N-Q 1 daxor_nq.htm FORM N-Q
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington DC 20549

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANIES

 

INVESTMENT COMPANY ACT FILE NUMBER 811-22684

 

Daxor Corporation

 

(Exact name of registrant as specified in charter)

 

350 Fifth Avenue, Suite 7120

New York, New York 10118

(Address of principal offices)(Zip code)

 

David Frankel, Daxor Corporation

350 Fifth Avenue, Suite 7120

New York, New York 10118

(Name and address of agent for service)

 

Registrant’s Telephone Number, including Area Code: 212-330-8500

 

Date of Fiscal Year End: December 31, 2014

 

Date of Reporting Period: March 31, 2014

 
 

Item 1. Schedule of Investments

 

Daxor Corporation

Schedule of Investments

March 31, 2014 (Unaudited)

 

   Shares   Market Value 
COMMON STOCKS - 160.97%          
Banking -0.95%          
           
Diversified Banks – 0.56%          
Bank of America Corp.   8,195   $140,954 
           
Regional Banks - 0.39%          
First Niagara Financial Group, Inc.   5,000   $47,250 
Popular, Inc. (a)   1,700    52,683 
        $99,933 
           
Total Banking       $240,887 
           
Communication Services-0.29%          
Frontier Communications Corp.   12,500   $71,312 
Novatel Wireless Inc. (a)   2,000    3,520 
        $74,832 
           
Investment Services-1.35%          
United States Natural Gas Fund, LLP (a)   14,062   $343,394 
           
Oil & Gas Operations-0.53%          
Exco Resources, Inc.   13,900   $77,840 
Williams Companies, Inc.   1,200    48,696 
WPX Energy Inc. (a)   400    7,212 
        $133,748 
           
Other Common Stock-0.12%       $30,024 
 

Daxor Corporation

Schedule of Investments
March 31, 2014 (Unaudited)

 

   Shares   Market Value 
COMMON STOCKS - 160.97%          
Utilities-157.34%          
Electric Utilities-153.76%          
Ameren Corp.   4,000   $164,800 
American Electric Power Co. Inc.   22,600    1,144,916 
Avista Corp.   14,396    441,237 
Calpine Corp. (a)   1,328    27,768 
Centerpoint Energy, Inc.   5,000    118,450 
CMS   41,500    1,215,120 
DTE Energy Co.   47,000    3,491,630 
Duke Energy Corp.   18,117    1,290,293 
Edison International   7,000    396,270 
Entergy Corp.   93,145    6,226,743 
Exelon Corp.   105,400    3,537,224 
Firstenergy Corp.   98,286    3,344,673 
Great Plains Energy Inc.   21,000    567,840 
Hawaiian Electric Industries, Inc.   58,200    1,479,444 
National Grid PLC Shares   41,751    2,869,964 
National Grid PLC ADR   30,392    416,009 
NISOURCE Inc.   44,000    1,563,320 
Northeast Utilities   41,320    1,880,060 
NRG Energy, Inc.   1,100    34,980 
Pepco Holdings Inc.   2,201    45,076 
PG & E Corp.   7,000    302,400 
Pinnacle West Capital Corp.   31,002    1,694,569 
PNM Resources, Inc.   78,750    2,128,613 
Teco Energy, Inc.   2,000    34,300 
UIL Holdings Corp.   22,332    822,041 
UNITIL Corp.   52,900    1,737,236 
Westar Energy, Inc.   42,941    1,509,806 
XCEL Energy, Inc.   19,050    578,358 
        $39,063,140 
Natural Gas Utilities-3.58%          
Integrys Energy Group Inc.   4,500   $268,425 
Southwest Gas Corp.   1,000    53,450 
Spectra Energy Corp.   15,925    588,270 
        $910,145 
           
Total Utilities       $39,973,285 
           
Waste Management-0.39%          
Veolia Environnment SA ADR (a)   5,000   $99,400 
           
