Good day and welcome to the PAVmed Inc. First Quarter Business Update Call. Today’s conference is being recorded. And now at this time, I’d like to turn the conference over to Adrian Miller. Please go ahead sir.

Thanks, operator. Good afternoon to everyone. This is Adrian Miller, Vice President of Investor Relations at PAVmed. Thank you for participating in today's business update call. Joining me today on the call is Dr. Lishan Aklog, Chairman and Chief Executive Officer of PAVmed along with Dennis McGrath, President and Chief Financial Officer of PAVmed. The press release announcing our business update and financial results will be posted shortly on PAVmed's website. 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 SEC. For a list and descriptions 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, and subsequent Form 8-K filings. 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 in events, conditions or circumstances on which these expectations may be based, or that may affect the likelihood that actual results may differ from those contained in the forward-looking statements. With that, I'd like to turn the call over to Lishan Aklog. Dr. Aklog?

Hey. Thank you, Adrian and good afternoon, everyone and thank you for joining our quarterly update call. I am happy to report that PAVmed and its subsidiaries are making solid progress as they continue driving our long-term and mission to create a leading diversified medical technology company. Before proceeding, I would like to thank our long-term shareholders for your ongoing support and commitment. Our combined team has grown to over 100 employees and is singularly focused on growing the PAVmed enterprise, while enhancing long-term shareholder value. Our balance sheet remains strong providing us with the resources to execute this strategy. Given the current market volatility, we are particularly focused on deploying our capital as efficiently and effectively as possible to accomplish our strategic goals plus reserving and extending our cash runway. I’d like to start by providing an overview of our business and will then pass the baton over to Dennis who will provide our financial update before opening it up to questions. First some background on PAVmed. PAVmed is a diversified commercial stage medical technology company operating in the medical device, diagnostics and digital health sectors. Our mission is to utilize state-of-the-art technologies and the service to patients by providing innovative and disruptive products and solutions, which significantly improve or save lives while enhancing healthcare quality, efficiency and cost effectiveness. Our vision is to build a growing and profitable diversified medical technology leader across all the three major sectors. The PAVmed enterprise today consists of two majority owned subsidiaries Lucid Diagnostics and Veris Health, two business units, CarpX and NextFlo and an R&D pipeline of products at various stages of development. Lucid is a NASDAQ listed commercial stage cancer prevention medical diagnostics company, which markets EsoGuard and EsoCheck, the first and only commercial tools for widespread early detection of…

Thanks Lishan and good afternoon, everyone. Our preliminary and summary financial results for the three months ended March 31, 2022 were reported in our press release that was recently published. And we plan to file our quarterly report for PAVmed on Form 10-Q with the SEC on Monday, May 16 and at that time, it will be available at sec.gov and on the PAVmed website. Test performed and revenue recognition as we outlined during Lucid’s earnings call as a rule, EsoGuard test performed are recognized as GAAP revenue when cash is actually collected by the company. Also as previously mentioned, this will more than likely be true during the transition period of negotiating third-party private payer reimbursement contracts and related coverage policies. As I reported to you in previous quarters, for compliance purposes during this reimbursement transition period, we negotiated a short-term month-to-month fixed payment arrangement with the contract laboratory that was processing the EsoGuard assay and was performing the insurance company, billing and collections function. This commercial agreement became effective on August 1, 2021, and terminated concurrently with the opening of our own lab on February 25. We recognized $189,000 of revenue as part of the EsoGuard commercial agreement with ResearchDX for the partial period from January 1, 2022, through the end of the agreement on February 25. March represented a transition period that included hiring a new revenue cycle management provider. Hence, though we had a record number of EsoGuard test performed in the month of March, we did not bill for any of these tests during the month. Therefore, the recognized quarterly revenue of approximately $200,000 reflecting the pro rata amount of the previous commercial revenue agreement with ResearchDX or otherwise $100,000 for the month of January, $89,000 representing 25 of 28 days in February. As a…

[Operator instructions] We will take our first question from Ross Osborn with Cantor Fitzgerald. Please go ahead.

Hey everyone. Thanks for taking my question.

Hello.

Maybe starting off with off with the next-gen CarpX offering with integrated ultrasound. What do you think ultrasound will do to the adoption rate of CarpX? Is that hand expanding anymore patients to be able to benefit from it? Or does it simply enhances the traction of the device?

Yeah, I think, I would say, more of the latter. I think from what we have seen in the working prototypes to-date, that’s really sort of pretty spectacular and that while you are – if you recall the way CarpX works, it has a balloon that creates a space and pushes the critical structures away – to the ligaments and nerves and tension to ligament and positions the electrode on the ligament to cut it from the inside out and with the integrated intra minimal ultrasound you can see all that beautifully. So, it’s really to facilitate the procedural simplicity, to give the physicians confidence about where the anatomic structures and we think it will be a big step forward into enhancing the procedure.

Okay. Great. And then on PortIO, I think last time we saw maybe three patients had been implanted and it sounds like maybe a four at this point and to be – about, any feedback from the fourth patient?

Yeah, so far so good. Gone well, we are looking forward, as I said to increasing enrollment with a plan at all with – to have multiple sites and the IRB approval for the other three sites are now been completed and next month we will train those three sites and get them starting to enrollment.

Okay. Got it. And then, maybe a last one, just on operating expenses, can you just talk about specific to PAVmed, what you saw during the quarter and kind of how we should think about that for the rest of the year? That’d be great. Thank you.

