Q1 2024 PAVmed Inc Earnings Call & Business Update
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Operator: Good morning, ladies and gentlemen, and welcome to the five med first quarter 'twenty 'twenty four business update conference call. At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time. During this call you require immediate assistance. Please press star zero.
Operator: Good morning, ladies and gentlemen, and welcome to the PAVmed First Quarter 2024 Business Update Conference Call. At this time, all lines are in a listen-only mode.
Operator: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Tuesday, May 14, 2024. I would now like to turn the conference over to Matt Reilly, Director of Investor Relations. Please go ahead.
We're the operator this call is being recorded on Tuesday may 14th 2024.
I'd now like to turn the conference over to Matt Riley Director of Investor Relations. Please go ahead.
Matt Riley: Thank you operator, and good morning, everyone. Thank you for participating in today's business update call. Joining me today on the call our Doctor, where you saw that clock, chairman and Chief Executive officer of passing that along with Dennis Mcgrath Chief Financial Officer.
Matt Reilly: Thank you, operator. Good morning, everyone.
Matt Reilly: Thank you for participating in today's business update call. Joining me today on the call are Dr. Lishan Aklog, Chairman and Chief Executive Officer of PAVMed, along with Dennis McGrath, Chief Financial Officer of PAVMed. The press release announcing our business update and financial results is available on PAVmed's website. Please take a moment to read the disclaimers about four different statements in the press. The business update, the press release, and the conference call all include forward-looking statements, and these forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed.
Operator: The press release announcing our business update and financial results is available on <unk> website. Please take a moment to read the disclaimers about forward looking statements in the press release the business update press release and their conference call include forward looking statements and these forward looking statements are subject to known and unknown risks and uncertainties that may cause.
Speaker Change: Cause actual results to differ materially from statements made.
Matt Reilly: Factors that could cause actual results to differ are described in the disclaimer and in our findings of the Securities and Exchange Commission. For a list and a description of these and other important risks and uncertainties that may affect future operations, see Part 1, Item 1A, entitled Risk Factors, and PAVmed's most recent annual report on Forms 10-K filed with the FCC, and any subsequent updates filed in quarterly reports on Forms 10-Q and subsequent Forms 8-K.
Speaker Change: Factors that could cause actual results to differ are described in the disclaimer and in our filings with the Securities and Exchange Commission.
SEC: For a list and description of these and other important risks and uncertainties that may affect future operations see part one item one a entitled risk factors and I've met its most recent annual report on forms 10-K filed with the SEC and any subsequent updates filed in quarterly reports on forms 10-Q, and subsequent forms 8-K.
I've met: Except as required by law I've met disclaims any intention or obligation to publicly update or revise any forward looking statements to reflect changes in expectations or in events conditions or circumstances on which do your expectations may be based or that may affect the likelihood that actual results will differ from those contained in the forward looking statements.
Matt Reilly: Except as required by law, PAVmed disclaims any intentions or obligations to publicly update or revise any forward-looking statements to reflect changes in expectations or in events, conditions, or circumstances on which the expectations may be based or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. I would now like to turn the call over to Dr. Lishan Aklog, Chairman and CEO of PAVmed. Lishan, you can take it away.
Speaker Change: I would now like to turn the call over to Doctor, Alicia <unk>, Chairman and CEO I've met Lisa you can take it away.
Speaker Change: Thank you, Matt and good morning, everyone. Thank you for joining our patented quarterly update call.
Lishan Aklog: Thank you, Matt, and good morning, everyone. Thank you for joining our PAVmed quarterly update call. Before proceeding, I'd like to thank our long-term shareholders for your ongoing support and commitment. We continue to leave no stone unturned to enhance long-term shareholder value.
Speaker Change: Before proceeding I'd like to thank our long term shareholders for your ongoing support and commitment we continue to leave no stone unturned to enhance long term shareholder value.
Lishan Aklog: We continue to be pleased that Lucid, which is PAVmed's strongest and most advanced asset, is making such great commercial progress, and it continues to successfully finance its operations through long-term fundamental investors. Lucid has a runway to advance through key upcoming reimbursement milestones on its pathway to profitability. As discussed during our last call, we have updated PAVmed's overall strategy to drive shared holder value through independently financed subsidiaries, which, like Lucid, can leverage PAVmed's shared infrastructure.
Lisa: Because you're going to be pleased that Lisa just pattern the strongest and most advanced asset is making such great commercial progress and it continues to successfully finance its operations through long term fundamental investors lucid is a runaway to advance through key upcoming reimbursement milestones on its pathway to profitability.
Lisa: As we discussed during our last call we have updated habits overall strategy to drive shareholder value through independently financed subsidiaries, which like lucid can leverage <unk> shared infrastructures.
Lishan Aklog: The initiatives we announced in furtherance of this strategy, specifically VERUS's updated commercial strategy and the PMX incubator, are progressing well. Let's begin with some highlights, starting with... As we noted in yesterday's LUCID quarterly update call, first quarter e-cigarette revenue was flat quarter on quarter, while first quarter test volume grew 10% quarter on quarter.
Lisa: The initiatives, we announced in furtherance of this strategy specifically various as updated commercial strategy and the Pms incubator are progressing well.
Lucid: Let's begin with some highlights starting with lucid.
Lucid: As we noted in yesterday's lucid quarterly update call first quarter Easter Guard revenue was flat quarterly first quarter test volume grew 10% quarter on quarter Fluke and further strengthens the Isa guard clinical data evidenced base supporting ongoing engagement to secure commercial and Medicare payer coverage very importantly, a.
Lishan Aklog: LUCID further strengthened the e-cigarette clinical data evidence base, supporting ongoing engagement to secure commercial and Medicare payer coverage. Additionally, very importantly, a date for a Moldex pre-submission meeting was secured for July 17, 2024. Averis Health. As I mentioned, we're executing on our new strategy, which is focusing on large academic cancer centers. And we are very excited that we were able to complete a memorandum of understanding with Ohio State's James Cancer Hospital to implement a pilot program enrolling their patients onto our Averis cancer care platform.
Speaker Change: Date for a multi X pre submission meeting with secured for July 17th 2024.
Lucid: Very helpful. Whereas I mentioned, we are executing on our new strategy, which is focusing on large academic cancer centers and very excited that we were able to complete.
Speaker Change: Memorandum of understanding with the Ohio State James Cancer Hospital to implement pilot program enrolling their patients onto our various cancer care platform, we have today.
Speaker Change: Solid progress on pursuing financing of virus and we have a clear path to FDA clearance of our implantable monetary.
Lishan Aklog: We have made solid progress on pursuing financing at Averis, and we have a clear path to FDA clearance for our implantable monitoring pending independent financing. The PMX Incubator launched last quarter, and as we reported last time, it's a wholly owned incubator which we developed in partnership with Hatch Medical. Our first target is to raise capital for Port IO, and we've done so by creating a separate entity for Port IO as a wholly owned subsidiary of the incubator.
