Lucid Diagnostics Inc. 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-40901 LUCID DIAGNOSTICS INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 82-5488042 (State or Other Jurisdiction of (IRS Employer Incorporation or Organization) Identification No.) 360 Madison Avenue 25th Floor New York , NY 10017 (Address of Principal Executive Offices) (Zip Code) (917) 813-1828 (Registrant’s Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Exchange Act: Title of each Class Trading Symbol(s) Name of each Exchange on which Registered Common Stock, $0.001 par value per share LUCD The NASDAQ Stock Market LLC Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer” , “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large Accelerated filer ☐ Accelerated filed ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☒ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 13(c) of the Exchange Act ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ As of September 30, 2025 and November 7, 2025 there were 137,508,926 and 137,683,002 , respectively, shares of the registrant’s Common Stock, par value $ 0.001 per share, issued and outstanding (with such number of shares inclusive of shares of common stock underlying unvested restricted stock awards granted under the Lucid Diagnostics Inc. 2018 Long-Term Incentive Equity Plan as of such date). TABLE OF CONTENTS Part I - Financial Information Page Item 1. Financial Statements Condensed Consolidated Balance Sheets (unaudited) as of September 30, 2025 and December 31, 2024 1 Condensed Consolidated Statements of Operations (unaudited) for the three and nine months ended September 30, 2025 and 2024 2 Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) (unaudited) for the three and nine months ended September 30, 2025 and 2024 3 Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2025 and 2024 5 Notes to Unaudited Condensed Consolidated Financial Statements 6 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 21 Item 4. Controls and Procedures 29 Part II - Other Information Item 1. Legal Proceedings 30 Item 5. Other Information 30 Item 6. Exhibits 30 Signature 31 Exhibit Index 32 i Part I - Financial Information Item 1. Financial Statements LUCID DIAGNOSTICS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands except number of shares and per share data - unaudited) September 30, 2025 December 31, 2024 Assets: Current assets: Cash $ 47,332 $ 22,358 Accounts receivable 550 45 Inventory 486 341 Prepaid expenses, deposits, and other current assets 1,474 2,404 Total current assets 49,842 25,148 Fixed assets, net 862 1,062 Operating lease right-of-use assets 2,021 2,637 Intangible assets, net 421 736 Other assets 52 1,132 Total assets $ 53,198 $ 30,715 Liabilities, Preferred Stock and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable $ 751 $ 1,241 Accrued expenses and other current liabilities 2,277 2,829 Operating lease liabilities, current portion 878 854 Senior Secured Convertible Notes - at fair value 22,300 18,600 Total current liabilities 26,206 23,524 Operating lease liabilities, less current portion 1,157 1,800 Total liabilities 27,363 25,324 Commitments and contingencies (Note 8) - - Stockholders’ Equity (Deficit): Preferred stock, $ 0.001 par value, 20,000,000 shares authorized; Series B and Series B-1 Convertible Preferred Stock, issued and outstanding 54,274 and 54,419 as of September 30, 2025 and December 31, 2024, respectively 54,274 54,419 Common stock, $ 0.001 par value, 300,000,000 shares authorized as of September 30, 2025 and December 31, 2024, respectively; 130,924,686 and 63,071,950 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 131 63 Additional paid-in capital 229,499 154,675 Accumulated deficit ( 258,069 ) ( 203,766 ) Total Stockholders’ Equity (Deficit) 25,835 5,391 Total Liabilities and Stockholders’ Equity (Deficit) $ 53,198 $ 30,715 See accompanying notes to the unaudited condensed consolidated financial statements. 1 LUCID DIAGNOSTICS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except number of shares and per share data - unaudited) 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $ 1,211 $ 1,172 $ 3,202 $ 3,149 Operating expenses: Cost of revenue 1,697 1,684 4,810 4,954 Sales and marketing 4,291 4,056 12,367 12,459 General and administrative 5,605 5,355 17,383 14,292 Amortization of acquired intangible assets 105 105 316 582 Research and development 1,272 1,666 3,955 4,539 Total operating expenses 12,970 12,866 38,831 36,826 Operating loss ( 11,759 ) ( 11,694 ) ( 35,629 ) ( 33,677 ) Other income (expense): Interest income 101 81 276 256 Interest expense ( 2 ) ( 1 ) ( 16 ) ( 19 ) Change in fair value - Senior Secured Convertible Note 2,341 ( 322 ) ( 5,297 ) 568 Debt extinguishments loss - Senior Secured Convertible Note — ( 435 ) — ( 1,116 ) Equity issuance cost extinguishment ( 1,078 ) — ( 1,078 ) — Other income (expense), net 1,362 ( 677 ) ( 6,115 ) ( 311 ) Loss before provision for income tax ( 10,397 ) ( 12,371 ) ( 41,744 ) ( 33,988 ) Provision for income taxes — — — — Net loss attributable to Lucid Diagnostics Inc. $ ( 10,397 ) $ ( 12,371 ) $ ( 41,744 ) $ ( 33,988 ) Less: Deemed dividend on Series A and Series A-1 Convertible Preferred Stock — — — ( 7,496 ) Less: Series B and Series B-1 Convertible Preferred Stock dividends earned — — ( 12,559 ) — Net loss attributable to Lucid Diagnostics Inc. common stockholders $ ( 10,397 ) $ ( 12,371 ) $ ( 54,303 ) $ ( 41,484 ) Net loss per share attributable to Lucid Diagnostics Inc. common stockholders - basic and diluted $ ( 0.10 ) $ ( 0.25 ) $ ( 0.59 ) $ ( 0.87 ) Weighted average common shares outstanding, basic and diluted 108,176,088 50,374,146 92,131,461 47,876,015 See accompanying notes to the unaudited condensed consolidated financial statements. 2 LUCID DIAGNOSTICS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) for the THREE AND NINE MONTHS ENDED September 30, 2025 (in thousands except number of shares and per share data - unaudited) Shares Amount Shares Amount Capital Deficit Total Preferred Stock Common Stock Additional Paid-In Accumulated Shares Amount Shares Amount Capital Deficit Total Balance as of June 30, 2025 54,419 $ 54,419 101,826,788 $ 102 $ 201,013 $ ( 247,672 ) $ 7,862 Exercise - stock options - Lucid Diagnostics Inc. 2018 Equity Plan — — 2,121 — 2 — 2 Stock-based compensation - Lucid Diagnostics Inc. 2018 Equity Plan — — — — 1,135 — 1,135 Stock-based compensation - PAVmed Inc. 2014 Equity Plan — — — — 17 — 17 Purchase - Employee Stock Purchase Plan — — 152,408 — 131 — 131 Issuance - Interest payment paid in stock — — 64,346 — 75 — 75 Issue common stock - vendor service agreement — — 12,500 — 13 — 13 Issuance - Confidentially Marketed Public Offering, net of fees — — 28,750,000 29 26,968 — 26,997 Conversions - Series B Preferred Stock ( 145 ) ( 145 ) 116,523 — 145 — — Net loss — — — — — ( 10,397 ) ( 10,397 ) Balance as of September 30, 2025 54,274 $ 54,274 130,924,686 $ 131 $ 229,499 $ ( 258,069 ) $ 25,835 Preferred Stock Common Stock Additional Paid-In Accumulated Shares Amount Shares Amount Capital Deficit Total Balance as of December 31, 2024 54,419 $ 54,419 63,071,950 $ 63 $ 154,675 $ ( 203,766 ) $ 5,391 Exercise - stock options - Lucid Diagnostics Inc. 2018 Equity Plan — — 13,012 — 15 — 15 Stock-based compensation - Lucid Diagnostics Inc. 2018 Equity Plan — — — — 3,227 — 3,227 Stock-based compensation - PAVmed Inc. 2014 Equity Plan — — — — 99 — 99 Issuance - At-The-Market Facility, net of deferred financing charges — — 215,421 — 274 — 274 Purchase - Employee Stock Purchase Plan — — 355,459 — 272 — 272 Issuance - Interest payment paid in stock — — 154,068 1 181 — 182 Issuance - Registered Direct Offering, net of fees — — 13,939,330 14 14,921 — 14,935 Issuance - Confidentially Marketed Public Offering, net of fees — — 43,125,000 43 43,128 — 43,171 Issuance - Dividend on Series B and Series B-1 Preferred Stock — — 9,921,423 10 12,549 ( 12,559 ) — Issue common stock - vendor service agreement — — 12,500 13 — 13 Conversions - Series B Preferred Stock ( 145 ) ( 145 ) 116,523 — 145 — — Net loss — — — — — ( 41,744 ) ( 41,744 ) Balance as of September 30, 2025 54,274 $ 54,274 130,924,686 $ 131 $ 229,499 $ ( 258,069 ) $ 25,835 See accompanying notes to the unaudited condensed consolidated financial statements. 3 LUCID DIAGNOSTICS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) for the THREE AND NINE MONTHS ENDED September 30, 2024 (in thousands except number of shares and per share data - unaudited) Preferred Stock Common Stock Additional Paid-In Accumulated Shares Amount Shares Amount Capital Deficit Total Balance as of June 30, 2024 55,919 $ 55,919 49,344,945 $ 49 $ 139,865 $ ( 179,854 ) $ 15,979 Stock-based compensation - Lucid Diagnostics Inc. — — — — 1,185 — 1,185 Stock-based compensation - PAVmed Inc. — — — — 43 — 43 Conversions - Senior Secured Convertible Note — — 2,116,717 3 1,755 — 1,758 Purchase - Employee Stock Purchase Plan — — 136,056 — 94 — 94 Transfer of intellectual property from PAVmed Inc. — — — — ( 350 ) — ( 350 ) Net loss — — — — — ( 12,371 ) ( 12,371 ) Balance as of September 30, 2024 55,919 $ 55,919 51,597,718 $ 52 $ 142,592 $ ( 192,225 ) $ 6,338 Preferred Stock Common Stock Additional Paid-In Accumulated Shares Amount Shares Amount Capital Deficit Total Balance as of December 31, 2023 18,625 $ 18,625 42,329,864 $ 42 $ 129,763 $ ( 150,741 ) $ ( 2,311 ) Balance 18,625 $ 18,625 42,329,864 $ 42 $ 129,763 $ ( 150,741 ) $ ( 2,311 ) Exercise - stock options - Lucid Diagnostics Inc. 2018 Equity Plan — — 3,333 — 4 — 4 Stock-based compensation - Lucid Diagnostics Inc. 2018 Equity Plan — — — — 3,034 — 3,034 Stock-based compensation - PAVmed Inc. 2014 Equity Plan — — — — 329 — 329 Vest - restricted stock awards — — 26,912 — — — — Conversions - Senior Secured Convertible Note — — 4,777,898 6 4,293 — 4,299 Purchase - Employee Stock Purchase Plan — — 647,940 1 446 — 447 Issuance - Series A-1 Preferred Stock 5,670 5,670 — — — — 5,670 Exchange - Series A and Series A-1 Preferred Stock ( 24,295 ) ( 24,295 ) — — — ( 7,496 ) ( 31,791 ) Issuance through exchange - Series B Preferred Stock 31,790 31,790 — — — — 31,790 Issuance through sale- Series B and Series B-1 Preferred Stock 24,129 24,129 — — — — 24,129 Issuance - Due To: PAVmed Inc. Settlement in Common Stock — — 3,331,771 3 4,672 — 4,675 Issue common stock - vendor service agreement — — 480,000 — 401 — 401 Transfer of intellectual property from PAVmed Inc. — — — — ( 350 ) — ( 350 ) Net loss — — — — — ( 33,988 ) ( 33,988 ) Balance as of September 30, 2024 55,919 $ 55,919 51,597,718 $ 52 $ 142,592 $ ( 192,225 ) $ 6,338 Balance 55,919 $ 55,919 51,597,718 $ 52 $ 142,592 $ ( 192,225 ) $ 6,338 See accompanying notes to the unaudited condensed consolidated financial statements. 4 LUCID DIAGNOSTICS INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands except number of shares and per share data - unaudited) 2025 2024 Nine Months Ended September 30, 2025 2024 Cash flows from operating activities Net loss $ ( 41,744 ) $ ( 33,988 ) Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization expense 663 945 Stock-based compensation - Lucid Diagnostics Inc. 2018 Equity Plan 3,227 3,034 Stock-based compensation - PAVmed Inc. 2014 Equity Plan 99 329 Change in fair value - Senior Secured Convertible Note 5,297 ( 568 ) Debt extinguishment loss - Senior Secured Convertible Note — 1,116 Equity issuance cost extinguishment 1,078 — Amortization of common stock payment for vendor service agreement 234 248 Changes in operating assets and liabilities: Accounts receivable ( 505 ) 7 Prepaid expenses and other current assets ( 1,225 ) 1,065 Accounts payable ( 490 ) ( 10 ) Accrued expenses and other current liabilities ( 553 ) ( 1,836 ) Due To: PAVmed Inc. - operating expenses, employee related costs, MSA Fee 12 ( 4,611 ) Net cash flows used in operating activities ( 33,907 ) ( 34,269 ) Cash flows from investing activities Purchase of equipment ( 146 ) ( 37 ) Purchase of intellectual property from PAVmed Inc. — ( 350 ) Net cash flows used in investing activities ( 146 ) ( 387 ) Cash flows from financing activities Proceeds – issue of preferred stock — 29,798 Proceeds – issue of common stock - Registered Direct Offering, net of fees 14,935 — Proceeds – issue of common stock - Confidentially Marketed Public Offering, net of fees 43,171 — Proceeds – issue of Senior Secured Convertible Notes 360 — Proceeds – issue of common stock – At-The-Market Facility 274 — Proceeds – exercise of stock options 15 4 Proceeds – issue common stock – Employee Stock Purchase Plan 272 447 Net cash flows provided by financing activities 59,027 30,249 Net increase in cash 24,974 ( 4,407 ) Cash, beginning of period 22,358 18,896 Cash, end of period $ 47,332 $ 14,489 See accompanying notes to the unaudited condensed consolidated financial statements. 