Thank you for being here. It's my pleasure to introduce our next speaker. My name is Dale Jones. I'm with Sales Consulting. We are an accounting and advisory firm that specializes in capital markets transactions. Today we have Ted who is here from ProPhase Labs to give the next presentation.
I'm smiling because a friend of mine from ThinkEquity is in the back. I won't call you out, Frank. Thank you all for joining. Today I'm going to do. I could talk for hours. All right. I'm going to try and do this in about 20 minutes or so. Why don't we start with a forward looking statement. I'm not going to read it. Everything I'm going to say is accurate as of today, but there's no guarantee that you'll be updated in the future. That's basically what you said. I'm going to assume you've all read the forward looking statement. Quick summary and I guess we'll start with this. We basically have three assets that you should really be focused on if you're interested in our company. The first one is our Crown Medical collections. We have about $150 million. We did about $300 million of COVID testing.
I'll get into that a little bit. We didn't collect on about $150 million of it. We have an initiative that we've been working on all year with Crown Medical. We've gone to a very advanced stage. Now we fully anticipate. Crown is telling me the head of Crown strongly believes we're going to net $50 million in cash. We're not paying them a penny. They're doing this all in contingency. Numerous dozens of attorneys actually working on this. We then have what we call ProPhase Biopharma or BE-Smart. That's our BE-Smart Esophageal Cancer Test. We just had a major hurdle that we've accomplished by getting published in a major journal. That was critically important in order to move to commercialization. We then have DNA Complete and Nebula Genomics founded by George Church, world renowned in the field of genomics.
This is a world class whole genome sequencing test and business. Finally, we have ProPhase supplements. We have a broad based antiviral called Equivir that we may commercialize. I'm not going to go through the whole timeline. When I used to do this, I used to talk about how I killed it. I took over this company. It was a $0.65 stock. It was going bankrupt. I turned it around. I turned around the cold's brand. I learned how to be a CEO, learned the consumer product industry, turned around the Cold-EEZE brand, sold her for $50 million. Took a company out of bankruptcy, paid all our shareholders $2.40 in cash, special dividends. They all thought I walked in water. Got into COVID testing with my son Jason. He built out the business. We had a guy working for 30 years in the lab business. He came in, did nothing.
We moved him out. Jason took over, built a business, did $100 million a year, three years in a row. Approximately $300 million of revenues he generated. We got paid on about $150 million and we diversified. The same way after we sold the Cold-EEZE brand for $50 million, we diversified into COVID testing. By the way, what's interesting about that, the reason we got into COVID testing, we were investing in another company, one of the first labs in the country to have a saliva test for COVID. We were investing in them, we saw they were squandering the money, so we decided to do it ourselves. They went bankrupt and we went on to do $300 million revenues. It just gives you an idea of how important management is and execution. Having said that, we then the same way made the decision to pivot into COVID testing.
We then pivoted into Nebula Genomics, acquiring the esophageal cancer test and some other assets. Basically, Nebula Genomics, we built out a world class laboratory, did some other things. We had a lot of overhead, assuming that because the government guaranteed our COVID testing, we would actually get reimbursed. All of a sudden the government ran out of money for reimbursing for COVID. Out of the blue, I have all of this overhead. I went from being a world class CEO for my entire life. I have a stellar record for 30, 40 years. All of a sudden I had a year of a disaster. We're out of money, lot of debt, $150 million of COVID collections that I can't collect on. All of a sudden I look like all the CEOs that just burn through capital and don't pay attention. I actually paid attention.
There wasn't a lot I could do. It got me to a place now where I'm turning around the company. What's interesting is all of our old shareholders, a lot of them sold, left, got upset with me. I have new groups of shareholders that understand the situation, that believe in me and I'm going to execute, I'm going to kill it the same way. I took over this company and turned it around once before. I'm going to do it again. That gives you the timeline. You can go through it yourself. This is all, of course, on our website, Crown Medical. This is critically important. I just want to talk about this for a couple of minutes. Crown Medical has dozens of attorneys, the strategy, and they're representing 40 labs.
