---

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UNITED STATES
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 June 30, 2009 
Commission File Number 001-09999

DAXOR CORPORATION(Exact Name as Specified in its Charter)

|                                  |                      
|--------------------------------- | ---------------------
|New York                          | 13-2682108           
|(State
  or Other Jurisdiction of | (I.R.S.
  Employer   
|Incorporation
  or Organization)  | Identification
  No.)

350 Fifth Ave 
Suite 7120 
New York, New York 10118(Address of Principal Executive Offices & Zip
Code)

|                                 |                 
|-------------------------------- | ----------------
|Registrants
  Telephone Number: | (212)
  244-0555
|(Including
  Area Code)          |                 

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 o

Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or such shorter period that the
registrant was required to post and submit such files)

Yes o  No o

Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of large accelerated filer, accelerated filer and smaller
reporting company in Rule 12b-2 of the Exchange Act.

|                        |                                                  |                               
|----------------------- | ------------------------------------------------ | ------------------------------
|Large Accelerated filer | o                                                | Accelerated
  Filer  o        
|                        |                                                  |                               
|Non-accelerated filer   | x(Do not check if a smaller reporting
  company) | Smaller reporting
  company  o

Indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).

Yes o  No x

Indicate the number of
shares outstanding of each of the issuers classes of common stock, as of the
latest practicable date.

|                            |                                          
|--------------------------- | -----------------------------------------
|CLASS                       | 4,250,518
  OUTSTANDING AT August 7, 2009
|COMMON
  STOCK              |                                          
|PAR
  VALUE: $.01 per share |                                          

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DAXOR
CORPORATION AND SUBSIDIARY

TABLE
OF CONTENTS

|         |                       |                                                                                                                             |     
|-------- | --------------------- | --------------------------------------------------------------------------------------------------------------------------- | ----
|         |                       |                                                                                                                             |     
|         |                       |                                                                                                                             |     
|         |                       |                                                                                                                             |     
|PART I.  | FINANCIAL INFORMATION |                                                                                                                            
|         |                       |                                                                                                                            
|         | Item 1.               | FINANCIAL STATEMENTS                                                                                                        |     
|         |                       |                                                                                                                             |     
|         |                       | Index to Financial
  Statements                                                                                             |     
|         |                       |                                                                                                                             |     
|         |                       | Condensed
  Consolidated Balance Sheets at June 30, 2009 (Unaudited) and December 31,
  2008 - (Audited)                    | 1   
|         |                       |                                                                                                                             |     
|         |                       | Condensed
  Consolidated Statements of Operations for the three and six months ended June
  30, 2009 and 2008  (Unaudited) | 2-3 
|         |                       |                                                                                                                             |     
|         |                       | Condensed
  Consolidated Statements of Cash Flows for the six months ended June 30, 2009
  and 2008  (Unaudited)           | 4   
|         |                       |                                                                                                                             |     
|         |                       | Notes to
  Condensed Consolidated Financial Statements  (Unaudited)                                                        | 5-19
|         |                       |                                                                                                                             |     
|         | Item 2.               | Managements
  Discussion and Analysis of Financial Condition and Results of Operations                                     | 20  
|         |                       |                                                                                                                             |     
|         | Item 3.               | Quantitative
  and Qualitative Disclosures about Market Risk                                                                | 26  
|         |                       |                                                                                                                             |     
|         | Item 4T.              | Controls
  and Procedures                                                                                                   | 29  
|         |                       |                                                                                                                             |     
|PART II. | OTHER
  INFORMATION   |                                                                                                                            
|         |                       |                                                                                                                            
|         | Item 1.               | Legal
  Proceedings                                                                                                         | 29  
|         |                       |                                                                                                                             |     
|         | Item 1A.              | Risk
  Factors                                                                                                              | 29  
|         |                       |                                                                                                                             |     
|         | Item 2.               | Unregistered
  Sales of Equity Securities and Use of Proceeds                                                               | 29  
|         |                       |                                                                                                                             |     
|         | Item 3.               | Defaults
  Upon Senior Securities                                                                                           | 29  
|         |                       |                                                                                                                             |     
|         | Item 4.               | Submission
  of Matters to a Vote of Security Holders                                                                       | 29  
|         |                       |                                                                                                                             |     
|         | Item 5.               | Other
  Information                                                                                                         | 30  
|         |                       |                                                                                                                             |     
|         | Item 6.               | Exhibits                                                                                                                    | 30  

-1-

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DAXOR CORPORATION AND SUBSIDIARY 
CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                             |  |           |             |              |   |             |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------- | ----------- | ------------ | - | ----------- | -
|                                                                                                                                                                                             |  | UNAUDITED |             |              |  
|                                                                                                                                                                                             |  | June 30,  |             | December 31, |  
|                                                                                                                                                                                             |  | 2009      |             | 2008         |  
|                                                                                                                                                                                             |  |           |             |              |  
|ASSETS                                                                                                                                                                                       |  |           |             |              |   |             |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|CURRENT ASSETS                                                                                                                                                                               |  |           |             |              |   |             |  
|Cash and cash equivalents                                                                                                                                                                    |  | $         | 234,371     |              | $ | 2,545,040   |  
|Receivable from broker (held in money market accounts)                                                                                                                                       |  |           | 210,512     |              |   | 2,829,979   |  
|Available-for-sale securities, at fair value                                                                                                                                                 |  |           | 69,896,003  |              |   | 68,339,143  |  
|Securities sold, not received, at fair value                                                                                                                                                 |  |           | 66,740      |              |   |            |  
|Accounts receivable, net of allowance for doubtful accounts of
  $88,645 in 2009 and $88,645 in 2008                                                                                         |  |           | 215,009     |              |   | 205,568     |  
|Inventory                                                                                                                                                                                    |  |           | 451,267     |              |   | 426,826     |  
|Prepaid expenses and other current assets                                                                                                                                                    |  |           | 142,854     |              |   | 131,912     |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|Total Current Assets                                                                                                                                                                         |  |           | 71,216,756  |              |   | 74,478,468  |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|Property and equipment, net                                                                                                                                                                  |  |           | 3,664,969   |              |   | 2,308,555   |  
|Other assets                                                                                                                                                                                 |  |           | 37,158      |              |   | 37,158      |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|Total Assets                                                                                                                                                                                 |  | $         | 74,918,883  |              | $ | 76,824,181  |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                                         |  |           |             |              |   |             |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|CURRENT LIABILITIES                                                                                                                                                                          |  |           |             |              |   |             |  
|Accounts payable and accrued liabilities                                                                                                                                                     |  | $         | 533,335     |              | $ | 604,420     |  
|Loans payable                                                                                                                                                                                |  |           | 15,493,695  |              |   | 13,052,162  |  
|Income taxes payable                                                                                                                                                                         |  |           | 2,099,248   |              |   | 2,643,958   |  
|Mortgage payable, current portion                                                                                                                                                            |  |           | 41,835      |              |   | 40,306      |  
|Put and call options, at fair value                                                                                                                                                          |  |           | 5,727,577   |              |   | 8,424,359   |  
|Securities borrowed, at fair value                                                                                                                                                           |  |           | 255,745     |              |   | 107,871     |  
|Deferred revenue                                                                                                                                                                             |  |           | 48,215      |              |   | 33,349      |  
|Deferred income taxes                                                                                                                                                                        |  |           | 5,245,640   |              |   | 8,066,823   |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|Total Current Liabilities                                                                                                                                                                    |  |           | 29,445,290  |              |   | 32,973,248  |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|LONG TERM LIABILITIES                                                                                                                                                                        |  |           |             |              |   |             |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|Mortgage payable, less current portion                                                                                                                                                       |  |           | 368,944     |              |   | 390,292     |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|Total Liabilities                                                                                                                                                                            |  |           | 29,814,234  |              |   | 33,363,540  |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|STOCKHOLDERS EQUITY                                                                                                                                                                         |  |           |             |              |   |             |  
|Common stock, $.01 par value, Authorized - 10,000,000 shares Issued

  5,316,550 shares Outstanding  4,253,718 and 4,289,118 shares at June 30,
  2009 and December 31, 2008, respectively |  |           | 53,165      |              |   | 53,165      |  
|Additional paid in capital                                                                                                                                                                   |  |           | 10,672,629  |              |   | 10,660,547  |  
|Accumulated other comprehensive income                                                                                                                                                       |  |           | 9,277,871   |              |   | 11,459,203  |  
|Retained earnings                                                                                                                                                                            |  |           | 36,427,397  |              |   | 32,158,138  |  
|Treasury stock, at cost, 1,062,832 and 1,027,432 shares at June 30,
  2009 and December 31, 2008, respectively                                                                               |  |           | (11,326,413 | )            |   | (10,870,412 | )
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|Total Stockholders Equity                                                                                                                                                                   |  |           | 45,104,649  |              |   | 43,460,641  |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  
|Total Liabilities and Stockholders Equity                                                                                                                                                   |  | $         | 74,918,883  |              | $ | 76,824,181  |  
|                                                                                                                                                                                             |  |           |             |              |   |             |  

See accompanying notes to
unaudited condensed consolidated financial statements.

1

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DAXOR CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [UNAUDITED] 
FOR THE THREE MONTHS ENDED

|                                                                             |  |          |            |          |   |            |  
|---------------------------------------------------------------------------- |  | -------- | ---------- | -------- | - | ---------- | -
|                                                                             |  | June 30, |            | June 30, |  
|                                                                             |  | 2009     |            | 2008     |  
|                                                                             |  |          |            |          |  
|REVENUES:                                                                    |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Operating Revenues 
  equipment sales and related services                  |  | $        | 293,635    |          | $ | 467,998    |  
|Operating Revenues 
  cryobanking and related services                      |  |          | 86,785     |          |   | 88,589     |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Revenues                                                               |  |          | 380,420    |          |   | 556,587    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Cost of Sales:                                                               |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Cost of equipment sales
  and related services                               |  |          | 192,310    |          |   | 164,176    |  
|Cost of cryobanking and
  related services                                   |  |          | 9,776      |          |   | 10,326     |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Cost of Sales                                                          |  |          | 202,086    |          |   | 174,502    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Gross Profit                                                                 |  |          | 178,334    |          |   | 382,085    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|OPERATING EXPENSES:                                                          |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Research and development
  expenses:                                         |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Research and
  development-equipment sales and related services              |  |          | 624,058    |          |   | 614,979    |  
|Research and
  development-cryobanking and related services                  |  |          | 47,032     |          |   | 47,154     |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Research and
  Development Expenses                                    |  |          | 671,090    |          |   | 662,133    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Selling, General &
  Administrative Expenses:                                |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Selling, general, and
  administrative- equipment sales and related services |  |          | 659,122    |          |   | 803,941    |  
|Selling, general, and
  administrative- cryobanking and related services     |  |          | 194,228    |          |   | 140,262    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Selling, General
  & Administrative Expenses                           |  |          | 853,350    |          |   | 944,203    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Operating Expenses                                                     |  |          | 1,524,440  |          |   | 1,606,336  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Loss from Operations                                                         |  |          | (1,346,106 | )        |   | (1,224,251 | )
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Other Income (Expenses):                                                     |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Dividend income-investment
  portfolio                                       |  |          | 636,412    |          |   | 551,719    |  
|Realized gains on sale of
  securities, net                                  |  |          | 444,036    |          |   | 2,644,472  |  
|Mark to market of short
  positions                                          |  |          | 6,978,825  |          |   | (33,259    | )
|Other revenues                                                               |  |          | 2,964      |          |   | 2,869      |  
|Interest expense, net of
  interest income of $0 and $19,976                 |  |          | (59,828    | )        |   | (15,552    | )
|Administrative expense
  relating to portfolio investments                   |  |          | (31,414    | )        |   | (21,156    | )
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Other Income                                                           |  |          | 7,970,995  |          |   | 3,129,093  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Income before Income Taxes                                                   |  |          | 6,624,889  |          |   | 1,904,842  |  
|                                                                             |  |          |            |          |   |            |  
|Income Tax Expense                                                           |  |          | 386,193    |          |   | 400,000    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Net Income                                                                   |  | $        | 6,238,696  |          | $ | 1,504,842  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Comprehensive Income:                                                        |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Net Income                                                                   |  | $        | 6,238,696  |          | $ | 1,504,842  |  
|Unrealized Gain on
  Securities Held for Sale, Net of Deferred Income Taxes  |  |          | 7,664,238  |          |   | 3,808,444  |  
|                                                                             |  |          |            |          |   |            |  
|Comprehensive Income                                                         |  | $        | 13,902,934 |          | $ | 5,313,286  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Weighted average number of
  shares outstanding  basic                      |  |          | 4,263,918  |          |   | 4,361,918  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Net income per common
  equivalent share - basic                             |  | $        | 1.46       |          | $ | 0.35       |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Weighted average number of
  shares outstanding - diluted                    |  |          | 4,285,918  |          |   | 4,383,918  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Net income per common
  equivalent share  diluted                           |  | $        | 1.46       |          | $ | 0.34       |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Dividends paid per common
  share                                            |  | $        | 0.10       |          | $ |           |  
|                                                                             |  |          |            |          |   |            |  

See accompanying notes to
unaudited condensed consolidated financial statements.

