-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S0/8eojg7rY2ui03dS14ybH2XP3Dx69EuNQzE8CSVPeWUJfhgu2ItRIVyCoY+pFr JQyPrNODquiDu3qz4lUraw== 0000889812-99-003363.txt : 19991117 0000889812-99-003363.hdr.sgml : 19991117 ACCESSION NUMBER: 0000889812-99-003363 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAXOR CORP CENTRAL INDEX KEY: 0000027367 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 132682108 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-09999 FILM NUMBER: 99753020 BUSINESS ADDRESS: STREET 1: 350 FIFTH AVENUE STREET 2: SUITE 7120 CITY: NEW YORK STATE: NY ZIP: 10118 BUSINESS PHONE: 2122440555 MAIL ADDRESS: STREET 1: 350 5TH AVENUE STREET 2: SUITE 7120 CITY: NEW YORK STATE: NY ZIP: 10118 FORMER COMPANY: FORMER CONFORMED NAME: IDANT CORP DATE OF NAME CHANGE: 19730823 10-Q 1 QUARTERLY REPORT 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 SEPTEMBER 30, 1999 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 SEPTEMBER 30, 1999 - -------------------------------------------------------------------------------- COMMON STOCK PAR VALUE: $.01 per share 4,713,109 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS PAGE - -------------------------------------------------------------------------------- Balance Sheets as at September 30, 1999 and December 31, 1998 F-1 Consolidated Statements of Income For the Three and Nine Months ended September 30,1999 and 1998 F-2 Consolidated Statement of Cash Flows for the Nine Months ended September 30, 1999 and 1998 F-3 Notes to Financial Statements F-4 DAXOR CORPORATION BALANCE SHEETS [UNAUDITED]
(Consolidated) September 30, December 31, 1999 1998 ---- ---- ASSETS - ---------------------------------------------------------------------------------------------- CURRENT ASSETS Cash $ 24,676 $ 79,511 Marketable Securities at Fair Value September 30,1999 and December 31, 1998. (Notes 1 and 2) 37,985,527 43,016,243 Accounts receivable 142,324 151,234 Accounts receivable-Related parties 75,979 75,979 Other current assets 329,202 261,597 Tax refunds receivable 5,881 5,881 ----------- ----------- Total Current Assets 38,563,589 43,590,445 EQUIPMENT AND IMPROVEMENTS Storage tanks 125,815 125,815 Leasehold improvements, furniture and equipment 796,871 823,859 Laboratory equipment 275,817 274,418 ----------- ----------- 1,198,503 1,224,092 Less: Accumulated depreciation and amortization 846,688 796,159 ----------- ----------- Net equipment and improvements 351,815 427,933 Other Assets 43,990 37,971 Total Assets $38,959,394 $44,056,349 =========== =========== - ---------------------------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY - ---------------------------------------------------------------------------------------------- CURRENT LIABILITIES Accounts payable and accrued liabilities $ 30,222 $ 88,594 Loans payable (Notes 1 and 2) 2,099,199 2,050,549 Other Liabilities 21,464 10,384 Deferred Taxes (Note 1) 5,000,710 6,602,988 ----------- ----------- Total Liabilities 7,151,595 8,752,515 SHAREHOLDERS' EQUITY Common stock, par value $.01 per share: Authorized 10,000,000 shares: issued and outstanding shares 4,713,109 September 30, 1999 and 4,752,709 December 31, 1998 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) 9,707,260 12,817,565 Retained earnings 16,447,528 16,292,976 Treasury stock (4,198,318) (3,658,036) ----------- ----------- Total Shareholders' Equity 31,807,799 35,303,834 Total Liabilities and Shareholders' Equity $38,959,394 $44,056,349 =========== ===========
See accompanying notes to financial statements F-1 DAXOR CORPORATION CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED NINE MONENDEDNDED SEPTEMBER 30, SEPTEMBER 30, 1999 1998 1999 1998 ---- ---- ---- ---- REVENUES: - ---------------------------------------------------------------------------------------------------------------------- Operating revenues $ 209,430 $ 74,161 $ 433,557 $ 259,303 Other revenues $ 39,208 $ 39,208 Dividend income 464,547 451,323 1,387,542 1,475,648 Gains (losses) on sale of securities (9,077) 3,505 388,117 353,369 ----------------------------------------------------------------- Total Revenues 704,108 528,989 2,248,424 2,088,320 - ---------------------------------------------------------------------------------------------------------------------- COSTS AND EXPENSES - ---------------------------------------------------------------------------------------------------------------------- Operations