Lucid Diagnostics Inc. Q3 FY2024 earnings call

Commercial Execution Highlights - Third quarter revenue was $1.2 million, a 20% QoQ increase and a record. Third quarter test volume was 2,787; fourth quarter started well with record test volume in October. Commercial ramp at mid-throttle, with critical mass in testing volume for revenue cycle management and medical policy efforts. Expanded direct contracting initiative with multiple programs, including a large Check Your Food Tube event with upfront contracted payment. Tested over 7,000 firefighters with EsoGuard. ### Key Strategic Accomplishments - EsoGuard BE-1 clinical validation study accepted for peer-reviewed publication, completing evidence package for Medicare coverage submission. Peer-reviewed publication of analytical validation study of EsoGuard. Received notice of allowance for a key patent underlying EsoGuard. Held three productive in-person meetings with CMS Medicare Administrative Contractor MolDx program regarding EsoGuard coverage submission. ### Product Overview - Lucid is a commercial stage cancer prevention solution company with products EsoCheck and EsoGuard. EsoGuard is the first and only commercially available test for widespread screening to prevent esophageal cancer deaths. It has high sensitivity in detecting cancer, precancerous conditions, etc., with a 99% negative predictive value and 32% positive predictive value. ### Commercial Strategies - Focused on three revenue-generating programs: fully-contracted CYFT pre-cancer testing events, concierge medicine, and employer markets. For CYFT, focusing on securing agreements with self-insured entities. Hired a new Senior Director of Strategic Partnerships for Concierge and Executive Medicine with experience from GRAIL. Hired a new Senior Director of Employer Partnerships with experience from GRAIL. ### Financial Highlights - Cash at quarter end September 30 was $14.5 million. Exercising right to redeem convertible debt, entered into new convertible note purchase agreements. Quarterly burn rate was $10.4 million. Cash at point of 10-Q cutoff was $21.75 million of subscription agreements, expecting to increase cash by about $13.2 million net of payoff.

In the third quarter, revenue was $1.2 million, a about 20% quarter-on-quarter increase and a record quarterly revenue. Third quarter test volume was 2,787. The fourth quarter started well with a record test volume in October. The gross margin per EsoGuard test remains over 90%. EsoGuard is a key product contributing significantly to revenue.

Cash Runway - Expect to increase cash runway by more than an additional quarter with new financing, getting closer to Medicare approval. ### Fourth Quarter Outlook - First six, seven weeks of the fourth quarter are very encouraging in terms of results so far. CYFT pipeline is robust, with teams having hands full over the period except for December holidays, and will update as going forward. ### Medicare Coverage - Expected to file data and request for conversion to a coverage local coverage determination in the very near future, with optimism it could be a first half event next year.

Forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from statements made. Factors are described in the disclaimer and SEC filings, such as in Part 1, Item 1A Risk Factors in the most recent annual report on Form 10-K and subsequent updates.

Q: Kyle Mikson asked about the sequential decline in test volume in the third quarter and if the fourth quarter would be a record volume quarter.

A: Dennis McGrath said July had fewer large events due to summer, but October was double July's tests, and first six, seven weeks of fourth quarter are encouraging. Lishan Aklog said pipeline is robust and it's a stable to modest increase.

Q: Mark Massaro asked about the timing of EsoGuard BE-1 study publication and submission to MolDX, and concierge medicine pricing.

A: Lishan Aklog said the study is a formality and they are poised to file data and request for reconsideration of LCD in coming days. Regarding concierge medicine pricing, it's a negotiation starting from $2500 list price.

Q: Anthony Vendetti asked about the time line for submitting data package for Medicare coverage and concierge pricing.

A: Lishan Aklog said no assurances on time but very optimistic, and concierge pricing is a negotiation starting from list price.

Q: Mike Matson asked about marketing strategy change with Medicare coverage and data sufficiency for private insurers.

A: Lishan Aklog said Medicare approval is a gateway to commercial coverage, and data is sufficient for both Medicare and private insurers, with Medicare coverage influencing private insurer decisions.

Q: Ed Woo asked about the geographic dispersion of the test.

A: Lishan Aklog said there are areas with traction, strong in California, Texas, Florida, and considering states with biomarker legislation.