold, to -- the secure need you how have of potential they with engage plants is large for

to been on paid denied seeing appeal. way through and appeals also that claims we process starting and were some see process, working initially denial that the We’re are have their payments

this own I’ll laboratory our claims started entire mid-third you through submitting remind that process quarter. only in of

the progress early in still stages of just the So gratifying. this, really we’re but is

We’re that later which utility. the of primary also little of the process commercial on the focus I’ll entails. in show what generating clinical in demonstrated bit payers, is a

solid progress good on that. So

we’ve launched -- And who others as public engaging a Direct are service I self-insured employers, the umbrella. Initiative. Contracting entities and mentioned, as entities, such under with ASO This Strategic departments unions, directly involves

have to outside secure contracts one plans directly they only their for the commercial an and and they of traditional provide revenue. engaging through with that test meaningful are that the administrative opportunity So own of them, payer services contracts opportunity control the

drive to part of model their think and their as help well other by GRAIL of alumni, ASO initiative, used important as an activity. quickly as cancer been successfully such targeting consultants with working future be and model companies will us closely has detection which This we with our studying we’re this other entities

whether the if physician change an positive, if the not that confirmatory utility physician of EsoGuard there decision want it’s if know that performing test case. negative see test. positive or a larger it’s comes order a this that endoscopy, like making, we it it straightforward clinical alter is They and mentioned to positive back specifically definition will want and in negative, is that clinical that important. orders the plans The Again, I’d utility data. very the is or endoscopy. and comes to medical clinical physician physician will a The extremely utility will this order

is important in to justify the the documenting very payers. so is And simple, medical decision-making coverage folk of algorithm this very for test

in the test. utility positive are a collecting approach to we with documenting both of retrospective and And data so multipronged collecting prospective EsoGuard clinical process the

these the can collected analyze as expect I’ll their start we who come decision with the a when of is to firefighters one making. The of the happened how will instant -- that did testing of is shot of prospectively appropriate analysis medical data order about here out. one this what the of initial we patients things leads to results the hundreds to that have retrospective an -- on and rough got in -- we events in retrospectively nice tested CheckYourFoodTube we

approval now peer So submitted will is this the and [ph] and data analyzed place and study has being completed review. IRB all shortly it’s be in for

have a analyze and completed. study that center we that nearly to collected study and patients its and way a we’ll shortly. and decision-making that also expect on be in had We single peer retrospective that’s This well were utility completed XXX from clinical is review submitted for NYU

two efforts registry. we that Lucid The prospective is our have

into the data, offered We have allowed future. to we terms that’s expect one into patient of to registry clinical the is every us validity clinical also some both data utility be of in and opportunity nurse practitioners that by collect significant but streamlining process breakthroughs now our enter tested that to the

multicenter And then has enrolling. well, as utility which is clinical prospective the study a CLUE started study

mass, to get of across studies. critical the looking patients critical number a We’re these

numbers You here the can midyear next on by see right the year.

a finally, virtual well-validated where And randomized the that. they respond asked for controlled have clinical utility. payers prospective how a trial, That’s that to approach very would physicians past then patient they’re interviewed in accepted [ph] received yes there’s casing and and are

and that about we’ll in the we’re So patients well adding to to as mix that. expect XXX enroll

the understand I that apologize slides showing. not were I

apologize seconds just mix, XX% me slide, Medicaid. highlight spend on and commercial XX of XX% payers that. the just commercial let the slides, Medicare again, Okay, this as each to payer for I

showing data apologize the enroll is to I on this that prospective and by that summarized, just the targeting Here year. clinical and that. of utility patients retrospective studies the I number the we’re slide midyear for

look laboratory from DNA. samples is sufficient higher to get those show of X% plummeted. operations, that the proportion third-party has down operational -- moving continuing summary our That very from forward a around have on low much slide rate shows quick A from and number utility we our this again, forward took lab important and first proud enhanced we probably, now winning more It’s continues when the that we efficiencies, much excited laboratory the when that the number number most over provides that numbers to low.

