SEC Filing from Daxor Corp files Form 10-Q/A (Quarterly Report (Amendment)) SEC Filing

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SEC Filing from article: Daxor Corp files Form 10-Q/A (Quarterly Report (Amendment)) SEC Filing

Unassociated Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

Quarterly Report Under Section 13 or 15(d)
of the
Securities Act of 1934

FOR QUARTER ENDED June 30, 2011
Commission File Number 001-09999

DAXOR CORPORATION
(Exact Name as Specified in its Charter)

New York		13-2682108
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

350 Fifth Ave Suite 7120 New York, New York 10118 (Address of Principal Executive Offices & Zip Code)

Registrant’s Telephone Number: (Including Area Code)		(212) 244-0555

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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the registrant was required to post and submit such files)

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

	Large Accelerated filer o		Accelerated Filer o

	Non-accelerated filer o (Do not check if a smaller reporting company)		Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

CLASS: COMMON STOCK
PAR VALUE: $.01 per share

4,223,793 OUTSTANDING AT August 2, 2011

EXPLANATORY NOTE

The purpose of this Amendment No. 1 on Form 10-Q/A to Daxor Corporation’s Quarterly Report on Form 10-Q for the period ended June 30, 2011, filed with the Securities and Exchange Commission on August 9, 2011 (“the form 10-Q”) is solely to furnish Exhibit 101 XBRL (eXtensible Business Reporting Language) interactive data files in accordance with Rule 405 (a)(2) of Regulation S-T.

Included as Exhibit 101 to this report is the following information formatted in XBRL: (i) the consolidated balance sheets at June 30, 2011 and December 31, 2010, (ii) the consolidated statements of operations for the three and six months ended June 30, 2011 and 2010, (iii) the consolidated statements of cash flows for the six months ended June 30, 2011 and 2010, and (iv) the notes to the interim consolidated financial statements (tagged as blocks of text).

No other changes have been made to the Form 10-Q, and this Form 10-Q/A does not reflect any subsequent events occurring after the original filing date of the Form 10-Q or modify or update any other disclosures made in the Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive date flies contained in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

Item 6. Exhibits

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (1)

31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (1)

32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1)

32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1)

101.INS	XBRL Instance Document (2)

101.SCH	XBRL Taxonomy Extension Schema Document (2)

101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document (2)

101.DEF	XBRL Taxonomy Extension Definition Linkbase Document (2)

101.LAB	XBRL Taxonomy Extension Label Linkbase Document

101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document (2)

(1)	Filed with Daxor Corporation’s Quarterly Report on Form 10-Q filed on August 9, 2011 for the period ended June 30, 2011.

(2)	Furnished herewith.

SIGNATURE

Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DATE: August 31, 2011	By:	/s/ JOSEPH FELDSCHUH, M.D.
		JOSEPH FELDSCHUH, M.D.,
		President Chief Executive Officer Chairman of the Board of Directors Principal Executive Officer

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Jun. 30, 2011	Dec. 31, 2010
Net of allowance for doubtful accounts (in Dollars)	$ 125,402	$ 125,402
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares Authorized	10,000,000	10,000,000
Common stock, shares Issued	5,316,540	5,316,540
Common stock, shares Outstanding	4,223,793	4,226,137
Treasury stock, shares	1,092,747	1,090,413

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
REVENUES:	??	??	??	??
Operating Revenues ??? equipment sales and related services	$ 285,097	$ 274,343	$ 580,927	$ 590,728
Operating Revenues ??? cryobanking and related services	73,042	93,989	154,681	173,876
Total Revenues	358,139	368,332	735,608	764,604
Cost of equipment sales and related services	155,056	156,329	309,287	342,290
Cost of cryobanking and related services	5,671	9,082	16,894	14,898
Total Cost of Sales	160,727	165,411	326,181	357,188
Gross Profit	197,412	202,921	409,427	407,416
OPERATING EXPENSES:	??	??	??	??
Research and development-equipment sales and related services	616,480	687,115	1,262,307	1,523,978
Research and development-cryobanking and related services	53,303	47,454	97,066	102,556
Total Research and Development Expenses	669,783	734,569	1,359,373	1,626,534
Selling, general, and administrative- equipment sales and related services	726,025	817,469	2,263,902	1,299,213
Selling, general, and administrative- cryobanking and related services	145,401	155,953	305,886	328,895
Total Selling, General & Administrative Expenses	871,426	973,422	2,569,788	1,628,108
Total Operating Expenses	1,541,209	1,707,991	3,929,161	3,254,642
Loss from Operations	(1,343,797)	(1,505,070)	(3,519,734)	(2,847,226)
Dividend income-investment portfolio	499,887	518,858	1,073,553	1,087,266
Realized gains on sale of securities and options, net	2,279,674	1,489,665	6,024,047	7,566,047
Mark to market adjustments on short sales of options	(1,687,134)	(318,123)	(6,155,563)	(5,090,887)
Other revenues	3,094	3,042	6,188	6,083
Interest expense	(81,260)	(8,919)	(111,908)	(15,183)
Administrative expense relating to portfolio investments	(37,315)	(31,043)	(69,709)	(66,017)
Total Other Income	976,946	1,653,480	766,608	3,487,309
(Loss) Income before Income Taxes	(366,851)	148,410	(2,753,126)	640,083
Income Tax (Benefit)	(182,331)	(39,946)	(1,242,344)	544,146
Net (Loss) Income	(184,520)	188,356	(1,510,782)	95,937
Net (Loss) Income	(184,520)	188,356	(1,510,782)	95,937
Unrealized Gain (Loss) on Securities Held for Sale, Net of Deferred Income Taxes	323,655	(3,268,794)	751,535	(4,121,736)
Comprehensive Income (Loss)	$ 139,135	$ (3,080,438)	$ (759,247)	$ (4,025,799)
Weighted average number of shares outstanding ??? basic and diluted (in Shares)	4,225,349	4,242,285	4,225,743	4,244,785
Net (Loss) Income per common equivalent share ??? basic and diluted (in Dollars per share)	$ (0.04)	$ 0.04	$ (0.36)	$ 0.02
Dividends paid per common share (in Dollars per share)	$ 0.15	$ 0.10	$ 0.15	$ 0.10

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Document And Entity Information (USD $)	6 Months Ended
Document And Entity Information (USD $)	Jun. 30, 2011	Aug. 02, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]	??	??	??
Entity Registrant Name	Daxor Corporation	??	??
Document Type	10-Q	??	??
Current Fiscal Year End Date	--12-31	??	??
Entity Common Stock, Shares Outstanding	??	4,223,793	??
Entity Public Float	??	??	$ 9,381,270
Amendment Flag	false	??	??
Entity Central Index Key	0000027367	??	??
Entity Current Reporting Status	Yes	??	??
Entity Voluntary Filers	No	??	??
Entity Filer Category	Smaller Reporting Company	??	??
Entity Well-known Seasoned Issuer	No	??	??
Document Period End Date	Jun. 30, 2011
Document Fiscal Year Focus	2011	??	??
Document Fiscal Period Focus	Q2	??	??

