Welcome to the PAVmed business update and first quarter 2023 financial results conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question and answer session. As a reminder, this call is being recorded. I would now like to turn the conference over to your host, Michael Parks, Vice President of Investor Relations. Mr. Parks, you may begin.

Thank you Betsy, and good morning everyone. Thank you for participating in today’s first quarter 2023 business update call. The press release announcing this business update and the first quarter 2023 financials is available on the PAVmed website. Please take a moment to read the disclaimer about forward-looking statements in the press release. The business update, press release and conference call both include forward-looking statements. 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 results to differ are described in the disclaimer and in our filings with the U.S. Securities and Exchange Commission. For a list and description of these and other important risks and uncertainties that may affect future operations, see Part 1 Item 1(a) entitled Risk Factors in PAVmed’s most recent annual report on Form 10-Q filed with the SEC, and subsequent updates filed in the quarterly reports on Form 10-Q and any subsequent Form 8-K filing. Except as required by law, PAVmed disclaims any intention or obligation to publicly update or revise any forward-looking statements to reflect changes in expectations or events, conditions or circumstances on which those 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.

Thanks Mike and good morning everyone. Thank you for joining us today for today’s business update call. I look forward to a good conversation. I’ll start with some recent highlights. As those of you who are long term investors know, earlier this year we proceeded with a restructuring and a strategic refocusing and have been focusing all of our efforts for this half of the year on our two commercial subsidiaries, Veris Health and Lucid. Yesterday we had a dedicated call for Lucid, so our content for today will be limited. I would encourage you to go to our website and view the webinar from yesterday for further details about Lucid. With Veris Health, we’ve had some recent highlights, including that our remote patient monitoring platform, Veris Cancer Care platform is now live. We have an expanding commercial footprint with a robust nationwide pipeline. Subscription payments have begun under the software-as-a-service recurring revenue business model, and we appointed a new President of Veris, Gary Manning, to hone strategy and expand commercial horizons. A few introductory slides here for those of you who might be new to the PAVmed story. PAVmed is a diversified commercial-stage medical technology company. We operate in all three segments of medical technology, in devices, diagnostics and digital health. As mentioned, our corporate structure is such that PAVmed has two subsidiaries, a digital health subsidiary at Veris Health, which is privately held, and our publicly traded diagnostics company, Lucid Diagnostics. Let me start with Veris. Veris Health is a commercial-stage digital health company that’s focused on enhancing personalized cancer care. There are two elements to our--there are two products that we have developed. One is the Veris Cancer Care platform and the other is an implantable monitor that’s being developed and looking to commercialize next year. Our…

Thanks Lishan. Our summary financial results for the first quarter are reported in our press release that was published last night. Over the next there slides, we’ll emphasize a few key highlights from the quarter. I’d encourage you to consider those remarks in the context of the full disclosures covered in our quarterly report on Form 10-Q that was filed with the SEC on Monday afternoon and is available on the PAVmed website. On Slide 17, you will see the cash of $49.3 million at the end of the quarter reflects a $9.5 million sequential increase from the year-end balance of $39.7 million. Payables decreased use of cash $1.5 million sequentially. The convertible note had a net increase of approximately $10.6 million sequentially, reflecting the addition of a convertible debt inside Lucid Diagnostics. Other long term liabilities are capitalized leases related to our lab and office spaces. The shares outstanding, including unvested restricted stock awards as of today, is 104.5 million shares. The GAAP outstanding shares of 100.5 million are reflected on the slide, as well as on the face of our balance sheet in the 10-Q. In addition to the Lucid convertible debt in the first quarter, the Lucid board authorized a $20 million preferred offering. We completed the initial closing of the Lucid preferred in the amount of $13.6 million. Both structures keep Lucid’s stock out of the market for long periods of time, likely two years in the case of the preferred, which allows Lucid to complete its work on clinical utility studies and improving reimbursements. Our consolidated runway is elongated into 2024. Combining these financings with the cash at the beginning of the quarter results in pro forma cash of $63.3 million on January 1. With the ending quarter cash balance of $49.2 million, the pro…

We will now begin the question and answer session. [Operator instructions] The first question comes from Ross Osborn with Cantor Fitzgerald. Please go ahead.

Morning Ross.

Hi, good morning. Congrats on the progress. Maybe I’ll focus on Veris. Can you discuss the types of new accounts you have added during the quarter and how many patients, if any, have been on-boarded to date?

Yes, we have right now a total of three accounts, and a couple that are close, in fact one that’s closing today, and right now they are sort of medium-sized practices, often with multiple locations. The first practice has three different locations. We do have a process with larger strategic accounts and larger, bigger cancer care centers - those are, as you might expect, longer lead times in terms of securing those accounts, but we’re getting traction in those conversations as well. In terms of the number of patients, we’re really not quite ready to start reporting on patient numbers, we certainly will in the coming quarters. But we have dozens of patients that are on-boarded and we’ve had sort of second waves of patients in our earlier accounts. Generally when we open an account, there is a--as you might expect, they’ll delineate their practice and identify higher risk patients who they think will benefit, and as Dennis mentioned, this is an important clinical tool but is also an important practice tool, so figuring out how to properly integrate it into their IT system, figuring out the RY model, figuring out their billing and tracking of time and so forth is a collaborative process between our team and theirs, and so far it’s gone really well.