Total Common Stock (Cost $16,514,019)-160.97%       $40,895,570 
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2014 (Unaudited)

 

   Shares   Market Value 
Preferred Stocks-6.76%          
Diversified Banks-5.25%          
Bank of America Corp., 6.204% Series D   1,000   $24,630 
Bank of America Corp., 7.250% Series L   700    800,947 
Barclays Bank PLC ADR, 8.125% Series 5 Callable   2,500    65,025 
Citigroup, 6.35% Callable Due 03/15/67   1,200    30,192 
Deutsche Bank Contingent Capital Trust III Preferred, Div 7.60%   10,000    271,300 
Goldman Sachs Group, 6.20% Series B Callable   1,000    24,590 
Wells Fargo Company, 8.00 % Series J Non-Cumulative   4,000    116,560 
        $1,333,244 
           
Electric Utilities-1.41%          
Duquesne Light Co. Preferred, 3.75% Callable   400   $16,400 
Pacific Gas & Electric, 5% Series D   1,000    23,750 
Pacific Gas & Electric, 5% Series E   1,100    25,740 
Pacific Gas & Electric, 6% Series A   4,200    117,390 
Southern California Edison, 4.32% Callable   5,500    119,075 
Southern California Edison, 4.78% Callable   2,500    57,000 
        $359,355 
           
Insurance-0.10%          
MetLife Inc., Series B   1,000   $25,150 
           
Total Preferred Stock (Cost $1,106,326)-6.76%       $1,717,749 
           
Total Investment in Securities (Cost $17,620,345) -167.73%       $42,613,319 
           
Investment in Operating Division-13.18%       $3,348,704 
           
Other Assets-0.40%       $102,278 
           
Total Assets-181.31%       $46,064,301 
Total Liabilities – (81.31%)        (20,658,193)
Net Assets-100.00%       $25,406,108 
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2014 (Unaudited)

 

At March 31, 2014, the net unrealized appreciation based on cost for financial reporting purposes of $24,992,974 was as follows:

 

Aggregate gross unrealized appreciation for all investments
for which there was an excess of value over cost		  $25,213,212 
Aggregate gross unrealized depreciation for all investments
for which there was an excess of cost over value		   (220,238)
Net unrealized appreciation  $24,992,974 

Portfolio Analysis

As of March 31, 2014

 

   Percentage
of Net
Assets		 
Common Stock     
Diversified Banks   0.56%
Regional Banks   0.39%
Communication Services   0.29%
Investment Services   1.35%
Oil & Gas Operations   0.53%
Other Common Stock   0.12%
Electric Utilities   153.76%
Natural Gas Utilities   3.58%
Waste Management   0.39%
Total Common Stock   160.97%
      
Preferred Stock     
Diversified Banks   5.25%
Electric Utilities   1.41%
Insurance   0.10%
Total Preferred Stock   6.76%
      
Total Investment in Securities   167.73%
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2014 (Unaudited)

 

Name of Issuer  Number of Shares in Short
Position at 03/31/2014		   Value of Short Position at
03/31/2014		 
Securities Sold Short- (51.23%)          
Apple, Inc.   (2,000)          $(1,073,480)
Bank of America Corp.   (5,000)   (86,000)
Best Buy Co. Inc.   (15,900)   (419,919)
Blackberry Limited   (12,000)   (96,960)
Coach, Inc.   (15,000)   (744,900)
First Solar   (8,500)   (593,215)
Gap, Inc.   (5,000)   (200,300)
General Electric Co.   (2,500)   (64,725)
Hewlett Packard Company   (7,400)   (239,464)
Keurig Green Mountain, Inc.   (20,300)   (2,143,477)
Intuitive Surgical, Inc.   (1,700)   (744,583)
KB Home   (3,000)   (50,970)
Netflix, Inc.   (4,000)   (1,408,120)
Pool Corp.   (5,000)   (306,600)
Ralph Lauren Corporation   (2,000)   (321,860)
Simon Property Group Inc.   (24,400)   (4,001,600)
St. Joe Co.   (5,500)   (105,875)
Starbucks Corporation   (3,500)   (256,830)
Toll Brothers Inc.   (1,500)   (53,850)
UBS AG   (5,000)   (103,600)
Total Securities Sold Short (51.23%)       $(13,016,328)
           