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(7) STOCK OPTIONS

6 Months Ended

Jun. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

(7) STOCK OPTIONS

On May 11, 2011, the Company issued five-year options to various employees to purchase up to 9,000 shares of the Company’s common stock at an exercise price of $11.91 per share. The options will be fully vested in May 2012 and expire in May 2016

Total share-based compensation expense recognized in the Statement of Operations aggregated $1,946 for the three and six months ended June 30, 2011 and $0 for the same periods in 2010.

To calculate the option-based compensation, the Company used the Black-Scholes option-pricing model. The Company’s determination of fair value of option-based awards on the date of grant using the Black-Scholes model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, the Company’s expected stock price volatility over the term of the awards, risk-free interest rate, and the expected life of the options. The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options. The expected volatility, holding period, and forfeitures of options are based on historical experience.

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(3) SEGMENT ANALYSIS

6 Months Ended

Jun. 30, 2011

Segment Reporting, General Information

(3) SEGMENT ANALYSIS

The Company has two operating segments: Equipment Sales and Related Services, and Cryobanking and Related Services.

The Equipment Sales and Related Services segment comprises the Blood Volume Analyzer equipment and related activity. This includes equipment sales, equipment rentals, equipment delivery fees, BVA-100 kit sales and service contract revenues.

The Cryobanking and Related Services segment is comprised of activity relating to the storage of blood and semen, and related laboratory services and handling fees.

Although not deemed an operating segment: the Company reports a third business segment; Investment activity. This segment reports the activity of the Company’s investment portfolio. This includes all earnings, gains and losses, and expenses relating to these investments.

The following table summarizes the results of each segment described above for the three months ended June 30, 2011 (unaudited).

	June 30, 2011
	Equipment Sales & Related Services			Cryobanking & Related Services			Investment Activity			Total

Revenues	$	285,097		$	73,042		$	—		$	358,139

Expenses
Cost of sales		155,056			5,671			—			160,727
Research and development expenses		616,480			53,303			—			669,783
Selling, general and administrative expenses		726,025			145,401			—			871,426

Total Expenses		1,497,561			204,375			—			1,701,936

Operating loss		(1,212,464	)		(131,333	)		—			(1,343,797	)

Investment income, net		—			—			1,055,112			1,055,112

Other income (expense)

Interest expense, net		(16,253	)		—			(65,007	)		(81,260	)

Other income		3,094			—			—			3,094

Total Other Expense		(13,159	)		—			(65,007	)		(78,166	)

Income (loss) before income taxes		(1,225,623	)		(131,333	)		990,105			(366,851	)

Income tax expense (benefit)		27,982			—			(210,313	)		(182,331	)

Net Income (loss)	$	(1,253,605	)	$	(131,333	)	$	1,200,418		$	(184,520	)

Total assets	$	4,808,857		$	155,424		$	91,272,727		$	96,237,008

The following table summarizes the results of each segment described above for the three months ended June 30, 2010 (unaudited).

	June 30, 2010
	Equipment Sales & Related Services			Cryobanking & Related Services			Investment Activity			Total

Revenues	$	274,343		$	93,989		$	—		$	368,332

Expenses
Cost of sales		156,329			9,082			—			165,411
Research and development expenses		687,115			47,454			—			734,569
Selling, general and administrative expenses		817,469			155,953			—			973,422

Total Expenses		1,660,913			212,489			—			1,873,402

Operating loss		(1,386,570	)		(118,500	)		—			(1,505,070	)

Investment income, net		—			—			1,659,357			1,659,357

Other income (expense)

Interest expense, net		(7,100	)		(18	)		(1,801	)		(8,919	)

Other income		3,042			—			—			3,042
Total Other Income (expense)		(4,058	)		(18	)		(1,801	)		(5,877	)

Income (loss) before income taxes		(1,390,628	)		(118,518	)		1,657,556			148,410
Income tax (benefit )		—			—			(39,646	)		(39,946	)

Net Income (loss)	$	(1,390,628	)	$	(118,518	)	$	1,697,502		$	188,356

Total assets	$	5,066,572		$	197,715		$	74,960,559		$	80,224,846

The following table summarizes the results of each segment described above for the six months ended June 30, 2011 (unaudited).

	June 30, 2011
	Equipment Sales & Related Services			Cryobanking & Related Services			Investment Activity			Total

Revenues	$	580,927		$	154,681		$	—		$	735,608

Expenses
Cost of sales		309,287			16,894			—			326,181
Research and development expenses		1,262,307			97,066			—			1,359,373
Selling, general and administrative expenses		2,263,902			305,886			—			2,569,788

Total Expenses		3,835,496			419,846			—			4,255,342

Operating loss		(3,254,569	)		(265,165	)		—			(3,519,734	)

Investment income, net		—			—			872,328			872,328

Other income (expense)

Interest expense, net		(22,592	)		—			(89,316	)		(111,908	)

Other income		6,188			—			—			6,188

Total Other Expense		(16,404	)		—			(89,316	)		(105,720	)

Income (loss) before income taxes		(3,270,973	)		(265,165	)		783,012			(2,753,126	)

Income tax expense (benefit)		122,982			—			(1,365,326	)		(1,242,344	)

Net Income (loss)	$	(3,393,955	)	$	(265,165	)	$	2,148,338		$	(1,510,782	)

Total assets	$	4,808,857		$	155,424		$	91,272,727		$	96,237,008

The following table summarizes the results of each segment described above for the six months ended June 30, 2010 (unaudited).

	June 30, 2010
	Equipment Sales & Related Services			Cryobanking & Related Services			Investment Activity			Total

Revenues	$	590,728		$	173,876		$	—		$	764,604

Expenses
Cost of sales		342,290			14,898			—			357,188
Research and development expenses		1,523,978			102,556			—			1,626,534
Selling, general and administrative expenses		1,299,213			328,895			—			1,628,108

Total Expenses		3,165,481			446,349			—			3,611,830

Operating loss		(2,574,753	)		(272,473	)		—			(2,847,226	)

Investment income, net		—			—			3,496,409			3,496,409

Other income (expense)

Interest expense, net		(14,246	)		296			(1,233	)		(15,183	)

Other income		6,083			—			—			6,083
Total Other Income (Expense)		(8,163	)		296			(1,233	)		(9,100	)

Income (loss) before income taxes		(2,582,916	)		(272,177	)		3,495,176			640,083

Income tax expense		36,000			—			508,146			544,146

Net Income (loss)	$	(2,618,916	)	$	(272,177	)	$	2,987,030		$	95,937

Total assets	$	5,066,572		$	197,715		$	74,960,559		$	80,224,846

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(9) CERTAIN CONCENTRATIONS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2011

Concentration And Contingency Disclosure [Text Block]

(9) CERTAIN CONCENTRATIONS AND CONTINGENCIES

Financial instruments which potentially subject the Company to concentrations of credit risk consist primarily of the common stock of marketable electric utilities. At June 30, 2011 stocks representing 99.27% of the market value of common stocks held by the Company were listed on the New York Stock Exchange (NYSE). The Company maintains its investments in four different brokerage accounts, three at UBS and one at TD Ameritrade. UBS and TD Ameritrade provide supplemental insurance up to the face value of the securities in excess of the SIPC limit of $500,000.

