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

Lucid Diagnostics Inc. (NASDAQ: LUCD), a cancer prevention diagnostics company and subsidiary of PAVmed Inc., announced on October 22, 2026 that it has begun receiving payments from Medicare for its EsoGuard Esophageal DNA Test. On the same day, the company reported that it closed a $15.0 million private placement of newly designated Series C Convertible Preferred Stock with existing long-term shareholders.

Medicare Payments at the Established Rate

According to the company, Medicare is paying EsoGuard claims at the test’s established Clinical Laboratory Fee Schedule rate of $1,938.01 per test under PLA code 0114U. The payments follow a September 22 update in which Lucid said it would begin submitting Medicare claims that month for tests performed at its CLIA-certified laboratory in Irving, Texas. That laboratory sits in the jurisdiction of a Medicare Administrative Contractor that does not participate in the MolDX program.

Lucid operates a second laboratory in Lake Forest, California, which falls under a MolDX-participating contractor. In its September update, the company said it would begin submitting Medicare claims for tests performed there once a final revised EsoGuard Local Coverage Determination, resulting from its pending reconsideration request, takes effect.

“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.” Aklog added that Medicare reimbursement “removes a key headwind” in the company’s engagement with large health systems and will help its efforts to secure coverage from commercial payors.

Series C Terms and the Convertible Notes

According to the company’s Form 8-K, Lucid sold 15,000 shares of Series C Preferred Stock at $1,000 per share on October 21, for gross proceeds of approximately $15.0 million. Each share converts into common stock at an initial price of $0.3519, and the preferred stock carries a 20% annual dividend payable quarterly in common shares from December 31, 2026, through March 31, 2030.

In addition, the filing states that the conversion price on the company’s 12.0% senior secured convertible notes due 2029 resets to $0.3519, since the Series C conversion price is below the prior note conversion price. Investors in the placement included holders of a majority of those notes. As part of the deal, participating noteholders acknowledged that Lucid’s receipt of payment on Medicare claims submitted to Novitas Solutions, the contractor overseeing the Texas laboratory’s jurisdiction, had addressed the concerns underlying the notes’ Medicare-related event of default provision.

The Series C terms also include a liquidation preference, the right for a majority of holders to designate one board member while at least 25% of the original shares remain outstanding, and a 4.99% beneficial ownership limit on conversions. Lucid agreed to file a resale registration statement for the underlying common shares within 120 days of closing and plans to use the net proceeds to accelerate near-term commercial operations and for working capital and general corporate purposes.

Where the Business Stood Before Medicare Payments

Lucid’s most recent quarterly results predate the Medicare payments. In its second quarter 2026 results, the company reported EsoGuard revenue of $1.5 million, up from approximately $1.2 million a year earlier, on 2,770 tests processed. Operating expenses were approximately $14.3 million, and the GAAP net loss attributable to common stockholders was approximately $14.7 million, or $0.08 per share.

Lucid held $33.4 million in cash and cash equivalents as of June 30, 2026, compared with $34.7 million at the end of 2025. On the commercial side, the company announced in August that Concert issued a positive coverage policy for EsoGuard, effective July 2026, which multiple Concert client health plans have since adopted.

Meanwhile, the September update described three other pathways in progress. A Medicare advisory panel recommended keeping EsoGuard’s original gapfill payment basis, with final CMS determinations expected in November, while the AMA approved a new Category III CPT code for office-based esophageal cell collection with EsoCheck. In addition, a proposed ICD-10-CM diagnosis code for positive EsoGuard results is expected to be finalized after a public comment period.

Strategic Investment Summary

• Medicare Payments: Lucid Diagnostics Inc. (NASDAQ: LUCD) announced on October 22, 2026, that it has begun receiving Medicare payments for EsoGuard at the $1,938.01 Clinical Laboratory Fee Schedule rate.
• Laboratory Status: Medicare is paying claims for tests performed at the Irving, Texas laboratory, while California claims await a final revised Local Coverage Determination.
• New Financing: The company closed a $15.0 million Series C Convertible Preferred Stock placement on October 21 with a $0.3519 conversion price and a 20% annual dividend paid in common shares.
• Noteholder Terms: The conversion price on the 12.0% senior secured convertible notes due 2029 resets to $0.3519, and participating noteholders acknowledged that the Medicare-related default concerns were addressed.
• Second Quarter Results: EsoGuard revenue was $1.5 million on 2,770 tests, with operating expenses of approximately $14.3 million.
• Cash Position: Lucid held $33.4 million in cash and cash equivalents as of June 30, 2026, before the Series C proceeds.

Find out more about the latest corporate developments and financial reports at the Lucid Diagnostics investor portal.