SECURITIES AND EXCHANGE
COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Under
Section 13 or 15(d)                                                                of the
                                                       Securities Act of 1934 FOR QUARTER ENDED
SEPTEMBER 30, 2004                                                    Commission File
Number 0-12248 DAXOR CORPORATION (Exact Name as
Specified in its Charter) New York
(State or Other Jurisdiction of
Incorporation or Organization)
        13-2682108
(I.R.S. Employer
Identification No.)  350 Fifth Ave
                                                             Suite 7120
                                                      New York, New York 10118 (Address of Principal
Executive Offices & Zip Code) Registrants Telephone Number:
(Including Area Code)
        (212) 244-0555  Indicate
by check mark whether the registrant  (1) has filed all reports  required by Section 13
or 15(d) of the Securities Exchange  Act of 1934 during the  preceding  12 months (or for
such  shorter  period that the  registrant  was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes |X|
        
        No |_|  Indicate
the number of shares  outstanding of each of the issuers  classes of common stock,  as
of the latest  practicable date. CLASS
     
     OUTSTANDING AT September 30, 2004COMMON STOCKPAR VALUE: $.O1 per share
     4,610,826    PART I.
     
     
     FINANCIAL INFORMATIONITEM 1.
     FINANCIAL STATEMENTSPageConsolidated Balance Sheets as at September 30, 2004 andDecember 31, 2003
     F-1Consolidated Statements of Income for the Three and Nine Monthsended September 30, 2004 and 2003
     F-2Consolidated Statement of Cash Flows for the Nine Monthsended September 30, 2004 and 2003
     F-3Notes to Financial Statements
     F-4&5ITEM 2.
     Managements Discussion and Analysis of Financial Conditionand Results of Operations
     3-4PART II.
     OTHER INFORMATIONITEM 1.
     Legal Proceedings
     4ITEM 2.
     Exhibits and Reports on Form 8-k
     4Signatures
     5-7Exhibit Index
     4-7
DAXOR CORPORATION
                                                 FINANCIAL STATEMENTS



DAXOR CORPORATION
CONSOLIDATED BALANCE SHEETS (UNAUDITED)


September 30,
2004
     
     December 31,
2003ASSETSCURRENT ASSETSCash
     $64,107
        
     $3,324Marketable Securities at Fair ValueSeptember 30, 2004 and  December 31,2003. (Notes 1 and 2)
     51,134,384
        
     47,399,159Accounts receivable
     177,756
        
     137,008Other current assets
     427,039
        
     388,400Total Current Assets
     51,803,286
        
     47,927,891EQUIPMENT AND IMPROVEMENTSStorage tanks
     125,815
        
     125,815Leasehold improvements, furnitureand equipment
     952,612
        
     931,468Laboratory equipment
     291,571
        
     291,5711,369,998
        
     1,348,854Less: Accumulated depreciation and amortization
     1,081,111
        
     1,045,481Net equipment and improvements
     288,887
        
     303,373Other Assets
     69,268
        
     69,268Total Assets
     $52,161,441
        
     $48,300,532LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESAccounts payable and accrued liabilities
     $101,280
        
     $183,052Loans payable (Notes 1 and 2)
     4,394,365
        
     2,502,106Other Liabilities
     565,127
        
     667,123Deferred Taxes (Note 1)
     9,523,003
        
     8,531,081Total Liabilities
     14,583,775
        
     11,883,362SHAREHOLDERS EQUITYCommon stock, par value $.01 per share:Authorized 10,000,000 shares: issued andoutstanding shares 4,610,826 September 30,2004 and 4,640,026 December 31, 2003
     53,097
        
     53,097Additional Paid in capital
     9,808,526
        
     9,801,548Net unrealized holding gainson available-for-sale securities (Note 1)
     18,485,830
        
     16,560,334Retained earnings
     14,869,302
        
     15,169,967Treasury stock
     (5,639,089
        )
     (5,167,776
        )Total Shareholders Equity
     37,577,666
        
     36,417,170Total Liabilities and Shareholders Equity
     $52,161,441
        
     $48,300,532See accompanying notes to
financial statements


(F-1)



DAXOR CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)