Both of these brokerage houses are well known in the industry and management does not believe that these securities bear any risk of loss over and above the basic risk that a security bears through the normal activity of the securities markets. However, at June 30, 2011 the fair market value of securities in excess of the SIPC insured limit is $1,977,670 and the cash on deposit in excess of the insured limit is $4,894,872.

For the three months ended June 30, 2011, the sales of Blood Volume Kits accounted for 69.89% of the Company’s total consolidated operating revenue. There were four customers (hospitals) that accounted for 60.12% of the Company’s sales of Blood Volume Kits.

For the three months ended June 30, 2010, the sales of Blood Volume Kits accounted for 63.25% of the Company’s total consolidated operating revenue. There were four customers (hospitals) that accounted for 60.35% of the Company’s sales of Blood Volume Kits.

For the six months ended June 30, 2011, the sales of Blood Volume Kits accounted for 68.60% of the Company’s total consolidated operating revenue. There were four customers (hospitals) that accounted for 60.16% of the Company’s sales of Blood Volume Kits.

For the six months ended June 30, 2010, the sales of Blood Volume Kits accounted for 65.16% of the Company’s total consolidated operating revenue. There were four customers (hospitals) that accounted for 58.77% of the Company’s sales of Blood Volume Kits.

Management believes that the loss of any one of these customers would have an adverse effect on the Company’s consolidated business for a short period of time. All of these four hospitals have purchased their BVA-100 equipment. The Company has not had any situations in which a hospital, after having purchased a blood volume analyzer, discontinued purchasing Volumex kits. This suggests that, when more hospitals purchase equipment, they will continue with ongoing purchase of Volumex kits. The Company continues to seek new customers, so that any one hospital will represent a smaller percentage of overall sales.

As disclosed in our previous filings, the Centers for Medicare and Medicaid Services (CMS) implemented a significant policy change affecting the reimbursement for all diagnostic radiopharmaceutical products and contrast agents which was effective as of January 1, 2008. As a result of this policy change, diagnostic radiopharmaceuticals such as Daxor’s Volumex are no longer separately reimbursable by Medicare for outpatient services. At this time, it is still unclear if this policy change will also be implemented by private third party health insurance companies.

The reimbursement policy for hospital outpatients through December 31, 2007 included payment for both the cost of the procedure to perform a blood volume analysis (BVA) and the radiopharmaceutical (Daxor’s Volumex radiopharmaceutical). CMS’s policy now only includes the reimbursement for the procedure and would require the hospital to absorb the cost of the radiopharmaceutical. There will be an upward adjustment for the procedure code to include some of the costs of the radiopharmaceutical. However, this upward adjustment does not entirely cover the costs associated with the procedure and the radiopharmaceutical.

In response to Medicare’s change in its reimbursement policy for diagnostic radiopharmaceuticals, Daxor has lobbied CMS both individually and as a member of the Society of Nuclear Medicine’s APC Task Force, which is a select group of representatives from industry and healthcare that represents the more than 16,000 nuclear medicine professionals in the United States. One of the missions of the APC Task Force is to work directly with the CMS in an attempt to amend the current policy limiting the reimbursement of diagnostic radiopharmaceuticals for outpatient diagnostic services. There is no guarantee that the APC task force will be successful in their efforts to persuade the CMS to amend their policy of limiting the reimbursement of diagnostic radiopharmaceuticals for outpatient diagnostic services. This change in Medicare’s reimbursement policy was still in effect at June 30, 2011.

On March 21, 2010, the U.S. House of Representatives passed The “Patient Protection and Affordable Care Act (H.R.3590).” This legislation was signed into law by President Obama on March 23, 2010. The goal of this legislation is to make health care more accessible to Americans. At this time, we are unable to quantify how this legislation will affect our operating income. Although it is possible that increased coverage could lead to greater access to our products and services if the reimbursement rate is lower, this would limit the benefit to Daxor and could have a negative effect on our operating results and our business.

The Company’s Volumex syringes are filled by an FDA approved radiopharmaceutical manufacturer. This manufacturer is the only one approved by the FDA in the United States to manufacture Volumex for interstate commerce. If this manufacturer were to cease filling the Volumex syringes for Daxor, the Company would have to make alternative arrangements to insure a supply of Volumex. The effect of such a disruption on Daxor’s business could be material.

From time to time, the Company is the subject of legal proceedings arising in the ordinary course of business. The Company does not believe that any proceedings currently pending or threatened will have a material adverse effect on its business or results of operations.

In 2005 and 2007, the Company and Dr. Joseph Feldschuh, its President and Chief Executive Officer, respectively, received Wells Notices from the Securities and Exchange Commission (“SEC”) requesting their comments on the SEC Staff’s view that the Company was in violation of Section 7(a) of the Investment Company Act in that it was operating as an unregistered investment company. The Company and Dr. Feldschuh responded to those requests when made.

In November 2009, the staff of the Northeast Regional Office of the SEC contacted the Company and invited both the Company and Dr. Feldschuh to make a new Wells submission based upon more recent operations and results. The Company and Dr. Feldschuh responded to the staff’s invitation on December 20, 2009.

The Company disclosed in its Form 10-Q for September 30, 2010, Form 10-K for December 31, 2010 and Form 10-Q for March 31, 2011 that the SEC instituted administrative proceedings pursuant to the Investment Company Act of 1940 on September 17, 2010. The New York City staff of the Enforcement Division of the SEC is claiming that Daxor is primarily an investment company and not primarily an operating company.

The Company has disclosed in previous public filings that it is dependent upon earnings from its investment portfolio to fund operations and that a single individual, Dr. Joseph Feldschuh, makes all investment decisions.

The administrative proceeding took place from March 7, 2011 through March 9, 2011 in New York City. The Company feels strongly that the extensive documentation of its history of operations presented at the administrative proceeding will demonstrate that it is primarily an operating medical instrumentation and biotechnology company and not primarily an investment company

On June 9, 2011, The Chief Judge filed a motion requesting an extension of time until September 6, 2011 to issue an initial decision in the administrative proceeding. Daxor filed a consent to the Chief Judge’s motion for an extension and the deadline was extended until September 6, 2011.

There is a risk that Daxor will be found to be an investment company as a result of this administrative proceeding. If Daxor is found to be an Investment Company, we may attempt to register with the Internal Revenue Service (“IRS”) as a Regulated Investment Company (“RIC”). There is no guarantee that the Company would meet the requirements imposed by the Internal Revenue Code for qualification as an RIC.

However, one requirement of being an RIC is that Daxor would have to distribute at least 90% of its investment company taxable income and 90% of its net tax-exempt income to its shareholders annually. If Daxor would not meet this requirement, it would be taxed as Regular Corporation and still be liable for Income Tax and Personal Holding Company Tax.

The management of the Company believes the additional disclosures that would be necessary if Daxor were to become an RIC would not materially affect investment policies and practices currently in place. The management also believes that the operating segments of the Company would also not be materially affected if Daxor was compelled to become an RIC.