By the way, they said that our lab, of the 40 COVID labs that they're representing, we have the best data set of any of them. We had a world-class IT team, we have the strongest data. What they do is they're working completely on contingency; we're not paying them a penny. What they are doing is they're going to approach the 1,100 insurance companies that owe us money. What's interesting about this is a big % of the money that's owed to us is from insurance companies that actually reimburse the claim. Hypothetically, if they owed $125, they would pay $85, they would pay $95. It was really incredible. It's business I've never been into before where the insurance company just decided arbitrarily how much they wanted to pay you. There was a legal amount that they had to pay and most of them didn't pay it.
Because they paid the claim, they can't now claim that it wasn't a valid claim. In other words, they already went through all the due diligence. They confirmed that it was a valid patient, confirmed that it was a valid doctor with a valid request form, that our lab performed the test properly. All that's been done. We were already reimbursed, but they underpaid. There's no excuse for underpayment. What's interesting is these insurance companies did this with labs throughout the country. It was a common practice. Our strategy was to bankrupt the lab subsidiaries. They've been, for all intents and part, not technically dormant, but they haven't been doing anything for the last couple of years. We bankrupted them. We go into bankruptcy court. Now in bankruptcy court, we can, with one judge, one court, one judge, approach these 1,100 insurance companies. It's incredibly efficient.
Crown Medical has dozens, I think they may have up to 100 attorneys working for them. A couple dozen may work specifically for Crown Medical. Others are more freelance. We're not paying any of them a penny. They've been working on this for six months. We're now ready to go to the next step. We had a key component of that. We had to find a bankruptcy attorney that was independent of Crown Medical. I thought that was a simple procedure. It turned out to be really complicated. We found somebody who's fantastic. He's been working night and day. We just flew through the courts. The judge is very happy with us. We're about to go to the next steps. The last step is Crown Medical gets appointed as special counsel. That could happen this week. They're already talking to insurance companies.
The insurance companies are waiting for it to be official. They like to put this off as much as possible. Once Crown Medical becomes special counsel, they then have all rights to go after these insurance companies, start serving litigation on 1,100 insurance companies. These insurance companies do not want to go into discovery. The CEO of Aetna does not want to be deposed. Why did you underpay? What's interesting is because Crown is representing these 40 labs, for any insurance company that they approach, they may have four other labs that also were underpaid in four other states. Number one, the insurance company. Let's suppose the insurance company owes us $500,000. They're not going to want to fight five lawsuits in five states over the $500,000 that they owe us.
Furthermore, if they owe in five states five labs and they underpaid all five labs, that looks really bad in front of the judge. It shows not a mistake, not, oh, this is what we were supposed to pay. It shows a pattern of behavior that some would deem as fraud. The insurance companies don't want to get into any of that. Crown Medical, for another several labs, has already been very, very successful. The head of Crown is very confident they're going to start settling in the coming months. When they do, our whole company is going to look like a very different company than it does now. We have a market cap under $20 million. We expect to net at least $50 million. This is coming straight from Crown. We expect the net of their contingency fees and all other expenses, $50 million.
We have these other assets that should be worth many multiples of our market cap. It just gives you some background. That's why I wanted to spend a fair amount of time. Obviously, it's important. Right now, we're cash constrained. It keeps a limit on our stock price. It keeps people worried. All that in a few months is going to change dramatically. In the same way it turned around the company when it was $0.65 a dozen years ago, I'm going to do the same thing. Back then, I paid out cash dividends. I did stock buybacks. I'm looking forward to the time when I can do the same. Okay. ProPhase Biopharma. During the time when we were generating all this cash from the COVID testing, we acquired an asset which, by the way, ThinkEquity introduced us to.
They were really excited about it, and I'm really excited about it. It's our esophageal cancer test. This is a world-class, groundbreaking test. It is sorely needed in the medical community. Every time I talk to people, there's somebody that has a relative that has esophageal cancer or died of it. It's so prevalent and it's growing throughout the world, just in the U.S. alone. Let me tell you a little bit about this. People who have a lot of acid in their stomach, a lot of times overweight people. You don't have to be overweight. If you have that acid in your stomach, it can eat away at the bottom of your esophagus. The bottom of your esophagus is connected to your stomach. That acid, over the years, that churning of acid eats away, can create precancerous cells that develops into a condition known as Barrett's esophagus.
