Daxor Corporation (NASDAQ:DXR) Q4 2023 Earnings Call Transcript

Daxor Corporation (NASDAQ:DXR) Q4 2023 Earnings Call Transcript March 25, 2024

Daxor Corporation isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to the Daxor Corporation Conference Call for the Corporate Update and Financial Results for the Year 2023. At this time, all participants are in a listen-only mode. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] During this call, management will be making forward-looking statements, including statements that address Daxor’s expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in Daxor’s most recently filed annual report on Form N-CSR and subsequent periodic reports filed with the SEC and Daxor’s press release that accompanies this call, particularly the cautionary statements in it.

These reports are available on daxor.com. The content of this call contains time-sensitive information that is accurately only as of today, March 25, 2024. Except as required by law, Daxor disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn this call over to CEO and President, Michael Feldschuh.

Michael Feldschuh: Thank you, Natalie (ph), and good afternoon, everyone, and welcome to the Daxor Annual Shareholder Call. I would like to turn the floor over to our Chief Financial Officer, Robert Michel for some highlights from our financial performance. Bob?

Robert Michel: Thank you, Michael, and good afternoon, everybody. Here’s a summary of our fiscal 2023 financial results. For year ended December 31, 2023, Daxor’s net assets increased 17.4% to $34,10,384 or $7.08 per share as compared to $28,969,469 or $6.75 per share at December 31, 2022. Valuation of the operating division increased $6 million to $32 million at December 31, 2023, from $26 million at December 31, 2022. The increase during 2023 is based on an annual independent valuation performed for the year ended December 31, 2023, utilizing a hybrid of methods of the income approach using the discounted cash flow method and the market approach realizing recent arm’s length transactions. In 2023, $464,599 Daxor treasury shares were sold in a price of $9.75.

The discounted cash flow realized 35% of this weighting on the income approach and utilize 65% weighting on the market approach. For year-end December 31, 2023, Daxor had net dividend income of $157,378. Net realized gains on investment of activity of $603,774. There was a decrease — a net decrease in the unrealized depreciation on investments of $885,199 as we sold long-held positions during the year 2023 and from which prior year’s significant unrealized gains unwound into realized gains for the period. Included in net – net increase in net assets resulting from operations of $280,640 is a non-cash stock-based compensation expense of $631,701. In an effort to provide incentive to employees, officers, agents and consultants to the company we utilize stock-based incentive awards.

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Q&A Session

Daxor invested $4,552,380 in the operating division relating to our continued investments in research, development, sales, overhead as the company continues to invest judiciously in research and development for our anticipated 2024 product launch, ramping the commercial sales teams as well as production facilities for our next-generation blood volume analyzers. That concludes my summary of the financial results. And now, I’d like to turn the call back to Michael. Thank you.

Michael Feldschuh: Thank you, Bob. I appreciate it. So I’m going to give a general update on the company. A number of investors and other interested parties have thoughtfully submitted series of questions for me to address after that in addition, it’s possible to type in questions that you wish to the moderator, who can then pass them on to me. Unfortunately, due to the very large volume of questions that we’ve received and the time allotted for this, I can’t get to every single person’s question, but I will try to cover a lot of ground and hopefully, that will satisfy people’s need for more details. So let’s just start at the top. This is an incredibly exciting time for Daxor right now. A number of different things were all converging, things that we’ve been working on for years, things that are critical to our development as a company, as an ongoing concern as a company that’s committed to changing the arc of health care and specifically to solving one of the largest challenges in medicine, which is specifically that of effective blood volume management to enable optimal care.

So I’ll just start by saying that we, as a company and have never been more focused on our mission and our goals than we are right now. Every team member at Daxor sees both remarkable strides that we’re making in these different areas, and I’m going to go into those details in a moment. And we really feel that we are solidifying our position not only as the global leader in terms of blood volume measurement technology but we’re rapidly seeing just how fast this market is and the promise of what our rapid expansion means both for the company and for the potential for serving the tens of millions of patients that exist in the market globally that would all benefit from having care optimized through better blood volume measurement. For 2023, we’ve seen a very strong start continued growth of our revenues from 2022 to 2023 and into the start of 2024, and I’m going to go into more details on that as well.

We’ve been able to hit a number of key milestones and objectives from last year, including submitting our next-generation blood volume analyzer for consideration under the 510(k) approval process with the FDA, something that we did at the end of Q4. We’ve received a number of new patents, and those are very important as we have a growing family of patents around our technology, which will protect our lead in the marketplace for years. We have a number patents pending as well. We’ve been the recipient of awards from both the National Institute of Health and further contract awards from the U.S. Department of Defense, which are not only wonderful or their non-dilutive funding but also because they are such a strong validation of the value of our technology and the importance of the problem that we’re solving and the effectiveness of the solution that we present.

So with that being said, why don’t I dive into a little bit more about what we’re doing. Briefly, I’ll say that blood volume measurement is a key indicator that is essential for improving and optimizing patient care. While not all investors are familiar with why that is such a vital sign, I’ll briefly just explain that while the pressure and the temperature of a patient’s blood can be easily determined, even the ratio of red cells to plasma can be easily ascertained. Knowing the and quantitating the actual total amount of blood that a patient has, has been one of the major challenges in modern medicine. And Daxor has a 98% accurate gold standard method of solving this problem. And the reason why that matters is because blood volume is vital for improving patient outcomes.

Every single intervention in medicine that involves a transfusion that involves the use of a diuretic evolve some kind of supportive fluid management decision is really a blood volume management question. And the problem has been that while we’ve had a wide variety of interventions to guide blood volume, and that’s necessary, obviously, in areas like things that come to mind like critical care, but it’s also the cornerstone for example, of management of things like heart failure. And then also things like syncope and parts and hyponatremia and chronic fatigue syndrome. The list just goes on and on where volume is actually a central question of the management of the patient. There’s been a lot of management of patient care, but without effective measurement of the patient’s actual volume.

So management without effective measurement has been that there’s been a lot of really suboptimal outcomes for patients. And that has a profound implication for patients both with chronic conditions and acute conditions that require them to be hospitalized. It involves patients on an inpatient side, meaning hospitalized patients and it also involves the management of patients on an outpatient setting as well. So when you look at the vast number of patients that are having some kind of volume management intervention in their care, and that includes not only the 6 million people with heart failure, 1 million of whom will be hospitalized this year, one in five patients will die from heart failure. That’s how pervasive that problem is one of the leading causes of death in the United States.