FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's OMITTED)
ASSETS
December 31, June 30,
2008 2008
Current Assets: (UNAUDITED)
--------- --------
Cash and cash equivalents $ 2,583 $ 1,326
Marketable securities 19 1,068
Accounts receivable - net 5,642 4,689
Accounts receivable - related parties - net 817 469
Medical receivables - net 606 1,228
Management fee receivable - net 3,855 5,040
Management fee receivable - related medical
practices - net 1,325 1,372
Costs and estimated earnings in excess of
Billings on uncompleted contracts 218 6
Inventories 3,856 3,256
Current portion of advances and notes to related
medical practices 176 214
Current portion of notes receivable less discount
for below market interest 499 2,508
Prepaid expenses and other current assets 921 811
--------- --------
Total Current Assets 20,517 21,987
Property and equipment - net 3,408 3,933
Advances and notes to related medical practices - net 176 263
Notes receivable less discount for below market
interest 2,042 2,297
Other intangible assets - net 4,869 4,810
Other assets 1,919 1,936
--------- --------
Total Assets $ 32,931 $ 35,226
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FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's OMITTED)
LIABILITIES AND STOCKHOLDERS' DEFICIENCY December 31, June 30,
2008 2008
(UNAUDITED)
--------- ---------
Current portion of long-term debt and capital
leases $ 144 $ 373
Accounts payable 4,260 4,020
Other current liabilities 7,992 8,316
Unearned revenue on service contracts 5,375 4,732
Unearned revenue on service contracts - related
parties 780 462
Customer advances 11,793 12,804
Customer advance - related party 1,041 1,472
Billings in excess of costs and estimated
earnings on uncompleted contracts 3,924 5,773
--------- ---------
Total Current Liabilities 35,309 37,952
Long-Term Liabilities:
Due to related medical practices 95 98
Long-term debt and capital leases,
less current portion 780 757
Other liabilities 425 497
--------- ---------
Total Long-Term Liabilities 1,300 1,352
--------- ---------
Total Liabilities 36,609 39,304
--------- ---------
Minority interest 64 167
--------- ---------
STOCKHOLDERS' DEFICIENCY:
Class A non-voting preferred stock $.0001 par value;
1,600,000 authorized, 313,451 issued and outstanding
at December 31, 2008 and June 30, 2008 - -
Common Stock $.0001 par value; 30,000,000 shares
authorized at December 31, 2008 and June 30, 2008,
4,915,918 issued at December 31, 2008 and June 30,
2008 4,904,275 outstanding at December 31, 2008
and June 30, 2008 1 1
Class B Common Stock $.0001 par value; 800,000
shares authorized, (10 votes per share), 158 issued
and outstanding at December 31, 2008 and June 30,
2008 - -
Class C Common Stock $.0001 par value; 2,000,000
shares authorized, (25 votes per share), 382,513
issued and outstanding at December 31, 2008 and June
30, 2008 - -
Paid-in capital in excess of par value 172,276 172,276
Accumulated other comprehensive loss (24) (73)
Accumulated deficit (175,049) (175,380)
Notes receivable from employee stockholders (271) (394)
Treasury stock, at cost - 11,643 shares of common
stock at December 31, 2008 and June 30, 2008 (675) (675)
--------- ---------
Total Stockholders' Deficiency (3,742) (4,245)
--------- ---------
Total Liabilities and Stockholders' Deficiency $ 32,931 $ 35,226
========= =========
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(000's OMITTED, except per share data)
FOR THE THREE MONTHS ENDED
DECEMBER 31,
---------------------
REVENUES 2008 2007
--------- ---------
Product sales - net $ 4,407 $ 4,003
Service and repair fees - net 2,314 2,463
Service and repair fees - related parties - net 365 262
Management and other fees - net 1,735 2,047
Management and other fees - related medical
practices - net 714 747
License fees and royalties 1,755 1,158
--------- ---------
Total Revenues - Net 11,290 10,680
--------- ---------
COSTS AND EXPENSES
Costs related to product sales 2,824 3,518
Costs related to service and repair fees 906 1,208
Costs related to service and repair
fees - related parties 143 129
Costs related to management and other fees 1,074 1,466
Costs related to management and other
fees - related medical practices 698 543
Research and development 928 1,323
Selling, general and administrative 3,471 5,945
Provision for bad debts 545 424
--------- ---------
Total Costs and Expenses 10,589 14,556
--------- ---------
Income (Loss) From Operations 701 (3,876)
Interest Expense (40) (156)
Investment Income 113 195
Interest Income - Related Parties 6 10
Other Income 1 1
Minority Interest in Income of Partnerships (-) (12)
--------- ---------
NET INCOME (LOSS) $ 781 $ (3,838)
========= =========
Basic Net Income (Loss) Per Common Share $ 0.16 $ (0.78)
========= =========
Diluted Net Income (Loss) Per Common Share $ 0.16 $ (0.78)
========= =========
Weighted Average Basic Shares Outstanding 4,904,275 4,899,252
========= =========
Weighted Average Diluted Shares Outstanding 4,904,275 4,899,252
========= =========
FONAR CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(000's OMITTED, except per share data)
FOR THE SIX MONTHS ENDED
DECEMBER 31,
---------------------
REVENUES 2008 2007
--------- ---------
Product sales - net $ 5,819 $ 6,592
Service and repair fees - net 4,645 4,928
Service and repair fees - related parties - net 635 516
Management and other fees - net 3,782 4,244
Management and other fees - related medical
practices - net 1,439 1,912
License fees and royalties 1,755 1,158
--------- ---------
Total Revenues - Net 18,075 19,350
--------- ---------
COSTS AND EXPENSES
Costs related to product sales 4,265 6,330
Costs related to service and repair fees 1,831 2,398
Costs related to service and repair
fees - related parties 250 251
Costs related to management and other fees 2,277 2,556
Costs related to management and other
fees - related medical practices 1,354 1,490
Research and development 1,809 2,486
Selling, general and administrative 6,735 11,232
Provision for bad debts 700 589
--------- ---------
Total Costs and Expenses 19,221 27,332
--------- ---------
Loss From Operations (1,146) (7,982)
Interest Expense (119) (258)
Investment Income 145 375
Interest Income - Related Parties 12 19
Other Income 2 7
Minority Interest in Income of Partnerships (11) (174)
Gain on Sale of Investment - 571
Gain on Sale of Consolidated Subsidiary 1,448 3,395
--------- ---------
NET INCOME (LOSS) $ 331 $ (4,047)
========= =========
Basic Net Income (Loss) Per Common Share $ 0.07 $ (0.83)
========= =========
Diluted Net Income (Loss) Per Common Share $ 0.07 $ (0.83)
========= =========
Weighted Average Basic Shares Outstanding 4,904,275 4,891,730
========= =========
Weighted Average Diluted Shares Outstanding 4,904,275 4,891,730
========= =========
UPRIGHT® and STAND-UP® are registered trademarks and The Inventor of MR
Scanning™, Full Range of Motion™, pMRI™, Dynamic™,
Multi-Position™, True Flow™, The Proof is in the Picture™,
Spondylography™ and Spondylometry™ are trademarks of FONAR
Corporation.
This release may include forward-looking statements from the company that
may or may not materialize. Additional information on factors that could
potentially affect the company's financial results may be found in the
company's filings with the Securities and Exchange Commission.
Contact Information: Contact: Daniel Culver FONAR Corporation Tel: 631-694-2929 www.fonar.com