Daxor Corporation CEO and President Michael Feldschuh Delivers Corporate Update in Shareholder Letter

Rhea-AI Summary

Daxor (Nasdaq: DXR), a leader in blood volume measurement technology, reported significant growth in its mid-year update for 2024. Key highlights include:

1. Net Asset Value (NAV) increased to $6.75 per share from $6.33 last year.

2. Unaudited revenue for the first half of 2024 more than doubled compared to 2023.

3. Added 14 new accounts, surpassing the 12 added in 2023.

4. Reduced net cash investment to $1.297 million from $2.445 million in H1 2023.

5. Secured $2.45 million in government contracts for technology development.

6. Acquired Volumex®, Megatope®, and Glofil® to improve margins and expand product offerings.

7. Expecting operational positive cash flow by Q4 2024.

Positive

• Revenue more than doubled in H1 2024 compared to H1 2023
• Net Asset Value (NAV) increased to $6.75 per share from $6.33 last year
• Added 14 new accounts in 2024, surpassing the 12 added in 2023
• Reduced net cash investment to $1.297 million from $2.445 million in H1 2023
• Secured $2.45 million in government contracts for technology development
• Acquired Volumex®, Megatope®, and Glofil® to improve margins and expand product offerings
• Expecting operational positive cash flow by Q4 2024

Negative

• Operating Division still not profitable, with a net cash investment of $1.297 million in H1 2024

Financial Analyst

Daxor 's mid-year update reveals impressive financial growth and strategic advancements. The doubling of revenue in H1 2024 compared to H1 2023 is a strong indicator of market traction. The increase in Net Asset Value to $6.75 per share from $6.33 last year shows solid balance sheet improvement.

The reduction in net cash investment to $1.297 million from $2.445 million, despite increased R&D and sales expansion, demonstrates improved operational efficiency. The projection of positive cash flow by Q4 2024 is ambitious but supported by current growth trends and new government contracts totaling $2.45 million.

The strategic acquisition of Volumex®, Megatope® and Glofil® should enhance margins and diversify revenue streams. However, investors should monitor the integration process and its impact on financials in the coming quarters.

Medical Research Analyst

Daxor's Blood Volume Analysis (BVA) technology is gaining significant traction in the medical community. The expansion to new facilities, particularly in cardiac care, indicates growing clinical acceptance. The launch at the largest integrated network in the Mid-South is a notable achievement that could lead to further adoptions.

The development of a next-generation point-of-care analyzer, pending FDA approval, could be a game-changer. With 3x faster results and bedside capabilities, it has the potential to dramatically increase utilization and market penetration in both inpatient and outpatient settings.

Recent studies demonstrating BVA-100™'s benefits in ambulatory heart failure patients strengthen its scientific foundation. This could lead to expanded indications and broader adoption, potentially opening new revenue streams for Daxor.

Government Contracts Specialist

The securing of $2.45 million in government contracts is a significant development for Daxor. The $1.9 million U.S. Air Force contract for next-generation tracer system development and the $550,000 Defense Health Agency contract for enhancing the point-of-care analyzer demonstrate strong government interest in BVA technology.

These contracts not only provide immediate revenue but also validate the technology's potential in military and civilian applications. The 24-month revenue flow from these contracts offers a stable income stream and could lead to larger, long-term government partnerships.

Investors should view these contracts as both a revenue source and a potential catalyst for future growth in government and related civilian markets.

Oak Ridge, TN, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Daxor Corporation (Nasdaq: DXR), the global leader in blood volume measurement technology, today provides a mid-year corporate and financial update in a Letter to Shareholders from CEO and President Michael Feldschuh.

Dear Valued Shareholders,

I am pleased to present our mid-year update for our unaudited first half results of 2024, highlighting Daxor Corporation's remarkable progress and financial performance. Our commitment to innovation in blood volume analysis (BVA) technology continues to drive growth and create value for our stakeholders.

Financial Highlights: I am thrilled to report that our financial position has strengthened significantly. Our Net Asset Value (NAV) has increased to $6.75 per share, up from $6.33 per share at this time last year. More impressively, our unaudited revenue for the first half of 2024 has more than doubled compared to the same period in 2023, marking a year-on-year growth exceeding 100%. This substantial increase is attributed to rising sales from existing customers and the addition of fourteen new accounts so far this year, already surpassing the twelve new accounts added in 2023.

Our Operating Division is making significant strides towards profitability. The net cash investment for the first half of 2024 was $1.297 million, a substantial reduction from $2.445 million in the first half of 2023. This improvement comes despite increased spending on sales expansion and R&D for our upcoming product launch, demonstrating our commitment to efficient capital allocation.

Looking ahead, we remain confident in achieving operational positive cash flow by the end of Q4 2024, driven by our commercial growth and newly awarded government contracts.

