SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   ----------

                                    FORM 10-Q

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

                         FOR QUARTER ENDED JUNE 30, 2005
                         Commission 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 |_|

      Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12-b2 of the Exchange Act)

                            Yes | |           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                                 OUTSTANDING AT JULY 15, 2005
--------------------------------------------------------------------------------
      COMMON STOCK
PAR VALUE: $.O1 per share                                4,637,326

<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                <C>
PART I.  FINANCIAL INFORMATION

        Item 1. FINANCIAL STATEMENTS (Unaudited)

                 Condensed Consolidated Balance Sheets at June 30, 2005 and
                 December 31, 2004 - (Unaudited)                                   F-1

                 Condensed Consolidated Statements of Operations
                 for the three and six months ended June 30,2005 and
                 2004 - (Unaudited)                                                F-2

                 Condensed Consolidated Statements of Cash Flows
                 for the six months ended June 30, 2005 and 2004 - (Unaudited)     F-3

                 Notes to Condensed Consolidated Financial
                 Statements - (Unaudited)                                          F-4-10

         Item 2. Management's Discussion and Analysis of
                 Financial Condition and Results of Operations                     3-4

         Item 3. Quantitative and Qualitative Disclosures about Market Risk        4-6

         Item 4. Controls and Procedures                                           7

PART II. OTHER INFORMATION

         Item 1. Legal Proceedings                                                 7

         Item 2. Unregistered Sales of Equity Securities and Use of Proceeds       7

         Item 3. Defaults Upon Senior Securities                                   7

         Item 4. Submission of Matters to a Vote of Security Holders               7

         Item 5. Other Information                                                 7

         Item 6. Exhibits and Reports on Form 8-K                                  7
</TABLE>

<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY

PART I  FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

        Index to Financial Statements

        Condensed Consolidated Balance Sheets at June 30, 2005 and
        December 31, 2004 - (Unaudited)                                   F-1

        Condensed Consolidated Statements of Operations for the three
        and six months ended June 30, 2005 and 2004 - (Unaudited)         F-2

        Condensed Consolidated Statements of Cash Flows for the six
        months ended June 30, 2005 and 2004 - (Unaudited)                 F-3

        Notes to Condensed Consolidated Financial Statements -
        (Unaudited)                                                       F-4-10


                                       2
<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY
                   CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

DAXOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS [UNAUDITED]

<TABLE>
<CAPTION>
                                                        UNAUDITED           UNAUDITED
                                                                            Restated
                                                        June 30,          December 31,
                                                          2005                2004
                                                      ------------        ------------
<S>                                                   <C>                 <C>
--------------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------------
CURRENT ASSETS
Cash and cash equivalents                             $          0        $      5,079
Available-for-sale securities                           61,594,741          54,806,400
Accounts receivable                                        180,062             202,649
Inventory                                                  139,338             139,338
Prepaid expenses and other current assets                  171,321             453,284
                                                      ------------        ------------
Total Current Assets                                    62,085,462          55,606,750
PROPERTY AND EQUIPMENT, NET                                383,000             290,572
Other assets                                                32,158              32,158
                                                      ------------        ------------
Total Assets                                          $ 62,500,620        $ 55,929,480
                                                      ============        ============
--------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------------------------------------------------------
CURRENT LIABILITIES

Accounts payable and accrued liabilities              $    119,711        $     89,162
Loans payable                                            6,543,041           4,113,285
Other liabilities                                            8,582               8,557
Deferred option premiums                                 1,105,102             974,161
Deferred revenue                                           169,218             121,083
Deferred taxes                                          12,852,447          10,845,531
                                                      ------------        ------------
Total Current Liabilities                               20,798,101          16,151,779
                                                      ------------        ------------
STOCKHOLDERS' EQUITY
Common stock, $.01 par value
Authorized - 10,000,000 shares
Issued - 5,309,750 shares
Outstanding - 4,637,326 and 4,610,826
 shares at June 30, 2005 and December 31, 2004,
 respectively                                               53,097              53,097
Additional paid in capital                              10,296,551           9,821,563
Accumulated other comprehensive income                  23,868,831          21,053,089
Retained earnings                                       13,043,306          14,486,081
Treasury stock, at cost, 672,424 and 698,924
 shares, respectively                                   (5,559,266)         (5,636,129)
                                                      ------------        ------------
Total Stockholders' Equity                              41,702,519          39,777,701
                                                      ------------        ------------
Total Liabilities and Stockholders' Equity            $ 62,500,620        $ 55,929,480
                                                      ============        ============
</TABLE>

See accompanying notes to condensed consolidated financial statements


                                      F-1
<PAGE>

DAXOR CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [UNAUDITED]

<TABLE>
<CAPTION>
                                                                          THREE MONTHS ENDED               SIX MONTHS ENDED
                                                                               JUNE 30                         JUNE 30
                                                                                       Restated                        Restated
                                                                         2005            2004            2005            2004
                                                                     -----------     -----------     -----------     -----------
<S>                                                                  <C>             <C>             <C>             <C>
Revenues:
Operating Revenues - Equipment sales and
 related services                                                    $   164,178     $    92,915     $   336,396     $   259,071

