Hello and welcome to the PAVmed and Lucid Diagnostics Joint Business Update Conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Lisa DeScenza, Vice President of Integrated Communications at LaVoieHealthSciences. Please go ahead Lisa.

Thank you, operator. Good afternoon, everyone. This is Lisa DeScenza, reporting PAVmed and Lucid's Investor Relations. 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; and Chairman and Chief Executive Officer of Lucid Diagnostics, along with Dennis McGrath, President and Chief Financial Officer of PAVmed and Chief Financial Officer of Lucid Diagnostics. The press release announcing our business updates and financial results is available on PAVmed and Lucid's websites. Please take a moment to read the disclaimer about forward-looking statements in the press release. The business update press release and this conference call, both 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 the statements made. Factors that could cause actual results to differ are described in the disclaimer and in our filings with the Securities and Exchange Commission. For list and description of these and other important risks and uncertainties that may affect future operations, see Part 1, Item 1A entitled Risk Factors in PAVmed's most recent annual report on Form 10-K filed with the Securities and Exchange Commission and any subsequent updates filed in quarterly reports on Form 10-Q as well as Lucid's S1 registration statement and any subsequent 8-K filing. Except as required by law, PAVmed and Lucid disclaim 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 those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements. With that said, I'd like to turn the call over to Lishan Aklog. Dr. Aklog?

Thank you, Lisa and good afternoon, everyone. Thank you for joining us on this first joint quarterly update call for PAVmed and its major subsidiary Lucid Diagnostics. This call of course comes at a very exciting time for us almost certainly the most important crossroads in PAVmed's corporate history. Just over one month ago, Lucid became a NASDAQ listed Public Company and netted over $60 million in gross capital, providing it with sufficient runway to execute on its growth strategy and drive commercialization in a $25 billion addressable market. Also, PAVmed and Lucid are no longer pre-revenue companies as they both for the first time formally recognized modest revenue consistent with projections in the third quarter. Before diving into updates on the important developments in our business over the past quarter and recent weeks, I'd like to first thank PAVmed long-term shareholders for your ongoing support and commitment and I would also like to welcome our new Lucid shareholders to the panel. Every day, our rapidly growing team is intensely focused on growing these companies and enhancing your long-term shareholder value. I will start by providing some high level comments on certain corporate and strategic matters. I will then hand things over to Dennis, who will provide our financial update. After that, I'll proceed with a systematic business update before opening it up to questions. So let me start by talking in a bit of detail about the relationship between PAVmed and Lucid. Pre-IPO, now [indiscernible] post-IPO and in the future, but based on equities we and others have received, I think it's important that I clarify something by recounting the history of Lucid as a Company. Lucid was founded as a Separate Corporate Entity and privately held Subsidiary of PAVmed in May 2018, to license the groundbreaking technologies, underlying…

Thanks Lishan and good afternoon, everyone. For preliminary and summary financial results for the third quarter ended September 30, 2021, we reported in our press release that was published earlier this afternoon, we plan to file our quarterly reports for each of PAVmed and Lucid Diagnostics on Form 10-Q with the SEC in the coming days. At that time, these reports will be available at sec.gov and on the PAVmed and Lucid websites respectively. PAVmed has elected the automatic five-day extension for filing its form 10-Q for the third quarter. They filed on or before November 22, 2021, the SEC report will be considered timely filed. The Lucid Diagnostics form 10-Q was due 45 days from the effective date of the IPO registration or November 29. We intend to file both 10-Qs concurrently during the PAVmed extension period. The extension for PAVmed was unavoidable given the IPO occur directly in the middle of a closing and a reporting period. So with regard to test performed and revenue recognition, as you already know, from our previous quarterly corporate update calls there a general rule EsoGuard test performed so far will be recognized as GAAP revenue when cash is actually collected by the company. Also, as previously mentioned, this will more than likely be true during this transition period of negotiating third party, private payer reimbursement contracts and related coverage policies. As reported to you last quarter for compliance purposes during the reimbursement transition period, we've negotiated a short term month-to-month fixed payment arrangement with the laboratory, which is processing the EsoGuard assay and is performing the insurance company billing and collections function. The fixed payment arrangement can be updated monthly to reflect estimated collections. This commercial agreement became effective on August 1, 2021 and therefore we recognized $200,000 of revenue as…

