PAVmed Inc. 10-Q

Item 1. Financial Statements PAVMED INC. and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands except number of shares and per share data - unaudited) June 30, 2025 December 31, 2024 Assets: Current assets: Cash $ 4,004 $ 1,185 Accounts receivable 3 18 Prepaid expenses, deposits, and other current assets 1,481 961 Total current assets 5,488 2,164 Fixed assets, net 100 151 Operating lease right-of-use assets 2,256 2,500 Equity method investment - at fair value 35,998 25,637 Other assets 51 208 Total assets $ 43,893 $ 30,660 Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit) Current liabilities: Accounts payable $ 387 $ 657 Accrued expenses and other current liabilities 2,777 5,176 Operating lease liabilities, current portion 542 513 Senior Secured Convertible Notes - at fair value 6,800 29,100 Total current liabilities 10,506 35,446 Operating lease liabilities, less current portion 1,968 2,247 Total liabilities 12,474 37,693 Commitments and contingencies (Note 8) - - Mezzanine Equity Preferred stock, $ 0.001 par value. Authorized, 20,000,000 shares; Series C Convertible Preferred Stock, stated value $ 1,037 at June 30, 2025, and issued and outstanding of 3,145 shares at June 30, 2025 and no shares issued and outstanding as of December 31, 2024 3,260 — Stockholders’ Equity (Deficit): Preferred stock, $ 0.001 par value. Authorized, 20,000,000 shares; Series B Convertible Preferred Stock, par value $ 0.001 , issued and outstanding of 1,469,969 shares at June 30, 2025 and 1,412,865 shares at December 31, 2024 3,487 3,316 Preferred stock, $ 0.001 par value. Authorized, 20,000,000 shares; Series C Convertible Preferred Stock, stated value $ 1,037 at June 30, 2025, and issued and outstanding of 20,335 shares at June 30, 2025 and no shares issued and outstanding as of December 31, 2024 21,083 — Preferred stock, value 21,083 — Common stock, $ 0.001 par value. Authorized, 250,000,000 shares (Note 13); 20,142,463 and 11,198,977 shares outstanding as of June 30, 2025 and December 31, 2024, respectively 20 11 Additional paid-in capital 263,515 249,143 Accumulated deficit ( 250,575 ) ( 254,965 ) Total PAVmed Inc. Stockholders’ Equity (Deficit) 37,530 ( 2,495 ) Noncontrolling interests ( 9,371 ) ( 4,538 ) Total Stockholders’ Equity (Deficit) 28,159 ( 7,033 ) Total Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit) $ 43,893 $ 30,660 See accompanying notes to the unaudited condensed consolidated financial statements. 1 PAVMED 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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 Revenue $ 6 $ 979 $ 14 $ 1,989 Operating expenses: Cost of revenue 41 1,666 78 3,411 Sales and marketing 220 4,242 467 8,552 General and administrative 3,670 7,009 8,053 13,688 Amortization of acquired intangible assets — 105 — 477 Research and development 790 1,641 1,576 3,583 Total operating expenses 4,721 14,663 10,174 29,711 Operating loss ( 4,715 ) ( 13,684 ) ( 10,160 ) ( 27,722 ) Other income (expense): Interest income 8 110 14 182 Interest expense ( 4 ) ( 11 ) ( 7 ) ( 26 ) Change in fair value - equity method investment ( 10,643 ) — 10,361 — Change in fair value - Senior Secured Convertible Notes ( 200 ) ( 566 ) ( 249 ) ( 2,728 ) Debt extinguishments loss - Senior Secured Convertible Notes — ( 763 ) ( 58 ) ( 1,132 ) Debt modification expense — — — ( 2,000 ) Management fee income 3,150 — 6,300 — Grant income 80 — 99 — Other income (expense), net ( 7,609 ) ( 1,230 ) 16,460 ( 5,704 ) Income (loss) before provision for income tax ( 12,324 ) ( 14,914 ) 6,300 ( 33,426 ) Provision for income taxes — — — — Net income (loss) before noncontrolling interests ( 12,324 ) ( 14,914 ) 6,300 ( 33,426 ) Net loss attributable to the noncontrolling interests 403 4,087 747 7,387 Net income (loss) attributable to PAVmed Inc. ( 11,921 ) ( 10,827 ) 7,047 ( 26,039 ) Less: Series B Convertible Preferred Stock dividends earned ( 88 ) ( 81 ) ( 175 ) ( 161 ) Less: Series C Convertible Preferred Stock dividends earned ( 481 ) — ( 879 ) — Less: Deemed dividend on Series C Convertible Preferred Stock ( 818 ) — ( 1,607 ) — Less: Deemed dividend on Subsidiary Preferred Stock attributable to the noncontrolling interests — — — ( 7,496 ) Net income (loss) attributable to PAVmed Inc. common stockholders $ ( 13,308 ) $ ( 10,908 ) $ 4,386 $ ( 33,696 ) Per share information: Net income (loss) per share attributable to PAVmed Inc. common stockholders – basic $ ( 0.74 ) $ ( 1.19 ) $ 0.27 $ ( 3.78 ) Net income (loss) per share attributable to PAVmed Inc. common stockholders – diluted $ ( 0.74 ) $ ( 1.19 ) $ 0.13 $ ( 3.78 ) Weighted average common shares outstanding, basic 18,084,653 9,152,819 15,992,034 8,923,862 Weighted average common shares outstanding, diluted 18,084,653 9,152,819 54,272,962 8,923,862 See accompanying notes to the unaudited condensed consolidated financial statements. 2 PAVMED INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) for the THREE MONTHS ENDED June 30, 2025 (in thousands except number of shares and per share data - unaudited) Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Interest Total Mezzanine Equity PAVmed Inc. Stockholders’ Equity (Deficit) Series C Convertible Preferred Stock Series B Convertible Preferred Stock Series C Convertible Preferred Stock Common Stock Additional Paid-In Accumulated Non controlling Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Interest Total Balance - March 31, 2025 1,969 $ 2,000 1,441,135 $ 3,400 $ 22,511 $ 22,878 16,769,619 $ 17 $ 255,967 $ ( 237,268 ) $ ( 6,062 ) $ 38,932 Dividends declared - Series B Convertible Preferred Stock — — 28,834 87 — — — — — ( 87 ) — — Vest - restricted stock awards — — — — — — 1,016 — — — — — Impact of subsidiary equity transactions — — — — — — — — 5,507 — ( 5,507 ) — Issuance - vendor service agreement — — — — — — 75,000 — 54 — 104 158 Issuance - common stock - subsidiary, net of issuance costs — — — — — — — — — — 2,490 2,490 Conversions - Series C Convertible Preferred Stock — — — — ( 1,000 ) ( 1,016 ) 2,540,094 3 1,013 — — — Initial reclassification of Series C Convertible Preferred Stock from permanent equity to Mezzanine Equity due to partial redemption feature 1,240 1,260 — — ( 1,240 ) ( 1,260 ) — — — — — ( 1,260 ) Reclassification of Series C Convertible Preferred Stock to permanent equity from Mezzanine Equity due to increase in stated value due to dividend capitalization ( 64 ) — — — 64 — — — — — — — Dividends earned - Series C Convertible Preferred Stock — — — — — 481 — — — ( 481 ) — — Deemed dividend on Series C Convertible Preferred Stock — — — — — — — — 818 ( 818 ) — — Exercise Pre-funded warrants — — — — — — 756,734 — 1 — — 1 Stock-based compensation - PAVmed Inc. — — — — — — — — 155 — — 155 Stock-based compensation - subsidiary — — — — — — — — — — 7 7 Net income (loss) — — — — — — — — — ( 11,921 ) ( 403 ) ( 12,324 ) Balance - June 30, 2025 3,145 $ 3,260 1,469,969 $ 3,487 20,335 $ 21,083 20,142,463 $ 20 $ 263,515 $ ( 250,575 ) $ ( 9,371 ) $ 28,159 See accompanying notes to the unaudited unaudited condensed consolidated financial statements. 3 PAVMED INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) for the SIX MONTHS ENDED June 30, 2025 (in thousands, except number of shares and per share data - unaudited) Mezzanine Equity PAVmed Inc. Stockholders’ Equity (Deficit) Series C Convertible Preferred Stock Series B Convertible Preferred Stock Series C Convertible Preferred Stock Common Stock Additional Paid-In Accumulated Non controlling Shares Amount Shares Amount Shares Amount Shares Amount Capital Deficit Interest Total Balance - December 31, 2024 — $ — 1,412,865 $ 3,316 — $ — 11,198,977 $ 11 $ 249,143 $ ( 254,965 ) $ ( 4,538 ) $ ( 7,033 ) Dividends declared - Series B Convertible Preferred Stock — — 57,104 171 — — — — — ( 171 ) — — Issue common stock - PAVM ATM Facility — — — — — — 1,216,565 1 840 — — 841 Vest - restricted stock awards — — — — — — 2,032 — — — — — Conversions - Senior Secured Convertible Note — — — — — — 401,303 1 259 — — 260 Impact of subsidiary equity transactions — — — — — — — — 7,928 — ( 7,928 ) — Issuance - vendor service agreement — — — — — — 152,408 — 104 — 104 208 Issuance - common stock private placement offering with pre-funded warrants and Veris Health common stock issuance, net of issuance costs — — — — — — 2,574,350 3 1,419 — 948 2,370 Issuance - common stock - subsidiary, net of issuance costs — — — — — — — — — — 2,490 2,490 Issuance through debt exchange - Series C Convertible Preferred Stock, net of financing fees — — — — 22,347 22,347 — — ( 109 ) — — 22,238 Issuance through unsecured debt obligation cancellation - Series C Convertible Preferred Stock — — — — 2,653 2,653 — — — — — 2,653 Conversions - Series C Convertible Preferred Stock — — — — ( 1,520 ) ( 1,536 ) 3,840,094 4 1,532 — — — Initial reclassification of Series C Convertible Preferred Stock from permanent equity to Mezzanine Equity due to partial redemption feature 3,240 3,260 — — ( 3,240 ) ( 3,260 ) — — — — — ( 3,260 ) Reclassification of Series C Convertible Preferred Stock to permanent equity from Mezzanine Equity due to increase in stated value due to dividend capitalization ( 95 ) — — — 95 — — — — — — — Dividends earned - Series C Convertible Preferred Stock — — — — — 879 — — — ( 879 ) — — Deemed dividend on Series C Convertible Preferred Stock — — — — — — — — 1,607 ( 1,607 ) — — Exercise Pre-funded warrants — — — — — — 756,734 — — — — — Stock-based compensation - PAVmed Inc. — — — — — — — — 792 — — 792 Stock-based compensation - subsidiaries — — — — — — — — — — 300 300 Net income (loss) — — — — — — — — — 7,047 ( 747 ) 6,300 Balance - June 30, 2025 3,145 $ 3,260 1,469,969 $ 3,487 20,335 $ 21,083 20,142,463 $ 20 $ 263,515 $ ( 250,575 ) $ ( 9,371 ) $ 28,159 See accompanying notes to the unaudited condensed consolidated financial statements. 4 PAVMED INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) for the THREE MONTHS ENDED June 30, 2024 (in thousands, except number of shares and per share data - unaudited) Shares Amount Shares Amount Capital Deficit Interest Total PAVmed Inc. Stockholders’ Equity (Deficit) Series B Convertible Preferred Stock Common Stock Additional Paid-In Accumulated Non controlling Shares Amount Shares Amount Capital Deficit Interest Total Balance - March 31, 2024 1,331,336 $ 3,071 8,858,597 $ 9 $ 237,863 $ ( 309,723 ) $ 48,205 $ ( 20,575 ) Dividends declared - Series B Convertible Preferred Stock 26,640 80 — — — ( 80 ) — — Issue common stock - PAVM ATM Facility — — 200,000 — 198 — — 198 Vest - restricted stock awards — — 4,064 — — — — — Conversions - Senior Secured Convertible Note — — 461,963 1 805 — — 806 Conversions - subsidiary common stock - Senior Secured Convertible Note — — — — — — 1,854 1,854 Impact of subsidiary equity transactions — — — — 3,903 — ( 3,903 ) — Issuance - vendor service agreement — — 29,757 — 50 — 401 451 Issuance - subsidiary preferred stock (Series B-1) — — — — — — 11,634 11,634 Stock-based compensation - PAVmed Inc. — — — — 598 — — 598 Stock-based compensation - subsidiary — — — — 107 — 1,199 1,306 Net loss — — — — — ( 10,827 ) ( 4,087 ) ( 14,914 ) Balance - June 30, 2024 1,357,976 $ 3,151 9,554,381 $ 10 $ 243,524 $ ( 320,630 ) $ 55,303 $ ( 18,642 ) See accompanying notes to the unaudited condensed consolidated financial statements. 