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, 2015

 

Date of Reporting Period: March 31, 2015

 
 

Item 1. Schedule of Investments

 

 Daxor Corporation

Schedule of Investments

March 31, 2015 (Unaudited)

 

   Shares   Market Value 
COMMON STOCKS - 172.92%          
           
Banking -0.48%          
           
Popular, Inc. (a)   1,700    58,463 
First Niagara Financial Group, Inc.   5,000    44,200 
        $102,663 
           
Investment Services-0.51%          
United States Natural Gas Fund, LLP (a)   8,125   $107,575 
           
Oil & Gas Operations-0.43%          
Exco Resources, Inc.   15,000   $27,450 
Williams Companies, Inc.   1,200    60,708 
WPX Energy Inc. (a)   400    4,372 
        $92,530 
           
Other Common Stock-0.09%       $19,597 
 
 

Daxor Corporation

Schedule of Investments

March 31, 2015 (Unaudited)

 

   Shares   Market Value 
COMMON STOCKS - 172.92%          
           
Utilities-170.97%          
Electric Utilities-166.47%          
Ameren Corp.   4,000   $168,800 
American Electric Power Co. Inc.   22,600    1,271,250 
Avista Corp.   14,396    492,055 
Calpine Corp. (a)   1,328    30,371 
Centerpoint Energy, Inc.   5,000    102,050 
CMS   41,500    1,448,765 
DTE Energy Co.   47,000    3,792,430 
Duke Energy Corp.   18,117    1,391,023 
Edison International   7,000    437,290 
Entergy Corp.   37,845    2,932,609 
Eversource Energy   41,320    2,087,487 
Exelon Corp.   27,700    930,997 
Firstenergy Corp.   85,786    3,007,657 
Great Plains Energy Inc.   21,000    560,280 
Hawaiian Electric Industries, Inc.   58,200    1,869,384 
National Grid PLC Shares   38,751    2,503,702 
National Grid PLC ADR   30,392    389,607 
NISOURCE Inc.   44,000    1,943,040 
Pepco Holdings Inc.   2,201    59,053 
PG & E Corp.   7,000    371,490 
Pinnacle West Capital Corp.   31,002    1,976,378 
PNM Resources, Inc.   78,750    2,299,500 
Teco Energy, Inc.   2,000    38,800 
UIL Holdings Corp.   22,332    1,148,311 
UNITIL Corp.   52,900    1,839,333 
Westar Energy, Inc.   42,941    1,664,393 
XCEL Energy, Inc.   19,050    663,131 
        $35,419,186 
Natural Gas Utilities-4.50%          
Integrys Energy Group Inc.   4,500   $324,090 
Southwest Gas Corp.   1,000    58,170 
Spectra Energy Corp.   15,925    576,007 
        $958,267 
           
Total Utilities       $36,377,453 
           
Waste Management-0.44%          
Veolia Environnment SA ADR   5,000   $94,350 
           
Total Common Stock (Cost $14,009,434)-172.92%       $36,794,168 
 
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2015 (Unaudited)

 

   Shares   Market Value 
Preferred Stocks-8.16%          
           
Banking-6.24%          
Bank of America Corp., 6.204% Series D   1,000   $25,390 
Bank of America Corp., 7.250% Series L   700    809,900 
Barclays Bank PLC ADR, 8.125% Series 5 Callable   2,500    65,625 
Deutsche Bank Contingent Capital Trust III Preferred, Div 7.60%   10,000    283,000 
Goldman Sachs Group, 6.20% Series B Callable   1,000    25,500 
Wells Fargo Company, 8.00 % Series J Non-Cumulative   4,000    117,000 
        $1,326,415 
           
Electric Utilities-1.80%          
Duquesne Light Co. Preferred, 3.75% Callable   400   $17,200 
Pacific Gas & Electric, 5% Series D   1,000    25,120 
Pacific Gas & Electric, 5% Series E   1,100    27,275 
Pacific Gas & Electric, 6% Series A   4,200    123,256 
Southern California Edison, 4.32% Callable   5,500    128,590 
Southern California Edison, 4.78% Callable   2,500    61,909 
        $383,350 
           
Insurance-0.12%          
MetLife Inc., Series B   1,000   $25,910 
           
Total Preferred Stock (Cost $1,084,157)-8.16%       $1,735,675 
           
Total Investment in Securities (Cost $15,093,591) -181.08%       $38,529,843 
           
Investment in Operating Division-16.39%       $3,486,995 
           
Deferred Income Taxes, Net-12.29%       $2,615,595 
           
Other Assets-0.66%       $141,571 
           
Total Assets-210.42%       $44,774,004 
Total Liabilities – (110.42%)        (23,495,758)
Net Assets-100.00%       $21,278,246 
 
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2015 (Unaudited)

 

At March 31, 2015, the net unrealized appreciation based on cost for financial reporting purposes of $23,436,252 was as follows:

 

Aggregate gross unrealized appreciation for all investments
for which there was an excess of value over cost
  $23,715,249 
Aggregate gross unrealized depreciation for all investments
for which there was an excess of cost over value
   (278,997)
Net unrealized appreciation  $23,436,252 

 

Portfolio Analysis

As of March 31, 2015

 

   Percentage of Net
Assets
 
Common Stock     
Banking   0.48%
Investment Services   0.51%
Other Common Stock   0.09%
Oil and Gas Operations   0.43%
Electric Utilities   166.47%
Natural Gas Utilities   4.50%
Waste Management   0.44%
Total Common Stock   172.92%
      
Preferred Stock     
Banking   6.24%
Electric Utilities   1.80%
Insurance   0.12%
Total Preferred Stock   8.16%
      
