<PAGE>
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 MARCH 31, 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
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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 MARCH 31, 2000
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COMMON STOCK
PAR VALUE: $.O1 per share 4,685,407
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PART I. FINANCIAL INFORMATION
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<TABLE>
<CAPTION>
ITEM 1. FINANCIAL STATEMENTS PAGE
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<S> <C> <C>
Balance Sheets as at March 31, 2000 and
December 31, 1999 F-1
Statement of Income and Consolidated Statement of Income
For the Three Months ended March 31, 2000 and 1999 F-2
Statement of Cash Flows and Consolidated Statement
of Cash Flows for the Three Months ended
March 31, 2000 and 1999 F-3
Notes to Financial Statements F-4
</TABLE>
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DAXOR CORPORATION
CONSOLIDATED BALANCE SHEETS [UNAUDITED]
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
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<S> <C> <C>
ASSETS
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CURRENT ASSETS
Cash $ 98,298 $ 67,783
Marketable Securities at Fair Value
March 31, 2000 and December 31,
1999. (Notes 1 and 2) 35,123,978 34,867,286
Accounts receivable 8,541 6,745
Other current assets 360,619 493,991
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Total Current Assets 35,591,436 35,435,805
EQUIPMENT AND IMPROVEMENTS
Storage tanks 125,815 125,815
Leasehold improvements, furniture
and equipment 826,424 825,794
Laboratory equipment 278,086 275,817
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1,230,325 1,227,426
Less: Accumulated depreciation and amortization 875,488 861,156
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Net equipment and improvements 354,837 366,270
Other Assets 43,990 43,990
Total Assets $ 35,990,263 $ 35,846,065
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 82,554 $ 127,341
Loans payable (Notes 1 and 2) 2,558,160 2,443,794
Other Liabilities 87,060 33,738
Deferred Taxes (Note 1) 3,972,968 3,961,623
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Total Liabilities 6,700,742 6,566,496
SHAREHOLDERS' EQUITY
Common stock, par value $.01 per share:
Authorized 10,000,000 shares: issued and
outstanding shares 4,685,407 March 31,
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) 7,712,231 7,690,209
Retained earnings 16,289,839 16,195,846
Treasury stock (4,563,878) (4,457,815)
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Total Shareholders' Equity 29,289,521 29,279,569
Total Liabilities and Shareholders' Equity $ 35,990,263 $ 35,846,065
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</TABLE>
See accompanying notes to financial statements
F-1
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DAXOR CORPORATION
STATEMENTS OF INCOME [UNAUDITED]
FOR THE THREE MONTHS ENDED MARCH 31,
<TABLE>
<CAPTION>
(Consolidated)
2000 1999
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Revenues:
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<S> <C> <C>
Operating revenues $ 211,559 $ 119,327
Other revenues $ 24,441
Dividend income 473,494 467,365
Gains on sale of securities 8,242 403,637
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Total Revenues 717,736 990,329
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Costs and expenses:
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Operations of Laboratories and Costs of Production 206,594 366,954
Selling, General, and Administrative 370,707 279,091
Interest expense, net of interest income
45,082 29,398
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Total Costs and Expenses 622,383 675,443
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Net Income Before Income Taxes 95,353 314,886
Provision for income taxes
1,360 1,700
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Net Income $ 93,993 $ 313,186
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Weighted Average Number of Shares Outstanding 4,685,576 4,748,242
========== =========
Net Income per Common Equivalent Share $ 0.02 $ 0.07
========== =========
</TABLE>
See accompanying notes to consolidated financial statements
F-2
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<PAGE>
DAXOR CORPORATION
STATEMENTS OF CASH FLOWS [UNAUDITED]
FOR THE THREE MONTHS ENDED MARCH 31,
<TABLE>
<CAPTION>
(Consolidated)
2000 1999
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<S> <C> <C>
Cash flows from operating activities:
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Net income or (loss) $ 93,993 $ 313,186
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation equipment and
improvements 14,332 18,076
(Gain) loss on sale of investments (8,242) (403,637)
Change in assets and liabilities:
(Increase) decrease in accounts receivable (1,796) (7,789)
(Increase) decrease in other current assets 133,372 10,520
Increase (decrease) in accounts payable, accrued
and other liabilities net of "short sales" (19,882) (44,408)
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Total adjustments 117,784 (427,230)
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Net cash (used in) operating activities 211,777 (114,052)
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Cah flows from investing activities:
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Payment for purchase of equipment and
improvements (2,899) (6,091)
Net cash provided or (used) in purchase
and sale of investments (243,664) 659,855
Net proceeds (repayments) of loans from
brokers used to purchase investments 114,366 (384,115)
Proceeds from "short sales" not closed 56,998 6,024
Net cash provided by / (used in)
investing activities (75,199) 275,673
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Cash flows from financing activities
Payment for purchase of treasury stock (106,063) (130,895)
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Net cash provided by / (used in) financing activities (106,063) (130,895)
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Net increase (decrease) in cash and
cash equivalents 30,515 30,726
Cash and cash equivalents at beginning of year 67,783 79,511
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Cash and cash equivalents at end of period $ 98,298 $ 110,237
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</TABLE>
See accompanying notes to financial statements
F-3
<PAGE>
DAXOR CORPORATION
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2000 AND 1999
In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of March
31,2000, and December 31, 1999, the results of operations for the three months
ended March 31,2000 and 1999 and cash flows for the three months ended March
31,2000 and 1999.