Restricted Cash (b) (50.87%)        12,925,131 
           
Securities borrowed at fair market value, Net of Restricted Cash (0.36%)       $(91,197)
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2014 (Unaudited)

 

Name of Issuer  Number of
Contracts		   Exercise
Price		   Expiration
Date		  Value 
Open Options Written-(5.22%)                  
Call Options Written- (4.41%)                  
Advanced Micro Devices, Inc.   (50)   5.00   07/18/2014  $(770)
Apple, Inc.   (5)   595.00   04/18/2014   (55)
Apple, Inc.   (5)   610.00   05/16/2014   (623)
Apple, Inc.   (5)   615.00   05/16/2014   (537)
Best Buy Co. Inc.   (40)   24.00   04/18/2014   (10,025)
Best Buy Co. Inc.   (40)   25.00   04/18/2014   (6,720)
Best Buy Co. Inc.   (40)   26.00   04/18/2014   (3,903)
Best Buy Co. Inc.   (40)   27.00   04/18/2014   (1,919)
Best Buy Co. Inc.   (40)   28.00   04/18/2014   (834)
Entergy Corp.   (50)   67.50   04/18/2014   (2,500)
Entergy Corp.   (40)   62.50   06/20/2014   (17,599)
Entergy Corp.   (50)   65.00   06/20/2014   (12,667)
Entergy Corp.   (40)   67.50   06/20/2014   (5,092)
Entergy Corp.   (90)   70.00   06/20/2014   (3,272)
Entergy Corp.   (38)   67.50   09/19/2014   (5,700)
Entergy Corp.   (40)   70.00   09/19/2014   (3,400)
Entergy Corp.   (25)   65.00   01/16/2015   (8,500)
Entergy Corp.   (50)   70.00   01/16/2015   (6,500)
Exco Resources Inc.   (54)   6.00   06/20/2014   (1,393)
Exco Resources Inc.   (85)   7.00   06/20/2014   (886)
Exelon Corp.   (9)   27.00   04/18/2014   (5,850)
Exelon Corp.   (50)   28.00   04/18/2014   (28,250)
Exelon Corp.   (50)   29.00   04/18/2014   (23,000)
Exelon Corp.   (130)   30.00   04/18/2014   (46,851)
Exelon Corp.   (50)   31.00   04/18/2014   (13,184)
Exelon Corp.   (25)   32.00   04/18/2014   (4,258)
Exelon Corp.   (35)   33.00   04/18/2014   (3,074)
Exelon Corp.   (50)   28.00   07/18/2014   (28,250)
Exelon Corp.   (50)   29.00   07/18/2014   (23,750)
Exelon Corp.   (100)   30.00   07/18/2014   (38,000)
Exelon Corp.   (100)   31.00   07/18/2014   (30,500)
Exelon Corp.   (50)   32.00   07/18/2014   (10,500)
Exelon Corp.   (100)   33.00   07/18/2014   (14,807)
First Niagra Financial Group Inc.   (50)   12.50   07/18/2014   (1,000)
First Solar, Inc.   (40)   35.00   06/20/2014   (139,259)
First Solar, Inc.   (11)   40.00   06/20/2014   (32,841)
FirstEnergy Corp.   (72)   35.00   04/18/2014   (1,440)
FirstEnergy Corp.   (35)   38.00   04/18/2014   (9)
FirstEnergy Corp.   (50)   39.00   04/18/2014   (2)
FirstEnergy Corp.   (50)   41.00   04/18/2014   — 
FirstEnergy Corp.   (105)   42.00   04/18/2014   (125)
FirstEnergy Corp.   (45)   36.00   07/18/2014   (2,250)
FirstEnergy Corp.   (30)   38.00   07/18/2014   (600)
FirstEnergy Corp.   (50)   39.00   07/18/2014   (733)
FirstEnergy Corp.   (40)   40.00   07/18/2014   (340)
FirstEnergy Corp.   (30)   41.00   07/18/2014   (141)
FirstEnergy Corp.   (35)   42.00   07/18/2014   (86)
Intuitive Surgical, Inc.   (5)   450.00   04/18/2014   (5,265)
Intuitive Surgical, Inc.   (5)   460.00   04/18/2014   (3,710)