5 LUCID DIAGNOSTICS INC. and SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (amounts in these accompanying notes are presented in thousands, except number of shares and per-share amounts.) Note 1 — The Company Description of the Business Lucid Diagnostics Inc. is a commercial-stage, cancer prevention medical diagnostics company. Lucid is focused on the millions of patients with gastroesophageal reflux disease (GERD), also known as chronic heartburn, who are at risk of developing esophageal precancer and cancer. EsoGuard is a bisulfite-converted next-generation sequencing (NGS) DNA assay performed on surface esophageal cells collected with EsoCheck. Cell samples, including those collected with EsoCheck, as discussed below, are sent to our laboratory, for testing and analyses using our proprietary EsoGuard NGS DNA assay. EsoCheck is an FDA 510(k) cleared and CE Mark certified noninvasive swallowable balloon capsule catheter device designed for in-office targeted sampling of surface esophageal cells in a less than two minute long office procedure. It consists of a vitamin sized semi-rigid plastic capsule tethered to a thin silicone catheter from which a soft inflatable silicone balloon with textured ridges emerges to gently swab surface esophageal cells. When suction is applied, the balloon and sampled cells are pulled into the capsule, protecting them from contamination and dilution by cells outside of the targeted region during device withdrawal. EsoGuard and EsoCheck are based on patented technology licensed by Lucid from Case Western Reserve University (“CWRU”). EsoGuard and EsoCheck have been developed to provide an accurate, non-invasive, patient-friendly test for the early detection of EAC and Barrett’s Esophagus (“BE”), including dysplastic BE and related precursors to EAC in patients with chronic GERD. Note 2 — Liquidity and Going Concern The Company’s management is required to assess an entity’s ability to continue as a going concern within one year of the date of the financial statements being issued. In each reporting period, including interim periods, an entity is required to assess conditions known and reasonably knowable as of the financial statement issuance date to determine whether it is probable an entity will not meet its financial obligations within one year from the financial statement issuance date. Substantial doubt about an entity’s ability to continue as a going concern exists when conditions and events, considered in the aggregate, indicate it is probable the entity will be unable to meet its financial obligations as they become due within one year after the date the financial statements are issued. The Company has financed its operations principally through public and private issuances of its common stock, preferred stock, and debt. The Company is subject to all of the risks and uncertainties typically faced by medical device and diagnostic companies that devote substantially all of their efforts to the commercialization of their initial product and services and ongoing research and development activities and conducting clinical trials. The Company generated $ 1.2 million and $ 3.2 million of revenue for the three and nine months ended September 30, 2025, respectively, however the Company expects to continue to experience recurring losses and to generate negative cash flows from operating activities in the near future. The Company incurred a net loss attributable to its common stockholders of approximately $ 54.3 million and had net cash flows used in operating activities of approximately $ 33.9 million for the nine months ended September 30, 2025. As of September 30, 2025, the Company had working capital of approximately $ 23.6 million, with such working capital inclusive of the 2024 Convertible Notes (as defined below) classified as a current liability of approximately $ 22.3 million and approximately $ 47.3 million of cash. The Company’s ability to continue operations 12 months beyond the issuance of the financial statements, will depend upon generating substantial revenue that is conditioned upon obtaining positive third-party reimbursement coverage for its EsoGuard Esophageal DNA Test from both government and private health insurance providers, and increasing revenue through cash pay and contracted revenue programs that target, among others, concierge medicine practices and self-insured employers, and on its ability to raise additional capital through various potential sources including equity and/or debt financings or refinancing existing debt obligations. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the accompanying unaudited condensed consolidated financial statements are issued. 6 Note 3 — Summary of Significant Accounting Policies Significant Accounting Policies The Company’s significant accounting policies are as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on March 24, 2025, except as otherwise noted herein below. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), and applicable rules and regulations of the United States Securities and Exchange Commission (“SEC”), and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company is a non-consolidated subsidiary of PAVmed, which has the ability to exercise significant influence over the Company. The Company manages its operations as a single operating segment for the purposes of assessing performance and making operating decisions. As permitted under SEC rules, certain footnotes or other financial information normally required by U.S. GAAP have been condensed or omitted. The balance sheet as of December 31, 2024 has been derived from audited consolidated financial statements at such date. The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the Company’s annual consolidated financial statements, and in the opinion of management, include all adjustments, consisting only of routine recurring adjustments, necessary for a fair statement of the Company’s unaudited condensed consolidated financial information. The unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the consolidated results to be expected for the year ending December 31, 2025 or for any other interim period or for any other future periods. The accompanying unaudited condensed consolidated financial statements and related unaudited condensed consolidated financial information should be read in conjunction with the Company’s audited consolidated financial statements and related notes thereto as of and for the year ended December 31, 2024 included in the Company’s Annual Report on Form 10-K as filed with the SEC on March 24, 2025. All amounts in the accompanying unaudited condensed consolidated financial statements and the notes thereto are presented in thousands of dollars, if not otherwise noted as being presented in millions of dollars, except for shares and per share amounts. Use of Estimates In preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and the determination of corresponding carrying value reserves, if any, and liabilities and the disclosure of contingent losses, as of the date of the unaudited condensed consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Significant estimates in these unaudited condensed consolidated financial statements include those related to the estimated fair value of debt obligations, stock-based equity awards and intangible assets. Other significant estimates include the estimated incremental borrowing rate, the provision or benefit for income taxes and the corresponding valuation allowance on deferred tax assets. Additionally, management’s assessment of the Company’s ability to continue as a going concern involves the estimation of the amount and timing of future cash inflows and outflows. On an ongoing basis, the Company evaluates its estimates and assumptions. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable. Due to inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in these estimates. Revenue Recognition Revenues are recognized when the satisfaction of the performance obligation occurs, in an amount that reflects the consideration the Company expects to collect in exchange for those services. The Company’s revenue is primarily generated by its laboratory testing services utilizing its EsoGuard Esophageal DNA tests. The services are completed upon release of a patient’s test result to the ordering healthcare provider. Revenue recognized is inclusive of both variable consideration in connection with an individual patient’s third-party insurance coverage policy and fixed consideration in connection with a contracted services arrangement with an unrelated third party legal entity. To determine revenue recognition for the arrangements that the Company determines are within the scope of ASC 606, Revenue from Contracts with Customers , the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. 7 Note 3 — Summary of Significant Accounting Policies - continued The key aspects considered by the Company include the following: Contracts —The Company’s customer is primarily the patient, but the Company does not enter into a formal reimbursement contract with a patient. The Company establishes a contract with a patient in accordance with other customary business practices, which is the point in time an order is received from a provider and a patient specimen has been returned to the laboratory for testing. Payment terms are a function of a patient’s existing insurance benefits, including the impact of coverage decisions with Center for Medicare & Medicaid Services (“CMS”) and applicable reimbursement contracts established between the Company and payers. The Company’s consideration can be deemed variable or fixed depending on the structure of specific payer contracts, and the Company considers collection of such consideration to be probable to the extent that it is unconstrained. Performance obligations —A performance obligation is a promise in a contract to transfer a distinct good or service (or a bundle of goods or services) to the customer. The Company’s contracts have a single performance obligation, which is satisfied upon rendering of services, which culminates in the release of a patient’s test result to the ordering healthcare provider. The Company elects the practical expedient related to the disclosure of unsatisfied performance obligations, as the duration of time between providing testing supplies, the receipt of a sample, and the release of a test result to the ordering healthcare provider is far less than one year. Transaction price —The transaction price is the amount of consideration that the Company expects to collect in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties (for example, some sales taxes). The consideration expected to be collected from a contract with a customer may include fixed amounts, variable amounts, or both. If the consideration derived from the contracts is deemed to be variable, the Company estimates the amount of consideration to which it will be entitled in exchange for the promised goods or services. The Company limits the amount of variable consideration included in the transaction price to the unconstrained portion of such consideration. In other words, the Company recognizes revenue up to the amount of variable consideration that is not subject to a significant reversal until additional information is obtained or the uncertainty associated with the additional payments or refunds is subsequently resolved. When the Company does not have significant historical experience or that experience has limited predictive value, the constraint over estimates of variable consideration may result in no revenue being recognized upon delivery of patient EsoGuard test results to the ordering healthcare provider. As such, the Company recognizes revenue up to the amount of variable consideration not subject to a significant reversal until additional information is obtained or the uncertainty associated with additional payments or refunds, if any, is subsequently resolved. Differences between original estimates and subsequent revisions, including final settlements, represent changes in estimated expected variable consideration, with the change in estimate recognized in the period of such revised estimate. With respect to a contracted service arrangement, the fixed consideration revenue is recognized on an as-billed basis upon delivery of the laboratory test report with realization of such fixed consideration deemed probable based upon actual historical experience. Allocate transaction price —The transaction price is allocated entirely to the performance obligation contained within the contract with a customer on the basis of the relative standalone selling prices of each distinct good or service. Practical Expedients —The Company does not adjust the transaction price for the effects of a significant financing component, as at contract inception, the Company expects the collection