days. the solid have times turnaround quarters last over Our of remained couple nine at

blind and to a CheckYourFoodTube samples day the with with that per XX procedures Antonia Firefighters with they sort day our the XXX practitioners and were our current to colors, EsoCheck And process received able system San was laboratory passed test on spontaneous stress a by that XXX able for of with team perform with one the in one day was nurse the on day -- the infrastructure. current the

some manufacturing on side. just And finally, the updates

was received non-sterile mentioned XXX(k) this I clearance for This able the and EsoCheck market mouth beginning, of be to approval market to going purpose at we is operation. market a without many esophagus it is of our As and aspects the the procedure, submitted -- into sterilizing. in the the enhance to

in lead approximately XX% have COGS reduces our As times from goods and after you our cut high-volume by transferring a of dramatically. to it manufacturer further cost see, been substantial decrease

sterilization a the sterilization supply constraints chain The industry issues major we’ve that issues hot testing. with environmental a come right and that’s and in now across been the source of and ETO topic eliminated obviated is being factor our has

for a site decreased new manufacturing with the have goods approximately cost also improved manufacturing by of kit new design a also new EsoGuard and and collection We is cell XX%. these

on slides talk financial about pass the I’ll that, detail. with our So, Dennis to to

Dennis McGrath

good Lishan, Thanks, and morning, everyone.

to slide. next go you if So the

million debt. complete until million initial the in of remaining has preferred the an and of So the $XX May the of $XX closing amount $XX million. end preferred have million completed the authorized to offering $X secured convertible a We Board at the

NASDAQ was company. market some The net were to a by priced but and in with price accordance our bid participants familiar The rules. office at family accredited in investors for the the closing long-term vision financing led shareholders share for worth a high total, long-term firm IR

two this the stock preferred alternatives, variety by dividend the and investors created win a attractive incentive a mutual with more strong the exploring an to than a After years. of for matching company hold structure for

to structures a over same into for accredited debt terms. and years the PAVmed’s entered we debt purchase that securities securities an $XX provided with yesterday, existing holds PAVmed has currently in million Additionally, investor the with agreement of issue convertible similar type

coming close funding to expect We the in days. the

only stock. The and a then price for which months cash interest is not six rate. in we note pay interest can voluntary a has or in Amortization conversion a anniversary, X.X% does until six-month $X and begin

Both of two clinical structures and case its improving out preferred, on complete to utility the the for which of time, stock the years the work reimbursement. long allows of market keep company in studies periods likely

runway XXXX. deepen through is elongated substantially Our

pro the million. in year, forma basis, a the with forma results cash pro cash when our at $XX On combined beginning approximately of of

change For $X.X were from the for financings. the published quarter third cash details refer two in Please fourth million. both Form was the quarter, additional that the to on last evening X-Ks

So our the quarter we PAVmed’s published the and night operations reflect set that. the as that press the the lucid results corrected fourth last reported financials, for financial apologize in release we that consolidated be year of summary of for was tables standalone will

both standalone. this be which released consolidated and We Lucid will publishing include PAVmed afternoon, PAVmed

a was is On on Form a the available highlights full and in covered next quarter, website. last you three key our I consider SEC our disclosure but slides, on encourage the with to the in the XX-K few those annual from filed emphasize remarks context I’ll that of report night

sheet. balance the on So

as changes. it quarter was million the million and $XX for to $X.X a mentioned the quarter year-on-year fourth cash, year. sequential the decrease was see But the third You from the

debt cash loose the rather million stock that outstanding, and slide, well to both at balance to for to is Shares today for as XX/XX preserve as quarter $X.X including cash are XX-K. the and Lucid pay sheet at have PAVmed, as flat on payables in shares reflected unvested shares. authorized of the ability The level. RSAs the Vendor the relatively outstanding than by sequential year, intercompany increased the million face Boards were which the XX.X to GAAP in for of the the offset

Next slide.

fourth So year’s key slide as as XX compares well certain to quarter items, year-over-year of this comparison. fourth quarter last year’s

the review comments light my in supplemental slide about at cautionary information, non-GAAP in to disclosure Just the the information. particularly the of bottom of the information

reflects that the year last up quarter. cash third-party fourth the lab for setting from used before we the quarter lab our collections for own Revenue the prior received fee reflects fixed The monthly year. actual earlier

a of probability is recognition, calls Revenue our in key the determiner the past. in as collection mentioned we’ve