THREE MONTHS ENDED
September 30,
     
     NINE MONTHS ENDED
September 30,2004
     
     2003
     
     2004
     
     2003REVENUES:Operating revenues
     $277,975
        
     $301,816
        
     $940,958
        
     $810,910Other revenues
     3,817
        
     3,143
        
     11,103
        
     11,429Dividend income
     516,525
        
     527,591
        
     1,483,325
        
     1,438,232Gains (losses) on saleof securities
     321,232
        
     71,633
        
     747,928
        
     152,896Total Revenues
     1,119,549
        
     904,183
        
     3,183,314
        
     2,413,467COSTS AND EXPENSESOperations of Laboratories &Cost of Production
     298,281
        
     463,432
        
     1,015,329
        
     1,144,374Selling, General, andAdministrative
     842,582
        
     596,638
        
     2,379,960
        
     1,891,992Interest expense, net ofinterest income
     34,979
        
     25,012
        
     66,955
        
     58,594Total Costs and Expenses
     1,175,842
        
     1,085,082
        
     3,462,244
        
     3,094,960Net Income (Loss) BeforeIncome Taxes
     (56,293
        )
     (180,899
        )
     (278,930
        )
     (681,493
        )Provision for income taxes
     2,675
        
     (858
        )
     21,735
        
     20,787Net Income (Loss)
     $(58,968
        )
     $(180,041
        )
     $(300,665
        )
     $(702,280
        )Weighted Average Numberof Shares Outstanding
     4,610,493
        
     4,645,826
        
     4,619,048
        
     4,649,347Net Income of (Loss) perCommon Equivalent Share
     $(0.01
        )
     $(0.04
        )
     $(0.06
        )
     $(0.15
        )See accompanying notes to
financial statements


F-2



CONSOLIDATED STATEMENTS
OF CASH FLOWS (UNAUDITED) FOR THE NINE MONTHS ENDED


September 30,
2004
     
     September 30,
2003CASH FLOWS FROM OPERATING ACTIVITIESNet income or (loss)
     $(300,665
        )
     $(702,280
        )Adjustments to reconcile net income(loss) to net cash provided byoperating activities:Depreciation & Amortization
     35,630
        
     36,644(Gain) loss on sale of investments
     (747,928
        )
     (152,896
        )Basis of leased equipment sold
     
        
     45,000Change in assets and liabilities:(Increase) decrease in accounts receivable
     (40,748
        )
     (69,546
        )(Increase) decrease in other current assets
     (38,639
        )
     (8,156
        )Increase (decrease) in accounts payable,  accruedand other liabilities net of short sales
     (76,872
        )
     87,392Total adjustments
     (868,557
        )
     (61,562
        )Net cash provided by or (used in) operating activities
     (1,169,222)
        
     (763,842
        )CASH FLOWS FROM INVESTING ACTIVITIES:Payment for purchase of equipment andimprovements
     (21,144
        )
     (40,465
        )Net cash provided or (used) in purchaseand sale of investments
     (733,345
        )
     (548,032
        )Net proceeds (repayments) of loans frombrokers used to purchase investments
     1,292,259
        
     1,074,864Proceeds from short sales not closed
     556,570
        
     285,766Net cash provided by or (used in) investing activities
     1,094,340
        
     772,133CASH FLOWS FROM FINANCING ACTIVITIES:Receipt / (repayment) of bank loan
     600,000
        
     200,000Payment for purchase of treasury stock
     (474,335
        )
     (199,370
        )Proceeds from sale of treasury stock
     10,000
        
     30,736Net cash provided by or (used in) financing activities
     135,665
        
     31,366Net increase (decrease) in cash and cash equivalents
     60,783
        
     39,657Cash and cash equivalents at beginning of year
     3,324
        
     13,035Cash and cash equivalents at end of period
     $64,107
        
     $52,692See accompanying notes to
financial statements


F-3



DAXOR CORPORATION
                                             NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
                                           NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003


In
the opinion of the Company,  the accompanying  unaudited  financial  statements  contain
all adjustments  (consisting of only normal recurring accruals)  necessary to present
fairly the financial position as of September 30, 2004,  and December 31, 2003, the
results of operations  for the three and nine months ended  September 30,2004 and 2003
and cash flows for the nine months ended September 30, 2004 and 2003.


