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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

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FORM 10-Q

Quarterly Report Under Section 13 or 15(d)
of the
Securities Act of 1934

FOR QUARTER ENDED March 31, 2009Commission File Number 0-12248

|                                         
|-----------------------------------------
|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 for such
shorter period that the registrant was required to submit and post such files).

Yes o    No o

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

|                           |                      |                         
|-------------------------- | -------------------- | ------------------------
|Large
 Accelerated Filer o | Accelerated
 Filer o | Non-accelerated
 Filer x

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                      |  | 4,276,518 OUTSTANDING AT
 April 30, 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 March 31, 2009
 (Unaudited) and December 31, 2008 - (Audited)            |  | 1    
|         |                       |                                                                                                                    |  |      
|         |                       | Condensed
 Consolidated Statements of Operations for the three months ended March
 31, 2009 and 2008  (Unaudited) |  | 2    
|         |                       |                                                                                                                    |  |      
|         |                       | Condensed
 Consolidated Statements of Cash Flows for the three months ended March 31,
 2009 and 2008  (Unaudited) |  | 3    
|         |                       |                                                                                                                    |  |      
|         |                       | Notes to
 Condensed Consolidated Financial Statements  (Unaudited)                                                |  | 4-13 
|         |                       |                                                                                                                    |  |      
|         | Item 2.               | Managements
 Discussion and Analysis of Financial Condition and Results of Operations                             |  | 14-18
|         |                       |                                                                                                                    |  |      
|         | Item 3.               | Quantitative
 and Qualitative Disclosures about Market Risk                                                        |  | 18-19
|         |                       |                                                                                                                    |  |      
|         | Item 4T.              | Controls
 and Procedures                                                                                           |  | 20   
|         |                       |                                                                                                                    |  |      
|PART II. | OTHER
 INFORMATION    |                                                                                                                    | 
|         |                       |                                                                                                                    | 
|         | Item 1.               | Legal
 Proceedings                                                                                                 |  | 20   
|         |                       |                                                                                                                    |  |      
|         | Item 1A.              | Risk Factors                                                                                                       |  | 20   
|         |                       |                                                                                                                    |  |      
|         | Item 2.               | Unregistered
 Sales of Equity Securities and Use of Proceeds                                                       |  | 20   
|         |                       |                                                                                                                    |  |      
|         | Item 3.               | Defaults
 Upon Senior Securities                                                                                   |  | 20   
|         |                       |                                                                                                                    |  |      
|         | Item 4.               | Submission
 of Matters to a Vote of Security Holders                                                               |  | 20   
|         |                       |                                                                                                                    |  |      
|         | Item 5.               | Other
 Information                                                                                                 |  | 20   
|         |                       |                                                                                                                    |  |      
|         | Item 6.               | Exhibits                                                                                                           |  | 21   

-i-

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DAXOR CORPORATION AND SUBSIDIARY`CONDENSED CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------- | ----------- | --------------------------- | - | ----------- | -
|                                                                                                                                                                                            |  | UNAUDITED
 March 31,
 2009 |             | AUDITED
 December 31,
 2008 |  
|                                                                                                                                                                                            |  |                            |             |                             |  
|ASSETS                                                                                                                                                                                      |  |                            |             |                             |   |             |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|CURRENT ASSETS                                                                                                                                                                              |  |                            |             |                             |   |             |  
|Cash and cash equivalents                                                                                                                                                                   |  | $                          | 37,612      |                             | $ | 2,545,040   |  
|Receivable from broker (held in money market accounts)                                                                                                                                      |  |                            | 140,063     |                             |   | 2,829,979   |  
|Available-for-sale securities, at fair value                                                                                                                                                |  |                            | 58,032,356  |                             |   | 68,339,143  |  
|Securities sold, not received, at fair value                                                                                                                                                |  |                            | 74,881      |                             |   |            |  
|Accounts receivable, net of allowance for doubtful accounts of
 $88,645 in 2009 and $88,645 in
 2008                                                                                        |  |                            | 214,122     |                             |   | 205,568     |  
|Inventory                                                                                                                                                                                   |  |                            | 451,459     |                             |   | 426,826     |  
|Prepaid expenses and other current assets                                                                                                                                                   |  |                            | 153,397     |                             |   | 131,912     |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|Total Current Assets                                                                                                                                                                        |  |                            | 59,103,890  |                             |   | 74,478,468  |  
|                                                                                                                                                                                           
|Property and equipment, net                                                                                                                                                                 |  |                            | 3,222,707   |                             |   | 2,308,555   |  
|Other assets                                                                                                                                                                                |  |                            | 37,158      |                             |   | 37,158      |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|Total Assets                                                                                                                                                                                |  | $                          | 62,363,755  |                             | $ | 76,824,181  |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|                                                                                                                                                                                           
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                                        |  |                            |             |                             |   |             |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|CURRENT LIABILITIES                                                                                                                                                                         |  |                            |             |                             |   |             |  
|Accounts payable and accrued liabilities                                                                                                                                                    |  | $                          | 544,149     |                             | $ | 604,420     |  
|Loans payable                                                                                                                                                                               |  |                            | 18,321,817  |                             |   | 13,052,162  |  
|Income taxes payable                                                                                                                                                                        |  |                            | 2,261,458   |                             |   | 2,643,958   |  
|Mortgage payable, current portion                                                                                                                                                           |  |                            | 41,055      |                             |   | 40,306      |  
|Put and call options, at fair value                                                                                                                                                         |  |                            | 8,075,442   |                             |   | 8,424,359   |  
|Securities borrowed, at fair value                                                                                                                                                          |  |                            | 117,858     |                             |   | 107,871     |  
|Deferred revenue                                                                                                                                                                            |  |                            | 23,846      |                             |   | 33,349      |  
|Deferred income taxes                                                                                                                                                                       |  |                            | 572,637     |                             |   | 8,066,823   |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|Total Current Liabilities                                                                                                                                                                   |  |                            | 29,958,262  |                             |   | 32,973,248  |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|LONG TERM LIABILITIES                                                                                                                                                                       |  |                            |             |                             |   |             |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|Mortgage payable, less current portion                                                                                                                                                      |  |                            | 379,641     |                             |   | 390,292     |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|Total Liabilities                                                                                                                                                                           |  |                            | 30,337,903  |                             |   | 33,363,540  |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|STOCKHOLDERS EQUITY                                                                                                                                                                        |  |                            |             |                             |   |             |  
|Common stock, $.01 par value, Authorized - 10,000,000 shares Issued

