v3.25.2
Related Party Transactions
 6 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

Note 5 — Related Party Transactions

 

The aggregate Due To: PAVmed Inc. for the period indicated is summarized as follows:

 

   MSA Fees   Employee-Related Costs   PAVmed Inc. OBO Payments   Total 
Balance - December 31, 2024  $—   $—   $—   $— 
MSA fees   6,300    —    —    6,300 
ERC - Benefits   —    771    —    771 
On Behalf Of (OBO) activities   —    —    288    288 
Cash payments to PAVmed Inc.   (6,300)   (771)   (288)   (7,359)
Balance - June 30, 2025  $—   $—   $—   $— 

 

PAVmed - Management Services Agreement

 

The Company’s daily operations are also managed in part by personnel employed by PAVmed, for which the Company incurs a service fee, referred to as the “MSA Fee”, according to the provisions of a Management Services Agreement (“MSA”) with PAVmed. The MSA does not have a termination date, but may be terminated by the Company’s board of directors. The MSA Fee is charged on a monthly basis and is subject to periodic adjustment corresponding with changes in the services provided by PAVmed personnel to the Company, with any such change in the MSA Fee being subject to approval of the boards of directors of each of the Company and PAVmed. Currently, under the terms of PAVmed’s outstanding convertible debt, PAVmed is required to elect to receive such payments in cash.

 

The MSA Fee expense classification in the unaudited condensed consolidated statement of operations for the periods noted is as follows:

 

   2025   2024   2025   2024 
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2025   2024   2025   2024 
Sales & Marketing   165    127   $329   $253 
General & Administrative   2,252    1,803    4,505    3,607 
Research & Development   733    570    1,466    1,140 
Total MSA Fee  $3,150   $2,500   $6,300   $5,000 

 

The classification of the MSA Fee as presented above is based on the PAVmed classification of employee salary expense and other operating expenses. In this regard, PAVmed classifies employee salary expense as sales and marketing expenses for employees performing sales, sales support and marketing activities, research and development expenses for those employees who are engaged in product and services engineering development and design and /or clinical trials activities, and other employees and activities classified as general and administrative.