Operating Revenues - Cryobanking and related services                    106,481         117,250         220,176         241,018
                                                                     -----------------------------------------------------------
Total Revenues                                                           270,659         210,165         556,572         500,089
                                                                     -----------------------------------------------------------

Costs and expenses:

Costs of equipment sales and related services                            287,220         263,865         666,942         583,028

Costs of cryobanking and related services                                 87,960          72,021         162,627         134,020

Selling, general, and administrative                                   1,117,225         830,480       2,174,260       1,524,836

                                                                     -----------------------------------------------------------
Total costs and expenses                                               1,492,405       1,166,366       3,003,829       2,241,884
                                                                     -----------------------------------------------------------

Loss from operations                                                  (1,221,746)       (956,201)     (2,447,257)     (1,741,795)

Other income (expenses):

Dividend income                                                          510,576         473,231       1,048,696         966,800

Gains/ (losses)  on sale of securities                                  (307,276)        201,630          81,760         426,696

Other revenues                                                             4,563           3,643           8,915           7,286

Interest expense, net                                                    (63,299)        (12,533)       (103,712)        (31,976)

Administrative expenses relating to portfolio investments                (14,884)        (15,801)        (31,177)        (31,602)

                                                                     -----------------------------------------------------------
Total other income                                                       129,680         650,170       1,004,482       1,337,204
                                                                     -----------------------------------------------------------

Net loss before income taxes                                          (1,092,066)       (306,031)     (1,442,775)       (404,591)

Provision for income taxes                                                     0               0               0               0

Net loss                                                             $(1,092,066)    $  (306,031)    $(1,442,775)    $  (404,591)
                                                                     ===========================================================

Weighted average number of shares outstanding - basic and diluted      4,637,326       4,611,993       4,632,493       4,622,326

Net loss per common equivalent share-
Basic and diluted                                                    $     (0.24)    $     (0.07)    $     (0.31)    $     (0.09)
                                                                     ===========================================================
</TABLE>

See accompanying notes to condensed consolidated financial statements.


                                      F-2
<PAGE>

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

<TABLE>
<CAPTION>
                                                                           Restated
                                                           JUNE 30,        JUNE 30,
                                                             2005           2004
                                                         -----------      ---------
<S>                                                      <C>              <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                 $(1,442,775)     $(404,591)
Adjustments to reconcile net
loss to net cash used in
operating activities:
  Depreciation & amortization                                 24,483         23,880
  Gains on sale of investments                               (81,760)      (426,696)
Change in assets and liabilities:
  (Increase) decrease in accounts receivable                  22,587        (86,889)
  Decrease in other current assets                           281,963         11,652
  Increase (decrease) in accounts payable, accrued
   and other liabilities                                      30,574        (34,915)
  Increase in deferred income                                 48,135        162,894
                                                         -----------      ---------

Net cash used in operating activities                     (1,116,793)      (754,665)
                                                         -----------      ---------

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property and equipment                          (116,911)       (16,894)

Purchase of investments, net of sales                     (2,858,083)      (831,035)

Proceeds from broker loans, net of repayments              2,429,756        937,759
Proceeds from "deferred option premiums" not closed        1,105,102        555,874
                                                         -----------      ---------
Net cash provided by investing activities                    559,864        645,704
                                                         -----------      ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank loan                                           --        600,000
Purchase of treasury stock                                        --       (474,335)
Proceeds from sale of treasury stock                         551,850             --

                                                         -----------      ---------
Net cash provided by financing activities                    551,850        125,665
                                                         -----------      ---------

Net increase (decrease) in cash and cash equivalents          (5,079)        16,704
Cash and cash equivalents at beginning of period               5,079          3,324
                                                         -----------      ---------

Cash and cash equivalents at end of period               $         0      $  20,028
                                                         ===========      =========
</TABLE>

See accompanying notes to condensed consolidated financial statements


                                      F-3
<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2005 AND 2004

(1) BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

BUSINESS

      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 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 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 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 years ended December 31,
2004, 2003 and 2002, included in Daxor Corporation's Annual Report on Form 10-K
for the fiscal year ended December 31, 2004. Operating results for the three and
six month periods ended June 30, 2005 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2005.

      These 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.

Principles of Consolidation

      The consolidated financial statements include the accounts of Daxor
Corporation and Scientific Medical Systems Corp, a wholly-owned subsidiary. All
significant inter-company transactions and balances have been eliminated in
consolidation.

Segment Reporting

      The Company currently reports three business segments; Equipment Sales and
Related Services, Cryobanking and Related Services, and Investment Portfolio
Activity.

      The Equipment Sales and Related Services segment encompasses the activity
of the Blood Volume Analyzer equipment. This includes equipment sales, equipment
rentals, equipment delivery fees, 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 and handling
fees.

      The Investment Portfolio segment reports the activity of the Company's
Investments. This includes all earnings, realized gains and losses, and expenses
relating to the Investment Portfolio.

Available-for-Sale Securities

      Available-for-sale securities represent investments in debt and equity
securities (primarily common and preferred stock of 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.


