SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the
Securities Act of 1934
FOR QUARTER ENDED JUNE 30, 2000
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, 2000
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COMMON STOCK
PAR VALUE: $.O1 per share 4,676,909
<PAGE>
PART I. FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS PAGE
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Consolidated Balance Sheet as at June 30,2000 and
Balance Sheet as at December 31, 1999 F-1
Consolidated Statements of Income for the Three and
Six Months ended June 30,2000 and 1999 F-2
Consolidated Statement of Cash Flows for the Six
Months ended June 30, 2000 and 1999 F-3
Notes to Financial Statements F-4
<PAGE>
DAXOR CORPORATION
FINANCIAL STATEMENT
DAXOR CORPORATION
CONSOLIDATED BALANCE SHEETS [UNAUDITED]
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
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<S> <C> <C>
ASSETS
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CURRENT ASSETS
Cash $ 36,625 $ 67,783
Marketable Securities at Fair Value
June 30,2000 and December 31,
1999. (Notes 1 and 2) 37,209,011 34,867,286
Accounts receivable 46,228 6,745
Other current assets 312,785 493,991
------------ ------------
Total Current Assets 37,604,649 35,435,805
EQUIPMENT AND IMPROVEMENTS
Storage tanks 125,815 125,815
Leasehold improvements, furniture
and equipment 826,424 825,794
Laboratory equipment 278,087 275,817
------------ ------------
1,230,326 1,227,426
Less: Accumulated depreciation and amortization 889,820 861,156
------------ ------------
Net equipment and improvements 340,506 366,270
Other Assets 43,990 43,990
Total Assets $ 37,989,145 $ 35,846,065
============ ============
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 52,283 $ 127,341
Loans payable (Notes 1 and 2) 2,636,983 2,443,794
Other Liabilities 51,145 33,738
Deferred Taxes (Note 1) 4,710,889 3,961,623
------------ ------------
Total Liabilities 7,451,300 6,566,496
SHAREHOLDERS' EQUITY
Common stock, par value $.01 per share:
Authorized 10,000,000 shares: issued and
outstanding shares 4,676,909 June 30,
2000 and 4,692,909 December 31, 1999 53,097 53,097
Additional Paid in capital 9,798,232 9,798,232
Net unrealized holding gains
on available-for-sale securities (Note 1) 9,144,666 7,690,209
Retained earnings 16,228,078 16,195,846
Treasury stock (4,686,228) (4,457,815)
------------ ------------
Total Shareholders' Equity 30,537,845 29,279,569
Total Liabilities and Shareholders' Equity $ 37,989,145 $ 35,846,065
============ ============
</TABLE>
See accompanying notes to financial statements
F-1
<PAGE>
DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2000 1999 2000 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
REVENUES:
Operating revenues $ 150,438 $ 104,800 $ 361,997 $ 224,127
Other revenues $ 25,791 $ 50,232
Dividend income 466,051 560,430 939,545 922,995
Gains (losses) on sale
of securities (2,237) (6,443) 6,005 397,194
Total Revenues 640,043 658,787 1,357,779 1,544,316
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COSTS AND EXPENSES
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Operations of Laboratories 315,706 352,183 522,300 719,137
Selling, General, and
Administrative 331,006 380,371 701,713 659,462
Interest expense, net of
interest income 55,092 28,920 100,174 58,318
---------- ---------- ---------- ----------
Total Costs and Expenses 701,804 761,474 1,324,187 1,436,917
---------- ---------- ---------- ----------
Net Income (Loss) Before Income
Taxes $ (61,761) $ (103,499) $ 33,592 $ 107,399
Provision for income taxes -- 812 1,360 2,512
---------- ---------- ---------- ----------
Net Income (Loss) $ (61,761) $ (102,687) $ 32,232 $ 104,887
---------- ---------- ---------- ----------
Weighted Average Number of Shares
Outstanding 4,679,242 4,727,476 4,682,409 4,737,859
---------- ---------- ---------- ----------
Net Income of (Loss) per Common
Equivalent Share $ (0.01) $ (0.02) $ 0.01 $ 0.02
---------- ---------- ---------- ----------
</TABLE>
See accompanying notes to financial statements.
