Good day, and welcome to the iAccess Alpha Virtual Best Ideas Spring Investment Conference 2026. Our next presenting company is Daxor Corporation. If you'd like to ask a question during the webcast, you may do so at any point during the presentation by clicking on the Ask Question button on the left side of your screen. Type your question into the box and click Send. I'd now like to turn the floor over to today's host, Michael Feldschuh, President and Chief Executive Officer at Daxor Corporation. Please go ahead.
Thank you very much, and good afternoon to everybody. A pleasure to be speaking at this conference. I am Michael Feldschuh, Daxor's CEO. We will start with our usual disclosure slide about forward-looking statements. Okay. Who is Daxor and what is it that we are focused on? Daxor is a company that is a NASDAQ-listed company that is focused on advancing our mission of enabling optimal fluid management through blood volume analysis throughout the entire healthcare system. Our vision is that all patients should have optimal blood volume management. Daxor is headquartered in Oak Ridge, Tennessee. We have a fully owned 20,000 sq ft operating facility. It is a state-of-the-art center where we do both research and development and production. It is located in Oak Ridge, which is a center for nuclear medicine.
We have a vertically integrated infrastructure there, where we are able to produce both the companion analyzers that we use and a capacity of up to 200,000 test kits per year for our diagnostic test. First of all, fundamentally, what is Daxor? Daxor is a diagnostic company, specifically a pharmaceutical diagnostic company, and even more specifically, a radiopharmaceutical diagnostic company. We produce a diagnostic drug called Volumex. Volumex is a diagnostic drug which is injected into a patient. It is allowed to circulate, and then the blood from that patient is analyzed in our proprietary patented companion analyzer to determine the patient's blood volume. I'll go into why that metric is so important and where blood volume is used. The fundamental business model of the company itself is a so-called razor-and-blades business model.
In other words, there's every single time the test is run, a test kit which consists of the Volumex radiopharmaceutical is consumed, and that ensures that there's a predictable and scalable recurring income stream because every time that test is utilized with our analyzer, a new kit is required. The analyzer on the left is not a substantial portion of our revenue stream. Really everything comes from the syringes. Blood volume management. What is it? Why does it matter? What's important about it? Well, the simple answer is this. Blood volume management is present all throughout medicine. It's very important for care teams for both chronic and acute conditions. That means things that are treated on the outpatient side or on the inpatient side, being in the hospital side, to know a patient's blood volume and to manage it.
Anytime you see a patient who has an IV pole next to them, or they're getting a diuretic or a transfusion, those are all volume management decisions, and those decisions are really important because blood volume is the conduit by which we literally breathe. We perfuse our tissues by having the blood circulate within our system. If for some reason we do not have the right amount of blood in our body, too much or too little, or the wrong mix of components within that blood between red cells and plasma, that can cause some very, very serious conditions, complications, and even death. Where are some of the examples of blood volume management being the cornerstone of care? Well, heart failure care, critical care, sepsis, syncope, which is fainting and dysautonomia in general, surgical blood loss, and acute respiratory distress syndrome.
These are just some of the many areas of care where care teams are intervening in order to manage the patient's outcome primarily by looking in many cases at their blood volume. If patients are being treated in all these areas, how large a market are we really talking about here? Well, just in the United States alone, you can sort of look at as many as 134 million patients have some form of a condition by which blood volume is central to what's going on. Heart failure, for example, alone, leading cause of death in the United States and 7 million heart failure patients in the US alone. That number continues to grow as baby boomers age. 1 million of whom will be hospitalized this year.
You look at the critical care space, you can see 5.7 million are admitted annually into critical care units. ARDS is a significant subportion of those types of patients. Syncope and dysautonomia patients are conservatively at 1-2 million. Anemia, which can be both a chronic and acute condition, affects several million patients a year. As you can see, there's also a large number of patients with hypertension, many of whom have a form of hypertension that's hard to manage called refractory hypertension, which blood volume analysis may prove illuminating to help guide their treatment.
