Earnings call transcript: Daxor Q4 2024 sees 116.5% revenue growth

Daxor Corporation reported a significant 116.5% increase in revenue year-over-year for Q4 2024, alongside achieving cash flow breakeven in Q1 2025. The company’s stock rose 3.6% following the announcement, reflecting investor optimism about its financial health and innovative product developments. According to InvestingPro data, the company maintains an impressive 100% gross profit margin, though analysts anticipate some sales decline in the current year. For deeper insights into Daxor’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

Key Takeaways

• Revenue surged 116.5% year-over-year, with continued growth in early 2025.
• Achieved cash flow breakeven in Q1 2025.
• Stock price increased by 3.6% post-announcement.
• Developing a next-generation blood volume analyzer.
• Expanded market presence with new accounts and increased kit sales.

Company Performance

Daxor Corporation demonstrated robust performance in Q4 2024, with revenue more than doubling compared to the previous year. The company also achieved a critical milestone by reaching cash flow breakeven in the first quarter of 2025, underscoring its financial stability. This growth is supported by innovative product developments and strategic market expansion efforts.

Financial Highlights

• Net assets as of December 31, 2024: $36.79 million ($7.25 per share).
• Net dividend income: $104,115.
• Net realized gains on investment securities: $1.36 million.
• Revenue: Increased 116.5% year-over-year.
• First two months of 2025 revenue more than doubled compared to the same period in 2024.

Market Reaction

Following the earnings announcement, Daxor’s stock price rose by 3.6%, closing at $7.77. This movement positions the stock closer to its 52-week high of $10, reflecting positive investor sentiment driven by strong revenue growth and strategic advancements. InvestingPro data shows the stock has experienced a YTD price return of -2.47%, with analysts setting a notable price target of $24.75, suggesting significant potential upside. The stock currently trades at a high earnings multiple, which investors should consider in their valuation analysis.

Outlook & Guidance

Looking ahead, Daxor plans to resubmit its next-generation blood volume analyzer for FDA approval, aiming for a 510(k) clearance. The company anticipates filing for a CLIA waiver later in 2025, expecting significant market interest in its new system. Additionally, Daxor aims to transition from a 1940 Act to a 1934 Act company designation, which could enhance its market positioning.

Executive Commentary

"Our mission quite simply is optimal blood volume for all patients," stated CEO Michael Feldshuh, emphasizing the company’s commitment to advancing diagnostic accuracy. He also noted, "Care teams fundamentally cannot effectively treat what they don’t accurately diagnose," highlighting the importance of Daxor’s innovative technology in improving patient outcomes.

Risks and Challenges

• Regulatory approval processes for new products could delay market entry.
• Limited current market penetration, with less than 1% of the potential market reached.
• The transition to a 1934 Act company may involve complex regulatory challenges.
• Competitive pressures in the fluid management diagnostics space.
• Dependence on continued reimbursement from public and private payers.

Q&A

During the earnings call, analysts inquired about Daxor’s financial investments in its operating division and the company’s strategy for maintaining cash flow positivity. Executives highlighted ongoing efforts to strengthen the sales team and leverage competitive advantages in the marketplace.

Full transcript - Daxor Corp (DXR) Q4 2024:

Natalie, Call Moderator/Operator, Daxor Corporation: Ladies and gentlemen, thank you for standing by. Good afternoon, and welcome to Redaxel Corporation conference call for the corporate update and financial results for the year 2024. At this time, all participants are in a listen only mode. After today’s presentation, there will be an opportunity to ask questions. To ask a question, press the Q and A button within this call.

During this call, management will be making forward looking statements, including statements that address Docsar’s expectations for future performance or operational results. Formal 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. The content of this call contains time sensitive information that is accurately only as of today, 03/06/2025. 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 the call over to CEO, Michael Feldshuh.

Michael Feldshuh, CEO, Daxor Corporation: Thank you very much, Natalie. Good afternoon to everyone on the call. Welcome to the Daxor twenty twenty five shareholder update call. We welcome all of our shareholders and guests. This call will be a chance for us to update everyone on our significant progress in 2024 and momentum going into 2025.

I will be introducing Bob Michel, our Chief Financial Officer. Following his remarks, Doctor. John Jeffries, our Chief Medical Officer will give his update on the company’s progress. And I will conclude with some remarks of my own speaking to some of the questions we receive in advance of this meeting. That concludes my opening remarks.

Now I’d like to turn the call over to Bob, our CFO, who will review our financial results at the Daxal corporate level in more detail. Bob?