F-2
<PAGE>
DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED
<TABLE>
<CAPTION>
JUNE 30, JUNE 30,
2000 1999
----------- -----------
<S> <C> <C>
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net Income or (loss) $ 32,232 $ 104,887
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation equipment and improvements 28,664 36,152
(Gain) loss on sale of investments (6,005) (397,194)
Change in assets and liabilities:
(Increase) decrease in accounts receivable (39,483) 9,303
(Increase) decrease in other current assets 181,206 12,026
(Increase) decrease in other assets - (6,019)
Increase (decrease) in accounts payable,
accrued and other liabilities net of "short sales" (74,058) (26,613)
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Total adjustments 90,324 (372,345)
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Net Cash Provided by or (used in) operating activities 122,556 (267,458)
---------- ----------
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CASH FLOWS FROM INVESTING ACTIVITIES
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Payment for purchase of equipment and improvements (2,900) (16,394)
Net cash provided or (used) in purchase and sale of
investments (160,578) 694,203
Net proceeds (repayments) of loans from brokers used
to purchase investments 193,189 (81,075)
Proceeds from "short sales" not closed 44,988 12,349
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Net cash provided by or (used in) investing activities 74,699 609,083
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CASH FLOWS FROM FINANCING ACTIVITIES
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Payment for purchase of treasury stock (228,413) (387,044)
Net cash provided by or (used in) financing activities (228,113) (387,044)
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Net increase (decrease) in cash and cash equivalents (31,158) (45,419)
Cash and cash equivalents at beginning of year 67,783 79,511
---------- ----------
Cash and cash equivalents at end of period $ 36,625 $ 34,092
========== ==========
</TABLE>
See accompanying notes to financial statements.
F-3
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 2000 AND 1999
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 30,2000, and December 31, 1999, the results of operations for the three and
six months ended June 30,1999 and 1998 and cash flows for the six months ended
June 30,2000 and 1999. 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, 2000 and December 31, 1999 being
increased approximately 59.33% and 50.19% 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 following tables summarize the company's investments as of:
<TABLE>
<CAPTION>
June 30, 2000
-------------
Type of Unrealized Unrealized
Security Cost Fair Value Holding Gains Holding Losses
-------- ----------- ----------- ------------- --------------
<S> <C> <C> <C> <C>
EQUITY $23,338,597 $37,208,111 $16,000,753 $2,131,239
=========== =========== =========== ==========
DEBT 14,859 .900 0 13,959
------------------------------------------------------------------------------------------------
TOTAL $23,353,456 $37,209,011 $16,000,753 $2,145,198
=========== =========== =========== ==========
December 31, 1999
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Type of Unrealized Unrealized
Security Cost Fair Value Holding Gains Holding Losses
-------- ---- ---------- ------------- --------------
EQUITY $23,200,595 $34,866,386 $13,640,132 $1,974,341
DEBT 14,859 900 0 13,959
------------------------------------------------------------------------------------------------
TOTAL $23,215,454 $34,867,286 $13,640,132 $1,988,300
=========== =========== =========== ==========
</TABLE>
At June 30, 2000 the securities held by the Company had a market value
of $37,209,011 and a cost basis of $23,353,456 resulting in a net unrealized
gain of $13,855,555 or 59.33% of cost.
At December 31, 1999, the securities held by the Company had a market
value of $34,867,286 and a cost basis of $23,215,454 resulting in a net
unrealized gain of $11,651,832 or 50.19% of cost.
At June 30, 1999 and December 31, 1998 marketable securities, primarily
consisting of preferred and common stocks of utility companies, are valued at
fair value.
2) LOANS PAYABLE
As at June 30, 2000 and December 31, 1999, the Company had loans
outstanding aggregating $1,000,000 borrowed on a short term basis from a bank,
which are secured by certain marketable securities of the Company. The loans
bear interest at approximately 8.25%.