cycle to be one year or less. Fair Value Option (“FVO”) Election Under a Securities Purchase Agreement dated November 12, 2024, the Company issued Senior Secured Convertible Notes dated November 22, 2024, referred to herein as the “2024 Convertible Notes”, which are accounted under the “fair value option election” as discussed below. Under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815, Derivative and Hedging , (“ASC 815”), a financial instrument containing embedded features and/or options may be required to be bifurcated from the financial instrument host and recognized as separate derivative asset or liability, with the bifurcated derivative asset or liability initially measured at estimated fair value as of the transaction issue date and then subsequently remeasured at estimated fair value as of each reporting period balance sheet date. Alternatively, FASB ASC Topic 825, Financial Instruments , (“ASC 825”) provides for the “fair value option” (“FVO”) election. In this regard, ASC 825-10-15-4 provides for the FVO election (to the extent not otherwise prohibited by ASC 825-10-15-5) to be afforded to financial instruments, wherein the financial instrument is initially measured at estimated fair value as of the transaction issue date and then subsequently remeasured at estimated fair value as of each reporting period balance sheet date, with changes in the estimated fair value recognized as other income (expense) in the statement of operations. The estimated fair value adjustment of the 2024 Convertible Note, including the component related to accrued interest, is presented in a single line item within other income (expense) in the accompanying unaudited condensed consolidated statement of operations (as provided for by ASC 825-10-50-30(b)). Further, as required by ASC 825-10-45-5, to the extent a portion of the fair value adjustment is attributed to a change in the instrument-specific credit risk, such portion would be recognized as a component of other comprehensive income (“OCI”) (for which there was no such adjustment with respect to the 2024 Convertible Notes). See Note 9, Financial Instruments Fair Value Measurements , with respect to the FVO election; and Note 10, Debt , for a discussion of the 2024 Convertible Notes. 8 Note 3 — Summary of Significant Accounting Policies - continued Recently Adopted Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures (“ASU 2023-09”), which is intended to enhance the transparency and decision usefulness of income tax disclosures. The amendments in ASU 2023-09 provide for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. ASU 2023-09 is effective for the Company prospectively to all annual periods beginning after December 15, 2024. Early adoption is permitted. The guidance was adopted by the Company effective January 1, 2025, on a prospective basis. The Company does not expect the standard to have a significant impact on its consolidated financial statements in the 2025 Annual Report on Form 10-K. Recent Accounting Standards Updates Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update enhances financial statement disclosures by requiring public business entities to disclose specified information about certain costs and expenses including the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, and (d) intangible asset amortization included in each relevant expense caption. The update also requires disclosure of certain amounts that are already required to be disclosed under current GAAP, disclosure of a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively, and disclosure of the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The amendments in this update may be applied either prospectively or retrospectively and are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its unaudited condensed consolidated financial statements. In October 2023, the FASB issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative. This update modifies the disclosure or presentation requirements of a variety of topics in the Accounting Standards Codification to conform with certain SEC amendments in Release No. 33-10532, Disclosure Update and Simplification. The amendments in this update should be applied prospectively, and the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or S-K becomes effective. However, if the SEC has not removed the related disclosure from its regulations by June 30, 2027, the amendments will be removed from the Codification and not become effective. Early adoption is prohibited. The Company is currently evaluating the potential impact this update will have on its unaudited condensed consolidated financial statements and disclosures. Note 4 — Revenue from Contracts with Customers Revenue Recognized In the three and nine months ended September 30, 2025, the Company recognized revenue of $ 1,211 and $ 3,202 , respectively, resulting from the delivery of patient EsoGuard test results. Revenue recognized from customer contracts deemed to include a variable consideration transaction price is limited to the unconstrained portion of the variable consideration. The Company’s revenue for the three and nine months ended September 30, 2024 was $ 1,172 and $ 3,149 , respectively, resulting from the delivery of patient EsoGuard test results. Cost of Revenue The cost of revenues principally includes the costs related to the Company’s laboratory operations (excluding estimated costs associated with research activities), the costs related to the EsoCheck cell collection device, cell sample mailing kits and license royalties. In the three and nine months ended September 30, 2025, the cost of revenue was $ 1,697 and $ 4,810 , respectively, primarily related to costs for our laboratory operations and EsoCheck device supplies. The Company’s cost of revenue for the three and nine months ended September 30, 2024 was $ 1,684 and $ 4,954 , respectively, primarily related to costs for our laboratory operations and EsoCheck device supplies. 9 Note 5 — Related Party Transactions The aggregate Due To: PAVmed Inc. for the period indicated is summarized as follows: The aggregate Due To: PAVmed Inc MSA Fees Employee-Related Costs PAVmed Inc. OBO Payments Total Balance - December 31, 2024 $ — $ — $ — $ — MSA fees 9,450 — — 9,450 ERC - Benefits — 1,377 — 1,377 On Behalf Of (OBO) activities — — 446 446 Cash payments to PAVmed Inc. ( 9,450 ) ( 1,377 ) ( 446 ) ( 11,273 ) Balance - September 30, 2025 $ — $ — $ — $ — PAVmed - Management Services Agreement The Company’s daily operations are also managed in part by personnel employed by PAVmed, for which the Company incurs a service fee, referred to as the “MSA Fee”, according to the provisions of a Management Services Agreement (“MSA”) with PAVmed. The MSA does not have a termination date, but may be terminated by the Company’s board of directors. The MSA Fee is charged on a monthly basis and is subject to periodic adjustment corresponding with changes in the services provided by PAVmed personnel to the Company, with any such change in the MSA Fee being subject to approval of the boards of directors of each of the Company and PAVmed. Currently, under the terms of PAVmed’s outstanding convertible debt, PAVmed is required to elect to receive such payments in cash. The MSA Fee expense classification in the unaudited condensed consolidated statement of operations for the periods noted is as follows: Schedule of MSA Fee Expense Classification in Statements of Operations 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Sales & Marketing $ 165 $ 127 $ 493 $ 417 General & Administrative 2,252 1,803 6,758 5,860 Research & Development 733 570 2,199 1,873 Total MSA Fee $ 3,150 $ 2,500 $ 9,450 $ 8,150 The classification of the MSA Fee as presented above is based on the PAVmed classification of employee salary expense and other operating expenses. In this regard, PAVmed classifies employee salary expense as sales and marketing expenses for employees performing sales, sales support and marketing activities, research and development expenses for those employees who are engaged in product and services engineering development and design and /or clinical trials activities, and other employees and activities classified as general and administrative. 10 Note 6 — Prepaid Expenses, Deposits, and Other Current Assets Prepaid expenses and other current assets consisted of the following as of: Schedule of Prepaid Expenses and Other Current Assets September 30, 2025 December 31, 2024 Advanced payments to service providers and suppliers $ 370 $ 581 Prepaid insurance 59 443 Deposits 1,045 1,020 Subscribed amounts due from investors — 360 Total prepaid expenses, deposits and other current assets $ 1,474 $ 2,404 Note 7 — Leases The Company’s future lease payments as of September 30, 2025, which are presented as operating lease liabilities, current portion and operating lease liabilities, less current portion on the Company’s unaudited condensed consolidated balance sheets are as follows: Schedule of Future Lease Payments of Operating Lease Liabilities 2025 (remainder of year) $ 253 2026 998 2027 942 2028 19 2029 — Total lease payments $ 2,212 Less: imputed interest ( 177 ) Present value of lease liabilities $ 2,035 Supplemental disclosure of cash flow information related to the Company’s cash and non-cash activities with its leases are as follows: Schedule of Cash Flow Supplemental Information 2025 2024 Nine Months Ended September 30, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 789 $ 889 Non-cash investing and financing activities Right-of-use assets obtained in exchange for new operating lease liabilities $ 34 $ 2,347 Weighted-average remaining lease term - operating leases (in years) 2.23 3.17 Weighted-average discount rate - operating leases 7.915 % 7.875 % As of September 30, 2025 and December 31, 2024, the Company’s right-of-use assets from operating leases were $ 2,021 and $ 2,637 , respectively, which are reported in operating lease right-of-use assets in the unaudited condensed consolidated balance sheets. As of September 30, 2025 and December 31, 2024, the Company had outstanding operating lease obligations of $ 2,035 and $ 2,654 , respectively, of which $ 878 and $ 854 , respectively, are reported in operating lease liabilities, current portion and $ 1,157 and $ 1,800 , respectively, are reported in operating lease liabilities less current portion in the Company’s unaudited condensed consolidated balance sheets. The Company calculates its incremental borrowing rates for specific lease terms, as a function of the financing terms the Company would likely receive on the open market. 11 Note 8 — Commitment and Contingencies Other Matters In the ordinary course of Lucid’s business, particularly as it begins commercialization of its products, the Company may be subject to certain other legal actions and claims, including product liability, consumer, commercial, tax and governmental matters, which may arise from time to time. The Company is not aware of any such pending legal or other proceedings that are reasonably likely to have a material impact on the Company. Notwithstanding, legal proceedings are subject to inherent uncertainties, and an unfavorable outcome could include monetary damages, and excessive verdicts can result from litigation, and as such, could result in a material adverse impact on the Company’s business, financial position, results of operations, and/or cash flows. Additionally, although the Company has specific insurance for certain potential risks, the Company may in the future incur judgments or enter into settlements of claims which may have a material adverse impact on the Company’s business, financial position, results of operations, and /or cash flows. Note 9 — Financial Instruments Fair Value Measurements Recurring Fair Value Measurements The fair value hierarchy table for the reporting date noted is as follows: Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis 1 1 1 1 Fair Value Measurement on a Recurring Basis at Reporting Date Using 1 Level-1 Inputs Level-2 Inputs Level-3 Inputs Total September 30, 2025 2024 Convertible Notes $ — $ — $ 22,300 $ 22,300 Totals $ — $ — $ 22,300 $ 22,300 Level-1 Inputs Level-2 Inputs Level-3 Inputs Total December 31, 2024 2024 Convertible Notes $ — $ — $ 18,600 $ 18,600 Totals $ — $ — $ 18,600 $ 18,600 Fair value of liability $ — $ — $ 18,600 $ 18,600 1 There were no transfers between the respective Levels during the nine months ended September 30, 2025. 