 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2014 (Unaudited)

 

Name of Issuer  Number of
Contracts		   Exercise
Price		   Expiration
Date		   Value 
Call Options Written-(4.41%)                    
National Grid PLC   (30)   65.00    06/20/2014   $(12,150)
Netflix, Inc.   (17)   370.00    04/18/2014    (11,158)
Netflix, Inc.   (10)   380.00    04/18/2014    (4,071)
Netflix, Inc.   (10)   400.00    04/18/2014    (1,434)
Netflix, Inc.   (10)   435.00    04/18/2014    (240)
Netflix, Inc.   (10)   330.00    05/16/2014    (40,614)
Netflix, Inc.   (10)   340.00    05/16/2014    (34,776)
Netflix, Inc.   (10)   350.00    05/16/2014    (29,507)
Netflix, Inc.   (10)   360.00    05/16/2014    (24,806)
Netflix, Inc.   (10)   390.00    05/16/2014    (14,000)
Netflix, Inc.   (10)   400.00    05/16/2014    (11,325)
Netflix, Inc.   (10)   410.00    05/16/2014    (9,115)
Netflix, Inc.   (10)   420.00    05/16/2014    (7,280)
Netflix, Inc.   (10)   430.00    05/16/2014    (5,775)
Netflix, Inc.   (10)   290.00    06/20/2014    (71,390)
Netflix, Inc.   (10)   300.00    06/20/2014    (63,928)
Netflix, Inc.   (10)   310.00    06/20/2014    (56,725)
Netflix, Inc.   (7)   325.00    06/20/2014    (33,046)
Netflix, Inc.   (10)   330.00    06/20/2014    (43,950)
Netflix, Inc.   (10)   340.00    06/20/2014    (38,592)
Netflix, Inc.   (10)   400.00    06/20/2014    (14,650)
Simon Property Group Inc.   (20)   155.00    04/18/2014    (18,765)
Simon Property Group Inc.   (20)   160.00    04/18/2014    (9,691)
Simon Property Group Inc.   (10)   170.00    04/18/2014    (276)
Simon Property Group Inc.   (20)   160.00    05/16/2014    (11,589)
United States Natural Gas Fund, LLP   (56)   27.00    04/18/2014    (336)
Veolia Environment SA   (50)   22.50    04/18/2014    (500)
Total Call Options Written                 $(1,120,659)
 

Daxor Corporation
Schedule of Investments (Continued)
March 31, 2014 (Unaudited)