 5,316,550 shares Outstanding  4,285,518 and 4,289,118 shares at March 31,
 2009 and December 31, 2008, respectively |  |                            | 53,165      |                             |   | 53,165      |  
|Additional paid in capital                                                                                                                                                                  |  |                            | 10,669,219  |                             |   | 10,660,547  |  
|Accumulated other comprehensive income                                                                                                                                                      |  |                            | 1,613,634   |                             |   | 11,459,203  |  
|Retained earnings                                                                                                                                                                           |  |                            | 30,614,853  |                             |   | 32,158,138  |  
|Treasury stock, at cost, 1,031,032 and 1,027,432 shares at March 31,
 2009 and December 31,
 2008, respectively                                                                             |  |                            | (10,925,019 | )                           |   | (10,870,412 | )
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|Total Stockholders Equity                                                                                                                                                                  |  |                            | 32,025,852  |                             |   | 43,460,641  |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  
|Total Liabilities and Stockholders Equity                                                                                                                                                  |  | $                          | 62,363,755  |                             | $ | 76,824,181  |  
|                                                                                                                                                                                            |  |                            |             |                             |   |             |  

See accompanying notes to unaudited
condensed consolidated financial statements.

1

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

|                                                                            |  |                 |             |                 |   |            |  
|--------------------------------------------------------------------------- |  | --------------- | ----------- | --------------- | - | ---------- | -
|                                                                            |  | March 31,
 2009 |             | March 31,
 2008 |  
|                                                                            |  |                 |             |                 |  
|                                                                           
|REVENUES:                                                                   |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Operating Revenues  equipment sales and related
services                   |  | $               | 344,963     |                 | $ | 323,780    |  
|Operating Revenues  cryobanking and related services                       |  |                 | 89,074      |                 |   | 97,133     |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Total Revenues                                                              |  |                 | 434,037     |                 |   | 420,913    |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Cost of Sales:                                                              |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Cost of equipment sales and related services                                |  |                 | 140,039     |                 |   | 138,614    |  
|Cost of cryobanking and related services                                    |  |                 | 12,429      |                 |   | 13,400     |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Total Cost of Sales                                                         |  |                 | 152,468     |                 |   | 152,014    |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Gross Profit                                                                |  |                 | 281,569     |                 |   | 268,899    |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|OPERATING EXPENSES:                                                         |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Research and development expenses:                                          |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Research and development-equipment sales and related
services               |  |                 | 547,593     |                 |   | 559,309    |  
|Research and development-cryobanking and related services                   |  |                 | 47,349      |                 |   | 48,242     |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Total Research and Development Expenses                                     |  |                 | 594,972     |                 |   | 607,551    |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Selling, General & Administrative Expenses:                                 |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Selling, general, and administrative- equipment sales and related
 services |  |                 | 631,369     |                 |   | 770,595    |  
|Selling, general, and administrative- cryobanking and related
 services     |  |                 | 169,724     |                 |   | 159,554    |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Total Selling, General & Administrative Expenses                            |  |                 | 801,093     |                 |   | 930,149    |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Total Operating Expenses                                                    |  |                 | 1,396,065   |                 |   | 1,537,700  |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Loss from Operations                                                        |  |                 | (1,114,496  | )               |   | (1,268,801 | )
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Other Income (Expenses):                                                    |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Dividend income-investment portfolio                                        |  |                 | 987,097     |                 |   | 630,782    |  
|Realized gains on sale of securities, net                                   |  |                 | 5,070,441   |                 |   | 5,830,999  |  
|Mark to market of short positions                                           |  |                 | (6,264,931  | )               |   | 2,176,041  |  
|Other revenues                                                              |  |                 | 2,963       |                 |   | 2,916      |  
|Interest expense, net of interest income of $6,526 and
$11,185              |  |                 | (67,699     | )               |   | (29,515    | )
|Administrative expense relating to portfolio investments                    |  |                 | (31,886     | )               |   | (21,414    | )
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Total Other (Expenses) Income                                               |  |                 | (304,015    | )               |   | 8,589,809  |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|(Loss) Income before Income Taxes                                           |  |                 | (1,418,511  | )               |   | 7,321,008  |  
|                                                                            |  |                 |             |                 |   |            |  
|Income Tax Expense                                                          |  |                 | 124,774     |                 |   |           |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Net
 (Loss) Income                                                          |  | $               | (1,543,285  | )               | $ | 7,321,008  |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Comprehensive (Loss) Income:                                                |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Net (Loss) Income                                                           |  | $               | (1,543,285  | )               | $ | 7,321,008  |  
|Unrealized Loss on Securities Held for Sale, Net of Deferred Income
 Taxes  |  |                 | (9,845,569  | )               |   | (7,192,072 | )
|                                                                            |  |                 |             |                 |   |            |  
|Comprehensive (Loss) Income                                                 |  | $               | (11,388,854 | )               | $ | 128,936    |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Weighted average number of shares outstanding  basic and
diluted           |  |                 | 4,285,685   |                 |   | 4,421,518  |  
|                                                                            |  |                 |             |                 |   |            |  
|                                                                            |  |                 |             |                 |   |            |  
|Net (loss) income per common equivalent share - basic and
diluted           |  | $               | (0.36       | )               | $ | 1.66       |  
|                                                                            |  |                 |             |                 |   |            |  