                                      F-4
<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                       JUNE 30, 2005 AND 2004 (Continued)

      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.

Revenue Recognition

      The Company recognizes operational revenues from several sources. The
first source is the outright sale of equipment, the Blood Volume Analyzer, to
customers. The second source is the sale of single-use radioactive doses
(Volumex) that are injected into the patient and measured by the Blood Volume
Analyzer. The third source of revenue is service contracts on the Blood Volume
Analyzer, after it has been sold to a customer. The fourth source of revenue is
the storage fees associated with cryobanked blood and semen specimens.

      The Company currently offers three different methods of purchasing the
Blood Volume Analyzer equipment. A customer may purchase the equipment directly,
lease the equipment, or rent the equipment on a month-to-month basis. The
revenues generated by a direct sale or a monthly rental are recognized as
revenue in the period in which the sale or rental occurred. If a customer is to
select the "lease" option, the Company refers its customer to a third party
finance company with which it has established a relationship, and if the lease
is approved, the Company receives 100% of the sales proceeds from the finance
company and recognizes 100% of the revenue. The finance company then deals
directly with the customer with regard to lease payments and related
collections.

      The sales of the single-use radioactive doses (Volumex) that are used in
conjunction with the Blood Volume Analyzer are recognized as revenue in the
period in which the sale occurred.

      When Blood Volume Analyzer equipment has been sold to a customer, the
Company offers a one year warranty on the product, which covers all mechanical
failures. This one year warranty is effective on the date of sale of the
equipment. After the one year period expires, customers may purchase a service
contract through the Company, which is usually offered in one-year increments.
These service contracts are recorded by the Company as deferred revenue and are
amortized into income in the period in which they apply. As at December 31, 2004
and 2003, deferred revenue pertaining to these service contracts was $17,465 and
$0, respectively.

      The storage fees associated with the cryobanked blood and semen samples
are recognized as income in the period for which the fee applies. The Company
invoices customers for storage fees for various time periods. These time periods
range from one month up to one, two or three years. The Company will only
recognize revenue for those storage fees that are earned in the current
reporting period, and will defer the remaining revenues to the period in which
they are earned. It is this revenue recognition policy that has necessitated the
restatement of the 2004 reporting periods included in these financial
statements.

Income Taxes

      The Company accounts for income taxes under the provisions of SFAS No.
109, Accounting for Income Taxes. This pronouncement requires recognition of
deferred tax assets and liabilities for the estimated future tax consequences of
event attributable to differences between the financial statement carrying
amounts of existing assets and liabilities and their respective tax bases and
operating loss and tax credit carry forwards. Deferred tax assets and
liabilities are measured using enacted tax rates in effect for the year in which
the differences are expected to be recovered or settled. The effect on deferred
tax assets and liabilities of changes in tax rates is recognized in the
statement of operations in the period in which the enactment rate changes.
Deferred tax assets and liabilities are reduced through the establishment of a
valuation allowance at such time as, based on available evidence, it is more
likely than not that the deferred tax assets will not be realized.

Comprehensive Income (Loss)

      The Company reports components of comprehensive income under the
requirements of SFAS No. 130, Reporting Comprehensive Income. This statement
establishes rules for the reporting of comprehensive income and requires certain
transactions to be presented as separate components of stockholders' equity. The
Company currently reports the unrealized holding gains and losses on
available-for-sale securities, net of deferred taxes, as accumulated other
comprehensive income (loss).


                                      F-5
<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                       JUNE 30, 2005 AND 2004 (Continued)

Product Warrantees and Related Liabilities

      The Company offers a one year warranty on the Blood Volume Analyzer
equipment. This warranty is effective on the date of sale and covers all
mechanical failures of the equipment. All major components of the equipment are
purchased and warranteed by the original 3rd party manufacturers.

      Once the initial one year warranty period has expired, customers may
purchase annual service contracts for the equipment. These service contracts
warranty the mechanical failures of the equipment that are not associated with
normal wear-and-tear of the components.

      To date, the Company has not experienced any major mechanical failures on
any equipment sold. In addition, the majority of the potential liability would
revert to the original manufacturer. Due to this history, a liability has not
been recorded with respect to product / warranty liability.

Stock Based Compensation

      The Company applies the intrinsic-value-based method of accounting
prescribed by Accounting Principles Board, or APB, Opinion No. 25, Accounting
for Stock Issued to Employees, and related interpretations including Financial
Accounting Standards Board, or FASB, Interpretation No. 44, Accounting for
Certain Transactions involving Stock Compensation, an Interpretation of APB
Opinion No. 25, issued in March 2000, to account for its stock options. Under
this method, compensation expense is recorded on the date of the grant only if
the current market price of the underlying stock exceeded the exercise price.
SFAS No. 123, Accounting for Stock Based Compensation, established accounting
and disclosure requirements using a fair-value-based method of accounting for
stock-based employee compensation plans. As allowed by SFAS No. 123, the Company
has elected to continue to apply the intrinsic-value-based method of accounting
described above, and has adopted only the disclosure requirements of SFAS No.
123. The following table illustrates the effect on the net loss if the
fair-value-based method has been applied to all outstanding and unvested awards
in each period.