                   
Name of Issuer  Number of
Contracts		   Exercise
Price		   Expiration
Date		  Value  
Put Options Written-(0.81%)                  
Abercrombie & Fitch Co.   (50)   37.00   04/18/2014  $(2,453)
Apple, Inc.   (5)   420.00   04/18/2014   — 
Apple, Inc.   (15)   495.00   04/18/2014   (600)
Apple, Inc.   (5)   475.00   05/16/2014   (1,149)
Apple, Inc.   (5)   495.00   05/16/2014   (2,465)
Bank of America Corp.   (25)   13.00   04/18/2014   — 
Bank of America Corp.   (50)   14.00   04/18/2014   (4)
Bank of America Corp.   (150)   15.00   04/18/2014   (175)
Bank of America Corp.   (100)   10.00   05/16/2014   — 
Bank of America Corp.   (150)   12.00   05/16/2014   (1)
Bank of America Corp.   (50)   13.00   05/16/2014   (9)
Bank of America Corp.   (50)   14.00   05/16/2014   (75)
Bank of America Corp.   (100)   15.00   05/16/2014   (600)
Bank of America Corp.   (50)   12.00   08/15/2014   (200)
Bank of America Corp.   (150)   13.00   08/15/2014   (1,064)
Bank of America Corp.   (150)   14.00   08/15/2014   (2,065)
Bank of America Corp.   (100)   15.00   08/15/2014   (2,573)
Bank of America Corp.   (50)   7.00   01/16/2015   (84)
Bank of America Corp.   (200)   10.00   01/16/2015   (1,597)
Bank of America Corp.   (100)   12.00   01/16/2015   (1,963)
Bank of New York Corporation   (50)   20.00   01/16/2015   (738)
Best Buy Co. Inc.   (40)   23.00   04/18/2014   (333)
Best Buy Co. Inc.   (50)   25.00   04/18/2014   (1,308)
Best Buy Co. Inc.   (65)   23.00   06/20/2014   (4,929)
Best Buy Co. Inc.   (15)   24.00   06/20/2014   (1,549)
BlackBerry Limited   (80)   9.00   04/18/2014   (8,468)
BlackBerry Limited   (40)   9.00   05/16/2014   (5,105)
BlackBerry Limited   (20)   6.00   06/20/2014   (334)
BlackBerry Limited   (30)   7.00   06/20/2014   (1,267)
BP PLC   (50)   30.00   01/16/2015   (811)
Citigroup, Inc.   (100)   25.00   01/16/2015   (774)
Coach, Inc.   (50)   45.00   04/18/2014   (195)
Coach, Inc.   (20)   46.00   04/18/2014   (200)
Coach, Inc.   (20)   35.00   05/16/2014   (9)
Coach, Inc.   (35)   40.00   05/16/2014   (364)
Coach, Inc.   (70)   45.00   05/16/2014   (3,550)
Consolidated Edison, Inc.   (30)   42.50   08/15/2014   (297)
Consolidated Edison, Inc.   (50)   40.00   01/16/2015   (1,506)
Entergy Corp.   (30)   62.50   05/16/2014   (1,115)
Entergy Corp.   (70)   55.00   06/20/2014   (1,062)
Entergy Corp.   (100)   60.00   06/20/2014   (3,266)
Entergy Corp.   (50)   62.50   06/20/2014   (3,155)
Entergy Corp.   (50)   55.00   09/19/2014   (1,625)
Entergy Corp.   (20)   50.00   01/16/2015   (742)
Exco Resources Inc.   (100)   5.00   06/20/2014   (2,493)
Exco Resources Inc.   (120)   7.00   06/20/2014   (19,317)
Exelon Corp.   (40)   24.00   04/18/2014   — 
Exelon Corp.   (40)   29.00   05/16/2014   (401)
Exelon Corp.   (50)   28.00   07/18/2014   (727)
Exelon Corp.   (25)   29.00   07/18/2014   (577)
Exelon Corp.   (18)   31.00   07/18/2014   (1,001)
Exelon Corp.   (15)   32.00   07/18/2014   (1,236)
First Solar, Inc.   (15)   40.00   04/18/2014   (68)
First Solar, Inc.   (30)   25.00   06/20/2014   (165)
 
 

Daxor Corporation
Schedule of Investments (Continued)
March 31, 2014 (Unaudited)