2

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

|                                                                                 |  |                 |             |                |   |             |  
|-------------------------------------------------------------------------------- |  | --------------- | ----------- | -------------- | - | ----------- | -
|                                                                                 |  | March 31,
 2009 |             | Mach 31,
 2008 |  
|                                                                                 |  |                 |             |                |  
|                                                                                
|CASH FLOWS FROM OPERATING ACTIVITIES:                                            |  |                 |             |                |   |             |  
|Net (loss) income                                                                |  | $               | (1,543,285  | )              | $ | 7,321,008   |  
|                                                                                 |  |                 |             |                |   |             |  
|Adjustment to reconcile net income to net cash used in operating
 activities:    |  |                 |             |                |   |             |  
|Depreciation                                                                     |  |                 | 73,573      |                |   | 68,659      |  
|Non-cash compensation expense associated with
employee stock
 compensation plans |  |                 | 8,672       |                |   | 17,855      |  
|Deferred income taxes                                                            |  |                 | (2,192,726  | )              |   |            |  
|Realized gains on sale of investments                                            |  |                 | (5,070,441  | )              |   | (5,830,999  | )
|Mark to market on short positions                                                |  |                 | 6,264,931   |                |   | (2,176,041  | )
|                                                                                 |  |                 |             |                |   |             |  
|Change in operating assets and liabilities:                                      |  |                 |             |                |   |             |  
|Increase in accounts receivable                                                  |  |                 | (8,554      | )              |   | (15,366     | )
|(Increase) decrease in prepaid expenses & other
current assets                   |  |                 | (21,485     | )              |   | 26,898      |  
|Increase in inventory                                                            |  |                 | (24,633     | )              |   | (154,376    | )
|Decrease in accounts payable and accrued
liabilities                             |  |                 | (60,271     | )              |   | (186,540    | )
|Decrease in income taxes payable                                                 |  |                 | (382,500    | )              |   | (1,295,668  | )
|Decrease in deferred revenue                                                     |  |                 | (9,503      | )              |   | (2,986      | )
|                                                                                 |  |                 |             |                |   |             |  
|                                                                                 |  |                 |             |                |   |             |  
|Net cash used in operating activities                                            |  |                 | (2,966,222  | )              |   | (2,227,556  | )
|                                                                                 |  |                 |             |                |   |             |  
|                                                                                 |  |                 |             |                |   |             |  
|CASH FLOWS FROM INVESTING ACTIVITIES:                                            |  |                 |             |                |   |             |  
|Purchase of property and equipment                                               |  |                 | (987,725    | )              |   | (132,002    | )
|(Increase) Decrease in securities sold, not received at fair market
 value       |  |                 | (74,881     | )              |   | 9,744,697   |  
|Increase (Decrease) in securities borrowed, at fair market
value                 |  |                 | 9,987       |                |   | (16,116,891 | )
|Purchases of put and call options                                                |  |                 | (2,619,217  | )              |   | (28,607     | )
|Sales of put and call options                                                    |  |                 | 6,751,777   |                |   | 8,434,122   |  
|Acquisition of available for sale securities                                     |  |                 | (21,746,211 | )              |   | (14,983,059 | )
|Proceeds from sale of available for sale securities                              |  |                 | 11,230,002  |                |   | 10,551,237  |  
|                                                                                 |  |                 |             |                |   |             |  
|                                                                                 |  |                 |             |                |   |             |  
|Net cash used in investing activities                                            |  |                 | (7,436,268  | )              |   | (2,530,503  | )
|                                                                                 |  |                 |             |                |   |             |  
|                                                                                 |  |                 |             |                |   |             |  
|CASH FLOWS FROM FINANCING ACTIVITIES:                                            |  |                 |             |                |   |             |  
|Proceeds from margin loan payable                                                |  |                 | 29,891,560  |                |   | 17,308,753  |  
|Repayment of margin loan payable                                                 |  |                 | (21,496,989 | )              |   | (12,618,212 | )
|Repayment of bank loan                                                           |  |                 | (685,000    | )              |   | (100,000    | )
|Proceeds from bank loan                                                          |  |                 | 250,000     |                |   |            |  
|Purchase of treasury stock                                                       |  |                 | (54,607     | )              |   | (743,185    | )
|Repayment of mortgage payable                                                    |  |                 | (9,902      | )              |   | (9,113      | )
|                                                                                 |  |                 |             |                |   |             |  
|                                                                                 |  |                 |             |                |   |             |  
|Net cash provided by financing activities                                        |  |                 | 7,895,062   |                |   | 3,838,243   |  
|                                                                                 |  |                 |             |                |   |             |  
|                                                                                 |  |                 |             |                |   |             |  
|Net decrease in cash and cash equivalents                                        |  |                 | (2,507,428  | )              |   | (919,816    | )
|Cash and cash equivalents at beginning of period                                 |  |                 | 2,545,040   |                |   | 2,029,834   |  
|                                                                                 |  |                 |             |                |   |             |  
|                                                                                 |  |                 |             |                |   |             |  
|Cash and cash equivalents at end of period                                       |  | $               | 37,612      |                | $ | 1,110,018   |  
|                                                                                 |  |                 |             |                |   |             |  
|                                                                                 |  |                 |             |                |   |             |  
|Supplemental Disclosures of Cash Flow Information:                               |  |                 |             |                |   |             |  
|Cash paid during the period for:                                                 |  |                 |             |                |   |             |  
|Interest                                                                         |  | $               | 74,225      |                | $ | 40,699      |  
|                                                                                 |  |                 |             |                |   |             |  
|Income taxes                                                                     |  | $               | 2,707,010   |                | $ | 1,302,210   |  

See accompanying notes to
unaudited condensed consolidated financial statements.

3

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DAXOR CORPORATION AND SUBSIDIARYNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 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 month period ended March 31, 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.

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 months
ended March 31, 2009.

4

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 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.

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.

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.

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.

5

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 2008 (Continued)
(Unaudited)

For the quarters ended March
31, 2009 and March 31, 2008, stock options were not included in the computation
of diluted loss and earnings per common share due to their anti-dilutive
effect. The number of anti-dilutive stock options excluded from the computation
of diluted loss per share was 107,800 and 110,500, respectively.

|    |                               
|--- | ------------------------------
|(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:

March 31, 2009(Unaudited)

|                 |  |               |            |                     |   |                             |  |                   |           |                    |   |            |  |   |             |  
|---------------- |  | ------------- | ---------- | ------------------- | - | --------------------------- |  | ----------------- | --------- | ------------------ | - | ---------- |  | - | ----------- | -
|Type of Security |  | Market
 Value |            | Cost
 of Securities |   | Net
 Unrealized Gain (Loss) |  | Unrealized
 Gains |           | Unrealized
 Losses |  
|                 |  |               |            |                     |   |                             |  |                   |           |                    |  
|Equity           |  | $             | 58,032,356 |                     | $ | 55,516,838                  |  | $                 | 2,515,518 |                    | $ | 19,371,070 |  | $ | (16,855,552 | )
|Debt             |  | $             |           |                     | $ | 33,005                      |  | $                 | (33,005   | )                  | $ |           |  | $ | (33,005     | )
|                 |  |               |            |                     |   |                             |  |                   |           |                    |   |            |  |   |             |  
|Total Securities |  | $             | 58,032,356 |                     | $ | 55,549,843                  |  | $                 | 2,482,513 |                    | $ | 19,371,070 |  | $ | (16,888,557 | )
|                 |  |               |            |                     |   |                             |  |                   |           |                    |   |            |  |   |             |  

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 | )
|                 |  |               |            |                     |   |                             |  |                   |            |                    |   |            |  |   |             |  

|    |                 
|--- | ----------------
|(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.