Once you're diagnosed with Barrett's esophagus, you have between a 1 in 50 and 1 in 100 chance of developing esophageal cancer. 1 in 50. 1 in 100 may not sound like a lot unless you're that person. The reason why it's so important is if you develop esophageal cancer, 80% of the people that are diagnosed die within three to five years. You don't want to be diagnosed with it. If you have Barrett's esophagus, you don't want to find out it's progressed to esophageal cancer. You have millions of people getting endoscopies every year. That's the standard of care. Right now there are about 70 million endoscopies performed each year. Seven million are specifically for people at high risk of esophageal cancer.
The average reimbursement rate by the insurance companies for an endoscopy is like $3,000 or $4,000. They're spending $21 billion - $28 billion a year on these endoscopies. The problem with the endoscopies, it's an inexact science, it's an inexact diagnosis. If it was a more exact, accurate diagnosis, there wouldn't be such a high percentage of people, it's one of the deadliest cancers right up there with pancreatic. 80% of people diagnosed die of esophageal cancer. The reason is because the diagnosis is so inexact, and by the time they tell you you have esophageal cancer, it's too late. Our test tells you significantly earlier and significantly more accurately whether or not you have esophageal cancer, but not only if you have it, but also if you're at high risk or low risk.
Right now, our belief is every single one of the 7 million endoscopies that are being performed should include our test. If we get reimbursed, hypothetically, $1,000 - $2,000, that makes it a $7 billion - $14 billion business for us. You can call that the target market, but as far as I'm concerned, we have no competition for this. There is an esophageal cancer test out there where if you test positive, the next step is to get an endoscopy. That would actually add to our business. There's one other test out there, and I don't want to get too much into this, but it's kind of interesting. We have the IP on the eight proteins that are virtually always expressed when you're developing esophageal cancer. Nobody else can use these proteins. There's one test out there that is a precursor where then you get an endoscopy.
There's another one that uses an endoscopy, but we only need one specimen from that endoscopy. The other test sometimes requires 8, 10, 12 specimens. The typical endoscopy only has 8. Sometimes you'd have to do two endoscopies. On top of that, they don't have our proteins. All these other markers, they don't show up. A lot of times when you're developing esophageal cancer, these eight proteins virtually always do. We have the IP on these eight proteins that virtually always are expressed when you're developing esophageal cancer. Our test can tell you, based on how much they're being expressed, whether you're at high risk or low risk. If you're at high risk, you get a procedure called an ablation that destroys the precancerous cells. If you're low risk, you don't have to get an endoscopy as often.
The $21 billion - $28 billion that insurance companies are spending on endoscopies, billions of those dollars are unnecessarily spent on endoscopies that you don't need. If you're the patient, just imagine you're at low risk. I don't have to worry about getting esophageal cancer. I don't have to get endoscopy every other year. On the other hand, if you're at high risk, you can get an ablation and save your life. Insurance companies don't want to reimburse ablations as a general practice. GIS would love to give everybody at risk an ablation because it's expensive and most people don't need it. Now we have a test that will tell you if you should go get an ablation or not. We'll save patients' lives, we'll save insurance companies billions of dollars, and we'll give other patients peace of mind. All the numbers I gave you are just in the U.S.
This is a growing problem around the world. This test, now the next step in the test, we just announced yesterday in a press release. We just got accepted and published in a major journal. The reason that's important is these journals don't publish your test unless key opinion leaders have studied it, know it well, and approve of it. It gets published. Once it gets published, that's the last step before commercialization. We can now start working on commercialization. As our company gets financed, this test could be worth hundreds of millions of dollars in a year or two. It could be worth billions of dollars in two or three years. Just imagine the companies out there, Exact Sciences, I don't know what, I haven't looked them up lately. $10 billion company, they're very big in colon cancer. They want to get into esophageal cancer.
