SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________________________________
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the
Securities Act of 1934
FOR QUARTER ENDED JUNE 30, 1995
Commission File Number 0-12248
DAXOR CORPORATION
(Exact Name as Specified in its Charter)
New York 13-2682108
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
350 Fifth Ave
Suite 7120
New York, New York 10118
(Address of Principal Executive Offices & Zip Code)
Registrant's Telephone Number: (212) 244-0555
(Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports required
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes (X) No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS OUTSTANDING AT JUNE 30, 1995
COMMON STOCK 4,876,709
PAR VALUE: $.O1 per share
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS PAGE
Consolidated Balance Sheets as at
June 30, 1995 and December 31,1994 2
Consolidated Statements of Operations for the
Three and Six Months ended June 30, 1995 and 1994 3
Consolidated Statements of Cash Flows for the
Six Months ended June 30, 1995 and 1994 4
Notes to Financial Statements 5
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<CAPTION>
DAXOR CORPORATION
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<S> <C> <C>
June 30, December 31,
1995 1994
ASSETS
___________________________________________________________________________
Current Assets:
Cash $ 59,415 $ 59,962
Marketable Securities at Fair Value
June 30,1995 and December 31,
1994.(Notes 1 and 2) 35,064,075 33,598,931
Accounts Receivable 197,217 215,831
Other Current Assets 248,474 472,307
Tax Refunds Receivable 206,233 206,233
---------- ----------
TOTAL CURRENT ASSETS: 35,775,414 34,553,264
___________________________________________________________________________
Equipment and Improvements
Storage Tanks 125,815 125,815
Leasehold Improvements, Furniture
and Equipment 607,951 592,240
Laboratory Equipment 281,418 279,964
--------- -------
1,015,184 998,019
Less Accumulated Depreciation and
Amortization (600,055) (579,805)
--------- ---------
Net Equipment and Improvements 415,129 418,214
Other Assets 38,356 41,160
TOTAL ASSETS: $36,228,899 $ 35,012,638
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable and Accrued Liabilities $ 62,263 $ 15,682
Loans Payable (Notes 1 and 2) 2,411,798 3,864,605
Other Liabilities (Note 1) 127,895 110,406
Deffered Taxes (Note 3) 2,840,780 1,822,765
--------- ---------
TOTAL LIABILITIES: 5,442,736 5,813,458
Shareholders' Equity:
Common Stock, par value $.01 per Share:
Authorized 10,000,000 Shares: Issued and
Outstanding 4,876,709 shares at June 30,
1995 and 5,067,630 at December 31, 1994 53,097 53,097
Additional Paid in Capital 8,579,803 8,579,803
Net Unrealized Holding gains on available-
for-sale securities(Note 1) 5,410,105 3,470,428
Retained Earnings 18,919,200 18,051,094
Treasury Stock (2,176,042) (955,242)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 30,786,163 29,199,180
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 36,228,899 $ 35,012,638
========== ==========
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SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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<TABLE>
<CAPTION>
DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
<S> <C> <C> <C> <C>
1995 1994 1995 1994
---- ---- ---- ----
REVENUES
Operating Revenues $ 430,113 $ 467,733 $ 933,593 $ 953,908
Dividend Income 556,023 546,972 1,105,375 1,063,459
Gains (Losses) on Sale
of Securities 89,734 57,875 287,772 129,559
Gains (Losses) On Sale of
Options and Commodities 11,458 160,361 7,090 197,947
--------- --------- --------- ---------
TOTAL REVENUES 1,087,328 1,232,941 2,333,830 2,344,873
--------- --------- --------- ---------
COSTS AND EXPENSES
Operations of Laboratories 279,168 264,432 558,531 566,865
Selling, General, and
Administrative 431,262 341,961 829,996 646,076
Interest Expense, Net of
Interest Income 50,417 43,523 (877) (11,940)
------- ------- ---------- ----------
TOTAL COSTS AND EXPENSES 760,847 649,916 1,387,650 1,201,001
Net Income (Loss) Before
Income Taxes 326,481 583,025 946,180 1,143,872
Provision for Income Taxes 28,358 36,242 78,075 84,934
------- ------- ------- ---------
NET INCOME (LOSS) $ 298,123 $ 546,783 $ 868,105 $ 1,058,938
======= ======= ======= =========
Weighted Average Number
of Shares Outstanding 4,891,709 5,146,030 4,979,502 5,147,633
========= ========= ========= =========
Net Income (Loss) Per Common
Equivalent Share $.06 $.11 $.17 $ .21
===== ===== ===== ======
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SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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<TABLE>
<CAPTION>
DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED
<S> <C> <C>
JUNE 30, JUNE 30,
1995 1994
-------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income or (Loss)........................... $ 868,105 $ 1,058,938
---------- -----------
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation equipment and improvements........ 20,250 26,030
Amortization - goodwill........................ 2,804 2,804
(Gain) Loss on sale of investments............. (294,862) (327,506)
Change in assets and liabilities:
(increase) decrease in accounts receivable... 18,614 (3,485)
(increase) decrease in other current assets.. 223,833 2,661
(increase) decrease in tax refunds receivable -0- 25,000
(increase) decrease in other assets.......... -0- (4,480)
increase (decrease) in accounts payable,
accrued and other liabilities net of "short
sales"....................................... 46,630 (97,042)