2

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DAXOR CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [UNAUDITED] 
FOR THE SIX MONTHS ENDED

|                                                                             |  |          |            |          |   |            |  
|---------------------------------------------------------------------------- |  | -------- | ---------- | -------- | - | ---------- | -
|                                                                             |  | June 30, |            | June 30, |  
|                                                                             |  | 2009     |            | 2008     |  
|                                                                             |  |          |            |          |  
|REVENUES:                                                                    |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Operating Revenues 
  equipment sales and related services                  |  | $        | 638,598    |          | $ | 791,778    |  
|Operating Revenues 
  cryobanking and related services                      |  |          | 175,859    |          |   | 185,722    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Revenues                                                               |  |          | 814,457    |          |   | 977,500    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Cost of Sales:                                                               |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Cost of equipment sales
  and related services                               |  |          | 332,349    |          |   | 302,790    |  
|Cost of cryobanking and
  related services                                   |  |          | 22,205     |          |   | 23,726     |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Cost of Sales                                                          |  |          | 354,554    |          |   | 326,516    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Gross Profit                                                                 |  |          | 459,903    |          |   | 650,984    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|OPERATING EXPENSES:                                                          |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Research and development
  expenses:                                         |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Research and
  development-equipment sales and related services              |  |          | 1,171,651  |          |   | 1,174,288  |  
|Research and
  development-cryobanking and related services                  |  |          | 94,411     |          |   | 95,396     |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Research and
  Development Expenses                                    |  |          | 1,266,062  |          |   | 1,269,684  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Selling, General &
  Administrative Expenses:                                |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Selling, general, and
  administrative- equipment sales and related services |  |          | 1,290,491  |          |   | 1,574,536  |  
|Selling, general, and
  administrative- cryobanking and related services     |  |          | 363,952    |          |   | 299,816    |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Selling, General
  & Administrative Expenses                           |  |          | 1,654,443  |          |   | 1,874,352  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Operating Expenses                                                     |  |          | 2,920,505  |          |   | 3,144,036  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Loss from Operations                                                         |  |          | (2,460,602 | )        |   | (2,493,052 | )
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Other Income (Expenses):                                                     |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Dividend income-investment
  portfolio                                       |  |          | 1,623,509  |          |   | 1,182,501  |  
|Realized gains on sale of
  securities, net                                  |  |          | 5,514,477  |          |   | 8,475,471  |  
|Mark to market of short
  positions                                          |  |          | 713,894    |          |   | 2,142,782  |  
|Other revenues                                                               |  |          | 5,927      |          |   | 5,785      |  
|Interest expense, net of
  interest income of $6,526 and $31,161             |  |          | (127,527   | )        |   | (45,067    | )
|Administrative expense
  relating to portfolio investments                   |  |          | (63,300    | )        |   | (42,570    | )
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Total Other Income                                                           |  |          | 7,666,980  |          |   | 11,718,902 |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Income before Income Taxes                                                   |  |          | 5,206,378  |          |   | 9,225,850  |  
|                                                                             |  |          |            |          |   |            |  
|Income Tax Expense                                                           |  |          | 510,967    |          |   | 400,000    |  
|                                                                             |  |          |            |          |   |            |  
|Net Income                                                                   |  | $        | 4,695,411  |          | $ | 8,825,850  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Comprehensive Income:                                                        |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Net Income                                                                   |  | $        | 4,695,411  |          | $ | 8,825,850  |  
|Unrealized Loss on
  Securities Held for Sale, Net of Deferred Income Taxes  |  |          | (2,181,331 | )        |   | (3,383,727 | )
|                                                                             |  |          |            |          |   |            |  
|Comprehensive Income                                                         |  | $        | 2,514,080  |          | $ | 5,442,123  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Weighted average number of
  shares outstanding  basic                      |  |          | 4,274,801  |          |   | 4,391,718  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Net income per common
  equivalent share - basic                             |  | $        | 1.10       |          | $ | 2.01       |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Weighted average number of
  shares outstanding  diluted                    |  |          | 4,296,801  |          |   | 4,416,718  |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Net income per common
  equivalent share - diluted                           |  | $        | 1.09       |          | $ | 2.00       |  
|                                                                             |  |          |            |          |   |            |  
|                                                                             |  |          |            |          |   |            |  
|Dividends paid per common
  share                                            |  | $        | 0.10       |          | $ |           |  
|                                                                             |  |          |            |          |   |            |  

See accompanying notes to
unaudited condensed consolidated financial statements.

3

---



DAXOR CORPORATION AND SUBSIDIARYCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS [UNAUDITED] 
FOR THE SIX MONTHS ENDED

|                                                                                  |  |                 |             |                 |   |             |  
|--------------------------------------------------------------------------------- |  | --------------- | ----------- | --------------- | - | ----------- | -
|                                                                                  |  | June 30,
  2009 |             | June 30,
  2008 |  
|                                                                                  |  |                 |             |                 |  
|                                                                                  |  |                 |             |                 |  
|CASH FLOWS FROM OPERATING ACTIVITIES:                                             |  |                 |             |                 |   |             |  
|Net income                                                                        |  | $               | 4,695,411   |                 | $ | 8,825,850   |  
|                                                                                  |  |                 |             |                 |   |             |  
|Adjustment to reconcile net income to net
  cash used in operating activities:    |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|Depreciation                                                                      |  |                 | 141,811     |                 |   | 156,053     |  
|Non-cash compensation expense associated
  with employee stock compensation plans |  |                 | 12,082      |                 |   | 38,363      |  
|Deferred income taxes                                                             |  |                 | (1,646,620  | )               |   |            |  
|Gain on sale of fixed assets                                                      |  |                 |            |                 |   | (162,131    | )
|Realized gains on sale of investments                                             |  |                 | (5,514,477  | )               |   | (8,475,471  | )
|Mark to market on short positions                                                 |  |                 | (713,894    | )               |   | (2,142,782  | )
|                                                                                  |  |                 |             |                 |   |             |  
|Change in operating assets and liabilities:                                       |  |                 |             |                 |   |             |  
|Increase in accounts receivable                                                   |  |                 | (9,441      | )               |   | (76,620     | )
|Increase in prepaid expenses & other
  current assets                             |  |                 | (10,942     | )               |   | (26,856     | )
|Increase in inventory                                                             |  |                 | (24,441     | )               |   | (174,478    | )
|Decrease in accounts payable and accrued
  liabilities                            |  |                 | (71,085     | )               |   | (63,474     | )
|Decrease in income taxes payable                                                  |  |                 | (544,710    | )               |   | (895,668    | )
|Increase (Decrease) in deferred revenue                                           |  |                 | 14,866      |                 |   | (5,369      | )
|                                                                                  |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|Net cash used in operating activities                                             |  |                 | (3,671,440  | )               |   | (3,002,583  | )
|                                                                                  |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                             |  |                 |             |                 |   |             |  
|Purchase of property and equipment                                                |  |                 | (1,498,225  | )               |   | (171,362    | )
|Proceeds from sale of fixed assets                                                |  |                 |            |                 |   | 195,000     |  
|Increase in securities sold, not received
  at fair market value                  |  |                 | (66,740     | )               |   | (4,208,361  | )
|Increase in securities borrowed, at fair
  market value                           |  |                 | 147,874     |                 |   | 2,616,922   |  
|Purchases of put and call options                                                 |  |                 | (2,642,230  | )               |   | (259,076    | )
|Sales of put and call options                                                     |  |                 | 16,219,854  |                 |   | 13,119,694  |  
|Acquisition of available for sale
  securities                                    |  |                 | (32,326,598 | )               |   | (28,843,402 | )
|Proceeds from sale of available for sale
  securities                             |  |                 | 17,367,808  |                 |   | 18,864,089  |  
|                                                                                  |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|Net cash (used in) provided by investing
  activities                             |  |                 | (2,798,257  | )               |   | 1,313,504   |  
|                                                                                  |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                             |  |                 |             |                 |   |             |  
|Proceeds from margin loan payable                                                 |  |                 | 42,758,318  |                 |   | 29,538,163  |  
|Repayment of margin loan payable                                                  |  |                 | (36,662,318 | )               |   | (27,169,277 | )
|Proceeds from loans from officers                                                 |  |                 | 1,140,000   |                 |   |            |  
|Repayment of loans from officers                                                  |  |                 | (1,140,000  | )               |   |            |  
|Repayment of bank loan                                                            |  |                 | (1,285,000  | )               |   | (1,490,000  | )
|Proceeds from bank loan                                                           |  |                 | 250,000     |                 |   | 200,000     |  
|Purchase of treasury stock                                                        |  |                 | (456,001    | )               |   | (1,380,088  | )
|Dividends paid                                                                    |  |                 | (426,152    | )               |   |            |  
|Repayment of mortgage payable                                                     |  |                 | (19,819     | )               |   | (18,307     | )
|                                                                                  |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|Net cash provided by (used in) financing
  activities                             |  |                 | 4,159,028   |                 |   | (319,509    | )
|                                                                                  |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|Net decrease in cash and cash equivalents                                         |  |                 | (2,310,669  | )               |   | (2,008,588  | )
|                                                                                  |  |                 |             |                 |   |             |  
|Cash and cash equivalents at beginning of
  period                                |  |                 | 2,545,040   |                 |   | 2,029,834   |  
|                                                                                  |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|Cash and cash equivalents at end of period                                        |  | $               | 234,371     |                 | $ | 21,246      |  
|                                                                                  |  |                 |             |                 |   |             |  
|                                                                                  |  |                 |             |                 |   |             |  
|Supplemental Disclosures of Cash Flow
  Information:                              |  |                 |             |                 |   |             |  
|Cash paid during the period for:                                                  |  |                 |             |                 |   |             |  
|Interest                                                                          |  | $               | 134,053     |                 | $ | 76,227      |  
|Income taxes                                                                      |  | $               | 2,707,010   |                 | $ | 1,302,210   |  

See
accompanying notes to unaudited condensed consolidated financial statements.

4

---



DAXOR CORPORATION AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

(1) BUSINESS
AND SIGNIFICANT ACCOUNTING POLICIES

BUSINESS

Daxor
Corporation (the Company) is a medical device manufacturing company that
offers additional biotech services, such as cryobanking, through its wholly
owned subsidiary, Scientific Medical Systems Corp. The Company provides
long-term frozen blood and semen storage services to enable individuals to
store their own blood and semen. The main focus of Daxor Corporation has been
the development of an instrument that rapidly and accurately measures human
blood volume. This instrument is used in conjunction with a single use
diagnostic injection and collection kit.

SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The
accompanying unaudited condensed consolidated financial statements reflect all
adjustments of a normal recurring nature, which are, in the opinion of
management, necessary for a fair statement of the financial position and
results of operations for the interim periods presented. The condensed
consolidated financial statements are unaudited and are subject to such
year-end adjustments as may be considered appropriate and should be read in
conjunction with the historical consolidated financial statements of Daxor
Corporation for the years ended December 31, 2008, 2007 and 2006, included in
Daxor Corporations Annual Report and Form 10-K for the fiscal year ended
December 31, 2008. The December 31, 2008 condensed consolidated balance sheet
data was derived from audited financial statements but does not include all
disclosures required by accounting principles generally accepted in the United
States of America. Operating results for the three and six month periods ended
June 30, 2009 is not necessarily indicative of the results that may be expected
for the year ending December 31, 2009.

These
condensed consolidated financial statements have been prepared in accordance
with US GAAP and under the same accounting principles as the consolidated
financial statements included in the Annual Report on Form 10-K. Certain
information and footnote disclosures related thereto normally included in the
financial statements prepared in accordance with US GAAP have been omitted in
accordance with Rule 10-01 of Regulation S-X.

We
have evaluated subsequent events, as defined by Statement of Financial
Accounting Standards (SFAS) No. 165 - Subsequent Events, through the date
that the financial statements were issued on August 13, 2009.

Fair Value of Financial Instruments

The carrying
amounts of financial instruments, including cash and cash equivalents, accounts
receivable and payable, accrued liabilities, deferred option premiums and loans
payable approximate fair value because of their short maturities. The carrying
amount of the mortgage payable is estimated to approximate fair value as the
mortgage carries a market rate of interest.

Fair Value Measurements

Effective
January 1, 2008, the Company adopted SFAS No. 157, Fair Value Measurements, for
all financial instruments and non-financial instruments accounted for at fair
value on a recurring basis. SFAS 157 establishes a new framework for measuring
fair value and expands related disclosures. Broadly, the SFAS 157 framework
requires fair value to be determined based on the exchange price that would be
received for an asset or paid to transfer a liability (an exit price) in the
principal or most advantageous market for the asset or liability in an orderly
transaction between market participants. SFAS 157 establishes market or
observable inputs as the preferred source of values, followed by unobservable
inputs or assumptions based on hypothetical transactions in the absence of
market inputs.

| |   |                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Level 1, is
  defined as observable inputs being quoted prices in active markets for
  identical assets;                                                         
| |   |                                                                                                                                                                  
| |  | Level 2, is
  defined as observable inputs including quoted prices for similar assets; and                                                                       
| |   |                                                                                                                                                                  
| |  | Level 3, is
  defined as unobservable inputs in which little or no market data exists,
  therefore requiring assumptions based on the best information available.

The adoption
of this pronouncement did not have a material effect on the financial condition
or results of operations of the Company.

Effective
January 1, 2009, the Company adopted FASB Staff Position 157-2, Effective Date
of FASB Statement No. 157, which delays the effective date of SFAS No. 157
until January 1, 2009 for all nonfinancial assets and nonfinancial liabilities,
except for items that are recognized or disclosed at fair value in the
financial statements on a recurring basis (at least annually). The adoption of
the delayed items of SFAS No. 157 did not have a material impact on the
Companys consolidated financial statements as of and for the three and six
months ended June 30, 2009.

5

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

Available-for-Sale Securities

Available-for-sale
securities represent investments in debt and equity securities (primarily
common and preferred stock of electric utility companies) that management has
determined meet the definition of available-for-sale under SFAS No. 115 - Accounting for Certain Investments in Debt and Equity
Securities. Accordingly, these investments are stated at fair market
value and all unrealized holding gains or losses are recorded in the
Stockholders Equity section as Accumulated Other Comprehensive Income (Loss).
Conversely, all realized gains, losses and earnings are recorded in the
Statement of Operations under Other Income (Expense).

At
certain times, the Company will engage in short selling of stock. When this
occurs, the short position is marked to the market and recorded as a realized
sale. Any gain or (loss) is recorded for the period presented.

Historical
cost is used by the Company to determine all gains and losses, and fair market
value is obtained by readily available market quotes on all securities (Level 1
inputs).

Put and Call Options at fair value

As
part of the companys investment strategy, put and call options are sold on
various stocks the company is willing to buy or sell. The premiums received are
deferred until such time as they are exercised or expire. In accordance with
SFAS No. 133 - Accounting for Derivative
Instruments and Hedging Activities,these options are marked to
market for each reporting period using readily available market quotes (Level 1
inputs), and this fair value adjustment is recorded as a gain or loss in the
Statement of Operations.

Upon
exercise, the value of the premium will adjust the basis of the underlying
security bought or sold. Options that expire are recorded as income in the
period they expire.

All
proceeds of the put and call options which are equity contracts are shown net
of the mark to market adjustment in the current liability section of the
balance sheet as Put and call options, at fair value.

Receivable from Broker

The
Receivable from Broker represents cash proceeds from sales of securities and
dividends. These proceeds are kept in dividend bearing money market accounts.

Securities borrowed at fair value

When
a call option that has been sold short is exercised, this creates a short
position in the related common stock. The recorded cost of these short
positions is the amount received on the sale of the stock plus the proceeds
received from the underlying call option. These positions are shown on the
Balance Sheet as Securities borrowed at fair value and the carrying value is
reduced or increased at the end of each quarter by the mark to market
adjustment which is recorded in accordance with SFAS No. 115  Accounting for Certain Investments in Debt and Equity
Securities.