Okay, great. Then maybe could you just explain again how the revenue recognition process works? I realize it’s a SaaS model, but maybe just from the time of a patient is on-boarded until PAVmed should recognize revenue.

Yes, so for Veris, when a patient is on the platform, we will bill the client the appropriate fee on the contracted amount, roughly. We measure that around $80 per patient, and we bill that each month that patient is on the platform. The client in turn will bill the patient’s insurance company, which there are existing codes, we don’t have to fight the reimbursement battle here, and the client will turn around and pay us and they’ll collect from the insurance company. Because the collection has high predictive value of collection, we’re able to recognize revenue as the patient or the client is invoiced, so it’s on an as-invoiced basis for Veris, unlike Lucid where we’re presently in this reimbursement evolution where we have to recognize revenue on a cash collection basis.

Okay, great. Thank you for taking my questions.

Thanks Ross.

The next question comes from Anthony Vendetti with Maxim Group. Please go ahead.

Anthony, good morning.

Hi Anthony.

Good morning Dennis, good morning Lishan. How are you?

Great, doing great.

Excellent. Just following up on Veris, can you talk about what the pipeline looks like at this point, any color on that? Then on Lucid, it looks like significantly more tests are being performed outside of the Lucid test centers. Can you comment on that, and would that cause you to pause setting up new centers and focusing more on just driving patients to wherever the physician can perform the procedure? Thanks.

Thanks Anthony. Let’s start with Veris. The pipeline is robust. As with any commercial pipeline, some are in the midst of contractual negotiations, some are at early stages, but the typical process for bringing on a client, a medium to small practice is one of engagement, of demos, of contractual negotiations on the subscription fee, and then ultimately of planning and executing on the integration process for getting the platform onto their IT system. We don’t have concrete numbers, but it’s in the dozens range in terms of the total number of targets, and we expect to start seeing a nice escalating number of those. But as I said, there’s a wide range of practice sizes. There are small practices with a couple of oncologists, all the way up to obviously the large--the major large cancer centers across the country, which aren’t really all of them, and the process for securing those accounts is going to be different and the timelines are going to be different. Let me move onto the Lucid test center question, because that’s a really important one. Again, I said this before but I’ll repeat it for emphasis, that our approach with regard to how we’re expanding access to the test, patient access to the test is a multi-pronged one. It’s an all-of-the-above. The testing events, high volume testing events are supplementing, and so far we’re excited about the opportunity to bring in patients in large chunks through these testing events, but we’re continuing full steam and not tacking or shifting in any way from the traditional model of our reps calling on primary care physicians and specialists to garner physician adoption. You specifically asked about the physical test centers versus the physician practice orientation. That is shifting to, as I showed on the slide, an…

Okay, great. Thanks, that’s very helpful. I’ll hop back in the queue.

Thanks Anthony.

As a reminder, if you would like to ask a question, please press star then one to enter the question queue. The next question comes from Ed Woo with Ascendiant Capital. Please go ahead.

Thank you for taking my question. My question is once you get an account signed up for Veris, how quickly can you get from signing a contract to getting everything up and running? I know it’s still pretty early, but as things are progressing, how quickly do you think it could be?

Yes, as you said, it’s early, so we’re progressing and we’re learning jointly with the practices, and of course it depends a bit on the complexity of the practice and the size of the practice. One thing that we’ve learned in this early experience with the first several clients is that we can actually get them up and running, where the patients are on the system and generating data, even as we’re working on the integration with their electronic health record, which as you might imagine has some additional complexities to do so. That time is shortening. I would think over time with more experience, that we could have that down from contract to first patient on the system down to a few weeks, but that’s still a learning process for us as we’re still relatively early in our launch.

Great, then my last question is on the pipeline that you have, or the contracts that you already have signed. Is there a geographic area or region of the country that you guys are focusing on first?

Yes, we’re not like in the Lucid case, where we did consciously focus on areas in the west, here we’re not. We have our commercial team targeting the entire country. It has turned out that several of the first accounts happened to be in the northeast - it was Jersey and Pennsylvania, but we’re active in Florida, in the southeast as well as in the west, so we’re not targeting any particular geography right now. We’re looking at any opportunity across the country.

Great, well thanks for answering my questions, and wish you guys good luck. Thank you.

Yes, thanks a lot, Ed.

This concludes our question and answer session. I would like to turn the conference back over to Dr. Aklog for any closing remarks.

Thank you Operator, and thank you all for taking the time this morning, joining us on this call. I would encourage you to, for further information, to go to our website, follow us on social media, and of course feel free to contact Mike Parks with any questions. His email address is mep@pavmed.com. Thanks again and have a great day.

The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.