Lucid Diagnostics Begins Receiving Medicare Reimbursement for EsoGuard® and Closes $15 Million Financing

Medicare claims are generating payments, while the financing adds capital through preferred shares convertible into common stock.

Rhea-AI Summary

Lucid Diagnostics (LUCD) has begun receiving Medicare payments for its EsoGuard Esophageal DNA Test and closed a preferred-stock financing. Payments on claims for tests performed at one of its two CLIA-certified laboratories are being received at the established rate of $1,938.01 per test.

The $15.0 million private placement closed October 21, 2026, with existing long-term shareholders. Series C Convertible Preferred Stock was sold for $1,000 per share and converts into common stock at $0.3519 per share. Lucid intends to use net proceeds to accelerate near-term commercial operations and for working capital and general corporate purposes. Participating noteholders acknowledged that Medicare payments addressed concerns underlying the notes' Medicare-related default provision.

4 points · 1 major

MixediHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 2 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point$15.0 million private placement with existing long-term shareholders closed October 21, 2026. 24% of market cap
• Moderate pointEsoGuard Medicare payments have begun at the established rate of $1,938.01 per test.
• Minor pointParticipating noteholders acknowledged Medicare payments addressed concerns underlying the notes' Medicare-related event of default provision.
• Minor point. Forward-looking: it has not happened yet and may not happen.Commercial operations are targeted for near-term acceleration using financing proceeds, as Lucid intends.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.Series C convertible preferred shares sold at $1,000 each create potential dilution at $0.3519 per common share.
• Minor pointSeries C preferred stock carries dividend and liquidation preferences and certain mandatory conversion events.

News Explained

The resale registration is a future filing due within one hundred twenty days after closing; any ownership dilution depends on conversion of preferred shares.

The closed $15.0 million financing brings proceeds to Lucid, while conversion of its Series C preferred stock could increase common shares outstanding and reduce existing holders’ ownership percentages.

Lucid also agreed to file, within 120 days after closing, a resale registration statement covering the common shares underlying the preferred stock.

Argus 15 min delay 3 alerts

+16.87% vs previous close $2.40 last price 0.9x rel. volume Open Argus

Details

Market move: PAVM +16.87% vs previous close. Medicare reimbursement milestone

$2.02 – $2.45 Day Range

$19.16M Mkt Cap at Last Price

On Oct 22, the day this news came out, the latest delayed price for PAVM is 16.87% above the previous close. Our momentum scanner has recorded 3 alerts for this stock so far that day. The latest delayed price is $2.40.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Private placement: $15.0 million Medicare reimbursement rate: $1,938.01 per test Preferred stock purchase price: $1,000 per share +3 more

Private placement

$15.0 million

Series C Convertible Preferred Stock financing

Medicare reimbursement rate

$1,938.01 per test

EsoGuard rate under the Clinical Laboratory Fee Schedule

Preferred stock purchase price

$1,000 per share

Series C Convertible Preferred Stock

Conversion price

$0.3519 per share

Series C Convertible Preferred Stock conversion into common stock

Resale registration deadline

120 days

Following closing, for a statement covering the underlying common shares

Senior secured convertible notes

12.0%; due 2029

Existing Notes held by participating investors

Historical Context

1 past event · Latest: Sep 22

1 event

1. Sep 22

   Medicare payment pathway

   24h Move

   +5.3%

   Lucid planned Medicare claims under PLA code 0114U, with final CMS payment terms pending.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

clinical laboratory fee schedule, convertible preferred stock, liquidation preference, resale registration statement

4 terms

clinical laboratory fee schedule regulatory

"at the established EsoGuard (PLA code 0114U) Clinical Laboratory Fee Schedule rate"

A clinical laboratory fee schedule is a set list of prices that a payer—such as a government program or insurance company—will reimburse for specific lab tests and services. Think of it as a menu of allowed payments that determines how much labs can charge and get paid; changes to those prices directly affect a lab’s revenue, profit margins and investment prospects because lower rates squeeze earnings while higher rates improve cash flow.

convertible preferred stock financial

"shares of its newly designated Series C Convertible Preferred Stock"

Convertible preferred stock is a special class of company shares that pays priority, usually fixed, payments to holders and can be exchanged later for a set number of common shares. It matters to investors because it combines steady income and added protection with the chance to share in a company’s upside; think of it as a hybrid between a bond that pays regularly and an option to convert into growth-oriented stock, where the conversion rules influence both potential gains and how much common shareholders’ ownership may be reduced.

liquidation preference financial

"a dividend and liquidation preference"

A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.

resale registration statement financial

"file a resale registration statement covering the underlying shares"

A resale registration statement is a document filed with regulators that allows existing shareholders to sell their shares to the public. It provides the necessary legal approval and information for these shares to be resold on the market, helping to increase the availability of shares for trading. For investors, it signals that shares held by current owners can be offered for sale, potentially affecting share prices and market liquidity.