Securities sold, not yet received at fair
value

Some
of the financial institutions who hold our securities do not increase our
account with the cash proceeds on the sale of a short stock. In lieu of cash,
our account receives a credit for the proceeds of the short sale. Cash is added
to or subtracted from our account weekly based on the market value of our short
positions. These securities are recorded by the Company as received but not
delivered and are valued at their quoted market price.

Investment Goals, Strategies and Policies

The Companys
investment goals, strategies and policies are as follows:

| |    |                                                                                                                                                                                                                  
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. | The
  Companys investment goals are capital preservation, maintaining returns on
  capital with a high degree of safety and generating income from dividends and
  option sales to help offset operating losses.

6

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | In order to
  achieve these goals, the Company maintains a diversified securities portfolio
  comprised primarily of electric utility common and preferred stocks. The
  Company also sells covered calls on portions of its portfolio and also sells
  puts on stocks it is willing to own. It also sells uncovered calls and may
  have net short positions in common stock up to 15% of the value of the
  portfolio. The Companys net short position may temporarily rise to 15% of
  the Companys portfolio without any specific action because of changes in
  valuation, but should not exceed this amount. The Companys investment policy
  is to maintain a minimum of 80% of its portfolio in electric utilities. The
  Board of Directors has authorized this minimum to be temporarily lowered to
  70% when Company management deems it to be necessary. Investments in
  utilities are primarily in electric companies. Investments in non-utility
  stocks will generally not exceed 20% of the value of the portfolio.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 3. | Investment
  in speculative issues, including short sales, maximum of 15%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 4. | Limited use
  of options to increase yearly investment income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    | a.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | The use of
  Call Options. Covered options can be sold up to a maximum of 20% of the
  value of the portfolio. This provides extra income in addition to dividends
  received from the companys investments. The risk of this strategy is that
  investments may be called away, which the company may have preferred to
  retain. Therefore, a limitation of 20% is placed on the amount of stock on
  which options can be written. The amount of the portfolio on which options
  are actually written is usually between 3-10% of the portfolio. The
  historical turnover of the portfolio is such that the average holding period
  is in excess of five years for available for sale securities.                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    | b.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | The use of
  Put options. Put options are written on stocks which the company is willing
  to purchase. While the company does not have a high rate of turnover in its
  portfolio, there is some turnover; for example, due to preferred stocks being
  called back by the issuing company, or stocks being called away because call
  options have been written. If the stock does not go below the put exercise
  price, the company records the proceeds from the sale as income. If the put
  is exercised, the cost basis is reduced by the proceeds received from the
  sale of the put option. There may be occasions where the cost basis of the
  stock is lower than the market price at the time the option is exercised.                                                                                                                                                                                                                                                                                  
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    | c.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Speculative
  Short Sales/Short Options. The company normally limits its speculative
  transactions to no more than 15% of the value of the portfolio. The company
  may sell uncovered calls on certain stocks. If the stock price does not rise
  to the price of the call, the option is not exercised and the company records
  the proceeds from the sale of the call as income. If the call is exercised,
  the company will have a short position in the related stock. The company then
  has the choice of covering the short position, or selling a put against it.
  If the put is exercised, then the short position is covered. The companys
  current accounting policy is to mark to the market at the end of each quarter
  any short positions, and include it in the income statement. While the
  company may have so-called speculative positions equal to 15% of its
  accounts, in actual practice the net short stock positions usually account
  for less than 10% of the assets of the company.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 5. | In the event
  of a merger, the Company will elect to receive shares in the new company if
  this is an option. If the proposed merger is a cash only offer, the Company
  will receive cash and be forced to sell the stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

Inventory

Inventory
is stated at the lower of cost or market, using the first-in, first-out method
(FIFO), and consists primarily of finished goods.

7

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

Earnings per Share

The
Company computes earnings per share in accordance with SFAS No. 128- Earnings per Share. Basic earnings per
common share is computed by dividing income or loss available to common
stockholders by the weighted average number of common shares outstanding for
the period. Diluted earnings per common share are based on the average number
of common shares outstanding during each period, adjusted for the effects of
outstanding stock options.

The
following table summarizes the earnings per share calculations for the three
and six months ended June 30, 2009:

|                                    |  |                                     |           |                                   |   |           | 
|----------------------------------- |  | ----------------------------------- | --------- | --------------------------------- | - | --------- | 
|                                    |  | Three months ended 
  June 30, 2009 |           | Six months ended 
  June 30, 2009 |  
|                                    |  |                                     |           |                                   |  
|Basic shares                        |  |                                     | 4,263,918 |                                   |   | 4,274,801 | 
|Dilutions:
  stock options          |  |                                     | 22,000    |                                   |   | 22,000    | 
|Diluted
  shares                    |  |                                     | 4,285,918 |                                   |   | 4,296,801 | 
|Income from
  continuing operations |  |                                     | 6,238,696 |                                   |   | 4,695,411 | 
|Basic
  earnings per share          |  | $                                   | 1.46      |                                   | $ | 1.10      | 
|Diluted
  earnings per share        |  | $                                   | 1.46      |                                   | $ | 1.09      | 

For
the six months ended June 30, 2009 and June 30, 2008, 66,300 and 85,500 options
to purchase common stock, respectively were excluded in the computation of
earnings per common share as their issuance prices were in excess of the
average market price for the period.

The
following table summarizes the earnings per share calculations for the three
and six months ended June 30, 2008:

|                                    |  |                                    |           |                                   |   |           | 
|----------------------------------- |  | ---------------------------------- | --------- | --------------------------------- | - | --------- | 
|                                    |  | Three months ended
  June 30, 2008 |           | Six months ended 
  June 30, 2008 |  
|                                    |  |                                    |           |                                   |  
|Basic shares                        |  |                                    | 4,361,918 |                                   |   | 4,391,718 | 
|Dilutions:
  stock options          |  |                                    | 22,000    |                                   |   | 25,000    | 
|Diluted
  shares                    |  |                                    | 4,383,918 |                                   |   | 4,416,718 | 
|Income from
  continuing operations |  |                                    | 1,504,842 |                                   |   | 8,825,850 | 
|Basic
  earnings per share          |  | $                                  | 0.35      |                                   | $ | 2.01      | 
|Diluted
  earnings per share        |  | $                                  | 0.34      |                                   | $ | 2.00      | 

For
the three months ended June 30, 2009 and June 30, 2008, 66,300 and
110,500 options to purchase common stock, respectively were excluded in the
computation of earnings per common share as their issuance prices were in
excess of the average market price for the period.

Dividends

The Company paid a dividend of $0.10 per share on June
15, 2009 to shareholders of record on May 29, 2009.

In
2008, Management instituted a policy of paying dividends when funds are
available. For the year ended December 31, 2008, the Company paid a total
dividend of $1.50 per share as follows: $0.25 per share on August 26th
and November 26th and a special dividend of $1.00 per share on
December 30, 2008. The goal of management is to follow a similar policy for
2009 and pay dividends when funds are available.

(2)
AVAILABLE-FOR-SALE SECURITIES

The
Company uses the historical cost method in the determination of its realized
and unrealized gains and losses. The following tables summarize the Companys
investments as of:

8

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

June 30, 2009 (Unaudited)

|                   |  |              |            |                       |   |                               |  |                  |            |                   |   |            |  |   |            |  
|------------------ |  | ------------ | ---------- | --------------------- | - | ----------------------------- |  | ---------------- | ---------- | ----------------- | - | ---------- |  | - | ---------- | -
|Type of
  Security |  | Market Value |            | Cost of 
  Securities |   | Net Unrealized 
  Gain (Loss) |  | Unrealized Gains |            | Unrealized Losses |  
|                   |  |              |            |                       |   |                               |  |                  |            |                   |  
|Equity             |  | $            | 69,896,003 |                       | $ | 55,589,349                    |  | $                | 14,306,654 |                   | $ | 23,605,451 |  | $ | (9,298,797 | )
|Debt               |  | $            |           |                       | $ | 33,005                        |  | $                | (33,005    | )                 | $ |           |  | $ | (33,005    | )
|                   |  |              |            |                       |   |                               |  |                  |            |                   |   |            |  |   |            |  
|Total
  Securities |  | $            | 69,896,003 |                       | $ | 55,622,354                    |  | $                | 14,273,649 |                   | $ | 23,605,451 |  | $ | (9,331,802 | )
|                   |  |              |            |                       |   |                               |  |                  |            |                   |   |            |  |   |            |  

December 31, 2008

|                   |  |              |            |                       |   |                                |  |                  |            |                   |   |            |  |   |             |  
|------------------ |  | ------------ | ---------- | --------------------- | - | ------------------------------ |  | ---------------- | ---------- | ----------------- | - | ---------- |  | - | ----------- | -
|Type of
  Security |  | Market Value |            | Cost of 
  Securities |   | Net Unrealized 
  Gain  (Loss) |  | Unrealized Gains |            | Unrealized Losses |  
|                   |  |              |            |                       |   |                                |  |                  |            |                   |  
|Equity             |  | $            | 68,339,143 |                       | $ | 50,676,596                     |  | $                | 17,662,547 |                   | $ | 28,469,540 |  | $ | (10,806,993 | )
|Debt               |  | $            |           |                       | $ | 33,005                         |  | $                | (33,005    | )                 | $ |           |  | $ | (33,005     | )
|                   |  |              |            |                       |   |                                |  |                  |            |                   |   |            |  |   |             |  
|Total
  Securities |  | $            | 68,339,143 |                       | $ | 50,709,601                     |  | $                | 17,629,542 |                   | $ | 28,469,540 |  | $ | (10,839,998 | )
|                   |  |              |            |                       |   |                                |  |                  |            |                   |   |            |  |   |             |  

The following
tables summarize the unrealized losses on the Companys Available for Sale
Securities at June 30, 2009 and December 31, 2008:

Daxor Corporation
Summary of Unrealized Losses of Available for Sale Securities 
As at June 30, 2009

|                             |  |                         |            |                          |   |            |  |                 |           |            |   |                 |  |   |            |  |   |           | 
|---------------------------- |  | ----------------------- | ---------- | ------------------------ | - | ---------- |  | --------------- | --------- | ---------- | - | --------------- |  | - | ---------- |  | - | --------- | 
|                             |  | Less Than Twelve Months |            | Twelve Months or Greater |   | Total      | 
|                             |  |                         |            |                          |   |            | 
|                             |  | Fair Value              |            | Unrealized Loss          |   | Fair Value |  | Unrealized Loss |           | Fair Value |   | Unrealized Loss | 
|                             |  |                         |            |                          |   |            |  |                 |           |            |   |                 | 
|Marketable Equity Securities |  | $                       | 13,615,629 |                          | $ | 4,987,260  |  | $               | 4,932,446 |            | $ | 4,311,537       |  | $ | 18,548,075 |  | $ | 9,298,797 | 
|Corporate Bonds              |  |                         |           |                          |   |           |  |                 |          |            | $ | 33,005          |  |   |           |  |   | 33,005    | 
|                             |  |                         |            |                          |   |            |  |                 |           |            |   |                 |  |   |            |  |   |           | 
|Total                        |  | $                       | 13,615,629 |                          | $ | 4,987,260  |  | $               | 4,932,446 |            | $ | 4,344,542       |  | $ | 18,548,075 |  | $ | 9,331,802 | 
|                             |  |                         |            |                          |   |            |  |                 |           |            |   |                 |  |   |            |  |   |           | 

Management
has determined that an impairment charge is not needed for the Available for
Sale Securities with losses twelve months or greater at June 30, 2009. An
analysis of the Companys holdings indicates that the largest positions have
traded above the Companys average costs and management believes they will do
so again in the near future.

The
total Unrealized Loss on Available for Sale Securities decreased from
$10,839,998 at December 31, 2008 to $9,331,802 at June 30, 2009.

9

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

Daxor Corporation
Summary of Unrealized Losses of Available for Sale Securities 
As at December 31, 2008

|                             |  |                         |            |                          |   |            |  |                 |           |            |   |                 |  |   |            |  |   |            | 
|---------------------------- |  | ----------------------- | ---------- | ------------------------ | - | ---------- |  | --------------- | --------- | ---------- | - | --------------- |  | - | ---------- |  | - | ---------- | 
|                             |  | Less Than Twelve Months |            | Twelve Months or Greater |   | Total      | 
|                             |  |                         |            |                          |   |            | 
|                             |  | Fair Value              |            | Unrealized Loss          |   | Fair Value |  | Unrealized Loss |           | Fair Value |   | Unrealized Loss | 
|                             |  |                         |            |                          |   |            |  |                 |           |            |   |                 | 
|Marketable Equity Securities |  | $                       | 14,232,869 |                          | $ | 7,675,656  |  | $               | 2,106,718 |            | $ | 3,131,337       |  | $ | 16,339,587 |  | $ | 10,806,993 | 
|Corporate Bonds              |  |                         |           |                          |   |           |  |                 |          |            | $ | 33,005          |  |   |           |  |   | 33,005     | 
|                             |  |                         |            |                          |   |            |  |                 |           |            |   |                 |  |   |            |  |   |            | 
|Total                        |  | $                       | 14,232,869 |                          | $ | 7,675,656  |  | $               | 2,106,718 |            | $ | 3,164,342       |  | $ | 16,339,587 |  | $ | 10,839,998 | 
|                             |  |                         |            |                          |   |            |  |                 |           |            |   |                 |  |   |            |  |   |            | 

(3) SEGMENT
ANALYSIS

The
Company has two operating segments: Equipment Sales and Related Services, and
Cryobanking and Related Services.

The
Equipment Sales and Related Services segment comprises the Blood Volume
Analyzer equipment and related activity. This includes equipment sales,
equipment rentals, equipment delivery fees, BVA-100 kit sales and service
contract revenues.

The
Cryobanking and Related Services segment is comprised of activity relating to
the storage of blood and semen, and related laboratory services and handling
fees.

Although
not deemed an operating segment: the Company reports a third business segment;
Investment activity. This segment reports the activity of the Companys
investment portfolio. This includes all earnings, gains and losses, and
expenses relating to these investments.