6

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 2008 (Continued)
(Unaudited)

The
following table summarizes the results of each segment described above for the
three months ended March 31, 2009 (unaudited).

|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|--------------------------------------------------------- |  | ------------------------------------- | --------- | -------------------------------- | - | -------------------- | - | ----- | ---------- | - | - | ---------- | -
|                                                          |  | March 31, 2009                        |          
|                                                          |  |                                       |          
|                                                          |  | Equipment
 Sales &
 Related
 Services |           | Cryobanking
 & Related
 Services |   | Investment
 Activity |   | Total |           
|                                                          |  |                                       |           |                                  |   |                      |   |       |           
|                                                         
|Revenues                                                  |  | $                                     | 344,963   |                                  | $ | 89,074               |   | $     |           |   | $ | 434,037    |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Expenses                                                  |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Cost of sales                                             |  |                                       | 140,039   |                                  |   | 12,429               |   |       |           |   |   | 152,468    |  
|Research and development expenses                         |  |                                       | 547,593   |                                  |   | 47,379               |   |       |           |   |   | 594,972    |  
|Selling, general and administrative
expenses              |  |                                       | 631,369   |                                  |   | 169,724              |   |       |           |   |   | 801,093    |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Total Expenses                                            |  |                                       | 1,319,001 |                                  |   | 229,532              |   |       |           |   |   | 1,548,533  |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Operating loss                                            |  |                                       | (974,038  | )                                |   | (140,458             | ) |       |           |   |   | (1,114,496 | )
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|                                                         
|Investment income, net                                    |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Dividends                                                 |  |                                       |          |                                  |   |                     |   |       | 987,097    |   |   | 987,097    |  
|Gain on sales of securities, net                          |  |                                       |          |                                  |   |                     |   |       | 5,070,441  |   |   | 5,070,441  |  
|Mark to market of short positions                         |  |                                       |          |                                  |   |                     |   |       | (6,264,931 | ) |   | (6,264,931 | )
|Administrative expenses relating to portfolio
investments |  |                                       |          |                                  |   |                     |   |       | (31,886    | ) |   | (31,886    | )
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Total Investment loss, net                                |  |                                       |          |                                  |   |                     |   |       | (239,279   | ) |   | (239,279   | )
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Other income (expense)                                    |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|                                                         
|Interest expense, net                                     |  |                                       | (7,895    | )                                |   |                     |   |       | (59,804    | ) |   | (67,699    | )
|Other income                                              |  |                                       | 2,963     |                                  |   |                     |   |       |           |   |   | 2,963      |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Total other income (expense)                              |  |                                       | (4,932    | )                                |   |                     |   |       | (59,804    | ) |   | (64,736    | )
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Loss before income taxes                                  |  |                                       | (978,970  | )                                |   | (140,458             | ) |       | (299,083   | ) |   | (1,418,511 | )
|Income tax expense                                        |  |                                       | 7,500     |                                  |   |                     |   |       | 117,274    |   |   | 124,774    |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Net loss                                                  |  | $                                     | (986,470  | )                                | $ | (140,458             | ) | $     | (416,357   | ) | $ | (1,543,285 | )
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |           |                                  |   |                      |   |       |            |   |   |            |  
|Depreciation and amortization                             |  | $                                     | 64,469    |                                  | $ | 9,104                |   | $     |           |   | $ | 73,573     |  
|Interest income                                           |  | $                                     |          |                                  | $ |                     |   | $     | 6,526      |   | $ | 6,526      |  
|Capital expenditures                                      |  | $                                     | 987,725   |                                  | $ |                     |   | $     |           |   | $ | 987,725    |  
|Total assets                                              |  | $                                     | 3,925,788 |                                  | $ | 190,667              |   | $     | 58,247,300 |   | $ | 62,363,755 |  

7

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 2008 (Continued)
(Unaudited)

The following table
summarizes the results of each segment described above for the three months
ended March 31, 2008 (unaudited)

