• Revenue: Record revenue with a 20% increase quarter-on-quarter.
• Net Income: GAAP net income of $61 million due to deconsolidation adjustments.
• Earnings Per Share (EPS): Positive primary EPS of $6.43 and diluted EPS of $1.44.
• Cash Burn Rate: PAVmed's stand-alone burn rate for the third quarter is about breakeven.
• Operating Expenses: Total non-GAAP operating expenses of $10.1 million for the third quarter.
• Convertible Debt Restructuring: Agreement to exchange $25 million of existing obligations for Series C convertible preferred stock.
• NIH Grant: Received a $1.8 million NIH grant for Veris Health.
• Lucid Diagnostics Deconsolidation: Deconsolidation completed on September 10, reducing shareholder deficit by half.
• Lucid Share Ownership: PAVmed's balance sheet now includes $25.5 million market value of its 31.3 million Lucid shares.

• Warning! GuruFocus has detected 5 Warning Signs with PAVM.

Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• PAVmed Inc (NASDAQ:PAVM) reported a transformational quarter with strategic steps to strengthen its corporate structure and balance sheet.
• The company successfully deconsolidated Lucid Diagnostics, preserving ownership without absorbing operating losses.
• PAVmed Inc (NASDAQ:PAVM) restructured its convertible debt, allowing it to maintain its Nasdaq listing.
• Lucid Diagnostics reported record revenue with a 20% increase quarter-on-quarter.
• Veris Health received a $1.8 million NIH grant to optimize its Cancer Care Platform for underserved patients.

Negative Points

• The deconsolidation of Lucid Diagnostics led to a significant change in PAVmed Inc (NASDAQ:PAVM)'s financial presentation, complicating comparisons.
• The restructuring process delayed the capital raise for Veris Health, potentially affecting timelines for product development.
• PAVmed Inc (NASDAQ:PAVM) is reliant on obtaining direct funding for further R&D expenses, which could impact future operations if not secured.
• The company faces challenges in maintaining sustainable compliance with Nasdaq listing standards.
• The delay in financing may push the FDA submission for Veris Health's implantable monitor into the second half of 2025.

Q & A Highlights

Q: Could you share any learnings from your work with The Ohio State? A: We've had a strong engagement with The James Cancer Center at Ohio State University Medical Center. The pilot program enrolled 100 patients on the Veris platform and was extended for another 30 due to high demand. The pilot was successful, with positive feedback from the institution, and we're now discussing a strategic partnership for commercial engagement.

Q: Regarding OpEx for PAVmed, how should we think about that in the coming quarters? A: The pro forma slide shows our baseline OpEx. As we secure direct financing for Veris or PortIO, that will drive additional operating expenses. For Veris, it's a couple of million dollars over 6-8 months, and for PortIO, about $4 million over 12 months. The baseline should continue, with changes expected in 2025.

Q: Is the Veris program still on track for submission with the FDA on a 510(k) basis before the first half of '25? A: Due to delays in closing financing, the submission may extend into the early second half of 2025, but hopefully not by much.

Q: How much total funding is lined up for the PMX incubator? A: We've engaged with an angel network to raise $4 million at a $42 million pre-money valuation. This will cover expenses for the second-generation PortIO and complete the IDE clinical trial to commercialization. The diligence process is nearly complete, and we expect to start raising cash soon.

Q: What does the competitive slate look like for The Ohio State pilot? Were you competing against other diagnostic devices? A: The cancer center has not engaged with a digital health platform specific for cancer before. They are exploring options for a broader remote patient monitoring platform, but during the pilot, we were the only product utilized.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.