12 Note 9 — Financial Instruments Fair Value Measurements - continued As discussed in Note 10, Debt , the Company issued Senior Secured Convertible Notes dated November 22, 2024 with a $ 21.975 million face value principal (“2024 Convertible Notes”). The convertible notes are accounted for under the fair value option (“FVO”) election, wherein, the financial instruments are initially measured at their issue date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at each reporting period date. The estimated fair value of the financial instruments classified within the Level 3 category was determined using both observable inputs and unobservable inputs. Unrealized gains and losses associated with liabilities within the Level 3 category include changes in fair value attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long- dated volatilities) inputs. The estimated fair value of the 2024 Convertible Notes as of each September 30, 2025 and December 31, 2024 was computed using a Monte Carlo simulation of the present value of its cash flows using a synthetic credit rating analysis and a required rate-of-return, using the following assumptions: Schedule of Fair Value Assumption Used 2024 Convertible Notes: September 30, 2025 2024 Convertible Notes: December 31, 2024 Fair Value $ 22,300 $ 18,600 Face value principal payable $ 21,975 $ 21,975 Required rate of return 28.70 % 29.00 % Conversion Price $ 1.00 $ 1.00 Value of common stock $ 1.01 $ 0.819 Expected term (years) 4.15 4.90 Volatility 40.00 % 40.00 % Risk free rate 3.62 % 4.28 % Dividend yield — % — % The estimated fair values reported utilized the Company’s common stock price along with certain Level 3 inputs (as discussed in the table above), in the development of Monte Carlo simulation models, discounted cash flow analyses, and /or Black-Scholes valuation models. The estimated fair values are subjective and are affected by changes in inputs to the valuation models and analyses, including the Company’s common stock price, the Company’s dividend yield, the risk-free rates based on U.S. Treasury security yields, and certain other Level-3 inputs including, assumptions regarding the estimated volatility in the value of the Company’s common stock price and the volatility of similar entities within the medical device industry. Changes in these assumptions can materially affect the estimated fair values. Note 10 — Debt The fair value and face value principal outstanding of the 2024 Convertible Notes as of the dates indicated are as follows: Summary of Outstanding Debt Contractual Maturity Date Stated Interest Rate Conversion Price per Share Face Value Principal Outstanding Fair Value 2024 Convertible Notes November 22, 2029 12.000 % $ 1.00 $ 21,975 $ 22,300 Balance as of September 30, 2025 $ 21,975 $ 22,300 Contractual Maturity Date Stated Interest Rate Conversion Price per Share Face Value Principal Outstanding Fair Value 2024 Convertible Notes November 22, 2029 12.000 % $ 1.00 $ 21,975 $ 18,600 Balance as of December 31, 2024 $ 21,975 $ 18,600 13 Note 10 — Debt - continued The changes in the fair value of debt during the three and nine months ended September 30, 2025 is as follows: Schedule of Changes in Fair Value of Debt 2024 Convertible Notes Other Income (expense) Fair Value at June 30, 2025 $ 25,300 $ — Non-installment payments – common stock ( 75 ) — Non-installment payments – cash interest paid ( 584 ) — Change in fair value ( 2,341 ) 2,341 Fair Value at September 30, 2025 $ 22,300 Other Income (Expense) - Change in fair value – three months ended September 30, 2025 $ 2,341 2024 Convertible Notes Other Income (expense) Fair Value - December 31, 2024 $ 18,600 $ — Non-installment payments – common stock ( 182 ) — Non-installment payments – cash interest paid ( 1,415 ) — Change in fair value 5,297 ( 5,297 ) Fair Value at September 30, 2025 $ 22,300 - Other Income (Expense) - Change in fair value – nine months ended September 30, 2025 $ ( 5,297 ) The changes in the fair value of debt during the three and nine months ended September 30, 2024 is as follows: March 2023 Senior Convertible Note Other Income (expense) Fair Value at June 30, 2024 $ 11,200 $ — Installment repayments – common stock ( 1,142 ) — Non-installment payments – common stock ( 180 ) — Change in fair value 322 ( 322 ) Fair Value at September 30, 2024 $ 10,200 Other Income (Expense) - Change in fair value – three months ended September 30, 2024 $ ( 322 ) March 2023 Senior Convertible Note Other Income (expense) Fair Value - December 31, 2023 $ 13,950 $ — Fair Value - Beginning Balance $ 13,950 $ — Installment repayments – common stock ( 2,350 ) — Non-installment payments – common stock ( 832 ) — Change in fair value ( 568 ) 568 Fair Value at September 30, 2024 $ 10,200 - Fair Value - Ending Balance $ 10,200 - Other Income (Expense) - Change in fair value – nine months ended September 30, 2024 $ 568 14 Note 10 — Debt - continued 2024 Convertible Notes On November 22, 2024, the Company closed on the sale of $ 21.975 million in principal amount of Senior Secured Convertible Notes (collectively, the “2024 Convertible Notes”), in a private placement, to certain accredited investors (the “2024 Note Investors”). The sale of the 2024 Convertible Notes was completed pursuant to the terms of that certain Securities Purchase Agreement, dated as of November 12, 2024 (the “2024 SPA”), between the Company and the 2024 Note Investors. The Company realized gross proceeds of $ 21.975 million and, after giving effect to the repayment in full of the March 2023 Senior Convertible Note, net proceeds of $ 18.3 million from the sale of the 2024 Convertible Notes. Each 2024 Convertible Note has a 12.0 % annual stated interest rate, a contractual maturity date of five years from the date of issuance, and a contractual conversion price of $ 1.00 per share of the Company’s common stock (subject to (i) in the event of certain issuances of additional securities by the Company at a price per share less than the then applicable conversion price, adjustment to such lower price per share, and (ii) customary proportionate adjustment upon any stock split, stock dividend, stock combination, recapitalization or other similar transaction). The Company held a stockholder meeting on June 18, 2025 at which the stockholders approved the issuance of the shares issuable upon conversion of the Notes in excess of any primary market limitations. Under the 2024 Convertible Notes, the Company is subject to certain customary affirmative and negative covenants regarding the incurrence of indebtedness, the existence of liens, the repayment of indebtedness and the making of investments, the payment of cash in respect of dividends, distributions or redemptions, the transfer of assets, the maturity of other indebtedness, transactions with affiliates, and the consummation of fundamental transactions where the aggregate consideration payable in respect thereof, as determined on a per share of the Company’s common stock basis, has a fair market value that is less than $1.50, among other customary matters. Under the 2024 Convertible Notes, the Company is subject to a financial covenant requiring that the amount of its available cash equal or exceed $5.0 million at all times that at least 25% of the principal amount of 2024 Convertible Notes issued are outstanding . The Company was in compliance with all covenants as of September 30, 2025. The Company filed a resale registration statement on Form S-3 Registration No. 333-287496 effective May 30, 2025 covering the resale of all shares of the Company’s common stock issuable upon conversion of the 2024 Convertible Notes. 15 Note 11 — Stock-Based Compensation Lucid Diagnostics 2018 Long-Term Incentive Equity Plan The Lucid Diagnostics Inc. 2018 Long-Term Incentive Equity Plan (“Lucid Diagnostics 2018 Equity Plan”) is separate and apart from the PAVmed 2014 Equity Plan discussed below. The Lucid Diagnostics 2018 Equity Plan is designed to enable Lucid Diagnostics to offer employees, officers, directors, and consultants, an opportunity to acquire shares of common stock of Lucid Diagnostics. The types of awards that may be granted under the Lucid Diagnostics 2018 Equity Plan include stock options, stock appreciation rights, restricted stock, and other stock-based awards subject to limitations under applicable law. All awards are subject to approval by the Lucid Diagnostics compensation committee. A total of 18,342,201 shares of common stock of Lucid Diagnostics are reserved for issuance under the Lucid Diagnostics 2018 Equity Plan, with 904,162 shares available for grant as of September 30, 2025. The share reservation is not diminished by a total of 523,300 stock options and 50,000 restricted stock awards granted outside the Lucid Diagnostics 2018 Equity Plan, as of September 30, 2025. In January 2025, the number of shares available for grant was increased by 4,018,163 in accordance with the evergreen provisions of the plan. Lucid Diagnostics Stock Options Lucid Diagnostics stock options granted under the Lucid Diagnostics 2018 Equity Plan and stock options granted outside such plan are summarized as follows: Schedule of Stock Options Issued and Outstanding Activities Number of Stock Options Weighted Average Exercise Price Remaining Contractual Term (Years) Intrinsic Value (2) Outstanding stock options at December 31, 2024 8,646,758 $ 1.68 8.1 $ 199 Granted (1) 1,766,000 $ 1.42 Exercised ( 13,012 ) $ 1.16 Forfeited ( 472,336 ) $ 1.56 Outstanding stock options at September 30, 2025 (3) 9,927,410 $ 1.64 7.6 $ 307 Vested and exercisable stock options at September 30, 2025 6,462,418 $ 1.82 7.0 $ 291 (1) Stock options granted under the Lucid Diagnostics 2018 Equity Plan and those granted outside such plan generally vest one-third in one year then ratably over the next eight quarters, and have a ten-year contractual term from date-of-grant. (2) The intrinsic value is computed as the difference between the quoted price of the Lucid Diagnostics common stock on each of September 30, 2025 and December 31, 2024 and the exercise price of the underlying Lucid Diagnostics stock options, to the extent such quoted price is greater than the exercise price. (3) The outstanding stock options presented in the table above are inclusive of 523,300 stock options granted outside the Lucid Diagnostics 2018 Equity Plan, as of September 30, 2025 and December 31, 2024. On February 20, 2025, the Compan y granted 1,321,000 stock options to employees under the Lucid Diagnostics Inc 2018 Equity Plan with a weighted average exercise price of $ 1.49 . Each option will vest one-third on December 31, 2025 and then ratably over the next eight quarters. Lucid Diagnostics Restricted Stock Awards Lucid Diagnostics restricted stock awards granted under the Lucid Diagnostics 2018 Equity Plan and restricted stock awards granted outside such plan are summarized as follows: Schedule of Restricted Stock Award Activity Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Unvested restricted stock awards as of December 31, 2024 3,897,440 $ 5.77 Granted 2,686,800 1.49 Vested — — Forfeited — — Unvested restricted stock awards as of September 30, 2025 6,584,240 $ 4.02 On February 20, 2025, a total of 2,686,800 restricted stock awards were granted to employees, management and directors under the Lucid Diagnostics 2018 Equity Plan, with such restricted stock awards having an aggregate fair value of approximately $ 4.0 million, which was measured using the grant date quoted closing price per share of Lucid Diagnostics Inc. common stock, with the fair value recognized as stock-based compensation expense ratably on a straight-line basis over the vesting period, which is commensurate with the service period. The vesting of the restricted stock awards vest on a single vest date of May 20, 2028. The restricted stock awards are subject to forfeiture if the requisite service period is not completed. 