When you look at the healthcare spend in this area, heart failure, hypertension, critical care sepsis, these are some of the largest and most expensive conditions that we spend on in our healthcare system, and it has a profound impact on outcomes for our entire healthcare population. If that's what's going on, you know, obviously we're treating these conditions. What's the issue? Well, what's going on is a great deal of uncertainty. There's something that would be akin to, it's sometimes almost like a heated debate at the bedside. The heated debate is what is the patient's actual volume status? If you were to listen to what care teams are saying, for example, you know, for example, the example on the left, you might say, "Well, I think the patient is a little bit wet.
I think they need to be diuresed." What you see is that there are uncertain estimates made for patient care in a categorical way. These are not patients who are being quantitated and directly and accurately measured. There's a variety of different indirect proxies that are being used here, and I'll go into that in a second. Similarly on the red cell side, you can see in the center example, people are looking at hematocrit or hemoglobin levels, but those types of tests are not considered sensitive or specific when there has been a lot of fluid changes in the plasma volume. So there's, again, a lot of uncertainty. Also in chronic treatment in the outpatient side, there's a lot of times where patients are being managed for heart failure or hypertension.
The drugs are being deployed, but the outcomes are not good, and the conditions aren't being managed well. There's a lot of trial and error in trying to pivot to treatment plans and as a result, a lot of suboptimal care. What's underlying all of this uncertainty? What's the problem? Well, the problem is very simple. The problem is that we have, as a healthcare profession, been relying upon a variety of proxy and indirect markers to try to guesstimate the patient's actual volume status. Some of these are pressure-based measures, blood pressure or cardiac pressures. Some of them are biomarkers like BNP. Some of them are things like EKGs or chest X-rays. The problem is all of these things are indirect measures of the actual circulating volume of the patient, and that's what needs to be managed.
However, Daxor is the only producer of an FDA-approved direct measurement test for blood volume along with patient norms. That solution provides a game-changer of precision leading to far better care and outcomes. What is Daxor's solution and technology to answer this problem? The answer is Volumex. Volumex, as I showed you earlier, is a syringe. It's a tracer. It's 1 milliliter of albumin, which has been tagged with I-131. It's injected into the patient's bloodstream. It's allowed to diffuse, and then we measure by taking a sample of the patient's blood how diffuse that tracer has become. From there, we can compute exactly how much blood with over 95% accuracy is circulating within the patient's bloodstream. That's a number that absent our test is just completely unavailable to care teams to be able to individualize care.
Our test at this point has been utilized in over 100 different medical, academic medical centers, regional hospitals, physician offices. Over 75,000 tests have been shipped. We have over 170 peer-reviewed studies showing the superior accuracy of our test compared to proxy measures and the improved outcomes that come from having a better diagnosis. It's really a cornerstone of medicine. If you don't know what's wrong with the patient, if you can't make an accurate diagnosis, then the therapeutic decisions that follow from there, by definition, are not going to be optimal. Our test enables care teams to really understand exactly what the problem is with the patient's blood volume, and therefore the treatment of it is by definition going to be informed by a really accurate diagnostic and more effective.
This is a test that has a lot of things going for it. We have CPT and APC coding. That means we have reimbursement. We are recognized by both public and private insurance for reimbursement, both in the hospital and in the physician office setting. This is a test that can be done wherever the patient presents, so it can be done in the hospital. It's possible to do this in a physician office with the right licensing and technicians. Results can be achieved in as little as 30 minutes, but we have a number of different ways of getting to test results, and I'll talk about those models in a moment. As I mentioned earlier, it is FDA-cleared. It has an excellent safety record and something that is considered the gold standard for accuracy.