Speaker Change: Pending the independent financing.
K Max: The K Max incubator launched last quarter and as we reported last time, it's a wholly owned incubator, which isn't which were which we developed in partnership with <unk> medical our first target is to raise capital for Puerto Rico, and we've done so by creating a separate entity for a port.
Speaker Change: We owned subsidiary the incubator to talk about that in more detail shortly.
Lishan Aklog: We'll talk about that in more detail shortly. So I outlined the strategy, and we'll refer to it again here and just summarize what PAVmed's strategy is. It's consistent with its overall vision, but with some adjustments.
pemex: So I think thats, a strategy and a little well refer to it again hearing just summarize pemex strategy as it's consistent with its overall vision, but with some.
Speaker Change: Our strategy is to drive shareholder value through holdings and independently financed subsidiaries like various <unk>.
Lishan Aklog: Our strategy is to drive shareholder value through holdings and independently finance subsidiaries like Veris. Lucid and PMX Port IO, which are managed through a shared services structure that is held at the PAVMed level, have strategies to follow the successful Lucid Path and seek financing opportunities directly into Verus and the subsidiaries based on the PMX technologies and future. We're also actively seeking out new, groundbreaking, independently-financeable technologies with large market opportunities that are agnostic of sector to leverage existing PAVmed infrastructure. And we hope to announce such a transaction in the not-too-distant future.
pemex: Lucid and Pemex Port Io a better man that are managed through a shared services structure that is held at the parent level.
pemex: Our strategy is to follow the successful lucid path and seek financing opportunity directly into Paris, and the subsidiaries based on the Pms technologies and future subsidiaries.
Speaker Change: We're also actively seeking out new groundbreaking independently financeable technologies with large market opportunities that are agnostic of scent.
Pemex Port: Sector to leverage existing pipeline infrastructure and we are hoping.
Pemex Port: Hope to announce.
pemex: Such a transaction in the not too distant future.
Pat: So Pat corporate infrastructure is that shown here.
Lishan Aklog: So, PAVmed's corporate infrastructure is as shown here. PAVmed has the shared services infrastructure on behalf of its subsidiaries, Lucid Diagnostics, Ferris Health, the PMX Incubator, which houses Fort IO, and other technologies in the medical device space, and then potentially and hopefully other technologies that we can acquire a license and finance. So just a very brief couple of highlights on LUCID.
pemex: Our patented.
Pat: Shared services infrastructure on behalf of the subsidiaries that lucid diagnostics very health, <unk> incubator, which houses snap board IL.
Pat: Other technologies in the medical device space, and then potentially and hopefully other technologies that we can you can acquire a license in France.
Pat: So just a very brief couple of highlights on lucid I would encourage you to.
Lishan Aklog: I would encourage you to refer to the webinar from yesterday, as well as the press release, for further details. As I mentioned at my opening, we're happy with the progress that Lucidus has made on the e-cigarette front. You can see on this slide that revenue was flat from quarter to quarter at about a million dollars, and test volume bumped up about 10%, and we are now, we are continuing our efforts with a fixed sales force to maintain our test volume in that approximate range and drive revenue growth through realization of revenue with our
Speaker Change: Referred to the webinar from yesterday as well as the press release for further detail.
Speaker Change: As I mentioned in my opening we're happy with the progress that Lisa just made on the east regard front.
Speaker Change: On this slide that revenue was flat from quarter to quarter and about $1 million as in test volume pumped up about 10%.
Lisa Smith: And we are now we are continuing our efforts with a fixed salesforce to maintain our test volume in that approximate range and drive revenue growth through realization of revenue with our.
Lishan Aklog: Reimbursement Strategies and our Revenue Cycle Manager. Two highlights that we discussed yesterday. We're making great progress with our CYFT events. We have 32 events, and we now have a centralized telehealth operation.
Reimbursement strategies: Reimbursement strategies in our revenue cycle management.
Lisa Smith: A few highlights that we discussed yesterday.
Speaker Change: We're making great progress with our <unk> events at 32 events and we have now have a centralized telehealth operation we have a very robust pipeline of direct contract engagements with various entities with whom we can contract directly and are looking forward to.
Lishan Aklog: We have a very robust pipeline of direct contract engagements with various entities with whom we can contract directly and are looking forward to executing on those contracts in the coming quarters. Our revenue cycle management process and infrastructure continue to improve. Dennis will talk about the numbers later.
Dennis M. McGrath: Executing on those contracts in the coming quarters, our revenue cycle management process and infrastructure continues to improve Dennis will talk about the about the numbers later, but.
Lishan Aklog: But a variety of improvements, including proceeding with some prior authorization infrastructure on appeals, physician advocacy, and so forth. And we're happy that the ATA network allowed amounts continue to average a robust $1,800. As we mentioned yesterday, strengthening our balance sheet, and completing just under $30 million of our Series B preferred offering. Two really important highlights from this past quarter include the peer-reviewed publication of positive data from the landmark National Cancer Institute-sponsored Clinical Validation Study, or the BetterNet Study, of Issa Gardner.
Dennis: A variety of improvements, including proceeding with some prior authorization infrastructure on appeals physician advocacy and so forth and we're happy that the out of network allowed amounts.
Dennis: I continue to average a robust $1800 Matthew mentioned yesterday, we strengthened our balance sheet, completing just under $30 million of our series B preferred offering two really important highlights from this past quarter.
Dennis: For the peer reviewed publication of positive data from the landmark National Cancer Institute sponsored clinical validation study or is it better in that study with regard.
Matthew: And the data is really shows unprecedented results of the early pre cancer detection.
Lishan Aklog: And the data really shows unprecedented results in early pre-cancer detection. Based on the fact that we believe we now have sufficient data to move forward, we secured a July 17th meeting with the MOLDI-X group to review our data for a future submission of a technical assessment to seek coverage for eSIGARD under its foundation. On the market access side, there's a lot of activity across the board, both with regional plans and national plans, but a big area of focus right now is to secure coverage, particularly from regional plans, in biomarker legislation states, and that's giving us good leverage to do so. Let's now move on to Verisk.
Matthew: Based on the fact that we believe we now have sufficient data to move forward. We secured a July 17th meeting with the <unk> group.
Speaker Change: I'll review, our data for future a submission of a technical assessment.
LCB: Seek coverage for east regard under its foundational LCB.
Theres: On the market access side Theres, a lot of activity across the board.
Speaker Change: Both with regional plans and national plans, but a big area of focus right now is to secure coverage, particularly from regional plans in biomarker legislation states and thats, giving us good leverage to do so.
Theres: Let's now move on to virus and for those of you who are not familiar with the various storage various health.