So collected the is actually vast recognition report of majority that early the for submitted patient reimbursement. when claims invoiced of and submission the occurs when out-of-network revenue we’re the in and is claim patient means innings versus

As is is called in will recognition data consideration the in gaps, XX-K, of our there revenue insufficient and ASC this invoiced. you variable when revenue reflect to guidelines, presently, predictive see XXX, jargon

fairly loss our loss $XX.X $XX.X to and million. the of quarter, the compared GAAP for fourth third non-GAAP Our million quarter flat is

as graphic Cost the other consistent sequentially. flat. was in costs. be relatively marketing our which OpEx operating a and by Sales expenses diagnostic is to XX-K of revenue of R&D Total and decreases with were relatively and G&A, in allow is and practices flat XX presented increases periods being expenses fixed of non-GAAP facility offset companies. operating the lab operating Slide of reflected. XX-Qs illustration lab EsoCheck expense devices, our for primarily consists supplies It

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

Operator

question first Kyle Mikson our from And Instructions] Canaccord Genuity. from comes [Operator

Your line is open.

Dr. Lishan Aklog

good. Kyle,

Dennis McGrath

Kyle. morning, Good

Operator

your Just Mr. be Mikson, little having one is right. open All here. a moment. to technical difficulty line Seem

Kyle Mikson

me hear Hey, now? guys. Can you

Dr. Lishan Aklog

can. We Yeah.

Kyle Mikson

right. All Perfect.

Dennis McGrath

Yeah.

Kyle Mikson

Yeah. Interesting.

So congrats the Thanks results. for questions. on the

well. Medicare was rate the and seems ASP guess. high. then of just about super denial like is like talking payers, $X,XXX dynamics, $X,XXX, the not seems PPOs $X,XXX pretty as I But $XX, have which It’s pretty for is effect reimbursement low. you’re Cash surprising ASP collection the the it On at here like almost commercial out-of-network still like payment rate,

point the is test mind catalyzes that? per like occurs So what of and inflection and through walking just would revenue when why that so you kind low

Dr. Lishan Aklog

moving a life high target, but I’ll There’s deeper, out payment up cycle run is bit just cycle Because days. so into of level. let average Dennis forth. a maybe dive and the claims the can provide adjudication -- This of to right? that for XX a

Dennis what what while any revenue going further I’ll was a in we’re quarter So bit snapshot in seeing little a on really a of is detail. back. in submissions with particular But let

Dennis McGrath

Correct.

Lishan take were was that and indicated, claims process do the time early those than claims So, the into submitted some as insurers There fourth fourth leading quarter. XXX quarter of beginning quarter, to to the start first to part in up and amounts in. billed the the trickle more

first game asking the both appeal, an are quarter, for early the In being adjudicated and we It’s as That still as a will steam at well to the denial year -- are in up pick information. pace. starting collect that will unfolds. claims as additional accelerated from and

are what MultiPlan fourth the larger is The United, getting well from and that quarter improve that the endeavor, we’re rates. we quarter results out-of-network some are first quarters not expect that reimbursement paid as of will particularly, indicative players, of we and paid coming certainly the helps so far getting as with

the in be backlog now, large should the that, for up those to ultimately, when terms to That in we’re cash there that is match claims and and will there of between when a are a time, reimbursement, timeframes. gap is full hoping submitted But pick get collected. we so continue

Dr. Lishan Aklog

submitting I just the claims emphasize couple things, could again, a just phase If of in to, started here. of add August. end shift the We the of sort

mid-to-late basically third So quarter.

So cycle the XX-day for if cycles tests. and of you take those kind results, fourth quarter are new longer that typical

tend tests those established, -- to time they One take are more the turnaround longer. of

were submitted that quarter. the in the quarter half fourth the portion really a in the third reflect only small of So of numbers -- claims

divided have number the adjudication the gone yet, of on have right I But is very -- denial is, are now. early rate, good -- there that rate sort that again, really don’t full this. been numbers. number of have we point denial denominator the don’t have these because make process would through low you other The We claims the mentioned isn’t of a

are the way of still them most So the are through process. have of either majority vast more been claims paid -- or the likely working their

Kyle Mikson

really why was sounds dynamics of mean like to that of of helpful continue I can see throughout promising, Looks a similar to maybe -- X,XXX. on really XX% to believe Maybe there? think that’s very growth awesome. quarter, first sequential there guys accelerate anything for that That that that subject, the here, other And about sounds sequentially, progresses just and maybe too. test inflate seasonality the Okay. like reason sticking kind type going it could trying or growth potentially kind performed Any good forward about from so is that XXXX. just I but it XQ reasonable, how number? projection

Dr. Lishan Aklog

Yeah. No.