<TABLE>
<CAPTION>
                                            Three Months Ended                 Six Months Ended
                                                  June 30                           June 30
                                                          Restated                          Restated
                                           2005             2004             2005             2004
                                       ----------------------------      ----------------------------
<S>                                    <C>              <C>              <C>              <C>
Net loss, as reported                  $(1,092,066)     $  (306,031)     $(1,442,775)     $  (404,591)

Deduct total stock-based employee
compensation expense determined
under fair-value-based method, net
of tax                                     (27,255)         (10,966)         (58,566)         (17,048)
                                       -----------      -----------      -----------      -----------

Proforma net loss                      $(1,119,321)     $  (316,997)     $(1,501,341)     $  (421,639)
                                       ===========      ===========      ===========      ===========

Pro forma net loss per
common share: basic and diluted        $      (.24)     $      (.07)     $      (.32)     $      (.09)
                                       ===========      ===========      ===========      ===========
</TABLE>

      5,000 and 25,000 stock options were issued to employees in the three
months ended June 30, 2005 and 2004, respectively, and a total of 18,000 and
25,000 were issued to employees in the six months ended June 30, 2005 and 2004,
respectively. All of these options were issued under the Company's 2004 Stock
Option Plan.

      These fair values were estimated using the Black-Scholes option pricing
model, based on the following assumptions:

<TABLE>
<CAPTION>
                                                 Three Months Ended             Six Months Ended
                                                      June 30                       June 30
                                               2005         2004             2005             2004
                                               ---------------------      ----------------------------
<S>                                            <C>       <C>              <C>              <C>
Dividend yield                                    0%              0%               0%               0%
Volatility                                     24.8%     22.2%-28.8%      24.8%-28.8%      22.2%-28.8%
Risk-free interest rate                        3.39%      .98%-1.91%       .98%-5.81%       .98%-1.91%
Expected term of options (in years)               3               3                3                3
</TABLE>


                                      F-6
<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                       JUNE 30, 2005 AND 2004 (Continued)

Reclassifications

      Certain reclassifications have been made to the Company's 2004 condensed
consolidated financial statements to conform with the presentation of the 2005
condensed consolidated financial statements.

Restatements

      Restatements have been made to the 2004 financial statements to reflect a
change in accounting principle pertaining to the revenues recognized on long
term blood and semen storage (deferred revenues). The 2004 figures now reflect
deferred revenues for those storage fees that were invoiced to customers in
advance of services. The deferred revenues will be reclassified as income in the
periods in which they are earned.

      The effects of these changes on revenues, operating income, net income and
earnings per share are summarized below.

                                          Three months ended    Six months ended
                                            June 30, 2004         June 30, 2004

Revenues                                      $ (44,571)            $(162,894)
                                              =========             =========
Operating income                              $ (44,571)            $(162,894)
                                              =========             =========
Net income                                    $ (44,571)            $(162,894)
                                              =========             =========
EPS                                           $   (0.01)            $   (0.04)
                                              =========             =========

(2) AVAILABLE-FOR-SALE SECURITIES

      Upon adoption of SFAS No. 115, Accounting for Certain Investments in Debt
and Equity Securities, management has determined that the company's portfolio is
best characterized as "Available-For-Sale". SFAS No. 115 requires these
securities to be recorded at their fair market values, with the offsetting
unrealized holding gains or losses being recorded as Comprehensive Income
(Loss)in the Equity section of the Balance Sheet. The adoption of this
pronouncement has resulted in an increase in the carrying value of the company's
available-for-sale securities, as at March 31, 2005 and December 31, 2004, of
approximately 136.10% and 139.25%,respectively, over its historical cost.

      In accordance with the provisions of SFAS No. 115, the adjustment in
stockholders' equity has been made net of the tax effect had these gains been
realized.

      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:

                                  June 30, 2005
                                 --------------
Type of                                            Unrealized      Unrealized
security             Cost         Fair Value      Holding gains   holding losses
--------         -----------      -----------     -------------   --------------

Equity           $24,641,638      $61,376,003      $37,018,917      $   284,552
Debt                 231,824          218,738           36,167           49,253
                 -----------      -----------      -----------      -----------
Total            $24,873,462      $61,594,741      $37,055,084      $   333,805
                 ===========      ===========      ===========      ===========

                                December 31, 2004
                                -----------------
Type of                                            Unrealized      Unrealized
security             Cost         Fair Value      Holding gains   holding losses
--------         -----------      -----------     -------------   --------------

Equity           $22,802,568      $54,741,650      $32,125,500      $   186,417
Debt                 105,212           64,750            7,792           48,255
                 -----------      -----------      -----------      -----------
Total            $22,907,780      $54,806,400      $32,133,292      $   234,672
                 ===========      ===========      ===========      ===========

      At June 30,2005 the securities held by the Company had a market value of
$61,594,741 and a cost basis of $24,873,462 resulting in a net unrealized gain
of $36,721,279 or 147.6% of cost.