5 PAVMED INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) for the SIX MONTHS ENDED June 30, 2024 (in thousands, except number of shares and per share data - unaudited) PAVmed Inc. Stockholders’ Equity (Deficit) Series B Convertible Preferred Stock Common Stock Additional Paid-In Accumulated Non controlling Shares Amount Shares Amount Capital Deficit Interest Total Balance - December 31, 2023 1,305,213 $ 2,993 8,578,505 $ 9 $ 237,600 $ ( 294,433 ) $ 29,813 $ ( 24,018 ) Balance 1,305,213 $ 2,993 8,578,505 $ 9 $ 237,600 $ ( 294,433 ) $ 29,813 $ ( 24,018 ) Dividends declared - Series B Convertible Preferred Stock 52,763 158 — — — ( 158 ) — — Issue common stock - PAVM ATM Facility — — 333,299 — 693 — — 693 Vest - restricted stock awards — — 4,064 — — — — — Conversions - Senior Secured Convertible Note — — 574,424 1 1,112 — — 1,113 Conversions - subsidiary common stock - Senior Secured Convertible Note — — — — — — 2,541 2,541 Exercise - stock options of subsidiary — — — — — — 4 4 Purchase - Employee Stock Purchase Plan — — 34,332 — 62 — — 62 Purchase - subsidiary common stock - Employee Stock Purchase Plan — — — — — — 353 353 Impact of subsidiary equity transactions — — — — 2,169 — ( 2,169 ) — Issuance - vendor service agreement — — 29,757 — 50 — 401 451 Issuance - subsidiary preferred stock (Series A-1) — — — — — — 5,670 5,670 Exchange - subsidiary preferred stock (Series A and Series A-1) — — — — — — ( 24,295 ) ( 24,295 ) Issuance through exchange - subsidiary preferred stock (Series B and Series B-1) — — — — — — 31,790 31,790 Issuance through sale - subsidiary preferred stock (Series B and Series B-1) — — — — — — 24,129 24,129 Subsidiary deemed dividends on preferred stock attributable to noncontrolling interests — — — — — — ( 7,495 ) ( 7,495 ) Stock-based compensation - PAVmed Inc. — — — — 1,532 — — 1,532 Stock-based compensation - subsidiaries — — — — 306 — 1,948 2,254 Net Loss — — — — — ( 26,039 ) ( 7,387 ) ( 33,426 ) Net Income (Loss) — — — — — ( 26,039 ) ( 7,387 ) ( 33,426 ) Balance - June 30, 2024 1,357,976 $ 3,151 9,554,381 $ 10 $ 243,524 $ ( 320,630 ) $ 55,303 $ ( 18,642 ) Balance 1,357,976 $ 3,151 9,554,381 $ 10 $ 243,524 $ ( 320,630 ) $ 55,303 $ ( 18,642 ) See accompanying notes to the unaudited condensed consolidated financial statements. 6 PAVMED INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands, except number of shares and per share data - unaudited) 2025 2024 Six Months Ended June 30, 2025 2024 Cash flows from operating activities Net income (loss) - before noncontrolling interest (“NCI”) $ 6,300 $ ( 33,426 ) Adjustments to reconcile net income (loss) - before NCI to net cash used in operating activities Depreciation and amortization expense 65 891 Stock-based compensation 1,092 3,786 Change in fair value - equity method investment ( 10,361 ) — Amortization of common stock payment for vendor service agreement 103 163 Change in fair value - Senior Secured Convertible Notes 249 2,728 Debt extinguishment loss - Senior Secured Convertible Note 58 1,132 Non-cash lease expense ( 6 ) 5 Changes in operating assets and liabilities: Accounts receivable 15 ( 158 ) Prepaid expenses, deposits and current and other assets ( 259 ) 380 Accounts payable ( 268 ) ( 553 ) Accrued expenses and other current liabilities 253 287 Net cash flows used in operating activities ( 2,759 ) ( 24,765 ) Cash flows from investing activities Purchase of equipment ( 14 ) ( 45 ) Net cash flows used in investing activities ( 14 ) ( 45 ) Cash flows from financing activities Proceeds – issue of preferred stock - subsidiary — 29,798 Proceeds – issue of common stock and pre-funded warrants 2,370 — Proceeds – issue of common stock - subsidiary 2,490 — Payment – financing costs – debt exchange ( 109 ) — Payment – Senior Secured Convertible Note – acceleration floor payments — ( 531 ) Proceeds – issue of common stock - At-The-Market Facility 841 984 Proceeds – issue common stock – Employee Stock Purchase Plan — 62 Proceeds – subsidiary common stock – Employee Stock Purchase Plan — 353 Proceeds – exercise of stock options issued under equity plan of subsidiary — 4 Net cash flows provided by financing activities 5,592 30,670 Net increase in cash 2,819 5,860 Cash, beginning of period 1,185 19,639 Cash, end of period $ 4,004 $ 25,499 See accompanying notes to the unaudited condensed consolidated financial statements. 7 PAVMED 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 PAVmed Inc. (“PAVmed” or the “Company”) is structured to be a multi-product life sciences company organized to advance a pipeline of innovative healthcare technologies. Led by a team of highly skilled personnel with a track record of bringing innovative products to market, PAVmed is focused on innovating, developing, acquiring, and commercializing novel products that target unmet medical needs with large addressable market opportunities. Leveraging our corporate structure—a parent company that will establish distinct subsidiaries for each financed asset—we have the flexibility to raise capital at the PAVmed level to fund product development, or to structure financing directly into each subsidiary in a manner tailored to the applicable product, the latter of which is our current strategy given prevailing market conditions. Our current focus is multi-fold. We continue to support the commercial expansion and execution of EsoGuard, which is the flagship product of our subsidiary Lucid Diagnostics Inc. (Nasdaq: LUCD) (“Lucid” or “Lucid Diagnostics”), of which we remain the shareholder with the largest voting interest. In addition, through a separate majority-owned subsidiary, Veris Health (“Veris” or “Veris Health”), we are focused in the immediate term on entering into strategic partnership opportunities with leading academic oncology systems to expand access to the Veris Cancer Care Platform, while concurrently developing an implantable physiological monitor, designed to be implanted alongside a chemotherapy port, which will interface with the Veris Cancer Care Platform. In terms of other existing products and technologies, we have adopted an incubator-type platform where we are looking to obtain financing on a product-by-product basis as necessary to advance each asset to a meaningful inflection point along its path to commercialization. Finally, as resources permit, we will continue to explore external innovations that fulfill our project selection criteria without limiting ourselves to any target sector, specialty or condition. Note 2 — Liquidity and Going Concern The Company’s management is required to assess the Company’s ability to continue as a going concern for the one year period following 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, common stock purchase warrants, 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 less than $ 0.1 million of revenue for the three and six months ended June 30, 2025, and the Company expects to continue to experience recurring losses and to generate negative cash flows from operating activities in the near future. The Company realized net income attributable to PAVmed common stockholders of approximately $ 4.4 million and had net cash flows used in operating activities of approximately $ 2.8 million for the six months ended June 30, 2025. As of June 30, 2025, the Company had a working capital deficiency of approximately $ 5.0 million, with such working capital inclusive of the Senior Secured Convertible Notes classified as a current liability of an aggregate of approximately $ 6.8 million and approximately $ 4.0 million of cash. The Company’s ability to continue operations 12 months beyond the issuance of the financial statements, will depend upon its ability to control its operating costs within the limits of the amounts collected from its management service contracts with its non-consolidated subsidiaries, to substantially increase its revenues from the Veris Cancer Care platform, and to raise additional capital through various potential sources including equity or debt financings or refinancing or restructuring 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. 8 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 PAVmed and those of its wholly owned subsidiaries and majority-owned subsidiaries entities 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”). All intercompany transactions and balances have been eliminated in consolidation. The Company has a controlling financial interest in Veris Health Inc., with the corresponding noncontrolling interest included as a separate component of consolidated stockholders’ equity (deficit), including the recognition in the unaudited condensed consolidated statement of operations of a net loss attributable to the noncontrolling interest based on the respective minority-interest equity ownership of each subsidiary. As of September 10, 2024, PAVmed ceased to have a controlling financial interest in Lucid Diagnostics and therefore PAVmed’s consolidated results of operations include Lucid Diagnostics’ results of operations only through that date. PAVmed accounts for its investment in Lucid Diagnostics using the equity method and the fair value option. See below and Note 4, Equity Method Investment for a discussion on the impact of the deconsolidation of Lucid Diagnostics. See Note 14, Noncontrolling Interest , for a discussion of each of the subsidiaries noted above. 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 six months ended June 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. Cash The Company maintains its cash at a major financial institution with high credit quality. At times, the balance of its cash deposits may exceed federally insured limits. The Company has not experienced losses on deposits with commercial banks and financial institutions which exceed federally insured limits. Included in the Company’s cash as of June 30, 2025 and December 31, 2024 is $ 299 related to a restricted deposit account for a standby letter of credit associated with our corporate headquarters which has a lease maturity date in 2030. 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 reserve, 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 common stock purchase warrants. 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. 9 Note 3 — Summary of Significant Accounting Policies - continued 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. Until September 10, 2024, the date of deconsolidation of Lucid Diagnostics’ operations from the Company’s, the Company’s revenue was primarily generated by Lucid’s laboratory testing services utilizing its EsoGuard Esophageal DNA tests. The services were 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. Presently, the Company’s revenue is primarily derived from the Veris Cancer Care Platform and contracts with hospitals and cancer care centers. Similarly, ASC 606 five-step principles are equally applicable in determining recognized revenues for the period. The key aspects considered by the Company include the following: Contracts —The Company’s customer is primarily the patient, a hospital, or cancer care center, 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. Patient 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. 10 Note 3 — Summary of Significant Accounting Policies - continued Equity Method Investments Businesses that are not consolidated, but over which PAVmed exercises significant influence, are accounted for under the equity method of accounting. The determination as to whether or not PAVmed exercises significant influence with respect to a company depends on an evaluation of several factors, including, among others, representation on the company’s board of directors and equity ownership level, which is generally between a 20 % and a 50 % interest in the voting securities of an equity method business, as well as voting rights associated with PAVmed’s holdings in common stock in that company. PAVmed accounts for Lucid Diagnostics as an equity method investment beginning on September 10, 2024, and through the period ended June 30, 2025. Fair Value Option (“FVO”) Election Under a Securities Purchase Agreement dated March 31, 2022, the Company issued a Senior Secured Convertible Note dated April 4, 2022, referred to herein as the “April 2022 Senior Convertible Note”, and a Senior Secured Convertible Note dated September 8, 2022, as amended from time to time, referred to herein as the “September 2022 Senior Convertible Note”, which are accounted under the “fair value option election” as discussed below. Under a Securities Purchase Agreement dated March 13, 2023, Lucid Diagnostics issued a Senior Secured Convertible Note dated March 21, 2023, referred to herein as the “Lucid March 2023 Senior Convertible Note”, which is accounted under the “fair value option election”, through September 10, 2024, the date of Lucid’s deconsolidation from PAVmed’s results of operations, 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 April 2022 Senior Convertible Note, the September 2022 Senior Convertible Note and (through September 10, 2024, Lucid’s deconsolidation date) the Lucid March 2023 Senior 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 April 2022 Senior Convertible Note, the September 2022 Senior Convertible Note or (through September 10, 2024, Lucid’s deconsolidation date) the Lucid March 2023 Senior Convertible Note). See Note 9, Financial Instruments Fair Value Measurements , with respect to the FVO election; and Note 10, Debt , for a discussion of the April 2022 Senior Convertible Note, the September 2022 Senior Convertible Note and the Lucid March 2023 Senior Convertible Note. From and after September 10, 2024, the date of Lucid’s deconsolidation from PAVmed’s results of operation, the Company’s investment in Lucid is treated as an equity method investment accounted for using the fair value option. Shares of Lucid Diagnostics common stock have a readily determinable fair value classified as Level 1, in which the fair value is determined based upon quoted market prices in an active market. 