There's always my brother. We're good to go? Awesome. Good morning, everyone. Thank you for coming for the final day of the 20th Main Event. Yesterday, it was very active throughout. I think we finished with roughly, I want to say, 72 companies presenting in 1,100 meetings, so that was pretty good. As usual, as per tradition, I always open up track one, top morning slot, and we have a great company for you today. About eight months ago, the largest exchange in the world came to us and said, "Hey, do you want to collab on an event together?" I was like, "Yeah, absolutely." In early September, we decided to come back to San Francisco, our home field, and do a LD Micro-Nasdaq summit. On that day, there was over 20 companies that presented, and this company was kind of the unanimous favorite.
CapsoVision, ticker CV, is a company that is doing some advanced things on the medical side, and it's also something that is personal to me because I have had several endoscopies already in my early life. I was telling these gentlemen that there is a very good chance, I've done a few tests, that there is a sad chance that I may also get esophageal cancer, which is something that is close to what they are ultimately doing. In any case, please give a warm round of applause to the management at CapsoVision, and be prepared to be wowed. Thank you.
Thank you, guys. Thank you. I love this. Thanks. Thank you. Never seen it, believe me. Yeah. Good to go. Okay, so first, just to say that a lot of this presentation has forward-looking statements, and actual results may differ due to risks and uncertainties in our SEC filings. Now that that's out of the way, I'd like to introduce the team up here. Myself, I'm David Garcia, the Senior VP of Finance. Johnny Wang, our CEO and Co-Founder of the company, and Doug Atkinson, Senior Vice President of Sales. Our mission is simple, yet powerful, and that is to have a single capsule that you swallow and ingest and can screen for five of the 10 deadliest cancers in the world. This capsule would screen for esophageal, gastric, pancreatic, liver, and colon cancer, all in one capsule.
Through using the AI on the images that it takes, it could detect precancerous lesions before they become deadly cancers. So a little about the company. We are a commercially medical stage company. We have revenue of $3.6 million in Q2. We have 85 U.S.-issued patents, and we were just cleared for small bowel AI last month. Before that, we were FDA cleared for use of small bowel indication for the capsule. In the future, we have a robust pipeline that includes colon, pancreatic, and esophageal. So that's a summary. With that, I'll go ahead and just turn it over to Doug.
Thank you, David. David, if you wouldn't mind, if you could just hand the capsule to Lee, and she'll give everyone an opportunity to look at this very unique technology. What you'll notice first about the capsule is that it has four cameras. We're very unique compared to our competitors, and truly compared to a flex scope, an optical scope that a gastroenterologist or a general surgeon may use. We have four cameras inside our capsule, but they're placed laterally, one looking north, south, east, and west to capture a 360-degree view. It's not that we're just like a scope, but we're mimicking a scope, because a scope, a gastroenterologist or general surgeon can articulate.
When they take that scope and they insert it through the rectum to look at the colon, or they go ahead and insert it down the patient's esophagus into the gastric area and then through the pylorus into the duodenum, they will flex that scope and turn it at a 90 degree. We are mimicking that same approach. Why is that? Because you can't control a capsule like you can control a scope. That is what we're trying to identify here, and I want to make sure everyone captures that during this session, because it's very important as we explain our technology. We clearly have a better visualization than our competition, that we compete against companies like Medtronic, and we are fighting with them primarily in the small bowel market, where we have a true revenue stream.
The capsule's clearly shown, since we've been on the market, to have a superiority. With the battery life, clearly in today's age with GLP-1s, you have the ability to have successful diagnostic screening rates. Our capsule has a 98% success rate in reaching the cecum right now with our small bowel capsule versus our competition, which is 84%. With the incorporation of AI, which we'll talk about as well, is just improving the overall sensitivity and specificity of the product as well. The capsule itself is also all the technologies built inside the capsule. There's no external equipment on the patient. There's no data recorders, there's no sensor arrays. It's just the patient swallows the capsule. This is very unique, and we'll explore it some more. The image quality is different.
This is an image of what our competition looks like, or what we call a lumen view. The top image is what the CapsoCam brings to the clinician, and it's a panoramic view. So we're taking that 360 and then laying it out in a panoramic image. As we move left to right, would be all four cameras stitched and blended together to create a video. This is very important and seeing everything within the small bowel, because AI doesn't work with what you can't see, right? That's the ampulla. We see that. Not that it's clinically important to a clinician, but everyone has one. It's what we call a landmark. So we see that ampulla 80% of the time versus the lower image, which sees it 10% of the time.