(1)  MARKETABLE SECURITIES


Upon
adoption of FASB No. 115, management has determined that the companys portfolio is best
characterized as Available-For-Sale.  This has resulted in the balance sheet carrying
value of the companys marketable securities investments, as of September 30, 2004 and
December 31, 2003 being increased approximately 121.12 % and 112.48% respectively over
its historical cost.  A corresponding increase in shareholders equity has been
effectuated.  In accordance with the provisions of FASB No. 115, the adjustment in
shareholders equity to reflect the companys unrealized gains has been made net of the
tax effect had these gains been realized.


The
following tables summarize the companys investments as of:



September 30, 2004Type of
security
     Cost
     
     Fair Value
     
     Unrealized
Holding gains
     
     Unrealized
holding lossesEquity
     
     
     $23,049,649
        
     $51,104,834
        
     $28,402,153
        
     $346,968Debt
     75,902
        
     29,550
        
     3,370
        
     49,722Total
     $23,125,551
        
     $51,134,384
        
     $28,405,523
        
     $396,690December 31, 2003Type of
security
     Cost
     
     Fair Value
     
     Unrealized
Holding gains
     
     Unrealized
holding lossesEquity
     
     
     $22,271,842
        
     $47,368,871
        
     $25,407,422
        
     $310,393Debt
     35,902
        
     30,288
        
     2,170
        
     7,784Total
     $22,307,744
        
     $47,399,159
        
     $25,409,592
        
     $318,177At
September 30, 2004 the securities held by the Company had a market value of $51,134,384
and a cost basis of $23,125,551 resulting in a net unrealized gain of  $ 28,008,833 or
121.12% of cost.


At
December 31, 2003, the securities held by the Company had a market value of $47,399,159
and a cost basis of $22,307,744 resulting in a net unrealized gain of $25,091,415 or
112.48% of cost.


At
September 30, 2004 and December 31, 2003 marketable securities, primarily consisting of
preferred and common stocks of utility companies, are valued at fair value.


F-4



(2)  LOANS PAYABLE


As
at September 30, 2004 and December 31, 2003, the Company had loans outstanding
aggregating $1,500,000 and $900,000 borrowed on a short term basis from a bank, which are
secured by certain marketable securities of the Company.  The loans bear interest at
approximately 3%.


Short
term margin debt due to brokers, secured by the Companies marketable securities, totaled
$2,894,365 at June 30, 2004 and $1,602,106 at December 31, 2003.



F-5



MANAGEMENTS DISCUSSION
AND ANALYSIS                                            RESULTS OF OPERATIONS AND
FINANCIAL CONDITION


ITEM 2.


RESULTS OF OPERATIONS


Three months ended
September 30, 2004 as compared with three months ended September 30, 2003.


For
the three months ended September 30, 2004 total revenues were $1,119,549 up from $904,183
in 2003.  Operating  revenues were $277,975 in 2004 down from $301,816 in 2003.  Dividend
 income was $516,525 with a net interest  expense of $34,979 in 2004, as compared  to
 dividend  income of  $527,591  with a net  interest  expense of $25,012 in 2003.  In
2004,  the Company had a net loss before  income  taxes of $(56,293)  versus a net loss
before  income taxes of  $(180,899)  in 2003.  Total cost and Expenses in 2004 increased
to  $1,175,842  vs.  $1,085,082  in 2003.  This was related to increased  marketing
 efforts and research and  development expenses.  The Company has increased  research
expenses for additional  features to the BVA-100.  Operating revenues decreased by 9%
from the  comparable  quarter in 2003.  The Companys new sales team began  marketing in
the fourth quarter of 2003. The increase in operating  revenues can be  attributable  to
these sales  efforts.  The sales  cycles from initial  contact to a sale can be 6 to 12
months.  As part of its sales and  marketing  expansion,  the company will lend, it no
cost,  for a limited time period,  or rent an instrument  for a period of one year or
less to a hospital for testing  purposes.  Under such an  arrangement  the company will
only receive  rental  income for the  instrument  and income  from the sale of kits.  The
Company  anticipates  that its sales of BVA-100 Blood Volume  Analyzers and kits will
become the major source of income for the Company.  The Company is currently in the
process of expanding its sales and marketing force.


Nine months ended
September 30, 2004 as compared with nine months ended September 30, 2003.