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. 11 Note 3 — Summary of Significant Accounting Policies - continued 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 impact this update will have on its unaudited condensed consolidated financial statements and disclosures. Note 4 — Equity Method Investment After the Company’s deconsolidation of Lucid, the Company accounts for its investment in Lucid as an equity method investment with the election of the fair value option. Due to the Company’s continuing involvement and significant influence over operating and financial policies, Lucid is considered a related party of the Company. The following presents summarized financial information related to Lucid accounted for under the equity method as of June 30, 2025. This aggregate information has been compiled from the financial statements of Lucid. Schedule of Aggregate Information From the Financial Statements June 30, 2025 Cash $ 31,123 Other current assets 2,710 Non-current assets 4,837 Total assets 38,670 Current liabilities 29,426 Non-current liabilities 1,382 Shareholders’ equity 7,862 Total liabilities and stockholders’ equity $ 38,670 Three Months ended June 30, 2025 Six Months ended June 30, 2025 Revenue $ 1,163 $ 1,991 Net income (loss) attributable to common stockholders $ ( 7,888 ) $ ( 43,906 ) At June 30, 2025 and December 31, 2024, the fair value of the Company’s investment in Lucid was $ 36.0 million and $ 25.6 million, respectively. The Company recognized an unrealized loss on its investment in Lucid of $ 10.6 million and an unrealized gain on its investment in Lucid of $ 10.4 million in the accompanying unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2025, respectively. The fair value of shares of Lucid’s common stock held by the Company was determined using the closing price of Lucid’s common stock per share on June 30, 2025 and December 31, 2024 of $ 1.15 and $ 0.819 , respectively. At June 30, 2025 and December 31, 2024, PAVmed held approximately 27.1 % and 40 %, respectively, of Lucid’s common stock voting interest. 12 Note 4 — Equity Method Investment - continued Lucid - Management Services Agreement Lucid’s daily operations are also managed in part by personnel employed by the Company, for which the Company records management fee income, referred to as the “MSA Fee”, according to the provisions of a Management Services Agreement (“MSA”) with Lucid. The MSA does not have a termination date, but may be terminated by Lucid. The MSA Fee is charged on a monthly basis and is subject to periodic adjustment corresponding with changes in the services provided by the Company’s personnel to Lucid, with any such change in the MSA Fee being subject to approval of the boards of directors of each of the Company and Lucid. The monthly fee due to the Company from Lucid is $ 1,050 . During the three and six months ended June 30, 2025, the MSA fee income was $ 3,150 and $ 6,300 , respectively. In connection with the Exchange, the September 2022 Senior Convertible Note was amended to provide that MSA Fees will be paid in cash, and that the Company will be required to set aside 50% of such payments received after January 31, 2025, unless certain conditions are met (the “MSA Reserve Requirement”). However, the Company and the holder have entered into a waiver, pursuant to which, among other things, the holder agreed to waive the MSA Reserve Requirement through September 30, 2025. Note 5 — Revenue from Contracts with Customers Revenue Recognized The Company recognized less than $ 0.1 million in each of the three and six months ended June 30, 2025, in each case from subscription revenue derived from its Veris Health Cancer Care Platform. In addition, the Company’s revenue for the three and six months ended June 30, 2024 was $ 979 and $ 1,989 , respectively, primarily 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. Cost of Revenue Until September 10, 2024, the date of deconsolidation of Lucid Diagnostics from PAVmed’s consolidated results, 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. Presently, cost of revenues of $ 41 and $ 78 for the three and six months ended June 30, 2025, respectively, are principally from amounts incurred in the delivery of patient services including web hosting costs, patient devices, and compensation costs. The Company’s cost of revenue for the three and six months ended June 30, 2025 was less than $ 0.1 million, primarily associated with Veris subscription revenue. The Company’s cost of revenue for the three and six months ended June 30, 2024 was $ 1,666 and $ 3,411 , respectively, primarily related to costs for our laboratory operations and EsoCheck device supplies. 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 June 30, 2025 December 31, 2024 Advanced payments to service providers and suppliers $ 320 $ 115 Prepaid insurance 528 233 Deposits 373 347 Veris Box supplies 260 266 Total prepaid expenses, deposits and other current assets $ 1,481 $ 961 13 Note 7 — Leases The Company’s future lease payments as of June 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 Minimum Lease Payments for Operating Leases 2025 (remainder of year) $ 357 2026 724 2027 594 2028 471 2029 481 Thereafter 367 Total lease payments $ 2,994 Less: imputed interest ( 484 ) Present value of lease liabilities $ 2,510 Supplemental disclosure of cash flow information related to the Company’s cash and non-cash activities with its leases are as follows: Schedule of Supplemental Balance Sheet Information Related to Cash and Non-cash Activities with Leases 2025 2024 Six Months Ended June 30, 2025 2024 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 352 $ 942 Non-cash investing and financing activities Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ 2,285 Weighted-average remaining lease term - operating leases (in years) 4.61 4.40 Weighted-average discount rate - operating leases 7.875 % 7.875 % As of June 30, 2025 and December 31, 2024, the Company’s right-of-use assets from operating leases were $ 2,256 and $ 2,500 , respectively, which are reported in operating lease right-of-use assets in the unaudited condensed consolidated balance sheets. As of June 30, 2025 and December 31, 2024, the Company had outstanding operating lease obligations of $ 2,510 and $ 2,760 , respectively, of which $ 542 and $ 513 , respectively, are reported in operating lease liabilities, current portion and $ 1,968 and $ 2,247 , 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. Note 8 — Commitment and Contingencies Other Matters In the ordinary course of PAVmed 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. 14 Note 9 — Financial Instruments Fair Value Measurements Recurring Fair Value Measurements The fair value hierarchy table for the periods indicated is as follows: Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis Fair Value Measurement on a Recurring Basis at Reporting Date Using 1 Level-1 Inputs Level-2 Inputs Level-3 Inputs Total June 30, 2025 Assets: Investment in Lucid Diagnostics, Inc common stock $ 35,998 $ — $ — $ 35,998 Total assets at fair value $ 35,998 $ — $ — $ 35,998 Liabilities: Senior Secured Convertible Note - September 2022 — — 6,800 6,800 Total liabilities at fair value $ — $ — $ 6,800 $ 6,800 Level-1 Inputs Level-2 Inputs Level-3 Inputs Total December 31, 2024 Assets: Investment in Lucid Diagnostics, Inc common stock $ 25,637 $ — $ — $ 25,637 Total assets at fair value $ 25,637 $ — $ — $ 25,637 Liabilities: Senior Secured Convertible Note - April 2022 $ — $ — $ 20,300 $ 20,300 Senior Secured Convertible Note - September 2022 — — 8,800 8,800 Total liabilities at fair value $ — $ — $ 29,100 $ 29,100 1 There were no transfers between the respective Levels during the period ended June 30, 2025. As discussed in Note 10, Debt , the Company issued Senior Secured Convertible Notes dated April 4, 2022 and September 8, 2022, with an initial $ 27.5 million face value principal (“April 2022 Senior Convertible Note”) and an initial $ 11.25 million face value principal (as amended from time to time, “September 2022 Senior Convertible Note”), respectively. Both convertible notes are accounted for under the ASC 825-10-15-4 fair value option (“FVO”) election, wherein, the financial instrument is initially measured at its issue-date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at each reporting period date. Lucid Diagnostics issued a Senior Secured Convertible Note dated March 21, 2023, with an initial $ 11.1 million face value principal (“Lucid March 2023 Senior Convertible Note”). From and after September 10, 2024, the date of Lucid’s deconsolidation from PAVmed’s results of operation, the Company’s investment in Lucid has been accounted for as an equity method investment. For the periods prior to the deconsolidation, Lucid’s convertible note is presented in PAVmed’s balance sheets and is also accounted for under the ASC 825-10-15-4 fair value option (“FVO”) election, wherein, the financial instrument is initially measured at its 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. 15 Note 9 — Financial Instruments Fair Value Measurements - continued The estimated fair value of the September 2022 Senior Convertible Note as of June 30, 2025 and the estimated fair value of the April 2022 Senior Convertible Note and the September 2022 Senior Convertible Note as of December 31, 2024, were 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 September 2022 Senior Convertible Note: June 30, 2025 Fair Value $ 6,800 Face value principal payable $ 6,579 Required rate of return 9.100 % Conversion Price $ 1.07 Value of common stock $ 0.60 Expected term (years) 0.50 Volatility 90.00 % Risk free rate 4.20 % Dividend yield — % April 2022 Senior Convertible Note: December 31, 2024 September 2022 Senior Convertible Note: December 31, 2024 Fair Value $ 20,300 $ 8,800 Face value principal payable $ 17,602 $ 7,627 Required rate of return 9.100 % 8.900 % Conversion Price $ 75.00 $ 75.00 Value of common stock $ 0.63 $ 0.63 Expected term (years) 0.04 - 0.26 0.69 Volatility 160.00 % 160.00 % Risk free rate 4.27 % - 4.31 % 4.12 % Dividend yield — % — % The estimated fair values recognized utilized PAVmed’s common stock price, along with certain Level 3 inputs (as presented in the respective tables 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 respective common stock prices, as compared to the floor price on conversions, the dividend yields, the risk-free rates based on U.S. Treasury security yields, and certain other Level-3 inputs including, probability weighting on the likelihood as of December 31, 2024 of shareholder approval of the then-pending exchange of the April 2022 Senior Convertible Note and a portion of the September 2022 Senior Convertible Note for shares of the Company’s Series C Preferred Stock (which exchange was approved and consummated in January 2025), assumptions regarding the estimated volatility in the value of the respective common stock prices. Changes in these assumptions can materially affect the recognized estimated fair values. 