Financial Data and Key Metrics Changes - Daxor's net assets increased by 35.3% to $19.62 million or $4.85 per share as of June 30, 2022, compared to $14.49 million or $3.59 per share at June 30, 2021 [34] - There was a net decrease of 7.3% in net assets compared to $21.15 million or $5.24 per share at December 31, 2021 [34] - The company reported a net dividend income of $130,943 and net unrealized gains on investment activity of $1.37 million for the six-month period ended June 30, 2022 [36] Business Line Data and Key Metrics Changes - The blood volume diagnostic operating division saw a 92.6% increase in unaudited revenues for the year ended June 30, 2022, compared to the same period in the prior year [17] - Revenue growth was driven by sales and leasing of capital equipment, orders for single-use disposable blood volume diagnostic kits, and U.S. Department of Defense orders [18] - The number of single-use Volumex diagnostic kits rose by 49.4% in the first half of 2022 compared to the first half of 2021 [18] Market Data and Key Metrics Changes - The current population of heart failure patients in the U.S. is 6 million, expected to rise to over 8 million in the next six years [20] - Hospitals are under increasing pressure to improve outcomes and contain costs, which aligns with Daxor's focus on blood volume management [12] Company Strategy and Development Direction - Daxor is focused on balancing growth and commercialization with strategic investments in next-generation systems, which are the most important technology launch in 20 years [8] - The company aims to integrate blood volume analysis into the central care pathway for patients, enhancing clinical decision-making and improving outcomes [90] - Daxor has partnered with MedAxiom to raise the profile of its products and improve sales through consulting for cardiovascular care [28] Management's Comments on Operating Environment and Future Outlook - Management noted that hospital systems are increasingly sensitive to health economics, which has not hindered sales but rather increased interest in Daxor's value proposition [67] - The company anticipates submitting data to the FDA for 510(k) clearance of its next-generation blood volume analyzer, with expectations for approval in early 2023 [60] - Management expressed confidence in the new technology's ability to fulfill the aims of the 510(k) process, showing equivalency to existing cleared devices [61] Other Important Information - Daxor has received over $2 million in military contracts and is in the process of completing Phase II contracts with the U.S. Air Force [25] - The company has an active R&D and patent portfolio, with several patents pending and a focus on integrating clinical decision support software into its diagnostics [32] Q&A Session Summary Question: What makes the new BVA different from the original device? - The new system is portable, provides results within 15 minutes, and is designed for bedside use, significantly improving workflow and usability [44][45] Question: Will the new device suppress sales of current devices? - Current sales have not been suppressed; there has been growth in utilization at existing accounts due to enhanced clinical and sales support [51][53] Question: Are there any macroeconomic challenges affecting sales? - Despite economic concerns, the company has seen a 9.1% increase in volume and hospitals are more eager to hear about value propositions [66][67] Question: Have there been supply chain issues? - Daxor has not faced significant supply chain issues but has experienced inflationary pressures related to staffing costs [72] Question: What is the current number of machines in use? - The company has over 65 accounts at different hospitals across the U.S. and has placed 12 new devices in the first half of 2022 [80][81]
Daxor(DXR) - 2022 Q2 - Earnings Call Transcript