Thanks, Dennis. So let me now run through some key updates from across our business for the past quarter of recent weeks, as well as plans for the upcoming months. So as always, let's start with Lucid, just as a quick intro, Lucid Diagnostics is a commercial-stage cancer prevention diagnostics company, focused on the millions of chronic heartburn patients who are at-risk developing highly lethal esophageal cancer. Unlike other common cancers, mortality rates are high in this cancer, even in its earliest stages. So preventing deaths requires us to detect esophageal pre-cancer, which occurs in approximately 5% to 15% of at-risk chronic heartburn patients. Esophageal pre-cancer can be monitored in its early phase and cured with an endoscopic procedure in its late phase, which reliably halts progression to esophageal cancer. Although esophageal pre-cancer screening is already recommended in millions of chronic heartburn patients, fewer than 10% undergo traditional invasive endoscopic screening. The profound tragedy of an esophageal cancer diagnosis is that likely death could have been prevented if the patient had been screened and then undergone monitoring and curative treatment. The missing elements for a viable esophageal cancer prevention program has been the lack of widespread screening tool that can detect esophageal pre-cancer. We believe that Lucid EsoGuard tests performed on samples collected with its EsoCheck device constitute the first and only commercially available diagnostic test capable of serving such a widespread screening tool, to prevent esophageal cancer death through the early detection of esophageal pre-cancer in these at-risk chronic heartburn patients. On the commercial front Lucid is now flushed with the proceeds of its IPO, is in the process of rapidly expanding its commercial sales infrastructure and moving from a hybrid sales model, utilizing independent sales rep to a full-time dedicated direct sales force. Lucid hired 17 sales and…

[Operator instructions] Our first question today is coming from Kyle Mikson from Canaccord Genuity. Your line is now live.

Congrats on the IPO in the quarter. So I just wanted to start and Lishan I heard you on reimbursement really helpful, I guess next few months, next couple of months you think the draft LCD could be published, but just could you just walk through the steps a little -- with a little bit more clarity or detail and just kind of the expected timelines and perhaps the scenarios. I'm just kind of curious if you expect any additional data is going to be necessary to achieve the draft LCD. Thanks.

I think the short answer is no. We obviously will know, and we hope -- we don't expect that. There was nothing in our extensive discussions with the MolDx Group as we were preparing the coverage dossier back in the first half of May, that suggested that they were focused on additional data and the CAC meeting transcript, if you read it, it's a bit rambling. There's a lot of -- you have to sort of pay attention, that there was fairly strong support as I mentioned from the gastroenterology expert panelists, including two from Mayo Clinic and one from John's Hopkins on the fact that there's sufficient data right now to support high risk screening with these non-endoscopic tests basically leveraging the existing guidelines for endoscopic screening to non-endoscopic screening. So every hint we've gotten and every communication we've had would seem to suggest that. We feel that there's a fairly straightforward decision to be made here. If one follows the risk factor profile one that's been well established and endoscopic screening recommendations, Medicare patients are over 65. So we would hope and expect that the same risk profile, basically a patient, a Medicare patient with two other risk factors would be covered for screening. That said, of course it's still an unknown. We're encouraged that they appear to have dusted off our dossier and are looking at it in conjunction with other tests in the GI area and in the esophageal area. And we're going to, as I said, we're hoping that that'll translate in the draft in the coming months. What happens from there is very, really impossible to predict, right? It depends on what they say. If we -- certainly if we get something that's approximates what I just described and what we think we have made a strong argument for, we would hope that the process from a draft LCD to a effective one would not be very long, but that's obviously to be determined.

Okay, appreciate that was – that makes sense. And also was wondering where, I guess, where most EsoCheck procedures had occurred during the third quarter and I guess where they're kind of being performed currently and what's the expectations for like early '22, and obviously you had the Lucid test centres kind of launched, I guess, in the middle of the quarter. I know, they're not really up and running yet, but I'm just trying to understand if the volume that we saw in the third quarter could increase sequentially or just what the trends could look like going forward?