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(10) RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2011

(10) RELATED PARTY TRANSACTIONS

The Company subleases a portion of its New York City office space to the President of the Company for five hours per week. This sublease agreement has no formal terms and is executed on a month to month basis.

The amount of rental income received from the President of the Company for the six months ended June 30, 2011 and June 30, 2010 was $6,188 and $6,083.

The amount of rental income received from the President of the Company for the three months ended June 30, 2011 and June 30, 2010 was $3,094 and $3,042.

Jonathan Feldschuh is the co-inventor of the BVA-100 Blood Volume Analyzer and is the son of Dr. Joseph Feldschuh, the Chief Executive Officer and President of Daxor. He was paid $18,720 annually for the years ended December 31, 2010 and 2009. Jonathan Feldschuh is expected to provide a limited amount of consultative help in the filing of the additional patents in 2011.

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(8) INCOME TAXES

6 Months Ended

Jun. 30, 2011

Income Tax Disclosure [Text Block]

(8) INCOME TAXES

The Company accrues income taxes in interim periods based upon its estimated annual effective tax rate.

The current income tax (benefit) expense for the three months ended June 30, 2011 and 2010 (unaudited) is comprised of the following:

	June 30,			June 30,
	2011			2010
Regular tax and Alternative Minimum Tax (AMT)	$	278,938		$	151,822
Personal Holding Company Tax (PHC)		81,061			22,528
State Franchise Taxes		27,982			—
Total Current Income Tax Provision		387,981			174,350
Deferred Income Taxes		(570,312	)		(214,296	)
Total Income Tax (Benefit)	$	(182,331	)	$	(39,946	)

The current income tax (benefit) expense for the six months ended June 30, 2011 and 2010 (unaudited) is comprised of the following:

	June 30,			June 30,
	2011			2010
Regular tax and Alternative Minimum Tax (AMT)	$	864,504		$	1,936,290
Personal Holding Company Tax (PHC)		135,496			789,553
State Franchise Taxes		122,982			36,000
Total Current Income Tax Provision		1,122,982			2,761,843
Deferred Income Taxes		(2,365,326	)		(2,217,697	)
Total Income Tax (Benefit) Expense	$	(1,242,344	)	$	544,146

The deferred income tax liability is computed at the federal statutory rate of 35% and comprised of the following:

	(unaudited) June 30, 2011			December 31, 2010

Deferred Tax Liabilities:

Fair value adjustment for available-for-sale securities	$	8,421,952		$	8,017,839
Mark to market short positions		(1,475,062	)		856,641
Property and equipment		94,803			168,941
Other		—			(39,475	)

	$	7,041,693		$	9,003,946

The deferred tax liability that results from the marketable securities does not flow through the statement of operations due to the classification of the marketable securities as available-for-sale. Instead, any increase or decrease in the deferred tax liability is recorded as an adjustment to the accumulated other comprehensive income account which is in the stockholders’ equity section of the balance sheet.

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(1) BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2011

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

(1) BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

BUSINESS

Daxor Corporation (the “Company”) is a medical device manufacturing company that offers additional biotech services, such as cryobanking, through its wholly owned subsidiary, Scientific Medical Systems Corp. The Company provides long-term frozen blood and semen storage services to enable individuals to store their own blood and semen. The main focus of Daxor Corporation has been the development of an instrument that rapidly and accurately measures human blood volume. This instrument is used in conjunction with a single use diagnostic injection and collection kit.

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods presented. The condensed consolidated financial statements are unaudited and are subject to such year-end adjustments as may be considered appropriate and should be read in conjunction with the historical consolidated financial statements of Daxor Corporation for the years ended December 31, 2010 and 2009, included in Daxor Corporation’s Annual Report and Form 10-K for the fiscal year ended December 31, 2010 which was filed on March 29, 2011. The December 31, 2010 condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for the three and six month periods ended June 30, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

These condensed consolidated financial statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“US GAAP”) and under the same accounting principles as the consolidated financial statements included in the Annual Report on Form 10-K. Certain information and footnote disclosures related thereto normally included in the financial statements prepared in accordance with US GAAP have been omitted in accordance with Rule 8-03 of Regulation S-X.

Management has evaluated subsequent events through the date of this filing.

Fair Value of Financial Instruments

The carrying amounts of financial instruments, including cash and cash equivalents, accounts receivable and payable, accrued liabilities, deferred option premiums and loans payable approximate fair value because of their short maturities. The carrying amount of the mortgage payable is estimated to approximate fair value as the mortgage carries a market rate of interest.

Fair Value Measurements

The Company accounts for its investments under the provision of FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. Fair value is defined under ASC 820 as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are discussed below.

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets include corporate-owned key person life insurance policies.

Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category includes auction rate securities where independent pricing information was not able to be obtained.

The Company’s marketable securities are valued using Level 1 observable inputs utilizing quoted market prices in active markets. These marketable securities are summarized in Note 2, Available-for -Sale Securities.

On January 1, 2010, the Company adopted the provisions of FASB ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”). This update provides amendments to Subtopic 820-10 that requires new disclosure as follows: 1) Transfers in and out of Levels 1 and 2. A reporting entity should disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers. 2) Activity in Level 3 fair value measurements. In the reconciliation for fair value measurements using significant unobservable inputs (Level 3), a reporting entity should present separately information about purchases, sales, issuances, and settlements (that is, on a gross basis rather than as one net number). This update provides amendments to Subtopic 820-10 that clarify existing disclosures as follows: 1) Level of disaggregation. A reporting entity should provide fair value measurement disclosures for each class of assets and liabilities. A class is often a subset of assets or liabilities within a line item in the statement of financial position. A reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities. 2) Disclosures about inputs and valuation techniques. A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. Those disclosures are required for fair value measurements that fall in either Level 2 or Level 3.The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. The adoption of the ASU 2010-06 did not have an impact on the Company’s financial statements.

Available-for-Sale Securities

Available-for-sale securities represent investments in debt and equity securities (primarily common and preferred stock of electric utility companies) that management has determined meet the definition of available-for-sale under FASB ASC 320 - Accounting for Certain Investments in Debt and Equity Securities (“ASC 320”). Accordingly, these investments are stated at fair market value and all unrealized holding gains or losses are recorded in the Stockholders’ Equity section as Accumulated Other Comprehensive Income (Loss). Conversely, all realized gains, losses and earnings are recorded in the Statement of Operations under Other Income (Expense).

At certain times, the Company will engage in short selling of stock. When this occurs, the short position is marked to the market and recorded as a realized sale. Any gain or (loss) is recorded for the period presented.

Historical cost is used by the Company to determine all gains and losses, and fair market value is obtained by readily available market quotes on all securities (Level 1 inputs).

Put and Call Options at fair value

As part of the company’s investment strategy, put and call options are sold on various stocks the company is willing to buy or sell. The premiums received are deferred until such time as they are exercised or expire. In accordance with FASB ASC 815 - Accounting for Derivative Instruments and Hedging Activities, these options are marked to market for each reporting period using readily available market quotes (Level 1 inputs), and this fair value adjustment is recorded as a gain or loss in the Statement of Operations.