Bob Michel, Chief Financial Officer, Daxor Corporation: Thank you, Michael. Good afternoon, everyone. And here is a summary of our 2024 financial results. As of 12/31/2024, Daxor’s net assets were $36,789,893 or $7.25 per share as compared to $34,010,384 or $7.08 per share at 12/31/2023. The increase in the net asset value is primarily due to the continued appreciation in value of the operating division.

The year ended 12/31/2024, Vaxor had net income net dividend income of $104,115 and net realized gains on investment security activity of $1,359,163 There was a net decrease in the unrealized appreciation on investments of $1,148,350 as we sold positions during 2024 that had prior periods significant unrealized gains unwound into the gains it realized in 2024. Included in the net asset the net increase in net assets resulting from operations of $553,926 is a non cash stock based compensation expense of $1,245,583 In an effort to provide incentive to employees, officers, agents and consultants, The company utilizes equity awards through either stock option or stock awards. There was a net investment in the operating division of $1,614,124 to continue its research and development, sales and overhead for our projected 2025 product launch and ramping the commercial sales team as well as production facilities for our next generation of blood volume analyzers and bringing in house the production of our Volumex product which is projected to be completed by the end of twenty twenty five. That concludes my summary of the financial results. Now I’d like to turn the call over to Doctor.

John Jeffries, our Chief Medical Officer, who will provide clinical updates. John?

Dr. John Jeffries, Chief Medical Officer, Daxor Corporation: Thank you, Bob. Good afternoon, everyone. It’s my pleasure to provide an update regarding our clinical efforts at Daxor. As you may have heard, I joined Daxor as a chief medical officer a few months ago. And although I recognize some of the potential for the company, I’ve been pleasantly surprised to confidently know that the potential is much greater than I appreciated.

We have penetrated less than 1% of the potential in the market. We continue to identify additional opportunities that only expand the market capitalization possibilities. We’ve experienced significant growth in multiple clinical areas including standard of care utilization, evidence generation and quality improvement efforts. We continue to expand in the new systems across The United States. We’ve added multiple academic institutions as partners but perhaps more importantly we have expanded significantly into community hospital systems.

Historically many of our partnerships have been with heart failure cardiologists. However, this only represents a very small fraction of the provider relationship opportunities that can be developed regarding the use of our technology. As such, we have developed strong functional relationships with other providers including general cardiologists, interventional cardiologists, structural cardiologists, nephrologists, hospitalists, intensivists, hematologists, endocrinologists, and primary care providers. These relationships have resulted in the broader use of BVA across multiple disciplines both in the inpatient and the outpatient setting. This has resulted in even greater opportunities for abstract generation and manuscript publication.

Perhaps more importantly, this broader use provides us with the real world data, which is what at the end of the day matters most to practitioners. The favorable impact of BVA has been realized across all these disciplines further underscoring the agnostic yet potentially transformative effect that BVA can have on patient care. The generation of real world data and additional peer reviewed publications is a key component just facilitating practice change for both inpatient and outpatient care. Collectively, these experiences have resulted in quicker initiation and broader adoption in different institutions. The use of BVA in different subspecialties also allows providers to initiate other impactful components of the test.

BVA is often leveraged for volume assessment. Obviously, the opportunity to realize euvolemia in clinical settings is invaluable for patient management regardless of their underlying diagnosis. However, with broader use, clinicians are now recognizing undiscovered red blood cell arrangements. In addition, the opportunity to phenotype leaky capillaries is unique to BVA testing and this information can dramatically change the course of critically ill patients. Now that clinicians understand that this information is available in one report, The full impact of BVA on clinical care is becoming more commonplace and widespread.

We have also expanded our messaging and partnerships to other components of the care team such as nurse practitioners and physician assistants. This represents yet another group of partnerships that we are actively pursuing and successfully developing. In short, 02/2024 was a highly productive year for us. I have every confidence that 2025 will hold even greater promise and better results for Daxor both financially and clinically. I’ll now turn it back over to Michael, for further discussion.

Michael Feldshuh, CEO, Daxor Corporation: Thank you very much, John. Very impactful statements and obviously very, very nuanced and important in the breadth that you have for being able to transmit the considerable clinical value of our technology. Speaking more broadly about Daxor and where we’re at, as we forge ahead into what we consider really a pivotal year, Daxor remains laser focused on our mission. We are unwavering in our pursuit of our strategic goals. We’re fueled by a relentless determination for not only transformative growth of the company, but also widespread adoption of our technology.