Yeah. So I think I have a -- one clear answer is that the bulk of the nearly all of the tests performed in the third quarter were through traditional -- our traditional target, which were the GI which were the GI physicians. We didn't launch the Phoenix test centers until August, by the time we had our local sales reps in place. We were well into September. So that number reflects almost entirely the same target that we had in prior quarters. And as I said, it reflects some sort of shifting of resources to get the test centers up and running and to train and expand our sales force. So, I think, I would expect over time, including this coming quarter and beyond that the proportion of tests performed from primary care referrals at our test centers, relative to those being performed at GI centers will likely shift, but it's really hard to -- it's really hard to know for sure. But that's certainly where we're heading over the long-term and that we fundamentally believe over the long-term, whether it happens in the next couple of quarters or not, we'll see. Over the long-term, the path to wide adoption of EsoGuard testing is through the primary care physicians, because that's where the patients are. Very few patients ever see a gastroenterologist.

All right, great. I'll leave it there. I appreciate you taking the questions though, and I'll let other others jump in. Thanks again.

Next question today is coming from Charles Duncan from Cantor Fitzgerald. Your line is now live.

Good Lishan, thanks for taking the questions. Congratulations on the recent progress. You've got a lot going on. My questions are primarily along the lines of Lucid. I wondered if you could provide any feedback from physicians who have prescribed EsoGuard, EsoCheck and kind of in market experience thus far, anything newly glean from that.

Well, absolutely. Yeah. We train and we prepare our reps to do what we call objection handling, right. For both flavors of physicians for gastroenterologists and for primary care physicians. And we've had a lot of experience on that on the talk tracks related to gastroenterologists and have worked through that. And generally those talk tracks have been well honed and have gone well over the prior quarters. What we have learned and we're very happy with to have experienced is that the talk tracks that we developed on the primary care side is really quite straightforward and the reason for that is that what we made, as you know, we made the strategic decision to have a very simple ask of the primary care physicians, which is to say, let us update you or educate you on the relationship between chronic heartburn and esophageal cancer on the availability of this test, and all we're asking is that you understand that, and you offer this test to your -- to the appropriate patients within your practice and order the test and we'll provide you with a location for that test to be performed. So because of the burden on them is quite low, we're not asking them to utilize their own resources to do the test. We have a quick anecdote one of our Vice Chairman Stan Lapidus was in Phoenix, touring our test center and engaging with some of our folks. And he actually did a sales call, which is quite impressive with one of our local PCP focus reps. And he really came back and stands a pretty grizzly veteran. And he came back with very positive reviews of the -- of how the story was told and how the entire folks in this in was in office in Mesa, physicians, nurse practitioners, PAs, etcetera, just got it from the very beginning and it didn't require a lot. Now, now there is obviously an arch of this to sales and that's mostly around repeated context. So messaging has been fine, but to get people to actually, to remember to think about it and to have it be front and center, that's just classic sales 101 and requires, multiple points of content. And the team has really gotten that down to almost a mathematical exercise right now, in terms of how to do that. So as I really said, could not be happier with how the interactions are going with the primary care physicians, which is what's new in the last quarter.

Very good. And as, I guess, as a key investor with your time and money in this business, and these initiatives marketing initiatives over the course of say, even the next quarter, what will you be looking to gauge success?

Sure. I think a quarter may be short, but, we'll obviously, you know, hope, hope that we'll that we'll start seeing quarter, quarter. We clearly, yeah. We clearly are looking, our metric right now is just test volume. Right. And, as I said, we took some to time to kind of, it took some not just time, but sort of allocation of resources to, do this transition to direct Salesforce. The training program is now a five day sort of intensive five day, all day program that we expose 16 new, new sales people to just last month. And so now that that's all in place and a lot of the infrastructure with Salesforce and stuff is in place. We really expect them they're out of the field. Now they're on the field banging on doors making their case. And so we would you know, certainly expect to see some you know, nice increase in the, in testing volume over the couple, over the coming quarters.

Okay. And then last question done this…

One other thing that, but we'll certainly know by the next quarter, which is that, as I mentioned, we're very close no more than a couple of weeks away from launching the pilot DTC program with ups script in Phoenix. And we'll have a lot of information by the time we have our next call as to how effective that direct to consumer marketing. It is how effective we are at capturing the interest of patients with chronic heartburn and then driving them into our telemedicine program. So that obviously, could very well have a big impact in the coming quarters as well.

Okay. That should be helpful. Last question on the marketing initiatives, and then just one quick strategy question on CapNostics I guess relative to the testing center model, which you've used in Arizona, you mentioned perhaps expanding that to Denver, Las Vegas and Salt Lake City. Does the math still work or are you having to adjust that at least with these three new geographies?