Yes. Sure. Thanks. So, first quarter when you look at the stock-based compensation expense, that probably is consistency through the balance of the year. And the level of expenses that you see is probably a pretty good baseline for the year. We’ll be increasing some headcount, particularly at the Lucid level that will increase that, as Lishan pointed out on the direct-to-patient advertising for Lucid that would probably be a very limited expansion and really will be parallel what happens on the reimbursement front. The G&A is probably fairly stable between now and then at the end of the year and the R&D expense which is influenced by our clinical trials, probably as a good baseline as the year unfolds. We are making some changes to our clinical trials focusing on clinical utility because of the short-term wins with reimbursements and stretching out our PMA expenses over a longer horizon. So, you won’t see quite a spike that was initially anticipated maybe six, seven months ago when we were thinking about the year related to it.

Got it. Thanks taking my questions and congrats on the progress.

Thanks, Ross.

Thanks, Ross.

Thank you. We’ll take our next question from Anthony Vendetti with Maxim Group.

Good afternoon, Anthony. Hi. This is actually Jeremy online for Anthony.

Hey, Jeremy.

So, just two quick questions on the Lucid Test Centers. Just, I know, you have nine – the second stage of nine centers planned to open up at the end of this year. It’s already you know they have seven months left that or any of those centers opened or – and could you give us like what’s the time frame when you choose a center, how long does it take to get that up and running?

Great. Yeah, so, this is maybe a good opportunity to kind of put a reminder in that test center. When we talk about test center expansion, we are really talking about sales reps expansion primarily, right. The test centers are there really to support the sales reps and as I’ve mentioned on previous calls, the rate limiting is usually hiring reps and not actually finding a location and hiring a practitioner. That being said, what’s different about this stage is that we are doing all at once. In the first stage, we did it in three tranches, Phoenix and then two – then three centers, the two different at two different moments. We had now – we are branching out simultaneously across all nine states we have identified the actual price within the metropolitan – the actual metropolitan area and we have started the process of hiring reps and identifying. So we are – the ramp, in terms of sales reps that we have, we had said last call that we anticipate tripling by the end of the year at a fairly linear pace and we have the more reps this year and this year would be more like between now and the end of the year. So that should give you a reasonable trajectory. It’s not – again, it’s going to be looking at all of them at the same time, one other difference which I did mentioned on the Lucid call yesterday, which is that in some of the cities that we are targeting in this stage, we actually already have a presence with a market development manager that wraps go already calling on gastroenterologists. So, those will move more quickly. For example, we have the various sites that we are up in Orange County, in Southern California and then one of the locations we intend to open a test center. It’s actually within the physical domain of the Lucid DX Labs. And that also applies in other locales in Ohio and elsewhere where we have already have a fairly strong presence. So that looks already some of those pretty much.

Okay. Great. Thanks for that. And then, just, one last question regarding the test centers. I know you have rendered testing done in this quarter. Is there any internal goals do you have at prototype centers? Was that spread evenly over the test centers that are currently operational and what something if there is a test center – level where if a test center is not hitting that you sort of pull it upon?

Yeah, so let me again, there is some opportunity. I think trying to make it clear that the perception that the test centers are sort of like stores, retail outlets where our facilities where that are driving the business I think is something that we need to sort of work on getting people on the standalone a bit better, right. The test center is just a question, that allows the sales reps to able to call primary care physicians and drive patients there. So, there really isn’t when we actually start getting more traction and the team expands and we are able to provide more additional metrics, the metrics are going to be traditional metrics along performance of the sales team, not really test center focused, right. I don’t know if that makes sense. So the answer to your question is that, we do track and we do assess how our entire sales team is doing and how good it’s quite rigorous and data-driven and we look for improvements and we look to make sure that people are being productive in the regions that we are targeting. We don’t expect to sort of move away from particular geographies for not moving our numbers in that geographies and we’ll look to how to build or ways to improve sales engagement in that territory. So, again, I just – hopefully that makes sense better the launch between understanding that the center and really pass the vehicle where the procedure is performed then the real action is really happening at the in the physician office as sales reps calling on physicians and trying to drive for us.

Understand. Okay. Thank you. I’ll hop back in the queue.

Yeah, thanks a lot.

[Operator Instructions] We’ll hear next from Ed Woo with Ascendiant Capital.

Yeah. Congratulations on the quarter. With a very strong balance sheet and obviously, a lot of volatility in the capital markets out there, are you seeing more opportunities of companies where products that might be interested in your technology there are interesting for you guys and evaluations come down significantly in the past couple months?

We are – we do have an active business development process. One of the things I didn’t get a chance to mention is that we hired a very accomplished Vice President on Business Strategy and Development who will help – be able to help sort of focus our activities on the BD side of things as well as product strategy. And I wouldn’t say that necessarily we are at the point on any of these where we can – we certainly would expect given the volatility of the evaluations would be attractive. But we are not really – none of them are at this stage where we are really at – able to say it. Yeah, but that’s a fair expectation. We are very excited about opportunities that we are starting to see in areas that are synergistic with our current work, particularly in sort of smart device technologies that are potentially synergistic with our efforts on the digital health side. So, stay tuned. We really are excited about the opportunity that are in front of us.

Great. Thanks for answering my question. Wish you guys good luck. Thank you.

Okay. Thanks, Ed.

Thanks, Ed.

Thank you. And that does conclude today’s question-and-answer session. I would like to turn the conference back over to Dr. Aklog for any additional or closing remarks.

All right. Thanks, operator. And hey, thank you all for joining us today and for, as always great questions. We look forward to keeping you abreast of our progress through news release and periodic calls such as this one. As always the reminder, the best way to keep up with PAVmed news, updates and events is to sign up for our email alert on our website – the investor relations website and to follow us on social media on Twitter link and YouTube and the rest of our websites.. Also feel free to contact our VP of Investor Relations Adrian Miller at adrianmiller@pavmed.com questions. So, again, thank you all again and have a great rest of the evening.

Thank you. And that concludes today's conference. We thank you all for your participation. You can now disconnect.