Lishan Aklog: For those of you who are not familiar with the Verisk story, Verisk Health, a PAVmed subsidiary, is a commercial-stage digital health company that seeks to enhance personalized cancer care through digital tools, including the Verisk cancer care platform, which has a smart front-end app for a cancer patient as well as a platform for clinicians through which physiologic parameters are measured and sent to physicians to enhance their care. We also have an implantable monitor that's under development that will provide ongoing physiologic data without the need for patient input.
Padma subsidiary: Padma subsidiary as a commercial stage digital health company, which seeks to enhance personalized cancer care through digital tools, including a.
Padma subsidiary: Cancer care platform, which has a smartphone to that for a cancer patient as well as a platform for the clinicians through which.
Padma subsidiary: Isaac parameters are measured and sent to the physicians to enhance their care.
Padma subsidiary: We also have an implantable monitors thats under development that will provide ongoing physiologic data.
Speaker Change: Without the need for patient and what the overall mission is to utilize these modern remote patient monitoring tools to improve care through early detection of complications longitudinal trends and risk management.
Lishan Aklog: The overall mission is to utilize these modern, remote patient monitoring tools to improve care through early detection of complications, longitudinal trends, and risk management. As I previously noted, we updated our strategy for VAERS to shift from cancer practices to large cancer centers, including academic cancer centers, and we're really excited that we've had our first memorandum of understanding signed with the Ohio State University Comprehensive Cancer Center at James Haas. This is an NCI-designated comprehensive cancer center.
Isaac: As I previously noted we updated our strategy for various to shift from cancer practices to large cancer centers, including academic cancer centers and we're really excited that we've had our first memorandum of understanding signed with the highest state University comprehensive cancer Center at the James Hospital.
Lishan Aklog: It's the third-largest cancer hospital in the nation. They have over 10,000 patients per year who receive infusion therapy, which is the primary target for us, and we're looking forward to launching a pilot of the VAERS Cancer Care Platform in approximately 100 patients. We expect this to launch in May. We're actively raising capital triggered by the announcement of this engagement and look forward to consummating that soon. We also remain engaged with numerous other strategic institutions, and numerous other centers like the James.
Speaker Change: Yes. This is an NCI designated comprehensive cancer center to third largest cancer hospital in the nation to have over 10000 patients per year, who receive infusion therapy in which the primary target for us and we're looking forward to launching <unk>.
Speaker Change: Highlights of the various cancer care platform and approximately 100 patients.
Speaker Change: We expect this to launch imminently.
Speaker Change: We're actively raising capital triggered by the announcement of this engagement and look for look forward to consummating that soon.
James Hospital: Also remain engaged with numerous numerous other strategic institutions numerous other centers like the James These are centers that have large SaaS large number of patients on infusion therapy are typically concentrated in metropolitan areas.
Lishan Aklog: These are centers that have large staffs, and a large number of patients on infusion therapy are typically concentrated in metropolitan areas. We focus on those that are also NCI designated as comprehensive cancer centers, and many of these have venture arms, as does the Ohio State University James. To mention the key part of our long-term vision with VERUS is an implantable monitor that's intended to be implanted at the time of the vascular access port, which provides continuous cardiac monitoring and also the relaying of additional data through Bluetooth connectivity to the platform. And we have made excellent progress on this.
James: On those that are also NCI designated comprehensive cancer centers.
Speaker Change: Many of these have venture arms.
Speaker Change: The highest state University James.
I mentioned: As I mentioned, a key part of our long term vision with various is too.
I mentioned: Implantable monitor.
University James: It is intended to be implanted the time at the vascular access part which provides continuous cardiac monitoring it also.
unknown: Relaying of additional data through Bluetooth connectivity to the platform.
James: We have made excellent progress on this we have a clear path to FDA clearance and commercial launch and we will proceed with that development and process towards FDA submission and once we secure independent financing.
Lishan Aklog: We have a clear path to FDA clearance and commercial launch, and we will proceed with that development and process toward FDA submission once we secure independent financing. The implantable monitor is important for the long-term value of the platform because it assures 100% patient compliance with the RPM billing requirements. Finally, let's discuss the PMX Incubator, which we announced last quarter. PMX is an incubator that was created in partnership with our colleagues at Hatch Medical, and the idea here is to take individual products that we had previously put on pause in 2023 and bring them into individual subsidiaries and raise individual capital for them to advance them to commercialization.
Speaker Change: Eight of our monitor is important for the long term.
Speaker Change: The value of the platform because of assures a 100%, 100% patient compliance with the RPM billing requirements.
Speaker Change: Finally.
Pemex incubator: Let's discuss the Pemex incubator, which we announced last quarter.
Pemex incubator: <unk> is a.
Hach Medical: As an innovator that was created in partnership with our colleagues at Hach medical and the idea here is to take individual products that we had previously put on pause in 2023.
Hach Medical: Bring them into individual subsidiaries and raised an individual capital for them to advance them to commercialization. Our first target is an important io.
Lishan Aklog: Our first target is PortIO, and we've established a separate corporate entity as a subsidiary of the incubator, PortIO Corp., that is now actively raising capital to advance its project. Those of you who've been with PAVmed for a while know PortIO, but let me give you a deeper introduction for those of you who don't. PortIO is the first implantable intraosseous, which means into the bone marrow, vascular access device that's designed for long-term use, provides direct long-term access to the bone marrow, and it's analogous to long-term implantable vascular access ports, as you can see on the bottom right here, typical ports that patients with chemotherapy use.
Hach Medical: And we've established a separate corporate entity as a subsidiary of the incubator for Ya Corp that is now actively raising capital to advance this project.
Ya Corp: Those of you who've been with patent for a while I know part of it but let me give you a <unk>.
Ya Corp: Deeper introduction for those of you who don't.
Lishan Aklog: The key feature, because it is inserted into the bone marrow, is that it's maintenance-free, and therefore it has no costly or labor-intensive flushing requirements, as do every other long-term vascular access port. We expect it will have reduced complications, including reduced infection rates relative to traditional genital access. And this addresses a very large unmet clinical need, you know, and a large diverse target population, particularly those who have patients who have poor veins and those in renal failure in whom their veins need to be preserved for future dialysis acts.
Ya Corp: <unk> is the first implantable interosseous, which moves into the bone marrow of vascular access devices designed for long term use provides direct long term access to the bone marrow and it's analogous to long term implantable vascular access ports as you can see on the bottom right. There the typical parts that patients with chemotherapy would get the key.
unknown: Feature because it is inserted into the bone marrow is that it's maintenance free and therefore it has no cost for your labor intensive flashing requirements as do every other long term vascular access port.
Speaker Change: We expect it will have reduced complications, including reduced infection rates are relative to traditional venous access and this addresses a very large unmet clinical need.
Speaker Change: A large diverse target population, particularly those who have patients who have poor veins and those in green renal failure, whom their veins that need to be preserved for future dialysis access.
Speaker Change: We expect across the spectrum of these.