16 Note 10 — Debt The fair value and face value principal outstanding of the Senior 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 September 2022 Senior Convertible Note December 31, 2025 7.875 % $ 1.068 6,579 6,800 Balance as of June 30, 2025 $ 6,579 $ 6,800 Contractual Maturity Date Stated Interest Rate Conversion Price per Share Face Value Principal Outstanding Fair Value April 2022 Senior Convertible Note April 4, 2025 7.875 % $ 75.00 $ 17,602 $ 20,300 September 2022 Senior Convertible Note September 8, 2025 7.875 % $ 75.00 7,627 8,800 Balance as of December 31, 2024 $ 25,229 $ 29,100 The changes in the fair value of debt during the three and six months ended June 30, 2025 is as follows: Schedule of Changes in Fair Value of Debt April 2022 Senior Convertible Note September 2022 Senior Convertible Note Lucid March 2023 Senior Convertible Note Sum of Balance Sheet Fair Value Components Other Income (expense) Fair Value - March 31, 2025 $ — $ 6,600 $ — $ 6,600 $ — Installment repayments – common stock Non-installment payments – common stock Principal paydown through exchange Non-installment payment through exchange Change in fair value — 200 — 200 ( 200 ) Fair Value at June 30, 2025 $ — $ 6,800 $ — $ 6,800 - Other Income (Expense) - Change in fair value – three month period ended June 30, 2025 $ ( 200 ) April 2022 Senior Convertible Note September 2022 Senior Convertible Note Sum of Balance Sheet Fair Value Components Other Income (expense) Fair Value - December 31, 2024 $ 20,300 $ 8,800 $ 29,100 $ — Installment repayments – common stock — ( 176 ) ( 176 ) — Non-installment payments – common stock — ( 26 ) ( 26 ) — Principal paydown through exchange ( 17,602 ) ( 871 ) ( 18,473 ) — Non-installment payment through exchange ( 2,772 ) ( 1,102 ) ( 3,874 ) — Change in fair value 74 175 249 ( 249 ) Fair Value at June 30, 2025 $ — $ 6,800 $ 6,800 Other Income (Expense) - Change in fair value – six months ended June 30, 2025 $ ( 249 ) 17 Note 10 — Debt - continued The changes in the fair value of debt during the three and six months ended June 30, 2024 is as follows: April 2022 Senior Convertible Note September 2022 Senior Convertible Note Lucid March 2023 Senior Convertible Note Sum of Balance Sheet Fair Value Components Other Income (expense) Fair Value - March 31, 2024 $ 18,800 $ 13,600 $ 13,140 $ 45,540 $ — Installment repayments – common stock — ( 700 ) ( 1,125 ) ( 1,825 ) — Non-installment payments – common stock — ( 65 ) ( 216 ) ( 281 ) — Change in fair value 400 765 ( 599 ) 566 ( 566 ) Fair Value at June 30, 2024 $ 19,200 $ 13,600 $ 11,200 $ 44,000 - Other Income (Expense) - Change in fair value – three months period ended June 30, 2024 $ ( 566 ) April 2022 Senior Convertible Note September 2022 Senior Convertible Note Lucid March 2023 Senior Convertible Note Sum of Balance Sheet Fair Value Components Other Income (expense) Fair Value - December 31, 2023 $ 19,000 $ 11,250 $ 13,950 $ 44,200 $ — Fair Value - Beginning of Period $ 19,000 $ 11,250 $ 13,950 $ 44,200 $ — Installment repayments – common stock — ( 980 ) ( 1,208 ) ( 2,188 ) — Non-installment payments – common stock — ( 88 ) ( 652 ) ( 740 ) — Change in fair value 200 3,418 ( 890 ) 2,728 ( 2,728 ) Fair Value at June 30, 2024 $ 19,200 $ 13,600 $ 11,200 $ 44,000 - Fair Value - Ending of Period $ 19,200 $ 13,600 $ 11,200 $ 44,000 - Other Income (Expense) - Change in fair value – six months ended June 30, 2024 $ ( 2,728 ) 18 Note 10 — Debt - continued PAVmed - Senior Secured Convertible Notes The Company issued a Senior Secured Convertible Note dated April 4, 2022, referred to herein as the “April 2022 Senior Convertible Note”, with such note having a $ 27.5 million face value principal. On November 15, 2024, the Company entered into an Exchange Agreement (the “Debt Exchange Agreement”) with the holder of the April 2022 Senior Convertible Note and the September 2022 Senior Convertible Note (as defined below). As described below, the April 2022 Senior Convertible Note was satisfied in full in connection with the consummation in January 2025 of the transactions contemplated by the Debt Exchange Agreement. The Company issued an additional Senior Secured Convertible Note dated September 8, 2022, referred to herein as the “September 2022 Senior Convertible Note”, with such note having a $ 11.25 million face value principal, a 7.875 % annual stated interest rate, a contractual conversion price of $ 75.00 per share (which conversion price, in connection with the Exchange, was reduced to $ 1.068 per share as of January 17, 2025) of the Company’s common stock. The September 2022 Senior Convertible Note may be converted into shares of common stock of the Company at the holder’s election. The Company is subject to financial covenants requiring: (i) a minimum of $8.0 million of available cash at all times; (ii) the ratio of (a) the outstanding principal amount of the total senior convertible notes outstanding, accrued and unpaid interest thereon and accrued and unpaid late charges to (b) the Company’s average market capitalization over the prior ten trading days, to not exceed 30% (the “Debt to Market Cap Ratio Test”); and (iii) the Company’s market capitalization to at no time be less than $75 million (the “Market Cap Test” and, together with the Debt to Market Cap Ratio Test, the “Financial Tests”) . The Investor agreed to waive any such non-compliance in connection with the consummation of the Exchange, through December 31, 2025. In the six months ended June 30, 2025, approximately $ 176 , of principal repayments along with approximately $ 26 of interest expense thereon, were settled through the issuance of 401,303 , shares of common stock of the Company, with such shares having a fair value of approximately $ 260 , (with such fair value measured as the respective conversion date quoted closing price of the common stock of the Company). The conversions resulted in debt extinguishment losses of $ 58 in the six months ended June 30, 2025. The average conversion price of $ 0.50 per share reflected a temporary price reduction consented to by the board of directors in accordance with the underlying debt agreements. Debt Exchange Agreement On November 15, 2024, the Company entered into the Debt Exchange Agreement with the holder of the April 2022 Senior Convertible Note and the September 2022 Senior Convertible Note. The Debt Exchange Agreement provided for the exchange of $ 22.3 million in principal amount of the April 2022 Senior Convertible Note and the September 2022 Senior Convertible Note and interest thereon for 22,347 shares of Series C Convertible Preferred Stock, par value $ 0.001 per share (the “Series C Preferred Stock”), of the Company. On January 17, 2025, the parties consummated the transactions contemplated by the Debt Exchange Agreement. Following consummation of the transactions contemplated by the Debt Exchange Agreement, the April 2022 Senior Convertible Note was satisfied in full, and the outstanding principal balance of the remaining September 2022 Senior Convertible Note was approximately $ 6.6 million. On November 20, 2024, the Company entered into a Securities Purchase Agreement (the “Series C Securities Purchase Agreement”) with the Holder of the April 2022 Senior Convertible Note and the September 2022 Senior Convertible Note. The Series C Securities Purchase Agreement provided for the purchase of 2,653 shares of Series C Preferred Stock at a price of $ 1,000 per share, with the purchase price to be satisfied through the cancellation of $ 2.6 million of certain unsecured debt obligations owed by the Company to the holder (the “Purchase”). On January 24, 2025, after satisfaction of all conditions to closing, the parties consummated the Purchase. 19 Note 10 — Debt - continued Under the Debt Exchange Agreement discussed above, effective as of consummation on the Exchange as of January 17, 2025, the Company also agreed to certain amendments and modifications to the September 2022 Convertible Note, including, without limitation, that the conversion price thereunder was reset to $ 1.068 ; that the maturity date was extended to December 31, 2025; that any change of control or disposition by the Company of its shares of Lucid common stock would require the prior written consent of the Required Holders (as defined in the September 2022 Convertible Note); certain other terms and conditions regarding payments under the MSA and the application of the same (including that all MSA payments from Lucid must be made in cash); that the Company waives its right to redeem the September 2022 Convertible Note so long as any shares of Series C Preferred Stock are outstanding; that the Holder waives, until December 31, 2025, the financial covenants under the September 2022 Convertible Note requiring that (i) the amount of the Company’s available cash equal or exceed $ 8.0 million at all times, (ii) the ratio of (a) the outstanding principal amount of the September 2022 Convertible Note, accrued and unpaid interest thereon and accrued and unpaid late charges to (b) the Company’s average market capitalization over the prior ten trading days, not exceed 30%, and (iii) that the Company’s market capitalization shall at no time be less than $ 75 million; and that so long as any shares of Series C Preferred Stock remain outstanding, the Holder will be entitled to exchange all, or any portion, of the September 2022 Convertible Note (including any interest that would accrue thereon through the maturity date thereof) into shares of Lucid common stock held by the Company, at an exchange price per share of Lucid common stock equal to $ 0.85 per share (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events), subject to certain beneficial ownership limitations. Lucid Diagnostics - Senior Secured Convertible Note Following the deconsolidation of Lucid, the Lucid March 2023 Senior Convertible Note is no longer reflected in the Company’s consolidated balance sheets. During the three and six months ended June 30, 2024, the Company recognized debt extinguishment losses in total of approximately $ 763 and $ 1,132 , respectively , in connection with the Company or Lucid (as applicable) issuing shares of its common stock for principal repayments on convertible debt mentioned above. See Note 9, Financial Instruments Fair Value Measurements , for a further discussion of fair value assumptions. Note 11 — Stock-Based Compensation PAVmed Inc. 2014 Long-Term Incentive Equity Plan The PAVmed Inc. 2014 Long-Term Incentive Equity Plan (the “PAVmed 2014 Equity Plan”) is designed to enable PAVmed to offer employees, officers, directors, and consultants, as defined, an opportunity to acquire shares of common stock of PAVmed. The types of awards that may be granted under the PAVmed 2014 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 PAVmed compensation committee. A total of 4,912,140 shares of common stock of PAVmed are reserved for issuance under the PAVmed 2014 Equity Plan, with 3,560,881 shares available for grant as of June 30, 2025. The share reservation is not diminished by a total of 61,146 PAVmed stock options and restricted stock awards granted outside the PAVmed 2014 Equity Plan as of June 30, 2025. In January 2025, the number of shares available for grant was increased by 576,170 in accordance with the evergreen provisions of the plan. In June 2025, the Company received shareholder approval to increase the number of shares available for grant by 2,500,000 . 