10

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

The
following table summarizes the results of each segment described above for the
three months ended June 30, 2009 (unaudited).

|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|----------------------------------------------------------- |  | ----------------------------------------- | ---------- | ----------------------------------- | - | ---------------------- | - | ----- | ---------- | - | - | ---------- | -
|                                                            |  | June 30, 2009                             |           
|                                                            |  |                                           |           
|                                                            |  | Equipment 
  Sales &
  Related
  Services |            | Cryobanking 
  & Related
  Services |   | Investment 
  Activity |   | Total |           
|                                                            |  |                                           |            |                                     |   |                        |   |       |           
|                                                            |  |                                           |            |                                     |   |                        |   |       |           
|Revenues                                                    |  | $                                         | 293,635    |                                     | $ | 86,785                 |   | $     |           |   | $ | 380,420    |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Expenses                                                    |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Cost of sales                                               |  |                                           | 192,310    |                                     |   | 9,776                  |   |       |           |   |   | 202,086    |  
|Research and development expenses                           |  |                                           | 624,058    |                                     |   | 47,032                 |   |       |           |   |   | 671,090    |  
|Selling, general and administrative
  expenses              |  |                                           | 659,122    |                                     |   | 194,228                |   |       |           |   |   | 853,350    |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Total Expenses                                              |  |                                           | 1,475,490  |                                     |   | 251,036                |   |       |           |   |   | 1,726,526  |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Operating loss                                              |  |                                           | (1,181,855 | )                                   |   | (164,251               | ) |       |           |   |   | (1,346,106 | )
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Investment income, net                                      |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Dividends                                                   |  |                                           |           |                                     |   |                       |   |       | 636,412    |   |   | 636.412    |  
|Gain on sales of securities, net                            |  |                                           |           |                                     |   |                       |   |       | 444,036    |   |   | 444,036    |  
|Mark to market of short positions                           |  |                                           |           |                                     |   |                       |   |       | 6,978,825  |   |   | 6,978,825  |  
|Administrative expenses relating to
  portfolio investments |  |                                           |           |                                     |   |                       |   |       | (31,414    | ) |   | (31,414    | )
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Total Investment income, net                                |  |                                           |           |                                     |   |                       |   |       | 8,027,859  |   |   | 8,027,859  |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Other income (expense)                                      |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Interest expense, net                                       |  |                                           | (7,880     | )                                   |   |                       |   |       | (51,948    | ) |   | (59,828    | )
|Other income                                                |  |                                           | 2,964      |                                     |   |                       |   |       |           |   |   | 2,964      |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Total Other Income (Expense)                                |  |                                           | (4,916     | )                                   |   |                       |   |       | (51,948    | ) |   | (56,864    | )
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Income (loss) before income taxes                           |  |                                           | (1,186,771 | )                                   |   | (164,251               | ) |       | 7,975,911  |   |   | 6,624,889  |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Income tax expense                                          |  |                                           | 22,500     |                                     |   | 1,000                  |   |       | 362,963    |   |   | 386,193    |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Net income (loss)                                           |  | $                                         | (1,209,271 | )                                   | $ | (165,251               | ) | $     | 7,613,218  |   | $ | 6,238,696  |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |            |   |   |            |  
|Depreciation and amortization                               |  | $                                         | 59,133     |                                     | $ | 9,105                  |   | $     |           |   | $ | 68,238     |  
|Interest income                                             |  | $                                         |           |                                     | $ |                       |   | $     |           |   | $ |           |  
|Capital expenditures                                        |  | $                                         | 510,500    |                                     | $ |                       |   | $     |           |   | $ | 510,500    |  
|Total assets                                                |  | $                                         | 4,553,201  |                                     | $ | 192,426                |   | $     | 70,173,256 |   | $ | 74,918,883 |  

11

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

The
following table summarizes the results of each segment described above for the
three months ended June 30, 2008 (unaudited)

|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|----------------------------------------------------------- |  | ----------------------------------------- | ---------- | ---------------------------------- | - | ---------------------- | - | ----- | ----------- | - | - | ----------- | -
|                                                            |  | June 30, 2008                             |           
|                                                            |  |                                           |           
|                                                            |  | Equipment 
  Sales &
  Related
  Services |            | Cryobanking
  & Related
  Services |   | Investment 
  Activity |   | Total |            
|                                                            |  |                                           |            |                                    |   |                        |   |       |            
|                                                            |  |                                           |            |                                    |   |                        |   |       |            
|Revenues                                                    |  | $                                         | 467,898    |                                    | $ | 88,589                 |   | $     |            |   | $ | 556,587     |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Expenses                                                    |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Cost of sales                                               |  |                                           | 164,176    |                                    |   | 10,326                 |   |       |            |   |   | 174,502     |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Research and development expenses                           |  |                                           | 614,979    |                                    |   | 47,154                 |   |       |            |   |   | 662,133     |  
|Selling, general and administrative
  expenses              |  |                                           | 803,941    |                                    |   | 140,262                |   |       |            |   |   | 944,203     |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Total Expenses                                              |  |                                           | 1,583,096  |                                    |   | 197,742                |   |       |            |   |   | 1,780,838   |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Operating loss                                              |  |                                           | (1,115,098 | )                                  |   | (109,153               | ) |       |            |   |   | (1,224,251  | )
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Investment income                                           |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Dividends                                                   |  |                                           |           |                                    |   |                       |   |       | 551,719     |   |   | 551,719     |  
|Gain on sales of securities, net                            |  |                                           |           |                                    |   |                       |   |       | 2,644,472   |   |   | 2,644,472   |  
|Mark to market of short positions                           |  |                                           |           |                                    |   |                       |   |       | (33,259     | ) |   | (33,259     | )
|Administrative expenses relating to portfolio
  investments |  |                                           |           |                                    |   |                       |   |       | (21,156     | ) |   | (21,156     | )
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Total Investment income, net                                |  |                                           |           |                                    |   |                       |   |       | 3,141,776   |   |   | 3,141,776   |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Other income (expense)                                      |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Interest expense, net                                       |  |                                           | (8,604     | )                                  |   |                       |   |       | (6,948      | ) |   | (15,552     | )
|Other income                                                |  |                                           | 2,869      |                                    |   |                       |   |       |            |   |   | 2,869       |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Total other income (expense)                                |  |                                           | (5,735     | )                                  |   |                       |   |       | (6,948      | ) |   | (12,683     | )
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Income (loss) before income taxes                           |  |                                           | (1,120,833 | )                                  |   | (109,153               | ) |       | 3,134,828   |   |   | 1,904,842   |  
|Income tax expense                                          |  |                                           |           |                                    |   |                       |   |       | 400,000     |   |   | 400,000     |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Net income (loss)                                           |  | $                                         | (1,120,833 | )                                  | $ | (109,153               | ) | $     | 2,734,828   |   | $ | 1,504,842   |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                    |   |                        |   |       |             |   |   |             |  
|Depreciation and amortization                               |  | $                                         | 79,234     |                                    | $ | 8,160                  |   | $     |            |   | $ | 87,394      |  
|Interest income                                             |  | $                                         |           |                                    | $ |                       |   | $     | 19,976      |   | $ | 19,976      |  
|Capital expenditures                                        |  | $                                         | 27,097     |                                    | $ | 12,263                 |   | $     |            |   | $ | 39,360      |  
|Total assets                                                |  | $                                         | 2,771,270  |                                    | $ | 222,017                |   | $     | 101,281,431 |   | $ | 104,274,718 |  

12

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

The
following table summarizes the results of each segment described above for the
six months ended June 30, 2009 (unaudited).

|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|----------------------------------------------------------- |  | ----------------------------------------- | ---------- | ------------------------------------ | - | ---------------------- | - | ----- | ---------- | - | - | ---------- | -
|                                                            |  | June 30, 2009                             |           
|                                                            |  |                                           |           
|                                                            |  | Equipment 
  Sales &
  Related
  Services |            | Cryobanking 
  & Related 
  Services |   | Investment 
  Activity |   | Total |           
|                                                            |  |                                           |            |                                      |   |                        |   |       |           
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Revenues                                                    |  | $                                         | 638,598    |                                      | $ | 175,859                |   | $     |           |   | $ | 814,457    |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Expenses                                                    |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Cost of sales                                               |  |                                           | 332,349    |                                      |   | 22,205                 |   |       |           |   |   | 354,554    |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Research and development expenses                           |  |                                           | 1,171,651  |                                      |   | 94,411                 |   |       |           |   |   | 1,266,062  |  
|Selling, general and administrative
  expenses              |  |                                           | 1,290,491  |                                      |   | 363,952                |   |       |           |   |   | 1,654,443  |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Total Expenses                                              |  |                                           | 2,794,491  |                                      |   | 480,568                |   |       |           |   |   | 3,275,059  |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Operating loss                                              |  |                                           | (2,155,893 | )                                    |   | (304,709               | ) |       |           |   |   | (2,460,602 | )
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Investment income, net                                      |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Dividends                                                   |  |                                           |           |                                      |   |                       |   |       | 1,623,509  |   |   | 1,623,509  |  
|Gain on sales of securities, net                            |  |                                           |           |                                      |   |                       |   |       | 5,514,477  |   |   | 5,514,477  |  
|Mark to market of short positions                           |  |                                           |           |                                      |   |                       |   |       | 713,894    |   |   | 713,894    |  
|Administrative expenses relating to
  portfolio investments |  |                                           |           |                                      |   |                       |   |       | (63,300    | ) |   | (63,300    | )
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Total Investment income, net                                |  |                                           |           |                                      |   |                       |   |       | 7,788,580  |   |   | 7,788,580  |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Other income (expense)                                      |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Interest expense, net                                       |  |                                           | (15,775    | )                                    |   |                       |   |       | (111,752   | ) |   | (127,527   | )
|Other income                                                |  |                                           | 5,927      |                                      |   |                       |   |       |           |   |   | 5,927      |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Total Other Income (Expense)                                |  |                                           | (9,848     | )                                    |   |                       |   |       | (111,752   | ) |   | (121,600   | )
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Income (loss) before income taxes                           |  |                                           | (2,165,741 | )                                    |   | (304,709               | ) |       | 7,676,828  |   |   | 5,206,378  |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Income tax expense                                          |  |                                           | 30,000     |                                      |   | 1,000                  |   |       | 479,967    |   |   | 510,967    |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Net income (loss)                                           |  | $                                         | (2,195,741 | )                                    | $ | (305,709               | ) | $     | 7,196,861  |   | $ | 4,695,411  |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|                                                            |  |                                           |            |                                      |   |                        |   |       |            |   |   |            |  
|Depreciation and amortization                               |  | $                                         | 123,602    |                                      | $ | 18,209                 |   | $     |           |   | $ | 141,811    |  
|Interest income                                             |  | $                                         |           |                                      | $ |                       |   | $     | 6,526      |   | $ | 6,526      |  
|Capital expenditures                                        |  | $                                         | 1,498,225  |                                      | $ |                       |   | $     |           |   | $ | 1,498,225  |  
|Total assets                                                |  | $                                         | 4,553,201  |                                      | $ | 192,426                |   | $     | 70,173,256 |   | $ | 74,918,883 |  

13

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued) 
(Unaudited)

The following
table summarizes the results of each segment described above for the six months
ended June 30, 2008 (unaudited)

|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|----------------------------------------------------------- |  | ----------------------------------------- | ---------- | ----------------------------------- | - | ---------------------- | - | ----- | ----------- | - | - | ----------- | -
|                                                            |  | June 30, 2008                             |           
|                                                            |  |                                           |           
|                                                            |  | Equipment 
  Sales &
  Related
  Services |            | Cryobanking
  & Related 
  Services |   | Investment 
  Activity |   | Total |            
|                                                            |  |                                           |            |                                     |   |                        |   |       |            
|                                                            |  |                                           |            |                                     |   |                        |   |       |            
|Revenues                                                    |  | $                                         | 791,778    |                                     | $ | 185,722                |   | $     |            |   | $ | 977,500     |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Expenses                                                    |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Cost of sales                                               |  |                                           | 302,790    |                                     |   | 23,726                 |   |       |            |   |   | 326,516     |  
|Research and development expenses                           |  |                                           | 1,174,288  |                                     |   | 95,396                 |   |       |            |   |   | 1,269,684   |  
|Selling, general and administrative
  expenses              |  |                                           | 1,574,536  |                                     |   | 299,816                |   |       |            |   |   | 1,874,352   |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Total Expenses                                              |  |                                           | 3,051,614  |                                     |   | 418,938                |   |       |            |   |   | 3,470,552   |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Operating loss                                              |  |                                           | (2,259,836 | )                                   |   | (233,216               | ) |       |            |   |   | (2,493,052  | )
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Investment income                                           |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Dividends                                                   |  |                                           |           |                                     |   |                       |   |       | 1,182,501   |   |   | 1,182,501   |  
|Gain on sales of securities, net                            |  |                                           |           |                                     |   |                       |   |       | 8,475,471   |   |   | 8,475,471   |  
|Mark to market of short positions                           |  |                                           |           |                                     |   |                       |   |       | 2,142,782   |   |   | 2,142,782   |  
|Administrative expenses relating to
  portfolio investments |  |                                           |           |                                     |   |                       |   |       | (42,570     | ) |   | (42,570     | )
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Total Investment income, net                                |  |                                           |           |                                     |   |                       |   |       | 11,758,184  |   |   | 11,758,184  |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Other income (expense)                                      |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Interest expense, net                                       |  |                                           | (17,288    | )                                   |   |                       |   |       | (27,779     | ) |   | (45,067     | )
|Other income                                                |  |                                           | 5,739      |                                     |   | 46                     |   |       |            |   |   | 5,785       |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Total other income (expense)                                |  |                                           | (11,549    | )                                   |   | 46                     |   |       | (27,779     | ) |   | (39,282     | )
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Income (loss) before income taxes                           |  |                                           | (2,271,385 | )                                   |   | (233,170               | ) |       | 11,730,405  |   |   | 9,225,850   |  
|Income tax expense                                          |  |                                           |           |                                     |   |                       |   |       | 400,000     |   |   | 400,000     |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Net income (loss)                                           |  | $                                         | (2,271,385 | )                                   | $ | (233,170               | ) | $     | 11,330,405  |   | $ | 8,825,850   |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|                                                            |  |                                           |            |                                     |   |                        |   |       |             |   |   |             |  
|Depreciation and amortization                               |  | $                                         | 143,005    |                                     | $ | 13,048                 |   | $     |            |   | $ | 156,053     |  
|Interest income                                             |  | $                                         |           |                                     | $ |                       |   | $     | 31,161      |   | $ | 31,161      |  
|Capital expenditures                                        |  | $                                         | 86,808     |                                     | $ | 84,554                 |   | $     |            |   | $ | 171,362     |  
|Total assets                                                |  | $                                         | 2,771,270  |                                     | $ | 222,017                |   | $     | 101,281,431 |   | $ | 104,274,718 |  

14

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 
June 30, 2009 and June 30, 2008 (Continued)
(Unaudited)

(4) PROPERTY
AND EQUIPMENT

|                                                                                |  |                 |            |                     |   |            |  
|------------------------------------------------------------------------------- |  | --------------- | ---------- | ------------------- | - | ---------- | -
|                                                                                |  | UNAUDITED       |            |                     |  
|Property and equipment as at June 30, 2009
  and December 31, 2008 consists of: |  | June 30,
  2009 |            | December 31,
  2008 |  
|                                                                                |  |                 |            |                     |  
|                                                                                |  |                 |            |                     |  
|Machinery and equipment                                                         |  | $               | 1,449,646  |                     | $ | 1,431,842  |  
|BVA Equipment on trial                                                          |  |                 | 612,000    |                     |   | 578,000    |  
|Land and Land Improvements                                                      |  |                 | 196,991    |                     |   | 196,991    |  
|Buildings                                                                       |  |                 | 598,422    |                     |   | 598,422    |  
|Furniture and fixtures                                                          |  |                 | 369,205    |                     |   | 364,732    |  
|Construction in process                                                         |  |                 | 1,577,269  |                     |   | 311,152    |  
|Leasehold improvements                                                          |  |                 | 611,565    |                     |   | 611,565    |  
|                                                                                |  |                 |            |                     |   |            |  
|Total Cost                                                                      |  | $               | 5,415,098  |                     | $ | 4,092,704  |  
|Accumulated depreciation and amortization                                       |  |                 | (1,750,129 | )                   |   | (1,784,149 | )
|                                                                                |  |                 |            |                     |   |            |  
|Property and equipment, net                                                     |  | $               | 3,664,969  |                     | $ | 2,308,555  |  
|                                                                                |  |                 |            |                     |   |            |  

Depreciation
expense for the three months ended June 30, 2009 and June 30, 2008 was $68,238
and $87,394, respectively.