I from think quarter, of that other you and you as companies. the look fourth common, you bit at slide, that’s seasonality a in saw Kyle, know, there’s if

to as We to it quarter the to larger in in structure relates states work fourth satellite a Centers. compliance how also of had Lucid the couple through structure, some compliance our Test some do establishing

demand there’s So and pent-up both Florida some addressing. that we’re in California there

that so about you for time, something that grow continue I if at think, and growth period is look obviously, kind XX%, the line, to like some goal But trend the is the sustainable in is of quarter-on-quarter, overall compounded rate, XXX% of that. to or

a show. not in We’ve sales said our that on that past, know you did think, we’re full plateau decided sales as right? to I the team expense throttle, we’ve and

be this to for flat year. that expect We

payment test think well improve predictable important be the as role our we’ll growth entities, that Direct play and growth more on And and getting high-volume we’ll as -- such continue to time. volume we start team current events, Contracting think over we with we our initiatives, can in type these ASO an as as testing drive contracting,

Kyle Mikson

great. was That in start centers. you’re I of center just there guess, the sort got will position, one MultiPlan thinking right. And suppose ordering similarly, just test I and I strategy and is ordering your but know on per to investing more. providers not hold, your some order All guess, And I on board Okay. about test get well current so you some number, as visions of and the

denominator is So just just of the number there kind a per in that’s XXXX? test plateauing, I is is trends? doc like progressed of that if pretty launch -- through I’m like Yeah. wondering How still the healthy. Is since mean increasing. any sort

Dr. Lishan Aklog

Yeah. I on. we’re have good mean sort to you have I focused a on, number of What number that. don’t we of a focusing give to what single providers. we’re a capture

have, now mentioned, and we’re the not Lucid have geographically we physical just do threat again, be We that as putting locations. given us, fact we’re Test the can you to satellite not Centers clear, --

test where to Antonio and They can as important and of do XXX key anchor we practitioner on still team, in for our go are remain that local their more within the San but clinical week. an both team, branch -- in geography to areas nurse and sort headquarters the our fact out the they got literally plane a

of is enhancing our that geographic the providers. and of All reach number

are effort is working. a focus lines along it But now business. -- on to and order along we on continue reps focused clip, stickier having incentivized On sales that by have those accounts increasingly now very right to our a team the

So more business the repeat of loss we issue The with ordering of interest. not It’s is have a out -- more and stickier potential. ways. sort figured matter it’s about of just

I the of And day center have where by than previously, is the about particular couple had our esophageal of bring model of issue where center. whole it, precancer nurse like reps it’s the testing center to this is and going in to practice but and points that front a contact having the come on to we weeks, is I’ll much know we satellite multiple as it front next a more they fees or think front a things that and be by one week reiterate before, Lucid keep does mentioned there the to to and practitioner just I’ve going really the day

don’t So, on you yeah, are have I hard data actually the are good. on trends -- that, but

We we’re but both. doing also business, -- we’re are getting stickier

approach mid-throttle the we while breadth trying predictable and until depth more We’re at get reimbursement. keeping same a time, of to kind get

Kyle Mikson

Okay.

Just off. one I before hop last one

years but So And I like seem future, there’s does going that crack B would I the kind XX trials. FDA know down forth, of towards on to I BEX, next you to to and or year the But ability back to near FDA, FDA in here? guess. lot like guess EsoGuard your a regulating one in the the what ODTs is obviously, of months. it plan starts delayed on the BEX push tests happen What’s two in the event offer or

Dr. Lishan Aklog

Yeah.

rule the area We’re monitoring as events. all the grandfathering concerns These carefully. don’t the are well have around That’s declaration We recent making as any two-year certainly clauses. one-year not FDA’s in are near-term. There valid or act, long-term. in this

where win have uninterrupted. We in have where confidence data will the will to our to regard our risk continue with able think be to appropriate assessment wider we we that risk,

we’re that. mitigate And so monitoring We’ve strategies to closely. established long-term

we in to I -- NCI-sponsored anchored On results the mention except utility clinical critical study, Those studies to see publications the we and will starting with other clinical our consortium studies Case review should and were the masses BETRNet our from centered those start should online Reserve. meetings side, before start -- that Western in They’re out. BEX BETRNet that are the data get around come we peer of well utility good starting collecting data. on utility of data. data data have getting by clinical are that’s there sources

have concerns any near that, that. in the we’re we but don’t with So monitoring

Kyle Mikson

the great, Perfect. Appreciate it. question. guys for That’s Thanks Lishan.