16 Note 11 — Stock-Based Compensation - continued PAVmed Inc. 2014 Equity Plan The PAVmed 2014 Long-Term Incentive Equity Plan (the “PAVmed 2014 Equity Plan”), is separate and apart from the Lucid Diagnostics 2018 Equity Plan (as such equity plan is discussed above). Stock-Based Compensation Expense The stock-based compensation expense recognized by the Company for both the Lucid Diagnostics 2018 Equity Plan and the PAVmed 2014 Equity Plan, for the periods indicated, was as follows: Schedule of Stock-Based Compensation Expense 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Lucid Diagnostics 2018 Equity Plan – cost of revenue $ 38 $ 30 $ 109 $ 88 Lucid Diagnostics 2018 Equity Plan – sales and marketing 262 328 728 925 Lucid Diagnostics 2018 Equity Plan - general and administrative 713 699 2,054 1,635 Lucid Diagnostics 2018 Equity Plan - research and development 122 128 336 386 PAVmed 2014 Equity Plan - cost of revenue 5 11 43 33 PAVmed 2014 Equity Plan - sales and marketing 6 23 25 141 PAVmed 2014 Equity Plan - general and administrative 5 1 6 5 PAVmed 2014 Equity Plan - research and development 1 8 25 150 Total stock-based compensation expense $ 1,152 $ 1,228 $ 3,326 $ 3,363 The stock-based compensation expense, as presented above, is inclusive of: stock options and restricted stock awards granted under the Lucid Diagnostics 2018 Equity Plan to employees of PAVmed, the physician inventors of the technology licensed under the Amended CWRU License Agreement, and members of the board of directors of Lucid Diagnostics, as well as the stock options granted under the PAVmed 2014 Equity Plan to the physician inventors. As of September 30, 2025, unrecognized stock-based compensation expense and weighted average remaining requisite service period with respect to stock options and restricted stock awards issued under each of the Lucid Diagnostics 2018 Equity Plan and the PAVmed 2014 Equity Plan, as discussed above, is as follows: Schedule of Unrecognized Compensation Expense and Weighted Average Remaining Service Period Unrecognized Expense Weighted Average Remaining Service Period (Years) Lucid Diagnostics 2018 Equity Plan Stock Options $ 2,659 1.7 Restricted Stock Awards $ 4,028 1.8 PAVmed 2014 Equity Plan Stock Options $ 23 1.7 Restricted Stock Awards $ 20 2.6 17 Note 11 — Stock-Based Compensation - continued Stock-based compensation expense recognized with respect to stock options granted under the Lucid Diagnostics 2018 Equity Plan was based on a weighted average estimated fair value of such stock options of $ 0.90 per share and $ 0.79 per share during the nine months ended September 30, 2025 and 2024, respectively, calculated using the following weighted average Black-Scholes valuation model assumptions: Schedule of Stock-based Compensation Valuation Assumptions 2025 2024 Nine Months Ended September 30, 2025 2024 Expected term of stock options (in years) 5.8 5.7 Expected stock price volatility 68 % 73 % Risk free interest rate 4.3 % 4.3 % Expected dividend yield — % — % Lucid Diagnostics Inc Employee Stock Purchase Plan (“Lucid ESPP”) A total of 203,051 shares and 511,884 shares of common stock of Lucid Diagnostics were purchased for proceeds of approximately $ 141 and $ 353 on March 31, 2025 and 2024, respectively, under the Lucid ESPP. A total of 152,408 shares and 136,056 shares of common stock of Lucid Diagnostics were purchased for proceeds of approximately $ 131 and $ 94 on September 30, 2025 and 2024, respectively, under the Lucid ESPP. The Lucid ESPP has a total reservation of 2,500,000 shares of common stock of which 904,371 shares are available for issue as of September 30, 2025. Note 12 — Stockholders’ Equity Series B Preferred Stock Offering and Exchange As of September 30, 2025 and December 31, 2024, there were 44,140 and 44,285 shares, respectively, of Series B Convertible Preferred Stock, classified in permanent equity, issued and outstanding. Each holder of Series B Preferred Stock (i) was entitled to receive, and did receive, a dividend on or about March 13, 2025 equal to 20% of the number of shares of Common Stock issuable upon conversion of the Series B Preferred Stock then held by such holder on March 13, 2025, and (ii) will be entitled to receive a dividend on or about March 13, 2026 equal to a number of shares of Common Stock equal to 20% of the number of shares of Common Stock issuable upon conversion of the Series B Preferred Stock then held by such holder on March 13, 2026. A holder that voluntarily converts its Series B Preferred Stock prior to March 13, 2026 will not receive the dividend that accrues on such date with respect to such converted Series B Preferred Stock. The holders of the Series B Preferred Stock also will be entitled to dividends equal, on an as-if-converted to shares of Common Stock basis, to and in the same form as dividends actually paid on shares of the Common Stock when, as, and if such dividends are paid on shares of the Common Stock . The Company issued in the aggregate 7,117,463 common shares, with such shares having a fair value of approximately $ 9.1 million at the time of issuance, in satisfaction of the March 13, 2025 Series B Preferred Stock dividend. On September 3, 2025, an investor of the Series B Preferred Stock converted 145 shares of Series B Preferred Stock at the stated conversion price of $ 1.2444 for 116,523 shares of the Company’s common stock. Series B-1 Preferred Stock Offering As of September 30, 2025 and December 31, 2024, there were 10,134 shares of Series B-1 Convertible Preferred Stock, classified in permanent equity, issued and outstanding. Each holder of Series B-1 Preferred Stock (i) was entitled to receive, and did receive, a dividend on or about May 6, 2025 equal to 20% of the number of shares of Common Stock issuable upon conversion of the Series B-1 Preferred Stock then held by such holder on May 6, 2025, and (ii) will be entitled to receive a dividend on or about May 6, 2026 equal to a number of shares of Common Stock equal to 20% of the number of shares of Common Stock issuable upon conversion of the Series B-1 Preferred Stock then held by such holder on May 6, 2026. A holder that voluntarily converts its Series B-1 Preferred Stock prior to May 6, 2026 will not receive the dividend that accrues on such date with respect to such converted Series B-1 Preferred Stock. The holders of the Series B-1 Preferred Stock also will be entitled to dividends equal, on an as-if-converted to shares of Common Stock basis, to and in the same form as dividends actually paid on shares of the Common Stock when, as, and if such dividends are paid on shares of the Common Stock . The Company issued in the aggregate 2,803,960 common shares, with such shares having a fair value of approximately $ 3.5 million at the time of issuance, in satisfaction of the May 6, 2025 Series B-1 Preferred Stock dividend. 18 Note 12 — Stockholders’ Equity - continued March 2025 Registered Direct Offering On March 5, 2025, the Company closed on the sale of 13,939,330 shares of its common stock at a price of $ 1.10 per share in a registered direct offering. The net proceeds of the offering, after deducting approximately $ 0.4 million of placement agent’s fees and other expenses, was approximately $ 14.9 million. April 2025 Confidentially Marketed Public Offering On April 11, 2025, the Company closed on the sale of 14,375,000 shares of its common stock at a price of $ 1.20 per share in a confidentially marketed public offering. The net proceeds of the offering, after deducting approximately $ 1.1 million of the placement agent’s fees and other expenses, was approximately $ 16.2 million. September 2025 Confidentially Marketed Public Offering On September 11, 2025, the Company closed on the sale of 28,750,000 shares of its common stock at a price of $ 1.00 per share in a confidentially marketed public offering. The net proceeds of the offering, after deducting approximately $ 1.8 million of the placement agent’s fees and other expenses, was approximately $ 27.0 million. Committed Equity Facility and ATM Facility On March 28, 2022, the Company entered into a committed equity facility with an affiliate of Cantor Fitzgerald (“Cantor”). Under the terms of the committed equity facility, Cantor has committed to purchase up to $ 50 million of the Company’s common stock from time to time at the request of the Company. While there are distinct differences, the facility is structured similarly to a traditional at-the-market equity facility, insofar as it allows the Company to raise primary equity capital on a periodic basis at prices based on the existing market price. Cumulatively a total of 680,263 shares of Lucid Diagnostics’ common stock were issued for net proceeds of approximately $ 1.8 million, after a 4 % discount, as of September 30, 2025. This facility terminated on August 1, 2025, which is the first of the month following the 36-month anniversary of the effective date of the registration statement for the same. Upon termination of the CEF, the Company expensed the remaining $ 1,078 of deferred financing fees. On May 30, 2025, the Company entered into a Controlled Equity Offering Agreement (also “ATM” or “At-The-market” offering) between the Company and Maxim Group LLC for up to $ 25.0 million of its common stock that may be offered and sold from time to time. In the nine months ended September 30, 2025, the Company sold 215,421 shares through their ATM equity facility for net proceeds of approximately $ 0.3 million, after payment of 3 % commissions. 19 Note 13 — Net Loss Per Share The Net loss per share basic and diluted for the respective periods indicated is as follows: Schedule of Net Loss Per Share Basic and Diluted 2025 2024 2025 2024 Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Numerator Net loss $ ( 10,397 ) $ ( 12,371 ) $ ( 41,744 ) $ ( 33,988 ) Deemed dividend on Series A and Series A-1 Convertible Preferred Stock — — — ( 7,496 ) Series B and Series B-1 Convertible Preferred Stock dividends earned — — ( 12,559 ) — Net loss attributable to Lucid Diagnostics Inc. common stockholders $ ( 10,397 ) $ ( 12,371 ) $ ( 54,303 ) $ ( 41,484 ) Denominator Weighted average common shares outstanding, basic and diluted 108,176,088 50,374,146 92,131,461 47,876,015 Net loss per share (1) Net loss per share - basic and diluted $ ( 0.10 ) $ ( 0.25 ) $ ( 0.59 ) $ ( 0.87 ) (1) - Convertible Preferred Stock would potentially be considered a participating security under the two-class method of calculating net loss per share. However, the Company has incurred net losses to-date, and as such holders are not contractually obligated to share in the losses, there is no impact on the Company’s net loss per share calculation for the periods indicated. Basic weighted-average number of shares of common stock outstanding for the nine months ended September 30, 2025 and 2024 include the shares of the Company issued and outstanding during such periods, each on a weighted average basis. The basic weighted average number of shares of common stock outstanding excludes common stock equivalent incremental shares, while diluted weighted average number of shares of common stock outstanding includes such incremental shares. However, as the Company was in a loss position for all periods presented, basic and diluted weighted average shares outstanding are the same, as the inclusion of the incremental shares would be anti-dilutive. The common stock equivalents excluded from the computation of diluted weighted average shares outstanding are as follows: Schedule of Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share September 30, 2025 2024 Stock options 9,927,410 8,662,549 Unvested restricted stock awards 6,584,240 3,897,440 Preferred stock 49,490,593 51,682,378 Total 66,002,243 64,242,367 Note 14 — Segment Information Lucid’s Chief Executive Officer is the Chief Operating Decision Maker (“CODM”). The CODM uses consolidated net income(loss) to assess segment profit or loss, allocate resources and assess performance. The Company manages the business activities on a consolidated basis and operates in one reportable segment. Further, the CODM reviews and utilizes functional expenses (cost of revenues, sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s operations. The Company’s significant segment expenses and other segment items align with the financial statements line items presented in its the unaudited condensed consolidated statements of operations. During the three and nine months ended September 30, 2025 and 2024 revenues resulting from the delivery of patient EsoGuard test results was concentrated in the United States. The measure of segment assets is reported on the balance sheet as total consolidated assets, and concentrated in the United States. 