What kind of centers have been using it? As I mentioned, you have leading academic medical centers, the Mayo Clinics of the world, the Dukes of the world. We have had systems set up in VA centers, Weill Cornell, Yale, et cetera. These are all centers using this for both clinical treatment in many cases and/or research as well because blood volume is central to so many different conditions within the healthcare system. Last August, we received clearance from the FDA. That's a picture of me ringing the closing bell, celebrating the approval of our newest companion diagnostic system. That is a, as you can see, it's a handheld rapid system. It was developed over 7 years with funding from both the Defense Health Agency and the National Institutes of Health.
We consider it really a game-changer because it speeds up the processing of the samples and simplifies it greatly. It's something that we've been developing, and we are now in the process of building out inventory and starting to deploy these systems to customers. As I mentioned, we have replaced the older system. You can see in the left-hand picture that blue box that existed. That was the semi-automated carousel-based lab system. The new system, as you can tell from the picture on the right, is substantially smaller, lighter, battery-powered, ruggedized, and meant to be moved from lab site to lab site. It's really something that is considered a game-changer. Now, in addition, to its footprint, it enables a pretty simple deployment of the test.
As you can see from this illustration, the test involves injecting this syringe with a patient-ready dose of the tracer. That's in step one. Blood is drawn in step two and put into our patented cartridge system, and then deposited into the analyzer along with patient-relevant patient data in order to get the results. There's also another way in which patient can have this test deployed, and that is an exciting new offering for us that we've just developed in the last two years. The so-called Easy BVA Lab solution is one that allows care teams where it's not important to get an immediate result. If you think about, you know, how often you go to the doctor's office, they draw your blood, they send it out to LabCorp and Quest, you get a result 1, 2, 3, 4 days later.
This is a similar idea. In other words, we ship these syringes of our tracer to the care site, and even though it's a radiopharmaceutical, it's an incredibly mild radiotracer. It's shipped in cardboard boxes through FedEx, so it's really equivalent to exposure of about a chest X-ray, so it's not a very big deal. The syringes are shipped to the care site. They are injected into the patient, blood samples are collected, and then the blood samples are shipped overnight via FedEx to our CLIA-certified lab in Oak Ridge, Tennessee. We act to process the lab samples. This is an exciting model because it means that physician offices or hospitals do not need to even set up the equipment or train on the equipment in order to get the results.
The trade-off is that there is a 24-hour turnaround time, but for many, many conditions, 24 hours, particularly chronic and outpatient conditions, that waiting time is not an issue, and it's very, very convenient to be able to deploy the test that way. Now, why is this test worth running? What are the advantages that accrue from being able to actually get these tests, deployed? Well, you can see here, these are just some of the many, hospitals and systems that have published research. I mentioned earlier there's over 170 different, peer-reviewed publications and presentations that have come out about blood volume analysis. This is an important one I'd like to highlight. This shows what's at stake. This was a study that was published in the Journal of the American College of Cardiology Heart Failure.
It's one of the most prestigious journals in the world around heart failure research. It showed a sample of 245 patients, serial admissions at a New Jersey hospital center that were given blood volume analysis to guide their care. These patients all received blood volume analysis at some point in their care, and then the care decisions were driven by the knowledge of that test. The results of this were really profound. What it showed was that when patients received BVA, they had a 56% reduction in 30-day readmissions. That's a very important metric that hospitals are based on. Remarkably, they had an 82% reduction in 30-day mortality rates and an 86% reduction in 1-year mortality.
On top of that, their length of stay was 2.6 days fewer when they received blood volume analysis at the start of their stay. In other words, when care teams started with the knowledge of their blood volume, because blood volume is primarily what they're managing when they get hospitalized, they were able to quickly triage them and treat them a lot more faster and effectively and discharge them. Not only did they get out quicker, which saves the hospital a lot of money, but they died at a much lower rate and were readmitted at a much lower rate. Just to give you a sense of how profound this impact is, the mortality rate on a one-year basis for the control group was 35%.