Upon exercise, the value of the premium will adjust the basis of the underlying security bought or sold. Options that expire are recorded as income in the period they expire.

All proceeds of the put and call options which are equity contracts are shown net of the mark to market adjustment in the current liability section of the balance sheet as put and call options, at fair value.

Receivable from Broker

The Receivable from Brokers includes cash proceeds from the sales of securities and dividends. These proceeds are invested in dividend bearing money market accounts. The restricted cash is held by the brokers to satisfy margin requirements.

The following table summarizes Receivable from Broker at June 30, 2011 and December 31, 2010:

Description	(Unaudited) June 30, 2011		December 31, 2010
Money Market Accounts	$	6,062,185	$	10,115,798
Restricted Cash		31,151,167		22,266,641
Total Receivable from Broker	$	37,213,352	$	32,382,439

Securities borrowed at fair value

When a call option that has been sold short is exercised, this creates a short position in the related common stock. The recorded cost of these short positions is the amount received on the sale of the stock plus the proceeds received from the underlying call option. These positions are shown on the Balance Sheet as “Securities borrowed at fair value” and the carrying value is reduced or increased at the end of each quarter by the mark to market adjustment which is recorded in accordance with ASC 320.

Investment Goals, Strategies and Policies

The Company’s investment goals, strategies and policies are as follows:

1.	The Company’s investment goals are capital preservation, maintaining returns on capital with a high degree of safety and generating income from dividends and option sales to help offset operating losses.

2.	In order to achieve these goals, the Company maintains a diversified securities portfolio comprised primarily of electric utility common and preferred stocks. The Company also sells covered calls on portions of its portfolio and also sells puts on stocks it is willing to own. It also sells uncovered calls and may have net short positions in common stock up to 15% of the value of the portfolio. The Company’s net short position may temporarily rise to 20% of the Company’s portfolio without any specific action because of changes in valuation, but should not exceed this amount. The Company’s investment policy is to maintain a minimum of 80% of its portfolio in electric utilities. The Board of Directors has authorized this minimum to be temporarily lowered to 70% when Company management deems it to be necessary. Investments in utilities are primarily in electric companies. Investments in non-utility stocks will generally not exceed 20% of the value of the portfolio.

3.	Investment in speculative issues, including short sales, maximum of 15%.

4.	Limited use of options to increase yearly investment income.

	a.	The use of “Call” Options Covered options can be sold up to a maximum of 20% of the value of the portfolio. This provides extra income in addition to dividends received from the Company’s investments. The risk of this strategy is that investments may be called away, which the Company may have preferred to retain. Therefore, a limitation of 20% is placed on the amount of stock on which options can be written. The amount of the portfolio on which options are actually written usually does not exceed 10% of the value of the portfolio. The historical turnover of the portfolio is such that the average holding period is in excess of five years for available for sale securities.

	b.	The use of “Put” options Put options are written on stocks which the Company is willing to purchase. While the Company does not have a high rate of turnover in its portfolio, there is some turnover; for example, due to preferred stocks being called back by the issuing Company, or stocks being called away because call options have been written. If the stock does not go below the put exercise price, the Company records the proceeds from the sale as income. If the put is exercised, the cost basis is reduced by the proceeds received from the sale of the put option. There may be occasions where the cost basis of the stock is lower than the market price at the time the option is exercised.

	c.	Speculative Short Sales/Short Options The Company normally limits its speculative transactions to no more than 15% of the value of the portfolio. The Company may sell uncovered calls on certain stocks. If the stock price does not rise to the price of the call, the option is not exercised and the Company records the proceeds from the sale of the call as income. If the call is exercised, the Company will have a short position in the related stock. The Company then has the choice of covering the short position, or selling a put against it. If the put is exercised, then the short position is covered. The Company’s current accounting policy is to mark to the market at the end of each quarter any short positions, and include it in the income statement. While the Company may have short positions equal to 15% of its accounts, in actual practice the net short stock positions usually account for less than 10% of the assets of the Company.

5.	In the event of a merger, the Company will elect to receive shares in the new company if this is an option. If the proposed merger is a cash only offer, the Company will receive cash and be forced to sell the stock.

It is possible that the market value of a stock may go below our cost after we purchase it even though we considered the stock to be undervalued relative to the market at the time we purchased it. When that occurs, we follow the provisions of SEC Staff Accounting Bulletin: Codification of Staff Accounting Bulletins, Topic 5-M (“SAB 5-M”): Miscellaneous Accounting, Other Than Temporary Investments in Debt and Equity Securities in determining whether an investment is other than temporarily impaired.

Inventory

Inventory is stated at the lower of cost or market, using the first-in, first-out method (FIFO), and consists primarily of finished goods.

Earnings per Share

The Company computes earnings per share in accordance with ASC 260 - Earnings per Share . Basic earnings per common share is computed by dividing income or loss available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share are based on the average number of common shares outstanding during each period, adjusted for the effects of outstanding stock options.

The following table summarizes the loss per share calculations for the three months ended June 30, 2011 and June 30, 2010:

	Three months ended June 30, 2011			Three months ended June 30, 2010
Basic and diluted shares		4,225,349			4,242,285
Net Income (loss)	$	(184,520	)	$	188,356
Basic and diluted income (loss) per share	$	(0.04	)	$	0.04

Certain stock options were not included in the computation of the earnings per share due to their anti-dilutive effect. The number of anti-dilutive options totaled 47,300 and 61,800 for the three months ended June 30, 2011 and 2010, respectively.

The following table summarizes the loss per share calculations for the six months ended June 30, 2011 and June 30, 2010:

	Six months ended June 30, 2011			Six months ended June 30, 2010
Basic and diluted shares		4,225,743			4,244,785
Net Income (loss)	$	(1,510,782	)	$	95,937
Basic and diluted income (loss) per share	$	(0.36	)	$	0.02

Certain stock options were not included in the computation of the earnings per share due to their anti-dilutive effect. The number of anti-dilutive options totaled 55,300 and 55,800 for the six months ended June 30, 2011 and 2010, respectively.

Dividends

In 2008, Management instituted a policy of paying dividends when funds are available.

The Company paid a dividend of $0.15 per share on June 16, 2011. The Company paid a dividend of $0.10 per share during the six months ended June 30, 2010.

Stock Based Compensation

The Company records compensation expense associated with stock options and other forms of equity compensation in accordance with FASB ASC 718, “Compensation – Stock Compensation.” Under the fair value recognition provision of FASB ASC Topic 718, stock-based compensation cost is estimated at the grant date based on the fair value of the award. The Company estimates the fair value of stock options granted using the Black-Scholes-Merton option pricing model.

Reclassifications

Reclassifications occurred to certain prior period amounts in order to conform to to current year presentation. The reclassifications have no effect on the reported net income.