      At December 31, 2004, the securities held by the Company had a market
value of $54,806,400 and a cost basis of $22,907,780 resulting in a net
unrealized gain of $31,898,620 or 139.25% of cost.


                                      F-7
<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                       JUNE 30, 2005 AND 2004 (Continued)

      At June 30, 2005 and December 31, 2004, marketable securities, primarily
consisting of preferred and common stocks of utility companies, are valued at
fair value. Debt securities consist of Corporate Bonds & Notes. As at June30,
2005, these items, which have a cost of $231,824 are scheduled to mature at
various times thru February 2011. Two bonds, which have a combined cost of
$48,255 are currently in default, with maturity dates prior to December 31,
2004. Management is awaiting final settlement of the bonds, and is not yet able
to determine the amount of loss, if any, that may occur. Accordingly, the
Company has valued these bonds at zero and recorded an unrealized loss of the
entire cost of the bonds.

(3) SEGMENT ANALYSIS

      The following table summarizes the results of each segment described in
note (1) for the six months ending June 30, 2005

<TABLE>
<CAPTION>
                                         Equipment sales     Cryobanking
                                           and related       and related        Investment        Segment
                                             services          services         portfolio          Totals
<S>                                        <C>               <C>               <C>              <C>
Revenues and income                        $   336,396       $   220,176       $ 1,130,456      $ 1,687,028
Other revenues                                   8,915                                                8,915
                                           ----------------------------------------------------------------
Total revenues and income                      345,311           220,176         1,130,456        1,695,943
                                           ================================================================
Costs of sales and services                    666,942           162,627                            829,569
Selling-G & A expenses                       2,091,434            82,826                          2,174,260
Expenses related to investment income                                              134,889          134,889
                                           ----------------------------------------------------------------
Total Costs & expenses                       2,758,376           245,453           134,889        3,138,718
                                           ----------------------------------------------------------------

                                           ----------------------------------------------------------------
Segment income/(loss)                      $(2,413,065)      $   (25,277)      $   995,567      $(1,442,775)
                                           ================================================================
</TABLE>

The following table summarizes the results of each segment described in note (1)
for the three months ended June 30, 2005

<TABLE>
<CAPTION>
                                         Equipment sales     Cryobanking
                                           and related       and related        Investment        Segment
                                             services          services         portfolio          Totals
<S>                                        <C>               <C>               <C>              <C>
Revenues and income                        $   164,178       $   106,481       $   203,300      $   473,959
Other revenues                                   4,563                                                4,563
                                           ----------------------------------------------------------------
Total revenues and income                      168,741           106,481           203,300          478,522
                                           ================================================================

Costs of sales and services                    287,220            87,960                            375,180

Selling-G & A expenses                       1,083,831            33,394                          1,117,225
Expenses related to investment income                                               78,183           78,183
                                           ----------------------------------------------------------------

Total Costs & expenses                       1,371,051           121,354            78,183        1,570,588
                                           ----------------------------------------------------------------

                                           ----------------------------------------------------------------
Segment income/(loss)                      $(1,202,310)      $   (14,873)      $   125,117      $(1,092,066)
                                           ================================================================
</TABLE>


                                      F-8
<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                       JUNE 30, 2005 AND 2004 (Continued)

The following table summarizes the results of each segment described in note (1)
for the six months ending June 30, 2004

<TABLE>
<CAPTION>
                                         Equipment sales     Cryobanking
                                           and related       and related        Investment        Segment
                                             services          services         portfolio          Totals
<S>                                        <C>               <C>               <C>              <C>
Revenues and income                        $   259,071       $   241,018       $ 1,393,496      $ 1,893,585
Other revenues                                   7,286                                                7,286
                                           ----------------------------------------------------------------
Total revenues and income                      266,357           241,018         1,393,496        1,900,871
                                           ================================================================

Costs of sales and services                    583,028           134,020                            717,048

Selling-G & A expenses                       1,405,251           119,585                          1,524,836
Expenses related to investment income                                               63,578           63,578
                                           ----------------------------------------------------------------

Total Costs & expenses                       1,988,279           253,605            63,578        2,305,462
                                           ----------------------------------------------------------------

                                           ----------------------------------------------------------------
Segment income/(loss)                      $(1,721,922)      $   (12,587)      $ 1,329,918      $  (404,591)
                                           ================================================================
</TABLE>

The following table summarizes the results of each segment described in note (1)
for the three months ending June 30, 2004

<TABLE>
<CAPTION>
                                         Equipment sales     Cryobanking
                                           and related       and related        Investment        Segment
                                             services          services         portfolio          Totals
<S>                                        <C>               <C>               <C>              <C>
Revenues and income                        $    92,915       $   117,250       $   674,861      $   885,026
Other revenues                                   3,643                                                3,643
                                           ----------------------------------------------------------------
Total revenues and income                       96,558           117,250           674,861          888,669
                                           ================================================================

Costs of sales and services                    263,865            72,021                            335,886

Selling-G & A expenses                         774,646            55,834                            830,480
Expenses related to investment income                                               28,334           28,334
                                           ----------------------------------------------------------------