Depreciation
expense for the six months ended June 30, 2009 and June 30, 2008 was $141,811
and $156,053 respectively.

(5) LOANS AND
MORTGAGE PAYABLE

LOANS
PAYABLE

At
June 30, 2009 and December 31, 2008, the Company has a bank note payable of $0
and $1,035,000 respectively which was classified as a current liability at
December 31, 2008. The note expired on May 27, 2009 and was not renewed.

Short-term
debt to brokers (margin debt), is secured by the Companys marketable
securities, and totaled $15,493,695 at June 30, 2009 and $12,017,162 at
December 31, 2008. The interest rates on the Companys margin debt at June 30,
2009 ranged from 1.07% to 1.75%.

MORTGAGE
PAYABLE

Daxor
financed the purchase of the land and buildings in Oak Ridge, Tennessee with a
$500,000 10-year mortgage, with the first five years fixed at 7.49%. On January
2, 2012, there is a single payment of $301,972 for the remaining principal and
interest on the mortgage. The Company has the option of making this payment or
refinancing the mortgage for an additional five year term at a fixed rate of
interest that would be set on January 2, 2012.

The future
payments of principal on the mortgage by twelve month period end are as
follows:

|              |        |               |   |               |  |       |         |  |   |         | 
|------------- | ------ | ------------- | - | ------------- |  | ----- | ------- |  | - | ------- | 
|June 30, 2010 |        | June 30, 2011 |   | June 30, 2012 |  | Total |        
|              |        |               |   |               |  |       |        
|              |        |               |   |               |  |       |        
|$             | 41,835 |               | $ | 45,078        |  | $     | 323,866 |  | $ | 410,779 | 

(6) PUT AND
CALL OPTIONS AT FAIR VALUE

As
part of the companys investment strategy, put and call options are sold on
various stocks the company is willing to buy or sell. The premiums received are
deferred until such time as they are exercised or expire. In accordance with
SFAS No. 133 - Accounting for Derivative
Instruments and Hedging Activities,these options are marked to
market for each reporting period using readily available market quotes, and
this fair value adjustment is recorded as a gain or loss in the Statement of
Operations.

Upon
exercise, the value of the premium will adjust the basis of the underlying
security bought or sold. Options that expire are recorded as income in the
period they expire.

15

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2009 and June 30, 2008 (Continued)
(Unaudited)

For
the three months ended June 30, 2009 and June 30, 2008, the Company recorded
gains from marking put and call options to market of $7,033,891 and $224,723
respectively. These amounts are included in the Statements of Operations as
part of mark to market of short positions.

For
the six months ended June 30, 2009 and June 30, 2008, the Company recorded
gains from marking put and call options to market of $772,866 and $679,727
respectively. These amounts are included in the Statements of Operations as
part of mark to market of short positions.

All
proceeds of the put and call options which are equity contracts are shown net
of the mark to market adjustment in the current liability section of the
balance sheet as Put and call options, at fair value.

The following summarizes the
Companys Put and Call Options as of June 30, 2009 (unaudited) and December 31,
2008:

|                       |  |               |            |                     |   |                   |  |   |           | 
|---------------------- |  | ------------- | ---------- | ------------------- | - | ----------------- |  | - | --------- | 
|Put and
  Call Options |  | Selling Price |            | Fair Market
  Value |   | Unrealized
  Gain | 
|                       |  |               |            |                     |   |                   | 
|June 30, 2009          |  | $             | 11,888,060 |                     | $ | 5,727,577         |  | $ | 6,160,483 | 
|December 31, 2008      |  | $             | 13,811,975 |                     | $ | 8,424,359         |  | $ | 5,387,616 | 

(7) SECURITIES BORROWED AT
FAIR VALUE

At
June 30, 2009 and June 30, 2008, the Company maintained short positions in
certain marketable securities. The liability for short sales of securities is
included in Securities borrowed at fair market value in the accompanying
balance sheets. The cost basis of these positions or proceeds for these short
sales was $182,472 and $22,907,167 at June 30, 2009 and June 30, 2008. The
respective market values of these positions were $255,745 and $22,979,181 as of
June 30, 2009 and June 30, 2008.

(8) CURRENT INCOME TAXES

Under FASB No.
109, the Company accrues income taxes in interim periods based upon its
estimated annual effective tax rate.

The
current income tax expense for the three and six months ended June 30, 2009 and
2008 is comprised of the following:

|                                                |  |                                         |          |                                         |   |         | 
|----------------------------------------------- |  | --------------------------------------- | -------- | --------------------------------------- | - | ------- | 
|                                                |  | Three Months
  Ended
  June 30, 
  2009 |          | Three Months
  Ended
  June 30, 
  2008 |  
|Regular tax and Alternative Minimum Tax
  (AMT) |  | $                                       | (123,413 | )                                       | $ |        | 
|Personal Holding Company Tax (PHC)              |  |                                         | (60,000  | )                                       |   | 400,000 | 
|State Franchise Taxes                           |  |                                         | 23,500   |                                         |   |        | 
|                                                |  |                                         |          |                                         |   |         | 
|Total Current Income Tax Provision              |  |                                         | (159,913 | )                                       |   | 400,000 | 
|Deferred Income Taxes                           |  |                                         | 546,106  |                                         |   |        | 
|                                                |  |                                         |          |                                         |   |         | 
|Total Income Tax Expense                        |  | $                                       | 386,193  |                                         | $ | 400,000 | 
|                                                |  |                                         |          |                                         |   |         | 

16

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2009 and June 30, 2008 (Continued)
(Unaudited)

|                                                |  |                                       |            |                                       |   |         | 
|----------------------------------------------- |  | ------------------------------------- | ---------- | ------------------------------------- | - | ------- | 
|                                                |  | Six Months
  Ended
  June 30, 
  2009 |            | Six Months
  Ended
  June 30, 
  2008 |  
|Regular tax and Alternative Minimum Tax
  (AMT) |  | $                                     | 1,521,587  |                                       | $ |        | 
|Personal Holding Company Tax (PHC)              |  |                                       | 605,000    |                                       |   | 400,000 | 
|State Franchise Taxes                           |  |                                       | 31,000     |                                       |   |        | 
|                                                |  |                                       |            |                                       |   |         | 
|Total Current Income Tax Provision              |  |                                       | 2,157,587  |                                       |   | 400,000 | 
|Deferred Income Taxes                           |  |                                       | (1,646,620 | )                                     |   |        | 
|                                                |  |                                       |            |                                       |   |         | 
|Total Income Tax Expense                        |  | $                                     | 510,967    |                                       | $ | 400,000 | 
|                                                |  |                                       |            |                                       |   |         | 

(9) DEFERRED INCOME TAXES

The deferred income tax
liability at June 30, 2009 and December 31, 2008 is comprised of the following:

|                                                                   |  |                              |           |                       |   |           | 
|------------------------------------------------------------------ |  | ---------------------------- | --------- | --------------------- | - | --------- | 
|                                                                   |  | Unaudited
  June 30, 
  2009 |           | December
  31,
  2008 |  
|                                                                   |  |                              |           |                       |  
|Fair market value
  adjustment for available -for -sale securities |  | $                            | 4,995,777 |                       | $ | 6,170,340 | 
|Mark to market short
  positions                                   |  |                              | 249,863   |                       |   | 1,896,483 | 
|                                                                   |  |                              |           |                       |   |           | 
|                                                                   |  | $                            | 5,245,640 |                       | $ | 8,066,823 | 
|                                                                   |  |                              |           |                       |   |           | 

The
deferred tax liability that results from the marketable securities does not
flow through the Statement of Operations due to the classification of the
marketable securities as available-for-sale. Instead, any increase or decrease
in the deferred tax liability is recorded as an adjustment to Accumulated Other
Comprehensive Income which is in the Stockholders Equity section of the
Balance Sheet.

(10) CERTAIN CONCENTRATIONS
AND CONTINGENCIES

Financial
instruments which potentially subject the Company to concentrations of credit
risk consist primarily of the common stock of marketable electric utilities. At
June 30, 2009, stocks representing 98.15% of the market value of common stocks
held by the Company were listed on the New York Stock Exchange (NYSE). The
Company maintains its investments in five different brokerage accounts, four at
UBS and one at TD Ameritrade. UBS and TD Ameritrade provide supplemental
insurance up to the face value of the securities in excess of the SIPC limit of
$500,000.

Both
of these brokerage houses is well known in the industry and management does not
believe that these securities bear any risk of loss over and above the basic
risk that a security bears through the normal activity of the securities
markets. However, as at June 30, 2009 the fair market value of securities in
excess of the SIPC insured limit is $14,657,503 and the cash on deposit in
excess of the insured limit is $0.

For
the three months ended June 30, 2009, the sales of Blood Volume Kits accounted
for 76.67% of the Companys total consolidated operating revenue. There were
four customers (hospitals) that accounted for 58.13% of the Companys sales of
Blood Volume Kits.

For
the three months ended June 30, 2008, the sales of Blood Volume Kits accounted
for 47.70% of the Companys total consolidated operating revenue. There were
four customers (hospitals) that accounted for 54.06% of the Companys sales of
Blood Volume Kits.

17

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2009 and June 30, 2008 (Continued)
(Unaudited)

For
the six months ended June 30, 2009, the sales of Blood Volume Kits accounted
for 75.06% of the Companys total consolidated operating revenue. There were
four customers (hospitals) that accounted for 61.33% of the Companys sales of
Blood Volume Kits.

For
the six months ended June 30, 2008, the sales of Blood Volume Kits accounted
for 55.37% of the Companys total consolidated operating revenue. There were
four customers (hospitals) that accounted for 52.22% of the Companys sales of
Blood Volume Kits.

Management
believes that the loss of any one of these customers would have an adverse
effect on the Companys consolidated business for a short period of time. All
of these four hospitals have purchased their BVA-100 equipment. The Company has
not had any situations in which a hospital, after having purchased a blood
volume analyzer, discontinued purchasing Volumex kits. This suggests that, when
more hospitals purchase equipment, they will continue with ongoing purchase of
Volumex kits. The Company continues to seek new customers, so that any one
hospital will represent a smaller percentage of overall sales.

As
disclosed in previous filings, the Centers for Medicare and Medicaid Services
(CMS) implemented a significant policy change affecting the reimbursement for
all diagnostic radiopharmaceutical products and contrast agents which was
effective as of January 1, 2008. Diagnostic radiopharmaceuticals such as
Daxors Volumex will not be separately reimbursable by Medicare for outpatient
services. At this time, it is unclear if this policy change will also be
implemented by private third party health insurance companies.

The
United States Congress is currently considering enacting a National Health
Insurance Plan. At this time, it is unclear how a National Health Insurance
Plan would affect our operating income. This is because we do not know what
form a plan would take or if and when it will be passed. For example, if
expanded coverage is mandated, this could benefit Daxor but if reimbursement is
further reduced, this would not be beneficial.

The
Companys Volumex syringes are filled by an FDA approved radio pharmaceutical
manufacturer. This manufacturer is the only one approved by the FDA in the
United States to manufacture Volumex for interstate commerce. If this
manufacturer were to cease filling the Volumex syringes for Daxor, the Company
would have to make alternative arrangements to insure a supply of Volumex. The
effect of such a disruption on Daxors business could be material.

In
November 2005, the Company received a Wells Notice from the United States
Securities and Exchange Commission (SEC) with respect to its activities as an
unregistered investment company. The Company responded in January and May 2006
by demonstrating that its investments, consisting of a portfolio primarily of
utilities securities, have been a conservative strategy and were intended to
preserve, and have succeeded in preserving, the Companys capital(i.e.,
capital preservation investments as defined in Rule 3a-8 of the Investment
Company Act of 1940). The Company has not received a closing notice or other
substantive response from the SEC to its 2006 submissions. No conclusions
regarding disposition of our cash management policy should be drawn from the
lack of a closing notice or other substantive response to our submissions of
January and May 2006.

By
a letter dated February 8, 2007, the staff of the Northeast Regional Office of
the SEC advised Dr. Joseph Feldschuh, the President and Chief Executive Officer
of Daxor that it is recommending that the SEC bring action against Dr.
Feldschuh and Daxor Corporation for violation of Section 7(a) of the Investment
Company Act. The Company responded to the SEC on March 9, 2007. The Company has
not received a closing notice or other substantive response from the SEC to its
March 9, 2007 submission.