As you just heard from John, twenty twenty four was a remarkable year for the company solidifying our position as the global leader in blood volume technology. In every year during 2024, and we’ve had a really strong start to 2025, I’m pleased to report that there’s been substantial progress for the company in revenue growth, new customer acquisitions, increasing utilization of our products by existing customers, strategic agreements to acquire a key supplier, next generation systems under Food and Drug Administration review, positive clinical trial results, patents pending and granted successful NIH grant awards, DOD contracts awarded, and further R and D for groundbreaking products set to launch in subsequent fiscal years. So we have a very rich and robust pipeline. I’ll go into more detail in these areas, but first I wanna review for those who are new to the story of the company, what our company’s mission and vision is to commercialize these products so that we can enable optimal patient care around blood volume management, which is so vital for all. Our mission quite simply is optimal blood volume for all patients.

Daxor is focused on profoundly improving outcomes for the tens of millions of patients as well as the hospital systems and the payers which support that system by solving a central problem of medicine. How to provide highly accurate, convenient and rapid knowledge of a patient’s blood volume. This is a key problem in medicine, both on the inpatient and outpatient side. Managing blood volume is the cornerstone of care for some of the largest areas of medicine. We’re talking about heart failure, sepsis, post surgical blood loss, and syncope to site, but a few.

This urgent medical need has long been hampered by the use of proxy or surrogate markers, not direct measurement of blood volume. Many of these markers are costly, some are invasive, none are accurate in contrast to Daxor’s proven 98% accurate system. Care teams fundamentally cannot effectively treat what they don’t accurately diagnose. So our accurate rapid system is a game changer. Every metric that matters is impacted from the first principle of an accurate diagnosis.

Patients receive optimal care are treated more quickly. They have better outcomes. They stay for a shorter length of time in the hospital. They suffer fewer costly readmissions and have lower mortality and fewer complications overall. This leads to better results for patients, hospitals, and insurers both on a health and a health economic level as well as substantially improving the quality of life for these patients.

Here are some of the operating company financial highlights. Bob earlier spoke about the corporate parent level highlights. Now Daxwell reports as a nineteen forty act reporting company with consolidated highlights. So all of the, operating company results that I’m sharing below come from an unaudited report from our own internal accounting systems. The following financial highlights for the operating division, I’m pleased to report that we met our goal from last year, twelve months prior of achieving a cash flow breakeven during the first quarter of twenty twenty five, not including costs related to stock based compensation, depreciation, amortization, or CapEx.

Revenue in our operating company increased 116.5 percent year on year from 2024 versus the prior year of 2023. Revenue in the first two months of 2025 is over 100% higher than the same two months in 2024. So our momentum and growth substantially continues year on year on year. The number of kits sold in our diagnostic system rose 60.1% year on year for 2023. Our similar growth was, about 37% in the prior year.

So the number of kits sold is increasing rapidly as is obviously the revenue. We signed 12 new accounts in 2024, including five who purchased our analyzer systems. The balance of new accounts were either rentals or leases or the use of our EZBVA lab services. Three new accounts have already been signed in the first two months of twenty twenty five. Again, with a combination of placement agreements in EZBBA lab services.

The operating company increased revenues from the second half of twenty twenty four through additional contracts from the US Department of Defense. We received a $2,500,000 contract as matching funds award from our capital raise in 2023. That contract pays out on a monthly basis over its two year duration. Additional funding awards were achieved from Launch Tennessee and the National Institutes of Health in the form of direct grants totaling more than $350,000 alone in the second half. Again, some of those awards pay out over 2024 and into 2025.

So we have not realized the revenue from them completely yet. Additional funding awards, are really an excellent source of non dilutive funding for the company obviously. The FDA reviewed the five ten ks submission for our next generation analyzer that we submitted at the end of twenty twenty three until the beginning of twenty twenty four. We received, we filed a dual submission, which was a five ten ks submission for both five ten ks and clear determination. After working extensively with the FDA, we determined and receiving feedback from them, we determined that we wish to withdraw and resubmit that as a sequential package.

We, I’m pleased to share have successfully completed the additional testing data that FDA asked for, in our labs. And we will be imminently submitting that five ten ks submission for its statutory ninety day review period. Daxor also last year entered into an agreement to acquire the IP from a key supplier to bring manufacturing entirely in house for our Volumax kits and added an additional radio pharmaceutical to our product suite in the form of GloPhil, which is a kidney function marker. The first two the first two months of twenty twenty five, as I just said, are off to an even faster pace of growth, versus 2024. And we are continuing to see an acceleration of adoption and use of our systems even prior to the launch of our next generation systems.

