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 4740
New
York, New York 10118
(Address
of principal offices)(Zip code)
Michael
Feldschuh, Daxor Corporation
350
Fifth Avenue, Suite 4740
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, 2018
Date
of Reporting Period: September 30, 2018
Item
1. Schedule of Investments
Daxor
Corporation
Schedule
of Investments
September
30, 2018 (Unaudited)
|
|
Shares
|
|
|
Fair
Value
|
|
COMMON STOCKS - (United States) - 86.53%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrials - 0.22%
|
|
|
|
|
|
|
|
|
General
Electric Company
|
|
|
2,500
|
|
|
$
|
28,225
|
|
|
|
|
|
|
|
|
|
|
Investment Services - 0.01%
|
|
|
|
|
|
|
|
|
Motors Liquidation
Company GUC Trust
|
|
|
100
|
|
|
$
|
1,003
|
|
|
|
|
|
|
|
|
|
|
Materials - 0.75%
|
|
|
|
|
|
|
|
|
Enbridge Inc.
|
|
|
2,952
|
|
|
$
|
95,320
|
|
|
|
|
|
|
|
|
|
|
Utilities - 85.55%
|
|
|
|
|
|
|
|
|
Electric Utilities - 84.66%
|
|
|
|
|
|
|
|
|
American Electric Power Co. Inc.
|
|
|
5,000
|
|
|
$
|
354,400
|
|
Avangrid, Inc.
|
|
|
7,000
|
|
|
|
335,510
|
|
Avista Corporation
|
|
|
6,000
|
|
|
|
303,360
|
|
CenterPoint Energy, Inc.
|
|
|
1,000
|
|
|
|
27,650
|
|
Centrus Energy Corp.
|
|
|
1
|
|
|
|
3
|
|
CMS Energy Corporation
|
|
|
16,000
|
|
|
|
784,000
|
|
DTE Energy Company
|
|
|
16,700
|
|
|
|
1,822,471
|
|
Edison International
|
|
|
4,000
|
|
|
|
270,720
|
|
Entergy Corporation
|
|
|
5,500
|
|
|
|
446,215
|
|
Evergy Inc.
|
|
|
13,397
|
|
|
|
735,763
|
|
Eversource Energy
|
|
|
20,000
|
|
|
|
1,228,800
|
|
Exelon Corporation
|
|
|
10,300
|
|
|
|
449,698
|
|
FirstEnergy Corp.
|
|
|
28,800
|
|
|
|
1,070,496
|
|
National Grid plc
|
|
|
8,707
|
|
|
|
451,545
|
|
NiSource, Inc.
|
|
|
19,000
|
|
|
|
473,480
|
|
PG&E Corporation
|
|
|
4,000
|
|
|
|
184,040
|
|
Pinnacle West Capital Corporation
|
|
|
3,000
|
|
|
|
237,540
|
|
PNM Resources, Inc.
|
|
|
31,800
|
|
|
|
1,254,510
|
|
WEC Energy Group, Inc.
|
|
|
1,128
|
|
|
|
75,305
|
|
Xcel Energy,
Inc.
|
|
|
6,000
|
|
|
|
283,260
|
|
|
|
|
|
|
|
$
|
10,788,766
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Utilities - 0.89%
|
|
|
|
|
|
|
|
|
Southwest Gas Holdings, Inc.