Lishan Aklog: We expect across the spectrum of the target population that the total addressable market is upwards of $3 billion. We have robust IP protection. Prior to putting the project on pause, we had completed our first in-human study in Colombia, South America, and had excellent results with no complications and excellent function of the implantable port. We have a clear path to FDA approval. We've had a long engagement with them through the de novo pathway following the completion of an IDE study.
Speaker Change: Population that the total addressable market is upwards of $3 billion, we have robust alright, P protection and prior to putting the project on pause we have completed our first in human study.
Speaker Change: In Colombia, South America had excellent results with no complications and excellent function of the implantable ports, we have a clear path to FDA, we've had a long engagement with them through the de Novo pathway that following the completion of the IV study.
Lishan Aklog: That study would begin upon submission of a final protocol to FDA once we have secured the financing to do so. The target margin for this technology is at least 85%, and we expect it to be reimbursed under existing codes for insertion of aspirin. With that, I'll pass the baton on to Dennis to give us a financial update.
Speaker Change: That study will begin upon submission of our final protocol to FDA once we have.
Speaker Change: Secured the finance financing to do so.
Speaker Change: The target margins for this technology is at least 85% and we expect it to be reimbursed under existing codes for insertion of vascular access devices.
Dennis: With that I'll pass the baton onto Dennis to give us a financial update.
Dennis: Thanks, Felicia and good morning, everyone. Our summary financial results for the first quarter were reported in our press release that was published last night.
Dennis M. McGrath: Thanks, Lishan, and good morning, everyone. The summary Financial Results for the first quarter were reported in our press release that was published last night. On the next three slides, I'll emphasize a few key highlights from the quarter, but I encourage you to consider those remarks in the context of the full disclosures covered in our quarterly report on Form 10-Q, with regard to the balance sheet. Cash at quarter end March 31st was $25.5 million.
Dennis: On the next three slides I'll emphasize a few key highlights from the quarter, but I encourage you to consider those remarks in the context of a full disclosures covered in our quarterly report on Form 10-Q.
Speaker Change: With regard to the balance sheet.
Dennis M. McGrath: We added $11.6 million to that amount with the lucid financing completed last week, for Pro Forma cash of $37.1 million. The average quarterly burn rate for the trailing four quarters is $11.7 million per quarter. We disclose in the 10-Q that our ability to fund operations beyond one year from today is largely dependent upon how revenues ramp over the next four quarters, which is dependent upon how the reimbursement landscape for both government and private health insurers continues to improve for use of GART. Additionally, our direct contracting efforts with self-insured employers and or corporate finance activities, including refinancing any outstanding debt at the time, can also work to exceed that threshold.
Speaker Change: Cash at quarter end March 31.
Speaker Change: Was $25 $5 million, we added $11 6 million to that amount with the lucid financing completed last week for.
Speaker Change: Our pro forma cash of $37 1 million.
Speaker Change: The average quarterly burn rate for the trailing four quarters.
Speaker Change: Is $11 $7 million per quarter.
Speaker Change: We disclose in the 10-Q.
Speaker Change: But our ability to fund operations beyond one year from today is largely dependent upon how revenues ramp over the next four quarters.
Speaker Change: Which is dependent upon how the reimbursement landscape for both government and private health insurers continues to improve for his regard.
Speaker Change: Additionally, our direct contracting efforts with self insured employers <unk> corporate finance activities, including.
Speaker Change: Refinancing any outstanding debt at the time can also work to exceed that threshold.
Dennis M. McGrath: Furthermore, as we advance the initiatives, both with PMX Incubator and Veris Health, particularly in connection with the Ohio State University Cancer Care Center, any direct financing into either of these subsidiaries will further satisfy that pressure. The change in other assets is largely related to the normal amortization of certain tangibles, the prepaid insurance, and the application of advanced vendor deposits to the current period incurred expenses. Convertible Jet.
Pemex incubator: Furthermore, as we advance the initiatives both with Pemex incubator in various health, particularly in connection with the highest state University cancer care center any direct financing into either of the subsidiaries will further satisfy that threshold.
Pemex incubator: The change in other assets is largely related to the normal amortization of certain intangibles, the prepaid insurance the application of advanced vendor deposits to the current period incurred expenses.
Pemex incubator: Convertible debt.
Speaker Change: The convertible note the balance reflects $37 3 million in face value principle.
Dennis M. McGrath: The convertible note, the balance reflects $37.3 million in face value principal, plus $8.2 million in Fair Value Accounting Convention, a non-cash amount. The Phase Value Principle is split between PAVMed and LUCID at approximately $26.4 million and $10.9 million, respectively. During the first quarter, the base value principal was reduced by about $400,000, inclusive of the issuance of approximately $113,000 in PAVmed common shares. Subsequent to quarter end, an additional $280,000 of face value principal was paid, inclusive of an additional $113,000 in PAVmed common shares.
Speaker Change: Plus $8 2 million in fair value accounting convention, a noncash amount.
Lucid Port: The face value principle is split between <unk> and lucid at approximately $26 4 million and $10 9 million respectively.
Lucid Port: During the first quarter base value principal was reduced by about $400000 inclusive of the issuance of approximately 113000 <unk> common shares.
Lucid Port: Subsequent to quarter end, an additional $280000 of face value principle was paid inclusive of an additional 113000 patents common shares.
Speaker Change: Other long term liabilities are from capitalized leases related to our lab and office spaces.
Dennis M. McGrath: Other long-term liabilities are from capitalized leases related to our lab and office. Shares outstanding, including unvested RSAs as of last week, are 9.4 million. The GAAP outstanding shares of $8.9 million are reflected on the slide as well as the face of the balance sheet in the 10-Q. Gap shares; they do not reflect.
Speaker Change: Shares outstanding, including Unvested Rsa's as of last week.
Speaker Change: $9 4 million.
Speaker Change: The GAAP outstanding shares of $8 9 million are reflected on the slide as well as the face of the balance sheet in the 10-Q gap.
Speaker Change: <unk> shares do not reflect.
Speaker Change: Unvested RSA amounts.
Speaker Change: With regard to the P&L.
Dennis M. McGrath: With regard to the P&L. This slide compares this year's first quarter to last year's first quarter in certain key items. I trust you will review the information, my comments, and later the question or disclosure at the bottom of the slide about supplemental information, particularly non-GAAP information.
Speaker Change: This slide compares this year's first quarter to last year's first quarter and certain key items.
Rusty Who: Rusty Who'll review the information my comments in light of the cautionary disclosure of the bottom of slide about supplemental information, particularly non-GAAP information.