It goes back to, again, what I stated, AI only works with what you can see. David talked about the revenue stream. We do have a strong revenue stream right now and a proven technology within the U.S. and international markets. The capsule itself is for small bowel that we're selling right now. We currently just finished up with a very big pivotal study with our colon capsule, which just closed out in August, and we'll be submitting that data in November. The small bowel capsule is an incredible market. The upper GI market by 2030 is going to be about $335 million in total. It's growing, which is positive.
Currently, the product is being used for looking for bleeds in the small bowel or gastric area, Crohn's disease, celiac disease, tumor masses, diverticula, or anything else that might be obscure within the small bowel that's causing issues for the patient. It's a growing market and one that we're selling in right now. We incorporate our sales force into it and how we sell the product. We currently have a direct sales force in the United States and a direct sales force in Germany. Outside of that, we use a best-in-class team of distributors throughout the world selling into 69 countries. What I want you to take away from this, too, is the additional technologies we bring to market. It's the same call point. We don't need, when we have our colon capsule, we don't need to hire a brand new sales force to sell that product.
It's going to be the same sales team. We will grow that sales team where needed. I'll work with David on that. We have an established sales force to sell right now. We have contracts with many of the largest group purchasing organizations around the country, groups like Premier, Vizient. We also work very closely with the largest HMO providers such as Kaiser Permanente, which we are their primary modality used for small bowel diagnostic. It's great to see the growth and acceptance of our product so early. Detecting and screening the colon market is a huge opportunity for us. As I mentioned, we're selling at about a $335 million market by 2030. The colon screening market is $17.8 billion.
It's a huge leapfrog from where we are now into this market and what's, I think, and what many of our investors believe is so attractive about CapsoVision. The colon market is huge, and we see an opportunity there with a colon capsule because what we've incorporated into our capsule with additional technology is the ability to measure polyps with a 3D sensor, identify where those adenomas are, flat lesions, spiral lesions. Where are they in the colon? Your colon is broken into three areas, an ascending colon, which comes back up through your heart, a transverse colon moving from right to left, and then the descending colon moving out through the rectum for discharge. Looking at that with a capsule is extremely important.
We believe we have the same type of opportunity within the colon space, not only as a screening device, but also as a diagnostic tool for surveillance. A healthy patient that doesn't have polyps but needs to come back five years later, why do an optical colonoscopy? Because the cost of a colonoscopy may be in the neighborhood of around $3,500- $5,000. They could take a colon capsule, which would be about $600, and then reimbursement is equal to what that GI physician would be receiving from the colonoscopy procedure. Let me break that down, what I mean by that. A colonoscopy, let's say, is $3,500. $1,200 of that colonoscopy cost is paying for the physician. There's other costs associated with that. Anesthesia. There's also the facility fees. There's also other costs that they can capture.
Now, we believe our capsule, when looking at that market, there's also an untapped contraindicated market for patients that can't have a colonoscopy due to the age. They're on blood thinners. They had a prior perforation or something went wrong with their last colonoscopy. They had an incomplete colonoscopy. A patient has chronic sleep apnea. It goes on. There's many reasons why it could. Just that alone, the 10% of the market that's contraindicated for a colonoscopy opens up a close to a $1.8 billion market for us. So tremendous growth and upside.
This is again, the opportunity I discussed with the FDA clearance we are submitting to them in November with our pivotal study. We believe we will have a positive answer back from the FDA by June/July of 2027, so six months out. Again, as I mentioned, the pieces are in place. The reimbursement is in place already with a CPT code, so it's paying roughly $1,000 through Medicare and then $1,250- $1,300 for commercial payers. With that, I'm going to hand it to our Co-Founder and CEO, Johnny Wang.
Thank you, Doug. What separates us from a competitor is not only technology but also workflow. It's a much more efficient workflow. Let me explain. A patient swallows the capsule at home in comfort, can swallow at home, and they don't need to go to hospital to wear the harness and all those things. After excretion, they send it to downloading center at San Jose. Then we, after processing, upload the imagery. Right now with AI, also the AI selected imagery to the cloud. So doctor can read anywhere, anytime, 24/7. Current incumbent procedure competitors, doctor have to go to hospital to read the video during office hours. Also during the era of AI, the computing power is a huge issue. If the competitor's solution have AI, then they need to have server in the clinics, and then they need IT maintenance for the server.
That's created a lot of problem, and it takes hours to run. It takes quite some time to run because of the server at the clinics is not very powerful. But we use cloud. When they need it, they have infinite power through the cloud, basically. That's a great advantage. The other things is all the image data are stored in the cloud storage unit. So we have the largest database to train for AI modeling. This is another huge immense advantage for CapsoVision. Next slide.
Sorry.