In other words, slightly more than 1 in 3 patients died within 12 months of being discharged from the hospital in the control group. In the blood volume analysis group, the mortality rate was 4.9%. In other words, fewer than 1 in 20 patients died within a year who received this diagnostic test to inform their care. 1 in 3 if they didn't get the test, less than 1 in 20 if they did. That is a remarkable 30% absolute reduction in mortality, and it's something that has helped us to gain a lot of traction to quantify how much is at stake with getting this test done. We also have similar data in the ICU world showing a remarkable 66% mortality for patients in surgical ICU. Many of these patients had sepsis and acute respiratory distress syndrome.
Again, this is something that clearly helps wherever volume is in question. Is it heart failure? Is it in the ICU? And obviously for outpatient use, this also has a lot of benefit. This is a very inexpensive solution to a costly, complex problem. That's one of the things that's exciting about BVA. It's very good for the patients. It's very good for the providers. It is also good ultimately for the payers because it's much cheaper to give them an accurate diagnostic test which enables existing conventional therapy to be far more effective than to invest in very expensive but not very effective therapies. This is a really low-cost way of making sure that the patient gets the right drug at the right time.
You can see from this slide that it is considered extraordinarily cost-effective based upon other measures within the healthcare system if you know what a quality score is. As I mentioned earlier, it's covered by both Medicare and private insurance for both inpatient and outpatient use. Let's look at the commercial model for this. Again, taking a look at the patient population, we have a lot of data right now centered around heart failure, some in the critical care world. This is not just a heart failure test, this is a test that has applicability to a broad range of symptoms. The labeling for our drug is broad in the sense that our drug is labeled to determine blood volume wherever it is medically necessary.
That means that we are able to market to cardiologists, but we're also able to market to critical care doctors, nephrologists, et cetera. It's a very unusual and a very advantageous labeling for our product, our pharmaceutical. You can see here from this slide, there's 7 million heart failure patients, one million annual hospitalizations around it. Critical care sepsis, 7.4 million admissions annually. You can see that there's a very large population of patients that would benefit from receiving this test. Some of the call areas are nephrology and oncology, POTS and dysautonomia centers, advanced heart failure clinics, and private physician offices are just some of the areas we're looking to expand into. As we look into, you know, this large market, this is a slide for illustrative purposes.
This is not a company forecast. We're just trying to give a sense about what the addressable market starts to look like. For example, at 7 million patients, assuming an average effective test price of $1,000 per syringe, you're looking at a $70 billion heart failure market, assuming patients get 1 test per year. If you assume a 30% penetration at some point of maturity, that would look like 2.1 million tests a year. It's a very, very large market. The critical care market is also very large. Also a substantial number of patients, again, assuming certain penetration. Hypertension at even a low penetration rate yields massive numbers of tests. You can see that there's really a very large recurring number of tests that are possible to be made within this market.
Right now, we are ramping up our sales team. We just completed a capital raise at the end of January, so we have been hiring into our commercialization teams to accelerate things. We have a sales and clinical support team of approximately 12 people. We also are carrying out contracts with the Defense Health Agency, and we have partnerships with certain other entities like MedAxiom, which is part of the American College of Cardiology, to again raise awareness and to drive more adoption. As we start to look at the strategy and the important milestones recently, we just announced our results a few days ago. Our operating revenue increased 45% year-over-year on an unaudited basis, in total, for 2025.
We've implemented a price increase for our diagnostic test this year. We have been expanding to new accounts, 17 in total last year to since the start of this year, and deepening our partnerships. We have a number of different outcomes that have been published in peer-reviewed journals, RCTs and funding from places like the NIH as well. It's always part of gaining traction is to have more medical evidence. Recent milestones that are very exciting. As I mentioned earlier, the August 510(k) cleared a new rapid portable analyzer. We've received, as is illustrated here, over $5.6 million in DoD contracts, over $1.1 million in NIH grants, and matching small business funds from Launch Tennessee.