Yeah, no, and that's the same, obviously at some point we'll get to New York and Chicago and other, and then potentially some other higher real estate areas where the medical office leases will be somewhat higher, but honest, even then the math is still pretty insanely attractive in that it still ends up being a marginal cost business. So no nothing has changed in the cities that we just launched in and the ones we expect to launch in the Pacific Northwest. And we really don't expect that to change meaningfully even in higher cost. That's on the operation side, obviously the marketing side and the media cost side will increase dramatically. And that's why we're testing the media model in lower cost cities before we would even contemplate doing it in larger higher cost media markets.

Got it. Last question strategy. Thanks for taking all my questions regarding EsophaCap and the CapNostics, I guess I'm wondering if you could give us a little bit of information what you would like to do with that, and really what drove you to consider that acquisition by PAVmed, thanks?

Thanks. So let me answer the second question first. I'm probably not really going to be able to say question the first question. So let's start with the second question. So the reason we acquired EsophaCap from CapNostics is really fundamentally that Lucid intends to be the esophageal disease company. So we have obviously EsoGuard and EsoCheck for esophageal precancer, but, esophagus screening we have -- we've entered into option or license agreements, and we're continuing to seek more out with regard to progression markers that can detect the difference between non-dysplastic and dysplastic, how we have an ablation technology that's currently housed in PAVmed and EsoCure that we expect when and if it's successful, we'll move into mental Lucid. So we want to do -- we want to be the company for all things esophageal, all esophageal disease. I forgot to mention we also launched a medical advisory board and have started some clinical trial work on its use in eosinophilic esophagitis, which is an inflammatory very common inflammatory food mediated allergy condition of esophagus. So with that as a baseline, you know, we want to make sure that we have all of the tools available to us to pursue all of the things that I just mentioned. And although we firmly believe that there, that ISO check for the screening application that we're using today is and will continue to be the best choice because of the way it does anatomic targeting and protected sampling. We just wanted to make sure that we had, we had access to the other technology out there, which was a sponge based technology, which could be beneficial for, let's say, esophageal eosinophillic esophagitis, or potentially for progression markers or other areas that we're pursuing. We were frankly so much surprised that tics was available and when it became clear that it was available, we, we acquired now in terms of the strategy, I'm going to have to get back to you on, you know, obviously there's you know, we, we, as I mentioned in my prepared remarks, we have initiated conversations with Mayo clinic and Johns Hopkins who have been doing clinical research using the on their own biomarkers using their using the ESO cap device and with frankly with commercial partners that they work with. So commercial sponsors and partners they work with. So stay tune on that. And, we'll let you know once we have a little bit more fill bit on that, but we just wanted to get into our portfolio to make sure we had all the tools available so that we could pursue our broader aspirations in this space.

Next question today is coming from Frank Takkinen from Lake Street Capital Markets. You line is now live.

Good afternoon. Thanks for my questions. I think this was slightly or partly answered in Kyle's line of questions, but I just wanted to come back to it. Can you talk to the sequentially flat quarter over quarter from a volumes perspective? What were some of the moving pieces that happened in the quarter? I guess I was expecting a little bit of growth, but I understand a lot of moving pieces. So maybe

I think the best way, sorry -- for the best way I describe it is that is that as I said, a transition quarter. So in the second quarter, everything was sort of full steam calling on gastroenterologists. We did not have we had not sort of expanded our team. It was mostly our business model with sales management utilizing independent sales reps. And we really kind tack pretty rapidly in the third quarter in anticipation of the Lucid of IPO and the access to significantly more growth capital to a direct sales model. So most of that is most of that is a result of us shifting some personnel to getting the test centers up and running, to getting the primary care folks trained to getting some of the infrastructure, as I mentioned, the online and other infrastructure in place. So we can be set up, we could be set up to start really dealing things up with regard to expanding the direct Salesforce. So it it's really that, I mean, was there a little bit of COVID you know, obviously COVID went through the roof in August maybe at the GI level, but I would attribute it mostly to this kind of transition from direct sales, sorry, from independent reps in a hybrid model of calling primarily on GIS to sort of laying the groundwork for the future model of direct of direct sales.

Got it. That's helpful. Crystal clear second piece I wanted to touch on was just of the revenue recognizing the quarter. Can you break out the contribution from Medicare, if any, versus whether or not it was commercial at the 50% level you referenced?