This is one of the illustration of artificial intelligence catching a precancerous polyp, advanced adenoma, in colon. The artificial intelligence we leverage here are convolutional neural network. Convolution is by mathematical function, they discern the pattern and go to the neural network. Basically, it's like eyes, discern the pattern, go to the brain. That's exactly what this AI model is doing. What's the benefit of AI? Normally, during capsule endoscopy, there are tens of thousands of images. Doctor needs 30 minutes. For colon, they need more than one hour. But as they continue to read the video, they try to concentrate. But continuous concentration is impossible. Also, one hour for them is too long. Doctor motivated by procedure volume because they're paid by procedure. With AI, it takes just a few minutes. For colon, maybe 10, 20 minutes, rather than over one hour.
For small bowel, just several minutes instead of 30 minutes. That's opportunity cost for the doctor because using this time, they can do other procedure to make more money. Also because, as we mentioned, a doctor gets tired from reading video, so their sensitivity, performance drops along the time. AI is not only more efficient, but it's more accurate. That's the most captivating part. Thank you. This is our second generation colon capsule. It has a better image quality and larger field of view. There's two ways an endoscope can miss polyp. First, endoscope didn't capture the image of the precancerous lesion. Then even with AI, they cannot analyze the image to get the pathology. That's a capture error. The camera didn't capture the pathology. The second, the perception error.
Because the colon has a lot of up and down, some pathologies, flat lesion, are similar to the innocent bump. So a doctor fails to perceive there is a pathology. This is called perception error. By larger field of view, we reduce the capture error. By better image quality, we reduce the perception error. As Doug mentioned, we're going to submit to FDA in second quarter, together with artificial intelligence. For these two pancreas cancer kind of screening, we are actually just beginning the clinical study a couple of months ago. When we drive a car in the darkness of night, we make a turn on a street, our headlight is shining on the outer curvature, right? Outer curvature of the road. We won't see the inner curvature. This is what a traditional endoscope with camera in front, that's what you will see.
Our panorama imaging, we look at it sideway, we will see the inner curvature. Unfortunately, pancreas duct, over 90% pancreas cancer is pancreas duct cancer, which is the most dangerous form of pancreas cancer. So when this duct start to have pathology, it is interacting with the duct opening. So we can see this duct regularly. The study we are conducting is undergoing. Also, when pancreas cancer happens, it most happens in the head. So if in head, there is tumor, the tumor will compress neighboring anatomy, which is duodenum. Sometimes even invade, so you can see the abnormality as well. So this study is undergoing. We are very excited about this study. For esophagus, as the gentleman who introduced us said that esophageal cancer, why esophageal cancer is such an opportunity for CapsoVision? Because currently, esophageal cancer survival rate is in the teens.
What that tells you, we do not have capable modality for esophagus, period. Period. If there is effective modality, it will not be in the teens survival rate. What we have, as Doug mentioned, we look at the mucosa directly, wall view, right? Look at wall rather than look at a tube, you look at lumen. Wall view has much higher detection rate than lumen view. Second, Canon, Japanese number one professional camera company in the world, is designing CMOS image sensor for CapsoVision now, due end of this year. We have high definition and high dynamic range CMOS image sensor from Canon, and with wall view, with artificial intelligence to discern subtle pattern, we think we got a very good chance to detect the pre-cancer lesion for esophagus. With that, Dave is going to continue the presentation. Thank you.
All right. Thank you, Johnny. Just have a couple slides here to wrap it all up. This summarizes our product pipeline. We currently have CapsoCam Plus, which we sell today in commercial right now. The AI module, which we just got FDA clearance for last month. Colon will be what we submit in Q4, and pancreas, we are working on right now, as Johnny talked about. The study is underway. Finally, esophageal varices, we will kick off that study in second half of next year. So I will quickly hit on some of the financial highlights here. We did IPO last year in July, and we posted revenue of $13.6 million in 2025. That was 15% revenue growth year- over- year. 53% gross margin, so gross margin is above 50%. As of June 30th, no debt outstanding.
Finally, the last couple points here is we did raise an $18 million registered direct offering, which we completed that in September. Before that, in August, we put an ATM in place, a $100 million ATM in place, so that we can use going forward. To summarize it all. So, we have a proven commercial business today. It is differentiated and defensible with 85 U.S. patents, differentiated in the wire-free workflow in the cloud. We just got approval for small bowel AI in the U.S., and that launch is imminent. We have already launched AI internationally. Up next is colon, which we will submit in Q4, next month. Finally, we have the pipeline beyond that, which I just covered, and we believe that that pipeline is what will create the long-term upside for CapsoVision. Thank you. I can turn over for questions in the last couple of minutes here. Yes.
Briefly, the capsule is $600. What is the cost of it, and how often can it be used?