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(4) LOANS AND MORTGAGE PAYABLE

6 Months Ended

Jun. 30, 2011

Debt Disclosure [Text Block]

(4) LOANS AND MORTGAGE PAYABLE

LOANS PAYABLE

Short-term debt to brokers (margin debt) is secured by the Company’s marketable securities and totaled $6,282,202 at June 30, 2011 and $4,638,197 at December 31, 2010. The interest rate on the Company’s margin debt at June 30, 2011 ranged from 1.039% to 1.041%.

MORTGAGE PAYABLE

Daxor financed the purchase of the land and two buildings in Oak Ridge, Tennessee with a $500,000 mortgage, with the first five years fixed at 7.49%. There was a balloon payment of $301,972 for the remaining principal and interest on the mortgage due on January 2, 2012.

On July 19, 2011, the Company signed a new five year mortgage agreement for the remaining principal balance of $319,927 plus interest. The interest rate is fixed at 5.75% and the first payment is due September 2, 2011 and the last payment is due August 2, 2016.

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(5) PUT AND CALL OPTIONS AT FAIR VALUE

6 Months Ended

Jun. 30, 2011

Derivatives and Fair Value [Text Block]

(5) PUT AND CALL OPTIONS AT FAIR VALUE

As part of the Company’s investment strategy, put and call options are sold on various stocks the Company is willing to buy or sell. The premiums received are deferred until such time as they are exercised or expire. These options are marked to market for each reporting period using readily available market quotes, and this fair value adjustment is recorded as a gain or loss in the Statement of Operations.

Upon exercise, the value of the premium will adjust the basis of the underlying security bought or sold. Options that expire are recorded as income in the period they expire.

For the three months ended June 30, 2011, the Company recorded a loss from marking put and call options to market of ($662,641). For the three months ended June 30, 2010, the Company recorded a loss from marking put and call options to market of ($3,384,096). These amounts are included in the Statements of Operations as part of mark to market of short positions.

For the six months ended June 30, 2011, the Company recorded a loss from marking put and call options to market of ($3,770,224). For the six months ended June 30, 2010, the Company recorded a loss from marking put and call options to market of ($5,362,299). These amounts are included in the Statements of Operations as part of mark to market of short positions.

All proceeds of the put and call options which are equity contracts are shown net of the mark to market adjustment in the current liability section of the balance sheet as Put and call options, at fair value.

The following summarizes the Company’s Put and Call Options as of March 31, 2011 (unaudited) and December 31, 2010:

Put and Call Options	Selling Price		Fair Market Value		Unrealized Gain
June 30, 2011	$	5,223,052	$	3,426,718	$	1,796,334
December 31, 2010	$	9,896,627	$	4,330,069	$	5,566,558

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(6) SECURITIES BORROWED AT FAIR VALUE	6 Months Ended
(6) SECURITIES BORROWED AT FAIR VALUE	Jun. 30, 2011
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]	(6) SECURITIES BORROWED AT FAIR VALUE The Company maintains short positions in certain marketable securities. The liability for short sales of securities is included in “Securities borrowed at fair market value” in the accompanying balance sheets. The respective market values of these positions were $31,354,266 and $22,406,036 as of June 30, 2011 and December 31, 2010.

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2011	Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:	??	??
Net (Loss) Income	$ (1,510,782)	$ 95,937
Adjustment to reconcile net (loss) income to net cash used in operating activities:	??	??
Depreciation	147,029	148,802
Non-cash compensation expense associated with employee stock compensation plans	1,946	??
Deferred income taxes	(2,365,326)	(2,217,697)
Bad debt allowance	??	(763)
Realized gains on sale of securities and options, net	(6,024,047)	(7,566,047)
Mark to market adjustments on short sales of options	6,155,563	5,090,887
Change in operating assets and liabilities:	??	??
(Increase) Decrease in accounts receivable	(14,653)	45,962
Increase in prepaid expenses & other current assets	(53,782)	(56,027)
Decrease in inventory	6,300	19,966
Increase in accounts payable and accrued liabilities	626,096	45,400
(Decrease) Increase in income taxes payable	(1,851,292)	1,754,036
(Decrease) Increase in deferred revenue	(22,555)	7,318
Net cash used in operating activities	(4,905,503)	(2,632,226)
CASH FLOWS FROM INVESTING ACTIVITIES:	??	??
Purchase of property and equipment	(60,242)	(199,077)
Proceeds from sale of property and equipment	2,000	??
Increase in receivable due from broker	(8,884,526)	(8,980,681)
Increase in securities borrowed, at fair market value	8,948,230	7,644,439
Purchases of put and call options	(409,686)	(214,795)
Proceeds from sales of put and call options	5,124,317	8,841,903
Acquisition of available for sale securities	(9,984,714)	(11,172,887)
Proceeds from sale of available for sale securities	5,206,520	7,140,565
Net cash (used in) provided by investing activities	(58,101)	3,059,467
CASH FLOWS FROM FINANCING ACTIVITIES:	??	??
Proceeds from margin loan payable	16,813,859	15,800,028
Repayment of margin loan payable	(11,116,240)	(15,734,574)
Purchase of treasury stock	(22,972)	(110,990)
Dividends paid	(633,919)	(424,042)
Repurchase and retirement of Common Stock	(100)	??
Repayment of mortgage payable	(22,996)	(21,349)
Net cash provided by (used in) financing activities	5,017,632	(490,927)
Net increase (decrease) in cash and cash equivalents	54,028	(63,686)
Cash and cash equivalents at beginning of period	57,741	277,088
Cash and cash equivalents at end of period	111,769	213,402
Interest	111,908	16,561
Income taxes	$ 2,986,822	$ 1,018,517

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(2) AVAILABLE-FOR-SALE SECURITIES

6 Months Ended

Jun. 30, 2011

Marketable Securities [Text Block]

(2) AVAILABLE-FOR-SALE SECURITIES

The Company uses the historical cost method in the determination of its realized and unrealized gains and losses. The following tables summarize the Company’s investments as of:

Summary of Available for Sale Securities as of June 30, 2011 (Unaudited)

Type of Security	Market Value		Cost of Securities		Net Unrealized Gain		Unrealized Gains		Unrealized Losses
Common Stock	$	51,968,112	$	28,425,038	$	23,543,074	$	25,478,675	$	(1,935,601	)
Preferred Stock		2,091,263		1,571,618		519,645		520,557		(912	)
Total Equity Securities	$	54,059,375	$	29,996,656	$	24,062,719	$	25,999,232	$	(1,936,513	)

Summary of Unrealized Losses of Available for Sale Securities as of June 30, 2011 (Unaudited)

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Marketable Equity Securities	$	7,114,280	$	1,327,682	$	1,925,464	$	608,831	$	9,039,744	$	1,936,513

Summary of Unrealized Gains on Available for Sale Securities as of June 30, 2011 (Unaudited)

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Gains		Fair Value		Unrealized Gains		Fair Value		Unrealized Gains
Marketable Equity Securities	$	1,048,050	$	149,026	$	43,971,581	$	25,850,206	$	45,019,631	$	25,999,232