Dr. Lishan Aklog

lot, a Thanks Thanks. Kyle.

Operator

question from Osborn our of Cantor And comes Ross you. next Fitzgerald. Thank

open. Your line is

Dr. Lishan Aklog

Ross. morning, Good

Dennis McGrath

Ross. Hi,

Ross Osborn

Good everyone. Hi. morning,

of the a I of reps are generally, but missed So, what you this, where end XXXX? hiring plans may terms year and did for the have couple sales in calls,

Dr. Lishan Aklog

a sales is we what in couple clinical XX in coverage we sufficient as We’ve some settled and our specialists. nurse we had that had in reflects personnel, we where have make well that clinical team, backfilling, we target support the as strategic said practitioners sure added layoffs January XX, update a -- some the would to there. have and call which of but we So

up or volume growth to to flat be about than prepared that the there that side opportunities talked to the drive flat maintain quickly dial I with accelerates right through to the allow of type the is more year to to that plan test that team just And will down. keep now if this reimbursement continue Kyle. Certainly, and we’re

Ross Osborn

Okay. you for near-term, presence your do accelerate then least as Great. your satellite to to but you stage testing original I satellite geographic discuss realize testing at is could then geographic And what follow-up, can focus activity? on relative the a And now the rollout?

Dr. Lishan Aklog

physical do test maybe here there’s model, Yeah. no still and our shifting nurse broader want sure anchor. the of practitioners make are to there remains it just our tests isn’t not I not pausing misunderstanding to where That’s have we’re in a center just opportunity based, -- we’re move or but to the geographic that restate kind they area. physically

is and is physical our XX that coverage The sales with now and -- states test sales locations right the we good broader really currently team there the have. that coverage than centers XX

centers we where have we practitioners And don’t nurse so that and physical there satellite center the using states increasing test model. in activity are Georgia, there is opportunities, using other test support could where example, for

entire -- remain covers the location and area, -- geographic location is reps, broader we’re we’re particularly, certainly big California, covering for states, with every Texas state big single not it those So single XX not Florida, every and Ohio, -- coverage us. metropolitan the we’re the major are or not but certainly, --

Ross Osborn

taking Thanks for questions. our Great. Okay.

Dr. Lishan Aklog

Ross. Okay. Thanks,

Operator

comes And our Matson of next from Needham & Co. question Mike

is Your line open.

Dr. Lishan Aklog

Good morning, Mike.

Dennis McGrath

Hi, Mike.

Mike Matson

Yeah. Good morning.

that number so the did tests? Just expect event, the to Is and those for you a you paid like included get said there. test question on -- you tests CYFT in XXX do

Dr. Lishan Aklog

question. interesting an That’s

So, project that. anything numbers these applying a and -- we or and patients are insurance have yes, so they’re research commercial are are there not that in commercial like -- they included those

to in we do the commercial So numbers. them

yet. know is often generally, We have interesting don’t their own with an for an a It’s so ASM, dynamic, because firefighter decision-making they opportunities. Union Firefighter group, the typically example,

might you with expect to that engage our directly. ability So them

we’re was linked particular. dealing and organizing dealing unions team That’s Contracting firefighter side, right, these because typically the in to the the CYFT saying our on with why I are that with events logistical the Initiative, tightly Direct

structure we’re closely self-insured typically, proactive so we’re entity, of beginning the these much pipeline, payer working these understanding up. to at expanding with quite what’s set a And the about robust and within as things the each being more

the some and paid certainly be that could prospects we know of don’t the as our hope obviously. rates, claims of higher. a some but that hope, get yet, So percentage the there’s payment these promise result of tests That’s

engagements with of positive. an have And that We handle with testing. of testing been it’s single this of aspect volume with high event. attractive large, chunk the these that. entity so And and business entities our it’s because a in particular firefighters a a it’s chunk It’s can extraordinarily good

and understand dynamic than They need. their They’re than focused -- typical a health with plan. different very engaged a a protecting very typical the it’s members on