|
|
|
1,000
|
|
|
$
|
79,030
|
|
United States
Natural Gas
|
|
|
1,406
|
|
|
|
34,911
|
|
|
|
|
|
|
|
|
113,941
|
|
Total Utilities
|
|
|
|
|
|
$
|
10,902,707
|
|
Total
Common Stock (Cost $3,456,793) - 86.53%
|
|
|
|
|
|
$
|
11,027,255
|
|
Daxor
Corporation
Schedule
of Investments (Continued)
September
30, 2018 (Unaudited)
|
|
Shares
|
|
|
Fair
Value
|
|
Preferred Stocks - (United States) -
6.25%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banking – 3.60%
|
|
|
|
|
|
|
|
|
Bank of America Corp 7.250%
Series L
|
|
|
300
|
|
|
$
|
388,275
|
|
Barclays Bank PLC ADR, 8.125% Series
5 Callable
|
|
|
2,500
|
|
|
|
65,075
|
|
Goldman Sachs Group, 6.20% Series B
Callable
|
|
|
188
|
|
|
|
4,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
458,293
|
|
|
|
|
|
|
|
|
|
|
Electric Utilities - 2.65%
|
|
|
|
|
|
|
|
|
Pacific Gas & Electric, 6% Series
A
|
|
|
4,200
|
|
|
$
|
107,562
|
|
Pacific Gas & Electric, 5% Series
D
|
|
|
1,000
|
|
|
|
21,980
|
|
Pacific Gas & Electric, 5% Series
E
|
|
|
1,100
|
|
|
|
23,747
|
|
Southern California Edison, 4.32% Callable
|
|
|
5,500
|
|
|
|
123,475
|
|
Southern California
Edison, 4.78% Callable
|
|
|
2,500
|
|
|
|
61,250
|
|
|
|
|
|
|
|
$
|
338,014
|
|
|
|
|
|
|
|
|
|
|
Total
Preferred Stock (Cost $398,576) - 6.25%
|
|
|
|
|
|
$
|
796,307
|
|
|
|
|
|
|
|
|
|
|
Total
Investment in Securities (Cost $3,855,369) - 92.78%
|
|
|
|
|
|
$
|
11,823,562
|
|
|
|
|
|
|
|
|
|
|
Investment in
Operating Division (Cost $3,508,597) - (United States) - 38.45%
|
|
|
|
|
|
$
|
4,900,000
|
|
|
|
|
|
|
|
|
|
|
Receivable from Broker-Restricted Cash
(a) - 0.06%
|
|
|
|
|
|
$
|
7,326
|
|
Other Assets
- 2.78%
|
|
|
|
|
|
$
|
353,987
|
|
|
|
|
|
|
|
|
|
|
Total Assets - 134.06%
|
|
|
|
|
|
$
|
17,084,875
|
|
Total Liabilities
- (34.06%)
|
|
|
|
|
|
|
(4,340,638
|
)
|
Net Assets -
100%
|
|
|
|
|
|
$
|
12,744,237
|
|
Daxor
Corporation
Schedule
of Investments (Continued)
September
30, 2018 (Unaudited)
At
September 30, 2018, the net unrealized appreciation based on cost for financial reporting purposes of $7,968,192 was as follows:
Aggregate gross unrealized
appreciation for all investments for which there was an excess of value over cost
|
|
$
|
8,104,374
|
|
Aggregate gross
unrealized depreciation for all investments for which there was an excess of cost over value
|
|
|
(136,182
|
)
|
Net unrealized
appreciation
|
|
$
|
7,968,192
|
|
|
|
Percentage
of
Net
Assets
|
|
Common Stock
|
|
|
|
|
|
|
|
|
|
Industrials
|
|
|
0.22
|
%
|
|
|
|
|
|
Investment Services
|
|
|
0.01
|
%
|
|
|
|
|
|
Materials
|
|
|
0.75
|
%
|
|
|
|
|
|
Electric Utilities
|
|
|
84.66
|
%
|
|
|
|
|
|
Natural Gas Utilities
|
|
|
0.89
|
%
|
|
|
|
|
|
Total Common
Stock
|
|
|
86.53
|
%
|
|
|
|
|
|
Preferred Stock
|
|
|
|
|
|
|
|
|
|
Banking
|
|
|
3.60
|
%
|
|
|
|
|
|
Electric Utilities
|
|
|
2.65
|
%
|
|
|
|
|
|
Total Preferred
Stock
|
|
|
6.25
|
%
|
|
|
|
|
|
Total Investment
in Securities
|
|
|
92.78
|
%
|
Daxor
Corporation
Schedule
of Investments (Continued)
September
30, 2018 (Unaudited)
Restricted Cash (a) - 0.06%
|
|
$
|
7,326
|
|
|
|
|
|
|
Other assets
– 2.78%
|
|
|
353,987
|
|
Name
of Issuer
|
|
Number
of Contracts
|
|
|
Strike
Price
|
|
|
Expiration
Date
|
|
Fair
Value
|
|
Open Options Written - (United States)
- (0.42%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Call Options Written - (United States)
- (0.27%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DTE Energy Company
|
|
|
(10
|
)
|
|
|
82.5
|
|
|
1/18/2019
|
|
$
|
(3,022
|
)
|
Exelon Corporation
|
|
|
(90
|
)
|
|
|
38
|
|
|
1/18/2019
|
|
|
(25,380
|
)
|
Exelon Corporation
|
|
|
(50
|
)
|
|
|
40
|
|
|
1/18/2019
|
|
|
(3,900
|
)
|
Exelon Corporation
|
|
|
(17
|
)
|
|
|
34
|
|
|
10/19/2018
|
|
|
(1,785
|
)
|
Total Call Options
Written (proceeds $25,574)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(34,087
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Margin loans
payable (b) - (33.79%)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(4,306,551
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
- (34.06%)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(4,340,638
|
)
|
Daxor
Corporation
Schedule
of Investments (Continued)
September
30, 2018 (Unaudited)
The
Company carried its investments in securities, securities borrowed and call and put options at fair value and utilizes various
methods to measure the fair value of its investments on a recurring basis. Fair value is an estimate of the exit price, representing
the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants
(i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction costs. GAAP establishes
a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs 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 an 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, 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, securities borrowed and put and call options that are freely traded and are listed on a national securities exchange
are valued at the last reported sales price on the last business day of the year; 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 asked
prices.