of Laboratories 254,481 203,347 973,618 616,823 Selling, General, and Administrative 358,443 299,340 1,017,905 1,191,051 Interest expense, net of interest income 41,519 26,709 99,837 447,464 ----------------------------------------------------------------- Total Costs and Expenses 654,443 529,396 2,091,360 2,255,338 ----------------------------------------------------------------- Net Income (Loss) Before Income Taxes 49,665 (407) 157,064 (167,018) Provision for income taxes - - 2,512 14,000 ----------------------------------------------------------------- Net Income (Loss) $ 49,665 $ (407) $ 154,552 $ (181,018) ================================================================= Weighted Average Number of Shares Outstanding 4,716,876 4,780,709 4,731,198 4,765,153 Net Income of (Loss) per Common Equivalent Share $ 0.01 $ - $ 0.03 $ (0.04) =================================================================
See accompanying notes to financial statements F-2 DAXOR CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS [UNAUDITED] FOR THE NINE MONTHS ENDED
September 30, September 30, 1999 1998 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: - ------------------------------------- Net income or (loss) $ 154,552 $ (181,018) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation equipment and improvements 54,228 46,500 (Gain) loss on sale of investments (388,117) (353,369) (Gain) loss on sale of machinery & equipment (1,918) Change in assets and liabilities: (Increase) decrease in accounts receivable 8,910 14,388 (Increase) decrease in accounts receivable - Related Parties - 28,371 (Increase) decrease in other current assets (67,605) (28,197) (Increase) decrease in tax refunds receivable - - (Increase) decrease in other assets (6,019) Increase (decrease) in accounts payable, accrued and other liabilities net of "short sales" (57,872) (150,627) --------- ---------- Total adjustments (458,393) (442,934) --------- ---------- Net cash provided by or (used in) operating activities (303,841) (623,952) --------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES: - ------------------------------------- Payment for purchase of equipment and improvements (26,192) (52,417) Proceeds from sale of equipment 50,000 Net cash provided or (used) in purchase and sale of investments 700,023 399,813 Net proceeds (repayments) of loans from brokers used to purchase investments 48,650 (835,158) Proceeds from "short sales" not closed 16,807 7,179 --------- ---------- Net cash provided by or (used in) investing activities 789,288 (480,583) Cash flows from financing activities Payment for purchase of treasury stock (540,282) (361,500) Receipt from reissuance of treasury stock 1,494,950 --------- ---------- Net cash provided by or (used in) financing activities (540,282) 1,133,450 --------- ---------- Net increase (decrease) in cash and cash equivalents (54,835) 28,915 Cash and cash equivalents at beginning of year 79,511 60,768 --------- ---------- Cash and cash equivalents at end of period $ 24,676 $ 89,683 ========= ==========
See accompanying notes to financial statements F-3 DAXOR CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 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 September 30,1999, and December 31, 1998, the results of operations for the three and nine months ended September 30,1999 and 1998 and cash flows for the nine months ended September 30,1999 and 1998. 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 September 30, 1999 and December 31, 1998 being increased approximately 63.19 % and 82.30% 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:
September 30, 1999 ------------------ Type of Unrealized Unrealized security Cost Fair Value Holding gains holding losses - -------- ---- ---------- ------------- -------------- Equity $23,262,698 $ 37,984,627 $16,100,536 $1,378,607 Debt 14,859 900 -0- 13,959 ---------------------------------------------------------------------------------------------------- Total $23,277,557 $37,985,527 $16,100,536 $1,392,566 =========== =========== =========== ========== December 31, 1998 ----------------- Type of Unrealized Unrealized security Cost Fair Value Holding gains holding losses - -------- ---- ---------- ------------- -------------- Equity $23,595,690 $43,016,243 $20,441,847 $1,021,294 Debt 0 0 0 0 ---------------------------------------------------------------------------------------------------- Total $23,595,690 $43,016,243 $20,441,847 $1,021,294 =========== =========== =========== ==========