20 Note 11 — Stock-Based Compensation - continued PAVmed Stock Options PAVmed stock options granted under the PAVmed 2014 Equity Plan and stock options granted outside such plan are summarized as follows: Schedule of Summarizes Information About Stock Options Number of Stock Options Weighted Average Exercise Price Remaining Contractual Term (Years) Intrinsic Value (2) Outstanding stock options at December 31, 2024 1,065,319 $ 25.50 6.5 $ 341 Granted (1) 255,000 $ 1.51 Exercised — $ — Forfeited ( 498,176 ) $ 23.23 Outstanding stock options at June 30, 2025 (3) 822,143 $ 19.44 6.6 $ — Vested and exercisable stock options at June 30, 2025 596,926 $ 25.96 5.7 $ — (1) Stock options granted under the PAVmed 2014 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 PAVmed common stock on each of June 30, 2025 and December 31, 2024 and the exercise price of the underlying PAVmed 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 54,480 and 60,054 stock options granted outside the PAVmed 2014 Equity Plan, as of June 30, 2025 and December 31, 2024, respectively. In January 2025, the Company accepted from employees the voluntary forfeiture of approximately 494,202 of previously granted PAVmed stock options, each with an exercise price greater than $ 4.00 per share and collectively with a weighted average exercise price of $ 23.38 per share. None of the forfeitures were from officers or board members. Subsequent to June 30, 2025, on July 16, 2025, the Company granted 526,500 stock options to employees under the PAVmed 2014 Equity Plan with a weighted average exercise price of $ 0.58 . One-third of each option was deemed vested on the date of grant, with the balance vesting ratably over the next eight quarters beginning September 30, 2025. PAVmed Restricted Stock Awards PAVmed restricted stock awards granted under the PAVmed 2014 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 324,431 $ 9.80 Granted — — Vested ( 2,032 ) 5.79 Forfeited — — Unvested restricted stock awards as of June 30, 2025 322,399 $ 9.80 Subsequent to June 30, 2025, on July 16, 2025, the Company awarded 362,000 shares of restricted stock to employees under the PAVmed 2014 Equity Plan. Each award will vest in full on or about the third anniversary of the award date. Lucid Diagnostics Inc. 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 above. 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. Following the deconsolidation of Lucid, the Lucid Diagnostics 2018 Long-Term Equity Plan is no longer reflected in the Company’s unaudited condensed consolidated statements of operations. Lucid continues to be responsible for administering its equity plan. See Note 4, Equity Method Investment , for additional information on the deconsolidation of Lucid Diagnostics. 21 Note 11 — Stock-Based Compensation - continued Consolidated Stock-Based Compensation Expense The consolidated stock-based compensation expense recognized by each of PAVmed and (through September 10, 2024, the date of PAVmed’s deconsolidation of Lucid) Lucid Diagnostics for both the PAVmed 2014 Equity Plan and the Lucid Diagnostics 2018 Equity Plan, with respect to stock options and restricted stock awards as discussed above, for the periods indicated, was as follows: Schedule of Stock-Based Compensation Expense 2025 2024 2025 2024 Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Cost of revenue $ — $ 44 $ — $ 80 Sales and marketing expenses 1 387 46 790 General and administrative expenses 148 1,214 944 2,292 Research and development expenses 13 259 102 624 Total stock-based compensation expense $ 162 $ 1,904 $ 1,092 $ 3,786 Stock-Based Compensation Expense Recognized by Lucid Diagnostics As noted, the consolidated stock-based compensation expense presented above is inclusive of stock-based compensation expense recognized by Lucid Diagnostics (through September 10, 2024, the date of PAVmed’s deconsolidation of Lucid) inclusive of each of: stock options granted under the PAVmed 2014 Equity Plan to the three physician inventors of the intellectual property underlying the Amended CWRU License Agreement; and stock options and restricted stock awards granted to employees of PAVmed and non-employee consultants under the Lucid Diagnostics 2018 Equity Plan. The stock-based compensation expense recognized by Lucid Diagnostics (through September 10, 2024, the date of PAVmed’s deconsolidation of Lucid) for both the PAVmed 2014 Equity Plan and the Lucid Diagnostics 2018 Equity Plan, with respect to stock options and restricted stock awards as discussed above, for the periods indicated, was as follows: Schedule of Stock-Based Compensation Expense Recognized by Lucid Diagnostics Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 Lucid Diagnostics 2018 Equity Plan – cost of revenue $ 33 $ 58 Lucid Diagnostics 2018 Equity Plan – sales and marketing 326 597 Lucid Diagnostics 2018 Equity Plan – general and administrative 609 937 Lucid Diagnostics 2018 Equity Plan – research and development 138 258 PAVmed 2014 Equity Plan - cost of revenue 11 22 PAVmed 2014 Equity Plan - sales and marketing 39 118 PAVmed 2014 Equity Plan - general and administrative 1 4 PAVmed 2014 Equity Plan - research and development 44 141 Total stock-based compensation expense – recognized by Lucid Diagnostics $ 1,201 $ 2,135 Total stock-based compensation expense $ 1,201 $ 2,135 The consolidated unrecognized stock-based compensation expense and weighted average remaining requisite service period with respect to stock options and restricted stock awards issued under the PAVmed 2014 Equity Plan, as discussed above, is as follows: Schedule of Unrecognized Compensation Expense Unrecognized Expense Weighted Average Remaining Service Period (Years) PAVmed 2014 Equity Plan Stock Options $ 238 1.8 Restricted Stock Awards $ 270 1.4 22 Note 11 — Stock-Based Compensation - continued Stock-based compensation expense recognized with respect to stock options granted under the PAVmed 2014 Equity Plan was based on a weighted average estimated fair value of such stock options of $ 0.42 and $ 1.46 per share during the six months ended June 30, 2025 and 2024, respectively, calculated using the following weighted average Black-Scholes valuation model assumptions below. Schedule of Fair Values of Stock Options Granted Using Black-scholes Valuation Model Assumptions Six Months Ended June 30, 2025 2024 Expected term of stock options (in years) 5.8 5.8 Expected stock price volatility 101 % 90 % Risk free interest rate 3.9 % 4.3 % Expected dividend yield — % — % 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 $ 0.80 per share during the six months ended June 30, 2024, calculated using the following weighted average Black-Scholes valuation model assumptions: Schedule of Fair Values of Stock Options Granted Using Black-scholes Valuation Model Assumptions Six Months Ended June 30, 2024 Expected term of stock options (in years) 5.7 Expected stock price volatility 74 % Risk free interest rate 4.4 % Expected dividend yield — % PAVmed Inc. Employee Stock Purchase Plan (“PAVmed ESPP”) Effective September 18, 2024, PAVmed’s compensation committee temporarily suspended any participation in the PAVmed ESPP. Accordingly, no shares of common stock of the Company have been purchased under the PAVmed ESPP since March 31, 2024. A total of 34,332 shares of common stock of the Company were purchased for proceeds of approximately $ 62 on March 31, 2024, under the PAVmed ESPP. The PAVmed ESPP has a total reserve of 466,668 shares of common stock of PAVmed of which 306,530 shares are available for issue as of June 30, 2025. In January 2025, the number of shares available-for-issue was increased by 166,667 in accordance with the evergreen provisions of the plan. Note 12 — Preferred Stock As of June 30, 2025 and December 31, 2024, there were 1,469,969 and 1,412,865 shares of PAVmed Series B Convertible Preferred Stock, classified in permanent equity, issued and outstanding, respectively. PAVmed Series B Convertible Preferred Stock Dividends The Series B Convertible Preferred Stock is issued pursuant to the PAVmed Inc. Certificate of Designation of Preferences, Rights, and Limitations of Series B Convertible Preferred Stock (“Series B Convertible Preferred Stock Certificate of Designation”), has a par value of $ 0.001 per share, no voting rights, a stated value of $ 3.00 per share, and was immediately convertible upon its issuance. At the holders’ election, fifteen shares of Series B Convertible Preferred Stock are currently convertible into one share of common stock of the Company, subject to further adjustment for the effect of future stock dividends, stock splits or similar events affecting the Company’s common stock. The Series B Convertible Preferred Stock shall not be redeemed for cash and under no circumstances shall the Company be required to net cash settle the Series B Convertible Preferred Stock. The PAVmed Inc. Series B Convertible Preferred Stock dividends are 8.0 % per annum based on the $ 3.00 per share stated value of the Series B Convertible Preferred Stock, with such dividends compounded quarterly, accumulate, and are payable in arrears upon being declared by the Company’s board of directors. Such dividends may be settled, at the discretion of the board of directors, through any combination of the issue of additional shares of Series B Convertible Preferred Stock, the issue shares of common stock of the Company, and /or cash payment. 23 Note 12 — Preferred Stock - continued PAVmed Series B Convertible Preferred Stock Dividends Earned The Series B Convertible Preferred Stock dividends earned are included in the calculation of basic and diluted net loss attributable to PAVmed common stockholders for each of the respective corresponding periods presented in the accompanying consolidated statement of operations, inclusive of $ 88 and $ 175 of such dividends earned in the three and six months ended June 30, 2025, respectively; and $ 81 and $ 161 of such dividends earned in the three and six months ended June 30, 2024, respectively. PAVmed Series B Convertible Preferred Stock Dividends Declared During the six months ended June 30, 2025, the Company’s board of directors declared an aggregate of approximately $ 171 of Series B Convertible Preferred Stock dividends, inclusive of $ 85 earned as of December 31, 2024; and $ 86 earned as of March 31, 2025, with such dividends settled by the issue of an additional aggregate 57,104 additional shares of Series B Convertible Preferred Stock, inclusive of 28,270 shares issued with respect to the dividends earned as of December 31, 2024; and 28,834 shares issued with respect to the dividends earned as of March 31, 2025. During the six months ended June 30, 2024, the Company’s board of directors declared an aggregate of approximately $ 158 of Series B Convertible Preferred Stock dividends, inclusive of $ 78 earned as of December 31, 2023; and $ 80 earned as of March 31, 2024, with such dividends settled by the issue of an additional aggregate 52,763 additional shares of Series B Convertible Preferred Stock, inclusive of 26,123 shares issued with respect to the dividends earned as of December 31, 2023; and 26,640 shares issued with respect to the dividends earned as of March 31, 2024. Subsequent to June 30, 2025, on August 5, 2025, the Company’s board of directors declared a PAVmed Series B Convertible Preferred Stock dividend, earned as of June 30, 2025, of $ 88 , to be settled by the issue of 29,415 additional shares of Series B Convertible Preferred Stock. The PAVmed Series B Convertible Preferred Stock dividends are recognized as a dividend payable liability only upon the dividend being declared payable by the Company’s board of directors. Accordingly, the dividends declared payable subsequent to the date of the accompanying consolidated balance sheet were not recognized as a dividend payable liability as the Company’s board of directors had not declared the dividends payable as of each such date. PAVmed Series C Convertible Preferred Stock The Series C Preferred Stock is issued pursuant to the PAVmed Inc. Certificate of Designation of Preferences, Rights, and Limitations of Series C Convertible Preferred Stock (“Series C Convertible Preferred Stock Certificate of Designation”) and has a par value of $ 0.001 per share. Each share of Series C Preferred Stock has a stated value of $ 1,000 (plus the amount of any dividends thereon that are capitalized), and entitles the holder thereof to a preferred dividend at a rate of 7.875 % per annum, payable quarterly in arrears. The Series C Preferred Stock is entitled to vote with the holders of shares of Common Stock, voting together as one class, on all matters in which the holders of the preferred shares are permitted to vote with the class of shares of Common Stock pursuant to applicable law, on an as-converted basis (subject to certain limitations, including the beneficial ownership limitation described below). The Series C Preferred Stock is pari passu with the Series B Convertible Preferred Stock, and is senior to all of the Company’s other equity securities. Upon liquidation, a holder of Series C Preferred Stock will be entitled to receive in cash out of the assets of the Company, before any amount would be paid to the holders of any of shares of the Company’s common stock, but pari passu with the holders of any Series B Preferred Stock then outstanding, an amount per share equal to the greater of (A) the sum of (i) 110% of the stated value (plus any accrued and unpaid dividends or other amounts then payable thereon) of such share of Series C Preferred Stock then outstanding and (ii) a ratable portion of 100% of the stated value (plus any accrued and unpaid dividends or other amounts then payable thereon) of the Series B Preferred Stock then outstanding and (B) the amount per share such holder would receive if such holder converted such share of Series C Preferred Stock into the Company’s common stock immediately prior to the date of such payment . Each share of Series C Preferred Stock, plus accrued and unpaid dividends thereon, is convertible at any time, in whole or in part, at the holder’s option, into shares of the Company’s common stock at an initial fixed conversion price of $ 1.068 per share, subject to certain adjustments. 