Yeah, let me answer that. So Dennis, why don't you go and answer that? Let me just make one comment which is, can solve. So the, the revenue we recognize is not reflective of the hacking and remember the way it's just set up and Dennis will answer, this is not one and the same with the billings received from, by the, by the laboratory. But I will answer a part of your question then I'll let, let Dennis answer it from a more of a financial perspective.

So all of the -- all of the claims that have been paid have been with -- have been from private payers, the claims that have been paid to the laboratory have been private payers. We have not either gotten a denial or for Medicare today. Some of that was related to the fact that it took a little while to get this sort of thing called the DEX code, which facilitates processing of Medicare claims and that's now in place, but we don't have really a picture either one way or the other with regard to either the denials or claims paid for Medicare. So all of the claims that have been paid to date have been outta network payments by private payers at typically that sort of 50% rate. But Dennis, do you want to maybe add a little bit of to that as it relates to sort of the actual recognized revenue and where that came from?

Yeah. The recognized revenue is actually agnostic in terms of the treatments, whether or not they're Medicare or private payer side. So you have both of these things going on. As Lishan explained the laboratory who is the billing arm and collecting has all been private payer 30 they've collected on. Our arrangement with them is a fixed price contract. They pay us a $100,000 a month presently their 30-day contract, so they can renew each month, depending upon what we view as the likelihood of their collections. It can't be tied directly to that, but there's an -- there's enough discussion understanding in terms of where the billing cycle is occurring on the laboratory side that orients our arrangement in the contract for the go forward months, but presently it's a $100,000 month, regardless of what they collect. We have visibility into what they're doing, what they're billing, how they're collecting out of network payments. And at least on said so far, none of them have been Medicare collections. None of them have been Medicare denials on the private payer side. Their collections have been predominantly out of network. And traditionally out of network is paid at 50% of list price, which we view that as encouraging and it continues to be that that approach at roughly half of what our 1938 payment rate is with CMS. So all of that is good. And for the foreseeable future until such time that we we have our own laboratory, own our own laboratory, we'll continue with that arrangement with Research DX and that will go up as their volume, their collections go up and it'll go up perspectively in terms of that financial arrangement. But once we own it, then we will take over that same position. We will bill directly to the private payers. We will bill directly to CMS. And we will deal with those rates that we -- that the payment rate has been determined at until such time that there are contracts in place with the private payer community going forward. So hopefully that was…

I'll just add that we'll emphasize one thing, which is that we really, not the I's are not dotted, the T's are not crossed yet, but we really see this trends and we're highly motivated to complete this transition, to loosen owning the CLIA Laboratory and transitioning to its own billing. And we really expect that to be a near term event barring some major unexpected problem. So this temporary set up is really temporary. We really expect it to be temporary.

Got it. Perfect. Thanks.

Your next question is coming from Mike Mattson from Needham and Company. Your live is now live.

So I guess first on this transition to the direct Salesforce, I know you guys kind of talked about that in the past, so it's not surprising, but just, is it now come completely done or is it still underway when do you expect it to be done? And then the second part of the question would be is the direct salesforce really purely focused on PCPs? Have you given up on the GI’s; are they calling on GI’s as well?

Yeah, that's worth, so the transition in terms of the structure is complete. So, we're no longer depending on independent sales reps that all of the sales activity right now is being done with Lucid employees, but we're absolutely not giving up on the GI’s. Let me just make it clear. So although the expansion has been, and what's new has been adding aggressively adding PCP focused reps. The reason for that is we need them to support the Lucid test center. So, as I mentioned in my prepared remarks, they're kind of joined at the hip and we've actually learned that. One of the things that we learned in Phoenix is that doesn't really matter whether you have a test center up and running, if you don't have reps, the PCP focused reps in the area that are actually banging on doors and driving referrals there. So we're now doing them simultaneously like we did in the three cities last week. And we'll do that the same in the Northwest. The way to understand the GI is as follows. We have in the trenches primary care sales, these are, as I mentioned, pharma, typically pharma diagnostic reps, who've spent their careers selling diagnostics or pharmaceuticals to primary care physicians. They know how to go door to door and do that. Above them, we have market development managers who are looking at the overall market in a particular region and working with their reps as well as that are primarily right now expanding at the PCP level, but still providing ongoing support and engagement with the gastroenterologist. Our messaging to the gastroenterologist has changed a little bit, which is that the way we see the gastroenterologist are, they're just another test center. They're GI test centers, just like we have…

Okay, great. That's very clear and very helpful. Thanks. and then I wanted to ask about the direct the consumer component. What's your plan for initial DTC advertising? Is it going to be in the areas, all the areas now where you have the test centers are going to start in Phoenix to see how it goes.