Dennis M. McGrath: Revenue for the first quarter largely reflects lucid actual cash collections for the quarter for insurance reimbursable claims, plus invoiced e-cigarette tests to the VA, and about $25,000 in direct contracting, plus invoiced amounts, about $9,000 for the various cancer care plans. As detailed in our LUCID quarterly call yesterday, recognized LUCID revenue, just over a million dollars, is sequentially about even with the fourth quarter. It reflects more than a two-fold increase over the prior year, first quarter, and is in line with what was previously previous. Test volume at 2,420 tests for the quarter represents just over $6 million in submitted claims for the first quarter at our $2,499 ASG. Lucid Revenue Recognition. A key determinant is the probability of collection.
Rusty: Revenue for the first quarter largely reflects lucid actual cash collections for the quarter for insurance Reimbursable claims plus invoiced <unk> tests to the VA and about $25000 in direct contracting plus invoiced amounts about $9000 for the various cancer care platform.
Rusty: As detailed in our lucid quarterly call yesterday recognized lucid revenue just over $1 billion is sequentially about even with the fourth quarter.
Flex: Flex more than at two fold increase over the prior year first quarter and is in line with what was previously previewed.
Rusty Who: Test volume at 2420 tests for the quarter represent just over $6 million in submitted claims for the first quarter at our $2499 ASP.
Rusty Who: Lucid revenue recognition.
Rusty Who: The key determinant is the probability of collection therefore due to the fact that we're in the early stages of the reimbursement process.
Dennis M. McGrath: Therefore, due to the fact that we're in the early stages of the reimbursement process, revenue recognition for claims submitted to traditional government or private health insurers will be recognized when the claim is actually collected versus when the patient report is invoiced and submitted for reimbursement. As you'll see in our 10-Q, this is called variable consideration, the jargon of GAAP's ASC-606 revenue recognition guidelines. And presently, there is insufficient predictive data to reflect revenue when the test report is delivered to the referring physician.
Lucid Port: It means revenue recognition for claims submitted to traditional government or private health insurers will be recognized when the claim is actually collected versus when the patient report is invoicing submitted for reimbursement.
Speaker Change: As Youll see in our 10-Q. This is called variable consideration that jargon of gaps ASC 606 revenue recognition guidelines and presently there is insufficient predictive data to reflect revenue when the test report is delivered to the referring physicians that will occur in time.
Dennis M. McGrath: That will occur in... For billable amounts contracted directly with employers that are fixed and determinable will be recognized as revenue when the contracted service is delivered. Generally, that means when the report is delivered to the employer.
Speaker Change: For billable announced contracted directly with employers that are fixed and determinable will be recognized as revenue when the contracted services deliver generally that means when the report is delivered to the referring physician.
Rusty Who: Our non-GAAP loss for the first quarter of $8 6 million.
Dennis M. McGrath: Our non-GAAP loss for the first quarter of $8.6 million reflects about a $2 million sequential improvement compared to the fourth quarter loss and about a two and a half million dollar improvement year over year from prior years. With regard to the non-GAAP operating expenses on this slide, you'll see a graphic illustration of our operating expenses over time as presented and in detail in our press release. Total non-GAAP operating expense was $12.6 million for the first quarter of 2024 and reflected a $2.2 million improvement sequentially and $2.4 million improvement year over year.
Speaker Change: It reflects about a $2 million sequential improvement compared to the fourth quarter loss.
Speaker Change: And about a $2 $5 million improvement year over year from the prior year quarter.
Rusty Who: With regards to the non-GAAP operating expenses on this slide Youll see a graphic illustration of our operating expenses over time as presented in detail in our press release.
Rusty Who: Total non-GAAP operating expense is $12 6 million for the first quarter of 2024 and reflects a $2 $2 million improvement sequentially and $2 $4 million improvement year over year.
Speaker Change: Clinical research costs are the primary driver for the first quarter reduction amounting to approximately $1 7 million of the reduced spend since the fourth quarter.
Dennis M. McGrath: Clinical research costs were the primary driver for the first quarter reduction, amounting to approximately $1.7 million of the reduced spend since the fourth quarter. The non-GAAP loss per share for the first quarter was $0.99 per share, on a GAAP EPS basis. Non-cash charges accounted for approximately $1.63 per share in the first quarter, of which $0.86 was directly related to the non-cash steam dividend connected to the March financing of $18.2 million, and $0.52 per share was related to the convertible debt choice.
Speaker Change: The non-GAAP loss per share for the first quarter was <unk> 99 per share.
Speaker Change: On a GAAP EPS basis.
Speaker Change: Noncash charges accounted for approximately $1 63 per share in the first quarter of which 86 cents.
Speaker Change: Was directly related to the noncash deemed dividend connected to the March financing of $18 $2 million at.
Speaker Change: <unk> 52 per share was related to the convertible debt charges.
Lucid Port: Also worthy of repeating or some reimbursement status as mentioned on the lucid call yesterday.
Dennis M. McGrath: Also worthy of repeating are some reimbursement stats as mentioned on the lucid call yesterday, focusing the reimbursement stats for the last two quarters, the first quarter and the fourth quarter of last year. 3,975 claims, just under 4,000 claims, representing just under $10 million in pro forma revenue, have been submitted for reimbursement. About 75% have been adjudicated, and twenty-five percent are pending. Out of the 75% that have been adjudicated, about 46%, just about half, resulted in an allowable amount by the insurance company with a mean average of about $1,700 per test and, with a longer aging time, the six month horizon with appeals, approximately $1,800. Of those denied, about 53% are deemed not medically necessary or require prior authorization. About 28% of them were deemed to be non-competitive.
Lucid Port: Focusing the reimbursement status for the last two quarters, the first quarter and the fourth quarter of last year.
Lucid Port: 3975, please just under 4000 claims representing just under $10 million in pro forma revenue have been submitted for reimbursement.
Speaker Change: About 75% have been adjudicated.
Speaker Change: 25% of pending.
Speaker Change: Out of the 75% that had been adjudicated about 46% just about half resulted in a allowable amount by the insurance company with a mean average of about $7500 per test and with a longer aging time, the six months horizon with appeals approximately $800 per test.
Speaker Change: Of those denied about 53%.
Speaker Change: Our deemed not medically necessary or require a prior authorization.
Speaker Change: About 28% were deemed to be non covered.
Operator: So with that operator, let's open it up for questions.
Operator: So with that, Operator, let's open it up.
Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer the question could you have a question. Please press star followed by number one on your Touchtone phone, you'll hear a problem that you had just been raised should you wish to decline from the polling process. Please press star followed by number two.
Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by number two. If you are using a speakerphone, please leave the handset before pressing any keys.
Keith: You're using a speaker phone. Please keep your handset before pressing any Keith one moment. Please for your first question.
Keith: Your first question comes from the line of Anthony Vendetti from Maxim Group. Your line is now open. Please ask your question.
Anthony V. Vendetti: One moment, please, for your first question. Your first question comes from the line of Anthony Vendetti from Maxim Group. Your line is now open. Please ask your question.
Dennis M. McGrath: Good morning, Anthony.
Anthony V. Vendetti: Good morning, Anthony Hi, Anthony Good morning, Kevin Good morning, Alicia.