|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|--------------------------------------------------------- |  | ------------------------------------- | ---------- | -------------------------------- | - | -------------------- | - | ----- | ---------- | - | - | ---------- | -
|                                                          |  | March 31, 2008                        |           
|                                                          |  |                                       |           
|                                                          |  | Equipment
 Sales &
 Related
 Services |            | Cryobanking
 & Related
 Services |   | Investment
 Activity |   | Total |           
|                                                          |  |                                       |            |                                  |   |                      |   |       |           
|                                                         
|Revenues                                                  |  | $                                     | 323,780    |                                  | $ | 97,133               |   | $     |           |   | $ | 420,913    |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Expenses                                                  |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Cost of sales                                             |  |                                       | 138,614    |                                  |   | 13,400               |   |       |           |   |   | 152,014    |  
|Research and development expenses                         |  |                                       | 559,309    |                                  |   | 48,242               |   |       |           |   |   | 607,551    |  
|Selling, general and administrative
expenses              |  |                                       | 770,595    |                                  |   | 159,554              |   |       |           |   |   | 930,149    |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Total Expenses                                            |  |                                       | 1,468,518  |                                  |   | 221,196              |   |       |           |   |   | 1,689,714  |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Operating loss                                            |  |                                       | (1,144,738 | )                                |   | (124,063             | ) |       |           |   |   | (1,268,801 | )
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Investment income                                         |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                         
|Dividends                                                 |  |                                       |           |                                  |   |                     |   |       | 630,782    |   |   | 630,782    |  
|Gain on sales of securities, net                          |  |                                       |           |                                  |   |                     |   |       | 5,830,999  |   |   | 5,830,999  |  
|Mark to market of short positions                         |  |                                       |           |                                  |   |                     |   |       | 2,176,041  |   |   | 2,176,041  |  
|Administrative expenses relating to portfolio
investments |  |                                       |           |                                  |   |                     |   |       | (21,414    | ) |   | (21,414    | )
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Total investment income, net                              |  |                                       |           |                                  |   |                     |   |       | 8,616,408  |   |   | 8,616,408  |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Other income (expense)                                    |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                         
|Interest expense, net                                     |  |                                       | (8,684     | )                                |   |                     |   |       | (20,831    | ) |   | (29,515    | )
|Other income                                              |  |                                       | 2,870      |                                  |   | 46                   |   |       |           |   |   | 2,916      |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Total other income (expense)                              |  |                                       | (5,814     | )                                |   | 46                   |   |       | (20,831    | ) |   | (26,599    | )
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Income (loss) before income taxes                         |  |                                       | (1,150,552 | )                                |   | (124,017             | ) |       | 8,595,577  |   |   | 7,321,008  |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Income tax expense                                        |  |                                       |           |                                  |   |                     |   |       |           |   |   |           |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Net income (loss)                                         |  | $                                     | (1,150,552 | )                                | $ | (124,017             | ) | $     | 8,595,577  |   | $ | 7,321,008  |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|                                                          |  |                                       |            |                                  |   |                      |   |       |            |   |   |            |  
|Depreciation and amortization                             |  | $                                     | 63,771     |                                  | $ | 4,888                |   | $     |           |   | $ | 68,659     |  
|Interest income                                           |  | $                                     |           |                                  | $ |                     |   | $     | 11,185     |   | $ | 11,185     |  
|Capital expenditures                                      |  | $                                     | 59,711     |                                  | $ | 72,291               |   | $     |           |   | $ | 132,002    |  
|Total assets                                              |  | $                                     | 3,817,377  |                                  | $ | 210,475              |   | $     | 77,442,739 |   | $ | 81,470,591 |  

8

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 2008 (Continued)
(Unaudited)

|    |                       
|--- | ----------------------
|(4) | PROPERTY AND EQUIPMENT

Property
and equipment as at March 31, 2009 and December 31, 2008 consists of:

|                                           |  |                            |            |                              |   |            |  
|------------------------------------------ |  | -------------------------- | ---------- | ---------------------------- | - | ---------- | -
|                                           |  | UNAUDITED
 March 31,
 2009 |            | AUDITED 
 December 31,
 2008 |  
|                                           |  |                            |            |                              |  
|                                          
|Machinery and equipment                    |  | $                          | 1,285,437  |                              | $ | 1,431,842  |  
|BVA Equipment on trial                     |  |                            | 629,000    |                              |   | 578,000    |  
|Land and Land Improvements                 |  |                            | 196,991    |                              |   | 196,991    |  
|Buildings                                  |  |                            | 598,422    |                              |   | 598,422    |  
|Furniture and fixtures                     |  |                            | 369,204    |                              |   | 364,732    |  
|Construction in process                    |  |                            | 1,228,995  |                              |   | 311,152    |  
|Leasehold improvements                     |  |                            | 611,565    |                              |   | 611,565    |  
|                                           |  |                            |            |                              |   |            |  
|Total Cost                                 |  | $                          | 4,919,614  |                              | $ | 4,092,704  |  
|Accumulated depreciation
 and amortization |  |                            | (1,696,907 | )                            |   | (1,784,149 | )
|                                           |  |                            |            |                              |   |            |  
|Property and equipment,
 net               |  | $                          | 3,222,707  |                              | $ | 2,308,555  |  
|                                           |  |                            |            |                              |   |            |  

Depreciation expense for the
three months ended March 31, 2009 and March 31, 2008 was $73,573 and $68,659,
respectively.

9

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 2008 (Continued)
(Unaudited)

|    |                           
|--- | --------------------------
|(5) | LOANS AND MORTGAGE PAYABLE
|    |                           
|    | LOANS PAYABLE             

At
March 31, 2009 and December 31, 2008, the Company has a bank note payable of
$600,000 and $1,035,000 respectively which is classified as a current
liability. The note is expiring on May 27, 2009 and will not be renewed. The
note bears interest at the Prime Rate less 1.50%. At March 31, 2009, this was
1.75%. The note is secured by certain marketable securities of the Company.

Short-term
debt to brokers (margin debt), is secured by the Companys marketable
securities, and totaled $17,721,817 at March 31, 2009 and $12,017,162 at
December 31, 2008. The interest rates on the Companys margin debt at March 31,
2009 ranged from 1.27% to 3.25%.

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:

|               |        |                 |   |                 |  |       |         |  |   |         | 
|-------------- | ------ | --------------- | - | --------------- |  | ----- | ------- |  | - | ------- | 
|March 31, 2010 |        | March
 31, 2011 |   | March
 31, 2012 |  | Total |        
|               |        |                 |   |                 |  |       |        
|               |        |                 |   |                 |  |       |         |  |   |         | 
|$              | 41,055 |                 | $ | 44,238          |  | $     | 335,403 |  | $ | 420,696 | 

|    |                                    
|--- | -----------------------------------
|(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.

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

|                      |  |               |            |                    |   |                         |  |   |           |  
|--------------------- |  | ------------- | ---------- | ------------------ | - | ----------------------- |  | - | --------- | -
|Put and
 Call Options |  | Selling Price |            | Fair Market
 Value |   | Unrealized
 (Loss) Gain | 
|                      |  |               |            |                    |   |                         | 
|March 31, 2009        |  | $             | 7,202,034  |                    | $ | 8,075,442               |  | $ | (873,408  | )
|December 31, 2008     |  | $             | 13,811,975 |                    | $ | 8,424,359               |  | $ | 5,387,616 |  

|    |                                   
|--- | ----------------------------------
|(7) | SECURITIES BORROWED AT
 FAIR VALUE

At
March 31, 2009 and March 31, 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 $88,873 and $4,370,084 at March 31, 2009 and March 31, 2008. The
respective market values of these positions were $117,858 and $107,871 as of
March 31, 2009 and December 31, 2008.