24 Note 12 — Preferred Stock - continued At any time following the occurrence of a Triggering Event (as defined below), a holder of shares of the Series C Preferred Stock has the right to elect to convert shares of Series C Preferred Stock into the Company’s common stock at an alternate conversion price equal to the lower of: (i) the fixed conversion price then in effect, and (ii) the lowest of (A) 80% of the VWAP of the Company’s common stock as of the trading day immediately preceding the delivery or deemed delivery of the applicable notice of conversion, (B) 80% of the VWAP of the Company’s common stock as of the trading day of the delivery or deemed delivery of the applicable notice of conversion, and (C) 80% of the average VWAP of the Company’s common stock for each of the two trading days with the lowest VWAP of the Company’s common stock during the ten consecutive trading day period ending and including the trading day immediately prior to the delivery or deemed delivery of the applicable notice of conversion, but in the case of clause (ii), not less than $0.2136 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events) (such price, the “Alternate Conversion Price”). The term “Triggering Event” includes events that would constitute an event of default under the September 2022 Senior Convertible Note, in addition to the failure of the Company to complete a Qualified Company Optional Redemption (as defined below) by March 31, 2025 (the “QCOR Triggering Event”), although the holder of the Series C Preferred Stock has waived the occurrence of any QCOR Triggering Event through September 30, 2025. The principal consequence of a Triggering Event (other than a bankruptcy-related Triggering Event) is to give the holder the right to elect an alternate conversion as described above. In addition, the occurrence of a Triggering Event (other than a QCOR Triggering Event) will result in an increase to the dividend rate and limit the Company’s right to redeem the Series C Preferred Stock. A Triggering Event (other than a bankruptcy-related Triggering Event) will not otherwise accelerate any financial or other obligation on the part of the Company in respect of the Series C Preferred Stock . If the Company grants, issues or sells (or enters into any agreement to grant, issue or sell) or is deemed to have granted, issued or sold, any shares of common stock, for consideration per share less than the fixed conversion price then in effect, then immediately after such issuance, the fixed conversion price shall be reduced to an amount equal to such lower price. The Company has the right to redeem all, but not less than all, of the shares of Series C Preferred Stock at a redemption price equal to 132.5 % of the aggregate stated value of the Series C Preferred Stock plus all accrued and unpaid dividends and other amounts then payable thereon. The Company also has an additional one-time right to redeem a portion of the shares of Series C Preferred Stock with an aggregate stated value of at least $ 5 million at the same redemption price (a “Qualified Company Optional Redemption”). Upon a Change of Control (as defined in the Series C Convertible Preferred Stock Certificate of Designation), a holder of the Series C Preferred Stock has the right to require the Company to redeem all, or any portion, of the holder’s shares of Series C Preferred Stock at a price equal to 132.5 % of the stated value of the Series C Preferred Stock (plus any accrued and unpaid dividends or other amounts then payable thereon) or, if greater, an amount determined pursuant to the Series C Convertible Preferred Stock Certificate of Designation based on the then-current market price or the consideration payable in the Change of Control transaction, whichever is higher. A holder may not convert any of the shares of Series C Preferred Stock, to the extent that, after giving effect to such conversion, such holder (together with certain of its affiliates and other related parties) would beneficially own in excess of 9.99 % of the shares of the Company’s common stock outstanding immediately after giving effect to such conversion (the “Maximum Percentage”). The Holder may from time to time increase or decrease the Maximum Percentage; provided that in no event could the Maximum Percentage exceed 9.99 %, provided, further, that any such increase would not be effective until the 61st day after delivery of a notice to the Company of such increase. The Company and its subsidiaries (other than Lucid) are subject to certain customary affirmative and negative covenants regarding the rank of the Series C Preferred Stock, 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 ability to complete stock splits, among other customary matters. The Company also is subject to a financial covenant requiring that it maintain its cash flow on a break-even basis. On February 18, 2025, the Company and the holder of the Series C Preferred Stock entered into a waiver agreement (the “Q1 2025 Waiver”), pursuant to which, among other things, the holder granted certain waivers related to the Series C Preferred Stock, including waivers necessary to permit the Company and Veris to consummate the Offering (as described in Note 13, Common Stock and Common Stock Purchase Warrants ). In consideration of such waivers, the Company agreed to reduce temporarily, and the holder of the Series C Preferred Stock consented to reducing temporarily, the contractual conversion price under the Series C Preferred Stock to $ 0.40 , during the period through March 31, 2025; provided that the aggregate amount of conversions under the Series C Preferred Stock at such conversion price during such period did not exceed 1 million shares (the “Q1 2025 Conversion Price Reduction”). In addition, pursuant to the Q1 2025 Waiver, the Company granted the holder of the Series C Preferred Stock the right, exercisable through March 31, 2025, to elect to exchange up to $ 2.0 million of Series C Preferred Stock for an equivalent increase in the principal amount of the September 2022 Senior Convertible Note (although no exchanges elections were made under this provision during the waiver period) (the “Q1 2025 Exchange Right”). On March 18, 2025, the Company and the holder of the Series C Preferred Stock agreed to modify the terms of the Q1 2025 Conversion Price Reduction by increasing the maximum number of shares that could be converted at the reduced conversion price of $ 0.40 through March 31, 2025 from 1 million to 2 million (the “Q1 2025 Conversion Price Reduction Adjustment”). 25 Note 12 — Preferred Stock - continued On April 21, 2025, the Company and the holder of the Series C Preferred Stock entered into a waiver agreement (the “Q2 2025 Waiver”), with substantially similar terms to the Q1 2025 Waiver, described above, including to reduce the contractual conversion price under the Series C Preferred Stock to $ 0.40 , during the period through June 30, 2025; provided that the aggregate amount of shares of common stock issuable upon conversion of the Series C Preferred Stock at such conversion price during such period did not exceed 1 million shares. On May 14, 2025, the Company and the holder of the Series C Preferred Stock agreed to modify the terms of the Q2 2025 Waiver by increasing the maximum number of shares that could be issued on conversion of the Series C Preferred at the reduced conversion price of $0.40 through June 30, 2025 from 1 million to 2 million. On June 2, 2025, the Company and the holder of the Series C Preferred Stock agreed to further modify the terms of the Q2 2025 Waiver by increasing the maximum number of shares that could be issued on conversion of the Series C Preferred Stock at the reduced conversion price of $0.40 through June 30, 2025 from 2 million to 3 million. In addition, pursuant to the Q1 2025 Waiver, the Company granted the holder of the Series C Preferred Stock the right, exercisable through June 30, 2025, to elect to exchange up to $ 2.0 million of Series C Preferred Stock for an equivalent increase in the principal amount of the September 2022 Senior Convertible Note (although no exchanges elections were made under this provision during the waiver period) (the “Q2 2025 Exchange Right”). Further, on June 16, 2025, the Company and the holder of the Series C Preferred Stock entered into a waiver agreement (the “Q3 2025 Waiver”), pursuant to which, among other things, the adjustment period and waiver period end dates set forth in the Q2 2025 Waiver were extended from June 30, 2025 to September 30, 2025. The Q3 2025 Waiver also included provisions designed to facilitate the Veris June 2025 Equity Offering, as further in Note 14, Non-controlling Interest . Under the terms of the waiver, the parties agreed that an amount of the Series C Preferred Stock equal to 50% of the gross proceeds raised in certain future financings would be exchanged, effective as of December 16, 2025, for an equivalent increase in the amount outstanding under the September 2022 Senior Convertible Note (subject to certain terms and conditions). On June 23, 2025, Veris Health entered into subscription agreements to sell shares of Veris Health common stock and warrants, resulting in gross proceed of $ 2,520 . As a result of this financing (and subject to certain terms and conditions of the Q3 2025 Waiver), $ 1,260 of Series C Preferred Stock will be exchanged for an equivalent increase in the amount outstanding under the September 2022 Convertible Note, effective as of December 16, 2025. As this provision is a substantive redemption feature outside of the Company’s control during the waiver period, the affected Series C Preferred Stock no longer met the criteria for classification as permanent equity. Accordingly, the Company reclassified $ 1,260 of Series C Preferred Stock from permanent equity to mezzanine equity on the unaudited condensed consolidated balance sheet as of June 30, 2025. Subsequent to June 30, 2025, on July 16, 2025, the Company and the holder of the Series C Preferred Stock agreed to increase the maximum number of shares that could be issued on conversion of the Series C Preferred at the reduced conversion price of $ 0.40 through the end of the adjustment period (which, as noted above, was extended under the Q3 2025 Waiver to September 30, 2025) from 3 million to 4 million. The Company recognized the incremental value associated with the Q1 2025 Conversion Price Reduction as a deemed dividend charge of $ 434 and as an increase of net loss available to common stockholders on the unaudited condensed consolidated statements of operations for the three months ended March 31, 2025. The incremental value associated with the Series C Preferred Stock modification was determined using Monte Carlo simulation models based on the adjusted conversion price of $ 0.40 for the value of 1 million shares of the Company’s common stock when converted from the Series C Preferred Stock with the following