Total Costs & expenses                       1,038,511           127,855            28,334        1,194,700
                                           ----------------------------------------------------------------

                                           ----------------------------------------------------------------
Segment income/(loss)                      $  (941,953)      $   (10,605)      $   646,527      $  (306,031)
                                           ================================================================
</TABLE>

(4) PROPERTY AND EQUIPMENT

      Property and equipment as at June 30, 2005 and December 31, 2004,
respectively, consist of:

                                                   2005                 2004
                                               -----------          -----------
Machinery and equipment                        $   872,148          $   755,237
Furniture and fixtures                             329,050              329,050
Leasehold improvements                             295,530              295,530
                                               -----------          -----------
                                                 1,496,728            1,379,817
Accumulated depreciation                        (1,113,728)          (1,089,245)
                                               -----------          -----------
Property and equipment, net                    $   383,000          $   290,572
                                               ===========          ===========

Depreciation expense for the three months ended June 30, 2005 and 2004 was
$14,040 and $11,940, respectively. Depreciation expense for the six months ended
June 30, 2005 and 2004, was $24,483 and $23,880, respectively.


                                      F-9
<PAGE>

                        DAXOR CORPORATION AND SUBSIDIARY
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                       JUNE 30, 2005 AND 2004 (Continued)

(5) LOANS PAYABLE

      As at June 30, 2005 and December 31, 2004, the Company has a note payable
of $1,500,000 with a bank with an option to renew, and is classified as short
term. The note balance is an aggregate of borrowings (loans) that renews as one
note each year, but is subject to different interest rates depending on the
individual amount of each borrowing.

      The loan bears interest at approximately 3.0% and is secured by certain
marketable securities of the Company.

      Short term margin debt due to brokers, secured by the Company's marketable
securities, totaled $5,043,041 at June30, 2005 and $2,613,285 at December 31,
2004.

(6) DEFERRED OPTION PREMIUMS

      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. 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 deferred option premiums as of June 30,2005 And
December 31,2004.

<TABLE>
<CAPTION>
      ------------------------------------------------------------------------------------
      Deferred option premiums   Selling price   Fair Market value  Unrealized Gain/(Loss)
      ------------------------------------------------------------------------------------
<S>                               <C>               <C>                   <C>
      June 30,2005                $1,105,102        $1,005,323            $   99,779
      ------------------------------------------------------------------------------------
      December 31,2004            $  974,161        $  591,482            $  382,679
      ------------------------------------------------------------------------------------
</TABLE>

(7) CURRENT INCOME TAXES

      The Company, due to current losses and loss carry forwards from previous
years, has not accrued or paid taxes based on income. It has, however, paid
State and City taxes which were assessed on its Capital Base. In accordance with
SFAS No. 109, Accounting for Income Taxes, these Capital Base assessments were
not classified as income taxes.

(8) DEFERRED INCOME TAXES

      Deferred income taxes result from differences in the recognition of gains
and losses on marketable securities, as well as operating loss carry forwards,
for tax and financial statement purposes. The deferred income tax results in a
liability for the marketable securities, while the operating loss carry forwards
result in a deferred tax asset.

      The Company has net operating loss carryovers of $10,200,803 expiring at
various times from December 31, 2010 through December 31, 2024. Management does
not anticipate an ability to utilize these losses in the near future.

      While the company has deferred taxes on unrealized portfolio gains, at
present it is not management's intention to liquidate it's holdings in order to
utilize these loss carryovers

      A valuation allowance has been recorded for the entire deferred tax asset
as a result of uncertainties regarding the realization of the asset balance due
to the history of losses and the variability of operating results.

      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, the deferred tax
liability is recorded against the Accumulated Other Comprehensive Income, in the
Stockholders' Equity section of the Balance Sheet.

      The deferred tax computations at June 30, 2005 and December 31, 2004,
computed at federal statutory rates of 35%, are as follows:

                                                   2005                 2004
Deferred tax assets:
Net operating loss carry forwards             $ 10,200,803         $  4,907,369
Valuation allowance                            (10,200,803)          (4,907,369)
                                              ------------         ------------

Total deferred tax assets                                0                    0
                                              ============         ============

Deferred tax liabilities:
Fair market value adjustment
for available-for-sale securities             $ 12,852,447         $ 10,845,531
                                              ============         ============


                                      F-10
<PAGE>

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

Three months ended June 30, 2005 as compared with three months ended June 30,
2004

      For the three months ended June 30, 2005, operating revenues increased to
$270,659 vs. $210,165 in 2004, an increase of 29%. The increase was due
primarily to increased blood volume kit sales. The increase in kit sales can be
attributed to the sales effort of our staff. Total cost and expenses were
$1,492,405 in 2005 vs. $1,166,366 in 2004, for an increase of 28%. For the three
months ended June 30, 2005 total operating revenues and other income decreased
by 53% to $400,339 from $860,335 in 2004. In the three months ended June 30,
2005 there have been no sales of the BVA-100 blood volume analyzer, although a
number of contracts were signed for instruments on a trial basis. A factor
involved in lack of sales was a delay in the correction of Medicare
reimbursement for hospitals. Medicare reimburses hospitals separately for the
cost of the radiopharmaceutical kit, but did not issue a reimbursement number
until July 2005 which will take effect January 2006. This error did not exist in
2004. Appropriate reimbursement is essential for marketing to hospitals which
have Medicare patients. Although the company pointed out the error in multiple
communications, the error was not corrected until July, 2005. The Company plans
to continue expanding its sales and marketing force, which currently consists of
17 salesmen and 4 support personnel.