10

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 2008 (Continued)
(Unaudited)

|    |             
|--- | ------------
|(8) | 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 months ended March 31, 2009 and 2008 is comprised of the
following:

|                                               |  |                |            |                |   |   | 
|---------------------------------------------- |  | -------------- | ---------- | -------------- | - | - | 
|                                               |  | March 31, 2009 |            | March 31, 2008 |  
|                                               |  |                |            |                |  
|Regular tax and Alternative Minimum Tax
 (AMT) |  | $              | 1,645,000  |                | $ |  | 
|Personal Holding Company Tax (PHC)             |  |                | 665,000    |                |   |  | 
|State Franchise Taxes                          |  |                | 7,500      |                |   |  | 
|                                               |  |                |            |                |   |   | 
|Total Current Income Tax Provision             |  |                | 2,317,500  |                |   |  | 
|Deferred Income Taxes                          |  |                | (2,192,726 | )              |   |  | 
|                                               |  |                |            |                |   |   | 
|Total Income Tax Expense                       |  | $              | 124,774    |                | $ |  | 
|                                               |  |                |            |                |   |   | 

For
the three months ended March 31, 2009, the Company incurred a net loss of $1.5
million. The loss includes a reduction of approximately $6.2 million of the
Companys short positions as a result of mark-to-market accounting. This
reduction is not included in the calculation of taxable income. Thus, the
Companys taxable income utilized to estimate the current tax liability was
approximately $4.7 million.

For
the three months ended March 31, 2008, the Company had net income of
approximately $7.3 million. The net income includes an increase of
approximately $2.2 million of the Companys short positions as a result of
mark-to-market accounting. This increase is not included in the calculation of
taxable income. No regular tax or AMT was calculated as of March 31, 2008 due
to the Companys available net operating losses of approximately $9.7 million.

As
of March 31, 2008 the Company calculated their PHC tax provision would be
approximately $1,100,000. No liability was accrued as of March 31, 2008 as the
Companys management planned to eliminate its undistributed PHC income before
the end of the year

|    |                      
|--- | ---------------------
|(9) | DEFERRED INCOME TAXES

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

|                                                                 |  |                 |          |                    |   |           | 
|---------------------------------------------------------------- |  | --------------- | -------- | ------------------ | - | --------- | 
|                                                                 |  | Unaudited       |          | Audited            |  
|                                                                 |  | March 31,
 2009 |          | December
 31, 2008 |  
|                                                                 |  |                 |          |                    |  
|Fair market value adjustment for available -for -sale securities |  | $               | 868,879  |                    | $ | 6,170,340 | 
|Mark to market short positions                                   |  |                 | (296,242 | )                  |   | 1,896,483 | 
|                                                                 |  |                 |          |                    |   |           | 
|                                                                
|                                                                 |  | $               | 572,637  |                    | $ | 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

Financial instruments which
potentially subject the Company to concentrations of credit risk consist
primarily of the common stock of marketable electric utilities. At March 31,
2009, stocks representing 97.84% 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 eight different brokerage accounts, five at UBS,
one at Merrill Lynch, one at JP Morgan Chase and one at TD Ameritrade. The
limits of the insurance which is offered by the Securities Investor Protection
Corporation (SIPC) is up to $100,000 for the total amount of cash on deposit
and up to $500,000 for the total amount of securities held at Merrill Lynch and
JP Morgan Chase. UBS and TD Ameritrade provides supplemental insurance up to
the face value of the securities in excess of the SIPC limit of $500,000.

11

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 2008 (Continued)
(Unaudited)

Each 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
March 31, 2009 the fair market value of securities in excess of the SIPC
insured limit is $11,561,074 and the cash on deposit in excess of the insured
limit is $0.

For the three months ended
March 31, 2009, the sales of Blood Volume Kits accounted for 73.95% of the
Companys total consolidated operating revenue. There were four customers
(hospitals) that accounted for 64.27% of the Companys sales of Blood Volume
Kits. For the three months ended March 31, 2008, the sales of Blood Volume Kits
accounted for 77.48% of the Companys total consolidated operating revenue.
During this same period, there were three customers (hospitals) that accounted
for 38.02% of the Companys sales of Blood Volume Kits.

Management believes that the
loss of any one customer would have an adverse effect on the Companys
consolidated business for a short period of time. All four of these 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 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.

|     |                           
|---- | --------------------------
|(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 in the
quarters ended March 31, 2009 and March 31, 2008 was $2,963 and $2,870.

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 March 31, 2009
and March 31, 2008 were $594,972 and $607,551, respectively.

12

---



DAXOR CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2009 and March 31, 2008 (Continued)
(Unaudited)

|     |                                           
|---- | ------------------------------------------
|(13) | RECENTLY ISSUED ACCOUNTING
 PRONOUNCEMENTS

In June 2008, the FASB
issued FSP No. EITF 03-6-1, Determining Whether Instruments Granted in
Share-Based Payment Transactions Are Participating Securities (FSP EITF
03-6-1). FSP EITF 03-6-1 concludes that unvested share-based payment awards
that contain rights to receive nonforfeitable dividends or dividend equivalents
are participating securities, and thus, should be included in the two-class
method of computing earnings per share (EPS). FSP EITF 03-6-1 is effective
for fiscal years beginning after December 15, 2008, and interim periods within
those years. Early application of EITF 03-6-1 is prohibited. This FSP also
requires that all prior-period EPS data be adjusted retrospectively. The
Company is currently evaluating the impact FSP EITF 03-6-1 will have on its
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.

13

---



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. The TEAM HF study is a six month study
currently anticipated to begin by July 2009.

RESULTS OF OPERATIONS

Three months ended March 31,
2009 as compared with three months ended March 31, 2008:

Operating
Revenues and Expenses

For
the three months ended March 31, 2009, consolidated operating revenues increased
to $434,037 from $420,913 for the same period in 2008, an increase of $13,124
or 3.11%. This was mainly the result of an increase in Blood Volume Kit Sales.
There were no Blood Volume Analyzers being sold during the current quarter or
during the same period last year.