Lishan Aklog: Good morning, Dennis. Yeah, just on the memorandum of understanding with Ohio State. What are the milestones or expectations for that to go to some type of definitive agreement, and then how many others like it do you have in the pipeline at this point? Thank you. Yeah, great question. So, let me just backtrack a little bit chronologically.
Anthony V. Vendetti: Yes.
Anthony V. Vendetti: On the memorandum of understanding which Ohio state.
Anthony V. Vendetti: What are the milestones or expectations for that to go to.
Anthony V. Vendetti: Some type of a definitive agreement and then how many.
Kevin: How many others like Ohio State do you have in the pipeline.
Anthony V. Vendetti: At this point thank you.
Speaker Change: Great question so.
Matt Reilly: Let me just backtrack a little bit chronologically so we've had.
Lishan Aklog: So we've had really fruitful discussions with the full team at Ohio State. There is a real strong shared vision for the role of digital health tools in Advancing Cancer Care that goes frankly beyond the initial efforts within remote patient monitoring. Lots of discussions around long-term goals and opportunities to collaborate beyond this. The Memorandum of Understanding focuses on a pilot study that we expect to launch in the coming weeks, and it will involve up to 100 patients.
Speaker Change: Really fruitful.
Speaker Change: Discussions with the full team at Ohio State There is a real strong shared vision for the role of digital health tools and.
Lishan Aklog: within the medical center. And the goals for the pilot are to really demonstrate feasibility, to demonstrate the key elements of this platform, which is getting patients on the platform, getting them connected to the monitoring tools through Bluetooth, making sure that the data is making it to physicians and other caretakers, and it's able to provide information to impact cancer care. We look forward, following that, to, upon completion of an RFP that's currently active, to hopefully expand that beyond full engagement on the commercial side.
Speaker Change: Advancing cancer care that go frankly beyond the initial efforts within remote patient monitoring lots of discussions around long term goals and opportunities to collaborate.
Anthony V. Vendetti: Beyond this we are going to stick.
Anthony V. Vendetti: Memorandum of understanding focuses on a pilot study that we expect to launch in the coming weeks.
Lishan Aklog: And it will evolve.
Lishan Aklog: Up to a 100 patients.
Anthony V. Vendetti: In two minutes within the.
Speaker Change: Within the medical center and the goal is really for the pilot or.
Speaker Change: To really demonstrate feasibility to demonstrate.
Speaker Change: The key elements of this platform, which is getting patients on the platform getting them connected.
Speaker Change: To the.
Speaker Change: Monitoring tools.
Lishan Aklog: Through Bluetooth, making sure that the data is making it to the physicians and the other caretakers.
Lishan Aklog: And it's able to provide the.
unknown: Information two impact cancer care.
Speaker Change: Look forward following that.
Speaker Change: Two upon completion of our RFP that's currently.
Speaker Change: Active to hopefully expand that beyond into <unk>.
Speaker Change: Onto the full engagement on the commercial on the commercial side.
Lishan Aklog: So the answer is really that the pilot is intended to just demonstrate feasibility, and our goal is to... advance the partnership to cover an increasing number of patients within the platform and then ultimately to work collaboratively on innovation in this space, which again was really the centerpiece of our conversations with them and our effort to engage them. We have about half a dozen other large centers that we have active conversations with, several of whom are advancing to more fulsome conversations. We, I think, as we described, you know, we're working, we're operating under a strategy where Veris is raising capital in order to expand its efforts beyond the initial sites, and so we expect to advance these individual centers after demonstrating feasibility here and being able to raise capital in order to advance beyond that. Okay.
RFP speaker: So the answer is really.
Speaker Change: The pilot is intended to just demonstrate feasibility, but our goal is to.
Veris: Mr Advanced the partnership to cover an increasing number of patients within the platform and then ultimately to work collaboratively on the innovation in this space, which again is something that is really the centerpiece of our of our conversations with them in an effort to engage.
Mr Advanced: About a half a dozen other large centers that we have active conversations with several of whom are.
Lishan Aklog: Advancing too.
Lishan Aklog: More fulsome conversations.
Veris: I think as we described we are working or operating them under a strategy where various.
Speaker Change #102: Raised the capital in order to expand its efforts beyond.
Yes.
Lishan Aklog: The initial sites and so.
Speaker Change: We expect to advance these individual centers.
Dennis M. McGrath: Sensors after demonstrating feasibility here and being able to raise capital in order to advance advance beyond that.
Lishan Aklog: Okay. Thanks, Thanks, a lot I will I appreciate the color I'll hop back in the queue. Thank you.
Anthony V. Vendetti: Okay, thanks. Thanks a lot. I will appreciate the call. I'll hop back in the queue. Thank you.
Anthony: Thanks Anthony.
Anthony V. Vendetti: Your next question comes from the line of Frank Bachman from Lake Street Capital Markets. Your line is now open. Please ask your question.
Frank James Takkinen: Your next question comes from the line of Frank Takkinen from Lake Street Capital Markets. Your line is now open. Please ask your question.
Frank James Takkinen: Frankly, great. Thanks for taking my question good morning, good morning.
Frank James Takkinen: Frank, good morning. Just one more follow-up on the Ohio State MOU. Maybe walk us through what the total revenue opportunity looks like. I understand you're going into a pilot, but how large is their cancer center? And if you were to be successful in that pilot and roll it out across that entire network through Ohio State, what kind of revenue opportunity could that look like? And then, as a second part to that question, how should we think about how many players are out there similar to Ohio State that you could partner with? Yeah,
Frank James Takkinen: Just one more follow up on the Ohio State Mou, maybe walk us through what the total revenue opportunity looks like I understand youre going into a pilot, but all large as their cancer Center and if you were to be successful in that pilot and roll it out.
Frank James Takkinen: Across that entire network through Ohio State, what kind of revenue opportunity could that look like and then as a second part to that question. How should we think about how many players are out there similar to Ohio State that you could partner with.
Lishan Aklog: Yeah, I'll answer that at a high level. Let me sort of start from the latter and maybe work more specifically.
Frank James Takkinen: Yes, I can answer that.
Lishan Aklog: At a high level, let me sort of start from the latter and maybe work more specifically so.
Lishan Aklog: So a significant portion of cancer care, particularly the kinds of patients who we're targeting with the various cancer care platforms, which are those that are, you know, diagnosed with and are entering what's called systemic therapy, which usually means infusion therapy. We do have the vision to go beyond that, but that's the initial target. So a reasonable portion of those patients across the country are cared for at large comprehensive cancer centers, such as Ohio State and the Ohio State James Hospital.
Lishan Aklog: A significant portion of cancer care, particularly the kinds of patients who were.
Speaker Change: So were targeting but the various cancer care platform, which are those that are.
Speaker Change: Diagnosed with and are entering whats called systemic therapy, which usually means infusion therapy, we do have.