They don't have our protein markers, they don't have our IP. We also have some other things, I don't want to get too specific. You can do it also, there's a brush. We found out our test is just as accurate with the brush technologies, where you put a brush down your throat instead of an endoscopy and you pick up the cells from that. There's a lot to this. We've gone through a lot of steps and we're ready for commercialization. I'll touch on this briefly. Nebula Genomics. Back when we were looking to diversify from COVID, we acquired our esophageal cancer test and we also acquired Nebula Genomics, founded by George Church, world renowned in the field of genomics. We provide a phenomenal service. I had a management team that honestly didn't do a great job with this. They're gone.
My son, you know, some people say, oh, your son works for you, that's a problem, or whatever. He's the one that built from scratch $100 million a year COVID business. He took over the business, cleaned it up. We shut down the laboratory. We now have a clean business that's break even. That based on the subscription we used to sell, the previous management used to sell. In fact, even before we acquired it, they sold a lifetime subscription. We now sell a one year subscription. We found we get the same conversion rate selling in one year as a lifetime. People renew the following year. The reason they renew is because we have such a great reporting service that people want to keep up with it. Let me explain a little bit. I kind of jumped ahead. I don't really care about a lot of these slides.
I don't have time to go through them. Let me just go back. Just explain this very briefly. In ancestry test studies, think of your DNA as a long strand. In ancestry test studies, maybe 1%. We studied the whole DNA. That's why it's called whole genome sequencing. The beauty of this is everybody has a different genetic makeup. Based on your genetic makeup, you're predisposed to different diseases. You may be at low risk for one disease based on your genetic makeup, but a high risk, for instance, colon cancer. If you're at high risk for colon cancer, insurance companies recommend you get your first colonoscopy when you're 50 years old. If you're at high risk, you may not want to wait because the insurance companies are doing this on actuarial tables.
You might want to get your first endoscopy or colonoscopy at 40 years old or 35 years old. If you know you're at high risk, you can prevent. By the same token, you could be at high risk of esophageal cancer. As we were talking about, suppose you're overweight, you reduce, you lose weight, you lead a healthier life, you reduce your risk of esophageal cancer or breast cancer, you'll get your checkups more often. It's really great information. Unlike an ancestry test that studies 1% of your DNA, that's great. If all you want is ancestry information, you can link up to everybody in the world and everybody in the past by studying that 1%. Think about it logically. If you want to learn about your health, why would you study 1% for an extra $100 - $200 instead of getting a cheap ancestry test?
I don't mean cheap like it's a bad test. It's a good test for what it does. It's an inexpensive test. For a little bit more money, why wouldn't you get a test that studies your entire genome? We do it very cost effectively. We have a reporting system that's better than anybody in the world. We also have one of the largest databases in the world. We have the equivalent of our database, the equivalent of 150 million ancestry tests. Do you have any idea how large that is? Do you have any idea how valuable that is? We can't sell the database by itself for all kinds of potential political issues, selling people's data, that kind of thing. We could sell Nebula Genomics with the database.
The database by itself, forget everything else he talked about today, the database within Nebula Genomics probably worth more than the entire market cap of our entire company right now. That's how silly our market cap is right now. That's just the database, but then we have a world class reporting system and we have George Church behind us on our advisory board. Nebula Genomics is a great business. The only thing holding it back right now is capital. As soon as we're better capitalized, now that we've cleaned it up, we can grow this business and it will be an incredibly valuable business. The same way I turned around the Cold-EEZE cold remedy zinc lozenge business that was going out of business. I sold that for $50 million. I can do the same thing with this. Now it's clean. It's operating at roughly break even.
We cut out all the overhead in our company. We are clean as a whistle. We just have debt. The primary payments we're making each month are to debt, not the operations. As soon as the Crown Medical cash flow starts to come in, we're going to look like an incredibly different company. That's months away. I'm not talking years away. I'm talking about months away. That's our company. Those are the three assets I could talk about. This isn't working. That's interesting, but it doesn't matter. I won't use it. There we go. That's our management team. Can somebody investment highlights. You can go through the investment highlights. The bottom line is I did that very, very quickly. I could have gone into more detail. The bottom line is I have been my entire life been devoted to helping other people.