assumptions: required rate of return of 14.5 %, dividend yield of 0 %, volatility of 40 %, and a risk-free rate of 4.30 %, compared to the fair value of the 1 million shares converted of the Company’s common stock on the date immediately preceding the modification with a $ 1.068 conversion price, utilizing the following assumptions: required rate of return of 14.5 %, dividend yield of 0 %, volatility of 40 %, and a risk-free rate of 4.30 %. The Company also recognized incremental value associated with the Q1 2025 Conversion Price Reduction Adjustment as an additional deemed dividend charge of $ 355 and as an increase of net loss available to common stockholders on the unaudited condensed consolidated statements of operations in the three months ended March 31, 2025. The incremental value associated with this adjustment was determined using Monte Carlo simulation models using the adjusted conversion price of $ 0.40 for the value of the additional 1 million shares of the Company’s common stock when converted from the Series C Preferred Stock with the following assumptions: required rate of return of 14.5 %, dividend yield of 0 %, volatility of 40 %, and a risk-free rate of 3.98 %, compared to the fair value of the additional 1 million shares converted of the Company’s common stock on the date immediately preceding the modification with a $ 1.068 conversion price, utilizing the following assumptions: required rate of return of 14.5 %, dividend yield of 0 %, volatility of 40 %, and a risk-free rate of 3.98 %. The Company also recognized incremental value associated with the Q2 2025 Waiver (and the conversion price adjustments made pursuant thereto) as three additional deemed dividend charges in the aggregate of $ 818 and as an increase of net loss available to common stockholders on the unaudited condensed consolidated statements of operations in the three months ended June 30, 2025. The incremental value associated with this adjustment was determined using Monte Carlo simulation models using the adjusted conversion price of $ 0.40 for the value of 1 million shares of the Company’s common stock (and each increase of an additional 1 million shares) when converted from the Series C Preferred Stock with the following assumptions: required rate of return of 14.5 %, dividend yield of 0 %, volatility of 40 %, and a risk-free rate ranging from 3.83 % to 4.06 %, compared to the fair value of 1 million shares converted of the Company’s common stock (and each increase of an additional 1 million shares) on the date immediately preceding the modification with a $ 1.068 conversion price, utilizing the following assumptions: required rate of return of 14.5 %, dividend yield of 0 %, volatility of 40 %, and a risk-free rate ranging from 3.83 % to 4.06 %. The Q2 2025 Exchange Right granted pursuant to the Q2 2025 Waiver provided the holder with a substantive redemption feature outside of the Company’s control during the waiver period. As a result, the affected Series C Preferred Stock no longer met the criteria for classification as permanent equity. Accordingly, the Company reclassified $ 2.0 million of Series C Preferred Stock from permanent equity to mezzanine equity on the unaudited condensed consolidated balance sheet as of June 30, 2025. On March 31, 2025, the Company elected to capitalize the Series C Preferred Stock dividend earned as of March 31, 2025 of $ 398 , and as a result, the stated value of the Series C Preferred Stock was adjusted from $ 1,000 to $ 1,016 . On June 30, 2025, the Company elected to capitalize the Series C Preferred Stock dividend earned as of June 30, 2025 of $ 481 , and as a result, the stated value of the Series C Preferred Stock was adjusted from $ 1,016 to $ 1,037 . In the six months ended June 30, 2025, the Company issued 3,840,094 shares of our common stock in connection with the conversion of 1,520 shares of Series C Preferred Stock. Subsequent to June 30, 2025, as of August 11, 2025, the Company has issued 847,552 shares of our common stock in connection with the conversion of 327 shares of Series C Preferred Stock. 26 Note 13 — Common Stock and Common Stock Purchase Warrants Common Stock On March 7, 2024, the Company received a notice from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) stating that, for the prior 30 consecutive business days (through March 6, 2024), the market value of the Company’s listed securities had been below the minimum of $35 million required for continued inclusion on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(b)(2). The Company was provided 180 calendar days, or until September 3, 2024, to regain compliance with the rule. The Company did not regain compliance with the rule during the allotted time period. Accordingly, on September 10, 2024, the Company received a staff determination letter from the Nasdaq Listing Qualifications Department, stating that unless the Company timely requested a hearing before a Nasdaq Hearings Panel (the “Panel”) to appeal the staff determination, the Company’s securities would be subject to suspension and delisting. The Company timely requested a hearing before the Panel, which was held on October 29, 2024 . On November 8, 2024, the Panel granted the Company an extension, until January 31, 2025, to regain compliance with the Nasdaq continued listing standards. On February 14, 2025, the Company received a notification letter from the Listing Qualifications Department of Nasdaq, stating that the Company had regained compliance with the Nasdaq continued listing standard under Nasdaq Listing Rule 5550(b)(1), which requires, among other things, that the Company maintain at least $ 2.5 million in stockholders’ equity. The Company achieved compliance through (1) the Exchange, which was consummated on January 17, 2025, (2) the issuance of shares of Series C Preferred Stock for an aggregate purchase price of $ 2.653 million, which was consummated on January 24, 2025, and (3) a reduction in operating expenses as a result of the Company’s completed deconsolidation of Lucid from its balance sheet, each of which transactions was previously disclosed. As a result, the Company met the terms of the Panel’s decision. Separately, on January 23, 2025, the Company received a notice from the Listing Qualifications Department of Nasdaq stating that, for the prior 30 consecutive business days (through January 22, 2025), the closing bid price of the Company’s common stock had been below the minimum of $1 per share required for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2). The notification letter stated that the Company would be afforded 180 calendar days (until July 22, 2025) to regain compliance. In order to regain compliance, the closing bid price of the Company’s common stock must be at least $ 1 for a minimum of ten consecutive business days. On July 29, 2025, the Company received an additional notice from the Listing Qualifications Department of Nasdaq stating that the Company is eligible for an additional 180-day period (until January 19, 2026) to regain compliance with this requirement. If it appears to the Nasdaq staff that the Company will not be able to cure the deficiency by January 19, 2026, the Nasdaq Listing Qualifications Department will provide notice after such date that the Company’s securities will be subject to delisting. The Nasdaq notification has no effect at this time on the listing of the Company’s common stock, and the common stock will continue to trade uninterrupted under the symbol “PAVM”. In the six months ended June 30, 2025, 401,303 shares of the Company’s common stock were issued upon conversion, at the election of the holder, of the September 2022 Senior Convertible Note, for $ 176 face value principal repayments, as discussed in Note 10, Debt . In the six months ended June 30, 2025, the Company sold 1,216,565 shares through their at-the-market equity facility for net proceeds of approximately $ 841 , after payment of 3 % commissions. 27 Note 13 — Common Stock and Common Stock Purchase Warrants - continued In the six months ended June 30, 2025, the Company issued 152,408 shares of common stock to vendors in exchange for $ 103 of agreed upon services, which is included in general and administrative operating expenses on the Company’s unaudited condensed consolidated statement of operations. On February 18, 2025, the Company and Veris, entered into subscription agreements (each, a “Subscription Agreement”) with certain accredited investors (collectively, the “Investors”), pursuant to which the Company agreed to sell and the Investors agreed to purchase (the “Offering”) 2,574,350 shares of the Company’s common stock and pre-funded warrants to purchase 756,734 shares of the Company’s common stock (the “Pre-Funded Warrants”), at a purchase price of $ 0.7115 per share or warrant share (as applicable). In addition, Veris agreed to issue to each Investor approximately 0.2033 shares of Veris’ common stock for each share or warrant share (as applicable) purchased by such Investor, for an aggregate of 677,143 shares of Veris’ common stock. On February 21, 2025, the Company consummated the Offering, generating gross proceeds to the Company of $ 2.37 million. The Pre-Funded Warrants are classified as equity in accordance as they are indexed to the Company’s own stock and meet the criteria for equity classification. The proceeds received were recorded in additional paid-in capital with no subsequent remeasurement. The Subscription Agreement contains customary representations, warranties, covenants and indemnities of the Company and the Investors, as well as a covenant by the Company to provide the Investors with protection against subsequent equity raises by the Company or Veris at a lower purchase price (solely to the extent the Investors continue to hold the shares issued in the Offering), with such protection to be effected through the issuance of additional shares of Veris’ common stock. In addition, the Company (i) agreed to solicit the affirmative vote of its stockholders by no later than its next meeting of stockholders, which will be held no later than June 30, 2025, for approval, for the purposes of the rules of The Nasdaq Stock Market LLC, of the issuance of all of the shares underlying the Pre-Funded Warrants, and to hold additional meetings quarterly thereafter to the extent such approval is not obtained, (ii) granted the Investors a 100% participation right in future offerings of equity securities of the Company or its majority-owned subsidiaries, subject to existing participation rights of the Company’s debt holder, and (iii) agreed not to incur, and not to permit its majority-owned subsidiaries to incur, any indebtedness until August 18, 2026, subject to certain exceptions. In accordance with the Subscription Agreement, the Company also entered into a registration rights agreement (the “Registration Rights Agreement”) with the Investors, pursuant to which the Company agreed to file a registration statement covering the resale of the shares of the Company’s common stock issued in the Offering, including the shares underlying the Pre-Funded Warrants. This registration statement was filed and became effective as of April 15, 2025. On June 18, 2025, the Pre-Funded Warrants became exercisable upon the receipt of the stockholder approval described above, and all 756,734 warrants were exercised as of June 19, 2025. Common Stock Purchase Warrants As of December 31, 2024, the Series Z Warrants outstanding totaled 11,937,450 representing the right to purchase 795,830 shares of the Company’s common stock. The Series Z Warrants were exercisable to purchase one whole share of common stock of the Company at an exercise price of $ 23.48 (previously $ 24.00 post reverse-split, decreased by $ 0.52 in connection with the special dividend distribution of Lucid common stock to PAVmed stockholders, discussed above). All such unexercised warrants expired in accordance with their terms on April 30, 2025. During the three and six months ended June 30, 2025, there were no Series Z Warrants exercised. 