---------- -----------
Total adjustments............................ 17,269 (376,018)
---------- -----------
Net cash provided by or (used in) operating
activities................................... 885,374 682,920
---------- -----------
___________________________________________
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for purchase of equipment and
improvements................................. (17,165) (16,684)
Net cash provided or (used) in purchase and
sale of investments.......................... 1,687,155 (1,215,904)
Net proceeds (repayments) of loans from brokers
used to purchase investments................. (452,807) 333,994
Proceeds from "short sales" not closed......... 117,696 167,877
----------- ----------
Net cash provided by or (used in) investing
activities................................... 1,334,879 (730,717)
----------- -----------
___________________________________
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of Bank Loan....................... (1,000,000) -0-
Payment for purchase of treasury stock....... (1,220,800) (84,739)
----------- ----------
Net cash provided by or (used in) financing
activities............................... (2,220,800) (84,739)
----------- ----------
Net increase (decrease) in cash and cash
equivalents.................................. (547) (132,536)
Cash and cash equivalents at beginning of year 59,962 262,299
----------- -----------
Cash and cash equivalents at end of period... $ 59,415 $ 129,763
=========== ==========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
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DAXOR CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1995 AND 1994
In the opinion of the Company, the accompanying unaudited consolidated financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of June 30, 1995
and December 31, 1994, the results of operations for the three and six months
ended June 30, 1995 and 1994 and cash flows for the six months ended June 30,
1995 and 1994. The consolidated financial statements include the accounts of
the Company and its subsidiary. All significant intercompany transactions and
balances have been eliminated in consolidation.
1. MARKETABLE SECURITIES
Upon adoption of FASB No. 115, management has determined that the company's
portfolio is best characterized as "Available-For-Sale". This has resulted in
the balance sheet carrying value of the company's marketable securities
investments, as of June 30,1995, and December 31, 1994, being increased
approximately 30.77% and 18.70% respectively over its historical cost. A
corresponding increase in shareholders' equity has been effectuated. In
accordance with the provisions of FASB No.115, the adjustment in shareholders'
equity to reflect the company's unrealized gains has been made net of the tax
effect had these gains been realized. The prior period has not been restated.
The following table summarizes the company's investments as of June 30, 1995.
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<S> <C> <C> <C> <C>
TYPE OF COST FAIR VALUE UNREALIZED UNREALIZED
SECURITY HOLDING GAINS HOLDING LOSSES
----------------------------------------------------------------------------
Equity $25,063,174 $33,375,178 $10,310,093 $1,998,089
Debt 1,750,016 1,688,897 28,388 89,507
----------- ----------- ------------ ----------
Total $26,813,190 $35,064,075 $10,338,481 $2,087,596
=========== =========== =========== ===========
December 31, 1994
TYPE OF COST FAIR VALUE UNREALIZED UNREALIZED
SECURITY HOLDING GAINS HOLDING LOSSES
-----------------------------------------------------------------------------
Equity $26,555,721 $31,892,894 $7,991,063 $2,653,890
Debt 1,750,016 1,706,037 22,544 66,523
----------- ----------- ---------- -----------
Total $28,305,737 $33,598,931 $8,013,607 $2,720,413
=========== =========== ========== ==========
At June 30, 1995, the securities held by the Company had a market value of
$35,064,075 and a cost basis of $26,813,190 resulting in a net unrealized gain
of $8,250,885 or 30.77% of cost. At December 31, 1994, the securities held by
the Company had a market value of $33,598,931 and a cost basis of $28,305,737
resulting in a net unrealized gain of $5,293,194 or 18.70% of cost. At June 30,
1995 and December 31, 1994, marketable securities, primarily consisting of
preferred and common stocks of utility companies, are valued at fair value.
2. LOANS PAYABLE
As at June 30, 1995 and December 31, 1994, the Company had loans outstanding
aggregating $1,600,000 and $2,600,000 respectively, borrowed on a short-term
basis from a bank, which are secured by certain marketable securities owned by
the Company. These loans bear interest at approximately 8.5%.
PART II. OTHER INFORMATION
ITEM 2 Legal Proceedings
As previously reported, Daxor Corporation, (through its separately licensed
divisions), has been involved in several proceedings with the New York State
Department of Health relating to its licenses to operate clinical laboratories,
its blood bank and semen bank. The following is a summary of recent activity in
these matters:
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1. Idant Laboratories, et al v. State of New York Department of Health, et al.
(Supreme Court, New York County; Index No.105052/94). Idant commenced suit
challenging the State Health Department's denial of Idant's clinical laboratory
and blood bank licensure operations for the periods including 1991-1993. By
decision and order dated April 13, 1995, Justice Freeman denied Idant's
petitions. A notice of appeal has been filed.
