PAVmed Inc.

Good morning and welcome to the PADMED's third quarter 2025 Business Update Conference Call. At this time, all lines are in listen-only mode, and 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 Thursday, November 13, 2025. I would now like to turn the call over to Mr. Matt Riley, PadMed's Senior Director of Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you for participating in today's business update call. Joining me today on the call are Dr. Alicia Nacog, Chairman and Chief Executive Officer of PadMed, along with Dennis McGrath, Chief Financial Officer of PadMed. The press release announcing our business update and financial results is available on PadMed's website. Please take a moment to read the disclaimers about forward-looking statements in the press release. The business update, 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 statements made. Factors that could cause actual results to differ are described in the disclaimer and in our filings with the SEC. 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 in PathMed's most recent annual report on Forms 10-K filed with SEC, and any subsequent updates filed in the QWERTY reports on Forms 10-Q and subsequent Forms 8-K. Except as required by law, PathMed 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 four looking statements. I would now like to turn the call over to Dr. Alicia Nacog, Chairman and CEO of PatMed.

Thank you, Matt, and good morning, everyone. Thank you for joining our quarterly update call. As always, I'd like to thank our long-term shareholders for your ongoing support and commitment. Before we delve into our recent operational highlights, as I've done in the last couple of calls, I want to just remind you that over the past, now, 18 months, we've been taking some really critical steps stabilized Padmet's corporate structure and balance sheet. We did a restructuring of debt in the early part of this year, and we've been working on that. But there's still work to be done on that front. We have a couple of additional steps that we think we're going to be able to consummate in the very near future, whereby following that, we think Padmet will be fixed, and we'll be back to the original proposition, where Padmet will be really well-positioned to operate Per our vision as a diversified commercial life sciences company with multiple independently financed subsidiaries operating under shared services model. And it'll give us the opportunity to start building that portfolio beyond our two major main commercial subsidiaries right now. So let me just talk about that briefly and provide a brief overview of Padmet's portfolio. PadMed is a vehicle to deliver innovative medical technologies, and we continue to operate under a shared services model. And as our subsidiaries succeed, particularly Lucid, PadMed should also succeed. So let me just start with Lucid. Lucid's obviously our main asset. It's a publicly traded diagnostic company, and it's on the cusp of a transformative milestone, particularly Medicare coverage. It continues to succeed at raising its own capital, including this past quarter, and it has sufficient runway to accelerate its commercialization once Medicare coverage is secured. I'll talk more about Veris in much more detail later, but Veris is our digital health company that offers a cancer care platform to enhance personalized care for cancer patients who are initiating and undergoing a systemic treatment with chemotherapy and immunotherapy. We made a big... Earlier in this year, we were able to secure financing that's allowed us to bring our project plan forward to develop the key implantable device, and an FDA submission is planned for next year. As we talked about on previous calls, we have started to make some effort to bring other technologies within our portfolio, as well as others that we have access to, and we are in the process of organizing around that and seeking to raise capital around that, and this sort of final steps of our restructuring that I mentioned earlier, we think will put us in a very strong position to be able to continue to build these subsidiaries, to finance them, and to pursue very promising assets across the life sciences sector that we're actively pursuing. One of those technologies which we mentioned in a press release earlier this year was an exciting technology that That involves a licensing agreement, a partnership with Duke University and the University of North Carolina, and it's a breakthrough endoscopic imaging technology for esophageal precancer that can provide real-time detection of dysplasia or advanced precancer with the potential to completely transform the way that's treated and to do so at the same time as a diagnostic procedure. We're partnering with Dr. Adam Wax at Duke, who pioneered this technology, and Dr. Nick Shaheen from UNC, who is working with him closely. This fits within our partnership model, the same one that we launched Lucid and Veris. We have one of the life stages of finalizing the license agreement and looking for building a team around this technology and a pathway towards the early stages of product development, finalizing regulatory strategy, and the and really just sort of getting this project, that's what we're really excited about, off the ground. Let's get into the operational side of things. I do encourage you to, as always, to listen to yesterday's Lucid Business Update call for greater detail on some of these areas. But the main takeaway for Lucid is that we are now better positioned than ever to capitalize on eCigar's large market opportunity and large clinical opportunity. and their near-share milestones, which we believe will ultimately positively impact PadMed, as PadMed remains the largest shareholder of Lucid. EasyGuard revenue is $1.2 million for the quarter, and test volume is just over $2,800. Both of those are in line with last quarter, and our volume has been consistent with the target range of 2,500 to 3,000 tests that we've articulated. that we are seeking to maintain to facilitate our engagement with commercial payers while we await Medicare coverage. The big highlight, as we talk about in our elusive call, was the Medicare contractor meeting that was held in September. It was wildly successful. The experts unanimously endorsed Medicare coverage for ESAGARD, and this is really the final step towards what we believe is a near-term Medicare coverage for that test. We also raised capital, strengthened the balance sheet for Lucid with an underwritten public offering of just under $27 million in proceeds. And so, as I mentioned earlier, the extensive Lucid runway through 2026 was a very strong investor interest and confidence, including institutional investors and and insiders and votes well for Lucid's ability to execute on a strategic plan. So let's move on to Veris. So the most important development this past quarter was that we launched the commercial phase of our strategic partnership with OSU. If you may recall, we had a longstanding working relationship with OSU where we completed a pilot study. That study was very successful. It was found to be that technology was found to be valuable to their patients by all objective measures and predefined performance criteria. And so we are in the commercial phase. We are finalizing EHR integration, but we've already started to proceed with building the commercial side of things with the initial three departments within OSU's James Cancer Center, now launching this in a broader patient population beyond the pilot.