For
the three months ended March 31, 2009, revenue from Blood volume kit sales
increased by $15,075 or 5.12% to $309,452 from $294,377 for the same period in
2008. This can mainly be attributed to an increase in the number of kits sold
from 868 in 2008 to 979 during the current period for an increase of 12.78%.
There were 56 Blood Volume Analyzers placed at March 31, 2009 versus 53 at
March 31, 2008. For the three months ended March 31, 2009, the Company provided
105 Volumex doses free of charge to facilities utilizing the BVA-100 for
research versus 111 during the same period in 2008.

14

---



The
following tables provide gross margin information on Equipment Sales &
Related Services for the three months ended March 31, 2009 and 2008:

|                                       |  |                                              |         |                                                              |   |                                          |   |   |         |  
|-------------------------------------- |  | -------------------------------------------- | ------- | ------------------------------------------------------------ | - | ---------------------------------------- | - | - | ------- | -
|Equipment
 Sales and Related Services: |  | Kit
 Sales Three Months Ended March 31, 2009 |         | Equipment
 Sales and Other Three Months Ended March 31, 2009 |   | Total
 Three Months Ended March 31, 2009 |  
|                                       |  |                                              |         |                                                              |   |                                          |  
|Revenue                                |  | $                                            | 309,452 |                                                              | $ | 35,511                                   |   | $ | 344,963 |  
|Cost of Goods Sold                     |  |                                              | 107,415 |                                                              |   | 32,624                                   |   |   | 140,039 |  
|                                       |  |                                              |         |                                                              |   |                                          |   |   |         |  
|Gross Profit                           |  | $                                            | 202,037 |                                                              | $ | 2,887                                    |   | $ | 204,924 |  
|                                       |  |                                              |         |                                                              |   |                                          |   |   |         |  
|Gross Profit Percentage                |  |                                              | 65.2    | %                                                            |   | 8.1                                      | % |   | 59.4    | %

|                                       |  |                                              |         |                                                              |   |                                          |   |   |         |  
|-------------------------------------- |  | -------------------------------------------- | ------- | ------------------------------------------------------------ | - | ---------------------------------------- | - | - | ------- | -
|Equipment
 Sales and Related Services: |  | Kit
 Sales Three Months Ended March 31, 2008 |         | Equipment
 Sales and Other Three Months Ended March 31, 2008 |   | Total
 Three Months Ended March 31, 2008 |  
|                                       |  |                                              |         |                                                              |   |                                          |  
|Revenue                                |  | $                                            | 294,377 |                                                              | $ | 29,403                                   |   | $ | 323,780 |  
|Cost of Goods Sold                     |  |                                              | 120,168 |                                                              |   | 18,446                                   |   |   | 138,614 |  
|                                       |  |                                              |         |                                                              |   |                                          |   |   |         |  
|Gross Profit                           |  | $                                            | 174,209 |                                                              | $ | 10,957                                   |   | $ | 185,166 |  
|                                       |  |                                              |         |                                                              |   |                                          |   |   |         |  
|Gross Profit Percentage                |  |                                              | 59.2    | %                                                            |   | 37.3                                     | % |   | 57.2    | %

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

Total
S G & A (selling, general and administrative) and R&D (Research and
Development) costs for Equipment Sales and Related Services were $1,178,962 for
the three months ended March 31, 2009 versus $1,329,904 for the same period in
2008, for a decrease of $150,942 or 11.34%. The main reason for this was
decreased payroll and related costs of $108,365 for the three months ended
March 31, 2009 as compared to the same period in 2008.

Research
& Development expenses for Equipment Sales and Related Services were
$547,593 for the three months ended March 31, 2009 versus $559,309 for the same
period in 2008 which is a decrease of $11,716 or 2.09%. 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 $89,074 in 2009 from $97,133 in 2008, for a
decrease of $8,059 or 8.30%. The main reason for this was a decrease in Semen
Bank Storage fees and related items of $6,015 for the three months ended March
31, 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
$217,103 for the three months ended March 31, 2009 versus $207,796 for the same
period in 2008, for an increase of $9,307 or 4.48%.

Consolidated
Operating Expenses

The
total consolidated operating expenses including cost of sales for the first
quarter of 2009 were $1,548,533 versus $1,689,714 in 2008 for a decrease of
$141,181 or 8.36%, which is mainly attributable to a reduction in payroll and related
expenses of $106,512.

15

---



INVESTMENT PORTFOLIO

Dividend
Income

Dividend
income earned on the Companys security portfolio for the three months ended
March 31, 2009 was $987,097 versus $630,782 for the same period in 2008 for an
increase of $356,315 or 56.49%. 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 March 31, 2009.

Investment
Gains (Losses)

Gains on the sale of
investments were $5,070,441 for the three months ended March 31, 2009 versus
$5,830,999 for the same period in 2008 for a decrease of $760,558 or 13.04%.
For the current quarter, the Company had a loss from the marking to the market
of short positions of stocks and put and call options of ($6,264,931) versus a
gain of $2,176,041 for the same period in 2008. Interest expense net of
interest income was $67,699 for the three months ended March 31, 2009 versus
$29,515 for the three months ended March 31, 2008. Administrative expenses
relating to portfolio investments were $31,886 in 2008 versus $ 21,414 for the
same period in 2008. A detailed description of investment policies and
historical records over the past 16 years was included in the recent 10-K
filing for the year ended December 31, 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 March 31, 2009, cash and cash equivalents totaled $37,612 versus $2,545,040
at December 31, 2008. Cash used in operating activities was $2,966,222 for the
three month period ended March 31, 2009. The decrease in cash and cash equivalents
was primarily due to funding the operating loss for the current quarter.

Cash
used in investing activities was $7,436,268 for the three months ended March
31, 2009. The decrease is attributable to the acquisition of property and
equipment of $987,725 and the Companys investment activities of $6,448,543.

A
total of $7,895,062 of cash was provided during the current quarter from
financing activities and this was primarily due to the proceeds obtained from
margin loans payable.

In
November of 2008, a construction project commenced at 109 Meco Lane. Management
expects the project to be completed by the end of June 2009 and the total cost
to be approximately $1,500,000. The project involves the construction of
laboratory and office space.

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 97 consecutive quarters.

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

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|1. | The Companys investment
 goals are capital preservation and maintaining returns on capital with a high
 degree of safety.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|2. | 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.

16

---



|   |                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
|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. In
 the event of a cash only offer, the Company will receive cash and be forced
 to sell it 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.

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.

17

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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.