Six months ended June 30, 2005 as compared with six months ended June 30, 2004

      For the six months ended June 30, 2005, operating revenues increased to
$556,572 vs. $500,089 in 2004, an increase of 11%. The increase was due
primarily to increased blood volume kit sales. Total cost and expenses were
$3,003,829 in 2005 vs. $2,241,884 in 2004, for an increase of 34%. For the six
months ended June 30, 2005, total operating revenues and other income decreased
by 15% to $1,561,054 from $1,837,293 in 2004. There were net gains on sales of
securities in 2005 of $81,760 down from $426,696 in 2004. Dividend income was
$1,048,696 with a net interest expense of $103,712 in 2005, as compared to
dividend income of $966,800 with a net interest expense of $31,976 in 2004. In
2005, the Company had a net loss of ($1,442,775) versus a net loss of $(404,591)
in 2004. Total Costs and Expenses increased by 34% in 2005 to $3,003,829 vs.
$2,241,884 in 2004. This was related to increased marketing efforts as well as
research and development expenses. The Company has increased research expenses
for additional features to the BVA-100. The Company has also expanded its
manufacturing staff in Oak Ridge, Tennessee. The increase in kit sales can be
attributed to these sales efforts. The sales cycles from initial contact to a
sale can be 6 to 12 months, or occasionally longer. The Company anticipates that
the sales of the BVA-100 Blood Volume Analyzers and kits will become the major
source of income for the Company. In 2005 there have been no sales of the
BVA-100 blood volume analyzer, although a number of contracts were signed for
instruments on a trial basis. A factor involved in lack of sales was a delay in
the correction of Medicare reimbursement for hospitals. Medicare reimburses
hospitals separately for the cost of the radiopharmaceutical kit, but did not
issue a reimbursement number for until July 2005 which will take effect January,
2006. This error did not exist in 2004. Appropriate reimbursement is essential
for marketing to hospitals which have Medicare patients. Although the company
pointed out the error in multiple communications, the error was not corrected
until July, 2005. The Company plans to continue expanding its sales and
marketing force, which currently consists of 17 salesmen and 4 support
personnel.

The Company has initiated marketing for its blood banking services. The Company
is attempting to develop a program with a specific hospital which would involve
blood volume measurement and autologous frozen blood storage prior to elective
orthopedic surgery. The program is called a Blood Optimization Program, and the
Company has filed for trademark status.

The Company may also initiate a separate marketing program for its semen bank
services. The Company will soon report on the details of the longest case of
frozen semen resulting in a successful pregnancy and birth. The timing of the
announcement will depend on approval by the medical journal which will publish
the case report.


                                      -3-
<PAGE>

LIQUIDITY AND CAPITAL RESOURCES

      At June 30, 2005 the Company had total assets of $62,500,620 with
stockholders' equity of $41,702,519 as compared to total assets of $55,929,480
with stockholders' equity of $39,777,701 at December 31, 2004. The Company has
significantly increased its financial base as compared to one year ago. At June
30, 2005, the Company has a net pre-taxed unrealized gain of $36,721,279 and
$23,868,831 of net after tax unrealized capital gains on available-for-sale
securities in its portfolio. This amount is included in the calculation of Total
Stockholders' Equity. The Company's stock portfolio had a market value of
$61,594,741 with short-term loans of $6,543,041 with 4,637,326 shares
outstanding. The Company has current liabilities of $20,798,101. Included in
these liabilities are deferred taxes of $12,852,447. These deferred taxes would
occur if the Company chose to sell its entire portfolio. Current liabilities
less these deferred taxes is $7,945,654. The Company's investment portfolio has
been a critical source of supplemental income to partially offset the continuing
losses from operations. Without this income, the Company would have been in a
precarious financial situation because of its operating losses over the past 10
years. The Company's portfolio has maintained a net value above historical cost
for each of the past 20 and one half years, or 82 consecutive quarters.

      The Company has adequate resources for the current marketing level of its
Blood Volume Analyzer as well as capital to sustain its localized semen and
blood banking services. The Company anticipates hiring additional regional
managers to the existing sales/marketing team. It is the goal of the marketing
team to develop an individual sales team for each regional manager. The Company
is also expanding its support services personnel. The decision to develop the
marketing team was partially based on the anticipation of new publications in
peer reviewed medical journals by current users of the Blood Volume Analyzer.
All sales to leasing companies are non-recourse leases, which are not guaranteed
by the Company.