So the $600 is for the colon capsule. Today, we sell for small bowel indication, that is $425. Our cost is roughly $200, which you see the slightly above 50% gross margin. And sorry, what was the second?
How often can it be used?
Oh, single use right now.
Okay.
Single use.
Okay.
That's correct.
That's probably good. The other question I had was, from the patient standpoint, for colon- for best results, do you have to do the typical colonoscopy prep?
Yes, that's correct.
You do.
Yeah.
Yes, you do. The unique thing is the patient, we are approved for telehealth, so this could be done at home.
Yeah.
It does require a prep.
Yes.
So, for the different applications, is it going to be a different capsule, physically different, or is it just different software, or what's the difference?
For colon capsule, it's more complicated. As the doctor mentioned, it has three-dimensional imaging sensor. We have quite a few patent here. Also, it needed to have some submarine type of mechanism, because a bowel transit is slow. The colon, they stay more than 24 hours, in average. So in order to have patient eat food faster after ingestion capsule, they don't need to fast very long. This is the slowest part, ascending colon, capsule, food coming out. So, at the beginning ascending colon, we have a mechanism like a submarine.
It can make the density slightly less than water, 0.99% something. It slowly ascend. So it's a little bit complicated. For upper GI, like esophagus, we need a very fast frame rate, because it come down faster. So, for the other kind of capsule, first minute, we do have very fast frame rate, and the rest we can slow down as needed. So, basically, colon cancer need something extra. The other things, all the hardware should be the same. Thank you.
I'm so sorry. We are officially out of time. Our next presentation starts in four minutes. If you have any additional questions, if you could please take them outside. Thank you so much.
Thank you.
Good morning, everyone. I'd like to introduce our next presenter of the day. Please welcome Jonathan Miller, Vice President of United States Antimony Corp. Good morning.
Thank you, and good morning. Go ahead and put my props down here. These are our forward-looking statements. We have a lot going on in different arenas of our operations, as well as our ongoing negotiations and conversations with the U.S. government. In the event that I say something that is in the works right now, let it be known that it is forward-looking. This is an older company. It's been around for 58 years.
The founder of the company passed away about six years ago, and his son took over briefly before a group of major shareholders, who held around 45% of the company, were unhappy with the way the son was managing the company and brought Gary Evans on board as an independent director. He then quickly became lead director, Chairman, Co-CEO, and then full-time CEO as of about August 2023. This is his fifth public company. He's had four on the NYSE in the oil and gas, which he started and sold, and then he was on the board of Novavax for 24 years. When they had the run-up during COVID, he transitioned the company from a women's Estrasorb company to a vaccine manufacturer and helped raise that company about $3 billion off ATM.
During his time moving through the ranks at this company, he changed the entire board and management team, so everybody in the company is new. I joined in July 2024 when we had about a $30 million market cap, and initially it was just about getting out in the street and telling the story. Typically, people have never heard of antimony, let alone who we were, not even the governors in the states that our operations are located. We also added a four-star general, General Jack Keane, on our board last year. Some of you may recognize him as a correspondent who regularly appears on Fox News, on Fox Business. We continued to make dramatic changes very quickly.
We knew that just to turn this company around, we had to have more vertical integration, more surety of supply, so we started moving into Alaska, where antimony was historically mined during war times, World War I, Vietnam War, Korean War, and so on, and beating some companies out from some of these historic claims by a matter of days. We have also diversified into tungsten. This came through our conversations with the government. One of the biggest catalysts that gave this company a shot in the arm was in September 2024 when China announced that they were cutting off exports of antimony worldwide, especially to the United States. And for decades, our own military and government and our entire industrial base had been getting antimony from China. They had the largest antimony-specific mine in the world called the Twinkling Star mine. It had been operational for 120 years.
It had driven the price of the commodity down to around $5 and put any other antimony businesses in the U.S. out of business. So we do give credit to the founder that he was able to keep the company alive as long as he did, making us the only producer of antimony products in North America. So what is antimony? Antimony is deemed a critical mineral by the Department of War and the Department of the Interior.
It is a semi-metal. Some refer to it as a chameleon metalloid. It has many different applications. The U.S. consumes around 26,000 tons annually, with about 32% of that being defense related. In the defense space, it is used in everything from ammunition, so every bullet in the world contains antimony, either to harden the lead or in the primers, which ignites the gunpowder. It is especially used in armor-piercing and penetrating rounds.
It is used in artillery shells. It is used in laser-guided missiles, night vision goggles, binoculars. It is used on the surface of aircraft carriers. It is used in fighter jets. A pilot cannot eject from a seat without antimony. It is lined inside helicopters, and there are many more defense applications, including military tents, cots, uniforms as a flame retardant, and others that we are learning about every day. The other biggest sector is going to be energy transition