So we demonstrate brought up, optimistic. we’re I’m but obviously quite to that. that have glad you

Mike Matson

cash think think, Okay. the that year your this that you million XX%. said, the Understand. reductions, $XX is you’d used said earlier of by then about in XXXX, announcement you reduce And cash then about with I And of right? I cost cash Dennis burn the

-- $XX for number that reasonable? that a XXXX. imply seem So would seem sort Is low like of to million

Dennis McGrath

for half The to the be rate should Yeah. $X.X a the collections, million, to and estimating range. number. of to expenses down start larger that million going continue at second at the the burn in decrease are improve flat then as we will And significantly half remain rate the will $X higher for the first a burn bring gradually is operating year

Mike Matson

-- number… that X% Sorry, is the to a quarterly that’s X.X%,

Dennis McGrath

half. first the That’s

Mike Matson

entire... that -- quarterly That’s

Dennis McGrath

number. Yeah. Quarterly

Mike Matson

number. Quarterly

Okay.

Dennis McGrath

Yeah.

Mike Matson

concentration test do sort center geographic And locations? it. sales match How lives Got that of right. up guess, those, covered with so force MultiPlan, All the yeah, I to then, there. the and of your

Dr. Lishan Aklog

national. with MultiPlan have they There

Mike Matson

Okay.

Dr. Lishan Aklog

the corner in are They every country. of

our that a where does -- and how look market process, at are our access aligns have team with robust whereby we payers team. So they

that So that’s a we process utilize.

are -- the that that’s primary really of plan. has complementary contracts and a some had, that And we’ve is have actionable network, PPO PPO They other regional those MultiPlan that network. their a national more much

across opportunities all of to lots there’s So the engage country.

Mike Matson

earlier And another mean, I I but do apologize this it, if MolDX, Got you’ve -- you at when getting take but make utility could you think coverage? missed MolDX finally, efforts, shot then, and mentioned I Okay. it. you discussed clinical the

Dr. Lishan Aklog

is be already shot There’s out to no Just there. The No. other shot. Oh! clear.

waiting. just Yeah. We’re

as covers nothing for participated period. that well year last LCD, where our us through publication process the the went MolDX, as upon we to there’s draft process, more through do. meeting the laboratory We open of Noridian, as So with both the with common as well

a there’s nothing to submitted, do. just that’s for Once waiting It’s game. us

to looking at So time. they’ll their back it’s go their and on desk. at They’re it it

even quite submission LCD get the draft you from while a the took recall, ingrain If published. to it

make particular when we that predictions So no about happen. will

-- the X. seek to updated an a category you LCD you But into the EsoGuard they’re for did to foundational these LCD translate a remember -- LCDs, utility foundational clinical clinical The of utility. that point a good for general and in are require made at to Lucid linking submission ability will respond data. of our specific LCDs -- testing LCD

in the hurting have midyear. because it which So a LCD, right until fishing is we the to technical a to the timing won’t of until not we LCD respond the be clinical actually to test utility we won’t convert LCD now midyear. until to us, data, to The which have is submission do position

good on that, reason ordered towards strongly for side the is being and testing the commercial commercial remain But of Medicare. waiting. remain focused we’re we’re the the XX% the news XX%, demographics with being tilted of payers patients is -- the to But patients

really wait on side, while commercial continue side. pushing to full So on Medicare hard the steam just ahead the we’ll we’re

Mike Matson

it. Thank Got you. Okay.

Dr. Lishan Aklog

Thanks, Okay. Mike.

Operator

BTIG. you. from from And Thank Massaro Mark question comes next our

Your line open. is

Dennis McGrath

Hi, Mark.

