FONAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
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June 30,
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2010 2009
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Current Assets:
Cash and cash equivalents $ 1,299,493 $ 1,225,619
Marketable securities 27,613 22,652
Accounts receivable - net of allowances for
Doubtful accounts of $2,289,049 and
$2,393,326 at June 30, 2010 and 2009,
respectively 4,820,541 5,391,822
Medical receivables - net of allowances for
Doubtful accounts of $1,622,000 and
$1,343,500 at June 30, 2010 and 2009,
respectively 25,225 374,225
Management fee receivable - net of allowances
for Doubtful accounts of $5,808,345 and
$5,093,345 at June 30, 2010 and 2009,
respectively 2,568,526 3,273,756
Management fee receivable - related medical
Practices - net of allowances for doubtful
Accounts of $1,129,818 and $1,094,818 at
June 30, 2010 and 2009, respectively 1,921,983 2,196,580
Costs and estimated earnings in excess of
billings on uncompleted contracts 277,384 1,475,706
Inventories 2,826,211 3,172,397
Current portion of advances and notes to
related medical practices 83,423 164,611
Current portion of note receivable - net of
allowances for doubtful accounts of $115,000
and $65,000 at June 30, 2010 and at
June 30, 2009, respectively 271,796 517,934
Prepaid expenses and other current assets 552,800 472,397
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Total Current Assets 14,674,995 18,287,699
Property and Equipment - Net 2,108,556 2,892,380
Advances and Notes to Related Medical Practices -
net of allowances for doubtful accounts of
$264,791 at June 30, 2010 and at June 30, 2009 - 89,032
Notes Receivable - 1,778,626
Other Intangible Assets - Net 4,291,419 4,920,241
Other Assets 553,875 391,237
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Total Assets $ 21,628,845 $ 28,359,215
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FONAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES
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June 30,
--------------------------
2010 2009
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Current Liabilities:
Current portion of long-term debt and capital
Leases $ 579,436 $ 277,494
Current portion of long-term debt - related
party 87,835 79,509
Accounts payable 3,191,960 3,518,609
Other current liabilities 8,065,069 8,460,042
Unearned revenue on service contracts 5,219,547 5,526,006
Customer advances 4,813,327 9,237,921
Billings in excess of costs and estimated
earnings on uncompleted contracts 2,743,398 2,026,441
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Total Current Liabilities 24,700,572 29,126,022
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Long-Term Liabilities:
Accounts payable 62,622 184,168
Due to related medical practices 527,891 643,135
Long-term debt and capital leases, less
current portion 1,566,622 759,211
Long-term debt, less current portion -
related party 72,341 160,176
Other liabilities 474,763 427,365
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Total Long-Term Liabilities 2,704,239 2,174,055
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Total Liabilities 27,404,811 31,300,077
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Commitments, Contingencies and Other Matters
FONAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
STOCKHOLDERS' DEFICIENCY
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June 30,
--------------------------
2010 2009
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Stockholders' Deficiency:
Class A non-voting preferred stock - $.0001
par value; authorized - 1,600,000 shares;
issued and outstanding - 313,451 shares
at June 30, 2010 and 2009 $ 31 $ 31
Preferred stock - $.001 par value;
authorized - 2,000,000 shares; issued
and outstanding - none - -
Common stock - $.0001 par value; authorized -
30,000,000 shares at June 30, 2010 and 2009,
respectively; issued - 4,985,850 and
4,917,918 shares at June 30, 2010 and 2009,
respectively; outstanding - 4,974,207 and
4,906,275 shares at June 30, 2010 and 2009,
respectively 497 491
Class B common stock (10 votes per share) -
$.0001 par value; authorized - 800,000
shares; issued and outstanding - 158 shares
at June 30, 2010 and 2009 - -
Class C common stock (25 votes per share) -
$.0001 par value; authorized - 2,000,000
shares; issued and outstanding - 382,513
shares at June 30, 2010 and 2009 38 38
Paid-in capital in excess of par value 172,379,863 172,280,600
Accumulated other comprehensive loss (18,489) (20,995)
Accumulated deficit (177,271,349) (174,258,607)
Notes receivable from employee stockholders (191,167) (267,030)
Treasury stock, at cost - 11,643 shares
of common stock at June 30, 2010 and 2009 (675,390) (675,390)
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Total Stockholders' Deficiency (5,775,966) (2,940,862)
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Total Liabilities and Stockholders'
Deficiency $ 21,628,845 $ 28,359,215
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FONAR CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended June 30,
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2010 2009
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Revenues
Product sales - net $ 9,056,307 $ 17,175,417
Service and repair fees - net 10,864,927 10,345,091
Service and repair fees - related parties -
net 220,000 192,500
Management and other fees 7,302,216 7,342,614
Management and other fees - related
medical practices - net 3,786,612 2,911,318
License fees and royalties 585,493 1,755,493
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Total Revenues - Net 31,815,555 39,722,433
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Costs and Expenses
Costs related to product sales 7,248,756 10,758,201
Costs related to service and repair fees 3,026,598 3,992,557
Costs related to service and repair fees
- related parties 61,284 74,293
Costs related to management and other fees 5,320,756 4,507,587
Costs related to management and other fees
- related medical practices 2,962,826 2,790,745
Research and development 2,458,342 3,593,470
Selling, general and administrative,
inclusive of compensatory element of stock
issuances of $99,269 and $4,061 for the
years ended June 30, 2010 and 2009,
respectively 11,939,223 13,423,066
Provision for bad debts 1,378,500 1,286,451
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Total Costs and Expenses 34,396,285 40,426,370
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Loss from Operations (2,580,730) (703,937)
Other Income and (Expenses):
Interest expense (313,416) (333,229)
Interest expense - related parties (74,486) -
Investment income 249,290 325,688
Interest income - related parties 10,926 20,818
Other income - net 45,674 399,662
Loss on note receivable (350,000) -
Gain on sale of consolidated subsidiary - 1,448,196
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(Loss) Income Before Provision For
Income Taxes (3,012,742) 1,157,198
Provision for Income Taxes - 35,931
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Net (Loss) Income $ (3,012,742) $ 1,121,267
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Contact Information: Contact: Daniel Culver FONAR Corporation Tel: 631-694-2929 Fax: 631-390-1709 http://www.fonar.com