We're also in the process of integrating our key supplier to take 100% of our production in-house, which is something that we expect to finish before the end of this year. What are the key takeaways here? Well, as I mentioned, we have this new analyzer, this integration of our supplier, which also will lead to the integration of another drug called Glofil to be added to our Volumex drugs. Glofil is a kidney filtration rate drug. It's another metric that is related to blood volume, but is not exactly the same thing. We think it's a complementary drug that we can put into our sales pipeline.
We are also in the process and something that we announced that we would do is we have applied to the Securities and Exchange Commission to begin filing our financials this year under a 1934 Act filing. We had been previously reporting under a 1940 Act form, which is why some of our past financials can be a little bit challenging for those who are used to a 1934 Act form to read. I encourage people to read my past shareholder letters to gain insight as well into the specifics of the business. We anticipate being able to file this year as a 1934 Act company no later than by the end of Q2. We hope earlier and we'll inform people as soon as we know.
We are working really hard to expand. As I mentioned earlier, we raised $9 million in an offering at the end of January, and the company currently has no debt, it has no warrants. It has a completely clean cap table, no converts. Very clean and small shareholder count. A small number of shares outstanding, and it means that we have. But we do have an expanding shareholder base, which is actually growing nicely. Looking at the specifics of our IP moat, we have 6 new patents have been filed since 2023. We anticipate the receipt of 3 new ones this year.
We already have 7 patents awarded, 9 pending, and we have a number of research projects and trade secrets under development as well. This is a slide that contains a lot of specifics of various different phase 1 and phase 2 contracts that we've received from various different organizations within, as I said, the Department of Defense, or now as it's called, the Department of Defense , and the National Institutes of Health. That is an ongoing part of our development. There are those partnerships. Let's look at the stock ticker DXR, market cap approximately now at around $66 million. Only 5.83 million shares outstanding. A very high insider ownership of 48.3%. Our net assets are $45.9 million as of 12/31.
That's under the 1940 Act filing, which includes our operating company as an asset. It does not include the $9 million gross that we raised in January. As you can see, the ESOP table is a modest 277,000 shares. We are essentially a pretty low-float company because we only have approximately 3 million shares in our free float. As I said, a very, very clean table with no warrants or converts or derivatives beyond the ESOP table. Circling back around highlights. Here we go. This is a company, a pharmaceutical company, radiopharmaceutical company that has a clear blue space to operate and expand. We have a broad and deep IP portfolio.
We have a number of excellent outcomes that have been published in peer-reviewed journals, so there's a great clinical story around it. We also have a good reimbursement picture for inpatient and outpatient settings. We've been able to expand our revenues aggressively, and that's even before the release of our new analyzer. We have strong partnerships with third parties like the Department of War and the NIH, and MedAxiom, as I mentioned earlier. This is a massive market for us to go after, and we're looking to aggressively ramp up our operations. Very importantly, we announced at the end of 2025 that we had a cash burn of only $289,000 for the year.
The company ex CapEx and one-off costs last year was able to be actually more than cash flow on a cash-on-cash basis breakeven. We've been able to accelerate our sales into this new cycle, and so we're very excited to deploy our capital and to expand our business. Driving all of this is a senior leadership team of experienced professionals. We're led by our Chief Medical Officer, Dr. John L. Jefferies, who is a very well-respected cardiologist, and Jonathan Feldschuh, our Chief Scientific Officer. You can see we have team members who have been involved at other major organizations such as Abbott, FreeMind Group.
All of these professionals bring different aspects to our innovative way of funding and expanding the company, and driving further research and IP, while doing so in a very shareholder value creation-focused way, which is our passion. These are various different sources and resources for many of the things that I've alluded to in this. I encourage people to download, look at the deck later in order to find out more about our company and about what we're doing. You can go to Daxor.com and see a number of resources there as well. Thank you for your time and attention. I hope that you have a very enjoyable conference.
Thank you. That concludes Daxor Corporation's presentation. You may now disconnect. Please consult the conference agenda for the next presenting company.