PAVmed Inc. Q1 FY2026 earnings call

Capital Structure Restructuring

• Completed the final step of a two-year legacy capital structure restructuring process, resulting in a clean cap table consisting only of common stock and a single long-term secured note, strengthening the balance sheet and positioning PAVmed to execute on its founding mission as a high-growth diversified commercial life sciences company.
• Completed a $30 million Series D preferred stock offering and $15 million senior secured note issuance in February 2026, which was used to redeem all outstanding Series C convertible preferred stock and retire all prior existing convertible debt. All newly issued Series C preferred shares were mandatorily converted to common stock in late March 2026.

Lucid Diagnostics Progress

• Lucid is approaching transformative milestones, most notably pending Medicare coverage for its EsoGuard test; while the coverage decision process has taken longer than expected, management retains full confidence in the outcome.
• Lucid has secured a federal supply schedule and pricing, with first orders now being placed to expand its VA customer pipeline and drive revenue growth. Positive coverage has also been secured from one major laboratory benefit manager for commercial payers.
• Lucid recently completed a new capital raise that extends its operating runway well into 2027.

Veris Operational Updates

• The commercial phase of Veris' strategic partnership with The Ohio State University (OSU) is well underway, with clinical rollout initially focused on the three departments that completed the successful pilot program, and expansion to additional departments imminent per the joint rollout plan.
• EHR integration is now live and functioning well, with positive feedback received from both OSU's clinical and administrative teams. Veris remains on target to reach the goal of 1,000 patients enrolled in its registry by the end of 2026.
• Development of Veris' implantable physiologic monitor is progressing on plan, with work ongoing with new contract manufacturing partner Velentium. The team has made significant progress optimizing battery life to hit a target of two full years of use, and the program remains on track for FDA submission by the end of 2026.
• Management is pursuing an expanded strategic vision for Veris beyond single-partner remote patient monitoring, including exploring expansion to additional centers, development of clinical support services, and AI R&D beyond patient monitoring.

Medical Device Portfolio Relaunch

• The company has relaunched its dormant medical device portfolio under the leadership of newly hired industry veteran Virgilio, who is focused on advancing existing opportunities including PortIO and the Duke-licensed Actaris endoscopic imaging technology, and raising dedicated capital for each individual subsidiary initiative.
• PAVmed has restarted active business development evaluations, having completed deep due diligence on one opportunity (which it ultimately passed on) and is currently conducting its second major diligence process, with the goal of adding commercial-stage assets to the company's portfolio.

PAVmed operates three core segments: Lucid Diagnostics, Veris, and the relaunched medical device portfolio. As of Q1 2026, PAVmed holds ~15% of Lucid Diagnostics' outstanding common shares and a 25% voting interest, with an equity method investment balance of $36 million, reflecting a $1.9 million mark-to-market increase in the quarter. Combined pro forma Veris revenue and Lucid management fee income total more than $3 million per quarter. On a GAAP basis, PAVmed reported a net loss attributable to PAVmed of $60,000 for Q1 2026, with a GAAP loss per share of $4.42 after including $6.9 million in preferred dividends (a pro forma net loss per share of $0.04 excluding preferred dividends). Non-GAAP operating expenses for Q1 2026 were $5.9 million, $1.1 million above the average of the prior four quarters, with $300,000 of the increase attributable to incremental Veris R&D, and the remainder to G&A and professional fees related to recapitalization. Cash on hand as of March 31, 2026 was $6.5 million, not including $30 million in potential warrant exercise proceeds and $2.5 million in additional Veris warrant proceeds.

• No formal numerical revenue or profit guidance was provided for 2026. The company confirmed that future operating expense increases will primarily be tied to R&D efforts to support Veris' implantable monitor FDA submission and clearance, which are supported by 2025 Veris-related financing. • Expansion of Veris commercialization to additional cancer centers will not proceed until additional capital is raised to support the expanded footprint; this expansion could occur before or after the implantable monitor receives FDA clearance, depending on capital availability. • Management expects to complete the Veris implantable physiologic monitor FDA submission by the end of 2026, and confirmed the 1,000-patient patient registry enrollment target at OSU by the end of 2026, which the program is currently on track to meet.

• All forward-looking statements related to milestone achievement, future revenue growth, and business development outcomes are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, as detailed in the company's SEC filings, including the Risk Factors section of the most recent Form 10-K. • The Medicare coverage decision process for Lucid Diagnostics has taken longer than initially expected, creating uncertainty around the timing of this key transformative milestone. • Expansion of Veris commercialization and evaluation of new business development opportunities are contingent on successful access to additional capital, which is not guaranteed. • Early-stage medical device and diagnostic development carry inherent risks, including potential delays or failures in product testing, regulatory submission, and commercial adoption.

Q: Has PAVmed considered pursuing acquisition or licensing opportunities outside of the U.S., and will it focus exclusively on one life science vertical (devices, diagnostics, or therapeutics)?

A: Most opportunities that come to PAVmed originate from U.S. academic medical centers, leveraging management's deep existing industry relationships within the domestic academic medicine ecosystem. However, the company remains open to evaluating opportunities outside of the U.S. PAVmed was originally founded exclusively for medical devices, but has gradually expanded into diagnostics and digital health based on attractive opportunities that aligned with its mission. It remains open to evaluating therapeutic assets as well, particularly early-stage Phase I/II assets where the company's existing clinical infrastructure can add value, and the restructured balance sheet now gives it the flexibility to pursue these opportunities that it did not have before.

Q: How does the relaunched medical device portfolio differ from the prior incubator model, and what criteria does the company use to add new technologies to the portfolio?

A: The prior incubator model struggled to raise capital for early-stage assets, as investors preferred dedicated leadership for individual program lines and the restructuring process was not yet complete at the time. The relaunched portfolio addresses this by placing the entire portfolio under the leadership of an experienced, dedicated medical device industry CEO who is fully focused on advancing programs and raising capital, while still retaining access to PAVmed's shared services infrastructure. The core criteria for new assets are technologies that address meaningful unmet clinical need, have large total addressable markets, and are high-margin non-commodity products. The company has added interest in assets that synergize with its existing focus areas of gastroenterology and oncology, aligning with its existing Lucid and Veris businesses.

Q: Is Veris on track to hit its 1,000-patient enrollment target at OSU by the end of 2026, and what operational lessons is the company learning from the initial rollout?

A: The Veris rollout at OSU is currently on track to hit the 1,000-patient target by end of 2026. After resolving initial delays to EHR integration, the company is preparing to expand from the three initial pilot departments to additional new departments in the near future, per the pre-planned rollout schedule. The initial OSU rollout is intentionally limited to one center to work out operational kinks in real-world use, including clinical workflow integration, EHR communication, and alert management protocols. All lessons learned at OSU will be applied when the company expands to additional centers after securing new capital.

Q: When does PAVmed expect to expand Veris commercialization to additional cancer centers, and are conversations already underway?

A: PAVmed has already held exploratory conversations with other academic medical centers and oncology practice networks about future Veris commercial expansion. However, the company will not launch new commercial engagements until it raises additional dedicated capital to fund the expanded footprint properly. Expansion could occur either before or after the implantable monitor receives FDA clearance, depending on when capital becomes available.