Short term margin debt due to brokers, secured by the Companies
marketable securities, totaled $969,474 at June 30, 2000 and $1,443,794 at
December 31, 1999.
F-4
<PAGE>
PART II OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS
None
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 2.
RESULTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2000 AS COMPARED WITH THREE MONTHS ENDED JUNE 30,
1999.
For the three months ended June 30, 2000 total revenues were $640,043,
down from $658,787 in 1999. Operating revenues were $150,438 in 2000 up from
$104,800 in 1999. Operating revenues for the second quarter included income from
the sales of the BVA-100 Blood Volume Analyzer. Dividend income was $466,051
with a net interest expense of $55,092 in 2000, as compared to dividend income
of $560,430 with a net interest expense of $28,920 in 1999. In 2000, the Company
had a net loss of $61,761 before income taxes versus $103,499 before income
taxes in 1999. The Company anticipates that its sales of equipment and kits
will become the major source of income for the Company. The Company is currently
initiating distribution networks but no income has yet been received from sales
by non-Company personnel.
SIX MONTHS ENDED JUNE 30, 2000 AS COMPARED WITH SIX MONTHS ENDED JUNE 30, 1999.
For the six months ended June 30,2000, total revenues were $1,357,779
down from $1,544,316 in 1999. Operating revenues were $361,997 up from $224,127
in 1999. Dividend income was $939,545 with a net interest expense of $100,174,
as compared to the dividend income of $922,995 with a net interest expense of
$58,318 in 1999. In 1999, the Company had $397,194 in capital gains vs $6,005 in
2000. The Company was able to increase its operating revenues while decreasing
its cost of operations. In 2000, the Company had a net income of $33,592 before
income taxes versus $107,399 before income taxes in 1999. The 1999 gain was
primarily related to the profit from capital gains. Operations increased because
of revenues from the BVA-100.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 2000 the Company had total assets of $37,989,145 and total
liabilities of $7,451,300 with shareholders' equity of $30,537,845. The Company
has a net pre-taxed unrealized gain of $13,855,555 and $9,144,666 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's stock portfolio had a market value of $37,209,011 with short-term
loans of $2,636,983 with 4,676,909 shares outstanding.
The Company has adequate resources for the current marketing level of
its Blood Volume Analyzer as well as capital to sustain its localized semen and
blood banking services. The Company is reviewing various options in regard to
establishing a nationwide sales force as opposed to utilizing independent local
dealer distribution networks for marketing the Blood Volume Analyzer. The
Company is evaluating the possibility of acquiring additional capital which
would enable it to undertake a more rapid marketing program nationally as well
as internationally. The Company has an instrument loaner reagent plan which
requires use of the Company's reserves. Under a sale or a lease plan, the
Company receives income immediately on its equipment. The equipment loaner
reagent plan permits a user to make a minimal initial capital commitment. This
results in a slower return on capital expenditure for the Company. The Company
will arrange for all leases through independent leasing companies, to whom it
will sell the BVA-100. The company is evaluating blood volume instrumentation
management programs for hospitals. Under such a plan, the Company would provide
equipment and personnel on a sub-contract basis. The Company will use its
current financial reserves primarily for developing and marketing the Blood
Volume Analyzer. The company is evaluating various options to expand blood
banking services in conjunction with the use of the Blood Volume Analyzer.
The Company did not file any reports on form 8-K.
F-5
<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 11,2000 /s/ Joseph Feldschuh
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JOSEPH FELDSCHUH, M.D.
President
DATE: August 11,2000 /s/ Dan Wellington
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DAN WELLINGTON
Vice President
DATE: August 11,2000 /s/ Octavia Atanasiu
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OCTAVIA ATANASIU
Treasurer
DATE: August 11,2000 /s/ Virginia Fitzpatrick
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VIRGINIA FITZPATRICK
Secretary
F-6