Total Investment in Securities   181.08%
 
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2015 (Unaudited)

 

Name of Issuer  Number of Shares in Short
Position at 03/31/2015
        Value of Short Position at
03/31/2015
 
Restricted Cash (b)-25.17%       $5,356,913 
           
Securities Sold Short- (25.05%)          
Apple, Inc.   (7,000)   (871,010)
Best Buy Co. Inc.   (14,000)   (529,060)
Blackberry Limited   (3,500)   (31,255)
Gap, Inc.   (4,000)   (173,320)
General Electric Co.   (2,500)   (62,025)
Hewlett Packard Company   (2,500)   (77,900)
Keurig Green Mountain, Inc.   (7,000)   (782,110)
Intuitive Surgical, Inc.   (500)   (252,515)
KB Home   (3,000)   (46,860)
Netflix, Inc.   (700)   (291,683)
Ralph Lauren Corporation   (1,500)   (197,250)
Simon Property Group Inc.   (10,000)   (1,956,400)
Toll Brothers Inc.   (1,500)   (59,010)
Total Securities Sold Short- (25.05%)       $(5,330,398)
           
Restricted Cash, Net of Securities Borrowed at Fair Market Value -0.12%       $26,515 
 
 
Daxor Corporation
Schedule of Investments (Continued)
March 31, 2015 (Unaudited)
Name of Issuer  Number of Contracts   Exercise Price   Expiration Date  Value 
Open Options Written-(0.45%)                  
Call Options Written- (0.10%)                  
Advanced Micro Devices, Inc.   (4)   4.00   04/17/2015  $(1)
Entergy Corp.   (45)   77.50   06/19/2015   (11,025)
Entergy Corp.   (50)   80.00   06/19/2015   (7,250)
Exco Resources Inc.   (150)   3.00   09/18/2015   (1,127)
Exelon Corp.   (25)   35.00   05/15/2015   (1,562)
United States Natural Gas Fund, LLP   (56)   20.00   04/17/2015   (280)
 Total Call Options Written               $(21,245)
                   
Put Options Written-(0.35%)                  
Apple, Inc.   (2)   115.00   04/17/2015  $(67)
Apple, Inc.   (5)   120.00   04/17/2015   (495)
Bank of America Corp.   (30)   14.00   04/17/2015   (60)
Bank of America Corp.   (25)   15.00   04/17/2015   (339)
Bank of America Corp.   (25)   14.00   05/15/2015   (175)
Bank of America Corp.   (25)   15.00   05/15/2015   (670)
Bank of America Corp.   (25)   14.00   06/19/2015   (389)
Bank of America Corp.   (35)   15.00   06/19/2015   (1,485)
Bank of America Corp.   (25)   15.00   08/21/2015   (1,566)
Bank of America Corp.   (30)   14.00   11/20/2015   (1,655)
Best Buy Co. Inc.   (140)   36.49   05/15/2015   (11,876)
BlackBerry Limited   (35)   9.00   04/17/2015   (1,400)
BP PLC   (35)   36.00   07/17/2015   (3,780)
Entergy Corp.   (10)   75.00   06/19/2015   (2,250)
Gap, Inc.   (40)   37.00   04/17/2015   (100)
General Electric Co.   (25)   23.00   04/17/2015   (150)
Hewlett Packard Company   (25)   32.00   04/17/2015   (2,675)
Intuitive Surgical, Inc.   (5)   430.00   04/17/2015   (950)
KB Home   (30)   13.00   05/15/2015   (255)
Keurig Green Mountain, Inc.   (15)   110.00   04/17/2015   (3,210)
Keurig Green Mountain, Inc.   (50)   105.00   05/15/2015   (22,000)
Keurig Green Mountain, Inc.   (5)   110.00   05/15/2015   (3,250)
Netflix, Inc.   (7)   360.00   04/17/2015   (2,678)
Newmont Mining Corporation   (20)   22.00   04/17/2015   (1,540)
Newmont Mining Corporation   (20)   15.00   06/19/2015   (120)
Newmont Mining Corporation   (40)   20.00   09/18/2015   (5,240)
Newmont Mining Corporation   (25)   15.00   01/15/2016   (1,162)
Ralph Lauren Corporation   (50)   120.00   04/17/2015   (625)
Simon Property Group Inc.   (20)   135.00   04/17/2015   (100)
Simon Property Group Inc.   (30)   140.00   04/17/2015   (11)
Simon Property Group Inc.   (30)   155.00   04/17/2015   (360)
Simon Property Group Inc.   (30)   180.00   05/15/2015   (4,254)
Toll Brothers Inc.   (15)   34.00   04/17/2015   (17)
Total Put Options Written               $(74,904)
                   
Total Call and Put Options Written-(Premium Received)-(0.45%)               $(96,149)
                   
Margin loans payable-(109.55%) (c)               $(23,310,215)
                   
Other Liabilities-(0.42%)               $(89,394)
                   
Total Liabilities –(110.42)%               $(23,495,758)
 
 

Daxor Corporation

Schedule of Investments (Continued)

March 31, 2015 (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, 2015 for the Corporation’s assets and liabilities measured at fair value:

 

Assets *  Level 1   Level 2   Level 3   Total 
Common Stocks  $36,794,168   $   $   $36,794,168 
Preferred Stocks   1,735,675            1,735,675 
Investment in Operating Division           3,486,995    3,486,995 
Total  $38,529,843   $   $3,486,995   $42,016,838 

 

Liabilities  Level 1   Level 2   Level 3   Total 
Margin Loans  $23,310,215   $   $   $23,210,215 
Call and Put Options  $96,149   $   $   $96,149 

 

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 15, 2015    

 

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 15, 2015