Speaker Change: Our vision to go beyond that but that's the initial target so a reasonable portion of those.
Speaker Change: <unk> across the country are cared for at large.
Speaker Change: At large comprehensive cancer centers like such as our as Ohio State of Ohio State James.
Lishan Aklog: Hospital.
Lishan Aklog: They, as I mentioned, have 10,000 patients who are in infusion therapy. And so when this hopefully transitions from this pilot program into a full program, we'll have the opportunity to expand the engagement to include an increasing proportion of those patients. Stepping back, as we've talked before, and not specific to Ohio State, but with regard to the platform as it's designed now, we have... The remote patient monitoring billing opportunities for an individual center are such that our recurring revenue service model that we provide provides an opportunity of approximately $1,000 to $1,200 per patient per year. So I think I'll leave it at that high level for now, Frank.
Speaker Change: They as I mentioned, they have 10000 patients who are in infusion.
Lishan Aklog: Therapy and.
Lishan Aklog: So.
Frank: When this hopefully transitions from this pilot program into a full program will have the opportunity to expand the engagement to include.
Frank: <unk> proportion of those patients stepping back as we've talked before and not specific to our has stayed.
Lishan Aklog: With regard to the platform as it does right now we have.
Frank: The remote patient monitoring billing opportunities for an individual center.
Frank: Are such that our recurring revenue.
Frank: Service model that we provide provides an opportunity with approximately 1000 <unk> hundred dollars per patient per year.
Lishan Aklog: And.
Lishan Aklog: So I think I'll leave it at that means I think I'll leave it at that high level for Frank.
Frank: It's the revenue opportunity is substantial.
Lishan Aklog: The revenue opportunity is substantial. These large centers are why we transitioned from smaller practices to large centers because, frankly, it's a more efficient engagement. It's got a bit of additional lead time and additional work to get there, but the strategic opportunities, as well as the size of these centers in terms of the number of patients and the subsequent revenue opportunities, are substantially greater, and we're really happy with that transition, and we look forward to completing this pilot and transitioning to a commercial relationship that can yield substantially more patients on the platform and ultimately increase revenue opportunities.
Lishan Aklog: Got it. And then, the second half of that, how should we think about the opportunities for players like this? Or maybe more specifically, how should we think about your current funnel of opportunities like this?
Speaker Change: These large centers and this is this is why we transitioned from.
Lishan Aklog: Smaller practices.
Speaker Change: Two large centers because frankly, it's a more efficient engagement has got a bit of additional lead time and additional work to get there but.
Lishan Aklog: The strategic opportunities as well as the size of the of these.
Lishan Aklog: These centers in terms of the number of patients in the subsequent revenue opportunity are substantially greater and we're really happy with that transition and look forward to.
Lishan Aklog: Completing this pilot.
Lishan Aklog: Transitioning to a commercial relationship that Kevin.
Lishan Aklog: That could yield substantially more patients on the platform and ultimately.
Lishan Aklog: This increase in revenue opportunities.
Lishan Aklog: Got it and then the second half of that how should we think about the opportunity of players like this or maybe more specifically how should we think about your current funnel of opportunities like this.
Lishan Aklog: Yeah, so as I said, we have... several dozen on our target list. We have approximately five that we have engagements with, of which Ohio State is one of the largest. It's the third largest in the country. And, you know, the pace at which we're not really in a position yet to say what the pace will be in terms of signing these up. A lot of it will depend on the success of this pilot, as well as our ability to raise sufficient capital to expand our commercial activity to multiple sites concurrently.
Lishan Aklog: Yes, so as I said, we have.
Lishan Aklog: Several dozen actually on our target list, we have approximately five that we have engagements with a which Ohio state is one of the largest.
Lishan Aklog: Perfect, and then just last one for me. I think you referenced it briefly in their prepared comments. A lot of these centers have venture arms. How could some sort of strategic investment from them be structured and look like?
Lishan Aklog: The third largest in the country.
Lishan Aklog: And.
Lishan Aklog: The pace at which we're not building.
Speaker Change: <unk> yet to say if you say what the pace will be in terms of signing these up a lot of it will depend on the success of this pilot as well as our ability to raise sufficient capital to expand our commercial activity too.
Lishan Aklog: To multiple sites.
Lishan Aklog: Currently.
Lishan Aklog: Yeah.
Lishan Aklog: Perfect and then just last one for me I think you referenced it briefly in your prepared comments a lot of these.
Lishan Aklog: Centers have venture arms, how could some sort of strategic investment from them be structured and look like.
Lishan Aklog: Yes, you know we've had.
Lishan Aklog: Yeah, you know, we've had prior engagements beyond VERUS with academic centers, and you're right to highlight the fact that many, many large academic centers, not just in the cancer sector, have venture arms and have an interest in engaging in investment opportunities alongside strategic collaborations, right? Especially since this is one of the great parts of transitioning our strategy to larger academic centers is that there's a greater opportunity for these kinds of strategic collaboration, which include opportunities to develop new products or new care platforms that have licensing opportunities and so forth.
Lishan Aklog: Prior engagements beyond <unk>.
Speaker Change: With academic centers and Youre right to highlight the fact that many.
Speaker Change: Many large academic centers not just in the cancer sector have venture arms and.
Lishan Aklog: Interest in engaging in.
Speaker Change: Investment opportunities alongside the strategic collaborations right, especially since.
Lishan Aklog: This is one of the one of the great parts of transitioning our strategy to larger academic centers is that there's a greater opportunity for these kinds of strategic collaborations which include opportunities to develop actually new products or new <unk> care platform licensing opportunities and so forth. So that does provide initiative and initiative.
Lishan Aklog: So that does provide an initiative to partner not simply on the clinical side but also on the venture side. Each institution has different structures and strategies for their investment, but I think, generically, they share a common theme, which is to simply invest in the entity through these arms as sort of a measure of, sort of a vote of confidence in the commercial potential of the partner, as well as the partnership. And so they all vary, but at the end of the day, they're just simple investments, venture investments typically into the company. And we certainly are seeking those with the partner we are targeting. Perfect.
Lishan Aklog: Partner not simply on the clinical side, but also.
Lishan Aklog: On the on the venture side at each institution has different structures and strategies for their investments, but I think generically there.
Lishan Aklog: They share a common theme, which is to simply invest in.
Lishan Aklog: The entity.
Lishan Aklog: Through these arms.
Lishan Aklog: Sort of a measure of sort of a vote of confidence in the commercial.
Lishan Aklog: Potential.
Lishan Aklog: Of the.
Lishan Aklog: So the partner as well as the partnership.
Lishan Aklog: So they all vary but at the end of the day. They are just simply investments.
Lishan Aklog: Venture investments typically into the company and we certainly are seeking those with the partners that we are.
Lishan Aklog: Targeting here.
Lishan Aklog: Perfect. Good color, thanks for all that and congrats on the progress.