By
a letter dated May 27, 2009, the staff of the Division of Corporate Finance of
the SEC advised Dr. Joseph Feldschuh, the President and Chief Executive Officer
of Daxor that they had certain comments and questions regarding our Form 10-K
for the period ended December 31, 2008 and our Form 10-Q for the period ended
March 31, 2009. The Company filed a response to the SEC notice on July 8, 2009.
The Company received an answer to our response from the SEC on August 4, 2009
and intends to file a response to the SEC after the filing of the 10-Q for the
Quarter ended June 30, 2009.

(11) RELATED PARTY
TRANSACTIONS

The
Company subleases a portion of its New York City office space to the President
of the Company for five hours per week. This sublease agreement has no formal
terms and is executed on a month to month basis.

The
amount of rental income received from the President of the Company for the three months
ended June 30, 2009 and June 30, 2008 was $2,964 and $2,869.

The
amount of rental income received from the President of the Company for the six
months ended June 30, 2009 and June 30, 2008 was $5,927 and $5,785.

18

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2009 and June 30, 2008 (Continued)
(Unaudited)

During
the six months ended June 30, 2009, the President of the Company loaned a total
of $1,140,000 to the Company in a series of advances ranging from $40,000 to
$500,000. The loan due to the President of the Company never exceeded $650,000
and all advances were repaid within two weeks without interest.

Jonathan
Feldschuh is the co-inventor of the BVA-100 Blood Volume Analyzer and is the
son of Dr. Joseph Feldschuh, the Chief Executive Officer and President of
Daxor. He was paid $18,720 annually for the years ended December 31, 2008 and
2007. Jonathan Feldschuh is expected to provide a limited amount of
consultative help in the filing of the additional patents in 2009.

(12) RESEARCH AND
DEVELOPMENT COSTS

All
research and development costs, as defined in SFAS No. 2  Accounting for Research and Development Costs,
are expensed in the period they are incurred.

The
total research and development costs for the three months ended June 30, 2009
and June 30, 2008 were $671,090 and $662,133, respectively.

The
total research and development costs for the six months ended June 30, 2009 and
June 30, 2008 were $1,266,062 and $1,269,684, respectively.

(13) RECENTLY ISSUED
ACCOUNTING PRONOUNCEMENTS

In
June 2009, the FASB issued SFAS No. 168- The FASB Accounting Standards
Codification and the Hierarchy of Generally Accepted Accounting Principles
(SFAS 168). SFAS 168 identifies the FASB Accounting Standards Codification as
the authoritative source of generally accepted accounting principles in the
United States. Rules and interpretive releases of the Securities and Exchange
Commission under federal securities laws are also sources of authoritative GAAP
for SEC registrants. SFAS 168 is effective for financial statements issued for
interim and annual periods ending after September 15, 2009. We do not expect
adoption to have a material impact on our consolidated financial statements.

In
April 2009, the FASB issued SFAS No. 165- Subsequent Events (SFAS 165).
SFAS No. 165 establishes general standards of accounting for and disclosure of
events that occur after the balance sheet date but before financial statements
are issued or available to be issued. We adopted SFAS No. 165 for the quarter
ending June 30, 2009. Adoption did not have a material impact on our
consolidated financial statements.

Management
does not believe that any other recently issued, but not yet effective,
accounting standard if currently adopted would have a material effect on the
accompanying financial statements.

19

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ITEM
2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

CAUTION
REGARDING FORWARD-LOOKING STATEMENTS

The
following discussion of the our financial condition and results of our
operations should be read in conjunction with the Condensed Consolidated
Financial Statements and Notes thereto included elsewhere in this Quarterly
Report on Form 10-Q and our Annual Report on Form 10-K for the year ended December
31, 2008. This Quarterly Report on Form 10-Q contains forward-looking
statements based on our current expectations, assumptions, estimates and
projections about us and our industry. These forward-looking statements are
usually accompanied by words such as believes, may, should,
anticipates, estimates, expects, future, intends, hopes,
plans,
and similar expressions, and the negative thereof. Forward-looking statements
involve risks and uncertainties and our actual results may differ materially
from the results anticipated in these forward-looking statements as a result of
certain factors.

BUSINESS
OVERVIEW

Daxor
Corporation is a medical device manufacturing company that offers additional
biotech services, such as cryobanking, through its wholly owned subsidiary
Scientific Medical Systems Corp. The main focus of Daxor Corporation has been
the development and marketing of an instrument that rapidly and accurately
measures human blood volume. This instrument is used in conjunction with a
single use diagnostic injection and collection kit that the Company also sells
to its customers.

RECENT DEVELOPMENTS

Daxor
has actively engaged in participating in several clinical trials in three
strategic areas: Intensive Critical Care Medicine, Heart Failure/Hypertension
and Dialysis. Of the five current clinical trials, one has recently been
completed, Blood Volume Analysis
in treating ICU Patients  A Prospective, Randomized Outcome Study.
The basis of this study was to investigate if the inclusion of a measured blood
volume analysis from Daxors BVA-100 would result in (1) a change in treatment;
(2) improved clinical outcomes; and (3) reductions in the cost of care. Results
of this study are expected to be published sometime prior to the first quarter
of 2010.

Daxor
is also coordinating its first multi-center, prospective, blinded outcome study
in heart failure. The TEAM HF (Treatment to Euvolemia by Assessment and
Measured Blood Volume in Heart Failure) will be comprised of nine (9) medical
centers and a total of 300 patients. This study will investigate if utilizing a
measured blood volume while treating heart failure patients following a
hospital stay will decrease a patients need to revisit the hospital, decrease
the mortality rate and improve their overall treatment and quality of life
while living with heart failure. In our Form 10-Q for the quarter ended March
31, 2009, filed on May 12, 2009 we announced an expected start date of July
2009 for this study. We are now expecting the start date to be September 2009.

RESULTS OF OPERATIONS

Three months ended June 30,
2009 as compared with three months ended June 30, 2008:

Operating
Revenues and Expenses

For
the three months ended June 30, 2009, consolidated operating revenues decreased
to $380,420 from $556,587 for the same period in 2008, a decrease of $176,167
or 31.65%. This was mainly due to no Blood Volume Analyzers being sold during
the current quarter versus three during the same period last year for a total
of $195,000.

For
the three months ended June 30, 2009, revenue from Blood volume kit sales
increased by $7,994 or 3.24% to $254,814 from $246,820 for the same period in
2008. This can mainly be attributed to an increase in the number of kits sold
from 771 in 2008 to 880 during the current period for an increase of 14.14%.
There were 56 Blood Volume Analyzers placed at June 30, 2009 versus 52 at June
30, 2008. For the three months ended June 30, 2009, the Company provided 99
Volumex doses free of charge to facilities utilizing the BVA-100 for research
versus 162 during the same period in 2008.

20

---



The following tables provide
gross margin information on Equipment Sales & Related Services for the
three months ended June 30, 2009 and 2008:

|                                        |  |                                              |         |                                                              |   |                                          |    |   |         |  
|--------------------------------------- |  | -------------------------------------------- | ------- | ------------------------------------------------------------ | - | ---------------------------------------- | -- | - | ------- | -
|Equipment
  Sales and Related Services: |  | Kit
  Sales Three Months Ended June 30, 2009 |         | Equipment
  Sales and Other Three Months Ended June 30, 2009 |   | Total
  Three Months Ended June 30, 2009 |   
|                                        |  |                                              |         |                                                              |   |                                          |   
|Revenue                                 |  | $                                            | 254,814 |                                                              | $ | 38,821                                   |    | $ | 293,635 |  
|Cost of Goods Sold                      |  |                                              | 114,920 |                                                              |   | 77,390                                   |    |   | 192,310 |  
|                                        |  |                                              |         |                                                              |   |                                          |    |   |         |  
|Gross Profit (Loss)                     |  | $                                            | 139,894 |                                                              | $ | (38,569                                  | )  | $ | 101,325 |  
|                                        |  |                                              |         |                                                              |   |                                          |    |   |         |  
|Gross Profit (Loss)
  Percentage        |  |                                              | 54.9    | %                                                            |   | (99.4                                    | )% |   | 34.5    | %

|                                        |  |                                              |         |                                                              |   |                                          |   |   |         |  
|--------------------------------------- |  | -------------------------------------------- | ------- | ------------------------------------------------------------ | - | ---------------------------------------- | - | - | ------- | -
|Equipment
  Sales and Related Services: |  | Kit
  Sales Three Months Ended June 30, 2008 |         | Equipment
  Sales and Other Three Months Ended June 30, 2008 |   | Total
  Three Months Ended June 30, 2008 |  
|                                        |  |                                              |         |                                                              |   |                                          |  
|Revenue                                 |  | $                                            | 246,820 |                                                              | $ | 221,178                                  |   | $ | 467,998 |  
|Cost of Goods Sold                      |  |                                              | 120,100 |                                                              |   | 44,076                                   |   |   | 164,176 |  
|                                        |  |                                              |         |                                                              |   |                                          |   |   |         |  
|Gross Profit                            |  | $                                            | 126,720 |                                                              | $ | 177,102                                  |   | $ | 303,822 |  
|                                        |  |                                              |         |                                                              |   |                                          |   |   |         |  
|Gross Profit Percentage                 |  |                                              | 51.3    | %                                                            |   | 80.0                                     | % |   | 64.9    | %

The
additional revenues for Equipment Sales and Other during the current and
previous quarters consist almost entirely of shipping charges and service
contract revenue.

The
Company had a gross loss of ($38,569) on Equipment Sales and Other for the
three months ended June 30, 2009 versus a gross profit for the three months
ended June 30, 2008 of $177,102. The reason for the difference is that three
Blood Volume Analyzers were sold during the second quarter of 2008 for a total
of $195,000 versus no machines sold during the current three month period. The
Company still incurs costs for items such as convenience kit production and
related supplies even when Blood Volume Analyzers are not sold.

Total
S,G&A (selling, general and administrative) and R&D (Research and
Development) costs for Equipment Sales and Related Services were $1,283,180 for
the three months ended June 30, 2009 versus $1,418,920 for the same period in
2008, for a decrease of $135,740 or 9.56%. The main reason for this was
decreased payroll and related costs of $108,365 for the three months ended June
30, 2009 as compared to the same period in 2008.

Research
& Development expenses for Equipment Sales and Related Services were
$624,058 for the three months ended June 30, 2009 versus $614,979 for the same
period in 2008 for an increase of $9,079 or 1.48%. Daxor is committed to making
Blood Volume Analysis a standard of care in at least three different disease
states. In order to achieve this goal, we are continuing to spend time and
money in research and development to get the best product to the market. We are
still working on the following three projects: 1) GFR: Glomerular Filtration
Rate, 2) Total Body Albumin Analysis, and 3) Wipes tests for radiation
contamination/detection. We are also progressing on the next version of the
delivery device for the radioactive dose Volumex. The current version is the
Max-100 which has a patent. The next version, the Max-200 will be without a
needle and should afford the company extended protection with a second patent
when it is completed.

Operating
revenues for the Cryobanking segment, which includes both blood banking and
semen banking, decreased to $86,785 in 2009 from $88,589 in 2008, for a
decrease of $1,804 or 2.03%. The main reason for this was a decrease in Semen
Analysis fees of $2,280 for the three months ended June 30, 2009 as compared to
2008.

Total
S,G&A (selling, general and administrative) and R&D (Research and
Development) costs for the Cryobanking and related services segment were
$241,260 for the three months ended June 30, 2009 versus $187,416 for the same
period in 2008, for an increase of $53,844 or 28.73%. The main reason for this
was an increase of $35,624 in professional fees attributable to a non-material
legal action.

Consolidated
Operating Expenses

The
total consolidated operating expenses including cost of sales for the second
quarter of 2009 were $1,726,526 versus $1,780,838 in 2008 for a decrease of
$54,312 or 3.04% which is mainly attributable to a reduction in payroll and
related expenses of $43,020.

21

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INVESTMENT PORTFOLIO

Dividend
Income

Dividend
income earned on the Companys security portfolio for the three months ended
June 30, 2009 was $636,412 versus $551,719 for the same period in 2008 for an
increase of $84,693 or 15.35%. The main reason for this increase is that the
Company owned additional dividend paying stocks during the quarter ended June
30, 2009 versus the quarter ended June 30, 2008.

Investment
Gains (Losses)

Gains
on the sale of investments were $444,036 for the three months ended June 30,
2009 versus $2,644,472 for the same period in 2008 for a decrease of $2,200,436
or 83.21%. For the current quarter, the Company had a gain from the marking to
the market of short positions of stocks and put and call options of $6,978,825
versus a loss of ($33,259) for the same period in 2008. Interest expense net of
interest income was $59,828 for the three months ended June 30, 2009 versus
$15,552 for the three months ended June 30, 2008. Administrative expenses
relating to portfolio investments were $31,414 in 2008 versus $ 21,156 for the
same period in 2008.

LIQUIDITY AND CAPITAL
RESOURCES

The
Companys management has pursued a policy of maintaining sufficient liquidity
and capital resources in order to assure continued availability of necessary
funds for the viability and projected growth of all ongoing projects.

As
of June 30, 2009, cash and cash equivalents totaled $234,371 versus $2,545,040
at December 31, 2008. Cash used in operating activities was $3,671,440 for the
six month period ended June 30, 2009. The decrease in cash and cash equivalents
was primarily due to funding the operating loss for the current six month
period.

Cash
used in investing activities was $2,798,257 for the six months ended June 30,
2009. The decrease is attributable to the acquisition of property and equipment
of $1,498,225 during the current six month period, of which $1,420,900 is for
the construction project at 109 Meco Lane and the Companys investment
activities of $1,300,032.

In
November of 2008, a construction project commenced at 109 Meco Lane. Management
expects the project to be completed by the end of 2009 and the total cost to be
approximately $1,800,000. The project involves the construction of laboratory
and office space.

A
total of $4,159,028 of cash was provided during the current six month period
from financing activities and this was primarily due to the proceeds obtained
from margin loans payable.

During
the six months ended June 30, 2009, the President of the Company loaned a total
of $1,140,000 to the Company in a series of advances ranging from $40,000 to
$500,000. The loan due to the President of the Company never exceeded $650,000
and all advances were repaid within two weeks without interest.

The
Companys investment portfolio has been a critical source of supplemental
income to partially offset the continuing losses from operations. Without the
income from the investment portfolio, the Company would have needed to raise
additional operating funds through either debt or equity financing or a
combination of the two. The Companys portfolio has maintained a net value
above historical cost for each of the past 98 consecutive quarters.