One of the ways I do this, help them make money. For 40 years, anytime I invested in a stock, I would tell my friends what I was investing in and they would invest alongside me. Never took a penny from anybody. As I got older and we got more successful and the investments became larger, I became very involved with the managements of the companies I was investing in. That's how I started doing this. This wasn't a game plan. There was a company before this called ID Biomedical that I invested in. Ultimately I became an activist shareholder and forced out the CEO of the company, turned around the company. Company going bankrupt. I did two financings for them. Ultimately they were sold to GlaxoSmithKline for $1.4 billion, a company that otherwise would have gone bankrupt.
I don't take credit for the sale, but I take credit as an activist shareholder for turning around the company. Then I did the same thing with our company. That's my history, that's my background. I just went through the most difficult year of my life and now I'm coming out the other end. Now honestly, I'm going to kick butt. For anybody that doesn't think so, sell the stock, don't invest, move on. Watch where we are a year from now. Remember this meeting and you're going to remember. Holy shit. Ted did what he said he was going to do. I have to get through the next few months. The Crown Medical cash flow is going to start to come through. That's going to be world changing for the company. At the same time, I have people that are very interested.
I have somebody that just asked for a meeting today to meet on Nebula Genomics. I have somebody else that wanted to meet on the esophageal cancer. They want a joint venture, they want to do all these different things. I could probably do something with our esophageal cancer test today, but I think it could be worth a billion dollars. Why do I want to take some fast money for a small percentage of that company? Question, is your test approved? Yeah, good question. We're doing this as a laboratory developed test. Our two, if you want to call them competitors, I said one isn't even a competitor because if they test positive, the next step is to get an endoscopy anyway. That will actually help our business. They paved the way with LDTs.
The FDA a year ago was talking about they wanted to manage all the LDTs and then we knew that was ridiculous. Of course, they backed off of that. The FDA has backed off. As a laboratory developed test, we're set to go. By the way, we partner with Mayo Clinic and with M Probe. Right now they have the mass spec machine. Another sophisticated part of our test is we're taking that specimen from the endoscopy. Right now when you get an endoscopy, a pathologist is looking at that under microscope. You can have two pathologists looking at the same specimen under the same microscope or one will tell you you have esophageal cancer, one will tell you you don't. That's why it's such an inexact science.
We take that specimen, we run it through what's called a mass spec machine with AI and it tells you very specifically and studies the exact proteins that get expressed. It's a very sophisticated test. We're partnered with Mayo Clinic, they were also involved in our study. One of the other scientists is also on our advisory board, is going to help us commercialize it. We have some really nice partners. The next step to commercialization, as I said, was getting published in the journal. Now that we did that, now we can start exploring. Reaching out to the GIs, that published journal is a big part of that. The fact that Mayo Clinic and M Probe are behind us and our published clinical study, we can now start working on commercialization. Yes, please.
These proteins, can you generally tell us, are these inflammatory, or are these products of the tumor, one argument.
As I said throughout this meeting, I'm an entrepreneur for 40 years. I'm not a scientist. I am happy to have one of our scientists get back to you to talk more specifically about the proteins. Do you have any other questions? I went through all that pretty quickly.
What journal was it?
Oh gosh, you know what? It's in the press release from yesterday. I don't want to misstate it because they actually have a couple of journals and I don't want to state for the record the wrong journal. There was some confusion over which journal it was in, but it was literally just published and we just literally press released it yesterday. By the way, it was published in the same journal that the other leading test that's getting all of the success right now published in, the same journal. They commercialize the same way.
The beauty is these two other tests out there paved the way for us with the insurance companies with their methodology for commercialization. We're going to follow that same approach. One of those companies has like a $150 million market cap, and the other one has like a $450 million market cap. The one with $450 million has other assets in it. The point is the potential of our test just in the next couple of years, the value of it should be in the hundreds of millions of dollars. Again, our market cap's under $20 million, and we have $50 million of cash coming into the company over the next 12 months. That'll start flowing probably in three months.
That's about all the time we have. Thank you very much, everyone. Thank you, Ted.