Yeah. And we're going to start in Phoenix. Yeah. So just like we did with the actual physical locations, we're going to start in Phoenix. So we have the Phoenix test centers. We actually have the media buys everything's ready. We've just been waiting for the up script Lucid telemedicine platform to be up and running. It looks great. It looks pretty slick. And that'll be ready very, very soon. And it's really just a matter of turning on the switch with regard to the media buys in the Phoenix area across all of all the various modalities and, we're going to do that in a deliberate way. We're going to look and see, what the return on investment are, with billboards versus, local TV, versus digital, versus print, versus other, and start titrating that until we really kind of have a pretty good sense as to how generally the population response to our advertising before we branch out and start doing it in the other test center cities. So for the other test center cities, that's going to be strictly primary care physician driven referrals until we sort of fine tune and hone the upcoming DTC program in Phoenix.

Okay. Got it. Thanks for the help.

Your next question is coming from Mark Massaro from BTIG. Your line is now live.

Hey guys. Lishan, thanks for taking the questions. Congratulations on the IPO. I guess my first question is on the commercial payer contracting side. I know this can take a long time. I think you talked about clinical utility data being important. Where are you in that process? And how long do you think it would take for you to complete building the evidence such that you could submit this to a large health plan?

Yeah, I think the quick answer to your question is that we'll have that data by the time. I don't believe that data actually right now is a rate limiting factor. The rate limiting factor is that they won't talk to you until you have submissions claims within their coverage population. Right, so we are collecting that data. We have obviously high volume users where we are going to them and getting them to get the endoscopy, the endoscopy results on patients who undergo under one Egar testing. So these are very straightforward. This is about a complex clinical trial. It's actually getting clinical utility there. It's fairly straightforward. The patient got a test, were they positive or negative if they were, and did they get an endoscopy and what does that endoscopy show? Right. so yeah, we're collecting that data now. And as I mentioned, we're just about ready to launch our own registry. And the goal of our registry is to try, it's not always easy, but to try to get just about every patient who undergoes eject is Egar testing to consent to us collecting their follow up data with their, with endoscopy, if indicated. So we'll have sort of a continuous stream of that data, but so it's not complex data to collect. And the collection of the data is not going to be the great limiting factor in our initiating conversations with Frank payers.

Okay. And then maybe just a two part is there currently a preference between digital or TV or billboards on the DTC? And then the second part is, you know, as I think about my model for next year obviously the test clinic is probably the biggest driver to adoption, for what it's worth, I'm modeling 14 clinics launched you know, that's a cumulative number. Just curious if you can just give me a sense for your comfort around a number, between 10 and 15 in terms of rolling out clinics across the country, or at least the Pacific Northwest.

Yeah. So let's answer the first question first. I'll differ to Dennis of that mostly, cause he has a lot more experience than DTC, but I think the answer is, is that we're not going in with any preconceived biases as to what works or what doesn't you just never know. Right? Some of these are elderly patients where digital may not be, you may not get to them through the digital. So we're using Phoenix as a laboratory to understand that. But Dennis, do you want to talk a little bit more about that?

Yeah, obviously Mark, this changes over time, so it's more important to have the feedback loop and as leash on said, we're going to launch with some initial bias both all of those media tools. And the key is to make sure that we have the feedback loop to understand which ones are working, meaning the call to action is getting folks to schedule a an appointment with telemedicine or calling their, their PCP and getting a script to get tested and that will change over time. More dollars will pour into those that are having higher media expense ratio that, you know, revenue dollars compared to the cost of the specific media in you can parse all of those media even further, for instance, if you're going to do TV which is part of our plans on a very limited scale, initially you got to figure out what times of the day, what channels what message is it, 15 seconds? Is it a longer commercial from a training standpoint? All of those things will take some time to optimize. But once it's completely figured out and that's why we're using the lower media cost markets to have that figured out so that when it does launch on a national basis, we have great data to give us confidence that dollar spent it's going to yield dollars of revenue. So it'll take time to figure out digital TV versus billboard and other means of approach. Radio has been very successful in the past for physician based kind of models. COVID changes that especially when drive times aren't as regular they have been. But we expect that to come back at some point and that could be a very, profitable pro for us, but you know, measuring that and spending where it works is going to be important and that's what we intend to do.

