Lucid Diagnostics Reports Significant Revenue Decline and Increased Losses in Q3 2022

Lucid Diagnostics Inc. reported a significant decline in financial performance for the third quarter of 2022, with revenues of $76,000, down from $200,000 in the same period of 2021. For the nine months ending September 30, 2022, total revenue reached $265,000, a slight increase from $200,000 in the prior year. The company attributed the revenue drop primarily to the termination of its EsoGuard Commercialization Agreement with ResearchDx, which transitioned operations to its own laboratory. The cost of revenue surged to $1.6 million for the quarter, compared to $144,000 in the previous year, reflecting increased operational costs associated with the new laboratory setup.

Operating expenses for the third quarter of 2022 totaled $14.4 million, significantly higher than the $6.7 million reported in the same quarter of 2021. This increase was driven by a rise in sales and marketing expenses, which soared to $3.9 million from $918,000, largely due to increased headcount and stock-based compensation. General and administrative expenses also rose to $5.7 million from $3.5 million, reflecting higher consulting fees and operational costs. The net loss for the quarter was $14.3 million, compared to a loss of $6.9 million in the prior year, resulting in a net loss per share of $0.39.

In terms of strategic developments, Lucid Diagnostics has focused on expanding its product offerings and market presence. The company has established its own CLIA-certified laboratory, which began operations in February 2022, and is actively pursuing the commercialization of its EsoGuard Esophageal DNA Test. Additionally, the company is developing the EsoCure Esophageal Ablation Device, aimed at treating dysplastic Barrett’s Esophagus. The recent updates to clinical guidelines by the American College of Gastroenterology and the American Gastroenterological Association have also expanded the target population for screening, which may enhance market opportunities for Lucid's products.

Operationally, Lucid Diagnostics has seen an increase in its employee headcount, which has contributed to higher operational costs. The company reported a total of 37,016,225 shares outstanding as of September 30, 2022, up from 34,917,907 shares at the end of 2021. The company is also in the process of establishing Lucid Test Centers to facilitate the EsoCheck procedure, which is expected to enhance patient access to its diagnostic services. Despite the challenges, Lucid Diagnostics remains focused on advancing its commercialization efforts and securing insurance reimbursement for its products.

Looking ahead, Lucid Diagnostics anticipates continued losses as it invests in expanding its operations and product development. The company has entered into a committed equity facility with Cantor Fitzgerald, allowing it to raise up to $50 million in capital, which it plans to utilize for ongoing operational needs and strategic initiatives. However, the company acknowledges the inherent risks associated with its business model, including the need for regulatory approvals and market acceptance of its products. Lucid Diagnostics expects to continue funding its operations through a combination of debt and equity financing while striving to achieve sustainable revenue growth in the future.