Mark Massaro

guys. taking my Thank for Hey, question. you

get guys clinician get the endoscopy clear clinical about suggestion. on based confirmatory the you negatives need utility. The you to and a to need just positives to were need yeah, very to what So, do show just one not

Lishan, And you was of couple plan patients, maybe I numbers, you XXX confirm submit give So then utility, mean, a can you give the that XXXX? hundred sense midyear to like me for looking can a that are we the clinical us that, sense patients? at and a

Dr. Lishan Aklog

Yeah. Yeah. it the to slide. I’m going show. was previous to go going hope I to back

So let’s deeper do a do -- of dive let’s into kind this.

hold to in the use second, just you can is audience. I the a Mark, model. glitch push So the technical on want there here. see there. Oh, numbers Hopefully,

is utility otherwise to that. to summary, minor fail they loss like which mean? actually correction endoscopy. forth, So excellent, falls fall It clinical to of that what get things so your they up show quick through, have People and and even doesn’t one mean the

in to for ordered long an demonstrates right? the are to there going that what other physician document as they then esophageal where the that reasons, times negative, that We -- utility. just in order not clinical was endoscopy that as endoscopy for the or have that physician not even for screening endoscopy did ordered -- And be precancer of did, order But our shows endoscopy.

of five an really you CheckYourFoodTube numbers we’re will I approaching utility be here batch areas The this. another show on different I sort event a to a picture each more, are is of give focused because intended new to of multipronged like mean number data. of be there. clinical I we’re all-out ways effort, this that

are attention of the But useful. of truly them the will which garner the are strongest are study. most that -- prospective the the main ones all us all from The studies, important the them are CLUE registry payers. Those two Lucid and will be and

be and will our midyear those wait we our estimates We so to and some as -- they The data don’t come specific in. have for for are targets submitting number.

of have peer we we’ll review. patients for interim be a critical these, each once to While involved submit in number of able data

hard and a -- and And the so we better peer projections of -- submitted it’s the bit have a retrospective some certainly particularly, data the, here, by that for review by would little and would we trajectory on little CYFT have published. until I know midyear, the but bit to expect

be a now time right online The for peer bit issue. journals, with more other turnaround may not time. big little of review But one kind is

makes look ballpark sense. numbers, to we ballpark and end just targets, where are that these So hopefully up

Mark Massaro

Yeah.

is approximately in for MolDX study? XXX a likely so yeah, individuals looking So, observational prospective

Dr. Lishan Aklog

right. I about that’s think

right? able rate numbers, where that’s that patients you certainly and targeted studies it, the the to the about those. to about We will We because XXX XX% X% is registry. prospective now right true have if concluded listed combine in need you right, be But think you’re our in positivity

that that for positivity did XXX for will get XX have get those you could be a referred patients, positive patients you and at let’s they not say, if there So means referred endoscopy. that XX% who did rate, are -- patients show XX

XXX that large positive. that XXX obviously, negatives patients -- number patients, for show the the referred that not other the are XXX, then not, not sorry, that’s And getting pretty to negatives demonstrate or

Mark Massaro

complete right. All it Perfect. the the procedure. that just order Yeah. to rather than for to needs needs Thanks physician patient the clarifying

Dr. Lishan Aklog

Yeah.

Mark Massaro

Cool. All right.

about one-fourth higher And next San because have think in Department is volumes you and a my firefighters I your really of interesting, release really, risk Antonio press math. the the cancer. that’s esophageal on So question, noted for GERD based that Fire QX my in

pull you love events your that you hear maybe many think is near-term might and risk I your think and groups are, to some the like you about So what pipeline future off to in of what for robust. bit indicated I other able funnel a more how of be just would looks little these XXXX. high do

Dr. Lishan Aklog

Great.

So the pipeline is robust.

successes your on focus to going you’re obviously, -- have We first.

a fire esophageal presumably of on cancer And there environmental based the focus So on increase in well-established has exposure. been key the risk of you firefighters as published initial men lynch is data departments. XX% other is that the mentioned,

a there firefighters fire are lot of have who departments. So

the them, up calling a of lot those start to sites. picking seeing and we expect phone on We’re and more

risk folds of -- Mark, But sort certainly are other then of as groups. into broader this there I higher the kind mentioned,

unions, commitment engaging can that But other members committed is contracting, with very I entities their things and we into starts of -- public placement in direct they’re truck think very You and this level service one are is, high. to the engage from as of passion mentioned, to this firefighters meld fold learned drivers, to with approach that -- is of the groups. of the other other overall to right, kind or the

one direct that to do drives something with very us by by forward a ability the where and entities are and is that’s that -- our we’ll look so that for big to a to. self-insured, right engage -- patients their is commitment the opportunity one And driven that their conversation that

number. prepared not I’m give you sort to a of a really

trajectories I stick to think regard with test with right our going now, to we’re volume.