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

      The Company sells, as well as offers to lease or rent the BVA-100 as part
of the overall marketing plan. The Company also loans the instrument for a
limited time period, however facilities evaluating the instrument must pay for
the kits. A financing arrangement for customers was established through a
relationship with De Lage Landen (DLL). The significance of this relationship is
as sales through leases increases, Daxor will not have to diminish its capital
outlay for equipment as DLL will fund the net present value of the lease upon
installation of the equipment. In an effort to obtain the best rates for our
clients, the Company will also work with other independent leasing firms. The
Company will use its current financial reserves primarily for developing and
marketing the Blood Volume Analyzer. The Company is evaluating various options
to expand blood banking services in conjunction with the use of the Blood Volume
Analyzer. Additional information on the Company is available on our website
www.daxor.com .

Item 3. Quantitative and Qualitative Disclosures About Market Risk

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


                                      -4-
<PAGE>

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 10% 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 10% of the company's portfolio value, and have never exceeded 15% of
the company's portfolio value. Unrealized gains or losses on short sales or
naked calls are marked to the market. They may, therefore, cause a fluctuation
in the reporting of total other income. This has occurred in the second quarter.

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 10% of the corporate portfolio
value. The company's unrealized gains vs. unrealized losses are usually more
than 10 to 1.

At the most recent second quarter computation, unrealized gains were $37,055,083
and unrealized losses were $333,805 for a ratio of 111 to 1 over the past 5
years. The results from option strategies are variable and within the past 5
years have represented from 2.1% to 33.2% of total investment income. Annual
income from dividends has been relatively stable and has varied from $1,842,583
to $2,062,364.

Certain utility preferred stocks have call provisions which may enable them to
be called away from the company. The call price, in all instances, is higher
than the company's cost for the stock. The yields on such preferred stocks may
be significantly higher than current available yields. Such stocks, therefore,
could not be replaced with similar yields. Currently, approximately 2.3% of the
company's portfolio falls into this category.

The company's portfolio value is exposed to fluctuations in the general value of
electric utilities. The largest holding value in the portfolio is Entergy stock,
with a cost basis of $2,079,000, with a current market value of $10,426.530.73.
This represents 16.92% of the company's portfolio. 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 exposure to
regulator risk is mitigated due to it's diversity of holdings consisting of 70
separate stocks.


                                      -5-
<PAGE>

                   Summary information on Securities Portfolio

<TABLE>
<CAPTION>

                       % of
                       Total
                     Portfolio                                       UNREALIZED       UNREALIZED                        Annualized
DESCRIPTION            Shares        COST            MARKET            GAINS            LOSSES      YTD Dividends        Dividends
-----------------------------------------------------------------------------------------------------------------------------------
<S>                    <C>      <C>              <C>              <C>              <C>              <C>              <C>
                       % of
                       Total
Total Utilities
Common Stocks          94.46%   $23,494,732.43   $59,901,126.64   $36,586,119.71   $   179,725.50   $   980,192.94   $ 1,960,385.88

Total Preferred
Utility Stocks          2.18%   $   541,871.28   $   923,901.75   $   382,280.47   $       250.00   $    25,443.76   $    50,887.52

Total Preferred
Non-Utilities Stocks    0.15%   $    37,254.00   $    40,005.00   $     3,696.00   $       945.00   $     1,396.88   $     2,793.76

Total Preferred
Stocks                  2.33%   $   579,125.28   $   963,906.75   $   385,976.47   $     1,195.00   $    26,840.64   $    53,681.28

Total General
Stocks                  2.28%   $   567,780.55   $   510,969.78   $    46,820.48   $   103,631.25   $       823.46   $     1,646.92

Total Bonds             0.93%   $   231,824.25   $   218,737.50   $    36,166.50   $    49,253.25   $    23,325.00   $    46,650.00

Portfolio Total                 $24,873,462.51   $61,594,740.67   $37,055,083.16   $   333,805.00   $ 1,031,182.04   $ 2,062,364.08
</TABLE>


                                      -6-
<PAGE>

Item 4. Controls and Procedures

      The Company's Chief Executive Officer and Chief Financial Officer have
evaluated the effectiveness of our disclosure controls and procedures as defined
by the Securities and Exchange Commission (SEC),as of the end of the period
covered by this report. Based upon that evaluation, our Chief Executive Officer
and Chief Financial Officer concluded that our disclosure controls and
procedures are effective in timely alerting them to information required to be
included in our periodic Securities and Exchange Commission filings. There was
no significant change in our internal control over financial reporting that
occurred during the quarter ended June 30, 2005, that materially affected or is
reasonably likely to materially affect, the Corporation's internal control over
financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

      None.

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.

Item 6. Exhibits and Reports on Form 8-K

      (a) 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


                                      -7-
<PAGE>

            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

      (b) There were no reports on Form 8-k filed.

                                   SIGNATURES

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


DATE: September 6, 2005                       By: /s/ JOSEPH FELDSCHUH, M.D.
                                                  --------------------------
                                                  JOSEPH FELDSCHUH, M.D.,
                                                  President and Chief Executive
                                                  Officer


DATE: September 6, 2005                       By: /s/ STEPHEN FELDSCHUH
                                                  ---------------------
                                                  STEPHEN FELDSCHUH
                                                  Vice President of Operations
                                                  And Chief Financial Officer


                                      -8-