Expansion and Recognition: Our BVA technology continues to gain traction nationwide. Notable achievements include:

1. Launch of our BVA program at the largest integrated network in the Mid-South.
2. Expansion to three new facilities for cardiac care, reflecting growing momentum for our technology on the East Coast.
3. New hospital account at a leading Chicago hospital for heart failure and general cardiology care.
   

Government Contracts: We have secured additional significant government contracts validating the importance of BVA. The work on these contracts have begun as of August 1^st, and revenues from them will flow in the next 24-months:

1. $1.9 million contract from the U.S. Air Force for developing our next-generation tracer system.
2. $550,000 contract from the U.S. Defense Health Agency for enhancing our point-of-care blood volume analyzer.

These contracts not only provide funding, but also underscore the potential applications of our technology in both civilian and military settings.
Product Development: We continue to work closely with the FDA towards final approval of our next-generation point-of-care blood volume analyzer along the 510(k) pathway. This new system is three times faster than our existing model and capable of completing the diagnostic test entirely at the bedside. We anticipate this advancement will significantly increase utilization at existing accounts and accelerate the opening of new accounts across the country for both inpatient and outpatient use.

Strategic Acquisition: In a move to enhance our product offerings and improve margins, we acquired Volumex^®, Megatope^®, and Glofil^® from our existing supplier in March. This acquisition is expected to significantly improve our margins and drive increasing revenue through the introduction of new products to our growing customer base.

Research and Development: Recent studies have demonstrated the clinical benefits of our BVA-100^™ diagnostic in ambulatory heart failure patients for measuring congestion, further solidifying the scientific foundation of our technology.

Leadership Enhancement: We welcomed Dr. John L. Jefferies as our new Chief Medical Officer in April, bringing valuable expertise to our leadership team.

In conclusion, the first half of 2024 has been a period of substantial growth and achievement for Daxor Corporation. Our financial performance, technological advancements, and strategic moves have positioned us strongly for continued success. We remain committed to our mission of and look forward to building on this momentum in the second half of the year and beyond.

Thank you for your continued support and trust in Daxor Corporation.
Sincerely,

Michael Feldschuh
CEO & President, Daxor Corporation

About Daxor Corporation

Daxor Corporation (Nasdaq: DXR), is the global leader in blood volume measurement technology focused on blood volume testing innovation. We developed and market the BVA-100^® (Blood Volume Analyzer), the only diagnostic blood test cleared by the FDA to provide safe, accurate, objective quantification of blood volume status and composition compared to patient-specific norms. Over 65,000+ tests have been performed at leading hospital centers across the U.S., enhancing hospital performance metrics in a broad range of surgical and medical conditions, including significantly reducing mortality and readmissions in heart failure and critical care. Daxor has several ongoing trials in the areas of heart failure treatment with support from the NIH and is under contract developing analyzers to improve combat casualty care with the U.S. Department of Defense. Daxor's mission is to advance healthcare by enabling optimal fluid management with blood volume analysis. Daxor’s vision is optimal blood volume for all. For more information, please visit our website at Daxor.com. Sign up to receive news on Daxor’s innovative technology HERE.

Forward-Looking Statements

Certain statements in this release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation, statements regarding the impact of hiring sales staff and expansion of our distribution channels. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this release, including, without limitation, those risk associated with our post-market clinical data collection activities, benefits of our products to patients, our expectations with respect to product development and commercialization efforts, our ability to increase market and physician acceptance of our products, potentially competitive product offerings, intellectual property protection, FDA regulatory actions, our ability to integrate acquired businesses, our expectations regarding anticipated synergies with and benefits from acquired businesses, and additional other risks and uncertainties described in our filings with the SEC. Forward-looking statements speak only as of the date when made. Daxor does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations Contact:
Bret Shapiro
Sr. Managing Partner, CORE IR
1-516-222-2560
brets@coreir.com

FAQ

What was Daxor 's (DXR) revenue growth in the first half of 2024?

Daxor 's unaudited revenue for the first half of 2024 more than doubled compared to the same period in 2023, marking a year-on-year growth exceeding 100%.

How many new accounts did Daxor (DXR) add in 2024 so far?

Daxor added fourteen new accounts in the first half of 2024, already surpassing the twelve new accounts added in the entire year of 2023.

What government contracts did Daxor (DXR) secure in 2024?

Daxor secured a $1.9 million contract from the U.S. Air Force for developing their next-generation tracer system and a $550,000 contract from the U.S. Defense Health Agency for enhancing their point-of-care blood volume analyzer.

When does Daxor (DXR) expect to achieve operational positive cash flow?

Daxor expects to achieve operational positive cash flow by the end of Q4 2024, driven by commercial growth and newly awarded government contracts.

What strategic acquisition did Daxor (DXR) make in 2024?

In March 2024, Daxor acquired Volumex®, Megatope®, and Glofil® from their existing supplier to enhance product offerings and improve margins.