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Lucid is now submitting Medicare claims and receiving payments at EsoGuard's established Clinical Laboratory Fee Schedule rate

Series C Preferred Stock private placement with existing long-term shareholders strengthens Lucid's balance sheet, extends its cash runway, and supports near-term commercial acceleration

NEW YORK, Oct. 22, 2026 /PRNewswire/ -- Lucid Diagnostics Inc. (Nasdaq: LUCD) ("Lucid" or the "Company"), a commercial-stage, cancer prevention medical diagnostics company and subsidiary of PAVmed Inc. (Nasdaq: PAVM), today announced that it has begun receiving payments from Medicare for its EsoGuard^® Esophageal DNA Test. The Company also closed a $15.0 million private placement on October 21, 2026, for shares of its newly designated Series C Convertible Preferred Stock (the "Series C Preferred Stock") to existing long-term shareholders.

"Medicare is now paying for EsoGuard," said Lishan Aklog, M.D., Lucid's Chairman and Chief Executive Officer. "For the first time, Medicare beneficiaries nationwide have fully reimbursed access to the groundbreaking EsoGuard test. This breakthrough marks a seminal moment in our mission to end the scourge of esophageal cancer through precancer testing of at-risk patients. It opens up significant near-term commercial opportunities that extend beyond primary care, gastroenterology, and geriatric practices. Medicare reimbursement removes a key headwind in our continued engagement with large health systems and will also help accelerate our efforts to secure coverage by commercial payors. Our team is laser-focused on translating this pivotal milestone into near-term commercial results, and this financing provides the resources we need to do so."

On September 22, Lucid announced that it would begin submitting Medicare claims for EsoGuard tests performed at one of its two CLIA-certified laboratories. Shortly thereafter, the Company began receiving payments on those claims at the established EsoGuard (PLA code 0114U) Clinical Laboratory Fee Schedule rate of $1,938.01 per test.

The Series C Preferred Stock was sold at a purchase price of $1,000 per share and is convertible into common stock at a conversion price of $0.3519 per share. Investors in the private placement included holders of a majority of the Company's 12.0% senior secured convertible notes due 2029 (the "Notes"). The Series C Preferred Stock includes customary terms, including certain mandatory conversion events, a dividend and liquidation preference, and an agreement by the Company to file a resale registration statement covering the underlying shares of common stock within 120 days following closing. Participating holders of the Notes also acknowledged that the Company's receipt of payments on submitted Medicare claims as described above has addressed the concerns underlying the Notes' Medicare-related event of default provision. Lucid intends to use the net proceeds to accelerate its near-term commercial operations and for working capital and general corporate purposes.

Additional details of the Series C Preferred private placement can be found in the Company's Current Report on Form 8-K filed concurrently with the Securities and Exchange Commission.

About Lucid Diagnostics
Lucid Diagnostics Inc. is a commercial-stage, cancer prevention medical diagnostics company, and subsidiary of PAVmed Inc. (Nasdaq: PAVM). Lucid is focused on the millions of patients with gastroesophageal reflux disease (GERD), also known as chronic heartburn, who are at risk of developing esophageal precancer and cancer. Lucid's EsoGuard^® Esophageal DNA Test, performed on samples collected in a brief, noninvasive office procedure with its EsoCheck^® Esophageal Cell Collection Device, represent the first and only commercially available tools designed with the goal of preventing cancer and cancer deaths through widespread, early detection of esophageal precancer in at-risk patients.

For more information, please visit www.luciddx.com and for more information about its parent company PAVmed, please visit www.pavmed.com.

Forward-Looking Statements
This press release includes forward-looking statements that involve risk and uncertainties. Forward-looking statements are any statements that are not historical facts. Such forward-looking statements, which are based upon the current beliefs and expectations of Lucid Diagnostics' management, are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Risks and uncertainties that may cause such differences include, among other things, volatility in the price of Lucid Diagnostics' common stock; general economic and market conditions; the uncertainties inherent in research and development, including the cost and time required to advance Lucid Diagnostics' products to regulatory submission; whether regulatory authorities will be satisfied with the design of and results from Lucid Diagnostics' clinical and preclinical studies; whether and when Lucid Diagnostics' products are cleared by regulatory authorities; market acceptance of Lucid Diagnostics' products once cleared and commercialized; Lucid Diagnostics' ability to raise additional funding as needed; and other competitive developments. These factors are difficult or impossible to predict accurately and many of them are beyond Lucid Diagnostics' control. In addition, new risks and uncertainties may arise from time to time and are difficult to predict. For a further list and description of these and other important risks and uncertainties that may affect Lucid Diagnostics' future operations, see Part I, Item 1A, "Risk Factors," in Lucid Diagnostics' most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, as the same may be updated in Part II, Item 1A, "Risk Factors" in any Quarterly Report on Form 10-Q filed by Lucid Diagnostics after its most recent Annual Report. Lucid Diagnostics disclaims any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in its expectations or in events, conditions, or circumstances on which those expectations may be based, or that may affect the likelihood that actual results will differ from those contained in the forward-looking statements.

 

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SOURCE Lucid Diagnostics

FAQ

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How much is Medicare paying Lucid Diagnostics for EsoGuard tests?

Lucid is receiving Medicare payments at EsoGuard's established Clinical Laboratory Fee Schedule rate of $1,938.01 per test. The payments concern submitted claims for tests performed at one of its two CLIA-certified laboratories. EsoGuard's billing code is 0114U.

What are the terms of Lucid Diagnostics' Series C preferred-stock financing?

Lucid closed a $15.0 million private placement on October 21, 2026, selling Series C Convertible Preferred Stock for $1,000 per share, convertible into common stock at $0.3519 per share. The securities include dividend and liquidation preferences and certain mandatory conversion events.