Summary of Available for Sale Securities as of December 31, 2010

Type of Security	Market Value		Cost of Securities		Net Unrealized Gain		Unrealized Gains		Unrealized Losses
Common Stock	$	51,808,717	$	29,341,744	$	22,466,973	$	23,044,040	$	(577,067	)
Preferred Stock		2,067,354		1,626,215		441,139		454,032		(12,893	)
Total Equity Securities	$	53,876,071	$	30,967,959	$	22,908,112	$	23,498,072	$	(589,960	)

Daxor Corporation

Summary of Unrealized Losses on Available for Sale Securities

As at December 31, 2010

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Marketable Equity Securities	$	8,263,313	$	74,480	$	2,216,443	$	515,480	$	10,479,756	$	589,960

Daxor Corporation

Summary of Unrealized Gains on Available for Sale Securities

As at December 31, 2010

	Less Than Twelve Months				Twelve Months or Greater				Total
	Fair Value		Unrealized Gains		Fair Value		Unrealized Gains		Fair Value		Unrealized Gains
Marketable Equity Securities	$	2,423,702	$	384,011	$	40,972,613	$	23,114,061	$	43,396,315	$	23,498,072

Our investment policy calls for a minimum of 80% of the value of our portfolio of Available for Sale Securities to be maintained in utility stocks. This percentage may be temporarily decreased to 70% if deemed necessary by management. Operating under this policy, Management’s investment strategy is to purchase utility stocks which it considers to be undervalued relative to the market in anticipation of an increase in the market price.

At June 30, 2011 and December 31, 2010, available for sale securities consisted mostly of preferred and common stocks of utility companies. At June 30, 2011 and December 31, 2010, 96.11% and 96.16% of the market value of the Company’s available for sale securities was made up of common stock, respectively.

The Company’s portfolio value is exposed to fluctuations in the general value of electric utilities. An increase of interest rates could put downward pressure on the valuation of utility stocks.

Electric utilities operate in an environment of federal, state and local regulations, and they may disproportionately affect an individual utility. The Company believes that it’s exposure to regulatory risk is mitigated due to the diversity of holdings consisting of 73 separate common and preferred stocks. As of June 30, 2011 there were five holdings of common stock which comprised 52.36% of the total market value of the available for sale investments. These five holdings are Entergy, Exelon, Bank of America, First Energy and National Grid.

	●	The extent to which the market value has been less than cost.

	●	An evaluation of the financial condition of an issuer including a review of their profit and loss statements for the most recent completed fiscal year and the preceding two years.

	●	The examination of the general market outlook of the issuer. This could include but is not limited to the issuer having a unique product or technology which would appear likely to have a positive impact on future earnings.

	●	A review of the general market conditions.

	●	Our intent and ability to retain the investment for a period of time sufficient to allow for the anticipated recovery in market value.

	●	Specific adverse conditions related to the financial health of, and business outlook for, the issuer.

	●	Changes in technology in the industry and its affect on the issuer.

	●	Changes in the issuer’s credit rating.

Unrealized Losses on Available for Sale Securities

At June 30, 2011, 92.44% or $1,790,046 of the total unrealized losses of $1,936,513 was comprised of the following three securities: $971,893 for Bank of America, $264,167 for Citigroup Inc. and $553,986 for USEC.

Bank of America

At June 30, 2011, Daxor owned 507,995 shares of Bank of America with a cost basis of $12.87 per share and a market value of $10.96 per share. On August 3, 2011, the market value was $9.54 per share which is $3.33 or 26% lower than our cost basis of $12.87 per share. As of June 30, 2011, the book value of the Company was $20.29 per share which is substantially more than the current market price and the cost basis of the shares owned by Daxor.

On July 19, 2011, Bank of America reported a net loss of $8.8 billion for the quarter ended June 30, 2011 versus net income of $3.1 billion for the same period in 2010.

The main reason for the loss was a representation and warranties provision of $14.0 billion which includes $8.6 billion in provision and other expenses related to the agreement to resolve nearly all of the legacy Countrywide issued first lien non-GSE RMBS repurchase exposures and $5.4 billion in provision related to other non-GSE, and, to a lesser extent, GSE exposure. Bank of America management now believes it has recorded reserves in its financial statements for a substantial portion of its representations and warranties exposures as measured by original principal balance.

In order to be “well capitalized” under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 Capital Ratio of at least 6%, a Total Capital Ratio of at least 10%, and a Leverage ratio of at least 3% not to be subject to a Federal Reserve Board directive to maintain higher capital levels. At June 30, 2011, the Tier 1 Capital Ratio was 11.00%, the Total Capital Ratio was 15.65% and the leverage ratio was 6.86%. Bank of America is considered “well capitalized” under the federal regulatory agency definitions at June 30, 2011.

After considering the available positive and negative evidence in addition to the ability of Daxor to hold the stock until the market price exceeds our cost as it did at March 31, 2011, management has determined that an impairment charge is not necessary at June 30, 2011 on Bank of America.

Citigroup

At June 30, 2011, Daxor owned 27,940 shares of Citigroup with a cost basis of $51.09 per share and a market value of $41.64. On August 3, 2011, the market value was $37.26 per share which is $13.83 or 27% lower than our cost basis of $51.09 per share. During the first quarter of 2009, the stock was at $10.00 per share and as of August 3, 2011, was trading at $37.26 per share. The stock price has increased by 13% from January 1, 2010 through August 3, 2011 going from $33.10 per share to $37.26 per share.

Citigroup reported net income of $7.1 billion for the six months ended June 30, 2011 versus net income of $6.3 billion for the six months ended June 30, 2010.

Citigroup has increased headcount to 263,000 at June 30, 2011 from 260,000 at March 31, 2011. This is still less than the peak level of 375,000 from 2007. Total Operating Expenses were 8% during the six months ended June 30, 2011 as compared to the same period in 2010.

During 2009, Citigroup repaid $20 billion of TARP (Troubled Asset Relief Program) trust preferred securities and exited a loss sharing agreement. As a result of these transactions, effective in 2010, Citigroup is no longer deemed to be a beneficiary of “exceptional financial assistance” under TARP.

In order to be “well capitalized” under federal bank regulatory agency definitions, a bank holding company must have a Tier 1 Capital Ratio of at least 6%, a Total Capital Ratio of at least 10% , and a Leverage ratio of at least 3%, and not be subject to a Federal Reserve Board directive to maintain higher capital levels. At June 30, 2011, the Tier 1 Capital Ratio was 13.6%, Total Capital Ratio was 17.2% and the Leverage Ratio was 7.0%. Citigroup is considered “well capitalized” under the federal regulatory agency definitions at June 30, 2011 and all of these percentages have improved since December 31, 2010.

The operating environment for Citigroup continues to be difficult but the stock price has mostly been trending upward since the first quarter of 2010. Citigroup has now recorded a profit for six consecutive quarters versus a loss for the year ended December 31, 2009. Citigroup is no longer deemed to be a beneficiary of “exceptional financial assistance” under TARP and is considered to be “well capitalized” under the federal regulatory agency definitions at June 30, 2011.

After considering the available positive and negative evidence in addition to the ability of Daxor to hold the stock until the market price exceeds our cost, management has determined that an impairment charge is not necessary at June 30, 2011 on Citigroup.