Great. And then on the tech center side. Yeah. So let's talk about that a little bit. Let me see if I can give you some details. I provide some color without directly projecting. So, so in Phoenix, for example, we have three test centers, right? And the reason we started right off the bat with three in Phoenix is because we knew, we knew we were going to launch the DTC program in Phoenix first. And we wanted to make sure we had full geographic coverage across the Phoenix metropolitan area so that we could because you can't always know where people are when they, when they receive the advertisement. So of green Phoenix, right? And the three cities we announced last week, we were starting with one in each because we don't anticipate doing direct to consumer there until we, you know, as I mentioned until we sort of get a sense of, of the model in, in Phoenix. And so those locations were basically those places were located basic, using the geography of hospitals and clinician practices and population demographics and so forth. We certainly expect to add one, add at least one additional one in Denver and salt lake after we've had some time to gear up there. And potentially maybe even a third in Denver the next we've, as I said, pretty clearly, we're going to the Southwest of the Northwest, that's three cities. You can probably guess what they are and that model will remain, will be similar to starting with one in each and then, and then expanding to up to two to three, depending on, on the population of the geography at the, that point and that that's not too far into next year, that's fairly early next year. We will be…

That's really helpful. Thanks so much.

Next question is coming from Ed Woo from Ascendiant Capital. Your line is now live.

Yeah. Congratulations on the IPO. My question is, has there been a significant shift in your product acquisition strategy? Should we expect fewer but much bigger acquisitions going forward?

So I did answer that. I think I threw a few lines, my preparing remarks on that, but again, as always thanks for giving me the opportunity to expand on something. So the answer is yes, I'm not saying -- I'm not necessarily fewer, but somewhat, maybe a different spectrum or a broader spectrum of potential targets, right? So, historically as I was sort of describing with related to NextFlo and so forth, we had limitations with regard to capital in terms of what we could -- what we could go out and pursue and we were mostly pursuing extremely early stage products that we could essentially get for no cash or stock consideration like we did with Lucid and Veris and invest in them and build value with them or organically over time. Right. Now that PAVmed has -- PAVmed was well financed prior to the Lucid IPO, but now that it's free from having to fund Lucid's operations, which accounted for the substantial portion of its cash burn, we have significantly, more capacity to do later stage deals, including those that are truly pre-commercial or companies of products that are already in the commercial realm and already revenue generating. So I think you've picked up on an important point, which is, so the answer to that is yes, whether the number will just depend on what we see in as I think as and our long-term and shareholders know, we get a lot of deal flow and we're constantly being contacted by companies by academic centers by physician innovators, the word is sort of out people, people reach out to us seeking to partner with us, which is a really fantastic position to be. And that includes, look the kind of company you're talking companies that are further along that have commercial products. We have active discussions in that realm too.

Great. Well, congratulations and good luck in the future.

Thank you. We've reached the end of the question-and-answer session. I'd like to turn the floor back over to management for any further or closing comment.

So, hey, thank you all for joining us today. This is obviously a lot with the two companies, and so thank you for your patience of going through all the information and for again, another really great round of questions. So as always, we look forward to keeping abreast of our progress with news releases and pure out calls like this one. The best way to keep up with PAVmed and Lucid news updates and events is to sign up for our email alerts on the PAVmed and Lucid Investor Relations websites, and to follow us on social media, Twitter, LinkedIn and YouTube, and the rest of our websites. You can also contact us at info@pavmed.com or info@lucidx.com or directly to Lisa at pavmed@lavoiehealthscience.com. And I would really encourage folks who really don't feel limited to contact us by email contact us by phone. And some of the alert is not always the easiest thing. Our corporate offices are still basic way remote. And so the timeline to get back to folks is more -- it can be more challenging. So quickest way to get in touch with us is info@pavmed or info@luciddx and we're always happy to hear from you. So thank you very much for your time. I appreciate it. And everybody have a good evening.

Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful evening. We thank you for your participation today.