February itself was a record setting sale of monthly kit revenue. And I’m very pleased about these results I would just like to add because when we made our forecast twelve months ago that we would reach operational, cash flow breakeven within the operating company, We anticipated that that would be fueled by the approval and adoption of our next generation analyzers. I’ll speak more about that in a moment. We were still able to achieve that financial goal even without that system being there. Highlighting the substantial value that is, already inherent within our existing product suite of offerings.

Now regarding the next generation blood volume analyzer, DAX were completed a multicenter study to validate its next generation analyzer. First, we, validated it for The US Department Of Defense, which paid largely for the, development of this analyzer system. And then we did a multicenter study to validate it in, which was completed in Q4 of twenty twenty three and submitted to the FDA under the five ten ks clinical laboratory movements amendment or the CLIA pathway. Following the statutory six month review for that dual submission pathway last year, FDA requested additional data to supplement the application. DACs were elected to refile this submission as a single five ten ks for a ninety day review pathway with the intention to follow separate CLIA in the study in the future.

I’d like to add that none of the supplemental data that was requested by the FDA in management’s opinion was material or related to the question of the accuracy of the equipment itself. There’s an extensive amount of data that is required to satisfy the FDA’s various different statutory regulations around the approval of a device. So much of this we consider supplemental and non core information. Nevertheless, necessary to provide to the agency. In electing to have a single pathway sequential sequence.

In other words, first to get the five, ten ks and then later to get the CLIA. This pathway is advantageous because it allows for a simpler and significantly time reduced pathway towards getting an approved and saleable product for us. With these supplemental studies now complete as I just mentioned, Daxone tends to file this new application imminently. This application is really a follow on to what’s already been reviewed by the FDA. This point of care blood volume analysis system developed, as I said, under multiple contracts with the US Department of Defense, as well as grants from the National Institutes of Health is a significant leap forward in our market leading technology.

It allows for the determination of blood volume at the point of care or the bedside in as little as fifteen minutes. New system has been validated in our study to be as much as three times faster, simpler, battery powered and capable of being a full point of care CLIA waived device. Although as I said, a CLIA study will need to be followed to get that waiver. Daxler intends to first secure the five ten ks approval for the device to market at its current CLIA designation of modern complexity. And in a second developmental phase later this year, submit a CLIA study to show that it is eligible for the CLIA waived designation.

For us, it’s no exaggeration to say that this next generation analyzer is our most important product launch in twenty years and has the potential to deliver a level of speed, access, accuracy, and convenience to fluid management that can broadly change medicine and find acceptance into workflows at a much greater level than our current lab based system. Management anticipates that upon approval, there will be significant interest and uptake to the new system based upon preliminary discussions with clinicians helping to develop the technology as well as an increase in disposable kit sales driven by the speed and convenience of the new system. The speed and convenience of the new system will open additional points of use in the hospital and outpatient settings. Some Paramount should see significant growth as a result as well as other verticals within the hospital system. Daxor’s next generation devices will also be eligible for phase three funding awards and acquisition by branches of the military for their deployment to aid in combat casualty care as well as further developmental contracts.

It would be an honor for the company to help in the sphere of military medicine and combat casualty care. Strategic acquisition and new product launch of an additional diagnostic radiopharmaceutical is also, part of Daxor’s strategic plan for 2025. When we entered into this definitive agreement in March of twenty four to acquire the exclusive worldwide rights and IP to manufacture Molemax and Megatope from Isotex Diagnostics, we also received the rights to a second radiopharmaceutical drug Glofield that measures columnar filtration rate. These acquisitions are expected to be immediately cash flow positive and accretive earnings due to internalized production and higher margins. Daxor plans to bring the manufacturer of these diagnostics in house at its Oak Ridge facility, which will increase margins on its blood volume analysis test kits.

Acquiring Global provides Stacks with a new product cross sell to its growing customer base, particularly in hospitals where GloFlo is already used. The deals are structured with favorable seller provided financing with payments not due until the manufacturing transition is completed in six to nine months, followed by monthly installments over a two year period. This transaction is subject to regulatory approvals and other customary conditions. For the research patents and clinical outcomes, I can speak to the fact that from Q1 of twenty four through the first two months of twenty five, research utilizing BVA has appeared to more than a dozen peer reviewed conferences or publications as Doctor. Jeffries alluded to.

The data has highlighted the increasing utility of BVA and cardiorenal syndrome uncovering off misdiagnosis in heart failure patients and the superiority of BVA versus commonly used proxy measures. It’s a key strategy of the company to continue our efforts to encourage not only the clinical use, also the academic study of the health and health economic outcomes related to the use of blood volume analysis technology. At the root of better outcomes is the best diagnosis of patient. Something that BVA has been shown to be uniquely capable of. In closing summary, I will say that the strong trend of healthcare is towards individualized care and cost effectiveness.