USEC

At June 30, 2011, Daxor owned 343,100 shares of USEC with a cost basis of $4.95 per share and a market value of $3.34 per share. On August 3, 2011 the market value of USEC was $3.18 per share which is $1.77 or 36% less than our cost basis of $4.95 per share.

The stock price has decreased by 47% from January 1, 2011 through August 3, 2011, going from $5.99 per share to $3.18 per share. As of June 30, 2011, the Book Value of the Company was approximately $10.95 per share. This is substantially more than the current market price and the cost basis of the shares owned by Daxor.

USEC Inc., together with its subsidiaries, supplies low enriched uranium (LEU) to commercial nuclear power plants in the United States and internationally. It also performs contract work for the U.S. Department of Energy (DOE) and DOE contractors at the Paducah and Portsmouth gaseous diffusion plants. USEC Inc’s contract work includes support services and the maintenance of Portsmouth gaseous diffusion plant in a state of cold shutdown. In addition, the company provides nuclear energy solutions and services, including the design, fabrication, and implementation of spent nuclear fuel technologies; nuclear materials transportation and storage systems; and nuclear fuel cycle and energy consulting services.

USEC reported a net loss of $37.8 million for the six months ended June 30, 2011, versus a net loss of $2.5 million for the same period in 2010. Revenue for the current six month period was $834.9 million which is a 4% increase over 2010. The Gross Profit Margin was 5.6% during the six months ended June 30, 2011 versus 8.8% for the same period in 2010.

Electricity makes up approximately 70% of USEC’s production cost. The Company is focused on negotiations with their major power supplier and other utilities in order to obtain lower cost power with less volatility in pricing after their current contract expires in 2012.

According to their news release of August 3, 2011, the Company is expecting revenue of approximately $1.7 billion for 2011 and a gross profit of approximately $100 million.

Daxor Corporation

Summary of Unrealized Losses on Bank of America, Citigroup and USEC

As of June 30, 2011

			Less Than Twelve Months				Twelve Months or Greater				Total
Security	Total Cost		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Bank of America	$	6,539,518	$	5,567,625	$	971,893	$	—	$	—	$	5,567,625	$	971,893
Citigroup		1,427,588		—		—		1,163,421		264,167		1,163,421		264,167
USEC		1,699,940		882,762		313,595		263,192		240,391		1,145,954		553,986
Total	$	9,667,046	$	6,450,387	$	1,285,488	$	1,426,613	$	504,558	$	7,877,000	$	1,790,046

???

(11) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2011

New Accounting Pronouncement or Change in Accounting Principle, Description

(11) RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

On January 1, 2011, the Company adopted Accounting Statement Update (ASU) 2009-13, “Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements,” which eliminates the residual method of allocation, and instead requires companies to use the relative selling price method when allocating revenue in a multiple deliverable arrangement. When applying the relative selling price method, the selling price for each deliverable shall be determined using vendor specific objective evidence of selling price, if it exists, otherwise using third-party evidence of selling price. If neither vendor specific objective evidence nor third-party evidence of selling price exists for a deliverable, companies shall use their best estimate of the selling price for that deliverable when applying the relative selling price method. The Company has elected to adopt this guidance prospectively for all revenue arrangements entered into or materially modified after the date of adoption. The adoption of the provisions of ASU 2009-13 did not have a material effect on the financial position, results of operations or cash flows of the Company.

On January 1, 2011, the Company adopted ASU 2010-06, “Improving Disclosures about Fair Value Measurements,” to require additional disclosures related to activity within Level 3 of the fair value hierarchy. The adoption of ASU 2010-06 did not have a a material effect on the financial position, results of operations or cash flows of the Company.

In June 2011, the FASB issued Accounting Standards Update 2010-05 (ASU 2011-05), Comprehensive Income (Topic 220): Presentation of Comprehensive Income. The amendments require that all nonowner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components followed consecutively by a second statement that should present total other comprehensive income, the components of other comprehensive income, and the total of comprehensive income. The amendments in this Update should be applied retrospectively and are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2011. Early adoption is permitted, because compliance with the amendments is already permitted. The Company does not expect the provisions of ASU 2011-05 to have a material effect on the financial position, results of operations or cash flows of the Company.

In April 2011, the FASB issued Accounting Standards Update 2010-04 (ASU 2011-04), Fair Value Measurement (Topic 820): Amendments to achieve common fair value measurement and disclosure requirements in U.S. GAAP and IFRS. The amendments in this Update result in common fair value measurement and disclosure requirements in U.S. GAAP and IFRSs. Consequently, the amendments change the wording used to describe many of the requirements in U.S. GAAP for measuring fair value and for disclosing information about fair value measurements. For many of the requirements, the Board does not intend for the amendments in this Update to result in a change in the application of the requirements in Topic 820. The amendments in this Update should be applied prospectively and are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2011. Early application is not permitted. The Company does not expect the provisions of ASU 2011-04 to have a material effect on the financial position, results of operations or cash flows of the Company.

Management does not believe that any other recently issued, but not yet effective, accounting standard if currently adopted would have a material effect on the accompanying financial statements.

???

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Dec. 31, 2010
CURRENT ASSETS	??	??
Cash and cash equivalents	$ 111,769	$ 57,741
Receivable from broker	37,213,352	32,382,439
Available-for-sale securities, at fair value	54,059,375	53,876,071
Accounts receivable, net of allowance for doubtful accounts of $125,402 in 2011 and $125,402 in 2010	193,473	178,820
Inventory	357,334	363,634
Prepaid expenses and other current assets	184,342	130,560
Total Current Assets	92,119,645	86,989,265
Property and equipment, net	4,080,205	4,168,992
Other assets	37,158	37,158
Total Assets	96,237,008	91,195,415
CURRENT LIABILITIES	??	??
Accounts payable and accrued liabilities	1,062,638	436,542
Margin loans payable	6,282,202	4,638,197
Income taxes payable	1,135,508	2,986,800
Mortgage payable, current portion	50,466	46,798
Put and call options, at fair value	3,426,718	4,330,069
Securities borrowed, at fair value	31,354,266	22,406,036
Deferred revenue	29,365	51,920
Deferred income taxes	7,041,693	9,003,946
Total Current Liabilities	50,382,856	43,900,308
LONG TERM LIABILITIES	??	??
Mortgage payable, less current portion	273,399	300,063
Total Liabilities	50,656,255	44,200,371
STOCKHOLDERS??? EQUITY	??	??
Common stock, $.01 par value, Authorized - 10,000,000 shares Issued ??? 5,316,540 shares Outstanding ??? 4,223,793 and 4,226,137 shares at June 30, 2011 and December 31, 2010, respectively	53,165	53,165
Additional paid in capital	10,677,074	10,675,228
Accumulated other comprehensive income	15,641,808	14,890,272
Retained earnings	30,835,640	32,980,341
Treasury stock, at cost, 1,092,747 and 1,090,413 shares at June 30, 2011 and December 31, 2010, respectively	(11,626,934)	(11,603,962)
Total Stockholders??? Equity	45,580,753	46,995,044
Total Liabilities and Stockholders??? Equity	$ 96,237,008	$ 91,195,415