The Companys investment
goals, strategies and policies are as follows:

| |    |                                                                                                                                                                                                                   | 
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
| | 1. | The Companys investment
  goals are capital preservation, maintaining returns on capital with a high
  degree of safety and generating income from dividends and option sales to
  help offset operating losses.

22

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| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2. | In order to achieve these
  goals, the Company maintains a diversified securities portfolio comprised
  primarily of electric utility common and preferred stocks. The Company also
  sells covered calls on portions of its portfolio and also sells puts on
  stocks it is willing to own. It also sells uncovered calls and may have net
  short positions in common stock up to 15% of the value of the portfolio. The
  Companys net short position may temporarily rise to 15% of the Companys
  portfolio without any specific action because of changes in valuation, but
  should not exceed this amount. The Companys investment policy is to maintain
  a minimum of 80% of its portfolio in electric utilities. The Board of
  Directors has authorized this minimum to be temporarily lowered to 70% when
  Company management deems it to be necessary. Investments in utilities are
  primarily in electric companies. Investments in non-utility stocks will
  generally not exceed 20% of the value of the portfolio.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 3. | Investment in speculative
  issues, including short sales, maximum of 15%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 4. | Limited use of options to
  increase yearly investment income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    | a.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | The use of
  Call Options. Covered options can be sold up to a
  maximum of 20% of the value of the portfolio. This provides extra income in
  addition to dividends received from the companys investments. The risk of
  this strategy is that investments may be called away, which the company may
  have preferred to retain. Therefore, a limitation of 20% is placed on the
  amount of stock on which options can be written. The amount of the portfolio
  on which options are actually written
  is usually between 3-10% of the portfolio. The historical turnover of the
  portfolio is such that the average holding period is in excess of five years
  for available for sale securities.                                                                                                                                                                                                                                                                                                             
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    | b.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | The use of Put options. Put options are written on stocks which
  the company is willing to purchase. While the company does not have a high
  rate of turnover in its portfolio, there is some turnover; for example, due to preferred stocks being called back by the
  issuing company, or stocks being called away because call options have been
  written. If the stock does not go below the put exercise price, the company
  records the proceeds from the sale as income. If the put is exercised, the
  cost basis is reduced by the proceeds received from the sale of the put
  option. There may be occasions where the cost basis of the stock is lower
  than the market price at the time the option is exercised.                                                                                                                                                                                                                                                                                    
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |    | c.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Speculative
  Short Sales/Short Options. The company normally limits its speculative transactions to no more
  than 15% of the value of the portfolio. The company may sell uncovered calls
  on certain stocks. If the stock price does not rise to the price of the call,
  the option is not exercised and the company records the proceeds from the
  sale of the call as income. If the call is exercised, the company will have a
  short position in the related stock. The company then has the choice of
  covering the short position, or selling a put against it. If the put is
  exercised, then the short position is covered. The companys current
  accounting policy is to mark to the market at the end of each quarter any
  short positions, and include it in the income statement. While the company
  may have so-called speculative positions equal to 15% of its accounts, in
  actual practice the net short stock positions usually account for less than
  10% of the assets of the company.
| |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 5. | In the event
  of a merger, the Company will elect to receive shares in the new company if
  this is an option. If the proposed merger is a cash only offer, the Company
  will receive cash and be forced to sell the stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

The
income derived from these investments has been essential to help offset the
research, operating and marketing expenses of developing the Blood Volume
Analyzer. The Company has followed a conservative policy of assuring adequate
liquidity so that it can expand its marketing and research and development
without the sudden necessity of raising additional capital. The securities in
the Companys portfolio are selected to provide stability of both income and
capital. The Company has been able to achieve financial stability because of
these returns, which have covered a significant portion of the Companys
continuing losses from operations. The Companys investment policy is reviewed
at least once yearly by the Board of Directors and the Audit Committee.
Individual investment decisions are made solely by the Companys CEO, Dr.
Joseph Feldschuh.

23

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The
Company currently has adequate resources for the current level of marketing and
research and development expenses for the BVA-100 Blood Volume Analyzer as well
as capital to sustain its localized semen and blood banking services. The
Company may not, at the present time, have adequate resources to expand its
marketing force to all areas of the country. The Company is simultaneously
expanding its research and development efforts to develop additional
instrumentation for renal function testing, specifically glomerular filtration
testing. The Company recently explored the potential for raising additional
capital but the terms would have been disadvantageous to existing shareholders.
The current primary focus is on the BVA-100 Blood Volume Analyzer with respect
to expenditure of resources. 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.

RESULTS OF OPERATIONS

Six months ended June 30,
2009 as compared with six months ended June 30, 2008:

Operating
Revenues and Expenses

For
the six months ended June 30, 2009, consolidated operating revenues decreased
to $814,457 from $977,500 for the same period in 2008, a decrease of $163,043
or 16.68%. This was mainly due to no Blood Volume Analyzers being sold during
the current six month period versus three during the same period last year for
a total of $195,000.

For
the six months ended June 30, 2009, revenue from Blood volume kit sales
increased by $23,069 or 4.26% to $564,266 from $541,197 for the same period in
2008. This can mainly be attributed to an increase in the number of kits sold
from 1,639 in 2008 to 1,851 during the current period for an increase of
12.94%. There were 56 Blood Volume Analyzers placed at June 30, 2009 versus 52
at June 30, 2008. For the six months ended June 30, 2009, the Company provided
204 Volumex doses free of charge to facilities utilizing the BVA-100 for research
versus 273 during the same period in 2008.

The
following tables provide gross margin information on Equipment Sales &
Related Services for the six months ended June 30, 2009 and 2008:

|                                        |  |                                            |         |                                                            |   |                                        |    |   |         |  
|--------------------------------------- |  | ------------------------------------------ | ------- | ---------------------------------------------------------- | - | -------------------------------------- | -- | - | ------- | -
|Equipment
  Sales and Related Services: |  | Kit
  Sales Six Months Ended June 30, 2009 |         | Equipment
  Sales and Other Six Months Ended June 30, 2009 |   | Total
  Six Months Ended June 30, 2009 |   
|                                        |  |                                            |         |                                                            |   |                                        |   
|Revenue                                 |  | $                                          | 564,266 |                                                            | $ | 74,332                                 |    | $ | 638,598 |  
|Cost of Goods Sold                      |  |                                            | 222,335 |                                                            |   | 110,014                                |    |   | 332,349 |  
|                                        |  |                                            |         |                                                            |   |                                        |    |   |         |  
|Gross Profit (Loss)                     |  | $                                          | 341,931 |                                                            | $ | (35,682                                | )  | $ | 306,249 |  
|                                        |  |                                            |         |                                                            |   |                                        |    |   |         |  
|Gross Profit (Loss)
  Percentage        |  |                                            | 60.6    | %                                                          |   | (48.0                                  | )% |   | 47.9    | %

|                                        |  |                                            |         |                                                            |   |                                        |   |   |         |  
|--------------------------------------- |  | ------------------------------------------ | ------- | ---------------------------------------------------------- | - | -------------------------------------- | - | - | ------- | -
|Equipment
  Sales and Related Services: |  | Kit
  Sales Six Months Ended June 30, 2008 |         | Equipment
  Sales and Other Six Months Ended June 30, 2008 |   | Total
  Six Months Ended June 30, 2008 |  
|                                        |  |                                            |         |                                                            |   |                                        |  
|Revenue                                 |  | $                                          | 541,197 |                                                            | $ | 250,581                                |   | $ | 791,778 |  
|Cost of Goods Sold                      |  |                                            | 237,027 |                                                            |   | 65,763                                 |   |   | 302,790 |  
|                                        |  |                                            |         |                                                            |   |                                        |   |   |         |  
|Gross Profit                            |  | $                                          | 304,170 |                                                            | $ | 184,818                                |   | $ | 488,988 |  
|                                        |  |                                            |         |                                                            |   |                                        |   |   |         |  
|Gross Profit Percentage                 |  |                                            | 56.2    | %                                                          |   | 73.7                                   | % |   | 61.8    | %

The
additional revenues for Equipment Sales and Other during the current and
previous six month periods consist almost entirely of shipping charges and
service contract revenue.

The
Company had a gross loss of ($35,682) on Equipment Sales and Other for the
six months ended June 30, 2009 versus a gross profit for the six months
ended June 30, 2008 of $184,818. The reason for the difference is that three
Blood Volume Analyzers were sold during the six months ended June 30, 2008 for
a total of $195,000 versus no machines sold during the current six month
period. The Company still incurs costs for items such as convenience kit
production and related supplies even when Blood Volume Analyzers are not sold.

24

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Total
S,G&A (selling, general and administrative) and R&D (Research and
Development) costs for Equipment Sales and Related Services were $2,462,142 for
the six months ended June 30, 2009 versus $2,748,824 for the same period in
2008, for a decrease of $286,682 or 10.43%. The main reason for this was
decreased payroll and related costs of $182,004 for the six months ended June
30, 2009 as compared to the same period in 2008.

Research
& Development expenses for Equipment Sales and Related Services were
$1,171,651 for the six months ended June 30, 2009 versus $1,174,288
for the six months ended June 30, 2008. Daxor is
committed to making Blood Volume Analysis a standard of care in at least three
different disease states. In order to achieve this goal, we are continuing to
spend time and money in research and development to get the best product to the
market. We are still working on the following three projects: 1) GFR:
Glomerular Filtration Rate, 2) Total Body Albumin Analysis, and 3) Wipes tests for
radiation contamination/detection. We are also progressing on the next version
of the delivery device for the radioactive dose Volumex. The current version is
the Max-100 which has a patent. The next version, the Max-200 will be
without a needle and should afford the company extended protection with a
second patent when it is completed.

Operating
revenues for the Cryobanking segment, which includes both blood banking and
semen banking, decreased to $175,859 in 2009 from $185,722 in 2008, for a
decrease of $9,863 or 5.31%. The main reason for this was a decrease in Semen
Bank Storage fees and related items of $6,972 for the six months ended June 30,
2009 as compared to 2008.

Total
S,G&A (selling, general and administrative) and R&D (Research and
Development) costs for the Cryobanking and related services segment were
$458,363 for the six months ended June 30, 2009 versus $395,212 for the same
period in 2008, for an increase of $63,151 or 15.98%. The main reasons for this
were increases of $35,876 in professional fees attributable to the legal action
which is discussed in greater detail in Part II and $19,097 in expenses
allocated to Cryobanking from Equipment Sales and Related Services. These
allocated expenses represent the expenses of Cryobanking paid by Equipment
Sales and Related Services. These allocated expense have no effect on our
consolidated results.

Consolidated
Operating Expenses

The
total consolidated operating expenses including cost of sales for the six months
ended June 30, 2009 were $3,275,059 versus $3,470,552 in 2008 for a decrease of
$195,493 or 5.63% which is mainly attributable to a reduction in payroll and
related expenses of $149,532.

INVESTMENT PORTFOLIO

Dividend
Income

Dividend
income earned on the Companys security portfolio for the six months ended June
30, 2009 was $1,623,509 versus $1,182,501 for the same period in 2008 for an
increase of $441,008 or 37.29%. The main reason for this increase was the
receipt of a onetime special dividend of $282,425 on a stock which was still in
the Companys investment portfolio at June 30, 2009.

Investment
Gains (Losses)

Gains
on the sale of investments were $5,514,477 for the six months ended June 30,
2009 versus $8,475,471 for the same period in 2008 for a decrease of $2,960,994
or 34.94%. For the current six months, the Company had a gain from the marking
to the market of short positions of stocks and put and call options of $713,894
versus a gain of $2,142,782 for the same period in 2008. Interest expense net
of interest income was $127,527 for the six months ended June 30, 2009 versus
$45,067 for the six months ended June 30, 2008. Administrative expenses
relating to portfolio investments were $63,300 in 2008 versus $ 42,570 for the
same period in 2008.

CRITICAL ACCOUNTING POLICIES

The
consolidated financial statements and accompanying footnotes included in this
report have been prepared in accordance with accounting principles generally
accepted in the United States with certain amounts based on managements best
estimates and judgments. To determine appropriate carrying values of assets and
liabilities that are not readily available from other sources, management uses
assumptions based on historical results and other factors that they believe are
reasonable. Actual results could differ from those estimates.

25

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Our
critical accounting policies, are described in our Annual Report on Form 10-K
for the year ended December 31, 2008. There have been no material changes to
our critical accounting policies as of and for the three and six month periods
ended June 30, 2009.

CODE OF ETHICS AND BUSINESS
CONDUCT

The
Company has a Code of Ethics and Business Conduct which was approved by the
Board of Directors in March 2005. The Code of Ethics and Business Conduct
applies to all directors, officers, employees and other representatives of the
Company including the Chief Executive Officer and Chief Financial Officer. A
copy of the Code of Ethics and Business Conduct is available for free at
www.daxor.com

Item
3. Quantitative and Qualitative Disclosures about Market Risk

The
Securities and Exchange Commissions rule related to market risk disclosure
requires that we describe and quantify our potential losses from market risk
sensitive instruments attributable to reasonably possible market changes.
Market risk sensitive instruments include all financial or commodity
instruments and other financial instruments that are sensitive to future
changes in interest rates, currency exchange rates, commodity prices or other
market factors.

We
are not exposed to market risks from changes in foreign currency rates. The
Company maintains an investment portfolio primarily consisting of electric
utility companies which are publicly traded common and preferred stock. These
are categorized as available-for-sale securities.

In
addition to receiving income from dividends, the Company also has an investment
policy of selling puts on stocks that it is willing to own. Such options
usually have a maturity of less than 1 year. The Company will also sell covered
calls on securities within its investment portfolio. Covered calls involve
stocks, which usually do not exceed 15% of the value of the companys portfolio
and have never exceeded 15% of the companys portfolio value.

The
Company will, at times, sell naked or uncovered calls, as well as, engage in
short sales as part of a strategy to mitigate risk. Such short sales are
usually less than 15% of the companys portfolio value.

Puts,
calls and short sales, collectively referred to as short positions, are all
marked to market for each reporting period and any gain or loss is recognized
through the Statement of Operations and labeled as Mark to market of short
positions.

The
Companys investment strategy is reviewed at least once a year, and more
frequently as needed, at board meetings. The Companys investing policy permits
investment in non-electric utilities for up to 15% of the corporate portfolio
value.

At
June 30, 2009, unrealized gains were $23,605,451 and unrealized losses were
($9,331,802) on available for sale securities for a ratio of 2.53 to 1.

