Rather than wage a legal battle against the SEC, Daxor Corp. (NYSE:DXR) plans to register as an investment company, as ordered by an administrative law judge for the watchdog agency.
Daxor said it made the decision not to appeal the initial SEC decision so that it can focus on research & development for its blood volume analyzer, rather than incurring the risk and cost of a legal battle or taking the company private.
"Our primary concern is that we are able to continue our medical research and development activities to expand the use of the BVA-100 blood volume analyzer," president Joseph Feldschuh said in prepared remarks.
Daxor still maintains that it’s an operating medical instrumentation and biotechnology company and said the new label won’t have an impact on operations or ongoing R&D activities.
Daxor swung to third-quarter losses on a 24.8 percent sales slide during the three months ended Sept. 30, reporting losses of $4.2 million, or 99 cents per share, on sales of $341,000.
That compares with profits of $2.6 million, or 62 cents per share, on sales of $453,000 during the same period last year.