PAVmed (NASDAQ:PAVM) executives used the company’s fourth quarter 2025 business update call to outline what Chairman and CEO Dr. Lishan Aklog described as a newly “fixed” capital structure following a February restructuring, recapitalization, and financing, while highlighting progress at its two core subsidiaries, Lucid Diagnostics and Veris Health, and announcing plans to relaunch its medical device portfolio.
Capital structure overhaul and “clean cap table”
Aklog said PAVmed has completed a multi-step effort over roughly two years to address what he called the company’s “legacy capital structure,” culminating in a transaction in February. “The toxic convertible securities that had held us down for a while were removed,” he said, adding that the company believes it now has “a very clean cap table.”
McGrath said the February financing included $30 million of equity via a short-term preferred security that has been converted into common stock following shareholder approval, plus $15 million of “long-term, 15% interest-only three-year debt.” He also noted the financing included warrants: a $30 million warrant with a $6.50 exercise price that is callable “30 days after the CMS publication of the draft EsoGuard coverage policy,” and Veris warrants that are exercisable after the implantable device is FDA cleared.
Lucid Diagnostics: volume growth, VA contract, and real-world data
Aklog called Lucid the company’s “most advanced asset,” emphasizing that it raises capital independently and is approaching major milestones that include a Department of Veterans Affairs contract win and “pending Medicare coverage.”
For the fourth quarter of 2025, Aklog reported that Lucid posted EsoGuard revenue of approximately $1.5 million and test volume of 3,664 EsoGuard tests. He said test volume rose 29% versus the third quarter and revenue increased 24% over the same period, with volumes exceeding Lucid’s stated target range of 2,500 to 3,000 tests per quarter.
Aklog also highlighted Lucid’s VA contract for EsoGuard, which he said expands access across the nation’s largest integrated health system and provides an opportunity to reach “the 9 million enrolled veterans” who he said have elevated risk for gastroesophageal cancer.
In addition, Aklog pointed to newly announced data from what he described as the “largest real-world experience of esophageal pre-cancer detection” evaluating EsoGuard and EsoCheck in 12,000 patients. He said the experience showed “excellent performance across multiple metrics,” including technical success, procedure times, and safety, as well as “the appropriateness of physician use.”
On ownership, Aklog said PAVmed remains Lucid’s largest shareholder and holds approximately 31 million shares of Lucid common stock. McGrath later said PAVmed owns about 18% of Lucid’s common shares outstanding and, while it no longer has voting control, it retains “significant influence” with approximately 25% voting interest.
Veris: OSU commercial rollout, Epic integration, and implantable monitor timeline
Aklog said Veris, PAVmed’s majority-owned digital health company, is seeing early commercial traction through its engagement with Ohio State University, which he described as “well underway.” A key recent step, he said, was completing “full Epic integration” with OSU, enabling bi-directional information flow and giving clinicians access to Veris data within Epic.
During the Q&A, Aklog said the commercial engagement includes a “target of 1,000, minimum of 1,000 patients within the first year,” along with a structured rollout across departments. He said the company is “on track and on schedule” against the project plan, and that the launch timing was closely tied to completing EHR integration.
Aklog also said Veris is advancing its implantable physiological monitor and expects a 510(k) FDA submission “in the latter part of this year.” He noted the company engaged a new vendor around the time of the previous call that will handle design, development, and early manufacturing. Aklog said the work is “under budget” and aimed at reaching design freeze, FDA clearance, and commercial launch.
McGrath said fourth quarter cash burn of $1.5 million reflected Veris operating costs, including roughly $600,000 of outside contractor development expenses for the implantable device, funded by Veris-specific financings of $2.3 million in the first quarter of 2025 and $2.5 million in the second quarter of 2025.
Executives also described an expanded vision for Veris beyond remote patient monitoring. Aklog said the company is developing AI-based tools such as a cancer patient risk stratification tool aimed at identifying patients at risk of complications and readmissions, and it is exploring adding clinical support services to help triage alerts. He told analysts that the AI tools are in early stages and require “extensive data,” with discussions underway with OSU regarding how to utilize both collected and legacy data.
Relaunching the MedTech portfolio: leadership hire, Duke license, and PortIO
Aklog said PAVmed intends to “relaunch” its medical technology portfolio and has hired Joseph Virgilio as Senior Vice President and Chief Business Officer for medical devices. Aklog said Virgilio will lead PAVmed’s medical device subsidiaries as CEO, beginning with PortIO and a new subsidiary, Arcturus, which houses a licensed Duke University endoscopic imaging technology.
Aklog said the Duke license is now fully executed and that the technology is an optical approach combining “OSC” with “a/LCI,” designed to help discriminate between non-dysplastic and dysplastic Barrett’s esophagus during endoscopy without relying on biopsy. He described a potential future paradigm where dysplasia could be identified “on the spot” and followed immediately by ablation therapy, calling that outcome “transformational,” while also emphasizing that the project remains in early phases and will require form-factor redesign work under a sponsored research agreement at Duke before additional patient studies and an expected 510(k) pathway.
On PortIO, Aklog said the company concluded it needed dedicated leadership to reboot the program and reengage on the IDE study leading toward FDA clearance and commercialization.
Aklog also said that following the February financing, the company has received inbound partnership inquiries across several categories, including diagnostics, electrodiagnostic companies, medical devices, and pharma assets. In response to an analyst question, he said PAVmed is not limiting itself to a single specialty area, though GI-related opportunities may be a natural fit given its experience through Lucid.
Financial discussion: burn, Lucid equity-method investment, and expense trends
McGrath noted that the equity-method investment balance related to Lucid was $34 million at year-end 2025, which he said reflected the mark-to-market value of PAVmed’s Lucid shares and an $8.5 million year-over-year increase consistent with a 33% rise in Lucid’s stock during 2025.
He also discussed fourth quarter results, including a GAAP net loss of $2.8 million before non-controlling interest and preferred dividends, which included about $1 million of non-cash charges and reconciled to a non-GAAP loss of $942,000. McGrath attributed the non-GAAP loss largely to contractor R&D costs for the Veris implantable device and annual Delaware franchise taxes. He said the company’s baseline operations were “near cash flow breakeven,” with development expenses offset by dedicated financing or funding.
Looking ahead, McGrath said non-GAAP operating expenses since Lucid’s deconsolidation have been “nearly flat” over the last four quarters, and that future expense increases are expected to be primarily tied to R&D efforts to reach FDA submission and clearance for the Veris implantable device.
In closing remarks, Aklog told investors that PAVmed’s “corporate structure and balance sheet is now fixed,” that its two commercial subsidiaries are making progress toward key milestones, and that the medical device portfolio is restarting under new leadership amid what he described as a renewed level of interest from potential partners.
About PAVmed (NASDAQ:PAVM)
PAVmed Inc is a clinical-stage medical technology company focused on acquiring, developing and commercializing innovative medical devices aimed primarily at gastrointestinal endoscopy and related therapeutic areas. Its portfolio includes FDA-cleared products such as EsoFLIP® Distensibility System for the treatment of esophageal strictures and MUSE™ (Medigus Ultrasonic Surgical Endostapler) for endoscopic fundoplication in gastroesophageal reflux disease (GERD). In addition to its gastrointestinal franchise, PAVmed is advancing early-stage programs targeting indications in oncology, urology and dermatology.
Founded in 2012, PAVmed has built its pipeline through internal research and development as well as strategic collaborations and acquisitions.