We live in a value based world. Our BVA diagnostic is a non invasive relatively inexpensive and rapid blood test which allows care teams to solve one of the most significant and challenging problems in medicine which is how to accurately manage the fluid levels of patients in a wide variety of settings as I’ve alluded to. Reducing mortality, lowering complications, reducing hospital resource use and length of stay with a non invasive and 98% accurate test is achievable with our patented technology as well as optimizing care of patients in the outpatient setting. In the competitive areas of healthcare having achieved reimbursement for technology from both public and private payers is a strong competitive advantage that we have achieved. In addition to the increasing clinical evidence and the commercial potential of what we’ve developed.

Just as exciting is the next generation of products that are in development pipeline slated for completion this year, which I’ve alluded to, which should further enhance accessibility of our test and open up to both government as well as civilian hospital systems on an international scale. Note, Daxor has been reporting as an investment company under the Investment Company Act of 1940 since January first of twenty twelve. See the notes to our financial statements on the form and CSR for further information on Daxor’s strategies and goals relating to its investments in publicly traded securities, help fund its diagnostic operations. Because of its holding publicly traded securities, the SEC currently classifies Daxor as a closed end management company with a fully owned medical operating division. However, primary focus of management is on our operational objectives.

Daxor anticipates that as the value of the operating company has significantly increased as reflected in our financial statements relative to the percentage of listed securities owned, which has fallen as is also reflected in our financial statements that we should be able to file under our prior 1934 act designation as an operating company. The goal for management is to secure this designation before the end of twenty twenty five, and we are in active discussions with the Securities and Exchange Commission around how to affect the filing change. One question that’s often asked amongst many questions that have been given is why are Daxor’s shares trading at what seems to be a relatively modest valuation or discount to fair market value. Management believes that with the common transparency of our reporting, meaning from the transition from a 1940 to a 34 act company and the milestones for our next generation systems and the continued momentum around revenue growth and adoption of our systems, the valuation of the company may start to reflect the tremendous value and market potential of our diagnostic, which has broad utility in over seven million heart failure patients in The U. S.

Alone, as well as several million patients in the critical care and surgical space and several more million patients who have various different ambulatory conditions such as syncope and POTS many other conditions which would all benefit significantly from the use of BVA. So with that being said, I wish to enter the chat to see if there is any Q and A that we can answer. Alright. I don’t see any additional questions. We tried to speak to a number of questions that we received prior to the call.

One additional question that I will speak to is there was a question that was submitted to us, around our financial statements. It said there was an investment of $1,614,124 into the operating division relating to spending on research, development and sales overhead. This is a near exactly, what is reported in the realized loss in operating division. Does this realized loss amount include CapEx? Does it include spending on inventory?

The answer to both of those questions is yes. So the company parent at the parent level did transmit $1,600,000 to the operating company to cover capital expenditure, inventory build, research and development, in addition to the various, other operations of the operating division. So, we don’t break out due to our consolidated filing status as a nineteen forty’s act company. The delineation between all of these various different categories. So that audited result is a cat as a net cash transfer between the two.

As we stated, earlier, in the first two months of twenty twenty five, net of CapEx, depreciation, amortization and shareholder and share based compensation expense, our operating company has been operating in a cash flow positive state. So we’re quite happy about that and it’s been driven substantially by the significant revenue growth and the increase in pricing which the company has been able to achieve. Let’s see if there’s any additional questions to speak to. Okay. Can you speak to your efforts to build a sales team to drive the placement of the device?

We continue to build our commercial teams. We think that they’re quite competitive and we’ve seen very effective growth within that area. We’ve been able to realize substantial value from communicating to our various different customers based upon the strength of our unique technology. And of course, the really deep results that have been associated with guiding care. So we are going to continue to build for a combination of internal hires and then potentially distributor agreements with third parties as well.

Looking at the questions, please discuss the competitive landscape. I believe that the competitive landscape in The United States and globally around the care of volume management is focused largely on a number of indirect proxy measures, many of which are, as I stated earlier, not particularly accurate or effective at managing care. Daxor has been able to pioneer a far more accurate gold standard method of directly measuring volume as well as capillary wall permeability. And we believe that it leads to a substantial amount of competitive advantage for us. That concludes the calls that we have now and the time that we have for questions.

I will turn it over to Natalie. Let me see. Okay. Thank you very much. So in conclusion, I would like to thank all of the shareholders for their continued support.

We look forward to sharing additional accomplishments and developments as they unfold. Thank you all for participating in today’s call, for your interest in Daxor. We wish you all a very good day. Thank you.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.