(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 March 31, 2000 and December 31, 1999 being
increased approximately 49.85 % 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>
March 31, 2000
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Type of Unrealized Unrealized
security Cost Fair Value Holding gains holding losses
- -------- ---- ---------- ------------- --------------
<S> <C> <C> <C> <C>
Equity $23,423,920 $35,123,078 $13,962,896 $2,263,738
- ------
Debt 14,859 900 13,959
- ----
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Total $23,438,779 $35,123,978 $13,962,896 $2,277,697
- ----- =========== =========== =========== ==========
<CAPTION>
December 31, 1999
-----------------
Type of Unrealized Unrealized
security Cost Fair Value Holding gains holding losses
- -------- ---- ---------- ------------- --------------
<S> <C> <C> <C> <C>
Equity $23,200,595 $34,866,386 $13,640,132 $1,974,341
- ------
Debt 14,859 900 0 13,959
- ----
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Total $23,215,454 $34,867,286 $13,640,132 $1,988,300
- ----- =========== =========== =========== ==========
</TABLE>
At March 31, 2000 the securities held by the Company had a market value
of $ 35,123,978 and a cost basis of $23,438,779 resulting in a net unrealized
gain of $ 11,685,199 or 49.85% 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 March 31, 2000 and December 31, 1999 marketable securities,
primarily consisting of preferred and common stocks of utility companies, are
valued at fair value.
F-4
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(2) LOANS PAYABLE
As at March 31, 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 $1,558,160 at March 31, 2000 and $1,443,794 at
December 31, 1999
F-4
<PAGE>
Part II OTHER INFORMATION
Item 1.
Legal Proceedings
There are no current legal proceedings. There are no legal proceedings pending.
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 2.
RESULTS OF OPERATIONS
Three months ended March 31, 2000 as compared with three months ended March 31,
1999.
For the three months ended March 31, 2000, total revenues were
$717,736, down from $990,329 in 1999. Capital gains in 1999 contributed $403,637
and are $8,242 in 2000. Operating revenues were $211,559 in 2000 up from
$119,327 in 1999. Operating revenues for the first time included income from the
sales of the BVA-100 Blood Volume Analyzer. Dividend income was $473,494 with a
net interest expense of $45,082, as compared to dividend income of $467,365 with
a net interest expense of $29,398 in 1999. In 2000, the Company had a net profit
of $95,353 before income taxes versus $314,886 before income taxes in 1999. The
1999 profit was primarily related to profit from capital gains. The Company
received in the first quarter of 2000 its first income from the Blood Volume
Analyzer. The company anticipates that it's 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.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2000 the Company had total assets of $35,990,263 and total
liabilities of $6,700,742 with shareholders' equity of $29,289,521. The Company
has a net pre-taxed unrealized gain of $11,685,199 and $ 7,712,231 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 $35,123,978 with short-term
loans of $2,558,160 with 4,685,407 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. 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. Because of higher reagent cost, such plans have the
potential for an ultimate higher return for the Company. The Company's
experience to date on equipment sales has been too limited to evaluate whether
sales or loaner reagent plans will predominate. The Company will arrange for all
leases through independent leasing companies, to whom it will sell the BVA-100.
The Company will use its financial reserves primarily for developing and
marketing the Blood Volume Analyzer.
The Company did not file any reports on form 8-K during the first three
months of 2000.
<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: May 12, 2000 /s/
JOSEPH FELDSCHUH, M.D.
President
DATE: May 12, 2000 /s/
DAN WELLINGTON
Vice President
DATE: May 12, 2000 /s/
OCTAVIA ATANASIU
Treasurer
DATE: May 12, 2000 /s/
VIRGINIA FITZPATRICK
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 98298
<SECURITIES> 35123978
<RECEIVABLES> 8541
<ALLOWANCES> 0
<INVENTORY> 100000
<CURRENT-ASSETS> 35591436
<PP&E> 1230325
<DEPRECIATION> 875488
<TOTAL-ASSETS> 35990263
<CURRENT-LIABILITIES> 6700742
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<COMMON> 53097
0
0
<OTHER-SE> 29236424
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