The
following tables summarize the inputs used as of September 30, 2018 for the Corporation’s assets and liabilities measured
at fair value:
Assets
*
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Total
|
|
Common Stocks
|
|
$
|
11,027,255
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
11,027,255
|
|
Preferred Stocks
|
|
|
796,307
|
|
|
|
-
|
|
|
|
-
|
|
|
|
796,307
|
|
Investment in
Operating Division
|
|
|
-
|
|
|
|
-
|
|
|
|
4,900,000
|
|
|
|
4,900,000
|
|
Total
|
|
$
|
11,823,562
|
|
|
$
|
-
|
|
|
$
|
4,900,000
|
|
|
$
|
17,084,875
|
|
Liabilities
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Total
|
|
Call
and Put Options
|
|
$
|
34,087
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
34,087
|
|
The
Company establishes valuation processes and procedures to ensure that the valuation techniques for investments that are categorized
within Level 3 of the fair value hierarchy are fair, consistent, and verifiable. At September 30, 2018, Level 3 investments consist
solely of the Company’s investment in its Operating Division at fair value. The Company’s Audit Committee oversees
the valuation process of the Company’s Level 3 investments. The Audit Committee is comprised of members of the Company’s
Board of Directors and is responsible for the valuation processes and procedures and evaluating the overall fairness and consistent
application of the valuation policies. For this valuation process the Audit Committee meets semi-annually or as needed, and in
conjunction with reports from an independent valuation company determines the valuations of the Company’s Level 3 investments.
Valuations determined by the Audit Committee are required to be supported by the independent valuation company whose reports may
include information such as market data, third-party pricing sources, industry accepted pricing models, counterparty prices, or
other appropriate methods. On an annual basis, the Company engages the services of an independent valuation company to perform
an independent review of the valuation of the Company’s investment in its wholly owned Operating Division, and may adjust
its valuations based on the recommendations from the valuation firm.
Daxor
Corporation
Schedule
of Investments (Continued)
September
30, 2018 (Unaudited)
The
Company’s Level 3 asset consists of its investment in its Operating Division at fair value and requires significant judgment
due to the absence of quoted market prices, inherent lack of liquidity, heavy reliance on Level 3 inputs, and the long-term nature
of such investments. Since its 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. Investment in Operating Division is primarily located in Oak Ridge, Tennessee and was initially valued
at transaction value for identified assets (property and equipment, land, buildings and laboratory equipment), less accumulated
depreciation adjusted for investment in/advances to operating division, business operations and activity and realized losses.
Based on Company initiatives commencing in 2016 related to potential partnerships, joint ventures, product development, marketing
and other operations of the Operating Division, the Company hired an independent valuation company to perform a valuation of the
Operating Division. The independent valuation company performed valuations using the Income Approach and Market Approaches as
defined in SFAS 157 (ASC 820). Based on the valuation approaches, the valuation ranges were $4,600,000 to $5,400,000 for the Income
Approach. In determining the Income Approach value range the Gordon Growth Model valuation technique was used with discount rates
ranging from 20.0% to 21.0% and long-term growth rates ranging from 2.5% to 3.5%. Significant increases (decreases) in these unobservable
inputs in isolation could result in significant changes in fair value measurements. The Income Approach was weighted 100% given
the current financial performance and expectations as to longer-term revenue growth and profitability less current period depreciation
resulting in an adjusted midpoint value of $4,000,000.
Securities
valuation policies and other investment related disclosures will be incorporated by reference to the annual report to be filed
with the Securities and Exchange Commission on Form N-CSR.
*
|
Refer
to the Schedule of Investments for industry classifications for common and preferred stock.
|
(a)
|
Restricted
cash held by Company’s brokers to satisfy margin requirements.
|
(b)
|
Short-Term
debt due to brokers secured by the Company’s investments in marketable securities.
|
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/
Michael Feldschuh
|
|
BY:
|
Michael
Feldschuh
|
|
ITS:
|
President
|
|
|
(President/Chief
Executive Officer/Principal Executive Officer)
|
Date:
November 16, 2018
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/
Robert J. Michel
|
|
BY:
|
Robert
J. Michel
|
|
ITS:
|
Chief
Financial Officer
|
|
|
(Principal
Financial Officer/Principal Accounting Officer)
|
Date:
November 16, 2018
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