                   
Name of Issuer  Number of
Contracts		   Exercise
Price		   Expiration
Date		  Value  
Put Options Written-(0.81%)                  
First Solar, Inc.   (40)   40.00   06/20/2014  $(786)
Gap, Inc.   (50)   30.00   06/20/2014   (375)
General Electric Co.   (50)   18.00   06/20/2014   (88)
General Electric Co.   (40)   20.00   09/19/2014   (500)
General Motors Company   (40)   23.00   06/20/2014   (246)
Hewlett Packard Company   (50)   18.00   05/16/2014   — 
Hewlett Packard Company   (50)   19.00   05/16/2014   — 
Hewlett Packard Company   (30)   20.00   05/16/2014   — 
Hewlett Packard Company   (35)   22.00   05/16/2014   (8)
Hewlett Packard Company   (35)   26.00   05/16/2014   (210)
Hewlett Packard Company   (20)   20.00   08/15/2014   (146)
Hewlett Packard Company   (20)   24.00   08/15/2014   (508)
Hewlett Packard Company   (20)   25.00   08/15/2014   (688)
Intuitive Surgical, Inc.   (4)   360.00   05/16/2014   (1,415)
Intuitive Surgical, Inc.   (6)   380.00   05/16/2014   (3,822)
Intuitive Surgical, Inc.   (6)   390.00   05/16/2014   (4,871)
KB Home   (25)   12.00   04/18/2014   — 
KB Home   (30)   15.00   04/18/2014   (150)
Keurig Green Mountain, Inc.   (75)   80.00   04/18/2014   (1,200)
Keurig Green Mountain, Inc.   (30)   85.00   04/18/2014   (270)
Keurig Green Mountain, Inc.   (45)   90.00   04/18/2014   (1,215)
Keurig Green Mountain, Inc.   (40)   80.00   05/16/2014   (4,640)
Keurig Green Mountain, Inc.   (15)   35.00   06/20/2014   (6)
Keurig Green Mountain, Inc.   (50)   40.00   06/20/2014   (300)
Microsoft Corporation   (30)   30.00   07/18/2014   (193)
National Grid PLC   (50)   65.00   06/20/2014   (5,250)
National Grid PLC   (85)   60.00   09/19/2014   (5,386)
National Grid PLC   (25)   65.00   09/19/2014   (4,650)
Netflix, Inc.   (10)   350.00   04/18/2014   (12,918)
Netflix, Inc.   (10)   360.00   04/18/2014   (18,241)
Netflix, Inc.   (10)   280.00   05/16/2014   (5,623)
Netflix, Inc.   (10)   300.00   05/16/2014   (9,487)
Newmont Mining Corporation   (35)   24.00   04/18/2014   (3,476)
Newmont Mining Corporation   (30)   20.00   06/20/2014   (1,029)
Newmont Mining Corporation   (25)   23.00   06/20/2014   (3,091)
Newmont Mining Corporation   (25)   20.00   09/19/2014   (1,954)
Newmont Mining Corporation   (30)   22.00   09/19/2014   (4,338)
Newmont Mining Corporation   (30)   24.00   09/19/2014   (7,331)
Newmont Mining Corporation   (35)   20.00   01/16/2015   (4,480)
Pool Corp.   (25)   40.00   04/18/2014   (4,750)
Ralph Lauren Corporation   (15)   130.00   04/18/2014   — 
Simon Property Group Inc.   (20)   115.00   04/18/2014   (50)
Simon Property Group Inc.   (10)   120.00   04/18/2014   (50)
Simon Property Group Inc.   (10)   125.00   04/18/2014   (50)
Simon Property Group Inc.   (10)   130.00   04/18/2014   (80)
Simon Property Group Inc.   (50)   150.00   04/18/2014   (550)
Simon Property Group Inc.   (20)   140.00   05/16/2014   (328)
Simon Property Group Inc.   (20)   145.00   05/16/2014   (518)
Simon Property Group Inc.   (15)   150.00   05/16/2014   (785)
Simon Property Group Inc.   (10)   110.00   07/18/2014   (110)
St. Joe Co.   (55)   18.00   05/16/2014   (1,925)
Starbucks Corporation   (25)   50.00   04/18/2014   — 
Starbucks Corporation   (35)   50.00   07/18/2014   (262)
Toll Brothers Inc.   (30)   20.00   06/20/2014   (7)
 
 