20 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis of our unaudited condensed consolidated financial condition and results of operations should be read together with our Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”), as filed with the Securities and Exchange Commission (the “SEC”). Unless the context otherwise requires, (i) “we”, “us”, and “our”, and the “Company”, “Lucid” and “Lucid Diagnostics” refer to Lucid Diagnostics Inc. and its subsidiaries LucidDx Labs Inc. (“LucidDx Labs”) and CapNostics, LLC (“CapNostics”), (ii) “FDA” refers to the Food and Drug Administration, (iii) “510(k)” refers to a premarket notification, submitted to the FDA by a manufacturer pursuant to § 510(k) of the Food, Drug and Cosmetic Act and 21 CFR § 807 subpart E, (iv) “CLIA” refers to the Clinical Laboratory Improvement Amendments of 1988 and associated regulations set forth in 42 CFR § 493, (v) “CE Mark” refers to a “Conformité Européenne” Mark, a mark indicating that a product such as a medical device conforms to the essential requirements of the relevant European directive, and (vi) “LDT” refers to a diagnostic test, defined by the FDA as “an IVD that is intended for clinical use and designed, manufactured and used within a single laboratory,” which is generally subject only to self-certification of analytical validity under the CMS CLIA program. FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this “Form 10-Q”), including the discussion and analysis of our unaudited condensed consolidated financial condition and results of operations, contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this Form 10-Q, including statements regarding our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from those expressed or implied in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed in Item 1A of Part I of the Form 10-K under the heading “Risk Factors.” Important factors that may affect our actual results include: ● our limited operating history; ● our financial performance, including our ability to generate revenue; ● our ability to obtain regulatory approval for the commercialization of our products; ● the ability of our products to achieve market acceptance; ● our success in retaining or recruiting, or changes required in, our officers, key employees or directors; ● our potential ability to obtain additional financing when and if needed; ● our ability to protect our intellectual property; ● our ability to complete strategic acquisitions; ● our ability to manage growth and integrate acquired operations; ● the potential liquidity and trading of our securities; ● our regulatory and operational risks; ● cybersecurity risks; ● risks related to health-related emergencies; ● risks related to our relationship with PAVmed; and ● our estimates regarding expenses, future revenue, capital requirements and needs for additional financing. In addition, our forward-looking statements do not reflect the potential impact of any future financings, acquisitions, mergers, dispositions, joint ventures or investments we may make. We may not actually achieve the results, plans and/or objectives disclosed in our forward-looking statements, and the intended or expected results, developments and/or other events disclosed in our forward-looking statements may not actually occur, and accordingly you should not place undue reliance on our forward-looking statements. You should read this Quarterly Report on Form 10-Q and the documents we have filed as exhibits to this Form 10-Q and the Form 10-K completely and with the understanding our actual future results may be materially different from what we expect. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. 21 Overview We are a commercial-stage, cancer prevention medical diagnostics technology company focused on the millions of patients who are at risk of developing esophageal precancer and cancer, specifically highly lethal esophageal adenocarcinoma (“EAC”). We believe that our flagship product, the EsoGuard Esophageal DNA Test, performed on samples collected with the EsoCheck Esophageal Cell Collection Device, constitutes the first and only commercially available diagnostic test capable of serving as a widespread tool for the early detection of esophageal precancer, including Barrett’s Esophagus (“BE”), in at-risk patients. Early detection of esophageal precancer allows patients to undergo appropriate monitoring and treatment, as indicated by clinical practice guidelines, in an effort to prevent progression to esophageal cancer. EsoGuard is a bisulfite-converted targeted next-generation sequencing (NGS) DNA assay performed on surface esophageal cells collected with EsoCheck. It quantifies methylation at 31 sites on two genes, Vimentin (VIM) and Cyclin A1 (CCNA1). The assay has been evaluated in multiple studies, demonstrating sensitivity of ~90% for detecting disease along the full esophageal precancer to cancer spectrum, with a negative predictive value (NPV) of ~99%. Sensitivity and NPV remain very high even for detecting early precancer, which is unprecedented for a molecular diagnostic test . EsoCheck is an FDA 510(k) and CE Mark cleared noninvasive swallowable balloon capsule catheter device capable of sampling surface esophageal cells in a less than two minute office procedure. It consists of a vitamin pill-sized rigid plastic capsule tethered to a thin silicone catheter from which a soft silicone balloon with textured ridges emerges to gently swab surface esophageal cells. When vacuum suction is applied, the balloon and sampled cells are pulled into the capsule, protecting them from contamination and dilution by cells outside of the targeted region during device withdrawal. We believe this proprietary Collect+Protect™ technology makes EsoCheck the only noninvasive esophageal cell collection device capable of such anatomically targeted and protected sampling. EsoGuard and EsoCheck are based on patented technology licensed by Lucid from Case Western Reserve University (“CWRU”). EsoGuard and EsoCheck have been developed to provide an accurate, non-invasive, patient-friendly test for the early detection of EAC and BE, including dysplastic BE and related precursors to EAC in patients with gastroesophageal reflux disease (“GERD”), commonly known as chronic heartburn, acid reflux, or just reflux. Recent Developments Medicare Coverage In November 2024, we submitted to MolDx our complete clinical evidence package in support of a request for reconsideration of the non-coverage language in the local coverage determination, or “LCD,” to secure Medicare coverage for EsoGuard. The EsoGuard clinical evidence package included six new peer-reviewed publications: three clinical validation studies (two in the intended use population, one case control), two clinical utility studies, and one analytical validation study. The current LCD provides clear coverage criteria consistent with the American College of Gastroenterology, or “ACG,” guidelines for esophageal precancer testing. The package was submitted as part of a request for reconsideration of the non-coverage language in the LCD to secure Medicare coverage for EsoGuard. As part of the LCD reconsideration process, MolDx-participating Medicare Administrative Contractors convened a Contractor Advisory Committee, or “CAC,” Meeting regarding the LCD on September 4, 2025. At the meeting, eleven experts, including physicians across multiple specialties (GI, primary care, pathology), major society guideline co-authors (ACG, AGA (as defined below)) and industry leaders (American Foregut Society, American Society for Gastrointestinal Endoscopy), participated in this extensive discussion of the unmet clinical need with respect to early detection of esophageal precancer and the strength of the EsoGuard clinical validity and clinical utility data. Board Appointment Effective September 22, 2025, the board of directors of the Company appointed John R. Palumbo as a Class B director of the Company. Mr. Palumbo was designated for appointment by certain of the holders of 2024 Convertible Notes. Clinical Study Publications In April 2025, the Company’s fifth peer-reviewed clinical utility manuscript, “ Enhancing the Diagnostic Yield of EGD for Diagnosis of Barrett’s Esophagus Through Methylated DNA Biomarker Triage ,” was published in Gastroenterology & Hepatology . This manuscript presents clinical utility data from the ENVET-BE study, which is the second to assess the clinical utility of EsoGuard in a real-world screening population. The ENVET-BE study analyzed 209 EsoGuard-positive patients who underwent biomarker triage and confirmatory EGD in the 2023 calendar year, to test the hypothesis that EGDs performed on patients who first triage positive on EsoGuard have higher diagnostic yield than screening EGDs alone. The yield of screening EGDs was estimated by literature-established disease prevalence (10.6%). A 2.4-fold increase in BE detection compared with the performance goal was observed for the full study population. In the cohort meeting American College of Gastroenterology (ACG) criteria for BE screening, the diagnostic yield was increased by 2.7-fold. On August 1, 2025, the American Journal of Gastroenterology e-published the manuscript “Nonendoscopic Detection of Barrett’s Esophagus in Patients Without GERD Symptoms.” This investigator-initiated pilot study evaluated EsoGuard in 120 patients without GERD symptoms, but who met American Gastroenterological Association (AGA) BE screening criteria. Of 34 EsoGuard-positive patients, 27 underwent EGD, confirming BE in 9 cases (PPV: 33%). Of 86 EsoGuard-negative patients, 22 volunteered for EGD, with zero BE cases (NPV: 100%). This is the first study to assess EsoGuard in this expanded risk group and informed the design of a larger, ongoing NIH R01-funded study. 22 Recent Developments - continued September 2025 Confidentially Marketed Public Offering On September 11, 2025, the Company closed on the sale of 28,750,000 shares of its common stock at a price of $1.00 per share (the “September 2025 Offering”). The net proceeds of the September 2025 Offering, after deducting the estimated placement agent’s fees and other expenses of $1.8 million, was approximately $27.0 million. The Company intends to use the net proceeds from the September 2025 Offering for working capital and other general corporate purposes. April 2025 Confidentially Marketed Public Offering On April 11, 2025, the Company closed on the sale of 14,375,000 shares of its common stock at a price of $1.20 per share (the “April 2025 Offering”). The net proceeds of the April 2025 Offering, after deducting the estimated placement agent’s fees and other expenses of $1.1 million, was approximately $16.2 million. The Company intends to use the net proceeds from the April 2025 Offering for working capital and other general corporate purposes. March 2025 Registered Direct Offering On March 5, 2025, the Company closed on the sale of 13,939,330 shares of its common stock at a price of $1.10 per share (the “Offering”). The net proceeds of the Offering, after deducting the estimated placement agent’s fees and other expenses of $0.4 million, was approximately $14.9 million. The Company intends to use the net proceeds from the Offering for working capital and other general corporate purposes. ATM Facility On May 30, 2025, the Company entered into an “at-the-market offering” (“ATM”) for up to $25.0 million of its common stock that may be offered and sold under a Controlled Equity Offering Agreement between the Company and Maxim Group LLC. Russell 2000® and 3000® Indexes On June 27, 2025, the Company was added to the Russell 2000® Index and the Russell 3000® Index, following the 2025 annual reconstitution by FTSE Russell. Hoag Comprehensive Esophageal Precancer Testing Program Using EsoGuard On June 18, 2025, the Company announced that Hoag, a nationally recognized regional healthcare delivery network, launched a comprehensive, integrated esophageal precancer testing program using the Company’s EsoGuard® Esophageal DNA Test. The Company will partner with Hoag to offer EsoGuard testing across its digestive health, primary care, and concierge medicine programs. NCCN Clinical Practice Guidelines Update In March 2025, we announced that a recent update to the National Comprehensive Cancer Network® (NCCN) Clinical Practice Guidelines in Oncology (NCCN Guidelines®) focused on Esophageal and Esophagogastric Junction Cancers (Version 1.2025) has added a new section on BE screening. The NCCN Guidelines® now reference professional society guidelines on BE screening, including the most recent ACG clinical guideline discussed above, which recommends non-endoscopic biomarker testing, such as EsoGuard performed on samples collected with EsoCheck, as an acceptable alternative to invasive upper endoscopy to detect esophageal precancer. Highmark Reimbursement Approval On March 13, 2025, the Company announced that Highmark Blue Cross Blue Shield, an independent licensee of the Blue Cross and Blue Shield Association, has issued a positive coverage policy for non-invasive screening of esophageal precancer and cancer in New York state. The new policy, which became effective as of May 26, 2025, covers EsoGuard in patients who meet established criteria for esophageal precancer testing consistent with professional society guidelines. CWRU NIH Grant Related to EsoGuard and EsoCheck On February 27, 2025, the Company announced that principal investigators from Case Western Reserve University (CWRU) and University Hospitals (UH), were awarded an $8 million National Institutes of Health (NIH) R01 grant to conduct a five-year clinical study designed to evaluate esophageal precancer detection using EsoCheck and EsoGuard among at-risk individuals without symptoms of chronic gastroesophageal reflux disease (GERD). The study, “A Clinical Trial of Cancer Prevention by Biomarker Based Detections of Barrett’s Esophagus and Its Progression,” aims to evaluate the effectiveness of EsoCheck and EsoGuard in detecting esophageal precancer (Barrett’s Esophagus or BE) to prevent esophageal cancer (EAC) within a non-GERD at-risk population. To accomplish this aim, 800 patients without GERD symptoms who meet the American Gastroenterological Association’s (AGA) risk criteria for screening will be recruited across five participating research centers: University Hospitals, University of Colorado, Johns Hopkins University, University of North Carolina, and Cleveland Clinic. 