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 months ended March 31, 2009.

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 March 31, 2009,
unrealized gains were $19,371,070 and unrealized losses were ($16,888,557) on
available for sale securities for a ratio of 1.15 to 1.

At March 31, 2009, 97.43% 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 107 separate common and preferred
stocks. As of March 31, 2009 there were two holdings of common stock which
comprised 24.98% of the total market value of the available for sale
investments.

18

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Daxor Corporation
Summary of Available for Sale Securities
As at March 31, 2009

|                 |  |                          |            |             |   |                                    |  |   |           |  
|---------------- |  | ------------------------ | ---------- | ----------- | - | ---------------------------------- |  | - | --------- | -
|Type of Security |  | Total
 Fair Market Value |            | Total
 Cost |   | Total
 Net Unrealized Gain
 (Loss) | 
|                 |  |                          |            |             |   |                                    | 
|Common Stock     |  | $                        | 56,539,952 |             | $ | 53,357,726                         |  | $ | 3,182,226 |  
|Preferred Stock  |  |                          | 1,347,154  |             |   | 2,010,301                          |  |   | (663,147  | )
|Mutual Fund      |  |                          | 145,250    |             |   | 148,811                            |  |   | (3,561    | )
|                 |  |                          |            |             |   |                                    |  |   |           |  
|Total Equities   |  | $                        | 58,032,356 |             | $ | 55,516,838                         |  | $ | 2,515,518 |  
|Bonds            |  |                          | 0          |             |   | 33,005                             |  |   | (33,005   | )
|                 |  |                          |            |             |   |                                    |  |   |           |  
|Total Portfolio  |  | $                        | 58,032,356 |             | $ | 55,549,843                         |  | $ | 2,482,513 |  
|                 |  |                          |            |             |   |                                    |  |   |           |  

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

|                  |  |                          |            |             |   |                                   |  |   |            |  
|----------------- |  | ------------------------ | ---------- | ----------- | - | --------------------------------- |  | - | ---------- | -
|Type
 of Security |  | Total
 Fair Market Value |            | Total
 Cost |   | Total
 Net Unrealized Gain (Loss) | 
|                  |  |                          |            |             |   |                                   | 
|Common Stock      |  | $                        | 33,308,710 |             | $ | 67,105,402                        |  | $ | 33,796,692 |  
|Preferred Stock   |  |                          | 2,358,400  |             |   | 2,463,834                         |  |   | 105,434    |  
|                  |  |                          |            |             |   |                                   |  |   |            |  
|Total Equities    |  |                          | 35,667,110 |             |   | 69,569,236                        |  |   | 33,902,126 |  
|Bonds             |  |                          | 65,770     |             |   | 30,800                            |  |   | (34,970    | )
|                  |  |                          |            |             |   |                                   |  |   |            |  
|Total Portfolio   |  | $                        | 35,732,880 |             | $ | 69,600,036                        |  | $ | 33,867,156 |  
|                  |  |                          |            |             |   |                                   |  |   |            |  

Summary of Proceeds Received
and Market Valuation at 03/31/09
Put and Call Options

|                                                          |  |                                          |           |                                                                  |   |                                                    |  |                            |           |                                                       |   |           |  |   |          |  
|--------------------------------------------------------- |  | ---------------------------------------- | --------- | ---------------------------------------------------------------- | - | -------------------------------------------------- |  | -------------------------- | --------- | ----------------------------------------------------- | - | --------- |  | - | -------- | -
|Total
 Proceeds
 Received on
 open positions
 at 01/01/09 |  | Sale of
 Options from
 01/01/09-03/31/09 |           | Expirations and
 Assignments of
 Options from
 01/01/09-03/31/09 |   | Proceeds
 Received on
 open positions
 at 03/31/09 |  | Market
 Value at
 03/31/09 |           | Unrealized
 Appreciation
 (Depreciation)
 at 03/31/09 |  
|                                                          |  |                                          |           |                                                                  |   |                                                    |  |                            |           |                                                       |  
|$13,811,975                                               |  | $                                        | 6,750,109 |                                                                  | $ | 13,360,050                                         |  | $                          | 7,202,034 |                                                       | $ | 8,075,442 |  | $ | (873,408 | )

Summary of Proceeds Received
and Market Valuation at 03/31/08
Put and Call Options

|                                                          |  |                                          |           |                                                                  |   |                                                    |  |                            |           |                                                       |   |           |  |   |           | 
|--------------------------------------------------------- |  | ---------------------------------------- | --------- | ---------------------------------------------------------------- | - | -------------------------------------------------- |  | -------------------------- | --------- | ----------------------------------------------------- | - | --------- |  | - | --------- | 
|Total
 Proceeds
 Received on
 open positions
 at 01/01/08 |  | Sale of
 Options from
 01/01/08-03/31/08 |           | Expirations and
 Assignments of
 Options from
 01/01/08-03/31/08 |   | Proceeds
 Received on
 open positions
 at 03/31/08 |  | Market
 Value at
 03/31/08 |           | Unrealized
 Appreciation
 (Depreciation)
 at 03/31/08 |  
|                                                          |  |                                          |           |                                                                  |   |                                                    |  |                            |           |                                                       |  
|$ 7,645,833                                               |  | $                                        | 8,434,122 |                                                                  | $ | 6,266,742                                          |  | $                          | 9,813,213 |                                                       | $ | 7,685,008 |  | $ | 2,128,205 | 

19

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Item
4T. Controls and Procedures

As of March 31, 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 March 31, 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 March 31, 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 currently has one legal action pending. This action covers the normal
range of the Companys business. It is the opinion of management that the
Company has substantial legal and factual defenses to the plaintiffs claims
and we intend to defend this action vigorously.

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

None.

Item
5. Other Information

None.

20

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Item
6. Exhibits

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

21

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SIGNATURES

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: May 11, 2009 | By: | /s/ JOSEPH FELDSCHUH, M.D.            
|                   |     |                                       
|                   |     | JOSEPH FELDSCHUH, M.D.,               
|                   |     | President and Chief
 Executive Officer
|                   |     |                                       
|DATE: May 11, 2009 | By: | /s/ DAVID FRANKEL                     
|                   |     |                                       
|                   |     | DAVID FRANKEL                         
|                   |     | Chief Financial Officer               

22

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