Frank James Takkinen: Perfect. Good color. Thanks for all that, and congrats on the progress. Thanks, Frank.
Speaker Change: Great. Thanks for thanks, Frank.
Speaker Change: Once again, ladies and gentlemen, if you want to ask a question. Please press star followed by number one on your Touchtone phone. He will have a problem that you had this been raced should you wish to decline from the polling process. Please press star followed by number two.
Operator: Once again, ladies and gentlemen, if you want to ask a question, please press star followed by number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by number two. If you are using a speakerphone, please leave the handset before pressing any keys.
Speaker Change: You're using a speaker phone. Please keep your handset before pressing any keys one moment. Please for your next question.
Operator: One moment, please, for your next question. Your next question comes from the line of Edward Woo from Ascension Capital. Your line is now open; please ask your question.
Operator: Your next question comes from the line of.
Speaker Change: From S N. Gen capital. Your line is now open please ask your question.
Edward Moon Woo: Congratulations on all the progress. My question is about Port IO and the PMX Incubate Care Initiatives. Can you talk about the fundraising environment? How difficult is it or how easy is it to raise money? And also, is there a strategy to focus on Port IO versus ESO Care and CARB-X at the same time or to do it kind of in a linear process?
Edward Moon Woo: Good morning, guys. Congratulations on all the progress my question is on Port IL in the PM incubation initiatives can you talk about the fundraising environment, how difficult is it or how easy it is.
Edward Moon Woo: To raise money and also is there a strategy to focus on I O.
Edward Moon Woo: Versus <unk> and <unk> at the same time or to do it kind of on a linear process.
Lishan Aklog: Yeah, so, um... It's interesting. It's always, you know, raising capital is never easy, but what's interesting in our engagement with Hatch is that they have a somewhat different universe based on their 30 years of experience engaging with pockets of investors, particularly on the angel side, that are anxious to invest in assets like this, you know, at the bite size, at the investment size that we need to advance these products, which is not all that great.
Speaker Change: Yeah. So.
Lishan Aklog: In Pennsylvania, it's always.
Lishan Aklog: Raising capital is never easy, but these are what's interesting in our engagement with hedges that they have somewhat different universe.
Lishan Aklog: Based on there are 30 years of experience of engaging with pockets of investors, particularly on the haynesville side that are anxious to invest.
Lishan Aklog: Invest in assets like this.
Lishan Aklog: At.
Lishan Aklog: The bite size the investment size that we need to advance these products, which is not all that great.
Lishan Aklog: So we're very active, and the process is off to a great start, and we really are quite optimistic that we'll be able to raise the capital individually for PortIO through the partnership with the folks at Hatch who have great experience in doing so. So that's promising, and we look forward to consummating that and getting started. As it relates to the other products that we've put into the incubator, E-Secure and Carpex, and potentially others, what we're pursuing is raising capital one at a time, but certainly not waiting to complete the project or advance into commercialization one at a time.
Lishan Aklog: So.
Lishan Aklog: We were very active in the process is off to a great start and we really are actually quite optimistic that we'll be able to raise the capital individually into into port through the partnership with the folks at Hach, who have.
Speaker Change: Okay, great experience in doing so.
Lishan Aklog: So.
Lishan Aklog: Thats.
Lishan Aklog: Promising and we look forward to consummating that in getting started.
Lishan Aklog: As it relates to the other.
Lishan Aklog: Products that we've put into the incubator is secure and capex and potentially others. What we're pursuing is raising capital on a.
Lishan Aklog: One at a time, but certainly not.
Lishan Aklog: Waiting to complete the project are advancing into commercialization one at a time, so there'll be staggered, but in parallel so once we're able to raise sufficient funds to fund port Io through.
Lishan Aklog: So they'll be staggered, but in parallel. So once we're able to raise sufficient funds to fund Port IO through commercialization, FDA submission and clearance, and commercialization, once we've raised those funds, we will move on to the next target, which would likely be E-Secure and then subsequently Carpex. So ideally, as we continue to raise capital for each of these projects, in the not-too-distant future, they will all be moving along their path toward commercialization in parallel.
Lishan Aklog: Commercialization FDA submission and clearance of our FDA submission and clearance and commercialization once we raise those funds we will move on to the next target, which would likely be secure and it subsequently capex.
Lishan Aklog: So ideally as we as we continue to raise capital into each of these projects that in the not too distant future.
Lishan Aklog: I'll be moving along.
Lishan Aklog: Their path towards commercialization in parallel.
Speaker Change: Great. Thanks for answering my question and I wish you guys. Good luck. Thank you.
Ed: Yes, Thanks Ed.
Speaker Change: Peter we do not have any further questions at this time I would now like to turn the conference back deletion applause.
Speaker Change: Great. So thank you all for joining today and as always thanks.
Edward Moon Woo: Great, thanks for answering my question, and I wish you guys good luck. Thank you.
Lishan Aklog: We do not have any further questions at this time. I would now like to turn the conference back to Lishan Aklog.
Lishan Aklog: Two are for all the great questions and great discussion.
Lishan Aklog: Great. So, hey, thank you all for joining today, and, as always, thanks for all the great questions and great discussion. Hopefully, you have a sense that we're really excited that we're still in the early phases of executing on this updated PAVMed strategy that we hope, in addition to the activities and successes we're having at Lucid, will translate into other subsidiaries, including Veris and PMX, and potentially, hopefully, others that we can consummate in the near future.
Lishan Aklog: Hopefully you have a sense that we're really excited that we're still in the early phases of executing on this updated pattern that strategy that we hope in addition to the activities and successes, we're having that lucid will translate into other.
Speaker Change: Subsidiaries, including various.
Lishan Aklog: <unk> and potentially hopefully others that we consummated in the near future.
Lishan Aklog: So as always we look forward to keeping you abreast of our progress via press releases and conference calls such as this one to keep up with patented lucid various updates I would encourage you to sign up for email alerts at both the patent in lithium investor relations sites to follow us on social media on Twitter Linkedin and to contact.
Lishan Aklog: So, as always, we look forward to keeping you abreast of our progress via press releases and conference calls, such as this one. To keep up with PAVmed, and Lucid's various updates, I would encourage you to sign up for our email alerts at both the PAVmed and Lucid Investor Relations sites, follow us on social media on Twitter, LinkedIn, and to contact us, contact Matt with any specific questions.
Lishan Aklog: Contact Matt with any specific questions. So thank you everybody. Thank you very much everybody and have a great day.
Operator: So, thank you very much, everybody, and have a great day. This concludes today's conference call. Thank you for your participation. You may now disconnect. Happy Tuesday, everyone.
Operator: This concludes today's conference call. Thank you for your participation you may now disconnect happy to stay everyone.
Operator: Yes.
Operator: Okay.
Operator: Okay.
Operator: [music].
Operator: Okay.