For
the nine months  ended  September  30, 2004 total  revenues  were  $3,183,314  up from
 $2,413,467  in 2003.  Operating revenues in 2004 were  $940,958  up from  $810,910 in
2003.  Selling  and  administrative  expenses  were  $2,379,960  in 2004,  vs. $1,891,992
 in 2003.  The  increased  expenses  were related to the  employment  of  additional
 sales and  marketing  personnel and increased  research and development.  In 2004,
 Dividend income was $1,483,325 with a net interest expense of $66,955 as compared to the
dividend  income of  $1,438,232  with a net interest  expense of $58,594 in 2003.  In
2004,  the Company had $747,928 in capital gains vs.  $152,896 in 2003. In 2004,  the
Company had a net loss before  income taxes of  $(278,930)  versus a net loss of $(681,493)
before  income taxes in 2003.  The Company has adopted a policy that  encourages  leasing
or renting of BVA-100  equipment to enable hospitals to obtain the equipment. This
results in sales of kits but a slower recognition of operating income from BVA sales.


LIQUIDITY AND CAPITAL
RESOURCES


At
September 30, 2004 the Company had total assets of $52,161,441  with  shareholders
 equity of $37,577,666.  The Company has a net pre-taxed  unrealized gain of $28,008,833
and $18,485,830 of net after tax unrealized capital gains on  available-for-sale
securities  in its  portfolio.  This amount is included in the  calculation  of Total
 Shareholders  Equity.  The  Companys  stock portfolio had a market value of
$51,134,384  with short-term  loans of $ 4,394,365 with 4,610,826  shares  outstanding.
 The Company has no long term debt.  The Company has current  liabilities of
 $14,583,775.  Included in these  liabilities  are deferred taxes of $9,523,003.  These
deferred taxes would occur if the Company chose to sell its entire  portfolio.  Current
 liabilities  minus these deferred taxes equals $5,060,772.


3



The
Company has adequate resources for the current marketing level of its Blood Volume
Analyzer as well as capital to sustain its localized semen and blood banking services.
The Company anticipates hiring additional regional managers to the existing
sales/marketing team.


It
is the goal of the marketing team to develop an individual sales team for each regional
manager. The Company is also expanding its support services personnel. The decision to
develop the marketing team was partially based on the anticipation of new publications in
peer reviewed medical journals by current users of the Blood Volume Analyzer.


The
 Companys  goal is to  establish  blood  volume  measurement  as a standard of care in
multiple  areas of medicine and surgery.  It is hoped that the publication of research
 studies from leading medical  facilities will result in an increase in sales in both the
Blood Volume Analyzer and its associated kits.


The
Company has an instrument  loaner  reagent plan which  requires use of the  Companys
 reserves.  The equipment  loaner reagent plan permits a user to make a minimal initial
 capital  commitment.  This results in a slower return on capital  expenditure for the
Company.  The Company has  established a private label leasing  program  called Daxor
Capital  through De Lage Landen.  With this  arrangement  Daxor  receives  the net
 present  value of the lease  upon the  signed  completion  of the  installation  of the
equipment.


The
Company is evaluating blood volume  instrumentation  management programs for hospitals.
 Under such a plan, the Company would provide  equipment and personnel on a sub-contract
 basis. The Company will use its current financial  reserves  primarily for developing
and marketing the Blood Volume  Analyzer.  The Company is evaluating  various options to
expand blood banking services in conjunction with the use of the Blood Volume Analyzer.




Part II OTHER
INFORMATION




Item 1. Legal
Proceedings


None




Item 2. Exhibits and
Reports on Form 8-K




(a)
Exhibits31.1
Certification
of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.2
Certification
of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 200232.1
Certification
of Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 200232.2
Certification
of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002(b)
There were no reports on Form 8-k filed.4



SIGNATURES


Pursuant
to the requirements of the Securities and Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.



DATE: November 9, 2004
        By: /s/ JOSEPH FELDSCHUH, M.D.

JOSEPH FELDSCHUH, M.D.,
President and Chief Executive
OfficerDATE: November 9, 2004
        By: /s/ STEPHEN FELDSCHUH

STEPHEN FELDSCHUH
Vice President of Operations
And Chief Financial Officer5