Daxor Corporation
Schedule of Investments (Continued)
March 31, 2014 (Unaudited)

                   
Name of Issuer  Number of
Contracts		   Exercise
Price		   Expiration
Date		  Value  
Put Options Written-(0.81%)                  
UBS AG   (10)   16.00   06/20/2014  $(100)
Verizon Communications, Inc.   (50)   35.00   04/18/2014   — 
Verizon Communications, Inc.   (40)   35.00   07/18/2014   (217)
 Total Put Options Written               $(204,437)
                   
 Total Call and Put Options Written-(Premium Received)-(5.22%)               $(1,325,096)
                   
Margin loans payable-(73.57%) (c)               $(18,691,361)
                   
Deferred income taxes, net – (1.81%)               $(460,273)
                   
Other Liabilities-(0.71%)               $(181,463)
                   
Total Liabilities –(81.31)%               $(20,658,193)
 
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2014 (Unaudited)

 

 

The Company utilizes various methods to measure the fair value of most of its investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

 

Level 1 – Unadjusted quoted prices in active markets for identical assets and liabilities that the Company has the ability to access.

 

Level 2 – Observable inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

 

Level 3 – Unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Company’s own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

 

Investments in securities traded on national securities exchanges are valued at the last reported sales price on the last day of the reporting period. Securities traded on the over the counter market and listed securities for which no sale was reported on that date are valued at the mean between the last reported bid and ask prices.

 

The following tables summarize the inputs used as of March 31, 2014 for the Corporation’s assets and liabilities measured at fair value:

 

Assets *  Level 1   Level 2   Level 3   Total 
Common Stocks  $40,895,570   $—   $—   $40,895,570 
Preferred Stocks   1,717,749    —    —    1,717,749 
Investment in Operating Division   —    —    3,348,704    3,348,704 
Total  $42,613,319   $—   $3,348,704   $45,962,023 

 

Liabilities  Level 1   Level 2   Level 3   Total 
Margin Loans  $18,691,361   $—   $—   $18,691,361 
Call and Put Options  $1,325,096   $—   $—   $1,325,096 

 

The Company’s Level 3 assets consist of its investment in its Operating Division. Since it’s inception, the Operating Division has not generated significant revenue and has incurred substantial operating losses. Due to these substantial losses, the Operating Division has been completely dependent on funding from the Company to sustain its operations.

 

As such, the Company has determined that the value of the Operating Division approximates the net book value of certain property and equipment reduced by the remaining mortgage balance on such property and equipment. The property and equipment consist of land, buildings and laboratory equipment located in Oak Ridge, Tennessee.

 

* Refer to the Schedule of Investments for industry classifications for common and preferred stock.

 

(a) Non-income producing investment.

 

(b) Restricted cash held by Company’s brokers to satisfy margin requirements.

 

(c) Short-Term debt due to brokers secured by the Company’s investments in marketable securities.

 

Securities valuation policies and other investment related disclosures will be incorporated by reference to the semi-annual and annual reports to be filed with the Securities and Exchange Commission on Form N-CSR.

 
 

ITEM 2. CONTROLS AND PROCEDURES

 

(a) The Chief Executive Officer and the Chief Financial Officer have concluded that the registrant’s disclosure controls and procedures are effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Investment Company Act of 1940 and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 as of a date within 90 days of the filing of this report.

 

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS

 

Certifications required pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 and Section 302 of the Sarbanes-Oxley Act of 2002 are filed herewith as Exhibit A.

 
 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

(Registrant) Daxor Corporation

 

By (Signature and Title) /s/ Joseph Feldschuh  
  BY: Joseph Feldschuh
  ITS: President
  (Chief Executive Officer/Chairman of the Board of Directors/Principal Executive Officer)
   
Date: May 23, 2014  

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title) /s/ David Frankel  
  BY: David Frankel
  ITS: Chief Financial Officer
(Principal Financial Officer/Principal Accounting Officer/Chief Compliance Officer)
   
Date: May 23, 2014