23 Results of Operations Overview Revenue The Company recognized revenue resulting from the delivery of patient EsoGuard test results when the Company considered the collection of such consideration to be probable to the extent that it is unconstrained. Cost of revenue Cost of revenues recognized from the delivery of patient EsoGuard test results includes costs related to EsoCheck device usage, shipment of test collection kits, royalties and the cost of services to process tests and provide results to physicians. We incur expenses for tests in the period in which the activities occur, therefore, gross margin as a percentage of revenue may vary from quarter to quarter due to costs being incurred in one period that relate to revenues recognized in a later period. We expect that the gross margin for our services will continue to fluctuate and be affected by EsoGuard test volume, our operating efficiencies, patient compliance rates, payer mix, the levels of reimbursement, and payment patterns of payers and patients. Sales and marketing expenses Sales and marketing expenses consist primarily of salaries and related costs for employees engaged in sales, sales support and marketing activities, as well as the portion of the MSA Fee (as defined in Note 5, Related Party Transactions , to our accompanying unaudited condensed consolidated financial statements) allocated to sales and marketing expenses, which are principally costs related to PAVmed employees who are performing services for the Company. We anticipate our sales and marketing expenses will increase in the future, to the extent we expand our commercial sales and marketing operations as resources permit and insurance reimbursement coverage for our EsoGuard test expands. General and administrative expenses General and administrative expenses consist primarily of professional fees for accounting, tax, audit and legal services (including those fees incurred as a result of our being a public company), consulting fees, employees costs involved in third-party payor reimbursement, expenses associated with obtaining and maintaining patents within our intellectual property portfolio, and certain employee costs, along with the portion of the MSA Fee allocated to general and administrative expenses. We anticipate our general and administrative expenses will increase in the future to the extent our business operations grow. Furthermore, we anticipate continued expenses related to being a public company, including fees and expenses for audit, legal, regulatory, tax-related services, insurance premiums and investor relations costs associated with maintaining compliance as a public company. Research and development expenses Research and development expenses are recognized in the period they are incurred and consist principally of internal and external expenses incurred for the development of our technologies and conducting clinical trials, including: ● costs associated with submission of regulatory filings; ● cost of laboratory supplies and acquiring, developing, and manufacturing preclinical prototypes; and ● the portion of the MSA Fee allocated to research and development. We plan to incur research and development expenses for the foreseeable future as we continue the development of our existing products as well as new innovations. Our research and development activities, including our clinical trials, are focused principally on facilitating insurer reimbursement, encouraging physician adoption and developing product improvements or extending the utility of the lead products in our pipeline, including EsoCheck and EsoGuard. Other Income and Expense, net Other income and expense, net, consists principally of changes in fair value of our convertible note and losses on extinguishment of debt upon repayment of such convertible note. Presentation of Dollar Amounts All dollar amounts in this Management’s Discussion and Analysis of Financial Condition and Results of Operations are presented as dollars in millions, except for share and per share amounts. 24 Results of Operations - continued The three months ended September 30, 2025 as compared to the three months ended September 30, 2024 Revenue In the three months ended September 30, 2025, revenue remained relatively level at $1.2 million as compared to the corresponding period in the prior year. Cost of revenue In the three months ended September 30, 2025, the cost of revenue remained relatively level at approximately $1.7 million, as compared to the corresponding period in the prior year. Sales and marketing expenses In the three months ended September 30, 2025, sales and marketing costs were approximately $4.3 million as compared to $4.1 million for the corresponding period in the prior year. The net increase of $0.2 million was principally related to an increase in third-party professional services and consulting costs. General and administrative expenses In the three months ended September 30, 2025, general and administrative costs were approximately $5.6 million as compared to $5.4 million for the corresponding period in the prior year. The net increase of $0.2 million was principally related to: ● approximately $0.6 million increase related to third-party professional fees, primarily due to financing related costs; ● approximately $0.2 million decrease in compensation costs; and ● approximately $0.2 million decrease in professional services and consulting costs. Research and development expenses In the three months ended September 30, 2025, research and development costs were approximately $1.3 million, compared to $1.7 million for the corresponding period in the prior year. The net decrease of $0.4 million was principally related to a decrease in development costs, particularly in clinical trial activities and outside professional and consulting fees. Amortization of Acquired Intangible Assets In the three months ended September 30, 2025, the amortization of acquired intangible assets remained relatively level at approximately $0.1 million, as compared to the corresponding period in the prior year. Other Income and Expense Change in fair value of convertible debt In the three months ended September 30, 2025, the sequential decrease in the fair value of our convertible notes of approximately $2.3 million is reflected as other income in the Statement of Operations, (see Note 10, Debt , to our accompanying unaudited condensed consolidated financial statements). The 2024 Convertible Notes were initially measured at the issue-date estimated fair value and are subsequently remeasured at estimated fair value as of each reporting period end date. 25 Results of Operations - continued The three months ended September 30, 2025 as compared to three months ended September 30, 2024 - continued Loss on Debt Extinguishment The Company did not incur debt extinguishment loss in the three months ended September 30, 2025. In the three months ended September 30, 2024, a debt extinguishment loss in the aggregate of approximately $0.4 million was recognized in connection with our March 2023 Senior Convertible Note as discussed below. ● In the three months ended September 30, 2024, approximately $1.1 million of principal repayments along with approximately $0.2 million of interest expense thereon, were settled through the issuance of 2,116,717 shares of common stock of the Company, with such shares having a fair value of approximately $1.8 million (with such fair value measured as the quoted closing price of the common stock of the Company on the respective conversion date). The conversions resulted in a debt extinguishment loss of $0.4 million in the three months ended September 30, 2024. See Note 10 , Debt , to our accompanying unaudited condensed consolidated financial statements, for additional information with respect to the 2024 Convertible Notes. The nine months ended September 30, 2025 as compared to nine months ended September 30, 2024 Revenue In the nine months ended September 30, 2025, revenue was $3.2 million, as compared to $3.1 million for the corresponding period in the prior year. The $0.1 million increase principally relates to the increase in the consideration received for the performance of the EsoGuard Esophageal DNA Tests. Cost of revenue In the nine months ended September 30, 2025, the cost of revenue was approximately $4.8 million as compared to $5.0 million for the corresponding period in the prior year. The net decrease of $0.2 million was principally related to: ● approximately $0.4 million decrease in the manufacturing costs associated with the EsoCheck devices and EsoGuard Esophageal DNA Tests; and ● approximately $0.2 million increase in compensation related costs. Sales and marketing expenses In the nine months ended September 30, 2025, sales and marketing costs were approximately $12.4 million as compared to $12.5 million for the corresponding period in the prior year. The net decrease of $0.1 million was principally related to: ● approximately $0.4 million increase in third-party professional services and consulting costs; ● approximately $0.3 million decrease in stock-based compensation; and ● approximately $0.2 million decrease related to third-party facility related expense. General and administrative expenses In the nine months ended September 30, 2025, general and administrative costs were approximately $17.4 million as compared to $14.3 million for the corresponding period in the prior year. The net increase of $3.1 million was principally related to: ● approximately $2.2 million increase related to third-party professional fees, primarily due to financing related costs; and ● approximately $0.9 million increase related to the amended MSA with PAVmed due to the growth and expansion of our business and the services incurred through PAVmed. Research and development expenses In the nine months ended September 30, 2025, research and development costs were approximately $4.0 million, compared to $4.5 million for the corresponding period in the prior year. The net decrease of $0.5 million was principally related to: ● approximately $0.7 million decrease in development costs, particularly in clinical trial activities; ● approximately $0.3 million increase related to the amended MSA with PAVmed due to the growth and expansion of our business and the services incurred through PAVmed; ● approximately $0.1 million decrease in stock-based compensation. 26 Results of Operations - continued The nine months ended September 30, 2025 as compared to nine months ended September 30, 2024 - continued Amortization of Acquired Intangible Assets The amortization of acquired intangible assets was approximately $0.3 million in the nine months ended September 30, 2025, as compared to $0.6 million for the corresponding period in the prior year. The decrease of $0.3 million in the current period was due to certain acquired intangible assets being fully amortized in February 2024. Other Income and Expense Change in fair value of convertible debt In the nine months ended September 30, 2025 and 2024, the change in the fair value of our convertible note was approximately $5.3 million of expense and $0.6 million of income, respectively, related to the 2024 Convertible Notes and the March 2023 Senior Convertible Note (as defined in Note 10 , Debt , to our accompanying unaudited condensed consolidated financial statements). The 2024 Convertible Notes and March 2023 Senior Convertible Note were initially measured at their respective issue date estimated fair value and subsequently remeasured at estimated fair value as of each reporting period date. Loss on Debt Extinguishment The Company did not incur debt extinguishment loss in the nine months ended September 30, 2025. In the nine months ended September 30, 2024, a debt extinguishment loss in the aggregate of approximately $1.1 million was recognized in connection with our March 2023 Senior Convertible Note as discussed below. ● In the nine months ended September 30, 2024, approximately $2.4 million of principal repayments along with approximately $0.8 million of interest expense thereon, were settled through the issuance of 4,777,898 shares of common stock of the Company, with such shares having a fair value of approximately $4.3 million (with such fair value measured as the quoted closing price of the common stock of the Company on the respective conversion date). The conversions resulted in a debt extinguishment loss of $1.1 million in the nine months ended September 30, 2024. See Note 10 , Debt , to our accompanying unaudited condensed consolidated financial statements, for additional information with respect to the 2024 Convertible Notes. Deemed Dividend on Series A and Series A-1 Convertible