F-4 At September 30, 1999 the securities held by the Company had a market value of $37,985,527 and a cost basis of $23,277,557 resulting in a net unrealized gain of $ 14,707,970 or 63.19% of cost. At December 31, 1998, the securities held by the Company had a market value of $43,016,243 and a cost basis of $ 23,595,690 resulting in a net unrealized gain of $19,420,553 or 82.30% of cost. . At September 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 September 30, 1999 and December 31, 1998, 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 7.5%. Short term margin debt due to brokers secured by the Companies marketable securities, totaled $1,099,199 at September 30, 1999 and $1,050,549 at December 31, 1998. F-5 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 Nine months ended September 30, 1999 as compared with nine months ended September 30, 1998. For the nine months ended September 30, 1999, total revenues were $2,248,424 up from $2,088,320 in 1998. Operating revenues were $433,557 up from $259,303 in 1998. Dividend income was $1,387,542 with a net interest expense of $99,837, as compared to dividend income of $1,475,648 with a net interest expense of $447,464 in 1998. In 1999, the Company had a net profit of $157,064 before income taxes versus a loss of $167,018 before income taxes in 1998. Operating revenues have begun to increase. The Company's semen bank and blood bank operations received new licenses in February 1999. These operations had functioned on a limited basis in 1998 and during the first six weeks of 1999. The Company has had its Blood Volume Analyzer undergoing beta-testing in hospitals and has begun marketing its Blood Volume Analyzer under the reagent loaner plan. Under the reagent loaner plan, a hospital pays a higher fee for the reagent kits but receives the Blood Volume Analyzer as a loan. Income to the Company under such a plan is slower than under a direct equipment purchase plan. The overall potential profit to the Company is greater under the reagent loaner plan than the direct sale plan. However, initial income is lower than under direct sales. The Company has received some income under this plan. The Company anticipates that sales related to the Blood Volume Analyzer will become a major source of income for the Company. LIQUIDITY AND CAPITAL RESOURCES At September 30, 1999 the Company had total assets of $38,959,394 and total liabilities of $7,151,595 with shareholders' equity of $ 31,807,799. The Company has a net pre-taxed unrealized gain of $14,707,970 and $9,707,260 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 $37,985,527 with short-term loans of $2,099,199 with 4,713,109 shares outstanding. The Company has adequate resources for the initial marketing of its Blood Volume Analyzer. There are an estimated 6400 hospitals in the United States and 2000 imaging centers that are potential candidates for using the Blood Volume Analyzer. If the reagent loaner plan became the dominant mode of marketing the Company's equipment, then the company might require additional capital. The Company has adequate capital to sustain its blood banking and semen banking operations. If the Company were to expand its blood banking operations on a full scale, nation-wide basis, it would require additional capital. The Company plans to focus its financial reserves primarily on developing and marketing the Blood Volume Analyzer. The Company did not file any reports on form 8-K during the first nine months of 1999. 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: November 12, 1999 /s/ -------------------------- JOSEPH FELDSCHUH, M.D. President DATE: November 12, 1999 /s/ -------------------------- DAN WELLINGTON Vice President DATE: November 12, 1999 /s/ -------------------------- OCTAVIA ATANASIU Treasurer DATE: November 12, 1999 /s/ -------------------------- VIRGINIA FITZPATRICK Secretary EX-27 2 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-30-1999 JAN-01-1999 SEP-30-1999 24,676 37,985,527 218,303 0 0 38,563,589 1,198,503 846,688 38,959,394 7,151,595 0 0 0 53,097 31,754,702 38,959,394 433,557 2,248,424 0 973,618 1,017,905 0 99,837 157,064 2,512 157,064 0 0 0 157,064 0.03 0.03
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