and but primary approach hard. to physicians, we’re And something We continue pivot, certainly do clarify drive to occasionally, out on that that and large how logistically, to both figuring traditional comes to up but -- good. not far continue institutions, that’s this care for a is we so specialists unchanged just so working

good expect you do. we to bit to a next need in fleshed more number, a to to So out be the you’ll see couple give probably, able we of little as quarters, what targets

Mark Massaro

about think Maybe my just question, rest we great the Great. Okay. MultiPlan see the as last of to year, coverage.

think… you getting like you’re conversations relatively the I the on numbers curious it’s in you’re that if early know of think should small the payer paid How with a -- getting Just is sounds some least it commercial are payers large payers. at excellent. days. able These But and we whether think national regional of sign the some do you to the fact or might denials is improving you be as year progresses,

Dr. Lishan Aklog

Yeah.

Mark Massaro

payer coverage? about …

Dr. Lishan Aklog

Yeah.

can increasing our that and mentioned, Medicare is payments, I is confident lessons want list from, like, floor our the are larger price our really, feel main payments based hold. that to to pricing now there’s confidence price I holding. developing One on is really the plans out-of-network the think about price that a -- the really between out-of-network, we as I point get that have price feel as $X,XXX lessons. enough is, we’re -- Dennis going based like that we two home -- mean, really, on respect the that that

board the plans, multiple we’ve our advisory meetings conversations. and had larger On expectation,

are have a quite message require the to likely is later to and the data that retired -- utility that and to get year. active the order on it’s what to larger retired based plan, the a clear to pulse -- plans finger that medical directors. clinical in as the on we in us meaningful have with expect good So And active going larger engagements

continue. MultiPlan with in the like the will plans and our secondary PPOs, smaller But interim, conversations

the meaningful project we think of not down utility knock some I I a we’ll binary But it’s necessarily have wouldn’t one So clinical that data event. larger until here. plans

Mark Massaro

much. so sense. That Okay. makes Thanks

Dr. Lishan Aklog

Mark. Thanks, Great.

Operator

Capital. And Edward Woo [Operator Instructions] our comes Ascendiant from question from final

line Your open. is

Dr. Lishan Aklog

Ed. morning, Good

Edward Woo

and quarter. the Good morning on congratulations

what’s terms characterize improvement? terms In have, will be average how and of in salespeople there that for the you do XX tenure the productivity whether room you the and of

Dr. Lishan Aklog

Yeah.

have would about hard number, is, So median. a say, be that’s number for it question. now I that we’ve -- to are certainly great I but nine six we would the the you, increasing, months months a is don’t plateaued probably,

The had median. good a the a rep has in have median decent field. we So time now

they’re to our of our -- accounts. large freed team, active more just with a in and on closed not mentioned be I as the in because field by them, it’s time calls, and spending and We strategic active plateauing ago recruiting. that time strategic will couple sales leadership a the weeks more up the all account more interviewing And previous

that more experience to over median just increasing steadily go will engaging help with up up year and So make as to six-month and trying nine-month experience go the the accounts that with stickier. time obviously will progresses field and number found and that an in year. them number we and more interacting the Obviously, physicians will

Edward Woo

you Thank and thank good Well, I you. for guys wish luck. questions answering Great. my you

Dr. Lishan Aklog

Thank Ed. Thanks lot, a you.

Operator

to back over And the in no call I’ll our questions we have queue. host. turn further

Dr. Lishan Aklog

Great.

any free with our further contacting mp@lucid -- questions, everybody’s on at our everybody’s Mike So, further information appreciate get Feel call. luciddx.com by hey, you can everybody and Parks contact us effort taking spending us thank update time with questions. and for any for on morning @pavmed.com the We the or support. for to website, you

thank So much. very you

Operator

day. conference pleasant you have for today’s a concludes attending call. This and Thank

Lucid Diagnostics (LUCD) 14 Mar 232022 Q4 Earnings call transcript