28 Note 14 — Noncontrolling Interest The noncontrolling interest (“NCI”) included as a component of consolidated total stockholders’ equity is summarized for the periods indicated as follows: Schedule of Noncontrolling Interest of Stockholders' Equity June 30, 2025 NCI – equity - December 31, 2024 $ ( 4,538 ) Net loss attributable to NCI ( 747 ) Impact of subsidiary equity transactions ( 7,928 ) Veris Health issuance of common stock for settlement of vendor service agreement 104 Veris Offerings 3,438 Stock-based compensation expense - Veris Health 2021 Equity Plan 300 NCI – equity – June 30, 2025 $ ( 9,371 ) The consolidated NCI presented above is with respect to the Company’s consolidated subsidiaries as a component of consolidated total stockholders’ equity as of June 30, 2025 and December 31, 2024; and the recognition of a net loss attributable to the NCI in the unaudited condensed consolidated statement of operations for the periods beginning on the acquisition date of the respective subsidiaries. Lucid Diagnostics — Deconsolidation On September 10, 2024, following preferred equity transactions completed by Lucid earlier in 2024 and the termination of voting proxies entered into between PAVmed and certain shareholders of Lucid, PAVmed’s voting interest in the Company was reduced to less than 50.0%, resulting in the loss of a controlling financial interest . However, PAVmed retains the ability to exercise significant influence over Lucid. As of June 30, 2025, continues to hold 31,302,444 shares of common stock of Lucid Diagnostics. Lucid Diagnostics — Intercompany Obligation Settlement; Special Distribution On January 26, 2024, PAVmed elected to receive payment of $ 4,675 of fees and reimbursements due from Lucid, through the issuance of 3,331,771 shares of Lucid Diagnostics common stock. On February 15, 2024, the Company distributed by special dividend to the Company stockholders, as of the record date noted above, 3,331,747 shares of Lucid Diagnostics common stock held by the Company. Veris Health As of June 30, 2025, there were 10,552,143 shares of common stock of Veris Health issued and outstanding, of which PAVmed holds an 59.49 % majority-interest ownership and PAVmed has a controlling financial interest, with the remaining 40.51 % minority-interest ownership held by unrelated third-parties. These ownership interests in Veris Health do not reflect the approximately $ 24.0 million of intercompany debt owed by Veris to PAVmed, which at the stated conversion price of $ 1.50 , is convertible into 16,001,294 shares of common stock of Veris Health; giving effect to the conversion of such note, PAVmed’s ownership interest in Veris would be 83.9 %. Accordingly, Veris Health is a consolidated majority-owned subsidiary of the Company, for which a provision of a noncontrolling interest (NCI) is included as a separate component of consolidated stockholders’ equity in the accompanying unaudited condensed consolidated balance sheets. On June 23, 2025, Veris entered into subscription agreements (each, a “Veris June 2025 Subscription Agreement”) with certain accredited investors (collectively, the “June 2025 Investors”), pursuant to which Veris agreed to sell and the Investors agreed to purchase (the “June 2025 Offering”) 1,800,000 shares of common stock, par value $ 0.001 per share, of Veris (“Veris Common Stock”) and warrants to purchase 1,800,000 shares of Veris Common Stock (“Veris Warrants”), at a purchase price of $ 1.40 per share of Veris Common Stock. On the same day, Veris consummated the June 2025 Offering, generating gross proceeds to Veris of approximately $ 2.5 million, with less than $ 0.1 million of issuance costs. The proceeds of the offering will be used to continue development activities related to Veris’ implantable physiological monitor and for general working capital purposes. The Veris June 2025 Subscription Agreements contain customary representations, warranties, covenants and indemnities of Veris and the June 2025 Investors, as well as a covenant by Veris to provide the June 2025 Investors with protection against subsequent equity raises by Veris at a lower valuation (solely to the extent the June 2025 Investors continue to hold the shares issued in the June 2025 Offering), with such protection to be effected through the issuance of additional shares of Veris Common Stock. In addition, Veris granted certain of the June 2025 Investors a 100% participation right in future offerings of equity securities by Veris, subject to existing participation rights of the Company’s debt holder, and agreed not to incur any indebtedness until December 23, 2026, subject to certain exceptions. In accordance with the Veris June 2025 Subscription Agreement, Veris also entered into a registration rights agreement (the “Registration Rights Agreement”) with the June 2025 Investors, pursuant to which Veris granted the June 2025 Investors customary demand and piggyback registration rights. The June 2025 Investors may exercise the demand registration rights only if Veris consummates a going public transaction. 29 Note 14 — Noncontrolling Interest - continued The Veris Warrants become exercisable six months after issuance and expire on the earlier of (i) the five-year anniversary of the initial exercise date and (ii) the 60th day following receipt by Veris of FDA approval of its implantable physiological monitor. The Veris Warrants have an exercise price of $1.40 per share, subject to adjustment as described below. The Veris Warrants may be exercised only for cash. The exercise price and number and type of securities or other property issuable on exercise of the Veris Warrants may be adjusted in certain circumstances, including in the event of a stock split or combination, stock dividend, or a recapitalization, reorganization, merger or similar transaction. In addition, if Veris completes a subsequent equity raises at a lower valuation, the exercise price of the Veris Warrants will be reduced to such lower valuation and the number of shares issuable on exercise of the Veris Warrants will be increased so that the aggregate exercise price remains the same. In addition, a holder of the Veris Warrants will be entitled to participate in rights offerings or pro rata distributions by Veris. The Veris Warrants are classified as equity in accordance as they are indexed to the Company’s own stock and meet the criteria for equity classification. Note 15 — Net Income (Loss) Per Share The Net income (loss) per share - attributable to PAVmed Inc. - basic and diluted and Net income (loss) per share - attributable to PAVmed Inc. common stockholders - basic and diluted - for the respective periods indicated - is as follows: Schedule of Comparison of Basic and Fully Diluted Net Loss Per Share 2025 2024 2025 2024 Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Numerator Net income (loss) - before noncontrolling interest $ ( 12,324 ) $ ( 14,914 ) $ 6,300 $ ( 33,426 ) Net income (loss) attributable to noncontrolling interest 403 4,087 747 7,387 Net income (loss) - as reported, attributable to PAVmed Inc. $ ( 11,921 ) $ ( 10,827 ) $ 7,047 $ ( 26,039 ) Series B Convertible Preferred Stock dividends – earned $ ( 88 ) $ ( 81 ) $ ( 175 ) $ ( 161 ) Series C Convertible Preferred Stock dividends - earned $ ( 481 ) $ — $ ( 879 ) $ — Deemed dividend on Series C Convertible Preferred Stock ( 818 ) $ — $ ( 1,607 ) $ — Deemed dividend on Subsidiary Preferred Stock attributable to the noncontrolling interests $ — $ — $ — $ ( 7,496 ) Net income (loss) attributable to PAVmed Inc. common stockholders used in basic EPS calculation $ ( 13,308 ) $ ( 10,908 ) $ 4,386 $ ( 33,696 ) Fair Value Adjustment for diluted EPS calculation $ — $ — $ 249 $ — Add back: Series C Convertible Preferred Stock dividends and deemed dividends $ — $ — $ 2,486 $ — Net income (loss) attributable to PAVmed Inc. common stockholders used in dilutive EPS calculation $ ( 13,308 ) $ ( 10,908 ) $ 7,121 $ ( 33,696 ) Denominator Weighted average common shares outstanding, basic 18,084,653 9,152,819 15,992,034 8,923,862 Add: Restricted stock awards — — 322,921 — Add: Senior Convertible Note — — 17,223,784 — Add: Series C Convertible Preferred Stock — — 20,734,223 — Weighted average common shares outstanding, diluted 18,084,653 9,152,819 54,272,962 8,923,862 Net income (loss) per share (1) Net income (loss) per share attributable to PAVmed Inc. common stockholders, basic (1) $ ( 0.74 ) $ ( 1.19 ) $ 0.27 $ ( 3.78 ) Net income (loss) per share attributable to PAVmed Inc. common stockholders, diluted (1) $ ( 0.74 ) $ ( 1.19 ) $ 0.13 $ ( 3.78 ) (1) - Convertible preferred stock and restricted stock awards would potentially be considered a participating security under the two-class method of calculating net income (loss) per share. For periods where losses are presented, such holders are not contractually obligated to share in the losses, there is no impact on the Company’s net income (loss) per share calculation for the periods indicated. 30 Note 15 — Net Income (Loss) Per Share - continued The common stock equivalents have been excluded from the computation of diluted weighted average shares outstanding as their inclusion would be anti-dilutive, are as follows: The Series B Convertible Preferred Stock dividends earned as of each of the respective periods noted, are included in the calculation of basic and diluted net loss attributable to PAVmed common stockholders for each respective period presented. Notwithstanding, the Series B Convertible Preferred Stock dividends are recognized as a dividend payable only upon the dividend being declared payable by the Company’s board of directors. Basic weighted-average number of shares of common stock outstanding for the six months ended June 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 outstanding includes such incremental shares. However, as the Company was in a loss position for the three months ended June 30, 2025 and the three and six months ended June 30, 2024, 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 Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share 2025 2024 June 30, 2025 2024 Stock options 822,143 1,691,512 Restricted stock awards — — Series Z Warrants — 795,830 Series B Convertible Preferred Stock 95,160 90,532 Total 917,303 2,577,874 The total stock options are inclusive of 54,480 and 60,054 stock options as of June 30, 2025 and 2024, respectively, granted outside the PAVmed 2014 Equity Plan. Note 16 — Segment Information PAVmed is structured to be a multi-product life sciences company organized to advance a pipeline of innovative healthcare technologies. PAVmed is focused on innovating, developing, acquiring, and commercializing novel products that target unmet medical needs with large addressable market opportunities. Leveraging our corporate structure—a parent company that will establish distinct subsidiaries for each financed asset—we have the flexibility to raise capital at the PAVmed level to fund product development, or to structure financing directly into each subsidiary in a manner tailored to the applicable product, the latter of which is our current strategy given prevailing market conditions. Our current focus is multi-fold. We continue to support the commercial expansion and execution of EsoGuard, which is the flagship product of our subsidiary Lucid, of which we remain the shareholder with the largest voting interest. In addition, through a separate majority-owned subsidiary, Veris Health, we are focused in the immediate term on entering into strategic partnership opportunities with leading academic oncology systems to expand access to the Veris Cancer Care Platform, while concurrently developing an implantable physiological monitor, designed to be implanted alongside a chemotherapy port, which will interface with the Veris Cancer Care Platform. The Company manages the business activities on a consolidated basis and operates in one reportable segment. PAVmed’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. 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 the consolidated statements of operations. During the three and six months ended June 30, 2025 and 2024 revenues resulting from subscription revenue or patient laboratory 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. 31