At
June 30, 2009, 97.23% of the market value of the Companys available for sale
securities is made up of common stock. There is a risk that any of these stocks
could be sold as the result of an involuntary tender offer and that the
security could not be replaced with an investment offering a similar yield.

The
Companys portfolio value is exposed to fluctuations in the general value of
electric utilities. An increase of interest rates could affect the company in
two ways; one would be to put downward pressure on the valuation of utility
stocks as well as increase the companys cost of borrowing.

Because
of the size of the unrealized gains in the companys portfolio, the Company
does not anticipate any changes which could reduce the value of the Companys
utility portfolio below historical cost. Electric utilities operate in an
environment of federal, state and local regulations, and they may
disproportionately affect an individual utility. The Companys exposure to
regulatory risk is mitigated due to the diversity of holdings consisting of 101
separate common and preferred stocks. As of June 30, 2009 there were two
holdings of common stock which comprised 24.20% of the total market value of
the available for sale investments.

26

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The
Company is not exposed to any foreign currency risk or commodity price risk
through its holdings of equity securities and put and call options.

The
Company is not exposed to any interest rate risk since it does not have any
long term debt other than a fixed rate mortgage securing real property in Oak
Ridge, Tennessee.

Daxor Corporation
Summary of Available for Sale Securities
As at June 30, 2009

|                 |  |                           |            |              |   |                                   |  |   |            |  
|---------------- |  | ------------------------- | ---------- | ------------ | - | --------------------------------- |  | - | ---------- | -
|Type of Security |  | Total
  Fair Market Value |            | Total
  Cost |   | Total Net Unrealized Gain  (Loss) | 
|                 |  |                           |            |              |   |                                   | 
|Common Stock     |  | $                         | 67,958,422 |              | $ | 53,579,049                        |  | $ | 14,379,373 |  
|Preferred Stock  |  |                           | 1,937,581  |              |   | 2,010,300                         |  |   | (72,719    | )
|                 |  |                           |            |              |   |                                   |  |   |            |  
|Total Equities   |  | $                         | 69,896,003 |              | $ | 55,589,349                        |  | $ | 14,306,654 |  
|Bonds            |  |                           |           |              |   | 33,005                            |  |   | (33,005    | )
|                 |  |                           |            |              |   |                                   |  |   |            |  
|Total Portfolio  |  | $                         | 69,896,003 |              | $ | 55,622,354                        |  | $ | 14,273,649 |  
|                 |  |                           |            |              |   |                                   |  |   |            |  

Summary of Proceeds Received
and Market Valuation at 06/30/09
Put and Call Options

|                                                            |            |                                            |   |                                                                     |  |                                                       |            |                              |   |                                         |  |   |           |  |   |           | 
|----------------------------------------------------------- | ---------- | ------------------------------------------ | - | ------------------------------------------------------------------- |  | ----------------------------------------------------- | ---------- | ---------------------------- | - | --------------------------------------- |  | - | --------- |  | - | --------- | 
|Total Proceeds
  Received on
  open positions
  at 01/01/09 |            | Sale of
  Options from
  01/01/09-06/30/09 |   | Expirations and
  Assignments of
  Options from
  01/01/09-06/30/09 |  | Proceeds
  Received on
  open positions
  at 06/30/09 |            | Market
  Value at
  06/30/09 |   | Unrealized
  Appreciation
  at 06/30/09 | 
|                                                            |            |                                            |   |                                                                     |  |                                                       |            |                              |   |                                         | 
|$                                                           | 13,811,975 |                                            | $ | 16,218,188                                                          |  | $                                                     | 18,142,103 |                              | $ | 11,888,060                              |  | $ | 5,727,577 |  | $ | 6,160,483 | 

Daxor Corporation
Summary of Unrealized Losses of Available for Sale Securities
As at June 30, 2009

|                             |  |                           |            |                            |   |              |  |                   |           |              |   |                   |  |   |            |  |   |           | 
|---------------------------- |  | ------------------------- | ---------- | -------------------------- | - | ------------ |  | ----------------- | --------- | ------------ | - | ----------------- |  | - | ---------- |  | - | --------- | 
|                             |  | Less
  Than Twelve Months |            | Twelve
  Months or Greater |   | Total        | 
|                             |  |                           |            |                            |   |              | 
|                             |  | Fair
  Value              |            | Unrealized
  Loss          |   | Fair
  Value |  | Unrealized
  Loss |           | Fair
  Value |   | Unrealized
  Loss | 
|                             |  |                           |            |                            |   |              |  |                   |           |              |   |                   | 
|Marketable Equity Securities |  | $                         | 13,615,629 |                            | $ | 4,987,260    |  | $                 | 4,932,446 |              | $ | 4,311,537         |  | $ | 18,548,075 |  | $ | 9,298,797 | 
|Corporate Bonds              |  |                           |           |                            |   |             |  |                   |          |              | $ | 33,005            |  |   |           |  |   | 33,005    | 
|                             |  |                           |            |                            |   |              |  |                   |           |              |   |                   |  |   |            |  |   |           | 
|Total                        |  | $                         | 13,615,629 |                            | $ | 4,987,260    |  | $                 | 4,932,446 |              | $ | 4,344,542         |  | $ | 18,548,075 |  | $ | 9,331,802 | 
|                             |  |                           |            |                            |   |              |  |                   |           |              |   |                   |  |   |            |  |   |           | 

Management
has determined that an impairment charge is not needed for the Available for
Sale Securities with losses twelve months or greater at June 30, 2009. An
analysis of the Companys holdings indicates that the largest positions have
traded above the Companys average costs and management believes they will do
so again in the near future.

The
total Unrealized Loss on Available for Sale Securities decreased from
$10,839,998 at December 31, 2008 to $9,331,802 at June 30, 2009.

27

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Daxor Corporation
Summary of Available for Sale Securities
As at December 31, 2008

|                 |  |   |                           |  |   |              |  |   |                                     |  
|---------------- |  | - | ------------------------- |  | - | ------------ |  | - | ----------------------------------- | -
|Type of Security |  |   | Total
  Fair Market Value |  |   | Total
  Cost |  |   | Total
  Net Unrealized Gain  (Loss) |  
|                 |  |   |                           |  |   |              |  |   |                                     |  
|Common Stock     |  | $ | 65,910,988                |  | $ | 47,766,362   |  | $ | 18,144,626                          |  
|Mutual Funds     |  |   | 165,500                   |  |   | 172,710      |  |   | (7,210                              | )
|Preferred Stock  |  |   | 2,262,655                 |  |   | 2,737,524    |  |   | (474,869                            | )
|                 |  |   |                           |  |   |              |  |   |                                     |  
|Total Equities   |  | $ | 68,339,143                |  | $ | 50,676,596   |  | $ | 17,662,547                          |  
|Bonds            |  |   |                          |  |   | 33,005       |  |   | (33,005                             | )
|                 |  |   |                           |  |   |              |  |   |                                     |  
|Total Portfolio  |  | $ | 68,339,143                |  | $ | 50,709,601   |  | $ | 17,629,542                          |  
|                 |  |   |                           |  |   |              |  |   |                                     |  

Summary of Proceeds Received
and Market Valuation at 12/31/08
Put and Call Options

|                                                            |           |                                            |   |                                                                     |  |                                                       |            |                              |   |                                         |  |   |           |  |   |           | 
|----------------------------------------------------------- | --------- | ------------------------------------------ | - | ------------------------------------------------------------------- |  | ----------------------------------------------------- | ---------- | ---------------------------- | - | --------------------------------------- |  | - | --------- |  | - | --------- | 
|Total Proceeds
  Received on
  open positions
  at 01/01/08 |           | Sale of
  Options from
  01/01/08-12/31/08 |   | Expirations and
  Assignments of
  Options from
  01/01/08-12/31/08 |  | Proceeds
  Received on
  open positions
  at 12/31/08 |            | Market
  Value at
  12/31/08 |   | Unrealized
  Appreciation
  at 12/31/08 | 
|                                                            |           |                                            |   |                                                                     |  |                                                       |            |                              |   |                                         | 
|$                                                           | 7,645,833 |                                            | $ | 34,377,992                                                          |  | $                                                     | 28,211,850 |                              | $ | 13,811,975                              |  | $ | 8,424,359 |  | $ | 5,387,616 | 

Daxor Corporation
Summary of Unrealized Losses of Available for Sale Securities
As at December 31, 2008

|                             |  |                           |            |                            |   |              |  |                   |           |              |   |                   |  |   |            |  |   |            | 
|---------------------------- |  | ------------------------- | ---------- | -------------------------- | - | ------------ |  | ----------------- | --------- | ------------ | - | ----------------- |  | - | ---------- |  | - | ---------- | 
|                             |  | Less
  Than Twelve Months |            | Twelve
  Months or Greater |   | Total        | 
|                             |  |                           |            |                            |   |              | 
|                             |  | Fair
  Value              |            | Unrealized
  Loss          |   | Fair
  Value |  | Unrealized
  Loss |           | Fair
  Value |   | Unrealized
  Loss | 
|                             |  |                           |            |                            |   |              |  |                   |           |              |   |                   | 
|Marketable Equity Securities |  | $                         | 14,232,869 |                            | $ | 7,675,656    |  | $                 | 2,106,718 |              | $ | 3,131,337         |  | $ | 16,339,587 |  | $ | 10,806,993 | 
|Corporate Bonds              |  |                           |           |                            |   |             |  |                   |          |              | $ | 33,005            |  |   |           |  |   | 33,005     | 
|                             |  |                           |            |                            |   |              |  |                   |           |              |   |                   |  |   |            |  |   |            | 
|Total                        |  | $                         | 14,232,869 |                            | $ | 7,675,656    |  | $                 | 2,106,718 |              | $ | 3,164,342         |  | $ | 16,339,587 |  | $ | 10,839,998 | 
|                             |  |                           |            |                            |   |              |  |                   |           |              |   |                   |  |   |            |  |   |            | 

28

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Item
4T. Controls and Procedures

As
of June 30, 2009, the Company carried out an evaluation, under the supervision
and with the participation of the Companys management, including the Companys
Chief Executive Officer, Chief Financial Officer and Treasurer, of the effectiveness
of the design and operation of the Companys disclosure controls and procedures
pursuant to Rule 13a-14 under the Securities and Exchange of 1934, as amended.
Based upon that evaluation, the Chief Executive Officer and Chief Financial
Officer concluded that the Companys disclosure controls and procedures were
effective as of the quarter ended June 30, 2009 in timely alerting them to
material information relating to the Company (including its consolidated
subsidiaries) required to be included in its periodic SEC filings. During the
quarter ended June 30, 2009, there were no significant changes in internal
controls or in other factors that have materially affected, or are reasonably
likely to materially affect, internal controls over financial reporting.

The
Companys management and board of directors are fully committed to the review
and evaluation of the procedures and policies designed to assure effective
internal control over financial reporting.

PART
II. OTHER INFORMATION

Item
1. Legal Proceedings

The Companys
motion to dismiss a pending legal action was granted in its entirety on August
5, 2009. The plaintiffs time to appeal the dismissal will expire on September
4, 2009. In the event the plaintiffs pursue an appeal, the Company intends
to aggressively and vigorously defend the dismissal on
appeal based on the legal and factual defenses found by the
trial court.

Item
1A. Risk Factors

There
have been no material changes from the risk factors disclosed in the Companys
Annual Report on Form 10-K for the fiscal year ended December 31, 2008 as filed
with the Securities and Exchange Commission on March 23, 2009.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item
3. Defaults upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

Our
Annual Meeting of Stockholders was held on June 24, 2009.

The
individuals named below were elected as directors, each to serve until the next
Annual Meeting or until his successor is duly elected and qualified. Shares
voted were as follows:

|                         |  |  |           |  |  |          | 
|------------------------ |  |  | --------- |  |  | -------- | 
|Name of
  Director       |  |  | For       |  |  | Withheld | 
|                         |  |  |           |  |  |          | 
|Joseph
  Feldschuh, M.D. |  |  | 3,936,207 |  |  | 261,836  | 
|Robert
  Willens         |  |  | 4,186,844 |  |  | 11,199   | 
|James A. Lombard         |  |  | 4,042,684 |  |  | 155,359  | 
|Martin S.
  Wolpoff      |  |  | 4,042,684 |  |  | 155,359  | 
|Mario
  Biaggi, Jr. Esq. |  |  | 4,185,774 |  |  | 12,269   | 
|Bernhard
  Saxe, Esq.    |  |  | 4,186,784 |  |  | 11,259   | 
|Stanley
  Epstein, M.D.  |  |  | 4,041,734 |  |  | 156,309  | 

29

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At such
meeting, the stockholders approved Proposal 2, ratifying the approval of
Rotenberg, Meril Solomon Bertiger & Guttilla PC as our independent
registered accounting firm. The votes for Proposal 2 were as follows:

|          |         |        
|--------- | ------- | -------
|For       | Against | Abstain
|          |         |        
|4,195,412 | 2,335   | 296    

At such
meeting, the stockholders approved Proposal 3, ratifying a non-binding
resolution regarding the compensation of the Companys named executives.

|          |         |        
|--------- | ------- | -------
|For       | Against | Abstain
|          |         |        
|3,994,905 | 192,806 | 10,332 

Item 5. Other Information

None.

Item 6. Exhibits to Quarterly Report on Form 10-Q

|     |                                                                                                                                                      
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------
|31.1 | Certification
  of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act
  of 2002                                               
|     |                                                                                                                                                      
|31.2 | Certification
  of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
  of 2002                                               
|     |                                                                                                                                                      
|32.1 | 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 2002 
|     |                                                                                                                                                      
|32.2 | Certification
  of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
  pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

30

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SIGNATURE

Pursuant to
the requirements of Section 13 or 15(d)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: August
  11, 2009 | By: | /s/ JOSEPH
  FELDSCHUH, M.D.        
|                        |     |                                     
|                        |     | JOSEPH
  FELDSCHUH, M.D.,           
|                        |     | President                           
|                        |     | Chief
  Executive Officer           
|                        |     | Chairman of
  the Board of Directors
|                        |     | Principal
  Executive Officer       

31

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Exhibit Index

|     |                                                                                                                                                                              
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                           
|     |                                                                                                                                                                              
|31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                           
|     |                                                                                                                                                                              
|32.1 | 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 2002
|     |                                                                                                                                                                              
|32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section
                           906 of the Sarbanes-Oxley Act of 2002

32

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