Preferred Stock Exchange Offer The fair value of the consideration given in the form of the issue of 31,790 shares of Series B Convertible Preferred Stock, with such fair value recognized as the carrying value of such issued shares of Series B Convertible Preferred Stock, as compared to the carrying value of the extinguished Series A and Series A-1 Convertible Preferred Stock (carrying value of $24.3 million), resulting in an excess of fair value of $7.5 million recognized as a deemed dividend charged to accumulated deficit in the unaudited condensed consolidated balance sheet on March 13, 2024, with such deemed dividend included as a component of net loss attributable to common stockholders, summarized as follows: Series B Convertible Preferred Stock Issuance and Series A/A-1 Exchange Offer ($ in thousands) Nine Months Ended September 30, 2024 Fair Value - 31,790 shares of Series B Preferred Stock issued in exchange for Series A and Series A-1 Preferred Stock $ 31,790 Less: Carrying value related to Series A and Series A-1 Preferred Stock Exchanged for Series B Preferred Stock (of 24,295 shares) (24,294 ) Deemed Dividend Charged to Accumulated Deficit $ 7,496 27 Liquidity and Capital Resources Our current operational activities are principally focused on the commercialization of EsoGuard. We are pursuing commercialization across multiple sales channels, including: the communication to and education of medical practitioners and clinicians regarding EsoGuard; the establishment of Lucid Test Centers for the collection of cell samples using EsoCheck; use of our mobile testing unit; ongoing #CheckYourFoodTube testing days; and our direct contracting strategic initiative (including in the concierge medicine and employer markets sectors). Additionally, we are developing expanded clinical evidence to support insurance reimbursement adoption by government and private insurers. Further, as resources permit, the Company also intends to pursue development of other products and services. Our ability to generate revenue depends upon our ability to successfully advance the commercialization of EsoGuard, including significantly expanding insurance reimbursement coverage. There are no assurances, however, we will be able to obtain an adequate level of financial resources required for the long-term commercialization and development of our products and services. We are subject to all of the risks and uncertainties typically faced by medical device and diagnostic companies that devote substantially all of their efforts to the commercialization of their initial products and services. We experienced a net loss of approximately $41.7 million and used approximately $33.9 million of cash in operations during the nine months ended September 30, 2025. Financing activities provided $59.0 million of cash during the nine months ended September 30, 2025. We ended the quarter with cash on-hand of $47.3 million as of September 30, 2025. We expect to continue to experience recurring losses and negative cash flow from operations, and will continue to fund our operations with debt and/or equity financing transactions, which in accordance with management’s plans may include conversions of our existing debt to equity and refinancing our existing debt obligations to extend the maturity date. The Company’s ability to continue operations 12 months beyond the issuance of the financial statements will depend upon generating substantial revenue that is conditioned on obtaining positive third-party reimbursement coverage for its EsoGuard Esophageal DNA Test from both government and private health insurance providers, increasing revenue through contracting directly with self-insured employers, and upon raising additional capital through various potential sources including equity and/or debt financings or refinancing existing debt obligations. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the accompanying unaudited condensed consolidated financial statements are issued. March 2025 Registered Direct Offering On March 5, 2025, the Company closed on the sale of 13,939,330 shares of its common stock at a price of $1.10 per share (the “Offering”). The net proceeds of the Offering, after deducting the estimated placement agent’s fees and other expenses of $0.4 million, was approximately $14.9 million. The Company intends to use the net proceeds from the Offering for working capital and other general corporate purposes. April 2025 Confidentially Marketed Public Offering On April 11, 2025, the Company closed on the sale of 14,375,000 shares of its common stock at a price of $1.20 per share (the “April 2025 Offering”). The net proceeds of the April 2025 Offering, after deducting the estimated placement agent’s fees and other expenses of $1.1 million, was approximately $16.2 million. The Company intends to use the net proceeds from the April 2025 Offering for working capital and other general corporate purposes. September 2025 Confidentially Marketed Public Offering On September 11, 2025, the Company closed on the sale of 28,750,000 shares of its common stock at a price of $1.00 per share (the “September 2025 Offering”). The net proceeds of the September 2025 Offering, after deducting the estimated placement agent’s fees and other expenses of $1.8 million, was approximately $27.0 million. The Company intends to use the net proceeds from the September 2025 Offering for working capital and other general corporate purposes. ATM Facility On May 30, 2025, the Company entered into an “at-the-market offering” (“ATM”) for up to $25.0 million of its common stock that may be offered and sold under a Controlled Equity Offering Agreement between the Company and Maxim Group LLC. In the nine months ended September 30, 2025, the Company sold 215,421 shares through its at-the-market equity facility for net proceeds of approximately $0.3 million, after payment of 3% commissions. Debt Financing On November 22, 2024, the Company closed on the sale of $21.975 million in principal amount of 2024 Convertible Notes. Each 2024 Convertible Note has a 12.0% annual stated interest rate, a contractual maturity date of five years from the date of issuance, and a contractual conversion price of $1.00 per share of the Company’s common stock (subject to adjustment in certain circumstances). Under the 2024 Convertible Notes, the Company is subject to certain customary affirmative and negative covenants, including certain financial covenants. The Company was in compliance with all covenants as of September 30, 2025. See Note 10, Debt , for more information. Management Fee Obligation The Company’s daily operations are also managed in part by personnel employed by PAVmed, for which the Company incurs the MSA Fee. The MSA Fee is charged on a monthly basis and is subject to periodic adjustment corresponding with changes in the services provided by PAVmed personnel to the Company. Currently, the MSA Fee is $1.05 million per month. See Note 5, Related Party Transactions , for more information. 28 Critical Accounting Estimates The discussion and analysis of our financial condition and results of operations is based on our unaudited condensed consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The preparation of these unaudited condensed consolidated financial statements requires us to make estimates and assumptions that affect the amounts reporting in our unaudited condensed consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgements. In accordance with U.S. GAAP, we base our estimates on historical experience and on various other factors that are believed to be appropriate under the circumstances. Actual results may differ from these estimates under different assumptions or conditions. Our critical accounting estimates are as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on March 24, 2025. There have been no material changes to our critical accounting estimates in the nine months ended September 30, 2025. Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures Our management, with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of September 30, 2025. Based on such evaluation, our principal executive officer and principal financial officer concluded our disclosure controls and procedures (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) were effective as of such date to provide reasonable assurance the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure information required to be disclosed by us in the reports we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure. Changes to Internal Controls Over Financial Reporting There has been no change in internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our fiscal quarter ended September 30, 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 29 Part II - Other Information Item 1. Legal Proceedings In the ordinary course of the Company’s business, particularly as it begins commercialization of its products, the Company may be subject to certain other legal actions and claims, including product liability, consumer, commercial, tax and governmental matters, which may arise from time to time. The Company is not aware of any such pending legal or other proceedings that are reasonably likely to have a material impact on the Company. Notwithstanding, legal proceedings are subject to inherent uncertainties, and an unfavorable outcome could include monetary damages, and excessive verdicts can result from litigation, and as such, could result in a material adverse impact on the Company’s business, financial position, results of operations, and /or cash flows. Additionally, although the Company has specific insurance for certain potential risks, the Company may in the future incur judgments or enter into settlements of claims which may have a material adverse impact on the Company’s business, financial position, results of operations, and /or cash flows. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds On July 8, 2025, pursuant to the previously disclosed terms of the 2024 Convertible Notes, the Company issued 64,346 shares of the Company’s common stock in payment of interest to one of the holders thereof. On September 3, 2025, pursuant to the previously disclosed terms of the Series B Preferred Stock, the Company issued 116,523 shares of the Company’s common stock upon conversion of 145 shares of the Series B Preferred Stock by the holder thereof. On September 25, 2025, the Company approved the issuance of 12,500 shares of the Company’s common stock to an investor relations firm it had engaged, in consideration of services to be rendered thereby. Such issuances were exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to Section 4(a)(2) of the Securities Act, as transactions not involving public offerings. Except as disclosed above and as previously disclosed in our current and periodic reports filed prior to the date of this Form 10-Q, we did not sell any unregistered securities or repurchase any of our securities during the three months ended September 30, 2025. As long as the 2024 Convertible Notes are outstanding, we may not, directly or indirectly, redeem, or declare or pay any cash dividend or cash distribution on, any of our securities without the prior express written consent of a majority-in-interest of the holders of the 2024 Convertible Notes (subject to limited exceptions). Furthermore, our common stock is junior to our preferred stock with respect to certain in-kind dividends payable to the holders of such preferred stock. Item 5. Other Information During the fiscal quarter ended September 30, 2025, none of our directors or officers (as defined in Rule 16a-1 under the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement” (as those terms are defined in Item 408 of Regulation S-K). Item 6. Exhibits The exhibits filed as part of this Quarterly Report on Form 10-Q are set forth in the “ Exhibit Index ” below. 30 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Lucid Diagnostics Inc. November 12, 2025 By: /s/ Dennis M McGrath Dennis M McGrath Chief Financial Officer (Principal Financial and Accounting Officer) 31 EXHIBIT INDEX Incorporation by Reference Exhibit No. Description Form Exhibit No. Date 31.1 Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * 31.2 Certification of Principal Financial and Accounting Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. * 32.1 Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 * 32.2 Certification of Principal Financial and Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. * 101.INS Inline XBRL Instance Document * 101.CAL Inline XBRL Taxonomy Extension Schema * 101.DEF Inline XBRL Taxonomy Extension Calculation Linkbase * 101.LAB Inline XBRL Taxonomy Extension Label Linkbase * 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase * 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * * Filed herewith. 32