2. In the Matter of Daxor Corp. as Owner of Idant Laboratories(State of New York
Department of Health Administrative Tribunal). This matter was instituted by
the State Health Department in February 1993 alleging violations of the
Department's semen bank regulations. An amended notice of violation was served
in February 1994, which sought revocation of the semen bank's provisional
license in addition to the imposition of fines. The hearing on this matter was
concluded before Department Administrative Law Judge Jonathan Brandes in June
1995 and all post-hearing submissions have been presented to the Administrative
Law Judge. A decision is pending.
3. Daxor Corp. et al v. State of New York Department of Health, et al. (Supreme
Court, New York County; Index No. 131181/94). This Matter was instituted by
Daxor challenging the constitutionality of the State Health Department's semen
bank regulations. By decision and order dated April 26, 1995, Justice Harold
Tompkins denied the motion of the State Health Department to dismiss the
complaint and declined Daxor's request to convert the State Health Department's
motion to one for summary judgment. The proceeding remains ongoing.
4. Daxor Corp., et al. v. State of New York Department of Health, et al.(Supreme
Court, New York County; Index No. 107564/95). This proceeding was instituted by
Daxor to challenge the determination of the State Department of Health to revoke
all licenses issued to, and to deny all licensure applications for, Daxor's New
York health care facilities. The court (Tompkins, J.) heard argument on the
petition on June 23, 1995, and by decision and order dated July 17, 1995, denied
Daxor's application. A notice of appeal was filed and Daxor, by order of the
Appellate Division, First Division, dated July 24, 1995, obtained an interim
stay of effect of the Health Department determination. The motion for a full
stay pending appeal was submitted to the court on August 14, 1995.
ITEM 6(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during the quarter ended June
30, 1995.
ITEM 2.
Management's discussion and analysis of financial conditions and results of
operations.
RESULTS OF OPERATIONS
Six months ended June 30, 1995 as compared with six months ended June 30, 1994
------------------------------------------------------------------------------
For the six months ended June 30, 1994, total revenues were $2,333,830 down
slightly from $2,344,873, in 1994. Operating revenues were $933,593 and
$953,906 in 1994. In dividend income was $1,105,375 with an interest expense
of ($877) as compared to dividend income of $1,063,459 with an interest expense
of ($11,940) in 1994. In 1995, the Company had a net income of $946,180 before
income taxes versus a net income of $1,143,872 before taxes in 1994.
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<PAGE>
Three months ended June 30,1995 as compared with three months ended June 30,1994
--------------------------------------------------------------------------------
For the three months ended June 30, 1995 total revenues declined to $1,087,328
from $1,232,941 in the 1994 quarter. In 1995, dividend income was $556,023 with
an interest expense of $50,417 compared to dividend income of $546,972 with an
interest expense of $43,523 in 1994. The Company had a net income of $326,481
before income taxes in 1995 versus a net income of $583,025 before taxes in the
1994 quarter.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
At June 30, 1995 the Company had total assets of $36,228,899 and total
liabilities of $5,442,736 with shareholders' equity of $30,786,163. The
Company has $ 5,410,105 of net after tax unrealized capital gains on available-
for-sale securities in its portfolio. This amount is included in the
calculation of Total Shareholders' Equity.
The Company has adequate resources for the development and marketing of its
instrument (the Blood Volume Analyzer BVA-100) and the liquid capital to
sustain its blood bank. If the Company were to expand its blood banking
operation on a full scale, nation-wide basis, it would require additional
capital.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DAXOR CORPORATION
(Registrant)
DATE: August 15, 1995 /S/ Joseph Feldschuh, M.D.
JOSEPH FELDSCHUH, M.D.
President
DATE: August 15, 1995 /S/ Hermogena Fajardo
HERMOGENA FAJARDO
Vice President
DATE: August 15, 1995 /S/ Octavia Atanasiu
OCTAVIA ATANASIU
Treasurer
DATE: August 15, 1995 /S/ Stephen D. Feldschuh
STEPHEN D. FELDSCHUH
Secretary
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 59,415
<SECURITIES> 35,064,075
<RECEIVABLES> 179,217
<ALLOWANCES> 0
<INVENTORY> 158,000
<CURRENT-ASSETS> 35,775,414
<PP&E> 1,015,184
<DEPRECIATION> 600,055
<TOTAL-ASSETS> 36,228,899
<CURRENT-LIABILITIES> 5,442,736
<BONDS> 0
<COMMON> 53,097
0
0
<OTHER-SE> 30,733,066
<TOTAL-LIABILITY-AND-EQUITY> 36,228,899
<SALES> 933,593
<TOTAL-REVENUES> 2,333,830
<CGS> 558,531
<TOTAL-COSTS> 1,388,527
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (877)
<INCOME-PRETAX> 946,180
<INCOME-TAX> 78,075
<INCOME-CONTINUING> 868,105
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 868,105
<EPS-PRIMARY> .17
<EPS-DILUTED> .17
</TABLE>
